Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2019

Condensed Financial Information Disclosure [Abstract]

Condensed Balance Sheet

	September 30, 2019
Balance Sheet	ION Geophysical Corporation			The Guarantors			All Other Subsidiaries			Consolidating Adjustments			Total Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	7,153		$	45		$	20,696		$	—		$	27,894
Accounts receivable, net	8			11,338			12,486			—			23,832
Unbilled receivables	—			10,758			20,232			—			30,990
Inventories, net	—			7,192			5,742			—			12,934
Prepaid expenses and other current assets	3,160			986			2,480			—			6,626
Total current assets	10,321			30,319			61,636			—			102,276
Deferred income tax asset	805			7,510			120			—			8,435
Property, plant and equipment, net	754			7,931			4,218			—			12,903
Multi-client data library, net	—			65,790			3,933			—			69,723
Investment in subsidiaries	847,183			268,398			—			(1,115,581		)	—
Goodwill	—			—			22,276			—			22,276
Intercompany receivables	—			91,534			80,264			(171,798		)	—
Right-of-use assets	15,206			16,897			5,052			—			37,155
Other assets	1,223			945			54			—			2,222
Total assets	$	875,492		$	489,324		$	177,553		$	(1,287,379	)	$	254,990
LIABILITIES AND (DEFICIT) EQUITY
Current liabilities:
Current maturities of long-term debt	$	—		$	1,110		$	—		$	—		$	1,110
Accounts payable	2,460			37,508			3,597			—			43,565
Accrued expenses	15,338			15,840			11,629			—			42,807
Accrued multi-client data library royalties	—			17,299			215			—			17,514
Deferred revenue	—			3,802			1,508			—			5,310
Current maturities of operating lease liabilities	5,026			5,422			1,200			—			11,648
Total current liabilities	22,824			80,981			18,149			—			121,954
Long-term debt, net of current maturities	118,375			1,027			—			—			119,402
Operating lease liabilities, net of current maturities	14,090			16,647			4,477			—			35,214
Intercompany payables	744,102			—			—			(744,102		)	—
Other long-term liabilities	1,491			35			—			—			1,526
Total liabilities	900,882			98,690			22,626			(744,102		)	278,096
(Deficit) Equity:
Common stock	142			290,460			47,776			(338,236		)	142
Additional paid-in capital	955,705			180,700			203,909			(384,609		)	955,705
Accumulated earnings (deficit)	(959,797		)	401,351			10,981			(412,332		)	(959,797		)
Accumulated other comprehensive income (loss)	(21,440		)	4,281			(23,877		)	19,596			(21,440		)
Due from ION Geophysical Corporation	—			(486,158		)	(86,146		)	572,304			—
Total stockholders’ (deficit) equity	(25,390		)	390,634			152,643			(543,277		)	(25,390		)
Noncontrolling interest	—			—			2,284			—			2,284
Total (deficit) equity	(25,390		)	390,634			154,927			(543,277		)	(23,106		)
Total liabilities and (deficit) equity	$	875,492		$	489,324		$	177,553		$	(1,287,379	)	$	254,990

	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, net	—			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 and 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			60,255			(365,878		)	—
Right-of-use assets	18,513			21,350			7,940			—			47,803
Other assets	1,723			643			69			—			2,435
Total assets	$	875,213		$	700,677		$	165,901		$	(1,449,239	)	$	292,552
LIABILITIES AND (DEFICIT) 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
Current maturities of operating lease liabilities	5,155			5,633			1,426			—			12,214
Total current liabilities	15,732			81,895			20,105			—			117,732
Long-term debt, net of current maturities	117,644			1,869			—			—			119,513
Operating lease liabilities, net of current maturities	17,841			21,237			6,514			—			45,592
Intercompany payables	716,051			—						(716,051		)	—
Other long-term liabilities	1,713			178			—			—			1,891
Total liabilities	868,981			105,179			26,619			(716,051		)	284,728
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’ (deficit) equity	6,232			595,498			137,690			(733,188		)	6,232
Noncontrolling interest	—			—			1,592			—			1,592
Total equity	6,232			595,498			139,282			(733,188		)	7,824
Total liabilities and equity	$	875,213		$	700,677		$	165,901		$	(1,449,239	)	$	292,552

Condensed Income Statement

	Three Months Ended September 30, 2019
Income Statement	ION Geophysical Corporation			The Guarantors			All Other Subsidiaries			Consolidating Adjustments			Total Consolidated
	(In thousands)
Net revenues	$	—		$	21,474		$	31,765		$	—		$	53,239
Cost of sales	—			20,165			7,786			—			27,951
Gross profit	—			1,309			23,979			—			25,288
Total operating expenses	9,514			7,976			3,940			—			21,430
Income (loss) from operations	(9,514		)	(6,667		)	20,039			—			3,858
Interest expense, net	(3,197		)	(49		)	91			—			(3,155		)
Intercompany interest, net	65			(2,077		)	2,012			—			—
Equity in earnings of investments	8,988			18,398			—			(27,386		)	—
Other income (expense), net	16			(55		)	(203		)	—			(242		)
Net income (loss) before income taxes	(3,642		)	9,550			21,939			(27,386		)	461
Income tax expense (benefit)	81			(403		)	4,112			—			3,790
Net income (loss)	(3,723		)	9,953			17,827			(27,386		)	(3,329		)
Net income attributable to noncontrolling interest	—			—			(394		)	—			(394		)
Net income (loss) attributable to ION	$	(3,723	)	$	9,953		$	17,433		$	(27,386	)	$	(3,723	)
Comprehensive net income (loss)	$	(4,751	)	$	9,953		$	16,403		$	(25,962	)	$	(4,357	)
Comprehensive income attributable to noncontrolling interest	—			—			(394		)	—			(394		)
Comprehensive net income (loss) attributable to ION	$	(4,751	)	$	9,953		$	16,009		$	(25,962	)	$	(4,751	)

