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Condensed Consolidating Financial Information
6 Months Ended
Jun. 30, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Consolidating Financial Information
Condensed Consolidating Financial Information
The Notes were issued by ION Geophysical Corporation and are guaranteed by the Guarantors, all of which are 100-percent-owned subsidiaries. The Guarantors have fully and unconditionally guaranteed the payment obligations of ION Geophysical Corporation with respect to the 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 consolidated financial statements and footnotes. For additional information pertaining to the Notes, See Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources Exchange Offer” in Part II of this Form 10-Q.
  
 
June 30, 2016
Balance Sheet
ION Geophysical Corporation
 
The Guarantors
 
All Other Subsidiaries
 
Consolidating Adjustments
 
Total Consolidated
 
(In thousands)
ASSETS
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
25,983

 
$

 
$
26,450

 
$

 
$
52,433

Accounts receivable, net
2,479

 
7,295

 
10,320

 

 
20,094

Unbilled receivables

 
16,766

 
5,245

 

 
22,011

Inventories

 
10,210

 
24,167

 

 
34,377

Prepaid expenses and other current assets
3,699

 
994

 
12,768

 

 
17,461

Total current assets
32,161

 
35,265

 
78,950

 

 
146,376

Property, plant, equipment and seismic rental equipment, net
2,617

 
15,616

 
40,179

 

 
58,412

Multi-client data library, net

 
107,922

 
10,625

 

 
118,547

Investment in subsidiaries
648,831

 
241,166

 

 
(889,997
)
 

Goodwill

 

 
24,025

 

 
24,025

Intangible assets, net

 
3,766

 
181

 

 
3,947

Intercompany receivables
303,615

 

 

 
(303,615
)
 

Other assets
2,135

 
145

 
234

 

 
2,514

Total assets
$
989,359

 
$
403,880

 
$
154,194

 
$
(1,193,612
)
 
$
353,821

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Current maturities of long-term debt
$
15,053

 
$
4,896

 
$
422

 
$

 
$
20,371

Accounts payable
4,567

 
12,358

 
10,044

 

 
26,969

Accrued expenses
9,092

 
10,223

 
7,969

 

 
27,284

Accrued multi-client data library royalties

 
23,435

 
38

 

 
23,473

Deferred revenue

 
6,026

 
1,640

 

 
7,666

Total current liabilities
28,712

 
56,938

 
20,113

 

 
105,763

Long-term debt, net of current maturities
143,748

 
1,382

 

 

 
145,130

Intercompany payables
757,674

 
128,422

 
175,193

 
(1,061,289
)
 

Other long-term liabilities
498

 
33,639

 
9,914

 

 
44,051

Total liabilities
930,632

 
220,381

 
205,220

 
(1,061,289
)
 
294,944

Equity:
 
 
 
 
 
 
 
 
 
Common stock
118

 
290,460

 
19,138

 
(309,598
)
 
118

Additional paid-in capital
897,476

 
180,700

 
232,590

 
(413,290
)
 
897,476

Accumulated earnings (deficit)
(819,887
)
 
202,061

 
(20,569
)
 
(181,492
)
 
(819,887
)
Accumulated other comprehensive income (loss)
(18,980
)
 
4,420

 
(18,803
)
 
14,383

 
(18,980
)
Due from ION Geophysical Corporation

 
(494,142
)
 
(263,532
)
 
757,674

 

Total stockholders’ equity
58,727

 
183,499

 
(51,176
)
 
(132,323
)
 
58,727

Noncontrolling interests

 

 
150

 

 
150

Total equity
58,727

 
183,499

 
(51,026
)
 
(132,323
)
 
58,877

Total liabilities and equity
$
989,359

 
$
403,880

 
$
154,194

 
$
(1,193,612
)
 
$
353,821

 
December 31, 2015
Balance Sheet
ION Geophysical Corporation
 
The Guarantors
 
All Other Subsidiaries
 
Consolidating Adjustments
 
Total Consolidated
 
(In thousands)
ASSETS
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
33,734

 
$

 
$
51,199

 
$

 
$
84,933

Accounts receivable, net

 
35,133

 
9,232

 

 
44,365

Unbilled receivables

 
19,046

 
891

 

 
19,937

Inventories

 
10,939

 
21,782

 

 
32,721

Prepaid expenses and other current assets
5,435

 
1,458

 
7,914

 

 
14,807

Total current assets
39,169

 
66,576

 
91,018

 

 
196,763

Property, plant, equipment and seismic rental equipment, net
4,521

 
21,072

 
46,434

 

