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Condensed Consolidating Financial Information
 6 Months Ended
Jun. 30, 2020
Condensed Financial Information Disclosure [Abstract]  
Condensed Consolidating Financial Information Condensed Consolidating Financial Information
The Second Lien Notes were issued by ION Geophysical Corporation and are guaranteed by 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 the Second Lien Notes. The following condensed consolidating financial information presents the results of operations, financial position and cash flows for:
•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 not Guarantors.
•The consolidating adjustments necessary to present ION Geophysical Corporation’s results on a consolidated basis.
This condensed consolidating financial information should be read in conjunction with the accompanying condensed consolidated financial statements and footnotes. For additional information pertaining to the Second Lien Notes, See Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II of this Form 10-Q.
June 30, 2020
Balance SheetION Geophysical CorporationThe GuarantorsAll Other SubsidiariesConsolidating AdjustmentsTotal Consolidated
(In thousands)
ASSETS
Current assets:
Cash and cash equivalents$47,328  $20  $15,192  $—  $62,540  
Accounts receivable, net8  5,912  4,657  —  10,577  
Unbilled receivables—  7,514  5,423  —  12,937  
Inventories, net—  6,836  5,026  —  11,862  
Prepaid expenses and other current assets1,975  1,366  1,121  —  4,462  
Total current assets49,311  21,648  31,419  —  102,378  
Deferred income tax asset—  7,882  105  —  7,987  
Property, plant and equipment, net1,524  7,095  3,301  —  11,920  
Multi-client data library, net—  44,347  7,588  —  51,935  
Investment in subsidiaries853,858  278,300  —  (1,132,158) —  
Goodwill—  —  18,029  —  18,029  
Intercompany receivables—  284,828  118,065  (402,893) —  
Right-of-use assets21,870  14,022  4,575  —  40,467  
Other assets2,637  825  51  —  3,513  
Total assets$929,200  $658,947  $183,133  $(1,535,051) $236,229  
LIABILITIES AND (DEFICIT) EQUITY
Current liabilities:
Current maturities of long-term debt$22,500  $1,185  $—  $—  $23,685  
Accounts payable1,854  33,806  1,594  —  37,254  
Accrued expenses11,318  6,274  8,014  —  25,606  
Accrued multi-client data library royalties—  21,101  215  —  21,316  
Deferred revenue—  2,922  1,136  —  4,058  
Current maturities of operating lease liabilities3,526  3,668  1,161  —  8,355  
Total current liabilities39,198  68,956  12,120  —  120,274  
Long-term debt, net of current maturities119,105  129  —  —  119,234  
Operating lease liabilities, net of current maturities21,037  15,319  4,053  —  40,409  
Intercompany payables795,192  —  —  (795,192) —  
Other long-term liabilities386  36  —  —  422  
Total liabilities974,918  84,440  16,173  (795,192) 280,339  
(Deficit) Equity:
Common stock142  290,460  47,776  (338,236) 142  
Additional paid-in capital957,746  180,700  203,909  (384,609) 957,746  
Accumulated earnings (deficit)(981,773) 404,753  24,715  (429,468) (981,773) 
Accumulated other comprehensive income (loss)(21,833) 4,238  (24,393) 20,155  (21,833) 
Due from ION Geophysical Corporation—  (305,644) (86,655) 392,299  —  
Total stockholders’ (deficit) equity(45,718) 574,507  165,352  (739,859) (45,718) 
Noncontrolling interest—  —  1,608  —  1,608  
Total (deficit) equity(45,718) 574,507  166,960  (739,859) (44,110) 
Total liabilities and (deficit) equity$929,200  $658,947  $183,133  $(1,535,051) $236,229  
December 31, 2019
Balance SheetION Geophysical CorporationThe GuarantorsAll Other SubsidiariesConsolidating AdjustmentsTotal Consolidated
