XML 98 R26.htm IDEA: XBRL DOCUMENT v2.4.0.6
Concentrations of Credit Risk
 12 Months Ended
Dec. 31, 2012
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, 2012 and 2011, the Company’s demand deposits and temporary cash investments consisted of the following (in thousands):

 

     2012     2011  

Deposits in FDIC and SIPC-insured institutions under insurance limits

    $ 270      $ 289   

Deposits in FDIC and SIPC-insured institutions over insurance limits

      161,195        50,035   

Deposits in foreign banks

      22,511        18,823   
  

 

 

    

 

 

  
     183,976        69,147   

Less outstanding checks and other reconciling items

      (73,253 )      (45,201 ) 
  

 

 

    

 

 

  

Cash and cash equivalents

    $ 110,723      $ 23,946   
  

 

 

    

 

 

  

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, 2012, 2011 or 2010. The Company recorded a $1.1 million provision for bad debt in 2012. No provision for bad debts was recognized in 2011. The Company recorded a negative provision for bad debts of $2.0 million in 2010.