þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 22-2286646 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
Title of Each Class | Name of Each Exchange on Which Registered | |
Common Stock, $0.01 par value | New York Stock Exchange |
Large accelerated filer | o | Accelerated filer | x | ||
Non-accelerated filer | o | Smaller reporting company | o | ||
Emerging growth company | o |
Document | Parts Into Which Incorporated | |
Portions of the registrant’s definitive Proxy Statement for its Annual Meeting of Stockholders scheduled to be held on May 15, 2019, to be filed pursuant to Regulation 14A | Part III |
Page | ||
PART I | ||
Item 1. | Business | |
Item 1A. | Risk Factors | |
Item 1B. | Unresolved Staff Comments | |
Item 2. | Properties | |
Item 3. | Legal Proceedings | |
Item 4. | Mine Safety Disclosures | |
PART II | ||
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | |
Item 6. | Selected Financial Data | |
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |
Item 7A. | Quantitative and Qualitative Disclosures about Market Risk | |
Item 8. | Financial Statements and Supplementary Data | |
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | |
Item 9A. | Controls and Procedures | |
Item 9B. | Other Information | |
PART III | ||
Item 10. | Directors, Executive Officers and Corporate Governance | |
Item 11. | Executive Compensation | |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | |
Item 13. | Certain Relationships and Related Transactions, and Director Independence | |
Item 14. | Principal Accounting Fees and Services | |
PART IV | ||
Item 15. | Exhibits and Financial Statement Schedules | |
Signatures | ||
Index to Consolidated Financial Statements |
• | Leverage our key technologies to create value through data capture, analysis and optimization to enhance companies’ critical decision-making abilities and returns. Decisions today are increasingly complex with huge amounts of data to comprehend. Companies capable of translating raw data into actionable insights gain a competitive edge and deliver superior returns. ION offerings are focused on improving E&P decision-making, enhancing reservoir management and optimizing offshore operations. E&P Technology & Services creates digital data assets and delivers services that improve decision-making, mitigate risk and maximize portfolio value for E&P companies, such as our multi-client programs that are licensed to multiple E&P companies to optimize their investment decisions. Operations Optimization develops mission-critical subscription offerings and engineering services that enable operational control and optimization offshore. Ocean Bottom Integrated Technologies integrates a variety of ION’s advanced technologies to accelerate data capture and delivery. This information enables E&P companies to enhance their reservoir decision-making and improve their returns. |
• | Expand and globalize our E&P Technology & Services business. We seek to expand and grow our E&P Technology & Services business into new regions, with new customers and new offerings, including data processing services through our Imaging Services group and our Ventures multi-client and proprietary programs. Historically known for our 2-D programs, we entered the 3-D multi-client market in 2014 by acquiring and processing our first survey offshore Ireland. Since then, we have expanded our 3-D seismic data library considerably by purchasing existing seismic data and reimaging the data by using new data processing techniques and algorithms, such as our advanced FWI. For the foreseeable future, we expect to continue investing in research and development and computing infrastructure for our data processing business and to support our multi-client projects. We believe this focus better positions our company as a full-service technology company with an increasing proportion of revenues derived from E&P customers. In 2018, E&P companies accounted for approximately 77% of our total consolidated net revenues. |
• | Continue investing in advanced software and equipment technology to provide next generation services and products. We intend to continue investing in the development of new technologies for use by E&P companies. In particular, we intend to focus on the development of our next generation OBS technology, our Marlin operations optimization software, and derivative products and continued advancement of our FWI and ocean bottom nodal algorithms, with the goal of obtaining technical and market leadership in what we continue to believe are important and expanding markets. In 2018, our total investment in research and development and engineering was equal to approximately 10% of our total consolidated net revenues for the year. |
• | Collaborate with our customers to provide products and solutions designed to meet their needs. A key element of our business strategy has been to understand the challenges faced by E&P companies in seismic survey planning, data acquisition, processing, and interpretation. We will continue to develop and offer technology and services that enable us to work with E&P companies to solve their unique challenges around the world. We have found collaborating with E&P companies to better understand their imaging challenges and working with them to ensure the right technologies are properly applied, is the most effective method for meeting their needs. Helping solve the most difficult challenges for our customers is an important element of our long-term business strategy, and we are implementing this partnership approach globally through local personnel in our regional organizations who understand the unique challenges in their areas. We formed an E&P Advisors group in 2015 designed to focus specifically on this element of our strategy. |
• | Expand our Operations Optimization business into relevant adjacent markets. While our traditional focus for technology has been on the E&P industry, we are broadening and diversifying our software and equipment businesses into relevant adjacent markets such as offshore logistics, military and marine robotics. Adjacent markets broaden our opportunity to better monetize our return on technology investments while reducing our susceptibility to E&P cycles. We intend to derive a significant portion of revenues from these non-E&P markets over the next 5 years. |
• | We leverage our innovative technologies to create value through data capture, analysis and optimization to enhance companies’ critical decision-making abilities and returns. Our cutting-edge data management and analysis platforms help derive insights from data we acquire to improve E&P decision-making, enhance reservoir management and optimize offshore operations. The data can be used to decide whether and how much to bid on a block, how to maximize production from a field, or how to optimize the safety and efficiency of complex maritime projects. Our operations optimization platform and imaging engine are the core underlying technology and we continually advance our complex algorithms to improve the resulting analysis. |
• | We focus on higher potential return offerings and creative business models to maximize shareholder value. We streamlined our business and focused on the areas with the highest potential returns because we believe every dollar invested should go further. In addition, we try to structure both the project financing and payment in a way to maximize profit, such as sharing in the success of a project. |
• | Our “asset light” strategy enables us to avoid significant fixed costs and remain financially flexible. We do not own a fleet of marine vessels and do not provide our own crews to acquire seismic data. We outsource seismic data acquisition activity to third parties that operate fleets of seismic vessels and equipment. This practice enables us to avoid fixed costs associated with these assets and personnel and to manage our business in a manner designed to afford us the flexibility to quickly scale up or down our capital investments based on E&P spending levels. We actively manage the costs of developing our multi-client data library business by having our customers partially pre-fund, or underwrite, the investment for any new project. Our target goal is to have a vast majority of the total cost of each new project’s data acquisition to be underwritten by our customers. We believe this conservative approach to data library investment is the most prudent way to reduce the impact of any sudden reduction in the demand for seismic data, giving us the flexibility to aggressively reduce cash outflows as we have successfully implemented in the current industry downturn. |
• | Our global footprint and diversified portfolio approach enable us to offset regional downturns. Conducting business around the world has been and will continue to be a key component of our strategy. This global focus and diversified portfolio approach has been helpful in minimizing the impact of any regional or country-specific slowdown for short or extended periods of time. While the traditional focus of our cutting-edge technology has been on the E&P industry, we are now broadening and diversifying our business into relevant adjacent markets such as offshore logistics, military and marine robotics. Adjacent markets broaden our opportunity to better monetize our return on technology investments while reducing our susceptibility to E&P cycles. |
• | We have a diversified and blue chip customer base. We provide services and products to a diverse, global customer base that includes many of the largest oil and gas and geophysical companies in the world, including National Oil Companies (“NOCs”) and International Oil Companies (“IOCs”). Over the past decade, we have made significant progress expanding our customer list and revenue sources. Whereas almost all of our revenues in the early 2000s were derived principally from seismic service providers, in 2018, E&P companies accounted for approximately 77% of our total consolidated net revenues. |
• | any additional damages or adverse rulings in the WesternGeco litigation and future potential adverse effects on our financial results and liquidity; |
• | future levels of capital expenditures of our customers for seismic activities; |
• | future oil and gas commodity prices; |
• | the effects of current and future worldwide economic conditions (particularly in developing countries) and demand for oil and natural gas and seismic equipment and services; |
• | future cash needs and availability of cash to fund our operations and pay our obligations; |
• | the effects of current and future unrest in the Middle East, North Africa and other regions; |
• | the timing of anticipated revenues and the recognition of those revenues for financial accounting purposes; |
• | the effects of ongoing and future industry consolidation, including, in particular, the effects of consolidation and vertical integration in the towed marine seismic streamers market; |
• | the timing of future revenue realization of anticipated orders for multi-client survey projects and data processing work in our E&P Technology & Services segment; |
• | future levels of our capital expenditures; |
• | future government laws or regulations pertaining to the oil and gas industry, including trade restrictions, embargoes and sanctions imposed by the U.S. government; |
• | future government actions that may result in the deprivation of our contractual rights, including the potential for adverse decisions by judicial or administrative bodies in foreign countries with unpredictable or corrupt judicial systems. |
• | expected net revenues, income from operations and net income; |
• | expected gross margins for our services and products; |
• | future seismic industry fundamentals, including future demand for seismic services and equipment; |
• | future benefits to our customers to be derived from new services and products; |
• | future benefits to be derived from our investments in technologies, joint ventures and acquired companies; |
• | future growth rates for our services and products; |
• | the degree and rate of future market acceptance of our new services and products; |
• | expectations regarding E&P companies and seismic contractor end-users purchasing our more technologically-advanced services and products; |
• | anticipated timing and success of commercialization and capabilities of services and products under development and start-up costs associated with their development; |
• | future opportunities for new products and projected research and development expenses; |
• | expected continued compliance with our debt financial covenants; |
• | expectations regarding realization of deferred tax assets; |
• | expectations regarding the impact of the U.S. Tax Cuts and Jobs Act; |
• | anticipated results with respect to certain estimates we make for financial accounting purposes; and |
• | compliance with the U.S. Foreign Corrupt Practices Act and other applicable U.S. and foreign laws prohibiting corrupt payments to government officials and other third parties. |
• | the supply of and demand for oil and gas; |
• | the level of prices, and expectations about future prices, of oil and gas; |
• | the cost of exploring for, developing, producing and delivering oil and gas; |
• | the expected rates of decline for current production; |
• | the discovery rates of new oil and gas reserves; |
• | weather conditions, including hurricanes, that can affect oil and gas operations over a wide area, as well as less severe inclement weather that can preclude or delay seismic data acquisition; |
• | domestic and worldwide economic conditions; |
• | changes in government leadership, such as the change in presidency in Mexico and its impact on the Mexican economy and offshore exploration programs; |
• | political instability in oil and gas producing countries; |
• | technical advances affecting energy consumption; |
• | government policies regarding the exploration, production and development of oil and gas reserves; |
• | the ability of oil and gas producers to raise equity capital and debt financing; |
• | merger and divestiture activity among oil and gas companies and seismic contractors; and |
• | compliance by members of the OPEC and non-OPEC members such as Russia, with agreements to cut oil production. |
• | we may have difficulty satisfying our obligations with respect to our outstanding debt; |
• | we may have difficulty obtaining financing in the future for working capital, capital expenditures, acquisitions or other purposes; |
• | we may need to use all, or a substantial portion, of our available cash flow to pay interest and principal on our debt, which will reduce the amount of money available to finance our operations and other business activities; |
• | our vulnerability to general economic downturns and adverse industry conditions could increase; |
• | our flexibility in planning for, or reacting to, changes in our business and in our industry in general could be limited; |
• | our amount of debt and the amount we must pay to service our debt obligations could place us at a competitive disadvantage compared to our competitors that have less debt; |
• | our customers may react adversely to our significant debt level and seek or develop alternative licensors or suppliers; |
• | we may have insufficient funds, and our debt level may also restrict us from raising the funds necessary to repurchase all of the Notes, as defined below, tendered to us upon the occurrence of a change of control, which would constitute an event of default under the Notes; and |
• | our failure to comply with the restrictive covenants in our debt instruments which, among other things, limit our ability to incur debt and sell assets, could result in an event of default that, if not cured or waived, could have a material adverse effect on our business or prospects. |
• | Seismic data acquisition activities in marine ocean bottom areas are subject to the risk of downtime or reduced productivity, as well as to the risks of loss to property and injury to personnel, mechanical failures and natural disasters. In addition to losses caused by human errors and accidents, we may also become subject to losses resulting from, among other things, political instability, business interruption, strikes and weather events; and |
• | Our OBS acquisition equipment and services may expose us to litigation and legal proceedings, including those related to product liability, personal injury and contract liability. We have in place insurance coverage against operating hazards, including product liability claims and personal injury claims, damage, destruction or business interruption and whenever possible, will obtain agreements from customers that limit our liability. However, we cannot provide assurance that the nature and amount of insurance will be sufficient to fully indemnify us against liabilities arising from pending and future claims or that its insurance coverage will be adequate in all circumstances or against all hazards, and that we will be able to maintain adequate insurance coverage in the future at commercially reasonable rates or on acceptable terms. |
• | increased costs associated with the operation of an OBS acquisition project and the management of geographically dispersed operations; |
• | Cash flows from OBS acquisition projects may be inadequate to realize the value of manufactured equipment for use in its OBS surveys; |
• | risks associated with our OBS acquisition technologies, including risks that the new technology may not perform as well as we anticipate; |
• | difficulties in retaining and integrating key technical, sales and marketing personnel and the possible loss of such employees and costs associated with their loss; |
• | the diversion of management’s attention and other resources from other business operations and related concerns; |
• | the requirement to maintain uniform standards, controls and procedures; |
• | our inability to realize operating efficiencies, cost savings or other benefits that we expect from OBS operations; and |
• | difficulties and delays in securing new business and customer projects. |
• | incur additional indebtedness; |
• | create liens; |
• | pay dividends and make other distributions in respect of our capital stock; |
• | redeem our capital stock; |
• | make investments or certain other restricted payments; |
• | sell certain kinds of assets; |
• | enter into transactions with affiliates; and |
• | effect mergers or consolidations. |
• | limit our ability to plan for or react to market or economic conditions or meet capital needs or otherwise restrict our activities or business plans; and |
• | adversely affect our ability to finance our operations, acquisitions, investments or strategic alliances or other capital needs or to engage in other business activities that would be in our interest. |
• | future competition from more established companies entering the market; |
• | technology obsolescence; |
• | dependence upon continued growth of the market for seismic data processing; |
• | the rate of change in the markets for these segments’ technology and services; |
• | further consolidation of the participants within this market; |
• | research and development efforts not proving sufficient to keep up with changing market demands; |
• | dependence on third-party software for inclusion in these segments’ services and products; |
• | misappropriation of these segments’ technology by other companies; |
• | alleged or actual infringement of intellectual property rights that could result in substantial additional costs; |
• | difficulties inherent in forecasting sales for newly developed technologies or advancements in technologies; |
• | recruiting, training and retaining technically skilled, experienced personnel that could increase the costs for these segments, or limit their growth; and |
• | the ability to maintain traditional margins for certain of their technology or services. |
• | We may not fully recover our costs of acquiring and processing seismic data through future sales. The ultimate amounts involved in these data sales are uncertain and depend on a variety of factors, many of which are beyond our control. |
• | The timing of these sales is unpredictable and can vary greatly from period to period. The costs of each survey are capitalized and then amortized as a percentage of sales and/or on a straight-line basis over the expected useful life of the data. This amortization will affect our earnings and, when combined with the sporadic nature of sales, will result in increased earnings volatility. |
• | Regulatory changes that affect companies’ ability to drill, either generally or in a specific location where we have acquired seismic data, could materially adversely affect the value of the seismic data contained in our library. Technology changes could also make existing data sets obsolete. Additionally, each of our individual surveys has a limited book life based on its location and oil and gas companies’ interest in prospecting for reserves in such location, so a particular survey may be subject to a significant decline in value beyond our initial estimates. |
• | The value of our multi-client data could be significantly adversely affected if any material adverse change occurs in the general prospects for oil and gas exploration, development and production activities. |
• | The cost estimates upon which we base our pre-commitments of funding could be wrong. The result could be losses that have a material adverse effect on our financial condition and results of operations. These pre-commitments of funding are subject to the creditworthiness of our clients. In the event that a client refuses or is unable to pay its commitment, we could incur a substantial loss on that project. |
• | As part of our asset-light strategy, we routinely charter vessels from third-party vendors to acquire seismic data for our multi-client business. As a result, our cost to acquire our multi-client data could significantly increase if vessel charter prices rise materially. |
• | disruption of E&P activities; |
• | restriction on the movement and exchange of funds; |
• | inhibition of our ability to collect advances and receivables; |
• | enactment of additional or stricter U.S. government or international sanctions; |
• | limitation of our access to markets for periods of time; |
• | expropriation and nationalization of assets of our company or those of our customers; |
• | political and economic instability, which may include armed conflict and civil disturbance; |
• | currency fluctuations, devaluations and conversion restrictions; |
• | confiscatory taxation or other adverse tax policies; and |
• | governmental actions that may result in the deprivation of our contractual rights, including the potential for adverse decisions by judicial or administrative bodies in foreign countries with unpredictable or corrupt judicial systems. |
• | operating results that vary from the expectations of securities analysts and investors; |
• | factors influencing the levels of global oil and natural gas exploration and exploitation activities, such as the decline in crude oil prices and depressed prices for natural gas in North America or disasters such as the Deepwater Horizon incident in the Gulf of Mexico in 2010; |
• | the operating and securities price performance of companies that investors or analysts consider comparable to us; |
• | actions by rating agencies related to the Notes; |
• | announcements of strategic developments, acquisitions and other material events by us or our competitors; and |
• | changes in global financial markets and global economies and general market conditions, such as interest rates, commodity and equity prices and the value of financial assets. |
• | authorizing the issuance of “blank check” preferred stock without any need for action by stockholders; |
• | providing for a classified board of directors with staggered terms; |
• | requiring supermajority stockholder voting to effect certain amendments to our certificate of incorporation and bylaws; |
• | eliminating the ability of stockholders to call special meetings of stockholders; |
• | prohibiting stockholder action by written consent; and |
• | establishing advance notice requirements for nominations for election to the board of directors or for proposing matters that can be acted on by stockholders at stockholder meetings. |
Operating Facilities | Square Footage | Segment | ||
Houston, Texas | 210,000 | Global Headquarters, E&P Technology & Services and Ocean Bottom Integrated Technologies | ||
Harahan, Louisiana | 144,000 | Devices group within Operations Optimization | ||
Chertsey, England | 18,000 | E&P Technology & Services | ||
Edinburgh, Scotland | 16,000 | Optimization Software & Services group within Operations Optimization | ||
388,000 |
Years Ended December 31, | |||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
(In thousands) | |||||||||||||||||||
Cost of sales: | |||||||||||||||||||
Write-down of multi-client data library | $ | — | $ | (2,304 | ) | $ | — | $ | (399 | ) | $ | (100,100 | ) | ||||||
Write-down of excess and obsolete inventory | $ | (665 | ) | $ | (398 | ) | $ | (429 | ) | $ | (151 | ) | $ | (6,952 | ) | ||||
Operating expenses: | |||||||||||||||||||
Impairment of long-lived assets | $ | (36,553 | ) | $ | — | $ | — | $ | — | $ | (23,284 | ) | |||||||
Write-down of receivables | $ | — | $ | — | $ | — | $ | — | $ | (8,214 | ) | ||||||||
Accelerated vesting and cash exercise of stock appreciation right awards | $ | (2,105 | ) | $ | (6,141 | ) | $ | — | $ | — | $ | — | |||||||
Other income (expense): | |||||||||||||||||||
Reversal of (accrual for) loss contingency related to legal proceedings | $ | — | $ | (5,000 | ) | $ | 1,168 | $ | 101,978 | $ | 69,557 | ||||||||
Gain on sale of Source product line | $ | — | $ | — | $ | — | $ | — | $ | 6,522 | |||||||||
Gain on sale of cost method investments | $ | — | $ | — | $ | — | $ | — | $ | 5,463 | |||||||||
Recovery of INOVA bad debts | $ | — | $ | 844 | $ | 3,983 | $ | — | $ | — | |||||||||
Loss on bond exchange | $ | — | $ | — | $ | (2,182 | ) | $ | — | $ | — | ||||||||
Equity in losses of INOVA investments | $ | — | $ | — | $ | — | $ | — | $ | (49,485 | ) |
Years Ended December 31, | ||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||
(In thousands, except for per share data) | ||||||||||||||||||||
Statement of Operations Data: | ||||||||||||||||||||
Net revenues | $ | 180,045 | $ | 197,554 | $ | 172,808 | $ | 221,513 | $ | 509,558 | ||||||||||
Gross profit | 59,620 | 75,639 | 36,032 | 8,003 | 62,223 | |||||||||||||||
Loss from operations | (54,272 | ) | (8,699 | ) | (43,171 | ) | (100,632 | ) | (117,929 | ) | ||||||||||
Net loss applicable to common shares | (71,171 | ) | (30,242 | ) | (65,148 | ) | (25,122 | ) | (128,252 | ) | ||||||||||
Net loss per basic share | $ | (5.20 | ) | $ | (2.55 | ) | $ | (5.71 | ) | $ | (2.29 | ) | $ | (11.72 | ) | |||||
Net loss per diluted share | $ | (5.20 | ) | $ | (2.55 | ) | $ | (5.71 | ) | $ | (2.29 | ) | $ | (11.72 | ) | |||||
Weighted average number of common shares outstanding | 13,692 | 11,876 | 11,400 | 10,957 | 10,939 | |||||||||||||||
Weighted average number of diluted shares outstanding | 13,692 | 11,876 | 11,400 | 10,957 | 10,939 | |||||||||||||||
Balance Sheet Data (end of year): | ||||||||||||||||||||
Working capital | $ | 20,105 | $ | (8,628 | ) | (a) | $ | 16,555 | $ | 93,160 | $ | 222,099 | ||||||||
Total assets | 244,749 | 301,069 | 313,216 | 435,088 | 617,257 | |||||||||||||||
Long-term debt (b) | 121,741 | 156,744 | 158,790 | 182,992 | 190,594 | |||||||||||||||
Total equity | 7,824 | 30,806 | 53,398 | 112,040 | 135,712 | |||||||||||||||
Other Data: | ||||||||||||||||||||
Investment in multi-client data library | $ | 28,276 | $ | 23,710 | $ | 14,884 | $ | 45,558 | $ | 67,785 | ||||||||||
Capital expenditures | 1,514 | 1,063 | 1,488 | 19,241 | 8,264 | |||||||||||||||
Depreciation and amortization (other than multi-client data library) | 8,763 | 16,592 | 21,975 | 26,527 | 27,656 | |||||||||||||||
Amortization of multi-client data library | 48,988 | 47,102 | 33,335 | 35,784 | 64,374 |
(a) | Working capital at December 31, 2017 is negative due to $28.5 million of Third Lien Notes (redeemed March 26, 2018) being reclassified from long-term to current. |
(b) | Includes current maturities of long-term debt. |
Brent Crude (per bbl) | West Texas Intermediate Crude (per bbl) | Henry Hub Natural Gas (per mcf) | |||||||||||||||||||||
Quarter ended | High | Low | High | Low | High | Low | |||||||||||||||||
12/31/2018 | $ | 86.07 | $ | 50.57 | $ | 76.40 | $ | 44.48 | $ | 4.70 | $ | 3.10 | |||||||||||
9/30/2018 | $ | 82.72 | $ | 68.38 | $ | 74.19 | $ | 65.07 | $ | 3.12 | $ | 2.73 | |||||||||||
6/30/2018 | $ | 80.42 | $ | 66.04 | $ | 77.41 | $ | 62.03 | $ | 3.08 | $ | 2.74 | |||||||||||
3/31/2018 | $ | 71.08 | $ | 61.94 | $ | 66.27 | $ | 59.20 | $ | 6.24 | $ | 2.49 | |||||||||||
12/31/2017 | $ | 66.80 | $ | 55.29 | $ | 60.46 | $ | 49.34 | $ | 3.69 | $ | 2.60 | |||||||||||
9/30/2017 | $ | 59.77 | $ | 46.47 | $ | 52.14 | $ | 44.25 | $ | 3.18 | $ | 2.76 | |||||||||||
6/30/2017 | $ | 55.05 | $ | 43.98 | $ | 53.38 | $ | 42.48 | $ | 3.27 | $ | 2.85 | |||||||||||
3/31/2017 | $ | 56.34 | $ | 49.56 | $ | 54.48 | $ | 47.00 | $ | 3.71 | $ | 2.44 | |||||||||||
Source: EIA. |
Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(In thousands) | |||||||||||
Net revenues: | |||||||||||
E&P Technology & Services: | |||||||||||
New Venture | $ | 69,685 | $ | 100,824 | $ | 27,362 | |||||
Data Library | 47,095 | 40,016 | 39,989 | ||||||||
Total multi-client revenues | 116,780 | 140,840 | 67,351 | ||||||||
Imaging Services | 19,740 | 16,409 | 25,538 | ||||||||
Total | $ | 136,520 | $ | 157,249 | $ | 92,889 | |||||
Operations Optimization: | |||||||||||
Devices | $ | 22,396 | $ | 23,610 | $ | 26,746 | |||||
Optimization Software & Services | 21,129 | 16,695 | 16,756 | ||||||||
Total | $ | 43,525 | $ | 40,305 | $ | 43,502 | |||||
Ocean Bottom Integrated Technologies | $ | — | $ | — | $ | 36,417 | |||||
Total | $ | 180,045 | $ | 197,554 | $ | 172,808 |
Year Ended December 31, 2018 | Year Ended December 31, 2017 | Year Ended December 31, 2016 | |||||||||||||||||||||||||||||||||
As Reported | Special Items | As Adjusted | As Reported | Special Items | As Adjusted | As Reported | Special Items | As Adjusted | |||||||||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||||||||||||||
Gross profit: | |||||||||||||||||||||||||||||||||||
E&P Technology & Services | $ | 43,369 | $ | — | $ | 43,369 | $ | 65,196 | $ | — | $ | 65,196 | $ | 4,708 | $ | 766 | $ | 5,474 | |||||||||||||||||
Operations Optimization | 22,293 | — | 22,293 | 20,076 | — | 20,076 | 21,745 | 188 | 21,933 | ||||||||||||||||||||||||||
Ocean Bottom Integrated Technologies | (6,042 | ) | — | (6,042 | ) | (9,633 | ) | — | (9,633 | ) | 9,579 | 123 | 9,702 | ||||||||||||||||||||||
Total | $ | 59,620 | $ | — | $ | 59,620 | $ | 75,639 | $ | — | $ | 75,639 | $ | 36,032 | $ | 1,077 | (d) | $ | 37,109 | ||||||||||||||||
Gross margin: | |||||||||||||||||||||||||||||||||||
E&P Technology & Services | 32 | % | — | % | 32 | % | 41 | % | — | % | 41 | % | 5 | % | 1 | % | 6 | % | |||||||||||||||||
Operations Optimization | 51 | % | — | % | 51 | % | 50 | % | — | % | 50 | % | 50 | % | — | % | 50 | % | |||||||||||||||||
Ocean Bottom Integrated Technologies | — | % | — | % | — | % | — | % | — | % | — | % | 27 | % | — | % | 27 | % | |||||||||||||||||
Total | 33 | % | — | % | 33 | % | 38 | % | — | % | 38 | % | 21 | % | — | % | 21 | % | |||||||||||||||||
Income (loss) from operations: | |||||||||||||||||||||||||||||||||||
E&P Technology & Services | $ | 21,758 | $ | — | $ | 21,758 | $ | 42,505 | $ | — | $ | 42,505 | $ | (16,446 | ) | $ | 1,128 | $ | (15,318 | ) | |||||||||||||||
Operations Optimization | 7,295 | — | 7,295 | 8,022 | — | 8,022 | 9,652 | 197 | 9,849 | ||||||||||||||||||||||||||
Ocean Bottom Integrated Technologies | (47,644 | ) | 36,553 | (a) | (11,091 | ) | (16,259 | ) | — | (16,259 | ) | (1,756 | ) | 504 | (1,252 | ) | |||||||||||||||||||
Support and other | (35,681 | ) | 2,105 | (b) | (33,576 | ) | (42,967 | ) | 6,141 | (b) | (36,826 | ) | (34,621 | ) | 180 | (34,441 | ) | ||||||||||||||||||
Total | $ | (54,272 | ) | $ | 38,658 | $ | (15,614 | ) | $ | (8,699 | ) | $ | 6,141 | $ | (2,558 | ) | $ | (43,171 | ) | $ | 2,009 | (d) | $ | (41,162 | ) | ||||||||||
Operating margin: | |||||||||||||||||||||||||||||||||||
E&P Technology & Services | 16 | % | — | % | 16 | % | 27 | % | — | % | 27 | % | (18 | )% | 2 | % | (16 | )% | |||||||||||||||||
Operations Optimization | 17 | % | — | % | 17 | % | 20 | % | — | % | 20 | % | 22 | % | 1 | % | 23 | % | |||||||||||||||||
Ocean Bottom Integrated Technologies | — | % | — | % | — | % | — | % | — | % | — | % | (5 | )% | 2 | % | (3 | )% | |||||||||||||||||
Support and other | (20 | )% | 1 | % | (19 | )% | (22 | )% | 3 | % | (19 | )% | (20 | )% | — | % | (20 | )% | |||||||||||||||||
Total | (30 | )% | 21 | % | (9 | )% | (4 | )% | 3 | % | (1 | )% | (25 | )% | 1 | % | (24 | )% | |||||||||||||||||
Net income (loss) applicable to common shares | $ | (71,171 | ) | $ | 38,658 | $ | (32,513 | ) | $ | (30,242 | ) | $ | 11,141 | (c) | $ | (19,101 | ) | $ | (65,148 | ) | $ | (960 | ) | (e) | $ | (66,108 | ) | ||||||||
Diluted net income (loss) per common share | $ | (5.20 | ) | $ | 2.83 | $ | (2.37 | ) | $ | (2.55 | ) | $ | 0.94 | $ | (1.61 | ) | $ | (5.71 | ) | $ | (0.09 | ) | $ | (5.80 | ) |
(a) | Represents a write-down of the cable-based ocean bottom acquisition technologies. | |||
(b) | Represents accelerated vesting and cash exercise of stock appreciation right awards. | |||
(c) | In addition to item (b), also impacting net loss applicable to common shares was a loss contingency accrual of $5.0 million related to legal proceedings. | |||
(d) | Represents severance and facility charges related to the Company’s 2016 restructuring. | |||
(e) | Represents a $3.9 million recovery of INOVA bad debts, partially offset by item (d). | |||
Year Ended December 31, 2018 | Year Ended December 31, 2017 | ||||||||||||||||||||||
As Reported | Special Items | As Adjusted | As Reported | Special Items | As Adjusted | ||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research, development and engineering | $ | 18,182 | $ | — | $ | 18,182 | $ | 16,431 | $ | — | $ | 16,431 | |||||||||||
Marketing and sales | 21,793 | — | 21,793 | 20,778 | — | 20,778 | |||||||||||||||||
General, administrative and other operating expenses | 37,364 | (2,105 | ) | (a) | 35,259 | 47,129 | (6,141 | ) | (a) | 40,988 | |||||||||||||