 
72,027

Multi-client data library, net

 
120,550

 
11,687

 

 
132,237

Investment in subsidiaries
680,508

 
243,319

 

 
(923,827
)
 

Goodwill

 

 
26,274

 

 
26,274

Intangible assets, net

 
4,523

 
287

 

 
4,810

Intercompany receivables
75,641

 

 

 
(75,641
)
 

Other assets
1,724

 
146

 
1,107

 

 
2,977

Total assets
$
801,563

 
$
456,186

 
$
176,807

 
$
(999,468
)
 
$
435,088

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Current maturities of long-term debt
$
486

 
$
6,856

 
$
570

 
$

 
$
7,912

Accounts payable
2,086

 
19,839

 
7,874

 

 
29,799

Accrued expenses
11,199

 
16,200

 
6,888

 

 
34,287

Accrued multi-client data library royalties

 
25,045

 

 

 
25,045

Deferred revenue

 
5,071

 
1,489

 

 
6,560

Total current liabilities
13,771

 
73,011

 
16,821

 

 
103,603

Long-term debt, net of current maturities
171,672

 
3,408

 

 

 
175,080

Intercompany payables
503,621

 
68,286

 
7,355

 
(579,262
)
 

Other long-term liabilities
540

 
33,305

 
10,520

 

 
44,365

Total liabilities
689,604

 
178,010

 
34,696

 
(579,262
)
 
323,048

Equity:
 
 
 
 
 
 
 
 
 
Common stock
107

 
290,460

 
19,138

 
(309,598
)
 
107

Additional paid-in capital
894,715

 
180,700

 
234,234

 
(414,934
)
 
894,715

Accumulated earnings (deficit)
(759,531
)
 
231,208

 
(21,729
)
 
(209,479
)
 
(759,531
)
Accumulated other comprehensive income (loss)
(14,781
)
 
4,420

 
(14,604
)
 
10,184

 
(14,781
)
Due from ION Geophysical Corporation

 
(428,612
)
 
(75,009
)
 
503,621

 

Treasury stock
(8,551
)
 

 

 

 
(8,551
)
Total stockholders’ equity
111,959

 
278,176

 
142,030

 
(420,206
)
 
111,959

Noncontrolling interests

 

 
81

 

 
81

Total equity
111,959

 
278,176

 
142,111

 
(420,206
)
 
112,040

Total liabilities and equity
$
801,563

 
$
456,186

 
$
176,807

 
$
(999,468
)
 
$
435,088

 
Three Months Ended June 30, 2016
Income Statement
ION Geophysical Corporation
 
The Guarantors
 
All Other Subsidiaries
 
Consolidating Adjustments
 
Total Consolidated
 
(In thousands)
Net revenues
$

 
$
17,590

 
$
18,564

 
$
(2
)
 
$
36,152

Cost of sales

 
22,910

 
8,391

 
(2
)
 
31,299

Gross profit (loss)

 
(5,320
)
 
10,173

 

 
4,853

Total operating expenses
9,791

 
6,685

 
4,965

 

 
21,441

Income (loss) from operations
(9,791
)
 
(12,005
)
 
5,208

 

 
(16,588
)
Interest expense, net
(4,641
)
 
(77
)
 
16

 

 
(4,702
)
Intercompany interest, net
219

 
(1,095
)
 
876

 

 

Equity in earnings (losses) of investments
(8,976
)
 
5,932

 

 
3,044

 

Other income (expense)
(2,112
)
 
182

 
213

 

 
(1,717
)
Net income (loss) before income taxes
(25,301
)
 
(7,063
)
 
6,313

 
3,044

 
(23,007
)
Income tax expense
41

 
496

 
1,719

 

 
2,256

Net income (loss)
(25,342
)
 
(7,559
)
 
4,594

 
3,044

 
(25,263
)
Net income attributable to noncontrolling interests

 

 
(79
)
 

 
(79
)
Net income (loss) attributable to ION
(25,342
)
 
(7,559
)
 
4,515

 
3,044

 
(25,342
)
Comprehensive net loss
$
(28,057
)
 
$
(7,559
)
 
$
1,800

 
$
5,816

 
$
(28,000
)
Comprehensive income attributable to noncontrolling interest

 

 
(79
)
 

 
(79
)
Comprehensive net income (loss) attributable to ION
$
(28,057
)
 
$
(7,559
)
 
$
1,721

 
$
5,816

 
$
(28,079
)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2015
Income Statement
ION Geophysical Corporation
 
The Guarantors
 
All Other Subsidiaries
 
Consolidating Adjustments
 
Total Consolidated
 
(In thousands)
Net revenues
$

 
$
22,465

 
$
14,765

 
$
(435
)
 