(In thousands)
ASSETS
Current assets:
Cash and cash equivalents$8,426  $26  $24,613  $—  $33,065  
Accounts receivable, net8  19,493  10,047  —  29,548  
Unbilled receivables—  7,314  4,501  —  11,815  
Inventories, net—  6,902  5,285  —  12,187  
Prepaid expenses and other current assets3,292  1,513  1,207  —  6,012  
Total current assets11,726  35,248  45,653  —  92,627  
Deferred income tax asset402  8,417  (85) —  8,734  
Property, plant and equipment, net786  8,112  4,290  —  13,188  
Multi-client data library, net—  54,479  5,905  —  60,384  
Investment in subsidiaries841,522  279,327  —  (1,120,849) —  
Goodwill—  —  23,585  —  23,585  
Intercompany receivables—  287,692  99,884  (387,576) —  
Right-of-use assets11,934  15,802  4,810  —  32,546  
Other assets1,171  905  54  —  2,130  
Total assets$867,541  $689,982  $184,096  $(1,508,425) $233,194  
LIABILITIES AND (DEFICIT) EQUITY
Current liabilities:
Current maturities of long-term debt$972  $1,135  $—  $—  $2,107  
Accounts payable2,259  44,641  2,416  —  49,316  
Accrued expenses9,933  9,982  10,413  —  30,328  
Accrued multi-client data library royalties—  18,616  215  —  18,831  
Deferred revenue—  3,465  1,086  —  4,551  
Current maturities of operating lease liabilities4,429  5,469  1,157  —  11,055  
Total current liabilities17,593  83,308  15,287  —  116,188  
Long-term debt, net of current maturities118,618  734  —  —  119,352  
Operating lease liabilities, net of current maturities11,208  15,346  4,279  —  30,833  
Intercompany payables755,524  —  —  (755,524) —  
Other long-term liabilities1,418  35  —  —  1,453  
Total liabilities904,361  99,423  19,566  (755,524) 267,826  
(Deficit) Equity:
Common stock142  290,460  47,776  (338,236) 142  
Additional paid-in capital956,647  180,700  203,909  (384,609) 956,647  
Accumulated earnings (deficit)(974,291) 396,793  18,837  (415,630) (974,291) 
Accumulated other comprehensive income (loss)(19,318) 4,281  (21,907) 17,626  (19,318) 
Due from ION Geophysical Corporation—  (281,675) (86,273) 367,948  —  
Total stockholders’ (deficit) equity(36,820) 590,559  162,342  (752,901) (36,820) 
Noncontrolling interest—  —  2,188  —  2,188  
Total (deficit) equity(36,820) 590,559  164,530  (752,901) (34,632) 
Total liabilities and (deficit) equity$867,541  $689,982  $184,096  $(1,508,425) $233,194  
Three Months Ended June 30, 2020
Income StatementION Geophysical CorporationThe GuarantorsAll Other SubsidiariesConsolidating AdjustmentsTotal Consolidated
(In thousands)
Net revenues$—  $11,748  $10,983  $—  $22,731  
Cost of sales—  13,231  4,916  —  18,147  
Gross profit (loss)—  (1,483) 6,067  —  4,584  
Total operating expenses5,332  2,724  2,000  —  10,056  
Income (loss) from operations(5,332) (4,207) 4,067  —  (5,472) 
Interest expense, net(3,310) (124) 20  —  (3,414) 
Intercompany interest, net(268) (1,532) 1,800  —  —  
Equity in earnings (losses) of investments(1,682) 4,160  —  (2,478) —  
Other income6,758  6  7  —  6,771  
Net income (loss) before income taxes(3,834) (1,697) 5,894  (2,478) (2,115) 
Income tax expense (benefit)1,385  (10) 1,677  —  3,052  
Net income (loss)(5,219) (1,687) 4,217  (2,478) (5,167) 
Net income attributable to noncontrolling interest—  —  (52) —  (52) 
Net income (loss) attributable to ION$(5,219) $(1,687) $4,165  $(2,478) $(5,219) 
Comprehensive net income (loss)$(5,953) $(1,687) $3,435  $(1,696) $(5,901) 
Comprehensive income attributable to noncontrolling interest—  —  (52) —  (52) 
Comprehensive net income (loss) attributable to ION$(5,953) $(1,687) $3,383  $(1,696) $(5,953) 