Impairment of long-lived assets | 36,553 | (36,553 | ) | (b) | — | — | — | — | |||||||||||||||
Total operating expenses | $ | 113,892 | $ | (38,658 | ) | $ | 75,234 | $ | 84,338 | $ | (6,141 | ) | $ | 78,197 |
(a) | Represents accelerated vesting and cash exercise of stock appreciation rights awards. |
(b) | Represents a write-down of the cable-based ocean bottom acquisition technologies. |
Years Ended December 31, | |||||||
2018 | 2017 | ||||||
Accrual for contingency related to legal proceedings (Footnote 8) | $ | — | $ | (5,000 | ) | ||
Recovery of INOVA bad debts | — | 844 | |||||
Other income (expense) | (436 | ) | 211 | ||||
Total other income (expense) | $ | (436 | ) | $ | (3,945 | ) |
Year Ended December 31, 2017 | Year Ended December 31, 2016 | ||||||||||||||||||||||
As Reported | Special Items(b) | As Adjusted | As Reported | Special Items(a) | As Adjusted | ||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research, development and engineering | $ | 16,431 | $ | — | $ | 16,431 | $ | 17,833 | $ | (397 | ) | $ | 17,436 | ||||||||||
Marketing and sales | 20,778 | — | 20,778 | 17,371 | (262 | ) | 17,109 | ||||||||||||||||
General, administrative and other operating expenses | 47,129 | (6,141 | ) | 40,988 | 43,999 | (273 | ) | 43,726 | |||||||||||||||
Total operating expenses | $ | 84,338 | $ | (6,141 | ) | $ | 78,197 | $ | 79,203 | $ | (932 | ) | $ | 78,271 | |||||||||
Income (loss) from operations | $ | (8,699 | ) | $ | 6,141 | $ | (2,558 | ) | $ | (43,171 | ) | $ | 2,009 | $ | (41,162 | ) |
(a) | Includes severance affecting operating expenses. |
(b) | Represents accelerated vesting and cash exercise of stock appreciation rights awards. |
Years Ended December 31, | |||||||
2017 | 2016 | ||||||
Reduction of (accrual for) loss contingency related to legal proceedings (Footnote 8) | $ | (5,000 | ) | $ | 1,168 | ||
Recovery of INOVA bad debts | 844 | 3,983 | |||||
Loss on bond exchange | — | (2,182 | ) | ||||
Other expense | 211 | (1,619 | ) | ||||
Total other income | $ | (3,945 | ) | $ | 1,350 |
• | extend the maturity date of the Credit Facility by approximately four years (from August 22, 2019 to August 16, 2023), subject to the retirement or extension of the maturity date of the Second Lien Notes, as defined below, which mature on December 15, 2021; |
• | increase the maximum revolver amount by $10 million (from $40 million to $50 million); |
• | increase the borrowing base percentage of the net orderly liquidation value as it relates to the multi-client data library (not to exceed $28.5 million, up from the previous maximum of $15 million for the multi-client data library component); |
• | include the eligible billed receivables of the Mexican Subsidiary up to a maximum of $5 million in the borrowing base calculation and joins the Mexican Subsidiary as a borrower thereunder (with a maximum exposure of $5 million) and require the equity and assets of the Mexican Subsidiary to be pledged to secure obligations under the Credit Facility; |
• | modify the interest rate such that the maximum interest rate remains consistent with the fixed interest rate prior to the Third Amendment (that is, 3.00% per annum for domestic rate loans and 4.00% per annum for LIBOR rate loans), but now lowers the range down to a minimum interest rate of 2.00% for domestic rate loans and 3.00% for LIBOR rate loans based on a leverage ratio for the preceding four-quarter period; |
• | decrease the minimum excess borrowing availability threshold which (if the Borrowers have minimum excess borrowing availability below any such threshold) triggers the agent’s right to exercise dominion over cash and deposit accounts; and |
• | modify the trigger required to test for compliance with the fixed charge coverage ratio. |
Date | Percentage | |
2019 | 105.500% | |
2020 | 103.500% | |
2021 and thereafter | 100.000% |
Contractual Obligations | Total | Less Than 1 Year | 1-3 Years | 3-5 Years | More Than 5 Years | ||||||||||||||
Long-term and short-term debt | $ | 121,728 | $ | 1,159 | $ | 120,569 | $ | — | $ | — | |||||||||
Interest on long-term debt obligations | 34,901 | 11,344 | 23,236 | 321 | — | ||||||||||||||
Equipment capital lease obligations | 2,938 | 1,069 | 1,869 | — | — | ||||||||||||||
Operating leases | 68,938 | 13,248 | 34,753 | 13,914 | 7,023 | ||||||||||||||
Purchase obligations | 2,908 | 2,908 | — | — | — | ||||||||||||||
Total | $ | 231,413 | $ | 29,728 | $ | 180,427 | $ | 14,235 | $ | 7,023 |
(i) | pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of our company; |
(ii) | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of our company are being made only in accordance with authorizations of our management and directors; and |
(iii) | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements. |
3.1 | — | |||
3.2 | — | |||
4.1 | — | |||
4.2 | ||||
4.3 | ||||
4.4 | ||||
**10.1 | — | |||
**10.2 | — | |||
**10.3 | — | |||
**10.4 | — | |||
**10.5 | — |
10.6 | — | |||
10.7 | — | |||
10.8 | — | |||
10.9 | — | |||
**10.10 | — | |||
10.11 | — | |||
**10.12 | — | |||
10.13 | — | |||
10.14 | — | |||
10.15 | — | |||
10.16 | — | |||
**10.17 | — | |||
**10.18 | — | |||
**10.19 | — | |||
**10.20 | — | |||
**10.21 | — | |||
10.22 | — | |||
10.23 | — | |||
* **10.24 | — |
* **10.25 | — | |||
* **10.26 | — | |||
*21.1 | — | |||
*23.1 | — | |||
*24.1 | — | |||
*31.1 | — | |||
*31.2 | — | |||
*32.1 | — | |||
*32.2 | — | |||
*101 | — | The following materials are formatted in Extensible Business Reporting Language (XBRL): (i) Consolidated Balance Sheets at December 31, 2018 and 2017, (ii) Consolidated Statements of Operations for the years ended December 31, 2018, 2017 and 2016, (iii) Comprehensive Income (Loss) for the years ended December 31, 2018, 2017 and 2016, (iv) Consolidated Statements of Cash Flows for the years ended December 31, 2018, 2017 and 2016, (v) Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2018, 2017 and 2016, (vi) Footnotes to Consolidated Financial Statements and (vii) Schedule II – Valuation and Qualifying Accounts. | ||
* | Filed herewith. | |||
** | Management contract or compensatory plan or arrangement. |
(b) | Exhibits required by Item 601 of Regulation S-K. |
Reference is made to subparagraph (a) (3) of this Item 15, which is incorporated herein by reference. | |
(c) | Not applicable. |
ION GEOPHYSICAL CORPORATION | |||
By | /s/ R. Brian Hanson | ||
R. Brian Hanson | |||
President and Chief Executive Officer |
Name | Capacities | Date | ||
/s/ R. BRIAN HANSON | President, Chief Executive Officer and Director (Principal Executive Officer) | February 7, 2019 | ||
R. Brian Hanson | ||||
/s/ STEVEN A. BATE | Executive Vice President and Chief Financial Officer (Principal Financial Officer) | February 7, 2019 | ||
Steven A. Bate | ||||
/s/ SCOTT SCHWAUSCH | Vice President and Corporate Controller (Principal Accounting Officer) | February 7, 2019 | ||
Scott Schwausch | ||||
/s/ JAMES M. LAPEYRE, JR. | Chairman of the Board of Directors and Director | February 7, 2019 | ||
James M. Lapeyre, Jr. | ||||
/s/ DAVID H. BARR | Director | February 7, 2019 | ||
David H. Barr | ||||
Director | February 7, 2019 | |||
Zheng HuaSheng |
Name | Capacities | Date | ||
/s/ MICHAEL C. JENNINGS | Director | February 7, 2019 | ||
Michael C. Jennings | ||||
/s/ FRANKLIN MYERS | Director | February 7, 2019 | ||
Franklin Myers | ||||
/s/ S. JAMES NELSON, JR. | Director | February 7, 2019 | ||
S. James Nelson, Jr. | ||||
/s/ JOHN N. SEITZ | Director | February 7, 2019 | ||
John N. Seitz |
Page | ||
ION Geophysical Corporation and Subsidiaries: | ||
Report of Independent Registered Public Accounting Firms | F-2 | |
Consolidated Balance Sheets — December 31, 2018 and 2017 | F-3 | |
Consolidated Statements of Operations — Years ended December 31, 2018, 2017 and 2016 | F-4 | |
Consolidated Statements of Comprehensive Loss — Years ended December 31, 2018, 2017 and 2016 | F-5 | |
Consolidated Statements of Cash Flows — Years ended December 31, 2018, 2017 and 2016 | F-6 | |
Consolidated Statements of Stockholders’ Equity — Years ended December 31, 2018, 2017 and 2016 | F-8 | |
Footnotes to Consolidated Financial Statements | F-9 | |
Schedule II — Valuation and Qualifying Accounts | S-1 |
December 31, | |||||||
2018 | 2017 | ||||||
(In thousands, except share data) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 33,551 | $ | 52,056 | |||
Accounts receivable, net | 26,128 | 19,478 | |||||
Unbilled receivables | 44,032 | 37,304 | |||||
Inventories, net | 14,130 | 14,508 | |||||
Prepaid expenses and other current assets | 7,782 | 7,643 | |||||
Total current assets | 125,623 | 130,989 | |||||
Deferred income tax asset, net | 7,191 | 1,753 | |||||
Property, plant, equipment and seismic rental equipment, net | 13,041 | 52,153 | |||||
Multi-client data library, net | 73,544 | 89,300 | |||||
Goodwill | 22,915 | 24,089 | |||||
Other assets | 2,435 | 2,785 | |||||
Total assets | $ | 244,749 | $ | 301,069 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Current maturities of long-term debt | $ | 2,228 | $ | 40,024 | |||
Accounts payable | 34,913 | 24,951 | |||||
Accrued expenses | 31,411 | 38,697 | |||||
Accrued multi-client data library royalties | 29,256 | 27,035 | |||||
Deferred revenue | 7,710 | 8,910 | |||||
Total current liabilities | 105,518 | 139,617 | |||||
Long-term debt, net of current maturities | 119,513 | 116,720 | |||||
Other long-term liabilities | 11,894 | 13,926 | |||||
Total liabilities | 236,925 | 270,263 | |||||
Equity: | |||||||
Common stock, $0.01 par value; authorized 26,666,667 shares; outstanding 14,015,615 and 12,019,701 shares at December 31, 2018 and 2017, respectively. | 140 | 120 | |||||
Additional paid-in capital | 952,626 | 903,247 | |||||
Accumulated deficit | (926,092 | ) | (854,921 | ) | |||
Accumulated other comprehensive loss | (20,442 | ) | (18,879 | ) | |||
Total stockholders’ equity | 6,232 | 29,567 | |||||
Noncontrolling interests | 1,592 | 1,239 | |||||
Total equity | 7,824 | 30,806 | |||||
Total liabilities and equity | $ | 244,749 | $ | 301,069 |
Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(In thousands, except per share data) | |||||||||||
Service revenues | $ | 139,038 | $ | 159,410 | $ | 130,640 | |||||
Product revenues | 41,007 | 38,144 | 42,168 | ||||||||
Total net revenues | 180,045 | 197,554 | 172,808 | ||||||||
Cost of services | 100,557 | 103,124 | 115,763 | ||||||||
Cost of products | 19,868 | 18,791 | 21,013 | ||||||||
Gross profit | 59,620 | 75,639 | 36,032 | ||||||||
Operating expenses: | |||||||||||
Research, development and engineering | 18,182 | 16,431 | 17,833 | ||||||||
Marketing and sales | 21,793 | 20,778 | 17,371 | ||||||||
General, administrative and other operating expenses | 37,364 | 47,129 | 43,999 | ||||||||
Impairment of long-lived assets | 36,553 | — | — | ||||||||
Total operating expenses | 113,892 | 84,338 | 79,203 | ||||||||
Loss from operations | (54,272 | ) | (8,699 | ) | (43,171 | ) | |||||
Interest expense, net | (12,972 | ) | (16,709 | ) | (18,485 | ) | |||||
Other income (expense), net | (436 | ) | (3,945 | ) | 1,350 | ||||||
Loss before income taxes | (67,680 | ) | (29,353 | ) | (60,306 | ) | |||||
Income tax expense | 2,718 | 24 | 4,421 | ||||||||
Net loss | (70,398 | ) | (29,377 | ) | (64,727 | ) | |||||
Net income attributable to noncontrolling interests | (773 | ) | (865 | ) | (421 | ) | |||||
Net loss attributable to ION | $ | (71,171 | ) | $ | (30,242 | ) | $ | (65,148 | ) | ||
Net loss per share: | |||||||||||
Basic | $ | (5.20 | ) | $ | (2.55 | ) | $ | (5.71 | ) | ||
Diluted | $ | (5.20 | ) | $ | (2.55 | ) | $ | (5.71 | ) | ||
Weighted average number of common shares outstanding: | |||||||||||
Basic | 13,692 | 11,876 | 11,400 | ||||||||
Diluted | 13,692 | 11,876 | 11,400 |
Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(In thousands) | |||||||||||
Net loss | $ | (70,398 | ) | $ | (29,377 | ) | $ | (64,727 | ) | ||
Other comprehensive income (loss), net of taxes, as appropriate: | |||||||||||
Foreign currency translation adjustments | (1,563 | ) | 2,869 | (6,967 | ) | ||||||
Comprehensive net loss | (71,961 | ) | (26,508 | ) | (71,694 | ) | |||||
Comprehensive income attributable to noncontrolling interests | (773 | ) | (865 | ) | (421 | ) | |||||
Comprehensive net loss attributable to ION | $ | (72,734 | ) | $ | (27,373 | ) | $ | (72,115 | ) |
Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(In thousands) | |||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | (70,398 | ) | $ | (29,377 | ) | $ | (64,727 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Depreciation and amortization (other than multi-client library) | 8,763 | 16,592 | 21,975 | ||||||||
Amortization of multi-client data library | 48,988 | 47,102 | 33,335 | ||||||||
Impairment of long-lived assets | 36,553 | — | — | ||||||||
Impairment of multi-client data library | — | 2,304 | — | ||||||||
Stock-based compensation expense | 3,337 | 2,552 | 3,267 | ||||||||
Accrual (reduction) of loss contingency related to legal proceedings | — | 5,000 | (1,168 | ) | |||||||
Loss on bond exchange | — | — | 2,182 | ||||||||
Write-down of excess and obsolete inventory | 665 | 398 | 429 | ||||||||
Deferred income taxes | (6,252 | ) | (5,420 | ) | (1,181 | ) | |||||
Change in operating assets and liabilities: | |||||||||||
Accounts receivable | (7,024 | ) | 1,692 | 20,426 | |||||||
Unbilled receivables | (5,245 | ) | (23,947 | ) | 6,543 | ||||||
Inventories | (353 | ) | 190 | 2,312 | |||||||
Accounts payable, accrued expenses and accrued royalties | (7,600 | ) | 1,443 | (5,085 | ) | ||||||
Deferred revenue | (1,112 | ) | 5,131 | (2,759 | ) | ||||||
Other assets and liabilities | 6,776 | 3,952 | (14,556 | ) | |||||||
Net cash provided by operating activities | 7,098 | 27,612 | 993 | ||||||||
Cash flows from investing activities: | |||||||||||
Investment in multi-client data library | (28,276 | ) | (23,710 | ) | (14,884 | ) | |||||
Purchase of property, plant, equipment and seismic rental equipment | (1,514 | ) | (1,063 | ) | (1,458 | ) | |||||
Proceeds from sale of cost method investments | — | — | 2,698 | ||||||||
Net cash used in investing activities | (29,790 | ) | (24,773 | ) | (13,644 | ) | |||||
Cash flows from financing activities: | |||||||||||
Borrowings under revolving line of credit | — | — | 15,000 | ||||||||
Repayments under revolving line of credit | (10,000 | ) | — | (5,000 | ) | ||||||
Payments on notes payable and long-term debt | (30,807 | ) | (4,816 | ) | (23,634 | ) | |||||
Cost associated with issuance of debt | (1,247 | ) | (53 | ) | (6,744 | ) | |||||
Net proceeds from issuance of stocks | 46,999 | — | — | ||||||||
Repurchase of common stock | — | — | (964 | ) | |||||||
Proceeds from employee stock purchases and exercise of stock options | 214 | 1,619 | — | ||||||||
Dividend payment to noncontrolling interest | (200 | ) | (100 | ) | — | ||||||
Other financing activities | (1,151 | ) | (243 | ) | (252 | ) | |||||
Net cash provided by (used in) financing activities | 3,808 | (3,593 | ) | (21,594 | ) | ||||||
Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash | 319 | (260 | ) | 1,386 | |||||||
Net decrease in cash, cash equivalents and restricted cash | (18,565 | ) | (1,014 | ) | (32,859 | ) | |||||
Cash, cash equivalents and restricted cash at beginning of period | 52,419 | 53,433 | 86,292 | ||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 33,854 | $ | 52,419 | $ | 53,433 |
December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(In thousands) | |||||||||||
Cash and cash equivalents | $ | 33,551 | $ | 52,056 | $ | 52,652 | |||||
Restricted cash included in prepaid expenses and other current assets | — | 60 | 260 | ||||||||
Restricted cash included in other long-term assets | 303 | 303 | 521 | ||||||||
Total cash, cash equivalents, and restricted cash shown in consolidated statements of cash flows | $ | 33,854 | $ | 52,419 | $ | 53,433 |
Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||
(In thousands, except shares) | Shares | Amount | ||||||||||||||||||||||||||||
Balance at January 1, 2016 (a) | 10,702,689 | $ | 107 | $ | 894,715 | $ | (759,531 | ) | $ | (14,781 | ) | $ | (8,551 | ) | $ | 81 | $ | 112,040 | ||||||||||||
Net (loss) income | — | — | — | (65,148 | ) | — | — | 421 | (64,727 | ) | ||||||||||||||||||||
Translation adjustment | — | — | — | — | (6,967 | ) | — | 7 | (6,960 | ) | ||||||||||||||||||||
Stock-based compensation expense | — | — | 3,267 | — | — | — | — | 3,267 | ||||||||||||||||||||||
Vesting of restricted stock units/awards | 40,495 | — | — | — | — | — | — | — | ||||||||||||||||||||||
Purchase of treasury shares | (155,304 | ) | (1 | ) | — | — | — | (963 | ) | — | (964 | ) | ||||||||||||||||||
Restricted stock cancelled for employee minimum income taxes | (4,973 | ) | — | (22 | ) | — | — | — | — | (22 | ) | |||||||||||||||||||
Issuance of stock for the ESPP | 4,100 | — | 23 | — | — | — | — | 23 | ||||||||||||||||||||||
Issuance of stock in bond exchange | 1,205,440 | 12 | 1,215 | — | — | 9,514 | — | 10,741 | ||||||||||||||||||||||
Balance at December 31, 2016 | 11,792,447 | 118 | 899,198 | (824,679 | ) | (21,748 | ) | — | 509 | 53,398 | ||||||||||||||||||||
Net (loss) income | — | — | — | (30,242 | ) | — | — | 865 | (29,377 | ) | ||||||||||||||||||||
Translation adjustment | — | — | — | — | 2,869 | — | (35 | ) | 2,834 | |||||||||||||||||||||
Dividend payment to noncontrolling interest | — | — | — | — | — | — | (100 | ) | (100 | ) | ||||||||||||||||||||
Stock-based compensation expense | — | — | 2,552 | — | — | — | — | 2,552 | ||||||||||||||||||||||
Exercise of stock options | 15,000 | — | 46 | — | — | — | — | 46 | ||||||||||||||||||||||
Vesting of restricted stock units/awards | 115,576 | 1 | (1 | ) | — | — | — | — | — | |||||||||||||||||||||
Employee purchases of unregistered shares of common stock | 120,567 | 1 | 1,572 | — | — | — | — | 1,573 | ||||||||||||||||||||||
Restricted stock cancelled for employee minimum income taxes | (23,889 | ) | — | (120 | ) | — | — | — | — | (120 | ) | |||||||||||||||||||
Balance at December 31, 2017 | 12,019,701 | 120 | 903,247 | (854,921 | ) | (18,879 | ) | — | 1,239 | 30,806 | ||||||||||||||||||||
Net (loss) income | — | — | — | (71,171 | ) | — | — | 773 | (70,398 | ) | ||||||||||||||||||||
Translation adjustment | — | — | — | — | (1,563 | ) | — | (220 | ) | (1,783 | ) | |||||||||||||||||||
Dividend payment to noncontrolling interest | — | — | — | — | — | — | (200 | ) | (200 | ) | ||||||||||||||||||||
Stock-based compensation expense | — | — | 3,337 | — | — | — | — | 3,337 | ||||||||||||||||||||||
Exercise of stock options | 70,086 | 1 | 213 | — | — | — | — | 214 | ||||||||||||||||||||||
Vesting of restricted stock units/awards | 151,852 | 1 | (1 | ) | — | — | — | — | — | |||||||||||||||||||||
Restricted stock cancelled for employee minimum income taxes | (46,024 | ) | — | (1,151 | ) | — | — | — | — | (1,151 | ) | |||||||||||||||||||
Public equity offering | 1,820,000 | 18 | 46,981 | — | — | — | — | 46,999 | ||||||||||||||||||||||
Balance at December 31, 2018 | 14,015,615 | $ | 140 | $ | 952,626 | $ | (926,092 | ) | $ | (20,442 | ) | $ | — | $ | 1,592 | $ | 7,824 |
(a) | The figures for January 1, 2016, set forth in the tables above have been retroactively adjusted to reflect the one-for-fifteen reverse stock split completed on February 4, 2016. |
Years | |
Machinery and equipment | 3-7 |
Buildings | 5-25 |
Seismic rental equipment | 3-5 |
Leased equipment and other | 3-10 |
December 31, | |||||||
2018 | 2017 | ||||||
Gross costs of multi-client data creation | $ | 972,309 | $ | 939,077 | |||
Less accumulated amortization | (776,860 | ) | (727,872 | ) | |||
Less impairments to multi-client data library | (121,905 | ) | (121,905 | ) | |||
Multi-client data library, net | $ | 73,544 | $ | 89,300 |
Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Net revenues: | |||||||||||
E&P Technology & Services: | |||||||||||
New Venture | $ | 69,685 | $ | 100,824 | $ | 27,362 | |||||
Data Library | 47,095 | 40,016 | 39,989 | ||||||||
Total multi-client revenues | 116,780 | 140,840 | 67,351 | ||||||||
Imaging Services | 19,740 | 16,409 | 25,538 | ||||||||
Total | $ | 136,520 | $ | 157,249 | $ | 92,889 | |||||
Operations Optimization: | |||||||||||
Devices | $ | 22,396 | $ | 23,610 | $ | 26,746 | |||||
Optimization Software & Services | 21,129 | 16,695 | 16,756 | ||||||||
Total | $ | 43,525 | $ | 40,305 | $ | 43,502 | |||||
Ocean Bottom Integrated Technologies | $ | — | $ | — | $ | 36,417 | |||||
Total | $ | 180,045 | $ | 197,554 | $ | 172,808 | |||||
Gross profit (loss): | |||||||||||
E&P Technology & Services | $ | 43,369 | $ | 65,196 | $ | 4,708 | |||||
Operations Optimization | 22,293 | 20,076 | 21,745 | ||||||||
Ocean Bottom Integrated Technologies | (6,042 | ) | (9,633 | ) | 9,579 | ||||||
Total | $ | 59,620 | $ | 75,639 | $ | 36,032 | |||||
Gross margin: | |||||||||||
E&P Technology & Services | 32 | % | 41 | % | 5 | % | |||||
Operations Optimization | 51 | % | 50 | % | 50 | % | |||||
Ocean Bottom Integrated Technologies | — | % | — | % | 26 | % | |||||
Total | 33 | % | 38 | % | 21 | % | |||||
Income (loss) from operations: | |||||||||||
E&P Technology & Services | $ | 21,758 | $ | 42,505 | $ | (16,446 | ) | ||||
Operations Optimization | 7,295 | 8,022 | 9,652 | ||||||||
Ocean Bottom Integrated Technologies | (47,644 | ) | (a) | (16,259 | ) | (1,756 | ) | ||||
Support and other | (35,681 | ) | (42,967 | ) | (34,621 | ) | |||||
Loss from operations | (54,272 | ) | (8,699 | ) | (43,171 | ) | |||||
Interest expense, net | (12,972 | ) | (16,709 | ) | (18,485 | ) | |||||
Other income (expense), net | (436 | ) | (3,945 | ) | 1,350 | ||||||
Loss before income taxes | $ | (67,680 | ) | $ | (29,353 | ) | $ | (60,306 | ) |
Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Depreciation and amortization (including multi-client data library): | |||||||||||
E&P Technology & Services | $ | 51,673 | $ | 53,663 | $ | 44,100 | |||||
Operations Optimization | 995 | 1,349 | 1,780 | ||||||||
Ocean Bottom Integrated Technologies | 4,231 | 7,001 | 7,511 | ||||||||
Support and other | 852 | 1,681 | 1,919 | ||||||||
Total | $ | 57,751 | $ | 63,694 | $ | 55,310 |
December 31, | |||||||
2018 | 2017 | ||||||
Total assets: | |||||||
E&P Technology & Services | $ | 165,132 | $ | 156,555 | |||
Operations Optimization | 51,783 | 74,361 | |||||
Ocean Bottom Integrated Technologies | 1,177 | 20,828 | |||||
Support and other | 26,657 | 49,325 | |||||
Total | $ | 244,749 | (a) | $ | 301,069 |
December 31, | |||||||
2018 | 2017 | ||||||
North America | $ | 86,614 | $ | 116,598 | |||
Latin America | 69,418 | 55,661 | |||||
Middle East | 52,037 | 70,308 | |||||
Europe | 31,566 | 51,876 | |||||
Other | 5,114 | 6,626 | |||||
Total | $ | 244,749 | $ | 301,069 |
December 31, | |||||||
2018 | 2017 | ||||||
North America | $ | 11,663 | $ | 10,609 | |||
Europe | 1,140 | 20,725 | |||||
Latin America | 143 | 170 | |||||
Middle East | 36 | 20,543 | |||||
Other | 59 | 106 | |||||
Total | $ | 13,041 | (a) | $ | 52,153 |
Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Latin America | $ | 68,871 | $ | 68,241 | $ | 24,090 | |||||
North America | 44,474 | 48,120 | 38,005 | ||||||||
Europe | 31,077 | 44,930 | 41,674 | ||||||||
Asia Pacific | 17,817 | 18,896 | 16,226 | ||||||||
Africa | 10,837 | 6,837 | 41,417 | ||||||||
Middle East | 5,526 | 2,308 | 9,467 | ||||||||
Commonwealth of Independent States | 1,443 | 8,222 | 1,929 | ||||||||
Total | $ | 180,045 | $ | 197,554 | $ | 172,808 |
December 31, | |||||||
2018 | 2017 | ||||||
New Venture | $ | 38,430 | $ | 33,183 | |||
Imaging Services | 5,075 | 4,121 | |||||
Devices | 527 | — | |||||
Total | $ | 44,032 | $ | 37,304 |
Unbilled receivables at December 31, 2017 | $ | 37,304 | |
Recognition of unbilled receivables | 153,611 | ||
Revenues billed to customers | (146,883 | ) | |
Unbilled receivables at December 31, 2018 | $ | 44,032 |
December 31, | |||||||
2018 | 2017 | ||||||
New Venture | $ | 5,797 | $ | 6,548 | |||
Imaging Services | 307 | 676 | |||||
Devices | 626 | 633 | |||||
Optimization Software & Services | 980 | 1,053 | |||||
Total | $ | 7,710 | $ | 8,910 |
Deferred revenue at December 31, 2017 | $ | 8,910 | |
Cash collected in excess of revenue recognized | 25,234 | ||
Recognition of deferred revenue (a) | (26,434 | ) | |
Deferred revenue at December 31, 2018 | $ | 7,710 |
December 31, | ||||||||
2018 | 2017 | |||||||
Senior secured second-priority lien notes (maturing December 15, 2021) | $ | 120,569 | $ | 120,569 | ||||
Senior secured third-priority lien notes (redeemed March 26, 2018) | — | 28,497 | ||||||
Revolving credit facility (amended August 16, 2018, maturing August 16, 2023) (a) | — | 10,000 | ||||||
Equipment capital leases | 2,938 | 279 | ||||||
Other debt | 1,159 | 1,382 | ||||||
Costs associated with issuances of debt | (2,925 | ) | (3,983 | ) | ||||
Total | 121,741 | 156,744 | ||||||
Current portion of long-term debt and lease obligations | (2,228 | ) | (40,024 | ) | ||||
Non-current portion of long-term debt and lease obligations | $ | 119,513 | $ | 116,720 |
• | extend the maturity date of the Credit Facility by approximately four years (from August 22, 2019 to August 16, 2023), subject to the retirement or extension of the maturity date of the Second Lien Notes, as defined below, which mature on December 15, 2021; |
• | increase the maximum revolver amount by $10 million (from $40 million to $50 million); |
• | increase the borrowing base percentage of the net orderly liquidation value as it relates to the multi-client data library (not to exceed $28.5 million, up from the previous maximum of $15 million for the multi-client data library component); |
• | include the eligible billed receivables of the Mexican Subsidiary up to a maximum of $5 million in the borrowing base calculation and joins the Mexican Subsidiary as a borrower thereunder (with a maximum exposure of $5 million) and require the equity and assets of the Mexican Subsidiary to be pledged to secure obligations under the Credit Facility; |
• | modify the interest rate such that the maximum interest rate remains consistent with the fixed interest rate prior to the Third Amendment (that is, 3.00% per annum for domestic rate loans and 4.00% per annum for LIBOR rate loans), but now lowers the range down to a minimum interest rate of 2.00% for domestic rate loans and 3.00% for LIBOR rate loans based on a leverage ratio for the preceding four-quarter period; |
• | decrease the minimum excess borrowing availability threshold which (if the Borrowers have minimum excess borrowing availability below any such threshold) triggers the agent’s right to exercise dominion over cash and deposit accounts; and |
• | modify the trigger required to test for compliance with the fixed charge coverage ratio, which is further described below. |
Date | Percentage | |
2019 | 105.500% | |
2020 | 103.500% | |
2021 and thereafter | 100.000% |
Years Ending December 31, | Short-Term and Long-Term Debt | Capital Lease Obligations | Other Financing | Total | ||||||||||||
2019 | $ | — | $ | 1,069 | 1,159 | $ | 2,228 | |||||||||
2020 | — | 1,135 | — | 1,135 | ||||||||||||
2021 | 120,569 | 734 | — | 121,303 | ||||||||||||
Total | $ | 120,569 | $ | 2,938 | $ | 1,159 | $ | 124,666 |
Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Domestic | $ | (59,212 | ) | $ | (12,487 | ) | $ | (41,246 | ) | ||
Foreign | (8,468 | ) | (16,866 | ) | (19,060 | ) | |||||
Total | $ | (67,680 | ) | $ | (29,353 | ) | $ | (60,306 | ) |
Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Current: | |||||||||||
Federal | $ | — | $ | (166 | ) | $ | — | ||||
State and local | 65 | 116 | 28 | ||||||||
Foreign | 8,905 | 5,494 | 5,574 | ||||||||
Deferred: | |||||||||||
Federal | (346 | ) | (1,263 | ) | — | ||||||
Foreign | (5,906 | ) | (4,157 | ) | (1,181 | ) | |||||
Total income tax expense | $ | 2,718 | $ | 24 | $ | 4,421 |
Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Expected income tax expense at 21% for 2018 and 35% for 2017 and 2016 | $ | (14,213 | ) | $ | (10,274 | ) | $ | (21,107 | ) | ||
Foreign tax rate differential | 74 | (2,914 | ) | 5,932 | |||||||
Foreign tax differences | 4,703 | (5,610 | ) | (4,828 | ) | ||||||
Global intangible low tax income inclusion | 3,443 | — | — | ||||||||
State and local taxes | 65 | 116 | 28 | ||||||||
Nondeductible expenses | 1,604 | 4,308 | (259 | ) | |||||||
Change in U.S. tax rate | — | 77,410 | — | ||||||||
Expired capital loss | — | 1,114 | 1,321 | ||||||||
Valuation allowance: | |||||||||||
Valuation allowance on expiring capital losses | — | (1,114 | ) | (1,321 | ) | ||||||
Valuation allowance on operations | 7,042 | (63,012 | ) | 24,655 | |||||||
Total income tax expense | $ | 2,718 | $ | 24 | $ | 4,421 |
December 31, | |||||||
2018 | 2017 | ||||||
Deferred income tax assets: | |||||||
Accrued expenses | $ | 1,126 | $ | 1,976 | |||
Allowance accounts | 6,415 | 2,960 | |||||
Net operating loss carryforward | 96,854 | 87,705 | |||||
Equity method investment | 35,292 | 35,292 | |||||
Original issue discount | 8,073 | 9,624 | |||||
Interest limitation | 5,845 | — | |||||
Basis in identified intangibles | 4,146 | 9,408 | |||||
Tax credit carryforwards | 5,345 | 6,929 | |||||
Contingency accrual | — | 788 | |||||
Other | 4,600 | 4,035 | |||||
Total deferred income tax asset | 167,696 | 158,717 | |||||
Valuation allowance | (160,505 | ) | (153,463 | ) | |||
Net deferred income tax asset | 7,191 | 5,254 | |||||
Deferred income tax liabilities: | |||||||
Unbilled receivables | — | (3,501 | ) | ||||
Total deferred income tax asset, net | $ | 7,191 | $ | 1,753 |
Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Beginning balance | $ | 447 | $ | 1,299 | $ | 1,250 | |||||
Increases in unrecognized tax benefits – current year positions | — | 59 | 49 | ||||||||
Decreases in unrecognized tax benefits – prior year position | — | (911 | ) | — | |||||||
Ending balance | $ | 447 | $ | 447 | $ | 1,299 |
Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(Accrual for) reduction of loss contingency related to legal proceedings (Footnote 8) | $ | — | $ | (5,000 | ) | $ | 1,168 | ||||
Recovery of INOVA bad debts | — | 844 | 3,983 | ||||||||
Loss on bond exchange | — | — | (2,182 | ) | |||||||
Other income (expense) | (436 | ) | 211 | (1,619 | ) | ||||||
Total other income (expense), net | $ | (436 | ) | $ | (3,945 | ) | $ | 1,350 |
A summary of accounts receivable follows (in thousands): | December 31, | ||||||
2018 | 2017 | ||||||
Accounts receivable, principally trade | $ | 26,558 | $ | 20,050 | |||
Less allowance for doubtful accounts | (430 | ) | (572 | ) | |||
Accounts receivable, net | $ | 26,128 | $ | 19,478 |
A summary of inventories follows (in thousands): | December 31, | ||||||
2018 | 2017 | ||||||
Raw materials and purchased subassemblies | $ | 20,011 | $ | 20,448 | |||
Work-in-process | 1,032 | 1,146 | |||||
Finished goods | 8,111 | 7,953 | |||||
Less reserve for excess and obsolete inventories | (15,024 | ) | (15,039 | ) | |||
Inventories, net | $ | 14,130 | $ | 14,508 |
December 31, | |||||||
2018 | 2017 | ||||||
Buildings | $ | 15,707 | $ | 15,822 | |||
Machinery and equipment | 132,135 | 145,654 | |||||
Seismic rental equipment | 1,423 | 1,677 | |||||
Furniture and fixtures | 3,859 | 3,869 | |||||
Other | 30,104 | 28,965 | |||||
Total | 183,228 | 195,987 | |||||
Less accumulated depreciation | (133,634 | ) | (143,834 | ) | |||
Less impairment of long-lived assets | (36,553 | ) | — | ||||
Property, plant, equipment and seismic rental equipment, net | $ | 13,041 | $ | 52,153 |
A summary of accrued expenses follows (in thousands): | December 31, | ||||||
2018 | 2017 | ||||||
Compensation, including compensation-related taxes and commissions | $ | 14,502 | $ | 19,809 | |||
Accrued multi-client data library acquisition costs | 3,746 | 5,104 | |||||
Income tax payable | 7,577 | 1,868 | |||||
Accrual for loss contingency related to legal proceedings (Footnote 8) | — | 3,750 | |||||
Other | 5,586 | 8,166 | |||||
Total | $ | 31,411 | $ | 38,697 |
A summary of other long-term liabilities follows (in thousands): | December 31, | ||||||
2018 | 2017 | ||||||
Deferred lease liabilities | 11,465 | 12,811 | |||||
Other | 429 | 1,115 | |||||
Total | $ | 11,894 | $ | 13,926 |
E&P Technology & Services | Optimization Software & Services | Total | |||||||||
Balance at January 1, 2017 | $ | 2,943 | $ | 19,265 | $ | 22,208 | |||||
Impact of foreign currency translation adjustments | — | 1,881 | 1,881 | ||||||||
Balance at December 31, 2017 | 2,943 | 21,146 | 24,089 | ||||||||
Impact of foreign currency translation adjustments | — | (1,174 | ) | (1,174 | ) | ||||||
Balance at December 31, 2018 | $ | 2,943 | $ | 19,972 | $ | 22,915 |
Option Price per Share | Outstanding | Vested | Available for Grant | ||||||||
January 1, 2016 | $34.20 - $245.85 | 560,797 | 384,305 | 97,003 | |||||||
Increase in shares authorized | — | — | — | 1,150,940 | |||||||
Granted | 3.10 | 415,000 | — | (415,000 | ) | ||||||
Vested | — | — | 67,480 | — | |||||||
Cancelled/forfeited | 3.10 - 245.85 | (128,162 | ) | (103,432 | ) | 18,895 | |||||
Restricted stock granted out of option plans | — | — | — | (259,300 | ) | ||||||
Restricted stock forfeited or cancelled for employee minimum income taxes and returned to the plans | — | — | — | 7,182 | |||||||
December 31, 2016 | $3.10 - $245.85 | 847,635 | 348,353 | 599,720 | |||||||
Granted | 13.15 | 156,000 | — | (156,000 | ) | ||||||
Vested | — | — | 149,537 | — | |||||||
Exercised | 3.10 | (15,000 | ) | (15,000 | ) | — | |||||
Cancelled/forfeited | 3.10 - 245.85 | (98,294 | ) | (47,612 | ) | 82,118 | |||||
Restricted stock granted out of option plans | — | — | — | (59,500 | ) | ||||||
Restricted stock forfeited or cancelled for employee minimum income taxes and returned to the plans | — | — | — | 22,065 | |||||||
December 31, 2017 | 3.10 - 245.85 | 890,341 | 435,278 | 488,403 | |||||||
Increase in shares authorized | — | — | — | 1,200,000 | |||||||
Granted | 24.50 | 10,000 | — | (10,000 | ) | ||||||
Vested | — | — | 153,944 | — | |||||||
Exercised | 3.10 | (70,086 | ) | (70,086 | ) | — | |||||
Cancelled/forfeited | 3.10 - 245.85 | (44,365 | ) | (44,231 | ) | 2,568 | |||||
Restricted stock granted out of option plans | — | — | — | (996,775 | ) | ||||||
Restricted stock forfeited or cancelled for employee minimum income taxes and returned to the plans | — | — | — | 48,524 | |||||||
December 31, 2018 | $3.10 - $151.35 | 785,890 | 474,905 | 732,720 |
Option Price per Share | Outstanding | Weighted Average Exercise Price of Outstanding Options | Weighted Average Remaining Contract Life | Vested | Weighted Average Exercise Price of Vested Options | ||||||||||
$3.10 - $57.90 | 558,997 | $ | 15.64 | 7.2 years | 248,012 | $ | 24.32 | ||||||||
