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Concentrations of Credit Risk
 12 Months Ended
Dec. 31, 2011
Concentrations of Credit Risk
16. Concentrations of Credit Risk

Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of demand deposits, temporary cash investments and trade receivables.

The Company believes it has placed its demand deposits and temporary cash investments with high credit-quality financial institutions. At December 31, 2011 and 2010, the Company’s demand deposits and temporary cash investments consisted of the following (in thousands):

 

     2011     2010  

Deposits in FDIC and SIPC-insured institutions under insurance limits

    $ 289      $ 1,523   

Deposits in FDIC and SIPC-insured institutions over insurance limits

      50,035        51,625   

Deposits in foreign banks

      18,823        11,533   
  

 

 

    

 

 

  
     69,147        64,681   

Less outstanding checks and other reconciling items

      (45,201 )      (37,069 ) 
  

 

 

    

 

 

  

Cash and cash equivalents

    $ 23,946      $ 27,612   
  

 

 

    

 

 

  

Concentrations of credit risk with respect to trade receivables are primarily focused on companies involved in the exploration and development of oil and natural gas properties. The concentration is somewhat mitigated by the diversification of customers for which the Company provides services. As is general industry practice, the Company typically does not require customers to provide collateral. No significant losses from individual customers were experienced during the years ended December 31, 2011, 2010 or 2009. No provision for bad debts was recognized in 2011. The Company recorded a provision for bad debts for 2010 and 2009 of $(2.0) million and $3.8 million, respectively.