Three Months Ended June 30, 2019
Income StatementION Geophysical CorporationThe GuarantorsAll Other SubsidiariesConsolidating AdjustmentsTotal Consolidated
(In thousands)
Net revenues$—  $26,465  $15,310  $—  $41,775  
Cost of sales—  15,741  6,451  —  22,192  
Gross profit—  10,724  8,859  —  19,583  
Total operating expenses8,977  9,153  4,006  —  22,136  
Income (loss) from operations(8,977) 1,571  4,853  —  (2,553) 
Interest expense, net(3,197) (58) 144  —  (3,111) 
Intercompany interest, net223  (2,051) 1,828  —  —  
Equity in earnings of investments3,511  6,387  —  (9,898) —  
Other income (expense), net(19) (88) 203  —  96  
Net income (loss) before income taxes(8,459) 5,761  7,028  (9,898) (5,568) 
Income tax expense163  1,162  1,394  —  2,719  
Net income (loss)(8,622) 4,599  5,634  (9,898) (8,287) 
Net income attributable to noncontrolling interest—  —  (335) —  (335) 
Net income (loss) attributable to ION$(8,622) $4,599  $5,299  $(9,898) $(8,622) 
Comprehensive net income (loss)$(9,562) $4,599  $4,341  $(8,605) $(9,227) 
Comprehensive income attributable to noncontrolling interest—  —  (335) —  (335) 
Comprehensive net income (loss) attributable to ION$(9,562) $4,599  $4,006  $(8,605) $(9,562) 
Six Months Ended June 30, 2020
Income StatementION Geophysical CorporationThe GuarantorsAll Other SubsidiariesConsolidating AdjustmentsTotal Consolidated
(In thousands)
Net revenues$—  $52,170  $26,975  $—  $79,145  
Cost of sales—  35,031  10,019  —  45,050  
Impairment of multi-client data library—  1,167  —  —  1,167  
Gross profit—  15,972  16,956  —  32,928  
Total operating expenses13,452  9,704  4,768  —  27,924  
Impairment of goodwill—  —  4,150  —  4,150  
Income (loss) from operations(13,452) 6,268  8,038  —  854  
Interest expense, net(6,555) (162) 82  —  (6,635) 
Intercompany interest, net(458) (3,459) 3,917  —  —  
Equity in earnings (losses) of investments7,946  5,892  —  (13,838) —  
Other income8,143  6  (949) —  7,200  
Net income (loss) before income taxes(4,376) 8,545  11,088  (13,838) 1,419  
Income tax expense (benefit)3,106  585  5,235  —  8,926  
Net income (loss)(7,482) 7,960  5,853  (13,838) (7,507) 
Net income attributable to noncontrolling interest—  —  25  —  25  
Net income (loss) attributable to ION$(7,482) $7,960  $5,878  $(13,838) $(7,482) 
Comprehensive net income (loss)$(9,997) $7,917  $3,367  $(11,309) $(10,022) 
Comprehensive loss attributable to noncontrolling interest—  —  25  —  25  
Comprehensive net income (loss) attributable to ION$(9,997) $7,917  $3,392  $(11,309) $(9,997) 
Six Months Ended June 30, 2019
Income StatementION Geophysical CorporationThe GuarantorsAll Other SubsidiariesConsolidating AdjustmentsTotal Consolidated
(In thousands)
Net revenues$—  $44,078  $34,653  $—  $78,731  
Cost of sales—  35,941  13,295  —  49,236  
Gross profit—  8,137  21,358  —  29,495  
Total operating expenses21,816  18,228  7,941  —  47,985  
Income (loss) from operations(21,816) (10,091) 13,417  —  (18,490) 
Interest expense, net(6,363) (107) 247  —  (6,223) 
Intercompany interest, net523  2,598  (3,121) —  —  
Equity in earnings (losses) of investments(1,658) 8,388  —  (6,730) —  
Other expense, net(12) (210) (474) —  (696) 
Net income (loss) before income taxes(29,326) 578  10,069  (6,730) (25,409) 
Income tax expense (benefit)656  (129) 3,599  —  4,126  
Net income (loss)(29,982) 707  6,470  (6,730) (29,535) 
Net income attributable to noncontrolling interests—  —  (447) —  (447) 
Net income (loss) applicable to ION$(29,982) $707  $6,023  $(6,730) $(29,982) 
Comprehensive net income (loss)$(29,952) $664  $6,040  $(6,257) $(29,505) 