$61.05 - $71.85 | 75,231 | $ | 62.17 | 4.7 years | 75,231 | $ | 62.17 | ||||||||
$81.60 - $99.60 | 108,610 | $ | 88.94 | 3.6 years | 108,610 | $ | 88.94 | ||||||||
$106.05 - $151.35 | 43,052 | $ | 108.84 | 2.3 years | 43,052 | $ | 108.84 | ||||||||
Totals | 785,890 | $ | 35.33 | 5.4 years | 474,905 | $ | 52.76 |
Number of Shares | Weighted Average Exercise Price | Weighted Average Grant Date Fair Value | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value (000’s) | ||||||||||||
Total outstanding at January 1, 2018 | 890,341 | $ | 36.17 | 6.4 years | $ | 6,774 | ||||||||||
Options granted | 10,000 | $ | 24.50 | $ | 15.23 | |||||||||||
Options exercised | (70,086 | ) | $ | 3.10 | ||||||||||||
Options cancelled | (134 | ) | $ | 61.05 | ||||||||||||
Options forfeited | (44,231 | ) | $ | 100.85 | ||||||||||||
Total outstanding at December 31, 2018 | 785,890 | $ | 35.33 | 5.4 years | $ | 572 | ||||||||||
Options exercisable and vested at December 31, 2018 | 474,905 | $ | 52.76 | 5 years | $ | 213 |
Years Ended December 31, | |||||
2018 | 2017 | 2016 | |||
Risk-free interest rates | 2.78% | 2.14% | 1.3% | ||
Expected lives (in years) | 5.0 | 5.0 | 5.5 | ||
Expected dividend yield | —% | —% | —% | ||
Expected volatility | 73.67% | 74.41% | 78.76% |
Number of Shares/Units | ||
Total nonvested at January 1, 2018 | 201,702 | |
Granted | 996,775 | |
Vested | (151,852 | ) |
Forfeited | (2,500 | ) |
Total nonvested at December 31, 2018 | 1,044,125 |
Risk-free interest rates | 3.0 | % |
Expected lives (in years) | 5.31 | |
Expected dividend yield | — | % |
Expected volatility | 82.9 | % |
Number of Shares | Weighted Average Exercise Price | Weighted Average Grant Date Fair Value | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value (000’s) | ||||||||||||
Total outstanding at January 1, 2016 | 216,532 | $ | 34.67 | |||||||||||||
SARs granted | 1,210,000 | $ | 3.10 | $ | 17.55 | |||||||||||
SARs cancelled | (10,399 | ) | $ | 34.20 | ||||||||||||
Total outstanding at December 31, 2016 | 1,416,133 | $ | 7.70 | |||||||||||||
SARs exercised | (713,330 | ) | $ | 3.10 | ||||||||||||
SARs cancelled | (136,939 | ) | $ | 7.70 | ||||||||||||
Total outstanding at December 31, 2017 | 565,864 | $ | 13.49 | |||||||||||||
SARs granted | 960,009 | $ | 8.85 | 8.85 | ||||||||||||
SARs exercised | (34,999 | ) | $ | 3.10 | ||||||||||||
SARs forfeited | (9,333 | ) | $ | 45.00 | ||||||||||||
Total outstanding at December 31, 2018 | 1,481,541 | $ | 10.53 | 8.1 years | $ | 718 | ||||||||||
SARs exercisable and vested at December 31, 2018 | — | $ | — |
Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Stock-based compensation expense | $ | 3,337 | $ | 2,552 | $ | 3,267 | |||||
Tax benefit related thereto | (698 | ) | (862 | ) | (1,168 | ) | |||||
Stock-based compensation expense, net of tax | $ | 2,639 | $ | 1,690 | $ | 2,099 |
Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Stock appreciation rights expense | $ | 822 | $ | 6,611 | 547 | ||||||
Tax benefit related thereto | (173 | ) | (2,314 | ) | (191 | ) | |||||
Stock appreciation rights expense, net of tax | $ | 649 | $ | 4,297 | $ | 356 |
Years Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Cash paid during the period for: | ||||||||||||
Interest | $ | 5,731 | $ | 14,181 | $ | 15,691 | ||||||
Income taxes | 3,260 | 7,030 | 4,474 | |||||||||
Non-cash items from investing and financing activities: | ||||||||||||
Purchase of computer equipment financed through capital leases | 3,297 | — | — | |||||||||
Leasehold improvement paid by landlord | — | — | 955 | |||||||||
Issuance of stock in bond exchange | — | — | 10,741 | |||||||||
Transfer of inventory to property, plant and equipment | — | — | 17,662 | (a) | ||||||||
Investment in multi-client data library financed through trade payables | 4,956 | 9,059 | — |
(a) | This transfer of $17.7 million of inventory to property, plant, equipment and seismic rental equipment in December 2016, relates to ocean bottom seismic equipment manufactured by the Company to be deployed in the acquisition of ocean bottom seismic data. |
Years Ending December 31, | |||
2019 | $ | 13,248 | |
2020 | 12,857 | ||
2021 | 11,075 | ||
2022 | 10,821 | ||
2023 | 9,205 | ||
Total | $ | 57,206 |
Three Months Ended | |||||||||||||||
March 31, 2018 | June 30, 2018 | September 30, 2018 | December 31, 2018 | ||||||||||||
Service revenues | $ | 25,086 | $ | 15,752 | $ | 37,105 | $ | 61,095 | |||||||
Product revenues | 8,422 | 8,991 | 10,095 | 13,499 | |||||||||||
Total net revenues | 33,508 | 24,743 | 47,200 | 74,594 | |||||||||||
Gross profit (loss) | 6,853 | (1,517 | ) | 16,475 | 37,809 | ||||||||||
Loss from operations | (12,640 | ) | (22,519 | ) | (2,452 | ) | (16,661 | ) | |||||||
Interest expense, net | (3,836 | ) | (2,911 | ) | (3,022 | ) | (3,203 | ) | |||||||
Other income (expense), net | (791 | ) | 84 | 91 | 180 | ||||||||||
Income tax expense (benefit) | 1,072 | 154 | 2,079 | (587 | ) | ||||||||||
Net income attributable to noncontrolling interests | (87 | ) | (366 | ) | (74 | ) | (246 | ) | |||||||
Net loss applicable to ION | $ | (18,426 | ) | $ | (25,866 | ) | $ | (7,536 | ) | $ | (19,343 | ) | |||
Net loss per share: | |||||||||||||||
Basic | $ | (1.44 | ) | $ | (1.86 | ) | $ | (0.54 | ) | $ | (1.38 | ) | |||
Diluted | $ | (1.44 | ) | $ | (1.86 | ) | $ | (0.54 | ) | $ | (1.38 | ) |
Three Months Ended | |||||||||||||||
March 31, 2017 | June 30, 2017 | September 30, 2017 | December 31, 2017 | ||||||||||||
Service revenues | $ | 23,828 | $ | 34,454 | $ | 52,615 | $ | 48,513 | |||||||
Product revenues | 8,728 | 11,547 | 8,480 | 9,389 | |||||||||||
Total net revenues | 32,556 | 46,001 | 61,095 | 57,902 | |||||||||||
Gross profit | 6,101 | 15,618 | 30,109 | 23,811 | |||||||||||
Income (loss) from operations | (13,912 | ) | (3,572 | ) | 9,936 | (1,151 | ) | ||||||||
Interest expense, net | (4,464 | ) | (4,241 | ) | (3,959 | ) | (4,045 | ) | |||||||
Other income (expense), net | (5,068 | ) | 192 | 722 | 209 | ||||||||||
Income tax expense (benefit) | (418 | ) | 2,402 | 1,686 | (3,646 | ) | |||||||||
Net income attributable to noncontrolling interests | (316 | ) | (418 | ) | (78 | ) | (53 | ) | |||||||
Net income (loss) applicable to ION | $ | (23,342 | ) | $ | (10,441 | ) | $ | 4,935 | $ | (1,394 | ) | ||||
Net income (loss) per share: | |||||||||||||||
Basic | $ | (1.98 | ) | $ | (0.88 | ) | $ | 0.42 | $ | (0.12 | ) | ||||
Diluted | $ | (1.98 | ) | $ | (0.88 | ) | $ | 0.41 | $ | (0.12 | ) |
• | ION Geophysical Corporation and the Guarantors (in each case, reflecting investments in subsidiaries utilizing the equity method of accounting). |
• | All other subsidiaries of ION Geophysical Corporation that are non-guarantors. |
• | The consolidating adjustments necessary to present ION Geophysical Corporation’s results on a consolidated basis. |
December 31, 2018 | |||||||||||||||||||
Balance Sheet | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | ||||||||||||||
(In thousands) | |||||||||||||||||||
ASSETS | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 13,782 | $ | 47 | $ | 19,722 | $ | — | $ | 33,551 | |||||||||
Accounts receivable, net | 8 | 17,349 | 8,771 | — | 26,128 | ||||||||||||||
Unbilled receivables | — | 12,697 | 31,335 | — | 44,032 | ||||||||||||||
Inventories | — | 8,721 | 5,409 | — | 14,130 | ||||||||||||||
Prepaid expenses and other current assets | 3,891 | 1,325 | 2,566 | — | 7,782 | ||||||||||||||
Total current assets | 17,681 | 40,139 | 67,803 | — | 125,623 | ||||||||||||||
Deferred income tax asset | 805 | 6,261 | 125 | — | 7,191 | ||||||||||||||
Property, plant, equipment and seismic rental equipment, net | 489 | 8,922 | 3,630 | — | 13,041 | ||||||||||||||
Multi-client data library, net | — | 70,380 | 3,164 | — | 73,544 | ||||||||||||||
Investment in subsidiaries | 836,002 | 247,359 | — | (1,083,361 | ) | — | |||||||||||||
Goodwill | — | — | 22,915 | — | 22,915 | ||||||||||||||
Intercompany receivables | — | 305,623 | 66,021 | (371,644 | ) | — | |||||||||||||
Other assets | 1,723 | 643 | 69 | — | 2,435 | ||||||||||||||
Total assets | $ | 856,700 | $ | 679,327 | $ | 163,727 | $ | (1,455,005 | ) | $ | 244,749 | ||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Current maturities of long-term debt | $ | 1,159 | $ | 1,069 | $ | — | $ | — | $ | 2,228 | |||||||||
Accounts payable | 2,407 | 29,602 | 2,904 | — | 34,913 | ||||||||||||||
Accrued expenses | 7,011 | 10,036 | 14,364 | — | 31,411 | ||||||||||||||
Accrued multi-client data library royalties | — | 29,040 | 216 | — | 29,256 | ||||||||||||||
Deferred revenue | — | 6,515 | 1,195 | — | 7,710 | ||||||||||||||
Total current liabilities | 10,577 | 76,262 | 18,679 | — | 105,518 | ||||||||||||||
Long-term debt, net of current maturities | 117,644 | 1,869 | — | — | 119,513 | ||||||||||||||
Intercompany payables | 721,817 | — | — | (721,817 | ) | — | |||||||||||||
Other long-term liabilities | 430 | 5,698 | 5,766 | — | 11,894 | ||||||||||||||
Total liabilities | 850,468 | 83,829 | 24,445 | (721,817 | ) | 236,925 | |||||||||||||
Equity: | |||||||||||||||||||
Common stock | 140 | 290,460 | 47,776 | (338,236 | ) | 140 | |||||||||||||
Additional paid-in capital | 952,626 | 180,700 | 203,908 | (384,608 | ) | 952,626 | |||||||||||||
Accumulated earnings (deficit) | (926,092 | ) | 390,691 | (12,475 | ) | (378,216 | ) | (926,092 | ) | ||||||||||
Accumulated other comprehensive income (loss) | (20,442 | ) | 4,324 | (22,023 | ) | 17,699 | (20,442 | ) | |||||||||||
Due from ION Geophysical Corporation | — | (270,677 | ) | (79,496 | ) | 350,173 | — | ||||||||||||
Total stockholders’ equity | 6,232 | 595,498 | 137,690 | (733,188 | ) | 6,232 | |||||||||||||
Noncontrolling interests | — | — | 1,592 | — | 1,592 | ||||||||||||||
Total equity | 6,232 | 595,498 | 139,282 | (733,188 | ) | 7,824 | |||||||||||||
Total liabilities and equity | $ | 856,700 | $ | 679,327 | $ | 163,727 | $ | (1,455,005 | ) | $ | 244,749 |
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 | 4,530 | 686 | — | 7,643 | ||||||||||||||
Total current assets | 41,821 | 60,262 | 28,906 | — | 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 | 693,679 | 321,934 | — | (1,015,613 | ) | — | |||||||||||||
Goodwill | — | — | 24,089 | — | 24,089 | ||||||||||||||
Intercompany receivables | — | 162,017 | 60,394 | (222,411 | ) | — | |||||||||||||
Other assets | 686 | 1,811 | 288 | — | 2,785 | ||||||||||||||
Total assets | $ | 737,961 | $ | 634,972 | $ | 166,160 | $ | (1,238,024 | ) | $ | 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 | 537,417 | — | — | (537,417 | ) | — | |||||||||||||
Other long-term liabilities | 454 | 6,084 | 7,388 | — | 13,926 | ||||||||||||||
Total liabilities | 708,394 | 78,357 | 20,929 | (537,417 | ) | 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 | ) | 317,324 | (9,247 | ) | (308,077 | ) | (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 | 556,615 | 143,992 | (700,607 | ) | 29,567 | |||||||||||||
Noncontrolling interests | — | — | 1,239 | — | 1,239 | ||||||||||||||
Total equity | 29,567 | 556,615 | 145,231 | (700,607 | ) | 30,806 | |||||||||||||
Total liabilities and equity | $ | 737,961 | $ | 634,972 | $ | 166,160 | $ | (1,238,024 | ) | $ | 301,069 |
Year Ended December 31, 2018 | |||||||||||||||||||
Income Statement | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | ||||||||||||||
(In thousands) | |||||||||||||||||||
Total net revenues | $ | — | $ | 96,649 | $ | 83,396 | $ | — | $ | 180,045 | |||||||||
Cost of goods sold | — | 85,186 | 35,239 | — | 120,425 | ||||||||||||||
Gross profit | — | 11,463 | 48,157 | — | 59,620 | ||||||||||||||
Total operating expenses | 32,888 | 29,235 | 51,769 | — | 113,892 | ||||||||||||||
Loss from operations | (32,888 | ) | (17,772 | ) | (3,612 | ) | — | (54,272 | ) | ||||||||||
Interest expense, net | (13,010 | ) | (136 | ) | 174 | — | (12,972 | ) | |||||||||||
Intercompany interest, net | 1,124 | (12,137 | ) | 11,013 | — | — | |||||||||||||
Equity in earnings (losses) of investments | (26,446 | ) | 37,219 | — | (10,773 | ) | — | ||||||||||||
Other income (expense) | (196 | ) | 116 | (356 | ) | — | (436 | ) | |||||||||||
Income (loss) before income taxes | (71,416 | ) | 7,290 | 7,219 | (10,773 | ) | (67,680 | ) | |||||||||||
Income tax expense (benefit) | (245 | ) | (6,711 | ) | 9,674 | — | 2,718 | ||||||||||||
Net income (loss) | (71,171 | ) | 14,001 | (2,455 | ) | (10,773 | ) | (70,398 | ) | ||||||||||
Net income attributable to noncontrolling interests | — | — | (773 | ) | — | (773 | ) | ||||||||||||
Net income (loss) attributable to ION | $ | (71,171 | ) | $ | 14,001 | $ | (3,228 | ) | $ | (10,773 | ) | $ | (71,171 | ) | |||||
Comprehensive net income (loss) | $ | (72,734 | ) | $ | 13,953 | $ | (4,797 | ) | $ | (8,383 | ) | $ | (71,961 | ) | |||||
Comprehensive income attributable to noncontrolling interest | — | — | (773 | ) | — | (773 | ) | ||||||||||||
Comprehensive net income (loss) attributable to ION | $ | (72,734 | ) | $ | 13,953 | $ | (5,570 | ) | $ | (8,383 | ) | $ | (72,734 | ) | |||||
Year Ended December 31, 2017 | |||||||||||||||||||
Income Statement | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | ||||||||||||||
(In thousands) | |||||||||||||||||||
Total net revenues | $ | — | $ | 148,590 | $ | 48,964 | $ | — | $ | 197,554 | |||||||||
Cost of goods sold | — | 90,754 | 31,161 | — | 121,915 | ||||||||||||||
Gross profit | — | 57,836 | 17,803 | — | 75,639 | ||||||||||||||
Total operating expenses | 39,000 | 28,020 | 17,318 | — | 84,338 | ||||||||||||||
Income (loss) from operations | (39,000 | ) | 29,816 | 485 | — | (8,699 | ) | ||||||||||||
Interest expense, net | (16,729 | ) | (107 | ) | 127 | — | (16,709 | ) | |||||||||||
Intercompany interest, net | 1,084 | (6,613 | ) | 5,529 | — | — | |||||||||||||
Equity in earnings (losses) of investments | 27,696 | 67,290 | — | (94,986 | ) | — | |||||||||||||
Other income (expense) | (4,610 | ) | (407 | ) | 1,072 | — | (3,945 | ) | |||||||||||
Income (loss) before income taxes | (31,559 | ) | 89,979 | 7,213 | (94,986 | ) | (29,353 | ) | |||||||||||
Income tax expense (benefit) | (1,317 | ) | (1,427 | ) | 2,768 | — | 24 | ||||||||||||
Net income (loss) | (30,242 | ) | 91,406 | 4,445 | (94,986 | ) | (29,377 | ) | |||||||||||
Net income attributable to noncontrolling interests | — | — | (865 | ) | — | (865 | ) | ||||||||||||
Net income (loss) attributable to ION | $ | (30,242 | ) | $ | 91,406 | $ | 3,580 | $ | (94,986 | ) | $ | (30,242 | ) | ||||||
Comprehensive net income (loss) | $ | (27,373 | ) | $ | 91,358 | $ | 6,550 | $ | (97,043 | ) | $ | (26,508 | ) | ||||||
Comprehensive income attributable to noncontrolling interest | — | — | (865 | ) | — | (865 | ) | ||||||||||||
Comprehensive net income (loss) attributable to ION | $ | (27,373 | ) | $ | 91,358 | $ | 5,685 | $ | (97,043 | ) | $ | (27,373 | ) | ||||||
Year Ended December 31, 2016 | |||||||||||||||||||
Income Statement | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | ||||||||||||||
(In thousands) | |||||||||||||||||||
Total net revenues | $ | — | $ | 91,465 | $ | 81,343 | $ | — | $ | 172,808 | |||||||||
Cost of goods sold | — | 87,660 | 49,116 | — | 136,776 | ||||||||||||||
Gross profit | — | 3,805 | 32,227 | — | 36,032 | ||||||||||||||
Total operating expenses | 31,438 | 27,279 | 20,486 | — | 79,203 | ||||||||||||||
Income (loss) from operations | (31,438 | ) | (23,474 | ) | 11,741 | — | (43,171 | ) | |||||||||||
Interest expense, net | (18,406 | ) | (173 | ) | 94 | — | (18,485 | ) | |||||||||||
Intercompany interest, net | 978 | (4,397 | ) | 3,419 | — | — | |||||||||||||
Equity in earnings (losses) of investments | (19,756 | ) | 23,368 | — | (3,612 | ) | — | ||||||||||||
Other income (expense) | 3,528 | 723 | (2,901 | ) | — | 1,350 | |||||||||||||
Income (loss) before income taxes | (65,094 | ) | (3,953 | ) | 12,353 | (3,612 | ) | (60,306 | ) | ||||||||||
Income tax expense | 54 | 1,337 | 3,030 | — | 4,421 | ||||||||||||||
Net income (loss) | (65,148 | ) | (5,290 | ) | 9,323 | (3,612 | ) | (64,727 | ) | ||||||||||
Net income attributable to noncontrolling interests | — | — | (421 | ) | — | (421 | ) | ||||||||||||
Net income (loss) attributable to ION | $ | (65,148 | ) | $ | (5,290 | ) | $ | 8,902 | $ | (3,612 | ) | $ | (65,148 | ) | |||||
Comprehensive net income (loss) | $ | (72,331 | ) | $ | (5,290 | ) | $ | 1,719 | $ | 4,208 | $ | (71,694 | ) | ||||||
Comprehensive income attributable to noncontrolling interest | — | — | (421 | ) | — | (421 | ) | ||||||||||||
Comprehensive net income (loss) attributable to ION | $ | (72,331 | ) | $ | (5,290 | ) | $ | 1,298 | $ | 4,208 | $ | (72,115 | ) | ||||||
Year Ended December 31, 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 | $ | (37,659 | ) | $ | 39,407 | $ | 5,350 | $ | 7,098 | ||||||
Cash flows from investing activities: | |||||||||||||||
Investment in multi-client data library | — | (25,307 | ) | (2,969 | ) | (28,276 | ) | ||||||||
Purchase of property, plant, equipment and seismic rental equipment | (392 | ) | (959 | ) | (163 | ) | (1,514 | ) | |||||||
Net cash used in investing activities | (392 | ) | (26,266 | ) | (3,132 | ) | (29,790 | ) | |||||||
Cash flows from financing activities: | |||||||||||||||
Repayments under revolving line of credit | (10,000 | ) | — | — | (10,000 | ) | |||||||||
Payments on notes payable and long-term debt | (30,169 | ) | (638 | ) | — | (30,807 | ) | ||||||||
Cost associated with issuance of debt | (1,247 | ) | — | — | (1,247 | ) | |||||||||
Intercompany lending | 7,983 | (12,522 | ) | 4,539 | — | ||||||||||
Proceeds from employee stock purchases and exercise of stock options | 214 | — | — | 214 | |||||||||||
Net proceeds from issuance of stocks | 46,999 | — | — | 46,999 | |||||||||||
Dividend payment to noncontrolling interest | (200 | ) | — | — | (200 | ) | |||||||||
Other financing activities | (1,151 | ) | — | — | (1,151 | ) | |||||||||
Net cash provided by (used in) financing activities | 12,429 | (13,160 | ) | 4,539 | 3,808 | ||||||||||
Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash | — | — | 319 | 319 | |||||||||||
Net increase (decrease) in cash and cash equivalents | (25,622 | ) | (19 | ) | 7,076 | (18,565 | ) | ||||||||
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 | $ | 14,085 | $ | 47 | $ | 19,722 | $ | 33,854 |
December 31, 2018 | |||||||||||||||
ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Total Consolidated | ||||||||||||
(In thousands) | |||||||||||||||
Cash and cash equivalents | $ | 13,782 | $ | 47 | $ | 19,722 | $ | 33,551 | |||||||
Restricted cash included in other long-term assets | 303 | — | — | 303 | |||||||||||
Total cash, cash equivalents, and restricted cash shown in statements of cash flows | $ | 14,085 | $ | 47 | $ | 19,722 | $ | 33,854 |
Year Ended December 31, 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 | $ | (22,315 | ) | $ | 73,154 | $ | (23,227 | ) | $ | 27,612 | |||||
Cash flows from investing activities: | |||||||||||||||
Investment in multi-client data library | — | (23,710 | ) | — | (23,710 | ) | |||||||||
Purchase of property, plant, equipment and seismic rental equipment | (165 | ) | (817 | ) | (81 | ) | (1,063 | ) | |||||||
Net cash used in investing activities | (165 | ) | (24,527 | ) | (81 | ) | (24,773 | ) | |||||||
Cash flows from financing activities: | |||||||||||||||
Payments on notes payable and long-term debt | (1,591 | ) | (3,167 | ) | (58 | ) | (4,816 | ) | |||||||
Cost associated with issuance of debt | (53 | ) | — | — | (53 | ) | |||||||||
Intercompany lending | 38,732 | (45,609 | ) | 6,877 | — | ||||||||||
Proceeds from employee stock purchases and exercise of stock options | 1,619 | — | — | 1,619 | |||||||||||
Dividend payment to noncontrolling interest | (100 | ) | — | — | (100 | ) | |||||||||
Other financing activities | (243 | ) | — | — | (243 | ) | |||||||||
Net cash provided by (used in) financing activities | 38,364 | (48,776 | ) | 6,819 | (3,593 | ) | |||||||||
Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash | — | — | (260 | ) | (260 | ) | |||||||||
Net increase (decrease) in cash and cash equivalents | 15,884 | (149 | ) | (16,749 | ) | (1,014 | ) | ||||||||
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 | $ | 39,707 | $ | 66 | $ | 12,646 | $ | 52,419 |
December 31, 2017 | |||||||||||||||
ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Total Consolidated | ||||||||||||
(In thousands) | |||||||||||||||
Cash and cash equivalents | $ | 39,344 | $ | 66 | $ | 12,646 | $ | 52,056 | |||||||
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 statements of cash flows | $ | 39,707 | $ | 66 | $ | 12,646 | $ | 52,419 |
Year Ended December 31, 2016 | |||||||||||||||
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 | $ | (30,732 | ) | $ | 53,107 | $ | (21,382 | ) | $ | 993 | |||||
Cash flows from investing activities: | |||||||||||||||
Investment in multi-client data library | — | (14,884 | ) | — | (14,884 | ) | |||||||||
Purchase of property, plant and equipment | (73 | ) | (313 | ) | (1,072 | ) | (1,458 | ) | |||||||
Proceeds from sale of a cost-method investment | 2,698 | — | — | 2,698 | |||||||||||
Net cash provided by (used in) investing activities | 2,625 | (15,197 | ) | (1,072 | ) | (13,644 | ) | ||||||||
Cash flows from financing activities: | |||||||||||||||
Payments under revolving line of credit | (5,000 | ) | — | — | (5,000 | ) | |||||||||
Borrowings under revolving line of credit | 15,000 | — | — | 15,000 | |||||||||||
Payments on notes payable and long-term debt | (17,070 | ) | (6,316 | ) | (248 | ) | (23,634 | ) | |||||||
Cost associated with issuance of debt | (6,744 | ) | — | — | (6,744 | ) | |||||||||
Repurchase of common stock | (964 | ) | — | — | (964 | ) | |||||||||
Intercompany lending | 31,867 | (34,771 | ) | 2,904 | — | ||||||||||
Other financing activities | (252 | ) | — | — | (252 | ) | |||||||||
Net cash provided by (used in) financing activities | 16,837 | (41,087 | ) | 2,656 | (21,594 | ) | |||||||||
Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash | — | — | 1,386 | 1,386 | |||||||||||
Net decrease in cash and cash equivalents | (11,270 | ) | (3,177 | ) | (18,412 | ) | (32,859 | ) | |||||||
Cash, cash equivalents and restricted cash at beginning of period | 35,093 | 3,392 | 47,807 | 86,292 | |||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 23,823 | $ | 215 | $ | 29,395 | $ | 53,433 |
December 31, 2016 | |||||||||||||||
ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Total Consolidated | ||||||||||||
(In thousands) | |||||||||||||||
Cash and cash equivalents | $ | 23,042 | $ | 215 | $ | 29,395 | $ | 52,652 | |||||||
Restricted cash included in prepaid expenses and other current assets | 260 | — | — | 260 | |||||||||||
Restricted cash included in other long-term assets | 521 | — | — | 521 | |||||||||||
Total cash, cash equivalents, and restricted cash shown in statements of cash flows | $ | 23,823 | $ | 215 | $ | 29,395 | $ | 53,433 |
Year Ended December 31, 2016 | Balance at Beginning of Year | Charged (Credited) to Costs and Expenses | Deductions | Balance at End of Year | |||||||||||
(In thousands) | |||||||||||||||
Allowances for doubtful accounts | $ | 4,919 | $ | 1,834 | $ | (5,310 | ) | $ | 1,443 | ||||||
Allowances for doubtful notes receivable | 4,000 | — | — | 4,000 | |||||||||||
Valuation allowance on deferred tax assets | 194,255 | 23,334 | — | 217,589 | |||||||||||
Excess and obsolete inventory | 24,475 | 429 | (9,855 | ) | 15,049 |
Year Ended December 31, 2017 | Balance at Beginning of Year | Charged (Credited) to Costs and Expenses | Deductions | Balance at End of Year | |||||||||||
(In thousands) | |||||||||||||||
Allowances for doubtful accounts | $ | 1,443 | $ | 949 | $ | (1,820 | ) | $ | 572 | ||||||
Allowances for doubtful notes receivable | 4,000 | — | — | 4,000 | |||||||||||
Valuation allowance on deferred tax assets | 217,589 | (64,126 | ) | — | 153,463 | ||||||||||
Excess and obsolete inventory | 15,049 | 398 | (408 | ) | 15,039 |
Year Ended December 31, 2018 | Balance at Beginning of Year | Charged (Credited) to Costs and Expenses | Deductions | Balance at End of Year | |||||||||||
(In thousands) | |||||||||||||||
Allowances for doubtful accounts | $ | 572 | $ | 222 | $ | (364 | ) | $ | 430 | ||||||
Allowances for doubtful notes receivable | 4,000 | — | — | 4,000 | |||||||||||
Valuation allowance on deferred tax assets | 153,463 | 7,042 | — | 160,505 | |||||||||||
Excess and obsolete inventory | 15,039 | 665 | (680 | ) | 15,024 |
1.2. | Definitions. The following terms shall have the meanings set forth below: |
(b) | Board. The Board of Directors of the Company. |
(d) | CEO. The Chief Executive Officer of the Company. |
(k) | Director. Any individual who is a member of the Board. |
(o) | Exchange Act. The Securities Exchange Act of 1934, as amended. |
(s) | Non-Employee Director. A Director who is not an Employee. |
(z) | Share. A share of Common Stock of the Company. |
1.3. | Plan Administration |
2.1. | Stock Appreciation Rights. |
4.3. | Change in Stock and Adjustments. |
4.4. | Termination of Employment, Death, Disability and Retirement. |
4.5. | Change in Control. |
5.8. | Miscellaneous Provisions. |
2. | Grantee. The Grantee of the SAR award is [Grantee Name] (the “Grantee”). |
3. | Award. The Company grants the Grantee this award of SARs in relation to |
4. | Exercise Price. The exercise price of the SAR award is $8.85 per Covered Share. |
5. | Grant Date. The “Grant Date” of the SAR award is December 1, 2018. |
Vesting Date | Time Vested Percentage |
December 1, 2019 | 33.33% |
December 1, 2020 | 66.66% |
December 1, 2021 | 100% |
VWAP Amount | Performance Vested Percentage |
$17.50 | 33.33% |
$22.50 | 66.66% |
$27.50 | 100% |
7. | Exercise. |
(d) | If, prior to the Expiration Date, the closing price per Share meets or exceeds |
1. | All determinations under Section 21 of this Agreement and this Exhibit A will be made by an accounting firm or law firm that is selected for this purpose by the Company’s Chief Executive Officer prior to a Change in Control (“280G Firm”). All fees and expenses of the 280G Firm shall be borne by the Company. The Company will direct the 280G Firm to submit any determination it makes under Section 21 of this Agreement and this Exhibit A and detailed supporting calculations to both the Participant and the Company as soon as reasonably practicable. |
2. | If the 280G Firm determines that reductions are required under Section 21 of this Agreement, the 280G Firm shall also determine which Payments shall be reduced, with the Payments that otherwise would be made last in time reduced first, to the extent necessary so that no portion thereof shall be subject to the excise tax imposed by Section 4999 of the Code, and the Company shall pay such reduced amount to the Participant. |
3. | As a result of the uncertainty in the application of Section 280G at the time that the 280G Firm makes its determinations under this Section, it is possible that amounts will have been paid or distributed to the Participant that should not have been paid or distributed (collectively, the “Overpayments”), or that additional amounts should be paid or distributed to the Participant (collectively, the “Underpayments”). If the 280G Firm determines, based on either the assertion of a deficiency by the Internal Revenue Service against the Company or the Participant, which assertion the 280G Firm believes has a high probability of success or controlling precedent or substantial authority, that an Overpayment has been made, the Participant must repay to the Company, without interest; provided, however, that no loan will be deemed to have been made and no amount will be payable by the Participant to the Company unless, and then only to the extent that, the deemed loan and payment would either reduce the amount on which the Participant is subject to tax under Section 4999 of the Code or generate a refund of tax imposed under Section 4999 of the Code. If the 280G Firm determines, based upon controlling precedent or substantial authority, that an Underpayment has occurred, the 280G Firm will notify the Participant and the Company of that determination and the amount of that Underpayment will be paid to the Participant promptly by the Company. |
4. | The Participant will provide the 280G Firm access to, and copies of, any books, records, and documents in the Participant’s possession as reasonably requested by the 280G Firm, and otherwise cooperate with the 280G Firm in connection with the preparation and issuance of the determinations and calculations contemplated by Section 21 of this Agreement and this Exhibit A. |
1. | Grant of Restricted Stock Shares. A grant of [NUMBER] shares of restricted Common Stock (the “Restricted Stock”) to [GRANTEE] (the “Participant”) under this Restricted Stock Agreement (this “Agreement”) by ION Geophysical Corporation (the "Company") was made as of December 1, 2018 (the “Grant Date”), subject and pursuant to the terms of the Third Amended and Restated 2013 Long Term Incentive Plan (the "Plan"). The Restricted Stock and its release are subject in all respects to the terms as set forth in the Plan, a copy of which is available from the General Counsel of ION Geophysical Corporation, and to any rules promulgated pursuant to the Plan by the Committee. Capitalized terms not otherwise defined herein are as defined in the Plan. The effectiveness of such grant is expressly conditioned upon Participant executing and returning this Agreement to the Company’s General Counsel. |
2. | Dividends and Voting Rights. The Participant shall not be entitled to receive any dividends paid with respect to the Restricted Stock that become payable except as to any Restricted Stock that has vested as set forth below in this Agreement. From the Grant Date, the Participant shall be entitled to vote the shares of Restricted Stock, even if it they have not vested, to the same extent as would have been applicable to the Participant if the Participant was then vested in the shares of Restricted Stock; provided, however, that the Participant shall not be entitled to vote the shares of Restricted Stock with respect to record dates for such voting rights arising prior to the Grant Date, or with respect to record dates occurring on or after the date, if any, on which the Participant has forfeited such shares of Restricted Stock. |
3. | Deposit of Restricted Stock. Each certificate issued in respect of shares of Restricted Stock granted under this Agreement shall be registered in the name of the Participant and shall be deposited for custody by the Company, as directed by the Committee or in the Company’s discretion, until all restrictions on such shares of Restricted Stock have lapsed. |
4. | Early Vesting on Certain Events; Transfer and Forfeiture of Restricted Stock. In addition to (and notwithstanding anything to the contrary in) the vesting criteria set forth in paragraph 5 below, the Participant shall become fully vested in the shares of Restricted Stock awarded hereunder (to the extent not already vested) and shall own such shares as unrestricted Common Stock, free of all restrictions otherwise imposed by this Agreement, as follows: |
(a) | The Participant shall become fully vested in all of the shares of Restricted Stock as of the Participant’s Date of Termination if the Participant’s Date of Termination occurs by reason of the Participant’s death or Disability. |
(b) | The Participant shall become fully vested in the shares of Restricted Stock on the day immediately preceding a Change in Control. |
5. | Vesting. The Participant’s Restricted Stock shall become vested, if at all, only upon the satisfaction of both the Time Measure and the Performance Measure, each as outlined below. |
(a) | Time Measure. The “Time Measure” shall be satisfied with respect to an award of Restricted Stock only if the Participant is an Employee, Director, or Consultant based on continuous service with the Company between the Grant Date and the Vesting Date provided in the following schedule: |
Vesting Date | Time Vested Percentage |
December 1, 2019 | 33.33% |
December 1, 2020 | 66.66% |
December 1, 2021 | 100% |
(b) | Performance Measure. The Performance Measure shall be satisfied, if at all, based on the trading price for the Company’s Common Stock following the Grant Date. For this purpose, the Company shall measure the volume weighted average price per Share during the period between the Grant Date and December 1, 2021. The “Performance Measure” requires, as to each VWAP Amount listed below, that, during the period commencing on the Grant Date and concluding on December 1, 2021, the volume weighted average price per Share, as determined by the Company based on the NYSE reported closing Share price, over a twenty (20) consecutive trading day period, meets or exceeds the VWAP Amount in the table below. If (and only if) such Performance Measure is satisfied as to a particular VWAP Amount during such three (3) year time period, then the designated portion of the Performance Measure shall be satisfied based on the following schedule: |
VWAP Amount | Performance Vested Percentage |
$17.50 | 33.33% |
$22.50 | 66.66% |
$27.50 | 100% |
(c) | Calculation of Vested Percentage. The portion of the Participant’s Restricted Stock which is vested at any time shall be equal to (i) the total number of shares of Restricted Stock awarded in paragraph 1 above, multiplied by (ii) the lesser of (x) the Time Vested Percentage, or (y) the Performance Vested Percentage. No portion of the Restricted Stock will be vested prior to the date the vested percentage for each of the Time Measure and the Performance Measure is at least 33.33%. |
6. | Heirs and Successors. This Agreement shall be binding upon, and inure to the benefit of, the Company and its successors and assigns, and upon any person acquiring, whether by merger, consolidation, purchase of assets or otherwise, all or substantially all of the Company’s assets and business. If any rights of the Participant or benefits distributable to the Participant under this Agreement have not been exercised or distributed, respectively, at the time of the Participant’s death, such rights shall be exercisable by the legal representative of the estate of the Participant. |
7. | Administration. The authority to manage and control the operation and administration of this Agreement shall be vested in the Committee, and the Committee shall have all powers with respect to this Agreement as it has with respect to the Plan. Any interpretation of this Agreement by the Committee and any decision made by it with respect to this Agreement is final and binding. |
8. | Plan Governs. Notwithstanding anything contained in this Agreement to the contrary, the terms of this Agreement shall be subject to the terms of the Plan, a copy of which may be obtained by the Participant from the office of the General Counsel of the Company. |