$
36,795

Cost of sales

 
28,227

 
19,138

 
(435
)
 
46,930

Gross loss

 
(5,762
)
 
(4,373
)
 

 
(10,135
)
Total operating expenses
6,466

 
12,805

 
11,283

 

 
30,554

Loss from operations
(6,466
)
 
(18,567
)
 
(15,656
)
 

 
(40,689
)
Interest expense, net
(4,506
)
 
(100
)
 
(1
)
 

 
(4,607
)
Intercompany interest, net
143

 
(745
)
 
602

 

 

Equity in earnings (losses) of investments
66,986

 
(14,028
)
 

 
(52,958
)
 

Other income (expense)
(29
)
 
101,954

 
(325
)
 

 
101,600

Net income (loss) before income taxes
56,128

 
68,514

 
(15,380
)
 
(52,958
)
 
56,304

Income tax expense
59

 
123

 
350

 

 
532

Net income (loss)
56,069

 
68,391

 
(15,730
)
 
(52,958
)
 
55,772

Net loss attributable to noncontrolling interests

 

 
297

 

 
297

Net income (loss) attributable to ION
56,069

 
68,391

 
(15,433
)
 
(52,958
)
 
56,069

Comprehensive net income (loss)
$
58,022

 
$
70,390

 
$
(13,731
)
 
$
(56,956
)
 
$
57,725

Comprehensive loss attributable to noncontrolling interest

 

 
297

 

 
297

Comprehensive net income (loss) attributable to ION
$
58,022

 
$
70,390

 
$
(13,434
)
 
$
(56,956
)
 
$
58,022

 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 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
$
11,112

 
$
7,580

 
$
(31,031
)
 
$
(12,339
)
Cash flows from investing activities:
 
 
 
 
 
 
 
Cash invested in multi-client data library

 
(8,648
)
 

 
(8,648
)
Purchase of property, plant, equipment and seismic rental equipment

 
(340
)
 

 
(340
)
Net cash used in investing activities

 
(8,988
)
 

 
(8,988
)
Cash flows from financing activities:
 
 
 
 
 
 
 
Borrowings under revolving line of credit
15,000

 

 

 
15,000

Repurchase of common stock
(964
)
 

 

 
(964
)
Payments on notes payable and long-term debt
(433
)
 
(3,986
)
 
(367
)
 
(4,786
)
Costs associated with issuance of debt
(6,174
)
 

 

 
(6,174
)
Intercompany lending
(11,305
)
 
5,394

 
5,911

 

Payment to repurchase bonds
(15,000
)
 

 

 
(15,000
)
Other financing activities
13

 

 

 
13

Net cash provided by (used in) financing activities
(18,863
)
 
1,408

 
5,544

 
(11,911
)
Effect of change in foreign currency exchange rates on cash and cash equivalents

 

 
738

 
738

Net decrease in cash and cash equivalents
(7,751
)
 

 
(24,749
)
 
(32,500
)
Cash and cash equivalents at beginning of period
33,734

 

 
51,199

 
84,933

Cash and cash equivalents at end of period
$
25,983

 
$

 
$
26,450

 
$
52,433

 
Six Months Ended June 30, 2015
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
$
(78,847
)
 
$
46,942

 
$
9,410

 
$
(22,495
)
Cash flows from investing activities:
 
 
 
 
 
 
 
Investment in multi-client data library

 
(12,728
)
 
(870
)
 
(13,598
)
Purchase of property, plant, equipment and seismic rental equipment
(347
)
 
(774
)
 
(16,092
)
 
(17,213
)
Other investing activities

 
257

 

 
257

Net cash used in investing activities
(347
)
 
(13,245
)
 
(16,962
)
 
(30,554
)
Cash flows from financing activities:
 
 
 
 
 
 
 
Payments on notes payable and long-term debt

 
(2,927
)
 
(633
)
 
(3,560
)
Intercompany lending
29,755

 
(30,770
)
 
1,015

 

Other financing activities
22

 

 

 
22

Net cash provided by (used in) financing activities
29,777

 
(33,697
)
 
382

 
(3,538
)
Effect of change in foreign currency exchange rates on cash and cash equivalents

 

 
39

 
39

Net decrease in cash and cash equivalents
(49,417
)
 

 
(7,131
)
 
(56,548
)
Cash and cash equivalents at beginning of period
109,514

 

 
64,094

 
173,608

Cash and cash equivalents at end of period
$
60,097

 
$

 
$
56,963

 
$
117,060