Comprehensive income attributable to noncontrolling interest—  —  (447) —  (447) 
Comprehensive net income (loss) attributable to ION$(29,952) $664  $5,593  $(6,257) $(29,952) 
Six Months Ended June 30, 2020
Statement of Cash FlowsION Geophysical CorporationThe GuarantorsAll Other SubsidiariesTotal Consolidated
(In thousands)
Cash flows from operating activities:
Net cash provided by (used in) operating activities$16,792  $(1,234) $793  $16,351  
Cash flows from investing activities:
Cash invested in multi-client data library—  (5,323) (9,273) (14,596) 
Purchase of property, plant and equipment (35) (247) (415) (697) 
Net cash used in investing activities(35) (5,570) (9,688) (15,293) 
Cash flows from financing activities:
Borrowings under revolving line of credit27,000  —  —  27,000  
Payments under revolving line of credit(4,500) —  —  (4,500) 
Proceeds from government relief funding6,923  —  —  6,923  
Payments on notes payable and long-term debt(972) (555) —  (1,527) 
Intercompany lending(6,289) 7,353  (1,064) —  
Other financing activities5  —  —  5  
Net cash provided by (used in) financing activities22,167  6,798  (1,064) 27,901  
Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash—  —  538  538  
Net increase (decrease) in cash, cash equivalents and restricted cash38,924  (6) (9,421) 29,497  
Cash, cash equivalents and restricted cash at beginning of period8,479  26  24,613  33,118  
Cash, cash equivalents and restricted cash at end of period$47,403  $20  $15,192  $62,615  

The following table is a reconciliation of cash and cash equivalents to total cash, cash equivalents, and restricted cash:
June 30, 2020
ION Geophysical CorporationThe GuarantorsAll Other SubsidiariesTotal Consolidated
(In thousands)
 Cash and cash equivalents $47,328  $20  $15,192  $62,540  
 Restricted cash included in prepaid expenses and other assets75  —  —  75  
 Total cash, cash equivalents, and restricted cash shown in statements of cash flows $47,403  $20  $15,192  $62,615  
Six Months Ended June 30, 2019
Statement of Cash FlowsION Geophysical CorporationThe GuarantorsAll Other SubsidiariesTotal Consolidated
(In thousands)
Cash flows from operating activities:
Net cash provided by (used in) operating activities$10,447  $4,668  $(850) $14,265  
Cash flows from investing activities:
Investment in multi-client data library—  (10,215) (4,567) (14,782) 
Purchase of property, plant and equipment (146) (395) (871) (1,412) 
Net cash used in investing activities(146) (10,610) (5,438) (16,194) 
Cash flows from financing activities:
Payments on notes payable and long-term debt(868) (538) —  (1,406) 
Intercompany lending(13,511) 6,495  7,016  —  
Other financing activities(551) —  —  (551) 
Net cash provided by (used in) financing activities(14,930) 5,957  7,016  (1,957) 
Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash—  —  (102) (102) 
Net increase (decrease) in cash, cash equivalents and restricted cash(4,629) 15  626  (3,988) 
Cash, cash equivalents and restricted cash at beginning of period14,085  47  19,722  33,854  
Cash, cash equivalents and restricted cash at end of period$9,456  $62  $20,348  $29,866  

The following table is a reconciliation of cash and cash equivalents to total cash, cash equivalents, and restricted cash:
June 30, 2019
ION Geophysical CorporationThe GuarantorsAll Other SubsidiariesTotal Consolidated
(In thousands)
 Cash and cash equivalents$9,153  $62  $20,348  $29,563  
 Restricted cash included in prepaid expenses and other current assets303  —  —  303  
 Total cash, cash equivalents, and restricted cash shown in statement of cash flows$9,456  $62  $20,348  $29,866