9. | Amendment. This Agreement may only be amended by written agreement of the Participant and the Company. |
10. | Tax Requirements. The Company shall have the right to deduct any federal, state, or local taxes required by law to be withheld with respect to the award of Restricted Stock made hereunder. The Participant shall be required to pay the Company the amount of any taxes which the Company is required to withhold with respect to such shares of Restricted Stock. |
11. | Legend. Each certificate representing shares of Restricted Stock issued to the Participant shall bear a legend deemed by the Company to constitute an appropriate notice of the provisions hereof (any such certificate not having such legend shall be surrendered by the Participant upon demand by the Company and so endorsed). |
12. | Not an Employment Contract. No award of Restricted Stock shall confer on the Participant any right with respect to continuance of employment or other service with the Company or any Subsidiary, nor will it interfere in any way with any right the Company or any Subsidiary would otherwise have to terminate or modify the terms of such Participant’s employment or other service at any time. |
13. | Notices. Any written notices provided for in this Agreement or the Plan shall be in writing and shall be deemed sufficiently given if either sent by nationally recognized overnight courier, or by postage paid first class mail. Notices sent by U.S. mail shall be deemed received on the date of actual receipt. Notices sent by nationally recognized overnight courier shall be deemed received upon the first day that the courier attempts delivery at the recipient’s address. Notices shall be directed, if to the Participant, at the Participant’s address indicated by the Company’s records, and if to the Company, at the Company’s principal executive office, to the attention of the General Counsel. |
14. | Applicable Law; Dispute Resolution. Except to the extent preempted by federal or Delaware law, this Agreement shall be governed by and construed in accordance with the laws of the State of Texas, excluding any conflict-of-law rules or principles that would result in the laws of another state being applied. TO THE MAXIMUM EXTENT PERMITTED BY LAW, COMPANY AND PARTICIPANT EACH WAIVES ANY RIGHT TO TRIAL BY JURY OR TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, BETWEEN COMPANY AND PARTICIPANT ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE MATTERS RELATED HERETO. The prevailing party in any litigation or other proceeding to enforce the terms of this Agreement shall be entitled to recoup its reasonable attorneys’ fees and costs from the non-prevailing party. To the fullest extent permitted by law, the parties agree that any suit or proceeding arising out of or relating to this Agreement shall be brought in court in Harris County, Texas, to the exclusion of any other forum or venue. |
Subsidiary | Jurisdiction |
Concept Systems Holdings Limited | Scotland |
Concept Systems Limited | Scotland |
GMG/AXIS, Inc. | Delaware |
GX Geoscience Corporation S. de R.L. de C.V. | Mexico |
GX Technology Australia Pty Ltd. | Australia |
GX Technology Canada, Ltd. | Canada |
GX Technology Corporation | Texas |
GX Technology EAME, Limited | UK |
GX Technology Imaging Services Limited | Egypt |
GX Technology Poland Sp. Z o.o. | Poland |
GX Technology Processamento de Dados Ltda. | Brazil |
GX Technology Sismica Brasil Ltda. | Brazil |
GX Technology Trinidad, Ltd. | West Indies |
I/O Cayman Islands, Ltd. | Cayman Islands |
I/O International Holdings, Ltd. | Cayman Islands |
I/O International, Ltd. | Cayman Islands |
I/O Luxembourg S.à r.l. | Luxembourg |
I/O Marine Systems Limited | UK |
I/O Marine Systems, Inc. | Louisiana |
I/O U.K. Holdings Limited | Scotland |
“Inco” Industrial Components ‘s-Gravenhage B.V. | Netherlands |
ION China Holdings, Limited | Hong Kong |
ION E&P Advisors, Inc. | Delaware |
ION EPA Holdings, Inc. | Delaware |
ION Exploration Products (U.S.A.), Inc. | Delaware |
ION Geophysical CIS LLC | Russia |
ION Geophysical Sdn. Bhd. | Malaysia |
ION HPC Services, Inc. | Delaware |
ION International Holdings L.P. | Bermuda |
ION International S.à r.l. | Luxembourg |
IPOP Management, Inc. | Delaware |
OceanGeo B.V. | Netherlands |
OceanGeo Inc. | British Virgin Islands |
OceanGeo Ltd. | UK |
Oceangeo Tecnologia de Exploração de Reservatórios do Brasil EIRELI | Brazil |
Sensor Nederland B.V. | Netherlands |
1. | Registration Statement (Form S-8 No. 333-60950) pertaining to the Input/Output, Inc. Non‑Employee Directors’ Retainer Plan, |
2. | Registration Statement (Form S-8 No. 333-112677) pertaining to the Input/Output, Inc. 2003 Employee Stock Option Plan, |
3. | Registration Statement (Form S-8 No. 333-125655) pertaining to the Input/Output, Inc. 2004 Long‑Term Incentive Plan, |
4. | Registration Statement (Form S-8 No. 333-135775) pertaining to the Input/Output, Inc. Second Amended and Restated Input/Output, Inc. 2004 Long-Term Incentive Plan, |
5. | Registration Statement (Form S-3 No. 333-112263) of Input/Output, Inc., |
6. | Registration Statement (Form S-3 No. 333-123632) of Input/Output, Inc., |
7. | Registration Statement (Form S-8 No. 333-145274) pertaining to the Third Amended and Restated Input/Output, Inc. 2004 Long-Term Incentive Plan, |
8. | Registration Statement (Form S-8 No. 333-155378) pertaining to the Fourth Amended and Restated 2004 Long-Term Incentive Plan and the ARAM Systems Employee Inducement Stock Options Program, |
9. | Registration Statement (Form S-3 No. 333-159898) of ION Geophysical Corporation, |
10. | Registration Statement (Form S-8 No. 333-167943) pertaining to the Fifth Amended and Restated 2004 Long-Term Incentive Plan and the ION Geophysical Corporation Employee Stock Purchase Plan, |
11. | Registration Statement (Form S-3 No. 333-166200) of ION Geophysical Corporation, |
12. | Registration Statement (Form S-8 No. 333-176046) pertaining to the Sixth Amended and Restated 2004 Long-Term Incentive Plan, |
13. | Registration Statement (Form S-8 No. 333-190474) pertaining to the 2013 Long-Term Incentive Plan, |
14. | Registration Statement (Form S-4 No. 333-194110) of ION Geophysical Corporation, |
15. | Registration Statement (Form S-8 No. 333-209707) pertaining to the 2013 Long-Term Incentive Plan, |
16. | Registration Statement (Form S-3 No. 333-213769) of ION Geophysical Corporation, |
17. | Registration Statement (Form S-3 No. 333-223053) of ION Geophysical Corporation, and |
18. | Registration Statement (Form S-8 No. 333-229311) pertaining to the Third Amended and Restated 2013 Long-Term Incentive Plan. |
1. | I have reviewed this Annual Report on Form 10-K for the period ended December 31, 2018, of ION Geophysical Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: February 7, 2019 | /s/ R. Brian Hanson | |
R. Brian Hanson | ||
President and Chief Executive Officer |
1. | I have reviewed this Annual Report on Form 10-K for the period ended December 31, 2018, of ION Geophysical Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: February 7, 2019 | /s/ Steven A. Bate | |
Steven A. Bate | ||
Executive Vice President and Chief Financial Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: February 7, 2019 | /s/ R. Brian Hanson | |
R. Brian Hanson | ||
President and Chief Executive Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: February 7, 2019 | /s/ Steven A. Bate | |
Steven A. Bate | ||
Executive Vice President and Chief Financial Officer |
Document and Entity Information - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Feb. 04, 2019 |
Jun. 30, 2018 |
|
Document and Entity Information [Abstract] | |||
Entity Registrant Name | ION GEOPHYSICAL CORP | ||
Entity Central Index Key | 0000866609 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 260.0 | ||
Entity Common Stock, Shares Outstanding | 14,015,615 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 26,666,667 | 26,666,667 |
Common stock, shares outstanding (in shares) | 14,015,615 | 12,019,701 |
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Net revenues | $ 180,045 | $ 197,554 | $ 172,808 |
Cost of services and products | 120,425 | 121,915 | 136,776 |
Gross profit | 59,620 | 75,639 | 36,032 |
Operating expenses: | |||
Research, development and engineering | 18,182 | 16,431 | 17,833 |
Marketing and sales | 21,793 | 20,778 | 17,371 |
General, administrative and other operating expenses | 37,364 | 47,129 | 43,999 |
Impairment of long-lived assets | 36,553 | 0 | 0 |
Total operating expenses | 113,892 | 84,338 | 79,203 |
Loss from operations | (54,272) | (8,699) | (43,171) |
Interest expense, net | (12,972) | (16,709) | (18,485) |
Other income (expense), net | (436) | (3,945) | 1,350 |
Loss before income taxes | (67,680) | (29,353) | (60,306) |
Income tax expense | 2,718 | 24 | 4,421 |
Net income (loss) | (70,398) | (29,377) | (64,727) |
Net income attributable to noncontrolling interests | (773) | (865) | (421) |
Net loss attributable to ION | $ (71,171) | $ (30,242) | $ (65,148) |
Net loss per share: | |||
Basic (usd per share) | $ (5.20) | $ (2.55) | $ (5.71) |
Diluted (usd per share) | $ (5.20) | $ (2.55) | $ (5.71) |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 13,692 | 11,876 | 11,400 |
Diluted (in shares) | 13,692 | 11,876 | 11,400 |
Service | |||
Net revenues | $ 139,038 | $ 159,410 | $ 130,640 |
Cost of services and products | 100,557 | 103,124 | 115,763 |
Product | |||
Net revenues | 41,007 | 38,144 | 42,168 |
Cost of services and products | $ 19,868 | $ 18,791 | $ 21,013 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (70,398) | $ (29,377) | $ (64,727) |
Other comprehensive income (loss), net of taxes, as appropriate: | |||
Foreign currency translation adjustments | (1,563) | 2,869 | (6,967) |
Comprehensive net loss | (71,961) | (26,508) | (71,694) |
Comprehensive income attributable to noncontrolling interests | (773) | (865) | (421) |
Comprehensive net loss attributable to ION | $ (72,734) | $ (27,373) | $ (72,115) |
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Cash flows from operating activities: | |||
Net loss | $ (70,398) | $ (29,377) | $ (64,727) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization (other than multi-client library) | 8,763 | 16,592 | 21,975 |
Amortization of multi-client data library | 48,988 | 47,102 | 33,335 |
Impairment of long-lived assets | 36,553 | 0 | 0 |
Impairment of multi-client data library | 0 | 2,304 | 0 |
Stock-based compensation expense | 3,337 | 2,552 | 3,267 |
Accrual (reduction) of loss contingency related to legal proceedings | 0 | 5,000 | (1,168) |
Loss on bond exchange | 0 | 0 | 2,182 |
Write-down of excess and obsolete inventory | 665 | 398 | 429 |
Deferred income taxes | (6,252) | (5,420) | (1,181) |
Change in operating assets and liabilities: | |||
Accounts receivable | (7,024) | 1,692 | 20,426 |
Unbilled receivables | (5,245) | (23,947) | 6,543 |
Inventories | (353) | 190 | 2,312 |
Accounts payable, accrued expenses and accrued royalties | (7,600) | 1,443 | (5,085) |
Deferred revenue | (1,112) | 5,131 | (2,759) |
Other assets and liabilities | 6,776 | 3,952 | (14,556) |
Net cash provided by operating activities | 7,098 | 27,612 | 993 |
Cash flows from investing activities: | |||
Investment in multi-client data library | (28,276) | (23,710) | (14,884) |
Purchase of property, plant, equipment and seismic rental equipment | (1,514) | (1,063) | (1,458) |
Proceeds from sale of cost method investments | 0 | 0 | 2,698 |
Net cash used in investing activities | (29,790) | (24,773) | (13,644) |
Cash flows from financing activities: | |||
Borrowings under revolving line of credit | 0 | 0 | 15,000 |
Repayments under revolving line of credit | (10,000) | 0 | (5,000) |
Payments on notes payable and long-term debt | (30,807) | (4,816) | (23,634) |
Cost associated with issuance of debt | (1,247) | (53) | (6,744) |
Net proceeds from issuance of stocks | 46,999 | 0 | 0 |
Repurchase of common stock | 0 | 0 | (964) |
Proceeds from employee stock purchases and exercise of stock options | 214 | 1,619 | 0 |
Dividend payment to noncontrolling interest | (200) | (100) | 0 |
Other financing activities | (1,151) | (243) | (252) |
Net cash provided by (used in) financing activities | 3,808 | (3,593) | (21,594) |
Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash | 319 | (260) | 1,386 |
Net decrease in cash, cash equivalents and restricted cash | (18,565) | (1,014) | (32,859) |
Cash, cash equivalents and restricted cash at beginning of period | 52,419 | 53,433 | 86,292 |
Cash, cash equivalents and restricted cash at end of period | $ 33,854 | $ 52,419 | $ 53,433 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|---|---|
Cash and cash equivalents | $ 33,551 | $ 52,056 | $ 52,652 | |
Total cash, cash equivalents, and restricted cash shown in consolidated statements of cash flows | 33,854 | 52,419 | 53,433 | $ 86,292 |
Prepaid expenses and other current assets | ||||
Restricted cash | 0 | 60 | 260 | |
Other long-term assets | ||||
Restricted cash | $ 303 | $ 303 | $ 521 |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands |
Total |
Common Stock |
Additional Paid-In Capital |
Accumulated Deficit |
Accumulated Other Comprehensive Loss |
Treasury Stock |
Noncontrolling Interests |
|||
---|---|---|---|---|---|---|---|---|---|---|
Beginning balance (in shares) at Dec. 31, 2015 | [1] | 10,702,689.000 | ||||||||
Beginning balance at Dec. 31, 2015 | [1] | $ 112,040 | $ 107 | $ 894,715 | $ (759,531) | $ (14,781) | $ (8,551) | $ 81 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income | (64,727) | (65,148) | 421 | |||||||
Translation adjustment | (6,960) | (6,967) | 7 | |||||||
Stock-based compensation expense | 3,267 | 3,267 | ||||||||
Vesting of restricted stock units/ awards (in shares) | 40,495 | |||||||||
Vesting of restricted stock units/awards | 0 | |||||||||
Purchase of treasury shares (in shares) | (155,304) | |||||||||
Purchase of treasury shares | (964) | $ (1) | (963) | |||||||
Restricted stock cancelled for employee minimum income taxes (in shares) | (4,973) | |||||||||
Restricted stock cancelled for employee minimum income taxes | (22) | (22) | ||||||||
Issuance of stock for the ESPP (in shares) | 4,100 | |||||||||
Issuance of stock for the ESPP | 23 | 23 | ||||||||
Issuance of stock in bond exchange (in shares) | 1,205,440 | |||||||||
Issuance of stock in bond exchange | 10,741 | $ 12 | 1,215 | 9,514 | ||||||
Ending balance (in shares) at Dec. 31, 2016 | 11,792,447.000 | |||||||||
Ending balance at Dec. 31, 2016 | 53,398 | $ 118 | 899,198 | (824,679) | (21,748) | 0 | 509 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income | (29,377) | (30,242) | 865 | |||||||
Translation adjustment | 2,834 | 2,869 | (35) | |||||||
Dividend payment to noncontrolling interest | (100) | (100) | ||||||||
Stock-based compensation expense | $ 2,552 | 2,552 | ||||||||
Exercise of stock options (in shares) | 15,000 | 15,000 | ||||||||
Exercise of stock options | $ 46 | 46 | ||||||||
Vesting of restricted stock units/ awards (in shares) | 115,576 | |||||||||
Vesting of restricted stock units/awards | 0 | $ 1 | (1) | |||||||
Employee purchases of unregistered shares of common stock (in shares) | 120,567 | |||||||||
Employee purchases of unregistered shares of common stock | 1,573 | $ 1 | 1,572 | |||||||
Restricted stock cancelled for employee minimum income taxes (in shares) | (23,889) | |||||||||
Restricted stock cancelled for employee minimum income taxes | (120) | (120) | ||||||||
Ending balance (in shares) at Dec. 31, 2017 | 12,019,701.000 | |||||||||
Ending balance at Dec. 31, 2017 | 30,806 | $ 120 | 903,247 | (854,921) | (18,879) | 0 | 1,239 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income | (70,398) | (71,171) | 773 | |||||||
Translation adjustment | (1,783) | (1,563) | (220) | |||||||
Dividend payment to noncontrolling interest | (200) | (200) | ||||||||
Stock-based compensation expense | $ 3,337 | 3,337 | ||||||||
Exercise of stock options (in shares) | 70,086 | 70,086 | ||||||||
Exercise of stock options | $ 214 | $ 1 | 213 | |||||||
Vesting of restricted stock units/ awards (in shares) | 151,852 | |||||||||
Vesting of restricted stock units/awards | 0 | $ 1 | (1) | |||||||
Restricted stock cancelled for employee minimum income taxes (in shares) | (46,024) | |||||||||
Restricted stock cancelled for employee minimum income taxes | (1,151) | (1,151) | ||||||||
Public equity offering (in shares) | 1,820,000 | |||||||||
Public equity offering | 46,999 | $ 18 | 46,981 | |||||||
Ending balance (in shares) at Dec. 31, 2018 | 14,015,615 | |||||||||
Ending balance at Dec. 31, 2018 | $ 7,824 | $ 140 | $ 952,626 | $ (926,092) | $ (20,442) | $ 0 | $ 1,592 | |||
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CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parenthetical) |
Feb. 04, 2016 |
---|---|
Statement of Stockholders' Equity [Abstract] | |
Reverse stock split ratio of one share | 0.066667 |
Summary of Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies General Description and Principles of Consolidation ION Geophysical Corporation and its subsidiaries offer a full suite of services and products for seismic data acquisition and processing. The consolidated financial statements include the accounts of ION Geophysical Corporation and its majority-owned subsidiaries (collectively referred to as the “Company” or “ION”). Intercompany balances and transactions have been eliminated. Certain reclassifications were made to previously reported amounts in the consolidated financial statements and notes thereto to make them consistent with the current period presentation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates are made at discrete points in time based on relevant market information. These estimates may be subjective in nature and involve uncertainties and matters of judgment and, therefore, cannot be determined with precision. Areas involving significant estimates include, but are not limited to, accounts and unbilled receivables, inventory valuation, sales forecasts related to multi-client data libraries, goodwill and intangible asset valuation and deferred taxes. Actual results could materially differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company places its temporary cash investments with high credit quality financial institutions. At times such investments may be in excess of the Federal Deposit Insurance Corporation insurance limit. At December 31, 2018 and 2017, there was $0.3 million and $0.4 million, respectively, of long-term and short-term restricted cash used to secure standby and commercial letters of credit, which is included within “Other long-term assets” and “Prepaid expenses and other current assets” in the Consolidated Balance Sheets. Accounts and Unbilled Receivables Accounts and unbilled receivables are recorded at cost, less the related allowance for doubtful accounts. The Company considers current information and events regarding the customers’ ability to repay their obligations, such as the length of time the receivable balance is outstanding, the customers’ credit worthiness and historical experience. Unbilled receivables relate to revenues recognized on multi-client surveys, imaging services and devices equipment repairs on a proportionate basis, and on licensing of multi-client data libraries for which invoices have not yet been presented to the customer. Inventories Inventories are stated at the lower of cost (primarily first-in, first-out method) or net realizable value. The Company provides reserves for estimated obsolescence or excess inventory equal to the difference between cost of inventory and its estimated net realizable value based upon assumptions about future demand for the Company’s products, market conditions and the risk of obsolescence driven by new product introductions. Property, Plant, Equipment and Seismic Rental Equipment Property, plant, equipment and seismic rental equipment are stated at cost. Depreciation expense is provided straight-line over the following estimated useful lives:
Expenditures for renewals and betterments are capitalized; repairs and maintenance are charged to expense as incurred. The cost and accumulated depreciation of assets sold or otherwise disposed of are removed from the accounts and any gain or loss is reflected in operating expenses. The Company evaluates the recoverability of long-lived assets, including property, plant, equipment and seismic rental equipment, when indicators of impairment exist, relying on a number of factors including operating results, business plans, economic projections and anticipated future cash flows. Impairment in the carrying value of an asset held for use is recognized whenever anticipated future undiscounted cash flows from an asset are estimated to be less than its carrying value. The amount of the impairment recognized is the difference between the carrying value of the asset and its fair value. For 2018, the Company identified an indicator of impairment as it relates to its cable-based ocean bottom acquisition technologies. As a result, the Company recognized an impairment charge of $36.6 million. Multi-Client Data Library The multi-client data library consists of seismic surveys that are offered for licensing to customers on a non-exclusive basis. The capitalized costs include costs paid to third parties for the acquisition of data and related activities associated with the data creation activity and direct internal processing costs, such as salaries, benefits, computer-related expenses and other costs incurred for seismic data project design and management. For 2018, 2017 and 2016, the Company capitalized, as part of its multi-client data library, $11.9 million, $12.7 million and $6.6 million, respectively, of direct internal processing costs. At December 31, 2018 and 2017, multi-client data library costs and accumulated amortization consisted of the following (in thousands):
The Company’s method of amortizing the costs of an in-process multi-client data library (the period during which the seismic data is being acquired and/or processed, referred to as the “New Venture” phase) consists of determining the percentage of actual revenue recognized to the total estimated revenues (which includes both revenues estimated to be realized during the New Venture phase and estimated revenues from the licensing of the resulting “on-the-shelf” data survey) and multiplying that percentage by the total cost of the project (the sales forecast method). The Company considers a multi-client data survey to be complete when all work on the creation of the seismic data is finished and that data survey is available for licensing. Once a multi-client data survey is complete, the data survey is considered “on-the-shelf” and the Company’s method of amortization is then the greater of (i) the sales forecast method or (ii) the straight-line basis over a four-year period. The greater amount of amortization resulting from the sales forecast method or the straight-line amortization policy is applied on a cumulative basis at the individual survey level. Under this policy, the Company first records amortization using the sales forecast method. The cumulative amortization recorded for each survey is then compared with the cumulative straight-line amortization. The four-year period utilized in this cumulative comparison commences when the data survey is determined to be complete. If the cumulative straight-line amortization is higher for any specific survey, additional amortization expense is recorded, resulting in accumulated amortization being equal to the cumulative straight-line amortization for such survey. The Company has determined the amortization period of four years based upon its historical experience that indicates that the majority of its revenues from multi-client surveys are derived during the acquisition and processing phases and during four years subsequent to survey completion. The Company estimates the ultimate revenue expected to be derived from a particular seismic data survey over its estimated useful economic life to determine the costs to amortize, if greater than straight-line amortization. That estimate is made by the Company at the project’s initiation. For a completed multi-client survey, the Company reviews the estimate quarterly. If during any such review, the Company determines that the ultimate revenue for a survey is expected to be materially more or less than the original estimate of ultimate revenue for such survey, the Company decreases or increases (as the case may be) the amortization rate attributable to the future revenue from such survey. In addition, in connection with such reviews, the Company evaluates the recoverability of the multi-client data library, and, if required, records an impairment charge with respect to such data. Equity Method Investment The Company determined that INOVA Geophysical is a variable interest entity because the Company’s voting rights with respect to INOVA Geophysical are not proportionate to its ownership interest and substantially all of INOVA Geophysical’s activities are conducted on behalf of the Company and BGP, a related party to the Company. The Company is not the primary beneficiary of INOVA Geophysical because it does not have the power to direct the activities of INOVA Geophysical that most significantly impact its economic performance. Accordingly, the Company does not consolidate INOVA Geophysical, but instead accounts for INOVA Geophysical using the equity method of accounting. Under this method, an investment is carried at the acquisition cost, plus the Company’s equity in undistributed earnings or losses since acquisition, less distributions received. At December 31, 2014, the Company fully impaired its investment in INOVA reducing its equity investment in INOVA and its share of INOVA’s accumulated other comprehensive loss, both to zero. As of December 31, 2018, the carrying value of this investment remains zero. The Company no longer records its equity in losses or earnings and has no obligation, implicit or explicit, to fund any expenses of INOVA Geophysical. Noncontrolling Interests The Company has non-redeemable noncontrolling interests. Non-redeemable noncontrolling interests in majority-owned affiliates are reported as a separate component of equity in “Noncontrolling interests” in the Consolidated Balance Sheets. Net income attributable to noncontrolling interests is stated separately in the Consolidated Statements of Operations. The activity for this noncontrolling interest relates to proprietary processing projects in Brazil. Goodwill Goodwill is allocated to reporting units, which are either the operating segment or one reporting level below the operating segment. For purposes of performing the impairment test for goodwill, the Company established the following reporting units: E&P Technology & Services, Optimization Software & Services, Devices and Ocean Bottom Integrated Technologies. The Company is required to evaluate the carrying value of its goodwill at least annually for impairment, or more frequently if facts and circumstances indicate that it is more likely than not impairment has occurred. The Company formally evaluates the carrying value of its goodwill for impairment as of December 31 for each of its reporting units. The Company first performs a qualitative assessment by evaluating relevant events or circumstances to determine whether it is more likely than not that the fair value of a reporting unit exceeds its carrying amount. If the Company is unable to conclude qualitatively that it is more likely than not that a reporting unit’s fair value exceeds its carrying value, then it will use a two-step quantitative assessment of the fair value of a reporting unit. To determine the fair value of these reporting units, the Company uses a discounted future returns valuation model, which includes a variety of level 3 inputs. The key inputs for the model include the operational three-year forecast for the Company and the then-current market discount factor. Additionally, the Company compares the sum of the estimated fair values of the individual reporting units less consolidated debt to the Company’s overall market capitalization as reflected by the Company’s stock price. If the carrying value of a reporting unit that includes goodwill is determined to be more than the fair value of the reporting unit, there exists the possibility of impairment of goodwill. An impairment loss of goodwill is measured in two steps by first allocating the fair value of the reporting unit to net assets and liabilities including recorded and unrecorded intangible assets to determine the implied carrying value of goodwill. The next step is to measure the difference between the carrying value of goodwill and the implied carrying value of goodwill, and, if the implied carrying value of goodwill is less than the carrying value of goodwill, an impairment loss is recorded equal to the difference. See further discussion below at Footnote 11 “Goodwill.” Revenue From Contracts With Customers On January 1, 2018, the Company adopted Accounting Standards Codification Topic 606 - “Revenue from Contracts with Customers” and all the related amendments (“ASC 606”), using the modified retrospective method. This standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaborative arrangements and financial instruments. The adoption of ASC 606 did not have a material impact on the Consolidated Balance Sheets or Consolidated Statements of Operations for any of our reporting segments. See further discussion below at Footnote 3 “Revenue from Contracts with Customers.” Research, Development and Engineering Research, development and engineering costs primarily relate to activities that are designed to improve the quality of the subsurface image and overall acquisition economics of the Company’s customers. The costs associated with these activities are expensed as incurred. These costs include prototype material and field testing expenses, along with the related salaries and stock-based compensation, facility costs, consulting fees, tools and equipment usage and other miscellaneous expenses associated with these activities. Stock-Based Compensation The Company accounts for all stock-based payment awards issued to employees and directors, including employee stock options, restricted stocks units, restricted stocks and stock appreciation rights under the provisions of ASC 718 “Compensation – Stock Compensation” (“ASC 718”). The Company estimates the value of stock-based payment awards on the date of grant using an option pricing model such as Black-Scholes or Monte Carlo simulation. The determination of the fair value of stock-based payment awards is affected by the Company’s stock price as well as assumptions regarding a number of subjective variables. These variables include, but are not limited to, expected stock price volatility over the term of the awards, actual and projected stock-based instrument exercise behaviors, risk-free interest rate and expected dividends. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company recognizes stock-based compensation expense on the straight-line basis over the requisite service period of each award that are ultimately expected to vest. Income Taxes Income taxes are accounted for under the liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, including operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The Company records a valuation allowance when it is more likely than not that all or a portion of deferred tax assets will not be realized (see Footnote 7 “Income Taxes”). The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Debt Issuance Costs The Company presents debt issuance costs related to a debt liability as a direct deduction from the carrying amount of that debt liability on the Consolidated Balance Sheets and amortizes such costs using the effective interest method whereas debt issuance costs related to line of credit arrangement is presented within “Other assets” on the Consolidated Balance Sheets and amortized ratably over the term of the line of credit arrangement, regardless of whether there are any outstanding borrowings on the line of credit arrangement. Foreign Currency Gains and Losses Assets and liabilities of the Company’s subsidiaries operating outside the United States that have a functional currency other than the U.S. dollar have been translated to U.S. dollars using the exchange rate in effect at the balance sheet date. Results of foreign operations have been translated using the average exchange rate during the periods of operation. Resulting translation adjustments have been recorded as a component of Accumulated Other Comprehensive Loss. Foreign currency transaction gains and losses, as they occur, are included in “Other income (expense), net” on the Consolidated Statements of Operations. Total foreign currency transaction losses were $0.4 million, $1.6 million and $3.3 million for 2018, 2017 and 2016, respectively. Concentration of Foreign Sales Risk The majority of the Company’s foreign sales are denominated in U.S. dollars. For 2018, 2017 and 2016, international sales comprised 75%, 76% and 78%, respectively, of total net revenues. Since 2008, global economic problems and uncertainties have generally increased in scope and nature. The volatility in oil prices have continued to impact the global market throughout 2018. To the extent that world events or economic conditions negatively affect the Company’s future sales to customers in many regions of the world, as well as the collectability of the Company’s existing receivables, the Company’s future results of operations, liquidity and financial condition would be adversely affected. |
Segment and Geographic Information |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment and Geographic Information | Segment and Geographic Information The Company evaluates and reviews its results based on three business segments: E&P Technology & Services, Operations Optimization, and Ocean Bottom Integrated Technologies. The Company measures segment operating results based on income (loss) from operations. A summary of segment information follows (in thousands):
(a) Includes a charge of $36.6 million to write-down the cable-based ocean bottom acquisition technologies associated with the Ocean Bottom Integrated Technologies segment. This impairment relates to property, plant, equipment and seismic rental equipment of $21.3 million within the Operations Optimization segment and $15.3 million within the Ocean Bottom Integrated Technologies segment.
