To characterize an earth subterranean structure using a measurement assembly including electromagnetic (EM) receivers and one or more EM sources, measured voltage data collected by EM receivers in response to transmission by one or more EM sources is received. Based on a model, predicted EM data is computed. Inversion is iteratively performed according to a function that computes a difference between the measured voltage data and a product of a term containing the predicted EM data and a term containing distortion data that accounts at least for distortion effect by an environment of the measurement assembly. The inversion is iteratively performed to solve for parameters of the model and the distortion data.