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

	Nine Months Ended September 30, 2019
Income Statement	ION Geophysical Corporation			The Guarantors			All Other Subsidiaries			Consolidating Adjustments			Total Consolidated
	(In thousands)
Net revenues	$	—		$	65,552		$	66,418		$	—		$	131,970
Cost of sales	—			56,106			21,081			—			77,187
Gross profit	—			9,446			45,337			—			54,783
Total operating expenses	31,330			26,204			11,881			—			69,415
Income (loss) from operations	(31,330		)	(16,758		)	33,456			—			(14,632		)
Interest expense, net	(9,560		)	(156		)	338			—			(9,378		)
Intercompany interest, net	588			521			(1,109		)	—			—
Equity in earnings of investments	7,330			26,786			—			(34,116		)	—
Other income (expense), net	4			(265		)	(677		)	—			(938		)
Net income (loss) before income taxes	(32,968		)	10,128			32,008			(34,116		)	(24,948		)
Income tax expense (benefit)	737			(532		)	7,711			—			7,916
Net income (loss)	(33,705		)	10,660			24,297			(34,116		)	(32,864		)
Net income attributable to noncontrolling interest	—			—			(841		)	—			(841		)
Net income (loss) attributable to ION	$	(33,705	)	$	10,660		$	23,456		$	(34,116	)	$	(33,705	)
Comprehensive net income (loss)	$	(34,703	)	$	10,617		$	22,444		$	(32,220	)	$	(33,862	)
Comprehensive income attributable to noncontrolling interest	—			—			(841		)	—			(841		)
Comprehensive net income (loss) attributable to ION	$	(34,703	)	$	10,617		$	21,603		$	(32,220	)	$	(34,703	)

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

Condensed Cash Flow Statement

	Nine Months Ended September 30, 2019
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 operating activities	$	8,955		$	9,619		$	730		$	19,304
Cash flows from investing activities:
Cash invested in multi-client data library	—			(15,197		)	(6,028		)	(21,225		)
Purchase of property, plant and equipment	(259		)	(118		)	(895		)	(1,272		)
Net cash used in investing activities	(259		)	(15,315		)	(6,923		)	(22,497		)
Cash flows from financing activities:
Payments under revolving line of credit	(15,000		)	—			—			(15,000		)
Borrowings under revolving line of credit	15,000			—			—			15,000
Payments on notes payable and long-term debt	(1,159		)	(801		)	—			(1,960		)
Intercompany lending	(13,511		)	6,495			7,016			—
Other financing activities	(655		)	—			—			(655		)
Net cash provided by (used in) financing activities	(15,325		)	5,694			7,016			(2,615		)
Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash	—			—			151			151
Net increase (decrease) in cash, cash equivalents and restricted cash	(6,629		)	(2		)	974			(5,657		)
Cash, cash equivalents and restricted cash at beginning of period	14,085			47			19,722			33,854
Cash, cash equivalents and restricted cash at end of period	$	7,456		$	45		$	20,696		$	28,197

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

	September 30, 2019
	ION Geophysical Corporation		The Guarantors		All Other Subsidiaries		Total Consolidated
	(In thousands)
Cash and cash equivalents	$	7,153	$	45	$	20,696	$	27,894
Restricted cash included in prepaid expenses and other current assets	303		—		—		303
Total cash, cash equivalents, and restricted cash shown in statements of cash flows	$	7,456	$	45	$	20,696	$	28,197

	Nine Months Ended September 30, 2018
Statement of Cash Flows	ION Geophysical Corporation			The Guarantors			All Other Subsidiaries			Total Consolidated
	(In thousands)
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	(32,495	)	$	28,151		$	(2,980	)	$	(7,324	)
Cash flows from investing activities:
Investment in multi-client data library	—			(17,427		)	(2,484		)	(19,911		)
Proceeds from sale (purchase) of property, plant and equipment	(282		)	91			(122		)	(313		)
Net cash used in investing activities	(282		)	(17,336		)	(2,606		)	(20,224		)
Cash flows from financing activities:
Payments under revolving line of credit	(10,000		)	—			—			(10,000		)
Payments on notes payable and long-term debt	(29,879		)	(192		)	—			(30,071		)
Intercompany lending	8,555			(10,671		)	2,116			—
Net proceeds from issuance of stock	46,999			—			—			46,999
Dividend payment to non-controlling interest	(200		)	—			—			(200		)
Other financing activities	(1,489		)	—			—			(1,489		)
Net cash provided by (used in) financing activities	13,986			(10,863		)	2,116			5,239
Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash	—			—			296			296
Net decrease in cash, cash equivalents and restricted cash	(18,791		)	(48		)	(3,174		)	(22,013		)
Cash, cash equivalents and restricted cash at beginning of period	39,707			66			12,646			52,419
Cash, cash equivalents and restricted cash at end of period	$	20,916		$	18		$	9,472		$	30,406

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

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