(a) Balance is net of impairment charge of $36.6 million related to the cable-based ocean bottom acquisition technologies. A summary of total assets by geographic area follows (in thousands):
A summary of property, plant, equipment and seismic equipment less accumulated depreciation and impairment by geographic area follows (in thousands):
(a) Balance is net of impairment charge of $36.6 million related to the cable-based ocean bottom acquisition technologies. Intersegment sales are insignificant for all periods presented. Support and other assets include all assets specifically related to support personnel and operation and a majority of cash and cash equivalents. 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):
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. |
Revenue from Contracts with Customers |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company derives revenue from the sale or license of (i) multi-client and proprietary data, imaging services and E&P Advisors consulting services within its E&P Technology & Services segment; (ii) seismic data acquisition systems and other seismic equipment, (iii) seismic command and control software systems and software solutions for operations management within its Operations Optimization segment; and (iv) a full suite of technology and services within its Ocean Bottom Integrated Technologies segment. All revenues of the E&P Technology & Services and Ocean Bottom Integrated Technologies segments and the services component of revenues for the Optimization Software & Services group as part of the Operations Optimization segment are classified as services revenues. All other revenues are classified as product revenues. The Company uses a five-step model to determine proper revenue recognition from customer contracts. Revenue is recognized when (i) a contract is approved by all parties; (ii) the goods or services promised in the contract are identified; (iii) the consideration the Company expects to receive in exchange for the goods or services promised is determined; (iv) the consideration is allocated to the goods and services in the contract; and (v) control of the promised goods or services is transferred to the customer. The Company does not disclose the value of contractual future performance obligations such as backlog with an original expected length of one year or less within the footnotes. Multi-client and Proprietary Surveys, Imaging Services and E&P Advisors Services - As multi-client seismic surveys are being designed, acquired or processed (the “New Venture” phase), the Company enters into non-exclusive licensing arrangements with its customers, who pre-fund or underwrite these programs in part. License revenues from these surveys are recognized during the New Venture phase as the seismic data is acquired and/or processed on a proportionate basis as work is performed and control is transferred to the customer. Under this method, the Company recognizes revenue based upon quantifiable measures of progress, such as kilometers acquired or surveys of performance completed to date. Upon completion of a multi-client seismic survey, it is considered “on-the-shelf,” and licenses to the survey data are granted to customers on a non-exclusive basis. The Company also performs seismic surveys, imaging and other services under contracts with specific customers, whereby the seismic data is owned by those customers. The Company recognizes revenue as the seismic data is acquired and/or processed on a proportionate basis as work is performed. The Company uses quantifiable measures of progress consistent with its multi-client seismic surveys. Acquisition Systems and Other Seismic Equipment - For sales of seismic data acquisition systems and other seismic equipment, the Company recognizes revenue when control of the goods has transferred to the customer. Transfer of control generally occurs when (i) the Company has a present right to payment; (ii) the customer has legal title to the asset; (iii) the Company has transferred physical possession of the asset; and (iv) the customer has significant rewards of ownership; or (v) the customer has accepted the asset. Software - Licenses for the Company’s navigation, survey design and quality control software systems provide the customer with a right to use the software. The Company offers usage-based licenses under which it receives a monthly fee based on the number of vessels and licenses used. For these usage-based licenses, revenue is recognized as the performance obligations are performed over the contract term, which is generally two to five years. In addition to usage-based licenses, the Company offers perpetual software licenses as it exists when made available to the customer. Revenue from these licenses is recognized upfront at the point in time when the software is made available to the customer. These arrangements generally include the Company providing related services, such as training courses, engineering services and annual software maintenance. The Company allocates consideration to each element of the arrangement based upon directly observable or estimated standalone selling prices. Revenue is recognized for these services as control transfers to the customer over time. Ocean Bottom Integrated Technologies - The Company recognizes revenue as the seismic data is acquired and control transfers to the customer. The Company uses quantifiable measures of progress consistent with its multi-client surveys. In connection with acquisition contracts, the Company may receive revenues for preparation and mobilization of equipment and personnel, capital improvements to vessels, or demobilization activities. The Company defers the revenues earned and incremental costs incurred that are directly related to these activities and recognizes such revenues and costs over the primary contract term of the acquisition project as it transfers the goods and services to the customer. The Company recognizes the costs of relocating vessels without contracts to more promising market sectors as such costs are incurred. Revenue by Segment and Geographic Area See Footnote 2 “Segment Information” of Footnotes to Consolidated Financial Statements for revenue by segment and revenue by geographic area for the years ended December 31, 2018, 2017 and 2016. In 2018, the Company had two customers with sales that each exceeded 10% of the consolidated net revenues. Revenues related to these customers are included within the E&P Technology & Services segment. In 2017, the Company had one customer with sales that exceeded 10% of the consolidated net revenues and revenues related to this customer are included within the E&P Technology & Services segment. No single customer represented 10% or more of the consolidated net revenues for 2016. Unbilled Receivables Unbilled receivables relate to revenues recognized on multi-client surveys, imaging services and Devices equipment repairs on a proportionate basis, and on licensing of multi-client data libraries for which invoices have not yet been presented to the customer. The following table is a summary of unbilled receivables (in thousands):
The changes in unbilled receivables were as follows (in thousands):
Deferred Revenue Billing practices are governed by the terms of each contract based upon achievement of milestones or pre-agreed schedules. Billing does not necessarily correlate with revenue recognized on a proportionate basis as work is performed and control is transferred to the customer. Deferred revenue represents cash received in excess of revenue not yet recognized as of the reporting period, but will be recognized in future periods. The following table is a summary of deferred revenues (in thousands):
The changes in deferred revenues were as follows (in thousands):
(a) The majority of deferred revenue recognized relates to Company’s Ventures group. The Company expects to recognize all deferred revenue within the next 12 months. |
Recent Accounting Pronouncements |
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Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-2, “Leases (Topic 842)” which introduces the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. The guidance will be effective for annual reporting periods beginning after December 15, 2018 and interim periods within those fiscal years with early adoption permitted. The Company will adopt ASU 2016-2 on January 1, 2019 using the modified retrospective method. The Company has completed its evaluation of operating leases related to offices, processing centers, warehouse spaces and, to a lesser extent, certain equipment. The Company expects the adoption of the standard will result in approximately $50 million to $60 million in right-of-use assets and lease obligations on the Consolidated Balance Sheets. The Company expects the Income Statement recognition to appear similar to its current methodology. The Company will elect the practical expedients upon transition which will retain the lease classification for leases and any unamortized initial direct costs that existed prior to the adoption of the standard. On January 1, 2018, the Company adopted ASC 606 and all the related amendments using the modified retrospective method. The adoption did not have a material impact to the Company’s revenue recognition policy under the previous standard and adoption of the new standard did not result in an adjustment to the Company’s beginning retained earnings balance. On January 1, 2018, the Company adopted ASU 2016-18, Statement of Cash Flows “Restricted Cash (a consensus of the FASB Emerging Issues Task Force)”, using a retrospective transition method to each period presented. The new standard no longer requires the Company to present transfers between cash and cash equivalents and restricted cash in the statements of cash flows. Adoption of the new standard resulted in a decrease of $0.4 million and $0.6 million in net cash provided by operating activities as previously reported for the years ended December 31, 2017 and 2016, respectively. See the Consolidated Statements of Cash Flows above which includes a reconciliation of cash and cash equivalents to total cash, cash equivalents, and restricted cash. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments.” The guidance will replace the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates The guidance is effective for public companies for interim and annual periods beginning after December 15, 2019, with early adoption permitted for interim and annual periods beginning after December 15, 2018. The Company is in the initial stages of evaluating the impact of this standard on the Consolidated Financial Statements. |
Long-term Debt and Lease Obligations |
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Long-term Debt and Lease Obligations | Long-term Debt and Lease Obligations The following is a summary of long-term debt and lease obligation (in thousands):
(a) The maturity of the revolving credit facility will accelerate to December 15, 2021 if the Company is unable to repay or extend the maturity of the Second Lien Notes. Revolving Credit Facility On August 16, 2018, ION and its material U.S. subsidiaries; GX Technology Corporation, ION Exploration Products (U.S.A) Inc. and I/O Marine Systems Inc. (the “Material U.S. Subsidiaries”), along with GX Geoscience Corporation, S. de R.L. de C.V., a limited liability company (Sociedad de Responsibilidad Limitada de Capital Variable) organized under the laws of Mexico, and a subsidiary of the Company (the “Mexican Subsidiary”), (the Material U.S. Subsidiaries and the Mexican Subsidiary are collectively, the “Subsidiary Borrowers”, together with ION Geophysical Corporation are the “Borrowers”), the financial institutions party thereto, as lenders, and PNC Bank, National Association (“PNC”), as agent for the lenders, entered into that certain Third Amendment and Joinder to Revolving Credit and Security Agreement (the “Third Amendment”), amending the Revolving Credit and Security Agreement, dated as of August 22, 2014 (as previously amended by the First Amendment to Revolving Credit and Security Agreement, dated as of August 4, 2015 and the Second Amendment to Revolving Credit and Security Agreement, dated as of April 28, 2016, the “Credit Agreement”). The Credit Agreement, as amended by the First Amendment, the Second Amendment and the Third Amendment is herein called, the “Credit Facility”). The Credit Facility is available to provide for the Borrowers’ general corporate needs, including working capital requirements, capital expenditures, surety deposits and acquisition financing. The Third Amendment amends the Credit Agreement to, among other things:
The maximum amount under the Credit Facility is the lesser of $50.0 million or a monthly borrowing base. The borrowing base under the Credit Facility will increase or decrease monthly using a formula based on certain eligible receivables, eligible inventory and other amounts, including a percentage of the net orderly liquidation value of the Borrowers’ multi-client data library. As of December 31, 2018, the borrowing base under the Credit Facility was $41.9 million and there was no outstanding indebtedness under the Credit Facility. The obligations of Borrowers under the Credit Facility are secured by a first-priority security interest in 100% of the stock of the Subsidiary Borrowers and 65% of the equity interest in ION International Holdings L.P. and by substantially all other assets of the Borrowers. However, the first-priority security interest in the other assets of the Mexican Subsidiary is limited to a maximum exposure of $5.0 million. The Credit Facility contains covenants that, among other things, limit or prohibit the Borrowers, subject to certain exceptions and qualifications, from incurring additional indebtedness in excess of permitted indebtedness (including capital lease obligations), repurchasing equity, paying dividends or distributions, granting or incurring additional liens on the Borrowers’ properties, pledging shares of the Borrowers’ subsidiaries, entering into certain merger transactions, entering into transactions with the Company’s affiliates, making certain sales or other dispositions of the Borrowers’ assets, making certain investments, acquiring other businesses and entering into sale-leaseback transactions with respect to the Borrowers’ property. The Credit Facility, requires that ION and the Subsidiary Borrowers maintain a minimum fixed charge coverage ratio of 1.1 to 1.0 as of the end of each fiscal quarter during the existence of a covenant testing trigger event. The fixed charge coverage ratio is defined as the ratio of (i) ION’s EBITDA, minus unfunded capital expenditures made during the relevant period, minus distributions (including tax distributions) and dividends made during the relevant period, minus cash taxes paid during the relevant period, to (ii) certain debt payments made during the relevant period. A covenant testing trigger event occurs upon (a) the occurrence and continuance of an event of default under the Credit Facility or (b) by a two-step process based on (i) a minimum excess borrowing availability threshold (excess borrowing availability less than $6.25 million for five consecutive business days or $5.0 million on any given business day, and (ii) the Borrowers’ unencumbered cash maintained in a PNC deposit account is less that the Borrowers’ then outstanding obligations. Prior to the Third Amendment, the test covenant compliance was tied to a total liquidity measure (liquidity less than $7.5 million for five consecutive days or $6.5 million on any given day). As of December 31, 2018, the Company was in compliance with all of the covenants under the Credit Facility. The Credit Facility, as amended, contains customary event of default provisions (including a “change of control” event affecting ION), the occurrence of which could lead to an acceleration of the Company’s obligations under the Credit Facility. Senior Secured Notes As of December 31, 2018, ION Geophysical Corporation’s 9.125% Senior Secured Second Priority Notes due December 2021 (the “Second Lien Notes”) had an outstanding principal amount of $120.6 million. Prior to its early redemption, ION Geophysical Corporation’s 8.125% Senior Secured Second-Priority Notes due May 2018 (the “Third Lien Notes”) had an aggregate principal amount of $28.5 million. In March 2018, ION Geophysical Corporation obtained consent from a majority of the Second Lien Notes holders and from PNC to redeem, in full, the Third Lien Notes prior to their stated maturity. On March 26, 2018, ION Geophysical Corporation redeemed the Third Lien Notes by paying the then outstanding principal amount, plus all accrued and unpaid interest through the redemption date. The Second Lien Notes remain outstanding and are senior secured second-priority obligations guaranteed by the Material U.S. Subsidiaries and the Mexican Subsidiary (each as defined above and herein below, with the reference to the Second Lien Notes, the “Guarantors”). Interest on the Second Lien Notes accrues at the rate of 9.125% per annum and is payable semiannually in arrears on June 15 and December 15 of each year during their term, except that the interest payment otherwise payable on June 15, 2021 will be payable on December 15, 2021. The April 2016 indenture governing the Second Lien Notes contains certain covenants that, among other things, limits or prohibits ION Geophysical Corporation’s ability and the ability of its restricted subsidiaries to take certain actions or permit certain conditions to exist during the term of the Second Lien Notes, including among other things, incurring additional indebtedness, creating liens, paying dividends and making other distributions in respect of ION Geophysical Corporation’s capital stock, redeeming ION Geophysical Corporation’s capital stock, making investments or certain other restricted payments, selling certain kinds of assets, entering into transactions with affiliates, and effecting mergers or consolidations. These and other restrictive covenants contained in the Second Lien Notes Indenture are subject to certain exceptions and qualifications. All of ION Geophysical Corporation’s subsidiaries are currently restricted subsidiaries. As of December 31, 2018, the Company was in compliance with the covenants with respect to the Second Lien Notes. On or after December 15, 2019, the Company may on one or more occasions redeem all or a part of the Second Lien Notes at the redemption prices set forth below, plus accrued and unpaid interest and special interest, if any, on the Second Lien Notes redeemed during the twelve-month period beginning on December 15th of the years indicated below:
Equipment Capital Leases The Company has entered into capital leases that are due in installments for the purpose of financing the purchase of computer equipment through 2021. Interest accrues under these leases at rates from 4.3% to 8.7% per annum, and the leases are collateralized by liens on the computer equipment. The assets are amortized over the lesser of their related lease terms or their estimated productive lives and such charges are reflected within depreciation expense. A summary of future principal obligations under long-term debt and equipment capital lease obligations follows (in thousands):
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The sources of income (loss) before income taxes are as follows (in thousands):
Components of income taxes are as follows (in thousands):
A reconciliation of the expected income tax expense on income (loss) before income taxes using the statutory federal income tax rate of 21% for 2018 and 35% for 2017 and 2016 to income tax expense follows (in thousands):
As a result of passage of the Tax Cut and Jobs Act (the “Act”) in December 2017, the Company’s U.S. deferred tax assets, liabilities, and associated valuation allowance as of December 31, 2018 and 2017 have been re-measured at the new U.S. federal tax rate of 21%. The tax effects of the cumulative temporary differences resulting in the net deferred income tax asset (liability) are as follows (in thousands):
As of December 31, 2018, the Company has a valuation allowance on substantially all net U.S. deferred tax assets. The valuation allowance was released in 2017 with respect to refundable U.S. alternative minimum tax (“AMT”) credits that will be realized as a result of provisions in the Act. A valuation allowance is established or maintained when it is “more likely than not” that all or a portion of deferred tax assets will not be realized. The Company will continue to record a valuation allowance for the substantial majority of its deferred tax assets until there is sufficient evidence to warrant reversal. At December 31, 2018, the Company had U.S. net operating loss carryforwards of approximately $274.4 million, expiring in 2034 and beyond, and net operating loss carryforwards outside of the U.S. of approximately $153.1 million, the majority of which expires beyond 2025. As of December 31, 2018, the Company has approximately $0.4 million of unrecognized tax benefits and does not expect to recognize any significant increases in unrecognized tax benefits during the next twelve-month period. Interest and penalties, if any, related to unrecognized tax benefits are recorded in income tax expense. During 2018, 2017 and 2016, the aggregate changes in the Company’s total gross amount of unrecognized tax benefits are summarized as follows (in thousands):
The Company’s U.S. federal tax returns for 2015 and subsequent years remain subject to examination by tax authorities. The Company is no longer subject to Internal Revenue Service (“IRS”) examination for periods prior to 2015, although carryforward attributes that were generated prior to 2015 may still be adjusted upon examination by the IRS if they either have been or will be used in a future period. In the Company’s foreign tax jurisdictions, tax returns for 2012 and subsequent years generally remain open to examination. As of December 31, 2018, the Company considered the outside book-over-tax basis difference in its foreign subsidiaries to be in the amount of approximately $85.0 million. United States income taxes have not been provided on this basis difference as it is the Company’s intention to reinvest the undistributed earnings of its foreign subsidiaries to the extent they cannot be remitted to the United States without incurring incremental tax as provided in the Act. |
Net Income (Loss) per Common Share |
12 Months Ended |
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Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Common Share | Net Income (Loss) per Common Share Basic net income (loss) per common share is computed by dividing net income (loss) applicable to common shares by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is determined based on the assumption that dilutive restricted stock and restricted stock unit awards have vested and outstanding dilutive stock options have been exercised and the aggregate proceeds were used to reacquire common stock using the average price of such common stock for the period. The total number of shares issuable under anti-dilutive options at December 31, 2018, 2017 and 2016 were 785,890, 890,341 and 847,635, respectively. All outstanding stock options for the twelve months ended December 31, 2018, 2017 and 2016 were anti-dilutive. |
Legal Matters |
12 Months Ended |
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Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters | Legal Matters WesternGeco A more thorough treatment of history of this litigation is set forth above in Item 1.A, “Risk Factors”. As noted in that section, in 2014, because a jury found that we infringed four WesternGeco patents, the United States District Court for the Southern District of Texas (the “District Court”) entered a Final Judgment against us in the amount of $123.8 million ($12.5 million in reasonable royalties, $93.4 million in lost profits, $10.9 million in pre-judgment interest on lost profits, and $9.4 million in supplemental damages). In 2015, the United States Court of Appeals for the Federal Circuit in Washington, D.C. (the “Court of Appeals”) reversed, in part, the District Court, holding that the lost profits, which were attributable to foreign seismic surveys, were not available to WesternGeco under the Patent Act. The Company had recorded a loss contingency accrual of $123.8 million because of the District Court’s ruling. As a result of the reversal by the Court of Appeals, the Company reduced the loss contingency accrual to $22.0 million. On February 26, 2016, WesternGeco appealed the Court of Appeals’ decision to the Supreme Court, as to both lost profits and “enhanced” damages (damages which are available for willful infringement, and which neither the District Court nor the Trial Court awarded). On June 20, 2016, the Supreme Court vacated the Court of Appeals’ ruling, although it did not address lost profits at that time. Rather, in light of changes in case law regarding the standard of proof for willfulness in patent infringement, the Supreme Court remanded the case to the Court of Appeals for a determination of whether enhanced damages were appropriate. On November 14, 2016, the District Court ordered our sureties to pay principal and interest on the royalty damages previously awarded. On November 25, 2016, the Company paid WesternGeco the $20.8 million due pursuant to the order, and it reduced its loss contingency accrual to zero. On March 14, 2017, the District Court held a hearing on whether impose additional damages for willfulness. The Judge found that the Company’s infringement was willful, and awarded enhanced damages of $5.0 million to WesternGeco (WesternGeco had sought $43.6 million in such damages.) The District Court also ordered the appeal bond to be released and discharged. The Court’s findings and ruling were memorialized in an order issued on May 16, 2017. On June 30, 2017, the Company and WesternGeco agreed that neither of them would appeal the District Court's award of $5.0 million in enhanced damages. Upon assessment of the enhanced damages, the Company accrued $5.0 million in the first quarter of 2017. As the Company have paid the $5.0 million, the accrual has been adjusted, and as of December 31, 2018, the loss contingency accrual was zero. WesternGeco filed a second petition in the Supreme Court on February 17, 2017, appealing the lost profits issue again. On May 30, 2017, the Supreme Court called for the U.S. Solicitor General’s views on whether or not the Supreme Court ought to hear WesternGeco’s appeal. On December 6, 2017, the Solicitor General filed its brief, and took the position that the Supreme Court ought to hear the appeal and that foreign lost profits ought to be available. On January 12, 2018, the Supreme Court agreed to hear the appeal. The specific issue before the Supreme Court was whether lost profits arising from use of prohibited combinations occurring outside of the United States are categorically unavailable in cases where patent infringement is proven under 35 U.S.C. § 271(f)(2) (the statute under which the Company were held to have infringed WesternGeco’s patents, and upon which the District Court and Court of Appeals relied in entering their rulings). The Supreme Court heard oral arguments on April 16, 2018. The Company argued that the Court of Appeals’ decision that eliminated lost profits ought to be affirmed. WesternGeco and the Solicitor General argued that the Court of Appeals’ decision that eliminated lost profits ought to be reversed. On June 22, 2018, the Supreme Court reversed the judgment of the Court of Appeals, held that the award of lost profits to WesternGeco by the District Court was a permissible application of Section 284 of the Patent Act, and remanded the case back to the Court of Appeals for further proceedings consistent with its (the Supreme Court’s) opinion. On July 24, 2018, the Supreme Court issued the judgment that returned the case to the Court of Appeals. On July 27, 2018, the Court of Appeals vacated its September 21, 2016 judgment with respect to damages, and ordered WesternGeco and the Company to submit supplemental briefing on what relief is appropriate in light of the Supreme Court’s decision. The Company and WesternGeco each submitted briefing in accordance with the Court of Appeals’ order (the last brief was filed on September 7, 2018). The Company argued in its brief to the Court of Appeals that lost profits were not available to WesternGeco because the jury instructions required them to find that the Company had been WesternGeco’s direct competitor in the survey markets where WesternGeco had lost profits, and that the jury could not have found so. Additionally, we argued that the award of lost profits and reasonable royalties ought to be vacated and retried on separate grounds due to the outcome of an Inter Partes Review (“IPR”) filed with the Patent Trial and Appeal Board (“PTAB”) of the Patent and Trademark Office. Until the Court of Appeals’ January 11, 2019 decision issued (which is described below), the IPR was an administrative proceeding that was separate from the 2009 lawsuit. By means of the IPR, the Company joined a challenge to the validity of several of WesternGeco’s patent claims that another company had filed. While the 2009 lawsuit was pending on appeal, the PTAB invalidated four of the six patent claims that formed the basis for the lawsuit judgment against the Company. WesternGeco appealed the PTAB’s invalidation of its patents to the Court of Appeals. On May 7, 2018, the Court of Appeals affirmed the PTAB’s invalidation of the patents, and on July 16, 2018, the Court of Appeals denied WesternGeco’s petition for a rehearing. On December 13, 2018, WesternGeco filed a petition with the Supreme Court, arguing that the Court of Appeals ought to have overturned the decision of the PTAB. (As of February 7, 2019, the Supreme Court has not indicated whether it will, or will not, hear WesternGeco’s appeal.) In the same brief to the Court of Appeals in which the Company made its “direct competitor” argument, the Company argued that the Court of Appeals’ affirmation of the PTAB’s decision precluded WesternGeco’s damages claims, and that the Court of Appeals should order a new trial as to the royalty damages already paid by the Company. The Company also argued that if the Court of Appeals did not find its “direct competitor” argument persuasive, the Court should nonetheless vacate the District Court’s award of royalty damages and lost profits damages and order a new trial as to both royalty damages and lost profits. In its briefs to the Court of Appeals, WesternGeco argued that the only remaining issue was whether lost profits were unavailable to WesternGeco due to the Company’s “direct competitor” argument, and argued that the invalidation of four of its six patent claims by the PTAB (which was affirmed by the Court of Appeals) should have no effect on lost profits or on the royalty award already paid by the Company. WesternGeco also argued that lost profits should be available notwithstanding the Company’s “direct competitor” argument. Oral arguments took place on November 16, 2018, and on January 11, 2019, the Court of Appeals issued its ruling. In its ruling, the Court of Appeals refused to disturb the award of reasonable royalties to WesternGeco (which the Company paid in 2016), and rejected the Company’s “direct competitor” argument, but vacated the District Court’s award of lost profits damages and remanded the case back to the District Court to determine whether to hold a new trial as to lost profits. The Court of Appeals also ruled that its affirmance of the PTAB’s decision eliminated four of the five patent claims that could have supported the award of lost profits, leaving only one remaining patent claim that could support an award of lost profits. The Court of Appeals further held that the lost profits award can be reinstated by the District Court if the existing trial record establishes that the jury must have found that the technology covered by the one remaining patent claim was essential for performing the surveys upon which lost profits were based. To make such a finding, the District Court must conclude that the present trial record establishes that there was no dispute that the technology covered by the one remaining patent claim, independent of the technology of the now-invalid claims, was required to perform the surveys. The Court of Appeals ruling further provides that if, but only if, the District Court concludes that WesternGeco established at trial, with undisputed evidence, that the remaining claim covers technology that was necessary to perform the surveys, then the District Court may deny a new trial and reinstate lost profits. Other The Company has been named in various other lawsuits or threatened actions that are incidental to its ordinary business. Litigation is inherently unpredictable. Any claims against the Company, whether meritorious or not, could be time-consuming, cause the Company to incur costs and expenses, require significant amounts of management time and result in the diversion of significant operational resources. The results of these lawsuits and actions cannot be predicted with certainty. Management currently believes that the ultimate resolution of these matters will not have a material adverse impact on the financial condition, results of operations or liquidity of the Company. |
Other Income (Expense) |
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income (Expense) | Other Income (Expense) A summary of other income (expense) follows (in thousands):
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Details of Selected Balance Sheet Accounts |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Details of Selected Balance Sheet Accounts | Details of Selected Balance Sheet Accounts Accounts Receivable
Inventories
Property, Plant, Equipment and Seismic Rental Equipment A summary of property, plant, equipment and seismic rental equipment follows (in thousands):
Total depreciation expense, including amortization of assets recorded under capital leases, for 2018, 2017 and 2016 was $7.6 million, $15.2 million and $20.3 million, respectively. Accrued Expenses
Other Long-term Liabilities
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Goodwill |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | Goodwill On December 31, 2018, the Company completed the annual reviews of the carrying value of goodwill in its E&P Technology & Services and Optimization Software & Services reporting units and noted no impairments. The qualitative assessment concluded it was more likely than not that the fair values of the Company’s E&P Technology & Services, and Optimization Software & Services reporting units exceeded their carrying values. The following is a summary of the changes in the carrying amount of goodwill for the years ended December 31, 2018 and 2017 (in thousands):
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Stockholder's Equity and Stock-based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity and Stock-based Compensation | Stockholders' Equity and Stock-based Compensation Public Equity Offering On February 21, 2018, the Company completed the public equity offering (the “Offering”) of its 1,820,000 shares of common stock at a public offering price of $27.50 per share, and warrants to purchase an additional 1,820,000 shares of the Company’s common stock pursuant to the Registration Statement on Form S-3 (No. 33-213769) filed with the Securities and Exchange Commission under the Securities Act of 1933 and declared effective on December 2, 2016. The net proceeds from this Offering were $47.0 million, including transaction expenses. A portion of the net proceeds were used to retire the Company’s $28.5 million Third Lien Notes in March 2018. The warrants have an exercise price of $33.60 per share, are immediately exercisable and expire on March 21, 2019. Stock Option Plans The Company has adopted stock option plans for eligible employees, directors and consultants, which provide for the granting of options to purchase shares of common stock. The options under these plans generally vest in equal annual installments over a four-year period and have a term of ten years. These options are typically granted at pre-established quarterly grant dates with an exercise price per share equal to or greater than the current market price and, upon exercise, are issued from the Company’s unissued common shares. Transactions under the stock option plans are summarized as follows:
Stock options outstanding at December 31, 2018 are summarized as follows:
Additional information related to the Company’s stock options follows:
The total intrinsic value of options exercised during 2018, 2017 and 2016 was $1.4 million, less than $0.1 million and less than $0.1 million, respectively. Cash received from option exercises under all share-based payment arrangements for 2018 and 2017 was $0.2 million and less than $0.1 million, respectively, and during 2016, there was no cash received. The weighted average grant date fair value for stock option awards granted during 2018, 2017 and 2016 was $15.23, $8.10 and $2.04 per share, respectively. The Company calculated the fair value of each stock option on the date of grant using the Black-Scholes option pricing model. The following assumptions were used for each respective period:
The computation of expected volatility during 2018, 2017 and 2016 was based on an equally weighted combination of historical volatility and market-based implied volatility. Historical volatility was calculated from historical data for a period of time approximately equal to the expected term of the option award, starting from the date of grant. Market-based implied volatility was derived from traded options on the Company’s common stock having a term of six months. The Company’s computation of expected life in 2018, 2017 and 2016 was determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior. The risk-free interest rate assumption is based upon the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. Restricted Stock and Restricted Stock Unit Plans On November 30, 2018, the Company’s stockholders approved certain amendments to the Company’s Second Amended and Restated 2013 Long-term Incentive Plan (the “2013 LTIP”) including increasing the total number of shares of common stock available for issuance under the 2013 LTIP by 1.2 million shares, for a total of approximately 1.7 million shares, eliminating the restriction on the number of shares in the 2013 LTIP that can be issued as full value awards and certain other technical updates and clarifications related to Section 162(m) of the internal revenue code, as amended. The Company has issued restricted stock and restricted stock units under the Company’s 2013 LTIP, as amended and other applicable plans. Restricted stock units are awards that obligate the Company to issue a specific number of shares of common stock in the future if continued service vesting requirements are met. Non-forfeitable ownership of the common stock will vest over a period as determined by the Company in its sole discretion, generally in equal annual installments over a three-year period. Shares of restricted stock awarded may not be sold, assigned, transferred, pledged or otherwise encumbered by the grantee during the vesting period. On December 1, 2018, the Company issued 900,002 restricted stocks to selected employees with a grant date fair value $7.19, $6.51 and $5.89 for each of the tranches. The vesting of these restricted stocks is achieved through both a market condition and a service condition. The market condition is achieved, in part or in full, in the event that during the three-year period beginning on the date of grant the 20-day trailing volume-weighted average price of a share of common stock reaches or exceeds (i) $17.50 for the first 1/3 of the awards, (ii) $22.50 for the second 1/3 of the awards, and (iii) $27.50 for the final 1/3 of the awards. The service condition restricts the ability of the holders to exercise awards until certain service milestones have been reached such that (i) no more than 1/3 of the awards may be exercised, if vested, on and after the first anniversary of the date of grant, (ii) no more than 2/3 of the awards may be exercised, if vested, on and after the second anniversary of the date of grant and (iii) all of the awards may be exercised, if vested, on and after the third anniversary of the date of grant. The status of the Company’s restricted stock and restricted stock unit awards for 2018 follows:
At December 31, 2018, 2017 and 2016, the intrinsic value of restricted stock and restricted stock unit awards was approximately $5.4 million, $4.0 million and $1.7 million, respectively. The weighted average grant date fair value for restricted stock and restricted stock unit awards granted during 2018, 2017 and 2016 was $10.60, $11.36 and $3.81 per share, respectively. The total fair value of shares vested during 2018, 2017 and 2016 was $3.8 million, $0.6 million and $0.2 million, respectively. Stock Appreciation Rights Plan The Company has adopted a stock appreciation rights plan which provides for the award of stock appreciation rights (“SARs”) to directors and selected key employees and consultants. The awards under this plan are subject to the terms and conditions set forth in agreements between the Company and the holders. The exercise price per SAR is not to be less than one hundred percent of the fair market value of a share of common stock on the date of grant of the SAR. The term of each SAR shall not exceed ten years from the grant date. Upon exercise of a SAR, the holder shall receive a cash payment in an amount equal to the spread specified in the SAR agreement for which the SAR is being exercised. In no event will any shares of common stock be issued, transferred or otherwise distributed under the plan. On December 1, 2018, the Company issued 960,009 SARs awards to selected employees with an exercise price of $8.85 (“2018 SARs”). None of these 2018 SARs were awarded to non-employee directors. The 2018 SARs have the same service and market vesting conditions as the restricted stocks issued on December 1, 2018, as described above. The maximum value of each 2018 SARs is capped at $18.65 (the spread between the share price cap of $27.50 and the $8.85 per award price). The 2018 SARs are considered liability awards and as such, these amounts are accrued in the liability section of the consolidated balance sheets. The Company calculated the fair value of each 2018 SARs award as of December 31, 2018 using a Monte Carlo simulation model. The following assumptions were used:
On March 1, 2016, the Company issued 1,210,000 SARs awards to 15 selected key employees with an exercise price of $3.10 (“2016 SARs”). None of these 2016 SARs were awarded to non-employee directors. The vesting of these 2016 SARs is achieved through both a market condition and a service condition. The market condition is achieved, in part or in full, in the event that during the four-year period beginning on the date of grant the 20-day trailing volume-weighted average price of a share of common stock is (i) greater than 120% of the exercise price for the first 1/3 of the awards, (ii) greater than 125% of the exercise price for the second 1/3 of the awards and (iii) greater than 130% of the exercise price for the final 1/3 of the awards. The service condition restricts the ability of the holders to exercise awards until certain service milestones have been reached such that (i) no more than 1/3 of the awards may be exercised, if vested, on and after the first anniversary of the date of grant, (ii) no more than 2/3 of the awards may be exercised, if vested, on and after the second anniversary of the date of grant and (iii) all of the awards may be exercised, if vested, on and after the third anniversary of the date of grant. The maximum value of each 2016 SARs is capped at $19.40 (the spread between the share price cap of $22.50 and the $3.10 per award price). On December 13, 2017, the Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) of the Company authorized and approved the acceleration of the vesting date to December 13, 2017 for the second tranche of the Company’s outstanding 2016 SARs. The second tranche of the 2016 SARs awards was originally scheduled to vest on March 1, 2018. The vesting of the second tranche of the 2016 SARs awards was accelerated to facilitate the exercise by the 2016 SARs participants, if they so choose, of a larger portion of the 2016 SARs awards prior to year-end, as such an exercise would minimize the potential cash flow impact of any such exercise in the first quarter of 2018, would mitigate the ongoing mark to market accounting requirements for cash-settled 2016 SARs, and would afford the 2016 SARs participants liquidity to invest in common stock of the Company to further align their interests with those of the Company’s stockholders. Participants exercised 663,330 SARs awards at a $9.95 gain per share. The 2016 SARs are considered liability awards and as such, these amounts are accrued in the liability section of the consolidated balance sheets. The Company calculated the fair value of each 2016 SARs award on the date of grant and remeasured at each reporting period using a Monte Carlo simulation model. However, as of December 31, 2018, the fair value of the 2016 SARs awards were derived using the intrinsic value method since the final tranche of the 2016 SARs awards vest on March 1, 2019, less than twelve months from the balance sheet date. On March 1, 2015, the Company issued 207,207 SARs awards to 16 selected key employees with an exercise price of $34.20 (“2015 SARs”). None of these 2015 SARs were awarded to non-employee directors. The 2015 SARs awards number and exercise price have been retroactively adjusted to reflect the one-for-fifteen reverse stock split completed on February 4, 2016. The vesting of these 2015 SARs is achieved through both a market condition and a service condition. The market condition is achieved, in part or in full, in the event that during the four-year period beginning on the date of grant the 20-day trailing volume-weighted average price of a share of common stock is (i) greater than 120% of the exercise price for the first 1/3 of the awards, (ii) greater than 125% of the exercise price for the second 1/3 of the awards and (iii) greater than 130% of the exercise price for the final 1/3 of the awards. The exercise condition restricts the ability of the holders to exercise awards until certain service milestones have been reached such that (i) no more than 1/3 of the awards may be exercised, if vested, on and after the first anniversary of the date of grant, (ii) no more than 2/3 of the awards may be exercised, if vested, on and after the second anniversary of the date of grant and (iii) all of the awards may be exercised, if vested, on and after the third anniversary of the date of grant. The 2015 SARs are considered liability awards and as such, these amounts are accrued in the liability section of the consolidated balance sheets. The Company calculated the fair value of each 2015 SARs award on the date of grant and remeasured at each reporting period using a Monte Carlo simulation model. As of December 31, 2018, the market condition had not been met for the 2015 SARs. If the market condition is not met by March 1, 2019, the 2015 SARs award will expire. The Company recorded $0.8 million of share-based compensation expense during 2018, $6.6 million during 2017 and $0.5 million in 2016, related to employee SARs. Additional information related to the Company's SARs follows:
Stock-based Compensation Expense The following tables summarizes stock-based compensation expense for the years ended December 31, 2018, 2017 and 2016 as follows (in thousands):
Equity Investment Program To encourage the Company’s executive officers and other key employees to purchase common stock of the Company and further align their interests with those of the Company’s stockholders, the Board authorized and approved an equity investment program (the “Program”) pursuant to which certain of the executive officers and other key employees of the Company are permitted, but not obligated, to purchase unregistered shares of common stock of the Company directly from the Company at market prices. In connection with any such purchases, the Committee authorized and approved, on December 13, 2017, a grant by the Company to such purchasing executive officers and key employees of a certain number of shares of restricted stock. On December 13, 2017, the Committee also authorized and approved to grant to certain executive officers and key employees a certain number of shares of restricted stock in connection with certain purchases of shares of the Company’s common stock in the open market. Specifically, for each five (5) shares directly purchased from the Company or in the open market during a defined period (to expire no later than December 31, 2017), the Company will issue one (1) share of restricted stock, subject to certain limitations as to the total number of restricted shares to be issued by the Company. Provided that an executive officer or key employee remains employed with the Company until March 1, 2018, the restricted stock will be granted as of March 1, 2018, will vest in full on the date that is 90 days after the grant date and will be subject to the other terms and conditions of the Company’s form of restricted stock agreement and the Company’s 2013 LTIP. The Company sold, in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended on December 14, 2017, 120,567 shares of Company common stock at $13.05 per share (the closing price of the Company’s common stock on the NYSE on such date) and executive officers and other key employees purchased 219,346 shares in the open market. On May 30, 2018, 43,865 shares of restricted stock vested at $24.75 per share. |
Supplemental Cash Flow Information and Non-Cash Activity |
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Supplemental Cash Flow Elements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information and Non-Cash Activity | Supplemental Cash Flow Information and Non-Cash Activity Supplemental disclosure of cash flow information follows (in thousands):
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Operating Leases |
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Operating Leases | Operating Leases Lessee. The Company leases certain equipment, offices and warehouse space under non-cancelable operating leases. Rental expense was $10.1 million, $11.4 million and $11.3 million for 2018, 2017 and 2016, respectively. A summary of future rental commitments over the next five years under non-cancelable operating leases follows (in thousands):
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Fair Value of Financial Instruments |
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Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Authoritative guidance on fair value measurements defines fair value, establishes a framework for measuring fair value and stipulates the related disclosure requirements. The Company follows a three-level hierarchy, prioritizing and defining the types of inputs used to measure fair value. Due to their highly liquid nature, the amount of the Company’s other financial instruments, including cash and cash equivalents, restricted cash, accounts and unbilled receivables, short term investments, accounts payable and accrued multi-client data library royalties, represent their approximate fair value. The carrying amounts of the Company’s long-term debt as of December 31, 2018 and 2017 were $124.7 million and $160.7 million, respectively, compared to its fair values of $120.7 million and $158.2 million as of December 31, 2018 and 2017, respectively. The fair value of the long-term debt was calculated using Level 1 inputs, including an active market price. Fair value measurements are applied with respect to non-financial assets and liabilities measured on a non-recurring basis, which would consist of measurements primarily of goodwill, intangibles assets, multi-client data library and property, plant and equipment and seismic rental equipment. |
Benefit Plans |
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Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans The Company has a 401(k) retirement savings plan, which covers substantially all employees. Employees may voluntarily contribute up to 60% of their compensation, as defined, to the plan. The Company matched the employee contribution at a rate of 50% of the first 6% of compensation contributed to the plan. Company contributions to the plans were $0.9 million, $0.8 million and $0.8 million, during 2018, 2017 and 2016, respectively. |
Selected Quarterly Information (Unaudited) |
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Selected Quarterly Information (Unaudited) | Selected Quarterly Information — (Unaudited) A summary of selected quarterly information follows (in thousands, except per share amounts):
The sum of the quarterly per share information may not tie to per share information in the Consolidated Statements of Operations due to rounding. |
Certain Relationships and Related Party Transactions |
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Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Certain Relationships and Related Party Transactions | Certain Relationships and Related Party Transactions For 2018, 2017 and 2016, the Company recorded revenues from BGP of $4.9 million, $4.4 million and $3.6 million, respectively. Receivables due from BGP were $1.6 million and $0.6 million at December 31, 2018 and 2017, respectively. BGP owned approximately 10.6% of the Company’s outstanding common stock as of December 31, 2018. Mr. James M. Lapeyre, Jr. is the Chairman of the Board on ION’s board of directors and a significant equity owner of Laitram, L.L.C. (Laitram), and he has served as president of Laitram and its predecessors since 1989. Laitram is a privately-owned, New Orleans-based manufacturer of food processing equipment and modular conveyor belts. Mr. Lapeyre and Laitram together owned approximately 8.8% of the Company’s outstanding common stock as of December 31, 2018. The Company acquired DigiCourse, Inc., the Company’s marine positioning products business, from Laitram in 1998. In connection with that acquisition, the Company entered into a Continued Services Agreement with Laitram under which Laitram agreed to provide the Company certain bookkeeping, software, manufacturing and maintenance services. Manufacturing services consist primarily of machining of parts for the Company’s marine positioning systems. The term of this agreement expired in September 2001 but the Company continues to operate under its terms. In addition, from time to time, when the Company has requested, the legal staff of Laitram has advised the Company on certain intellectual property matters with regard to the Company’s marine positioning systems. During 2018 and 2017, the Company paid Laitram and its affiliates $0.4 million and $0.2 million, respectively, which consisted of manufacturing services and reimbursement of costs. During 2016, the Company paid less than $0.1 million for reimbursement for costs related to providing administrative and other back-office support services in connection with the Company’s Louisiana marine operations. In addition, the Company is currently subleasing approximately 4,100 square feet of office space to Laitram. In the opinion of the Company’s management, the terms of these services are fair and reasonable and as favorable to the Company as those that could have been obtained from unrelated third parties at the time of their performance. |
Condensed Consolidating Financial Information |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Financial Information | Condensed Consolidating Financial Information The Second Lien Notes were issued by ION Geophysical Corporation, and are guaranteed by the Company’s current material U.S. subsidiaries: GX Technology Corporation, ION Exploration Products (U.S.A.), Inc. and I/O Marine Systems, Inc. (“the Guarantors”), all of which are wholly-owned subsidiaries. The Guarantors have fully and unconditionally guaranteed the payment obligations of ION Geophysical Corporation with respect to these debt securities. In August 2018, as part of the Company entering into the Third Amendment to its Credit Agreement, the Company joined the Mexican Subsidiary as a guarantor with respect to the Second Lien Notes. All periods period presented below have been updated to include the Mexican Subsidiary within The Guarantors column. The following condensed consolidating financial information presents the results of operations, financial position and cash flows for:
This condensed consolidating financial information should be read in conjunction with the accompanying consolidated financial statements and footnotes. For additional information pertaining to the Notes, see Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part 2 of this Form 10-K.
The following table is a reconciliation of cash, cash equivalents and restricted cash:
The following table is a reconciliation of cash, cash equivalents and restricted cash:
The following table is a reconciliation of cash, cash equivalents and restricted cash:
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VALUATION AND QUALIFYING ACCOUNTS |
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Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II ION GEOPHYSICAL CORPORATION AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS
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Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||
General Description and Principles of Consolidation | General Description and Principles of Consolidation ION Geophysical Corporation and its subsidiaries offer a full suite of services and products for seismic data acquisition and processing. The consolidated financial statements include the accounts of ION Geophysical Corporation and its majority-owned subsidiaries (collectively referred to as the “Company” or “ION”). Intercompany balances and transactions have been eliminated. Certain reclassifications were made to previously reported amounts in the consolidated financial statements and notes thereto to make them consistent with the current period presentation. |
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates are made at discrete points in time based on relevant market information. These estimates may be subjective in nature and involve uncertainties and matters of judgment and, therefore, cannot be determined with precision. Areas involving significant estimates include, but are not limited to, accounts and unbilled receivables, inventory valuation, sales forecasts related to multi-client data libraries, goodwill and intangible asset valuation and deferred taxes. Actual results could materially differ from those estimates. |
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Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company places its temporary cash investments with high credit quality financial institutions. At times such investments may be in excess of the Federal Deposit Insurance Corporation insurance limit. |
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Accounts and Unbilled Receivables | Accounts and Unbilled Receivables Accounts and unbilled receivables are recorded at cost, less the related allowance for doubtful accounts. The Company considers current information and events regarding the customers’ ability to repay their obligations, such as the length of time the receivable balance is outstanding, the customers’ credit worthiness and historical experience. Unbilled receivables relate to revenues recognized on multi-client surveys, imaging services and devices equipment repairs on a proportionate basis, and on licensing of multi-client data libraries for which invoices have not yet been presented to the customer. |
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Accounts and Unbilled Receivables | Accounts and Unbilled Receivables Accounts and unbilled receivables are recorded at cost, less the related allowance for doubtful accounts. The Company considers current information and events regarding the customers’ ability to repay their obligations, such as the length of time the receivable balance is outstanding, the customers’ credit worthiness and historical experience. Unbilled receivables relate to revenues recognized on multi-client surveys, imaging services and devices equipment repairs on a proportionate basis, and on licensing of multi-client data libraries for which invoices have not yet been presented to the customer. |
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Inventories | Inventories Inventories are stated at the lower of cost (primarily first-in, first-out method) or net realizable value. The Company provides reserves for estimated obsolescence or excess inventory equal to the difference between cost of inventory and its estimated net realizable value based upon assumptions about future demand for the Company’s products, market conditions and the risk of obsolescence driven by new product introductions. |
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Property, Plant, Equipment and Seismic Rental Equipment | Property, Plant, Equipment and Seismic Rental Equipment Property, plant, equipment and seismic rental equipment are stated at cost. Depreciation expense is provided straight-line over the following estimated useful lives:
Expenditures for renewals and betterments are capitalized; repairs and maintenance are charged to expense as incurred. The cost and accumulated depreciation of assets sold or otherwise disposed of are removed from the accounts and any gain or loss is reflected in operating expenses. The Company evaluates the recoverability of long-lived assets, including property, plant, equipment and seismic rental equipment, when indicators of impairment exist, relying on a number of factors including operating results, business plans, economic projections and anticipated future cash flows. Impairment in the carrying value of an asset held for use is recognized whenever anticipated future undiscounted cash flows from an asset are estimated to be less than its carrying value. The amount of the impairment recognized is the difference between the carrying value of the asset and its fair value. For 2018, the Company identified an indicator of impairment as it relates to its cable-based ocean bottom acquisition technologies. |
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Multi-Client Data Library | Multi-Client Data Library The multi-client data library consists of seismic surveys that are offered for licensing to customers on a non-exclusive basis. The capitalized costs include costs paid to third parties for the acquisition of data and related activities associated with the data creation activity and direct internal processing costs, such as salaries, benefits, computer-related expenses and other costs incurred for seismic data project design and management. The Company’s method of amortizing the costs of an in-process multi-client data library (the period during which the seismic data is being acquired and/or processed, referred to as the “New Venture” phase) consists of determining the percentage of actual revenue recognized to the total estimated revenues (which includes both revenues estimated to be realized during the New Venture phase and estimated revenues from the licensing of the resulting “on-the-shelf” data survey) and multiplying that percentage by the total cost of the project (the sales forecast method). The Company considers a multi-client data survey to be complete when all work on the creation of the seismic data is finished and that data survey is available for licensing. Once a multi-client data survey is complete, the data survey is considered “on-the-shelf” and the Company’s method of amortization is then the greater of (i) the sales forecast method or (ii) the straight-line basis over a four-year period. The greater amount of amortization resulting from the sales forecast method or the straight-line amortization policy is applied on a cumulative basis at the individual survey level. Under this policy, the Company first records amortization using the sales forecast method. The cumulative amortization recorded for each survey is then compared with the cumulative straight-line amortization. The four-year period utilized in this cumulative comparison commences when the data survey is determined to be complete. If the cumulative straight-line amortization is higher for any specific survey, additional amortization expense is recorded, resulting in accumulated amortization being equal to the cumulative straight-line amortization for such survey. The Company has determined the amortization period of four years based upon its historical experience that indicates that the majority of its revenues from multi-client surveys are derived during the acquisition and processing phases and during four years subsequent to survey completion. The Company estimates the ultimate revenue expected to be derived from a particular seismic data survey over its estimated useful economic life to determine the costs to amortize, if greater than straight-line amortization. That estimate is made by the Company at the project’s initiation. For a completed multi-client survey, the Company reviews the estimate quarterly. If during any such review, the Company determines that the ultimate revenue for a survey is expected to be materially more or less than the original estimate of ultimate revenue for such survey, the Company decreases or increases (as the case may be) the amortization rate attributable to the future revenue from such survey. In addition, in connection with such reviews, the Company evaluates the recoverability of the multi-client data library, and, if required, records an impairment charge with respect to such data. |
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Equity Method Investment | Equity Method Investment The Company determined that INOVA Geophysical is a variable interest entity because the Company’s voting rights with respect to INOVA Geophysical are not proportionate to its ownership interest and substantially all of INOVA Geophysical’s activities are conducted on behalf of the Company and BGP, a related party to the Company. The Company is not the primary beneficiary of INOVA Geophysical because it does not have the power to direct the activities of INOVA Geophysical that most significantly impact its economic performance. Accordingly, the Company does not consolidate INOVA Geophysical, but instead accounts for INOVA Geophysical using the equity method of accounting. Under this method, an investment is carried at the acquisition cost, plus the Company’s equity in undistributed earnings or losses since acquisition, less distributions received. |
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Noncontrolling Interests | Noncontrolling Interests The Company has non-redeemable noncontrolling interests. Non-redeemable noncontrolling interests in majority-owned affiliates are reported as a separate component of equity in “Noncontrolling interests” in the Consolidated Balance Sheets. Net income attributable to noncontrolling interests is stated separately in the Consolidated Statements of Operations. The activity for this noncontrolling interest relates to proprietary processing projects in Brazil. |
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Goodwill | Goodwill Goodwill is allocated to reporting units, which are either the operating segment or one reporting level below the operating segment. For purposes of performing the impairment test for goodwill, the Company established the following reporting units: E&P Technology & Services, Optimization Software & Services, Devices and Ocean Bottom Integrated Technologies. The Company is required to evaluate the carrying value of its goodwill at least annually for impairment, or more frequently if facts and circumstances indicate that it is more likely than not impairment has occurred. The Company formally evaluates the carrying value of its goodwill for impairment as of December 31 for each of its reporting units. The Company first performs a qualitative assessment by evaluating relevant events or circumstances to determine whether it is more likely than not that the fair value of a reporting unit exceeds its carrying amount. If the Company is unable to conclude qualitatively that it is more likely than not that a reporting unit’s fair value exceeds its carrying value, then it will use a two-step quantitative assessment of the fair value of a reporting unit. To determine the fair value of these reporting units, the Company uses a discounted future returns valuation model, which includes a variety of level 3 inputs. The key inputs for the model include the operational three-year forecast for the Company and the then-current market discount factor. Additionally, the Company compares the sum of the estimated fair values of the individual reporting units less consolidated debt to the Company’s overall market capitalization as reflected by the Company’s stock price. If the carrying value of a reporting unit that includes goodwill is determined to be more than the fair value of the reporting unit, there exists the possibility of impairment of goodwill. An impairment loss of goodwill is measured in two steps by first allocating the fair value of the reporting unit to net assets and liabilities including recorded and unrecorded intangible assets to determine the implied carrying value of goodwill. The next step is to measure the difference between the carrying value of goodwill and the implied carrying value of goodwill, and, if the implied carrying value of goodwill is less than the carrying value of goodwill, an impairment loss is recorded equal to the difference. |
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Revenue from contracts with customers | Revenue From Contracts With Customers On January 1, 2018, the Company adopted Accounting Standards Codification Topic 606 - “Revenue from Contracts with Customers” and all the related amendments (“ASC 606”), using the modified retrospective method. This standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaborative arrangements and financial instruments. The adoption of ASC 606 did not have a material impact on the Consolidated Balance Sheets or Consolidated Statements of Operations for any of our reporting segments. |
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Research, Development and Engineering | Research, Development and Engineering Research, development and engineering costs primarily relate to activities that are designed to improve the quality of the subsurface image and overall acquisition economics of the Company’s customers. The costs associated with these activities are expensed as incurred. These costs include prototype material and field testing expenses, along with the related salaries and stock-based compensation, facility costs, consulting fees, tools and equipment usage and other miscellaneous expenses associated with these activities. |
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Stock-Based Compensation | Stock-Based Compensation The Company accounts for all stock-based payment awards issued to employees and directors, including employee stock options, restricted stocks units, restricted stocks and stock appreciation rights under the provisions of ASC 718 “Compensation – Stock Compensation” (“ASC 718”). The Company estimates the value of stock-based payment awards on the date of grant using an option pricing model such as Black-Scholes or Monte Carlo simulation. The determination of the fair value of stock-based payment awards is affected by the Company’s stock price as well as assumptions regarding a number of subjective variables. These variables include, but are not limited to, expected stock price volatility over the term of the awards, actual and projected stock-based instrument exercise behaviors, risk-free interest rate and expected dividends. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company recognizes stock-based compensation expense on the straight-line basis over the requisite service period of each award that are ultimately expected to vest. |
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Income Taxes | Income Taxes Income taxes are accounted for under the liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, including operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The Company records a valuation allowance when it is more likely than not that all or a portion of deferred tax assets will not be realized (see Footnote 7 “Income Taxes”). The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. |
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Debt issuance cost | Debt Issuance Costs The Company presents debt issuance costs related to a debt liability as a direct deduction from the carrying amount of that debt liability on the Consolidated Balance Sheets and amortizes such costs using the effective interest method whereas debt issuance costs related to line of credit arrangement is presented within “Other assets” on the Consolidated Balance Sheets and amortized ratably over the term of the line of credit arrangement, regardless of whether there are any outstanding borrowings on the line of credit arrangeme |
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Foreign Currency Gains and Losses | Foreign Currency Gains and Losses Assets and liabilities of the Company’s subsidiaries operating outside the United States that have a functional currency other than the U.S. dollar have been translated to U.S. dollars using the exchange rate in effect at the balance sheet date. Results of foreign operations have been translated using the average exchange rate during the periods of operation. Resulting translation adjustments have been recorded as a component of Accumulated Other Comprehensive Loss. Foreign currency transaction gains and losses, as they occur, are included in “Other income (expense), net” on the Consolidated Statements of Operations. |
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Concentration of Foreign Sales Risk | Concentration of Foreign Sales Risk The majority of the Company’s foreign sales are denominated in U.S. dollars. For 2018, 2017 and 2016, international sales comprised 75%, 76% and 78%, respectively, of total net revenues. Since 2008, global economic problems and uncertainties have generally increased in scope and nature. The volatility in oil prices have continued to impact the global market throughout 2018. To the extent that world events or economic conditions negatively affect the Company’s future sales to customers in many regions of the world, as well as the collectability of the Company’s existing receivables, the Company’s future results of operations, liquidity and financial condition would be adversely affected. |
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Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-2, “Leases (Topic 842)” which introduces the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. The guidance will be effective for annual reporting periods beginning after December 15, 2018 and interim periods within those fiscal years with early adoption permitted. The Company will adopt ASU 2016-2 on January 1, 2019 using the modified retrospective method. The Company has completed its evaluation of operating leases related to offices, processing centers, warehouse spaces and, to a lesser extent, certain equipment. The Company expects the adoption of the standard will result in approximately $50 million to $60 million in right-of-use assets and lease obligations on the Consolidated Balance Sheets. The Company expects the Income Statement recognition to appear similar to its current methodology. The Company will elect the practical expedients upon transition which will retain the lease classification for leases and any unamortized initial direct costs that existed prior to the adoption of the standard. On January 1, 2018, the Company adopted ASC 606 and all the related amendments using the modified retrospective method. The adoption did not have a material impact to the Company’s revenue recognition policy under the previous standard and adoption of the new standard did not result in an adjustment to the Company’s beginning retained earnings balance. On January 1, 2018, the Company adopted ASU 2016-18, Statement of Cash Flows “Restricted Cash (a consensus of the FASB Emerging Issues Task Force)”, using a retrospective transition method to each period presented. The new standard no longer requires the Company to present transfers between cash and cash equivalents and restricted cash in the statements of cash flows. Adoption of the new standard resulted in a decrease of $0.4 million and $0.6 million in net cash provided by operating activities as previously reported for the years ended December 31, 2017 and 2016, respectively. See the Consolidated Statements of Cash Flows above which includes a reconciliation of cash and cash equivalents to total cash, cash equivalents, and restricted cash. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments.” The guidance will replace the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates The guidance is effective for public companies for interim and annual periods beginning after December 15, 2019, with early adoption permitted for interim and annual periods beginning after December 15, 2018. The Company is in the initial stages of evaluating the impact of this standard on the Consolidated Financial Statements. |
Summary of Significant Accouting Policies (Tables) |
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Property, Plant, Equipment and Seismic Rental Equipment | Property, plant, equipment and seismic rental equipment are stated at cost. Depreciation expense is provided straight-line over the following estimated useful lives:
A summary of property, plant, equipment and seismic rental equipment follows (in thousands):
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Schedule of Multi-Client Data Library | At December 31, 2018 and 2017, multi-client data library costs and accumulated amortization consisted of the following (in thousands):
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Segment and Geographic Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Information | A summary of segment information follows (in thousands):
(a) Includes a charge of $36.6 million to write-down the cable-based ocean bottom acquisition technologies associated with the Ocean Bottom Integrated Technologies segment. This impairment relates to property, plant, equipment and seismic rental equipment of $21.3 million within the Operations Optimization segment and $15.3 million within the Ocean Bottom Integrated Technologies segment.
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Schedule of Depreciation and Amortization by Segments |
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Segment Reporting of Assets by Segments and Geographical Areas |
(a) Balance is net of impairment charge of $36.6 million related to the cable-based ocean bottom acquisition technologies. A summary of total assets by geographic area follows (in thousands):
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Schedule of Fixed Assets Less Accumulated Depreciation by Geographic Area | A summary of property, plant, equipment and seismic equipment less accumulated depreciation and impairment by geographic area follows (in thousands):
(a) Balance is net of impairment charge of $36.6 million related to the cable-based ocean bottom acquisition technologies. |
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Summary of Net Revenues by Geographic Area | A summary of net revenues by geographic area follows (in thousands):
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Revenue from Contracts with Customers (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract with Customer, Asset and Liability | The following table is a summary of deferred revenues (in thousands):
The changes in deferred revenues were as follows (in thousands):
(a) The majority of deferred revenue recognized relates to Company’s Ventures group. The following table is a summary of unbilled receivables (in thousands):
The changes in unbilled receivables were as follows (in thousands):
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Long-term Debt and Lease Obligations (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Obligations | The following is a summary of long-term debt and lease obligation (in thousands):
(a) The maturity of the revolving credit facility will accelerate to December 15, 2021 if the Company is unable to repay or extend the maturity of the Second Lien Notes. |
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Debt Instrument Redemption Percentages | On or after December 15, 2019, the Company may on one or more occasions redeem all or a part of the Second Lien Notes at the redemption prices set forth below, plus accrued and unpaid interest and special interest, if any, on the Second Lien Notes redeemed during the twelve-month period beginning on December 15th of the years indicated below:
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Equipment Capital Leases | A summary of future principal obligations under long-term debt and equipment capital lease obligations follows (in thousands):
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sources of income (loss) before income taxes | The sources of income (loss) before income taxes are as follows (in thousands):
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Components of income taxes | Components of income taxes are as follows (in thousands):
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Reconciliation of the expected income tax expense on income (loss) before income taxes using the statutory federal income tax | A reconciliation of the expected income tax expense on income (loss) before income taxes using the statutory federal income tax rate of 21% for 2018 and 35% for 2017 and 2016 to income tax expense follows (in thousands):
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Tax effects of the cumulative temporary differences resulting in the net deferred income tax asset (liability) | The tax effects of the cumulative temporary differences resulting in the net deferred income tax asset (liability) are as follows (in thousands):
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Aggregate changes in gross amount of unrecognized tax benefits | During 2018, 2017 and 2016, the aggregate changes in the Company’s total gross amount of unrecognized tax benefits are summarized as follows (in thousands):
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Other Income (Expense) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Income (Expense) | A summary of other income (expense) follows (in thousands):
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Details of Selected Balance Sheet Accounts (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of accounts receivable |
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Summary of inventories |
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Summary of property, plant, equipment and seismic rental equipment | Property, plant, equipment and seismic rental equipment are stated at cost. Depreciation expense is provided straight-line over the following estimated useful lives:
A summary of property, plant, equipment and seismic rental equipment follows (in thousands):
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Summary of accrued expenses |
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Goodwill (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the carrying amount of goodwill | The following is a summary of the changes in the carrying amount of goodwill for the years ended December 31, 2018 and 2017 (in thousands):
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Stockholder's Equity and Stock-based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transactions Under the Stock Option Plans | Transactions under the stock option plans are summarized as follows:
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Summary of Stock Options Outstanding | Stock options outstanding at December 31, 2018 are summarized as follows:
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Additional Information Related to the Company's Stock Options | Additional information related to the Company’s stock options follows:
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Schedule of Valuation Assumptions | The Company calculated the fair value of each stock option on the date of grant using the Black-Scholes option pricing model. The following assumptions were used for each respective period:
The following assumptions were used:
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Status of the Company's Restricted Stock and Restricted Stock Unit Awards | The status of the Company’s restricted stock and restricted stock unit awards for 2018 follows:
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Schedule of Share-based Compensation, Stock Appreciation Rights Award Activity | Additional information related to the Company's SARs follows:
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Summary of Stock-based Compensation Expense | The following tables summarizes stock-based compensation expense for the years ended December 31, 2018, 2017 and 2016 as follows (in thousands):
|
Supplemental Cash Flow Information and Non-Cash Activity (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information and Non-cash Activity | Supplemental disclosure of cash flow information follows (in thousands):
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Operating Leases (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||
Leases, Operating [Abstract] | |||||||||||||||||||||||||||||||||||||
Future Rental Commitments Over the Next Five Years Under Non-cancelable Operating Leases | A summary of future rental commitments over the next five years under non-cancelable operating leases follows (in thousands):
|
Selected Quarterly Information (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of selected quarterly information | A summary of selected quarterly information follows (in thousands, except per share amounts):
|
Condensed Consolidating Financial Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Balance Sheet |
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Condensed Income Statement |
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Condensed Cash Flow Statement |
The following table is a reconciliation of cash, cash equivalents and restricted cash:
The following table is a reconciliation of cash, cash equivalents and restricted cash:
The following table is a reconciliation of cash, cash equivalents and restricted cash:
|
Summary of Significant Accounting Policies - Cash and Cash Equivalents and Foreign Currency Gains (Losses) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Cash and Cash Equivalents [Abstract] | |||
Short-term restricted cash | $ 0.3 | $ 0.4 | |
Foreign Currency Gains and Losses | |||
Total foreign currency transaction gains (losses) | $ (0.4) | $ (1.6) | $ (3.3) |
Summary of Significant Accounting Policies - Property, Plant, Equipment and Seismic Rental Equipment Useful Lives (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Property, Plant and Equipment [Line Items] | |||
Impairment charges recognized | $ 36,553 | $ 0 | $ 0 |
Machinery and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment useful life | 3 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment useful life | 7 years | ||
Buildings | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment useful life | 5 years | ||
Buildings | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment useful life | 25 years | ||
Seismic rental equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment useful life | 3 years | ||
Seismic rental equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment useful life | 5 years | ||
Leased equipment and other | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment useful life | 3 years | ||
Leased equipment and other | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment useful life | 10 years |
Summary of Signigicant Accounting Policies - Multi-client Data Library Costs and Accumulated Amortization (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|---|
Accounting Policies [Abstract] | |||
Multi-client data library capitalized income | $ 11,900 | $ 12,700 | $ 6,600 |
Multi Client Data Creation Cost [Abstract] | |||
Gross costs of multi-client data creation | 972,309 | 939,077 | |
Less accumulated amortization | (776,860) | (727,872) | |
Less impairments to multi-client data library | (121,905) | (121,905) | |
Multi-client data library, net | $ 73,544 | $ 89,300 |
Summary of Significant Accoutning Policies - Equity Method Investment (Details) - INOVA Geophysical - USD ($) |
Dec. 31, 2018 |
Dec. 31, 2014 |
---|---|---|
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, Accumulated other comprehensive loss | $ 0 | |
Equity method investments | $ 0 |
Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets (Details) |
12 Months Ended |
---|---|
Dec. 31, 2018 | |
Goodwill | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Operational forecast period used in fair value inputs | 3 years |
Summary of Significant Accounting Policies - Concentration of Foreign Sales Risk (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Geographic Concentration Risk | Sales Revenue, Net | Non-US | |||
Concentration Risk [Line Items] | |||
International sales comprised of total net revenue | 75.00% | 76.00% | 78.00% |
Segment and Geographic Information - Summary of Segment Information (Details) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018
USD ($)
|
Sep. 30, 2018
USD ($)
|
Jun. 30, 2018
USD ($)
|
Mar. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
Sep. 30, 2017
USD ($)
|
Jun. 30, 2017
USD ($)
|
Mar. 31, 2017
USD ($)
|
Dec. 31, 2018
USD ($)
segment
|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
|
Segment Reporting Information [Line Items] | |||||||||||
Number of operating segments | segment | 3 | ||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Net revenues | $ 74,594 | $ 47,200 | $ 24,743 | $ 33,508 | $ 57,902 | $ 61,095 | $ 46,001 | $ 32,556 | $ 180,045 | $ 197,554 | $ 172,808 |
Gross profit (loss): | 37,809 | 16,475 | (1,517) | 6,853 | 23,811 | 30,109 | 15,618 | 6,101 | $ 59,620 | $ 75,639 | $ 36,032 |
Gross margin: | 33.00% | 38.00% | 21.00% | ||||||||
Income (loss) from operations: | (16,661) | (2,452) | (22,519) | (12,640) | (1,151) | 9,936 | (3,572) | (13,912) | $ (54,272) | $ (8,699) | $ (43,171) |
Interest expense, net | (3,203) | (3,022) | (2,911) | (3,836) | (4,045) | (3,959) | (4,241) | (4,464) | (12,972) | (16,709) | (18,485) |
Other income (expense), net | $ 180 | $ 91 | $ 84 | $ (791) | $ 209 | $ 722 | $ 192 | $ (5,068) | (436) | (3,945) | 1,350 |
Loss before income taxes | (67,680) | (29,353) | (60,306) | ||||||||
Impairment of long-lived assets | 36,553 | 0 | 0 | ||||||||
E&P Technology & Services | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Net revenues | 136,520 | 157,249 | 92,889 | ||||||||
Gross profit (loss): | $ 43,369 | $ 65,196 | $ 4,708 | ||||||||
Gross margin: | 32.00% | 41.00% | 5.00% | ||||||||
E&P Technology & Services | New Venture and Data Library | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Net revenues | $ 116,780 | $ 140,840 | $ 67,351 | ||||||||
E&P Technology & Services | New Venture | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Net revenues | 69,685 | 100,824 | 27,362 | ||||||||
E&P Technology & Services | Data Library | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Net revenues | 47,095 | 40,016 | 39,989 | ||||||||
E&P Technology & Services | Imaging Services | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Net revenues | 19,740 | 16,409 | 25,538 | ||||||||
Operations Optimization | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Net revenues | 43,525 | 40,305 | 43,502 | ||||||||
Gross profit (loss): | $ 22,293 | $ 20,076 | $ 21,745 | ||||||||
Gross margin: | 51.00% | 50.00% | 50.00% | ||||||||
Impairment of long-lived assets | $ 21,300 | ||||||||||
Operations Optimization | Devices | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Net revenues | 22,396 | $ 23,610 | $ 26,746 | ||||||||
Operations Optimization | Optimization Software & Services | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Net revenues | 21,129 | 16,695 | 16,756 | ||||||||
Ocean Bottom Integrated Technologies | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Net revenues | 0 | 0 | 36,417 | ||||||||
Gross profit (loss): | $ (6,042) | $ (9,633) | $ 9,579 | ||||||||
Gross margin: | 0.00% | 0.00% | 26.00% | ||||||||
Impairment of long-lived assets | $ 15,300 | ||||||||||
Operating segments | E&P Technology & Services | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Income (loss) from operations: | 21,758 | $ 42,505 | $ (16,446) | ||||||||
Operating segments | Operations Optimization | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Income (loss) from operations: | 7,295 | 8,022 | 9,652 | ||||||||
Operating segments | Ocean Bottom Integrated Technologies | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Income (loss) from operations: | (47,644) | (16,259) | (1,756) | ||||||||
Support and other | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Income (loss) from operations: | $ (35,681) | $ (42,967) | $ (34,621) |
Segment and Geographic Information - Depreciation and Amortization (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Segment Reporting Information [Line Items] | |||
Depreciation and amortization (including multi-client data library): | $ 57,751 | $ 63,694 | $ 55,310 |
Operating segments | E&P Technology & Services | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization (including multi-client data library): | 51,673 | 53,663 | 44,100 |
Operating segments | Operations Optimization | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization (including multi-client data library): | 995 | 1,349 | 1,780 |
Operating segments | Ocean Bottom Integrated Technologies | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization (including multi-client data library): | 4,231 | 7,001 | 7,511 |
Support and other | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization (including multi-client data library): | $ 852 | $ 1,681 | $ 1,919 |
Segment and Geographic Information - Summary of Total Assets (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Segment Reporting Information [Line Items] | |||
Total assets | $ 244,749 | $ 301,069 | |
Impairment of long-lived assets | 36,553 | 0 | $ 0 |
North America | |||
Segment Reporting Information [Line Items] | |||
Total assets | 86,614 | 116,598 | |
Latin America | |||
Segment Reporting Information [Line Items] | |||
Total assets | 69,418 | 55,661 | |
Middle East | |||
Segment Reporting Information [Line Items] | |||
Total assets | 52,037 | 70,308 | |
Europe | |||
Segment Reporting Information [Line Items] | |||
Total assets | 31,566 | 51,876 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Total assets | 5,114 | 6,626 | |
Operations Optimization | |||
Segment Reporting Information [Line Items] | |||
Impairment of long-lived assets | 21,300 | ||
Ocean Bottom Integrated Technologies | |||
Segment Reporting Information [Line Items] | |||
Impairment of long-lived assets | 15,300 | ||
Operating segments | E&P Technology & Services | |||
Segment Reporting Information [Line Items] | |||
Total assets | 165,132 | 156,555 | |
Operating segments | Operations Optimization | |||
Segment Reporting Information [Line Items] | |||
Total assets | 51,783 | 74,361 | |
Operating segments | Ocean Bottom Integrated Technologies | |||
Segment Reporting Information [Line Items] | |||
Total assets | 1,177 | 20,828 | |
Support and other | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 26,657 | $ 49,325 |
Segment and Geographic Information - Fixed Assets Less Accumulated Depreciation by Geographic Area (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Segment Reporting Information [Line Items] | |||
Total fixed assets less accumulated deprecation by geographic area | $ 13,041 | $ 52,153 | |
Impairment of long-lived assets | 36,553 | 0 | $ 0 |
North America | |||
Segment Reporting Information [Line Items] | |||
Total fixed assets less accumulated deprecation by geographic area | 11,663 | 10,609 | |
Europe | |||
Segment Reporting Information [Line Items] | |||
Total fixed assets less accumulated deprecation by geographic area | 1,140 | 20,725 | |
Latin America | |||
Segment Reporting Information [Line Items] | |||
Total fixed assets less accumulated deprecation by geographic area | 143 | 170 | |
Middle East | |||
Segment Reporting Information [Line Items] | |||
Total fixed assets less accumulated deprecation by geographic area | 36 | 20,543 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Total fixed assets less accumulated deprecation by geographic area | $ 59 | $ 106 |
Segment and Geographic Information - Net Revenues by Geographic Area (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Summary of net revenues by geographic area | |||||||||||
Net revenues | $ 74,594 | $ 47,200 | $ 24,743 | $ 33,508 | $ 57,902 | $ 61,095 | $ 46,001 | $ 32,556 | $ 180,045 | $ 197,554 | $ 172,808 |
Latin America | |||||||||||
Summary of net revenues by geographic area | |||||||||||
Net revenues | 68,871 | 68,241 | 24,090 | ||||||||
North America | |||||||||||
Summary of net revenues by geographic area | |||||||||||
Net revenues | 44,474 | 48,120 | 38,005 | ||||||||
Europe | |||||||||||
Summary of net revenues by geographic area | |||||||||||
Net revenues | 31,077 | 44,930 | 41,674 | ||||||||
Asia Pacific | |||||||||||
Summary of net revenues by geographic area | |||||||||||
Net revenues | 17,817 | 18,896 | 16,226 | ||||||||
Africa | |||||||||||
Summary of net revenues by geographic area | |||||||||||
Net revenues | 10,837 | 6,837 | 41,417 | ||||||||
Middle East | |||||||||||
Summary of net revenues by geographic area | |||||||||||
Net revenues | 5,526 | 2,308 | 9,467 | ||||||||
Commonwealth of Independent States | |||||||||||
Summary of net revenues by geographic area | |||||||||||
Net revenues | $ 1,443 | $ 8,222 | $ 1,929 |
Revenue from Contracts with Customers - Narrative (Details) |
12 Months Ended |
---|---|
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Time period of contractual future performance obligations for which value not disclosed (or less) | 1 year |
Time period of contractual future performance obligations | For these usage-based licenses, revenue is recognized as the performance obligations are performed over the contract term, which is generally two to five years. |
Revenue from Contracts with Customers - Unbilled Receivables by Service (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Disaggregation of Revenue [Line Items] | ||
Unbilled receivables | $ 44,032 | $ 37,304 |
New Venture | ||
Disaggregation of Revenue [Line Items] | ||
Unbilled receivables | 38,430 | 33,183 |
Imaging Services | ||
Disaggregation of Revenue [Line Items] | ||
Unbilled receivables | 5,075 | 4,121 |
Devices | ||
Disaggregation of Revenue [Line Items] | ||
Unbilled receivables | $ 527 | $ 0 |
Revenue from Contracts with Customers - Unbilled Receivables (Details) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2018
USD ($)
| |
Unbilled Revenues [Roll Forward] | |
Unbilled receivables at December 31, 2017 | $ 37,304 |
Recognition of unbilled receivables | 153,611 |
Revenues billed to customers | (146,883) |
Unbilled receivables at December 31, 2018 | $ 44,032 |
Revenue from Contracts with Customers - Deferred Revenue by Service (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | $ 7,710 | $ 8,910 |
New Venture | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | 5,797 | 6,548 |
Imaging Services | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | 307 | 676 |
Devices | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | 626 | 633 |
Optimization Software & Services | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | $ 980 | $ 1,053 |
Revenue from Contracts with Customers - Deferred Revenue (Details) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2018
USD ($)
| |
Revenue, Remaining Performance Obligation [Roll Forward] | |
Deferred revenue at December 31, 2017 | $ 8,910 |
Cash collected in excess of revenue recognized | 25,234 |
Recognition of deferred revenue | (26,434) |
Deferred revenue at December 31, 2018 | $ 7,710 |
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Jan. 01, 2019 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net cash provided by operating activities | $ 7,098 | $ 27,612 | $ 993 | |
Accounting Standards Update 2016-18 | Restatement Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net cash provided by operating activities | $ (400) | $ (600) | ||
Minimum | Accounting Standards Update 2016-02 | Pro Forma | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Right-of-use asset | $ 50,000 | |||
Lease liability | 50,000 | |||
Maximum | Accounting Standards Update 2016-02 | Pro Forma | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Right-of-use asset | 60,000 | |||
Lease liability | $ 60,000 |
Long-term Debt and Lease Obligations - Obligations (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
Apr. 28, 2016 |
---|---|---|---|
Obligations | |||
Costs associated with issuances of debt | $ (2,925) | $ (3,983) | |
Total | 121,741 | 156,744 | |
Current portion of long-term debt and lease obligations | (2,228) | (40,024) | |
Non-current portion of long-term debt and lease obligations | 119,513 | 116,720 | |
Senior secured notes | Senior secured second-priority lien notes (maturing December 15, 2021) | |||
Obligations | |||
Long-term debt, gross | 120,569 | 120,569 | |
Total | $ 120,600 | ||
Senior secured notes | Senior secured third-priority lien notes (redeemed March 26, 2018) | |||
Obligations | |||
Long-term debt, gross | 0 | 28,497 | |
Total | $ 28,500 | ||
Revolving credit facility (amended August 16, 2018, maturing August 16, 2023) (a) | |||
Obligations | |||
Long-term debt, gross | 0 | 10,000 | |
Equipment capital leases | |||
Obligations | |||
Long-term debt, gross | 2,938 | 279 | |
Other debt | |||
Obligations | |||
Long-term debt, gross | $ 1,159 | $ 1,382 |
Long-term Debt and Lease Obligations - Narrative (Details) |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Aug. 16, 2018
USD ($)
|
Apr. 28, 2016
USD ($)
|
Dec. 31, 2018
USD ($)
|
Aug. 15, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
May 31, 2013 |
|
Debt Instrument [Line Items] | ||||||
Aggregate principal amount of debt | $ 121,741,000 | $ 156,744,000 | ||||
Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Interest accrues under the capital leases | 4.32% | |||||
Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Interest accrues under the capital leases | 8.70% | |||||
Line of credit | Revolving credit facility (amended August 16, 2018, maturing August 16, 2023) (a) | PNC Bank, National Association (PNC) | ||||||
Debt Instrument [Line Items] | ||||||
Debt term | 4 years | |||||
Amount of increase in maximum revolver | $ 10,000,000 | |||||
Maximum amount of certain indebtedness | 50,000,000 | $ 50,000,000 | $ 40,000,000 | |||
Current borrowing capacity | 41,900,000 | |||||
Indebtedness under the Credit Facility | 0 | |||||
Required liquidity maintained five consecutive business days | 6,250,000 | 7,500,000 | ||||
Required liquidity maintained any business day | 5,000,000 | $ 6,500,000 | ||||
Line of credit | Revolving credit facility (amended August 16, 2018, maturing August 16, 2023) (a) | PNC Bank, National Association (PNC) | Subsidiary Issuer | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of obligations secured by stock of Subsidiary Borrowers | 100.00% | |||||
Line of credit | Revolving credit facility (amended August 16, 2018, maturing August 16, 2023) (a) | PNC Bank, National Association (PNC) | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Fixed charge coverage ratio | 1.1 | |||||
Line of credit | Revolving credit facility (amended August 16, 2018, maturing August 16, 2023) (a) | PNC Bank, National Association (PNC) | GX Geoscience Corporation, S. De R.L. De C.V. [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum amount of certain indebtedness | $ 5,000,000 | |||||
Line of credit | Revolving credit facility (amended August 16, 2018, maturing August 16, 2023) (a) | PNC Bank, National Association (PNC) | ION International Holdings L.P. | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of obligations secured by stock of Subsidiary Borrowers | 65.00% | |||||
Line of credit | Revolving credit facility (amended August 16, 2018, maturing August 16, 2023) (a) | PNC Bank, National Association (PNC) | Base Rate | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.00% | |||||
Line of credit | Revolving credit facility (amended August 16, 2018, maturing August 16, 2023) (a) | PNC Bank, National Association (PNC) | Base Rate | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 3.00% | |||||
Line of credit | Revolving credit facility (amended August 16, 2018, maturing August 16, 2023) (a) | PNC Bank, National Association (PNC) | LIBOR | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 3.00% | |||||
Line of credit | Revolving credit facility (amended August 16, 2018, maturing August 16, 2023) (a) | PNC Bank, National Association (PNC) | LIBOR | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 4.00% | |||||
Senior secured notes | ||||||
Debt Instrument [Line Items] | ||||||
Stated rate on debt | 8.125% | |||||
Senior secured notes | Senior secured third-priority lien notes (redeemed March 26, 2018) | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount of debt | $ 28,500,000 | |||||
Senior secured notes | Senior secured second-priority lien notes (maturing December 15, 2021) | ||||||
Debt Instrument [Line Items] | ||||||
Stated rate on debt | 9.125% | 9.125% | ||||
Aggregate principal amount of debt | $ 120,600,000 | |||||
E&P Technology & Services | Data Library | Line of credit | Revolving credit facility (amended August 16, 2018, maturing August 16, 2023) (a) | ||||||
Debt Instrument [Line Items] | ||||||
Maximum amount of certain indebtedness | $ 28,500,000 | $ 15,000,000 |
Long-term Debt and Lease Obligations - Redemption Percentages for Future Periods (Details) - Senior secured notes - Senior secured second-priority lien notes (maturing December 15, 2021) - Forecast |
Dec. 15, 2019 |
---|---|
2019 | |
Debt Instrument, Redemption [Line Items] | |
Notes redemption percentages | 105.50% |
2020 | |
Debt Instrument, Redemption [Line Items] | |
Notes redemption percentages | 103.50% |
2021 and thereafter | |
Debt Instrument, Redemption [Line Items] | |
Notes redemption percentages | 100.00% |
Long-term Debt and Lease Obligations - Equipment Capital Leases (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Equipment Capital Leases | |
2019 | $ 2,228 |
2020 | 1,135 |
2021 | 121,303 |
Total | 124,666 |
Short-Term and Long-Term Debt | |
Equipment Capital Leases | |
2019 | 0 |
2020 | 0 |
2021 | 120,569 |
Total | 120,569 |
Capital Lease Obligations | |
Equipment Capital Leases | |
2019 | 1,069 |
2020 | 1,135 |
2021 | 734 |
Total | 2,938 |
Other Financing | |
Equipment Capital Leases | |
2019 | 1,159 |
2020 | 0 |
2021 | 0 |
Total | $ 1,159 |
Net Income (Loss) per Common Share (Details) - shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Earnings Per Share [Abstract] | |||
Number of shares issuable under anti-dilutive options (in shares) | 785,890 | 890,341 | 847,635 |
Income Taxes - Sources of Income (Loss) Before Taxes and Components of Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Sources of income (loss) before income taxes | |||||||||||
Domestic | $ (59,212) | $ (12,487) | $ (41,246) | ||||||||
Foreign | (8,468) | (16,866) | (19,060) | ||||||||
Loss before income taxes | (67,680) | (29,353) | (60,306) | ||||||||
Current: | |||||||||||
Federal | 0 | (166) | 0 | ||||||||
State and local | 65 | 116 | 28 | ||||||||
Foreign | 8,905 | 5,494 | 5,574 | ||||||||
Deferred: | |||||||||||
Federal | (346) | (1,263) | 0 | ||||||||
Foreign | (5,906) | (4,157) | (1,181) | ||||||||
Total income tax expense | $ (587) | $ 2,079 | $ 154 | $ 1,072 | $ (3,646) | $ 1,686 | $ 2,402 | $ (418) | $ 2,718 | $ 24 | $ 4,421 |
Income Taxes - Reconciliation of Expected Income Tax Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Reconciliation of the expected income tax expense on income (loss) before income taxes using the statutory federal income tax | |||||||||||
Expected income tax expense at 21% for 2018 and 35% for 2017 and 2016 | $ (14,213) | $ (10,274) | $ (21,107) | ||||||||
Foreign tax rate differential | 74 | (2,914) | 5,932 | ||||||||
Foreign tax differences | 4,703 | (5,610) | (4,828) | ||||||||
Global intangible low tax income inclusion | 3,443 | 0 | 0 | ||||||||
State and local taxes | 65 | 116 | 28 | ||||||||
Nondeductible expenses | 1,604 | 4,308 | (259) | ||||||||
Change in U.S. tax rate | 0 | 77,410 | 0 | ||||||||
Expired capital loss | 0 | 1,114 | 1,321 | ||||||||
Valuation allowance: | |||||||||||
Valuation allowance on expiring capital losses | 0 | (1,114) | (1,321) | ||||||||
Valuation allowance on operations | 7,042 | (63,012) | 24,655 | ||||||||
Total income tax expense | $ (587) | $ 2,079 | $ 154 | $ 1,072 | $ (3,646) | $ 1,686 | $ 2,402 | $ (418) | $ 2,718 | $ 24 | $ 4,421 |
Income Taxes - Tax Effects of Cumulative Temporary Differences (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Deferred income tax assets: | ||
Accrued expenses | $ 1,126 | $ 1,976 |
Allowance accounts | 6,415 | 2,960 |
Net operating loss carryforward | 96,854 | 87,705 |
Equity method investment | 35,292 | 35,292 |
Original issue discount | 8,073 | 9,624 |
Interest limitation | 5,845 | 0 |
Basis in identified intangibles | 4,146 | 9,408 |
Tax credit carryforwards | 5,345 | 6,929 |
Contingency accrual | 0 | 788 |
Other | 4,600 | 4,035 |
Total deferred income tax asset | 167,696 | 158,717 |
Valuation allowance | (160,505) | (153,463) |
Net deferred income tax asset | 7,191 | 5,254 |
Deferred income tax liabilities: | ||
Unbilled receivables | 0 | (3,501) |
Total deferred income tax asset, net | $ 7,191 | $ 1,753 |
Income Taxes - Narrative (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|---|---|
Operating Loss Carryforwards [Line Items] | ||||
Unrecognized tax benefits | $ 447 | $ 447 | $ 1,299 | $ 1,250 |
Outside book-over-tax basis difference in its foreign subsidiaries | 85,000 | |||
United States Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carry-forwards | 274,400 | |||
Foreign Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carry-forwards | $ 153,100 |
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 447 | $ 1,299 | $ 1,250 |
Increases in unrecognized tax benefits – current year positions | 0 | 59 | 49 |
Decreases in unrecognized tax benefits – prior year position | 0 | (911) | 0 |
Ending balance | $ 447 | $ 447 | $ 1,299 |
Legal Matters (Details) - WesternGeco |
12 Months Ended | ||||
---|---|---|---|---|---|
Mar. 14, 2017
USD ($)
|
Nov. 25, 2016
USD ($)
|
Dec. 31, 2018
USD ($)
Patent
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2015
USD ($)
|
|
Loss Contingencies [Line Items] | |||||
Number of claims invalidated | Patent | 4 | ||||
Number of claims | Patent | 6 | ||||
Settled Litigation | |||||
Loss Contingencies [Line Items] | |||||
Accrual for loss contingency related to legal proceedings | $ 0 | ||||
Total damages awarded | $ 5,000,000 | $ 9,400,000 | |||
Prejudgment interest expense accrued | 10,900,000 | ||||
Damages paid | $ 20,800,000 | ||||
Damages sought | $ 43,600,000 | ||||
Settled Litigation | Lost Royalties | |||||
Loss Contingencies [Line Items] | |||||
Total damages awarded | 12,500,000 | ||||
Settled Litigation | Lost Profits | |||||
Loss Contingencies [Line Items] | |||||
Accrual for loss contingency related to legal proceedings | 123,800,000 | $ 22,000,000 | |||
Total damages awarded | $ 93,400,000 |
Other Income (Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Other Income and Expenses [Abstract] | |||||||||||
(Accrual for) reduction of loss contingency related to legal proceedings (Footnote 8) | $ 0 | $ (5,000) | $ 1,168 | ||||||||
Recovery of INOVA bad debts | 0 | 844 | 3,983 | ||||||||
Loss on bond exchange | 0 | 0 | (2,182) | ||||||||
Other income (expense) | (436) | 211 | (1,619) | ||||||||
Total other income (expense), net | $ 180 | $ 91 | $ 84 | $ (791) | $ 209 | $ 722 | $ 192 | $ (5,068) | $ (436) | $ (3,945) | $ 1,350 |
Details of Selected Balance Sheet Accounts - Accounts Receivable (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts receivable, principally trade | $ 26,558 | $ 20,050 |
Less allowance for doubtful accounts | (430) | (572) |
Accounts receivable, net | $ 26,128 | $ 19,478 |
Details of Selected Balance Sheet Accounts - Inventories (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials and purchased subassemblies | $ 20,011 | $ 20,448 |
Work-in-process | 1,032 | 1,146 |
Finished goods | 8,111 | 7,953 |
Less reserve for excess and obsolete inventories | (15,024) | (15,039) |
Inventories, net | $ 14,130 | $ 14,508 |
Details of Selected Balance Sheet Accounts - Property, Plant and Equipment (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment | $ 183,228 | $ 195,987 | |
Less accumulated depreciation | (133,634) | (143,834) | |
Less impairment of long-lived assets | (36,553) | 0 | $ 0 |
Property, plant, equipment and seismic rental equipment, net | 13,041 | 52,153 | |
Depreciation and amortization under capital leases | 7,600 | 15,200 | $ 20,300 |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment | 15,707 | 15,822 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment | 132,135 | 145,654 | |
Seismic rental equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment | 1,423 | 1,677 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment | 3,859 | 3,869 | |
Other | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment | $ 30,104 | $ 28,965 |
Details of Selected Balance Sheet Accounts - Accrued Expenses (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Compensation, including compensation-related taxes and commissions | $ 14,502 | $ 19,809 |
Accrued multi-client data library acquisition costs | 3,746 | 5,104 |
Income tax payable | 7,577 | 1,868 |
Accrual for loss contingency related to legal proceedings (Footnote 8) | 0 | 3,750 |
Other | 5,586 | 8,166 |
Total accrued expenses | $ 31,411 | $ 38,697 |
Details of Selected Balance Sheet Accounts - Other Long-term Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Deferred lease liabilities | $ 11,465 | $ 12,811 |
Other | 429 | 1,115 |
Total | $ 11,894 | $ 13,926 |
Goodwill (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Changes in the carrying amount of goodwill | ||
Goodwill, balance beginning | $ 24,089 | $ 22,208 |
Impact of foreign currency translation adjustments | (1,174) | 1,881 |
Goodwill, balance ending | 22,915 | 24,089 |
E&P Technology & Services | ||
Changes in the carrying amount of goodwill | ||
Goodwill, balance beginning | 2,943 | 2,943 |
Impact of foreign currency translation adjustments | 0 | 0 |
Goodwill, balance ending | 2,943 | 2,943 |
Optimization Software & Services | ||
Changes in the carrying amount of goodwill | ||
Goodwill, balance beginning | 21,146 | 19,265 |
Impact of foreign currency translation adjustments | (1,174) | 1,881 |
Goodwill, balance ending | $ 19,972 | $ 21,146 |
Stockholder's Equity and Stock-based Compensation - Narrative (Details) |
1 Months Ended | 12 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 01, 2018
$ / shares
shares
|
May 30, 2018
$ / shares
shares
|
Feb. 21, 2018
$ / shares
shares
|
Dec. 14, 2017
$ / shares
shares
|
Mar. 01, 2016
individual
$ / shares
shares
|
Feb. 04, 2016 |
Mar. 01, 2015
individual
$ / shares
shares
|
Mar. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2018
USD ($)
$ / shares
shares
|
Dec. 31, 2017
USD ($)
$ / shares
shares
|
Dec. 31, 2016
USD ($)
$ / shares
|
Dec. 31, 2015
$ / shares
|
Nov. 30, 2018
shares
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Additional warrants purchased (in shares) | shares | 1,820,000 | |||||||||||||
Net proceeds from issuance of stocks | $ | $ 46,999,000 | $ 0 | $ 0 | |||||||||||
Extinguishment of debt | $ | $ 28,500,000 | |||||||||||||
Warrants exercise price (usd per share) | $ 33.60 | |||||||||||||
Total intrinsic value of options exercised | $ | 1,400,000 | 100,000 | 100,000 | |||||||||||
Cash received from option exercises | $ | $ 200,000 | $ 100,000 | $ 0 | |||||||||||
Weighted average grant date fair value for stock option awards (usd per share) | $ 15.23 | $ 8.10 | $ 2.04 | |||||||||||
Term of common stock used in determining market-based implied volatility | 6 months | |||||||||||||
Stock available for issuance (in shares) | shares | 1,700,000 | |||||||||||||
Outstanding, maximum (usd per share) | $ 151.35 | 245.85 | 245.85 | $ 245.85 | ||||||||||
Outstanding, minimum (usd per share) | $ 3.10 | $ 3.10 | $ 3.10 | $ 34.20 | ||||||||||
Reverse stock split ratio of one share | 0.066667 | |||||||||||||
Exercise of stock options (in shares) | shares | 70,086 | 15,000 | ||||||||||||
Stock-based compensation expense | $ | $ 3,337,000 | $ 2,552,000 | $ 3,267,000 | |||||||||||
2013 LTIP | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Stock available for issuance (in shares) | shares | 1,200,000 | |||||||||||||
Equity Investment Program | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Common stock purchased to restricted stock issued, ratio | 0.2 | |||||||||||||
Equity Investment Program | Executive officers and other key employees | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Stock options, award vesting period | 90 days | |||||||||||||
Number of common stock shares sold (in shares) | shares | 219,346 | |||||||||||||
Equity Investment Program | Private placement | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Price per share of common stock share sold (usd per share) | $ 13.05 | |||||||||||||
Number of common stock shares sold (in shares) | shares | 120,567 | |||||||||||||
Stock options | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Stock options, award vesting period | 4 years | |||||||||||||
Stock options, term in years | 10 years | |||||||||||||
Restricted stock and restricted stock unit | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Public equity offering (in shares) | shares | 900,002 | |||||||||||||
Stock options, award vesting period | 3 years | |||||||||||||
Weighted average price limit in vesting period (usd per share) | $ 24.75 | |||||||||||||
Intrinsic value of restricted stock and restricted stock unit awards | $ | $ 4,000,000 | $ 5,400,000 | $ 4,000,000 | $ 1,700,000 | ||||||||||
Weighted average grant date fair value for restricted stock and restricted stock unit awards (usd per share) | $ 10.60 | $ 11.36 | $ 3.81 | |||||||||||
Total fair value of shares vested | $ | $ 3,800,000 | $ 600,000 | $ 200,000 | |||||||||||
Shares vested (in shares) | shares | 43,865 | 151,852 | ||||||||||||
Restricted stock and restricted stock unit | First one-third of awards | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Weighted average grant date fair value for stock option awards (usd per share) | $ 7.19 | |||||||||||||
Weighted average price limit in vesting period (usd per share) | 17.50 | |||||||||||||
Restricted stock and restricted stock unit | Second one-third of awards | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Weighted average grant date fair value for stock option awards (usd per share) | 6.51 | |||||||||||||
Weighted average price limit in vesting period (usd per share) | 22.50 | |||||||||||||
Restricted stock and restricted stock unit | Final one-third of awards | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Weighted average grant date fair value for stock option awards (usd per share) | 5.89 | |||||||||||||
Weighted average price limit in vesting period (usd per share) | $ 27.50 | |||||||||||||
Stock appreciation rights (SARs) | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Public equity offering (in shares) | shares | 960,009 | |||||||||||||
Stock options, award vesting period | 4 years | 4 years | ||||||||||||
Stock options, term in years | 10 years | |||||||||||||
Weighted average grant date fair value for stock option awards (usd per share) | $ 8.85 | $ 17.55 | ||||||||||||
Exercise price of awards issued during period | $ 8.85 | $ 3.1 | $ 34.20 | |||||||||||
Maximum value of SARs (in dollars per share) | 18.65 | 19.40 | ||||||||||||
Outstanding, maximum (usd per share) | 27.50 | 22.50 | ||||||||||||
Outstanding, minimum (usd per share) | $ 8.85 | $ 3.10 | ||||||||||||
Number of awards issued during period | shares | 1,210,000 | 207,207 | ||||||||||||
Number of individuals that received SARs | individual | 15 | 16 | ||||||||||||
Percentage of fair market value of shares for calculation of exercise price SAR | 100.00% | |||||||||||||
Percentage of shares allowed to be exercised annually, if vested | 33.33% | 33.33% | ||||||||||||
Exercise of stock options (in shares) | shares | 34,999 | 713,330 | ||||||||||||
Number of days volume-weighted average price of stock measured for vesting | 20 days | |||||||||||||
Stock-based compensation expense | $ | $ 800,000 | $ 6,600,000 | $ 500,000 | |||||||||||
Stock appreciation rights (SARs) | Equity Investment Program | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Exercise of stock options (in shares) | shares | 663,330 | |||||||||||||
Participants gain on exercises of awards (usd per share) | $ 9.95 | |||||||||||||
Stock appreciation rights (SARs) | First one-third of awards | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Annual vesting percentage | 33.33% | 33.33% | ||||||||||||
Percentage that weighted average price of common stock must be greater than exercise price of SARs | 120.00% | 120.00% | ||||||||||||
Stock appreciation rights (SARs) | Second one-third of awards | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Annual vesting percentage | 33.33% | 33.33% | ||||||||||||
Percentage that weighted average price of common stock must be greater than exercise price of SARs | 125.00% | 125.00% | ||||||||||||
Stock appreciation rights (SARs) | Final one-third of awards | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Annual vesting percentage | 33.33% | 33.33% | ||||||||||||
Percentage that weighted average price of common stock must be greater than exercise price of SARs | 130.00% | 130.00% | ||||||||||||
Common Stock | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Public equity offering (in shares) | shares | 1,820,000 | 1,820,000 | ||||||||||||
Price per share of common stock share sold (usd per share) | $ 27.5 | |||||||||||||
Exercise of stock options (in shares) | shares | 70,086 | 15,000 |
Stockholder's Equity and Stock-based Compensation - Transactions Under Stock Option Plans Summary (Details) - $ / shares |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Option Price per Share | ||||
Outstanding, minimum (usd per share) | $ 3.10 | $ 3.10 | $ 3.10 | $ 34.20 |
Outstanding, maximum (usd per share) | 151.35 | 245.85 | 245.85 | $ 245.85 |
Granted, minimum (usd per share) | 24.50 | 13.15 | 3.10 | |
Granted, maximum (usd per share) | 24.50 | 13.15 | 3.10 | |
Exercised, minimum (usd per share) | 3.10 | 3.10 | ||
Exercised, maximum (usd per share) | 3.10 | 3.10 | ||
Cancelled/forfeited, minimum (usd per share) | 3.10 | 3.10 | 3.10 | |
Cancelled/forfeited, maximum (usd per share) | $ 245.85 | $ 245.85 | $ 245.85 | |
Outstanding | ||||
Beginning balance (in shares) | 890,341 | 847,635 | 560,797 | |
Granted (in shares) | 10,000 | 156,000 | 415,000 | |
Exercised (in shares) | (70,086) | (15,000) | ||
Cancelled/forfeited (in shares) | (44,365) | (98,294) | (128,162) | |
Ending balance (in shares) | 785,890 | 890,341 | 847,635 | 560,797 |
Vested | ||||
Vested, beginning balance (in shares) | 435,278 | 348,353 | 384,305 | |
Vested (in shares) | 153,944 | 149,537 | 67,480 | |
Exercised (in shares) | (70,086) | (15,000) | ||
Cancelled/forfeited (in shares) | (44,231) | (47,612) | (103,432) | |
Vested, ending balance (in shares) | 474,905 | 435,278 | 348,353 | 384,305 |
Available for Grant | ||||
Beginning balance (in shares) | 488,403 | 599,720 | 97,003 | |
Increase in shares authorized (in shares) | 1,200,000 | 1,150,940 | ||
Granted (in shares) | 10,000 | 156,000 | 415,000 | |
Cancelled/forfeited (in shares) | 2,568 | 82,118 | 18,895 | |
Restricted stock granted out of option plans (in shares) | (996,775) | (59,500) | (259,300) | |
Restricted stock forfeited or cancelled for employee minimum income taxes and returned to the plans (in shares) | 48,524 | 22,065 | 7,182 | |
Ending balance (in shares) | 732,720 | 488,403 | 599,720 | 97,003 |
Stockholder's Equity and Stock-based Compensation - Stock Options Outstanding by Price Range (Details) - $ / shares |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Summary of stock options outstanding | ||||
Option Price per Share, minimum (usd per share) | $ 3.10 | $ 3.10 | $ 3.10 | $ 34.20 |
Option Price per Share, maximum (usd per share) | $ 151.35 | $ 245.85 | $ 245.85 | $ 245.85 |
Outstanding (in shares) | 785,890 | |||
Weighted Average Exercise Price of Outstanding Options (usd per share) | $ 35.33 | |||
Weighted Average Remaining Contract Life | 5 years 4 months 24 days | |||
Vested (in shares) | 474,905 | |||
Weighted Average Exercise Price of Vested Options (usd per share) | $ 52.76 | |||
$3.10 - $57.90 | ||||
Summary of stock options outstanding | ||||
Option Price per Share, minimum (usd per share) | 3.10 | |||
Option Price per Share, maximum (usd per share) | $ 57.90 | |||
Outstanding (in shares) | 558,997 | |||
Weighted Average Exercise Price of Outstanding Options (usd per share) | $ 15.64 | |||
Weighted Average Remaining Contract Life | 7 years 2 months 12 days | |||
Vested (in shares) | 248,012 | |||
Weighted Average Exercise Price of Vested Options (usd per share) | $ 24.32 | |||
$61.05 - $71.85 | ||||
Summary of stock options outstanding | ||||
Option Price per Share, minimum (usd per share) | 61.05 | |||
Option Price per Share, maximum (usd per share) | $ 71.85 | |||
Outstanding (in shares) | 75,231 | |||
Weighted Average Exercise Price of Outstanding Options (usd per share) | $ 62.17 | |||
Weighted Average Remaining Contract Life | 4 years 8 months 12 days | |||
Vested (in shares) | 75,231 | |||
Weighted Average Exercise Price of Vested Options (usd per share) | $ 62.17 | |||
$81.60 - $99.60 | ||||
Summary of stock options outstanding | ||||
Option Price per Share, minimum (usd per share) | 81.60 | |||
Option Price per Share, maximum (usd per share) | $ 99.60 | |||
Outstanding (in shares) | 108,610 | |||
Weighted Average Exercise Price of Outstanding Options (usd per share) | $ 88.94 | |||
Weighted Average Remaining Contract Life | 3 years 7 months 2 days | |||
Vested (in shares) | 108,610 | |||
Weighted Average Exercise Price of Vested Options (usd per share) | $ 88.94 | |||
$106.05 - $151.35 | ||||
Summary of stock options outstanding | ||||
Option Price per Share, minimum (usd per share) | 106.05 | |||
Option Price per Share, maximum (usd per share) | $ 151.35 | |||
Outstanding (in shares) | 43,052 | |||
Weighted Average Exercise Price of Outstanding Options (usd per share) | $ 108.84 | |||
Weighted Average Remaining Contract Life | 2 years 3 months 18 days | |||
Vested (in shares) | 43,052 | |||
Weighted Average Exercise Price of Vested Options (usd per share) | $ 108.84 |
Stockholder's Equity and Stock-based Compensation - Stock Options Outstanding Activity (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Number of Shares | |||
Beginning balance (in shares) | 890,341 | 847,635 | 560,797 |
Options granted (in shares) | 10,000 | ||
Options exercised (in shares) | (70,086) | (15,000) | |
Options cancelled (in shares) | (134) | ||
Options forfeited (in shares) | (44,231) | ||
Ending balance (in shares) | 785,890 | 890,341 | 847,635 |
Options exercisable and vested (in shares) | 474,905 | ||
Weighted Average Exercise Price | |||
Beginning balance (usd per share) | $ 36.17 | ||
Options granted (usd per share) | 24.50 | ||
Options exercised (usd per share) | 3.10 | ||
Options cancelled (usd per share) | 61.05 | ||
Options forfeited (usd per share) | 100.85 | ||
Ending balance (usd per share) | 35.33 | $ 36.17 | |
Options exercisable and vested (usd per share) | 52.76 | ||
Additional Disclosures | |||
Weighted average grant date fair value for stock option awards (usd per share) | $ 15.23 | $ 8.10 | $ 2.04 |
Weighted average remaining contractual life, outstanding | 5 years 4 months 24 days | 6 years 4 months 24 days | |
Weighted average remaining contractual life, Options exercisable and vested | 5 years | ||
Aggregate intrinsic value, outstanding | $ 572 | $ 6,774 | |
Aggregate intrinsic value, Options exercisable and vested | $ 213 |
Stockholder's Equity and Stock-based Compensation - Valuation Assumptions (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rates | 2.78% | 2.14% | 1.30% |
Expected lives (in years) | 5 years | 5 years | 5 years 6 months |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 73.67% | 74.41% | 78.76% |
Stock appreciation rights (SARs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rates | 3.00% | ||
Expected lives (in years) | 5 years 3 months 22 days | ||
Expected dividend yield | 0.00% | ||
Expected volatility | 82.90% |
Stockholder's Equity and Stock-based Compensation - Restricted Stock and Restricted Stock Unit Plans (Details) - Restricted stock and restricted stock unit - shares |
12 Months Ended | |
---|---|---|
May 30, 2018 |
Dec. 31, 2018 |
|
Status of the Company's restricted stock and restricted stock unit awards | ||
Total nonvested, Beginning balance (in shares) | 201,702 | |
Granted (in shares) | 996,775 | |
Vested (in shares) | (43,865) | (151,852) |
Forfeited (in shares) | (2,500) | |
Total nonvested, Ending balance (in shares) | 1,044,125 |
Stockholder's Equity and Stock-based Compensation - Stock Appreciation Rights (SARs) Activity (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Number of Shares | |||
Beginning balance (in shares) | 890,341 | 847,635 | 560,797 |
SARs granted (in shares) | 10,000 | ||
Exercised (in shares) | (70,086) | (15,000) | |
SARs cancelled (in shares) | (44,231) | (47,612) | (103,432) |
SARs forfeited (in shares) | (44,231) | ||
Ending balance (in shares) | 785,890 | 890,341 | 847,635 |
Weighted Average Exercise Price | |||
Beginning balance (usd per share) | $ 36.17 | ||
Ending balance (usd per share) | 35.33 | $ 36.17 | |
SARs granted (usd per share) | $ 15.23 | $ 8.10 | $ 2.04 |
Weighted average remaining contractual life, outstanding | 5 years 4 months 24 days | 6 years 4 months 24 days | |
Aggregate intrinsic value, outstanding | $ 572 | $ 6,774 | |
Stock appreciation rights (SARs) | |||
Number of Shares | |||
Beginning balance (in shares) | 565,864 | 1,416,133 | 216,532 |
SARs granted (in shares) | 960,009 | 1,210,000 | |
Exercised (in shares) | (34,999) | (713,330) | |
SARs cancelled (in shares) | (136,939) | (10,399) | |
SARs forfeited (in shares) | (9,333) | ||
Ending balance (in shares) | 1,481,541 | 565,864 | 1,416,133 |
Weighted Average Exercise Price | |||
Beginning balance (usd per share) | $ 13.49 | $ 7.70 | $ 34.67 |
SARs granted (usd per share) | 8.85 | 3.10 | |
SARs exercised (usd per share) | 3.10 | 3.10 | |
SARs cancelled (usd per share) | 7.70 | 34.20 | |
SARs forfeited (usd per share) | 45.00 | ||
Ending balance (usd per share) | 10.53 | $ 13.49 | 7.70 |
SARs granted (usd per share) | $ 8.85 | $ 17.55 | |
Weighted average remaining contractual life, outstanding | 8 years 1 month 6 days | ||
Aggregate intrinsic value, outstanding | $ 718 | ||
Exercisable and Vested | |||
Number of shares (in shares) | 0 | ||
Weighted average exercise price (usd per share) | $ 0.00 |
Stockholder's Equity and Stock-based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 3,337 | $ 2,552 | $ 3,267 |
Tax benefit related thereto | (698) | (862) | (1,168) |
Stock-based compensation expense, net of tax | 2,639 | 1,690 | 2,099 |
Stock appreciation rights (SARs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 822 | 6,611 | 547 |
Tax benefit related thereto | (173) | (2,314) | (191) |
Stock-based compensation expense, net of tax | $ 649 | $ 4,297 | $ 356 |
Supplemental Cash Flow Information and Non-Cash Activity (Details) - USD ($) $ in Thousands |
1 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Cash paid during the period for: | ||||
Interest | $ 5,731 | $ 14,181 | $ 15,691 | |
Income taxes | 3,260 | 7,030 | 4,474 | |
Non-cash items from investing and financing activities: | ||||
Purchase of computer equipment financed through capital leases | 3,297 | 0 | 0 | |
Leasehold improvement paid by landlord | 0 | 0 | 955 | |
Issuance of stock in bond exchange | 0 | 0 | 10,741 | |
Investment in multi-client data library financed through trade payables | 4,956 | 9,059 | 0 | |
Segment Reporting Information [Line Items] | ||||
Transfer of inventory to property, plant and equipment | $ 0 | $ 0 | $ 17,662 | |
Ocean Bottom Integrated Technologies | ||||
Segment Reporting Information [Line Items] | ||||
Transfer of inventory to property, plant and equipment | $ 17,700 |
Operating Leases - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Leases, Operating [Abstract] | |||
Operating leases, rent expense | $ 10.1 | $ 11.4 | $ 11.3 |
Operating Leases - Summary of future rental commitments (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Future rental commitments over the next five years under non-cancelable operating leases | |
2019 | $ 13,248 |
2020 | 12,857 |
2021 | 11,075 |
2022 | 10,821 |
2023 | 9,205 |
Total | $ 57,206 |
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair Value Disclosures [Abstract] | ||
Carrying value of long-term debt and lease obligations | $ 124.7 | $ 160.7 |
Fair value of long-term debt | $ 120.7 | $ 158.2 |
Benefit Plans (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Retirement Benefits [Abstract] | |||
Maximum percentage of employee contributions | 60.00% | ||
Percentage of contribution made to defined benefit plan | 50.00% | ||
Component percent of first compensation contributed to defined benefit plan | 6.00% | ||
Company contributions to benefit plans | $ 0.9 | $ 0.8 | $ 0.8 |
Selected Quarterly Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | $ 74,594 | $ 47,200 | $ 24,743 | $ 33,508 | $ 57,902 | $ 61,095 | $ 46,001 | $ 32,556 | $ 180,045 | $ 197,554 | $ 172,808 |
Gross profit | 37,809 | 16,475 | (1,517) | 6,853 | 23,811 | 30,109 | 15,618 | 6,101 | 59,620 | 75,639 | 36,032 |
Loss from operations | (16,661) | (2,452) | (22,519) | (12,640) | (1,151) | 9,936 | (3,572) | (13,912) | (54,272) | (8,699) | (43,171) |
Interest expense, net | (3,203) | (3,022) | (2,911) | (3,836) | (4,045) | (3,959) | (4,241) | (4,464) | (12,972) | (16,709) | (18,485) |
Other income (expense), net | 180 | 91 | 84 | (791) | 209 | 722 | 192 | (5,068) | (436) | (3,945) | 1,350 |
Income tax expense | (587) | 2,079 | 154 | 1,072 | (3,646) | 1,686 | 2,402 | (418) | 2,718 | 24 | 4,421 |
Net income attributable to noncontrolling interests | (246) | (74) | (366) | (87) | (53) | (78) | (418) | (316) | (773) | (865) | (421) |
Net loss attributable to ION | $ (19,343) | $ (7,536) | $ (25,866) | $ (18,426) | $ (1,394) | $ 4,935 | $ (10,441) | $ (23,342) | $ (71,171) | $ (30,242) | $ (65,148) |
Net loss per share: | |||||||||||
Basic (usd per share) | $ (1.38) | $ (0.54) | $ (1.86) | $ (1.44) | $ (0.12) | $ 0.42 | $ (0.88) | $ (1.98) | $ (5.20) | $ (2.55) | $ (5.71) |
Diluted (usd per share) | $ (1.38) | $ (0.54) | $ (1.86) | $ (1.44) | $ (0.12) | $ 0.41 | $ (0.88) | $ (1.98) | $ (5.20) | $ (2.55) | $ (5.71) |
Service | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | $ 61,095 | $ 37,105 | $ 15,752 | $ 25,086 | $ 48,513 | $ 52,615 | $ 34,454 | $ 23,828 | $ 139,038 | $ 159,410 | $ 130,640 |
Product | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | $ 13,499 | $ 10,095 | $ 8,991 | $ 8,422 | $ 9,389 | $ 8,480 | $ 11,547 | $ 8,728 | $ 41,007 | $ 38,144 | $ 42,168 |
Certain Relationships and Related Party Transactions (Details) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018
USD ($)
ft²
|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
|
Majority Shareholder | |||
Related Party Transaction [Line Items] | |||
Related party transaction, revenues from transactions with related party | $ 4.9 | $ 4.4 | $ 3.6 |
Receivables due from BGP | $ 1.6 | 0.6 | |
Company's outstanding common stock owned by related parties | 10.60% | ||
Board of Directors Chairman | |||
Related Party Transaction [Line Items] | |||
Company's outstanding common stock owned by related parties | 8.80% | ||
Payments for continued services agreement (less than) | $ 0.1 | ||
Area of office space subleased (sqft) | ft² | 4,100 | ||
Board of Directors Chairman | Manufacturing facility | |||
Related Party Transaction [Line Items] | |||
Payments for continued services agreement (less than) | $ 0.4 | $ 0.2 |
Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|||
---|---|---|---|---|---|---|---|
Current assets: | |||||||
Cash and cash equivalents | $ 33,551 | $ 52,056 | $ 52,652 | ||||
Total cash, cash equivalents, and restricted cash shown in consolidated statements of cash flows | 33,854 | 52,419 | 53,433 | $ 86,292 | |||
Accounts receivable, net | 26,128 | 19,478 | |||||
Unbilled receivables | 44,032 | 37,304 | |||||
Inventories, net | 14,130 | 14,508 | |||||
Prepaid expenses and other current assets | 7,782 | 7,643 | |||||
Total current assets | 125,623 | 130,989 | |||||
Deferred income tax asset | 7,191 | 1,753 | |||||
Property, plant, equipment and seismic rental equipment, net | 13,041 | 52,153 | |||||
Multi-client data library, net | 73,544 | 89,300 | |||||
Investment in subsidiaries | 0 | 0 | |||||
Goodwill | 22,915 | 24,089 | 22,208 | ||||
Intercompany receivables | 0 | 0 | |||||
Other assets | 2,435 | 2,785 | |||||
Total assets | 244,749 | 301,069 | |||||
Deferred income tax asset | |||||||
Current maturities of long-term debt | 2,228 | 40,024 | |||||
Accounts payable | 34,913 | 24,951 | |||||
Accrued expenses | 31,411 | 38,697 | |||||
Accrued multi-client data library royalties | 29,256 | 27,035 | |||||
Deferred revenue | 7,710 | 8,910 | |||||
Total current liabilities | 105,518 | 139,617 | |||||
Long-term debt, net of current maturities | 119,513 | 116,720 | |||||
Intercompany payables | 0 | 0 | |||||
Other long-term liabilities | 11,894 | 13,926 | |||||
Total liabilities | 236,925 | 270,263 | |||||
Equity: | |||||||
Common stock | 140 | 120 | |||||
Additional paid-in capital | 952,626 | 903,247 | |||||
Accumulated earnings (deficit) | (926,092) | (854,921) | |||||
Accumulated other comprehensive income (loss) | (20,442) | (18,879) | |||||
Due from ION Geophysical Corporation | 0 | 0 | |||||
Total stockholders’ equity | 6,232 | 29,567 | |||||
Noncontrolling interests | 1,592 | 1,239 | |||||
Total equity | 7,824 | 30,806 | 53,398 | 112,040 | [1] | ||
Total liabilities and equity | 244,749 | 301,069 | |||||
Reportable Legal Entities | ION Geophysical Corporation | |||||||
Current assets: | |||||||
Cash and cash equivalents | 13,782 | 39,344 | 23,042 | ||||
Total cash, cash equivalents, and restricted cash shown in consolidated statements of cash flows | 14,085 | 39,707 | 23,823 | 35,093 | |||
Accounts receivable, net | 8 | 50 | |||||
Unbilled receivables | 0 | 0 | |||||
Inventories, net | 0 | 0 | |||||
Prepaid expenses and other current assets | 3,891 | 2,427 | |||||
Total current assets | 17,681 | 41,821 | |||||
Deferred income tax asset | 805 | 1,264 | |||||
Property, plant, equipment and seismic rental equipment, net | 489 | 511 | |||||
Multi-client data library, net | 0 | 0 | |||||
Investment in subsidiaries | 836,002 | 693,679 | |||||
Goodwill | 0 | 0 | |||||
Intercompany receivables | 0 | 0 | |||||
Other assets | 1,723 | 686 | |||||
Total assets | 856,700 | 737,961 | |||||
Deferred income tax asset | |||||||
Current maturities of long-term debt | 1,159 | 39,774 | |||||
Accounts payable | 2,407 | 1,774 | |||||
Accrued expenses | 7,011 | 12,284 | |||||
Accrued multi-client data library royalties | 0 | 0 | |||||
Deferred revenue | 0 | 0 | |||||
Total current liabilities | 10,577 | 53,832 | |||||
Long-term debt, net of current maturities | 117,644 | 116,691 | |||||
Intercompany payables | 721,817 | 537,417 | |||||
Other long-term liabilities | 430 | 454 | |||||
Total liabilities | 850,468 | 708,394 | |||||
Equity: | |||||||
Common stock | 140 | 120 | |||||
Additional paid-in capital | 952,626 | 903,247 | |||||
Accumulated earnings (deficit) | (926,092) | (854,921) | |||||
Accumulated other comprehensive income (loss) | (20,442) | (18,879) | |||||
Due from ION Geophysical Corporation | 0 | 0 | |||||
Total stockholders’ equity | 6,232 | 29,567 | |||||
Noncontrolling interests | 0 | 0 | |||||
Total equity | 6,232 | 29,567 | |||||
Total liabilities and equity | 856,700 | 737,961 | |||||
Reportable Legal Entities | The Guarantors | |||||||
Current assets: | |||||||
Cash and cash equivalents | 47 | 66 | 215 | ||||
Total cash, cash equivalents, and restricted cash shown in consolidated statements of cash flows | 47 | 66 | 215 | 3,392 | |||
Accounts receivable, net | 17,349 | 12,496 | |||||
Unbilled receivables | 12,697 | 34,484 | |||||
Inventories, net | 8,721 | 8,686 | |||||
Prepaid expenses and other current assets | 1,325 | 4,530 | |||||
Total current assets | 40,139 | 60,262 | |||||
Deferred income tax asset | 6,261 | 336 | |||||
Property, plant, equipment and seismic rental equipment, net | 8,922 | 7,170 | |||||
Multi-client data library, net | 70,380 | 81,442 | |||||
Investment in subsidiaries | 247,359 | 321,934 | |||||
Goodwill | 0 | 0 | |||||
Intercompany receivables | 305,623 | 162,017 | |||||
Other assets | 643 | 1,811 | |||||
Total assets | 679,327 | 634,972 | |||||
Deferred income tax asset | |||||||
Current maturities of long-term debt | 1,069 | 250 | |||||
Accounts payable | 29,602 | 20,982 | |||||
Accrued expenses | 10,036 | 16,957 | |||||
Accrued multi-client data library royalties | 29,040 | 26,824 | |||||
Deferred revenue | 6,515 | 7,231 | |||||
Total current liabilities | 76,262 | 72,244 | |||||
Long-term debt, net of current maturities | 1,869 | 29 | |||||
Intercompany payables | 0 | 0 | |||||
Other long-term liabilities | 5,698 | 6,084 | |||||
Total liabilities | 83,829 | 78,357 | |||||
Equity: | |||||||
Common stock | 290,460 | 290,460 | |||||
Additional paid-in capital | 180,700 | 180,701 | |||||
Accumulated earnings (deficit) | 390,691 | 317,324 | |||||
Accumulated other comprehensive income (loss) | 4,324 | 4,372 | |||||
Due from ION Geophysical Corporation | (270,677) | (236,242) | |||||
Total stockholders’ equity | 595,498 | 556,615 | |||||
Noncontrolling interests | 0 | 0 | |||||
Total equity | 595,498 | 556,615 | |||||
Total liabilities and equity | 679,327 | 634,972 | |||||
Reportable Legal Entities | All Other Subsidiaries | |||||||
Current assets: | |||||||
Cash and cash equivalents | 19,722 | 12,646 | 29,395 | ||||
Total cash, cash equivalents, and restricted cash shown in consolidated statements of cash flows | 19,722 | 12,646 | $ 29,395 | $ 47,807 | |||
Accounts receivable, net | 8,771 | 6,932 | |||||
Unbilled receivables | 31,335 | 2,820 | |||||
Inventories, net | 5,409 | 5,822 | |||||
Prepaid expenses and other current assets | 2,566 | 686 | |||||
Total current assets | 67,803 | 28,906 | |||||
Deferred income tax asset | 125 | 153 | |||||
Property, plant, equipment and seismic rental equipment, net | 3,630 | 44,472 | |||||
Multi-client data library, net | 3,164 | 7,858 | |||||
Investment in subsidiaries | 0 | 0 | |||||
Goodwill | 22,915 | 24,089 | |||||
Intercompany receivables | 66,021 | 60,394 | |||||
Other assets | 69 | 288 | |||||
Total assets | 163,727 | 166,160 | |||||
Deferred income tax asset | |||||||
Current maturities of long-term debt | 0 | 0 | |||||
Accounts payable | 2,904 | 2,195 | |||||
Accrued expenses | 14,364 | 9,456 | |||||
Accrued multi-client data library royalties | 216 | 211 | |||||
Deferred revenue | 1,195 | 1,679 | |||||
Total current liabilities | 18,679 | 13,541 | |||||
Long-term debt, net of current maturities | 0 | 0 | |||||
Intercompany payables | 0 | 0 | |||||
Other long-term liabilities | 5,766 | 7,388 | |||||
Total liabilities | 24,445 | 20,929 | |||||
Equity: | |||||||
Common stock | 47,776 | 49,394 | |||||
Additional paid-in capital | 203,908 | 202,290 | |||||
Accumulated earnings (deficit) | (12,475) | (9,247) | |||||
Accumulated other comprehensive income (loss) | (22,023) | (19,681) | |||||
Due from ION Geophysical Corporation | (79,496) | (78,764) | |||||
Total stockholders’ equity | 137,690 | 143,992 | |||||
Noncontrolling interests | 1,592 | 1,239 | |||||
Total equity | 139,282 | 145,231 | |||||
Total liabilities and equity | 163,727 | 166,160 | |||||
Consolidating Adjustments | |||||||
Current assets: | |||||||
Cash and cash equivalents | 0 | ||||||
Total cash, cash equivalents, and restricted cash shown in consolidated statements of cash flows | 0 | ||||||
Accounts receivable, net | 0 | 0 | |||||
Unbilled receivables | 0 | 0 | |||||
Inventories, net | 0 | 0 | |||||
Prepaid expenses and other current assets | 0 | 0 | |||||
Total current assets | 0 | 0 | |||||
Deferred income tax asset | 0 | 0 | |||||
Property, plant, equipment and seismic rental equipment, net | 0 | 0 | |||||
Multi-client data library, net | 0 | 0 | |||||
Investment in subsidiaries | (1,083,361) | (1,015,613) | |||||
Goodwill | 0 | 0 | |||||
Intercompany receivables | (371,644) | (222,411) | |||||
Other assets | 0 | 0 | |||||
Total assets | (1,455,005) | (1,238,024) | |||||
Deferred income tax asset | |||||||
Current maturities of long-term debt | 0 | 0 | |||||
Accounts payable | 0 | 0 | |||||
Accrued expenses | 0 | 0 | |||||
Accrued multi-client data library royalties | 0 | 0 | |||||
Deferred revenue | 0 | 0 | |||||
Total current liabilities | 0 | 0 | |||||
Long-term debt, net of current maturities | 0 | 0 | |||||
Intercompany payables | (721,817) | (537,417) | |||||
Other long-term liabilities | 0 | 0 | |||||
Total liabilities | (721,817) | (537,417) | |||||
Equity: | |||||||
Common stock | (338,236) | (339,854) | |||||
Additional paid-in capital | (384,608) | (382,991) | |||||
Accumulated earnings (deficit) | (378,216) | (308,077) | |||||
Accumulated other comprehensive income (loss) | 17,699 | 15,309 | |||||
Due from ION Geophysical Corporation | 350,173 | 315,006 | |||||
Total stockholders’ equity | (733,188) | (700,607) | |||||
Noncontrolling interests | 0 | 0 | |||||
Total equity | (733,188) | (700,607) | |||||
Total liabilities and equity | $ (1,455,005) | $ (1,238,024) | |||||
|
Condensed Consolidating Financial Information - Condensed Consolidating Income Statement (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Condensed Income Statements, Captions [Line Items] | |||||||||||
Total net revenues | $ 74,594 | $ 47,200 | $ 24,743 | $ 33,508 | $ 57,902 | $ 61,095 | $ 46,001 | $ 32,556 | $ 180,045 | $ 197,554 | $ 172,808 |
Cost of goods sold | 120,425 | 121,915 | 136,776 | ||||||||
Gross profit | 37,809 | 16,475 | (1,517) | 6,853 | 23,811 | 30,109 | 15,618 | 6,101 | 59,620 | 75,639 | 36,032 |
Total operating expenses | 113,892 | 84,338 | 79,203 | ||||||||
Loss from operations | (16,661) | (2,452) | (22,519) | (12,640) | (1,151) | 9,936 | (3,572) | (13,912) | (54,272) | (8,699) | (43,171) |
Interest expense, net | (3,203) | (3,022) | (2,911) | (3,836) | (4,045) | (3,959) | (4,241) | (4,464) | (12,972) | (16,709) | (18,485) |
Intercompany interest, net | 0 | 0 | 0 | ||||||||
Equity in earnings (losses) of investments | 0 | 0 | 0 | ||||||||
Other income (expense), net | 180 | 91 | 84 | (791) | 209 | 722 | 192 | (5,068) | (436) | (3,945) | 1,350 |
Loss before income taxes | (67,680) | (29,353) | (60,306) | ||||||||
Income tax expense (benefit) | (587) | 2,079 | 154 | 1,072 | (3,646) | 1,686 | 2,402 | (418) | 2,718 | 24 | 4,421 |
Net income (loss) | (70,398) | (29,377) | (64,727) | ||||||||
Net income attributable to noncontrolling interests | (246) | (74) | (366) | (87) | (53) | (78) | (418) | (316) | (773) | (865) | (421) |
Net loss attributable to ION | $ (19,343) | $ (7,536) | $ (25,866) | $ (18,426) | $ (1,394) | $ 4,935 | $ (10,441) | $ (23,342) | (71,171) | (30,242) | (65,148) |
Comprehensive net income (loss) | (71,961) | (26,508) | (71,694) | ||||||||
Comprehensive income attributable to noncontrolling interests | (773) | (865) | (421) | ||||||||
Comprehensive net loss attributable to ION | (72,734) | (27,373) | (72,115) | ||||||||
Reportable Legal Entities | ION Geophysical Corporation | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Total net revenues | 0 | 0 | 0 | ||||||||
Cost of goods sold | 0 | 0 | 0 | ||||||||
Gross profit | 0 | 0 | 0 | ||||||||
Total operating expenses | 32,888 | 39,000 | 31,438 | ||||||||
Loss from operations | (32,888) | (39,000) | (31,438) | ||||||||
Interest expense, net | (13,010) | (16,729) | (18,406) | ||||||||
Intercompany interest, net | 1,124 | 1,084 | 978 | ||||||||
Equity in earnings (losses) of investments | (26,446) | 27,696 | (19,756) | ||||||||
Other income (expense), net | (196) | (4,610) | 3,528 | ||||||||
Loss before income taxes | (71,416) | (31,559) | (65,094) | ||||||||
Income tax expense (benefit) | (245) | (1,317) | 54 | ||||||||
Net income (loss) | (71,171) | (30,242) | (65,148) | ||||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net loss attributable to ION | (71,171) | (30,242) | (65,148) | ||||||||
Comprehensive net income (loss) | (72,734) | (27,373) | (72,331) | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive net loss attributable to ION | (72,734) | (27,373) | (72,331) | ||||||||
Reportable Legal Entities | The Guarantors | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Total net revenues | 96,649 | 148,590 | 91,465 | ||||||||
Cost of goods sold | 85,186 | 90,754 | 87,660 | ||||||||
Gross profit | 11,463 | 57,836 | 3,805 | ||||||||
Total operating expenses | 29,235 | 28,020 | 27,279 | ||||||||
Loss from operations | (17,772) | 29,816 | (23,474) | ||||||||
Interest expense, net | (136) | (107) | (173) | ||||||||
Intercompany interest, net | (12,137) | (6,613) | (4,397) | ||||||||
Equity in earnings (losses) of investments | 37,219 | 67,290 | 23,368 | ||||||||
Other income (expense), net | 116 | (407) | 723 | ||||||||
Loss before income taxes | 7,290 | 89,979 | (3,953) | ||||||||
Income tax expense (benefit) | (6,711) | (1,427) | 1,337 | ||||||||
Net income (loss) | 14,001 | 91,406 | (5,290) | ||||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net loss attributable to ION | 14,001 | 91,406 | (5,290) | ||||||||
Comprehensive net income (loss) | 13,953 | 91,358 | (5,290) | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive net loss attributable to ION | 13,953 | 91,358 | (5,290) | ||||||||
Reportable Legal Entities | All Other Subsidiaries | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Total net revenues | 83,396 | 48,964 | 81,343 | ||||||||
Cost of goods sold | 35,239 | 31,161 | 49,116 | ||||||||
Gross profit | 48,157 | 17,803 | 32,227 | ||||||||
Total operating expenses | 51,769 | 17,318 | 20,486 | ||||||||
Loss from operations | (3,612) | 485 | 11,741 | ||||||||
Interest expense, net | 174 | 127 | 94 | ||||||||
Intercompany interest, net | 11,013 | 5,529 | 3,419 | ||||||||
Equity in earnings (losses) of investments | 0 | 0 | 0 | ||||||||
Other income (expense), net | (356) | 1,072 | (2,901) | ||||||||
Loss before income taxes | 7,219 | 7,213 | 12,353 | ||||||||
Income tax expense (benefit) | 9,674 | 2,768 | 3,030 | ||||||||
Net income (loss) | (2,455) | 4,445 | 9,323 | ||||||||
Net income attributable to noncontrolling interests | (773) | (865) | (421) | ||||||||
Net loss attributable to ION | (3,228) | 3,580 | 8,902 | ||||||||
Comprehensive net income (loss) | (4,797) | 6,550 | 1,719 | ||||||||
Comprehensive income attributable to noncontrolling interests | (773) | (865) | (421) | ||||||||
Comprehensive net loss attributable to ION | (5,570) | 5,685 | 1,298 | ||||||||
Consolidating Adjustments | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Total net revenues | 0 | 0 | 0 | ||||||||
Cost of goods sold | 0 | 0 | 0 | ||||||||
Gross profit | 0 | 0 | 0 | ||||||||
Total operating expenses | 0 | 0 | 0 | ||||||||
Loss from operations | 0 | 0 | 0 | ||||||||
Interest expense, net | 0 | 0 | 0 | ||||||||
Intercompany interest, net | 0 | 0 | 0 | ||||||||
Equity in earnings (losses) of investments | (10,773) | (94,986) | (3,612) | ||||||||
Other income (expense), net | 0 | 0 | 0 | ||||||||
Loss before income taxes | (10,773) | (94,986) | (3,612) | ||||||||
Income tax expense (benefit) | 0 | 0 | 0 | ||||||||
Net income (loss) | (10,773) | (94,986) | (3,612) | ||||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net loss attributable to ION | (10,773) | (94,986) | (3,612) | ||||||||
Comprehensive net income (loss) | (8,383) | (97,043) | 4,208 | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive net loss attributable to ION | $ (8,383) | $ (97,043) | $ 4,208 |
Condensed Consolidating Financial Informatin - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Cash flows from operating activities: | |||
Net cash provided by (used in) operating activities | $ 7,098 | $ 27,612 | $ 993 |
Cash flows from investing activities: | |||
Investment in multi-client data library | (28,276) | (23,710) | (14,884) |
Purchase of property, plant, equipment and seismic rental equipment | (1,514) | (1,063) | (1,458) |
Proceeds from sale of cost method investments | 0 | 0 | 2,698 |
Net cash used in investing activities | (29,790) | (24,773) | (13,644) |
Cash flows from financing activities: | |||
Repayments under revolving line of credit | (10,000) | 0 | (5,000) |
Borrowings under revolving line of credit | 0 | 0 | 15,000 |
Payments on notes payable and long-term debt | (30,807) | (4,816) | (23,634) |
Cost associated with issuance of debt | (1,247) | (53) | (6,744) |
Repurchase of common stock | 0 | 0 | (964) |
Intercompany lending | 0 | 0 | 0 |
Proceeds from employee stock purchases and exercise of stock options | 214 | 1,619 | 0 |
Net proceeds from issuance of stocks | 46,999 | 0 | 0 |
Dividend payment to noncontrolling interest | (200) | (100) | 0 |
Other financing activities | (1,151) | (243) | (252) |
Net cash provided by (used in) financing activities | 3,808 | (3,593) | (21,594) |
Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash | 319 | (260) | 1,386 |
Net decrease in cash, cash equivalents and restricted cash | (18,565) | (1,014) | (32,859) |
Cash, cash equivalents and restricted cash at beginning of period | 52,419 | 53,433 | 86,292 |
Cash, cash equivalents and restricted cash at end of period | 33,854 | 52,419 | 53,433 |
Reportable Legal Entities | ION Geophysical Corporation | |||
Cash flows from operating activities: | |||
Net cash provided by (used in) operating activities | (37,659) | (22,315) | (30,732) |
Cash flows from investing activities: | |||
Investment in multi-client data library | 0 | 0 | 0 |
Purchase of property, plant, equipment and seismic rental equipment | (392) | (165) | (73) |
Proceeds from sale of cost method investments | 2,698 | ||
Net cash used in investing activities | (392) | (165) | 2,625 |
Cash flows from financing activities: | |||
Repayments under revolving line of credit | (10,000) | (5,000) | |
Borrowings under revolving line of credit | 15,000 | ||
Payments on notes payable and long-term debt | (30,169) | (1,591) | (17,070) |
Cost associated with issuance of debt | (1,247) | (53) | (6,744) |
Repurchase of common stock | (964) | ||
Intercompany lending | 7,983 | 38,732 | 31,867 |
Proceeds from employee stock purchases and exercise of stock options | 214 | 1,619 | |
Net proceeds from issuance of stocks | 46,999 | ||
Dividend payment to noncontrolling interest | (200) | (100) | |
Other financing activities | (1,151) | (243) | (252) |
Net cash provided by (used in) financing activities | 12,429 | 38,364 | 16,837 |
Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash | 0 | 0 | 0 |
Net decrease in cash, cash equivalents and restricted cash | (25,622) | 15,884 | (11,270) |
Cash, cash equivalents and restricted cash at beginning of period | 39,707 | 23,823 | 35,093 |
Cash, cash equivalents and restricted cash at end of period | 14,085 | 39,707 | 23,823 |
Reportable Legal Entities | The Guarantors | |||
Cash flows from operating activities: | |||
Net cash provided by (used in) operating activities | 39,407 | 73,154 | 53,107 |
Cash flows from investing activities: | |||
Investment in multi-client data library | (25,307) | (23,710) | (14,884) |
Purchase of property, plant, equipment and seismic rental equipment | (959) | (817) | (313) |
Proceeds from sale of cost method investments | 0 | ||
Net cash used in investing activities | (26,266) | (24,527) | (15,197) |
Cash flows from financing activities: | |||
Repayments under revolving line of credit | 0 | 0 | |
Borrowings under revolving line of credit | 0 | ||
Payments on notes payable and long-term debt | (638) | (3,167) | (6,316) |
Cost associated with issuance of debt | 0 | 0 | 0 |
Repurchase of common stock | 0 | ||
Intercompany lending | (12,522) | (45,609) | (34,771) |
Proceeds from employee stock purchases and exercise of stock options | 0 | 0 | |
Net proceeds from issuance of stocks | 0 | ||
Dividend payment to noncontrolling interest | 0 | 0 | |
Other financing activities | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | (13,160) | (48,776) | (41,087) |
Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash | 0 | 0 | 0 |
Net decrease in cash, cash equivalents and restricted cash | (19) | (149) | (3,177) |
Cash, cash equivalents and restricted cash at beginning of period | 66 | 215 | 3,392 |
Cash, cash equivalents and restricted cash at end of period | 47 | 66 | 215 |
Reportable Legal Entities | All Other Subsidiaries | |||
Cash flows from operating activities: | |||
Net cash provided by (used in) operating activities | 5,350 | (23,227) | (21,382) |
Cash flows from investing activities: | |||
Investment in multi-client data library | (2,969) | 0 | 0 |
Purchase of property, plant, equipment and seismic rental equipment | (163) | (81) | (1,072) |
Proceeds from sale of cost method investments | 0 | ||
Net cash used in investing activities | (3,132) | (81) | (1,072) |
Cash flows from financing activities: | |||
Repayments under revolving line of credit | 0 | 0 | |
Borrowings under revolving line of credit | 0 | ||
Payments on notes payable and long-term debt | 0 | (58) | (248) |
Cost associated with issuance of debt | 0 | 0 | 0 |
Repurchase of common stock | 0 | ||
Intercompany lending | 4,539 | 6,877 | 2,904 |
Proceeds from employee stock purchases and exercise of stock options | 0 | 0 | |
Net proceeds from issuance of stocks | 0 | ||
Dividend payment to noncontrolling interest | 0 | 0 | |
Other financing activities | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | 4,539 | 6,819 | 2,656 |
Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash | 319 | (260) | 1,386 |
Net decrease in cash, cash equivalents and restricted cash | 7,076 | (16,749) | (18,412) |
Cash, cash equivalents and restricted cash at beginning of period | 12,646 | 29,395 | 47,807 |
Cash, cash equivalents and restricted cash at end of period | 19,722 | $ 12,646 | $ 29,395 |
Consolidating Adjustments | |||
Cash flows from financing activities: | |||
Cash, cash equivalents and restricted cash at end of period | $ 0 |
Condensed Consolidating Financial Information - Cash Flow, Restricted Cash Reconciliation (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|---|---|
Restricted Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 33,551 | $ 52,056 | $ 52,652 | |
Total cash, cash equivalents, and restricted cash shown in consolidated statements of cash flows | 33,854 | 52,419 | 53,433 | $ 86,292 |
Prepaid expenses and other current assets | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Restricted cash | 0 | 60 | 260 | |
Other long-term assets | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Restricted cash | 303 | 303 | 521 | |
Reportable Legal Entities | ION Geophysical Corporation | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | 13,782 | 39,344 | 23,042 | |
Total cash, cash equivalents, and restricted cash shown in consolidated statements of cash flows | 14,085 | 39,707 | 23,823 | 35,093 |
Reportable Legal Entities | ION Geophysical Corporation | Prepaid expenses and other current assets | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Restricted cash | 60 | 260 | ||
Reportable Legal Entities | ION Geophysical Corporation | Other long-term assets | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Restricted cash | 303 | 303 | 521 | |
Reportable Legal Entities | The Guarantors | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | 47 | 66 | 215 | |
Total cash, cash equivalents, and restricted cash shown in consolidated statements of cash flows | 47 | 66 | 215 | 3,392 |
Reportable Legal Entities | The Guarantors | Prepaid expenses and other current assets | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Restricted cash | 0 | 0 | ||
Reportable Legal Entities | The Guarantors | Other long-term assets | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Restricted cash | 0 | 0 | 0 | |
Reportable Legal Entities | All Other Subsidiaries | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | 19,722 | 12,646 | 29,395 | |
Total cash, cash equivalents, and restricted cash shown in consolidated statements of cash flows | 19,722 | 12,646 | 29,395 | $ 47,807 |
Reportable Legal Entities | All Other Subsidiaries | Prepaid expenses and other current assets | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Restricted cash | 0 | 0 | ||
Reportable Legal Entities | All Other Subsidiaries | Other long-term assets | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Restricted cash | 0 | 0 | $ 0 | |
Consolidating Adjustments | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 0 | |||
Total cash, cash equivalents, and restricted cash shown in consolidated statements of cash flows | $ 0 |
VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Allowances for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 572 | $ 1,443 | $ 4,919 |
Charged (Credited) to Costs and Expenses | 222 | 949 | 1,834 |
Deductions | (364) | (1,820) | (5,310) |
Balance at End of Year | 430 | 572 | 1,443 |
Allowances for doubtful notes receivable | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 4,000 | 4,000 | 4,000 |
Charged (Credited) to Costs and Expenses | 0 | 0 | 0 |
Deductions | 0 | 0 | 0 |
Balance at End of Year | 4,000 | 4,000 | 4,000 |
Valuation allowance on deferred tax assets | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 153,463 | 217,589 | 194,255 |
Charged (Credited) to Costs and Expenses | 7,042 | (64,126) | 23,334 |
Deductions | 0 | 0 | 0 |
Balance at End of Year | 160,505 | 153,463 | 217,589 |
Excess and obsolete inventory | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 15,039 | 15,049 | 24,475 |
Charged (Credited) to Costs and Expenses | 665 | 398 | 429 |
Deductions | (680) | (408) | (9,855) |
Balance at End of Year | $ 15,024 | $ 15,039 | $ 15,049 |
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