Internap (INAPQ) 10-Q 3 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Sep. 30, 2016shares
Document and Entity Information Abstract
Entity Registrant Name	Internap Corp
Entity Central Index Key	1,056,386
Trading Symbol	inap
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock Shares Outstanding	58,245,920
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues:
Total revenues	$ 73,940	$ 78,318	$ 224,180	$ 239,536
Direct costs of sales and services, exclusive of depreciation and amortization, shown below:
Direct costs of customer support	7,985	9,173	24,709	27,381
Sales, general and administrative	18,355	19,098	55,416	62,642
Depreciation and amortization	19,597	24,631	57,927	67,404
Goodwill impairment	78,169		78,169
Exit activities, restructuring and impairments	1,670	920	2,023	1,245
Total operating costs and expenses	157,338	87,503	312,253	258,678
Loss from operations	(83,398)	(9,185)	(88,073)	(19,142)
Non-operating expenses:
Interest expense	7,878	6,923	22,945	20,613
Other, net	(30)	(288)	442	(763)
Total non-operating expenses	7,848	6,635	23,387	19,850
Loss before income taxes and equity in earnings of equity-method investment	(91,246)	(15,820)	(111,460)	(38,992)
Provision (benefit) for income taxes	95	(1,612)	294	(1,723)
Equity in earnings of equity-method investment, net of taxes	(44)	(11)	(121)	(96)
Net loss	(91,297)	(14,197)	(111,633)	(37,173)
Other comprehensive income (loss):
Foreign currency translation adjustment	122	49	239	(109)
Unrealized (loss) gain on foreign currency contracts	(93)	(192)	620	(379)
Unrealized gain (loss) on interest rate swap	198	47	534	(102)
Total other comprehensive income (loss)	227	(96)	1,393	(590)
Comprehensive loss	$ (91,070)	$ (14,293)	$ (110,240)	$ (37,763)
Basic and diluted net loss per share (in dollars per share)	$ (1.75)	$ (0.27)	$ (2.14)	$ (0.72)
Weighted average shares outstanding used in computing basic and diluted net loss per share: (in shares)	52,096	51,699	52,245	51,763
Operating segments
Revenues:
Total revenues	$ 73,940	$ 78,318	$ 224,180	$ 239,536
Direct costs of sales and services, exclusive of depreciation and amortization, shown below:
Direct costs of sales and services, exclusive of depreciation and amortization	31,562	33,681	94,009	100,006
Goodwill impairment			78,169
Operating segments | Data center and network services
Revenues:
Total revenues	49,767	52,440	151,099	160,029
Direct costs of sales and services, exclusive of depreciation and amortization, shown below:
Direct costs of sales and services, exclusive of depreciation and amortization	25,042	26,739	74,065	79,337
Goodwill impairment			78,169
Operating segments | Cloud And Hosting Services
Revenues:
Total revenues	24,173	25,878	73,081	79,507
Direct costs of sales and services, exclusive of depreciation and amortization, shown below:
Direct costs of sales and services, exclusive of depreciation and amortization	$ 6,520	$ 6,942	19,944	$ 20,669
Goodwill impairment

UNAUDITED CONDENSED CONSOLIDAT3

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 9,640	$ 17,772
Accounts receivable, net of allowance for doubtful accounts of $1,270 and $1,751, respectively	17,832	20,292
Prepaid expenses and other assets	10,710	12,405
Total current assets	38,182	50,469
Property and equipment, net	315,273	328,700
Investment in joint venture	3,206	2,768
Intangible assets, net	30,323	32,887
Goodwill	52,144	130,313
Deposits and other assets	8,968	9,474
Total assets	448,096	554,611
Current liabilities:
Accounts payable	25,897	22,607
Accrued liabilities	9,958	10,737
Deferred revenues	6,110	6,603
Capital lease obligations	9,649	8,421
Term loan, less discount and prepaid costs of $2,218 and $1,784, respectively	782	1,215
Exit activities and restructuring liability	1,038	2,034
Other current liabilities	1,240	2,566
Total current liabilities	54,674	54,183
Deferred revenues	4,981	4,759
Capital lease obligations	45,580	48,692
Revolving credit facility	35,500	31,000
Term loan, less discount and prepaid costs of $5,153 and $5,703, respectively	283,597	285,298
Exit activities and restructuring liability	1,350	1,844
Deferred rent	7,389	8,879
Deferred tax liability	1,364	880
Other long-term liabilities	4,396	4,640
Total liabilities	438,831	440,175
Commitments and contingencies (note 9)
Stockholders' equity:
Preferred stock, $0.001 par value; 20,000 shares authorized; no shares issued or outstanding
Common stock, $0.001 par value; 120,000 shares authorized; 58,246 and 55,971 shares outstanding, respectively	58	56
Additional paid-in capital	1,283,051	1,277,511
Treasury stock, at cost; 1,020 and 826 shares, respectively	(6,866)	(6,393)
Accumulated deficit	(1,265,590)	(1,153,957)
Accumulated items of other comprehensive loss	(1,388)	(2,781)
Total stockholders' equity	9,265	114,436
Total liabilities and stockholders' equity	$ 448,096	$ 554,611

UNAUDITED CONDENSED CONSOLIDAT4

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Allowance for doubtful accounts receivable (in dollars)	$ 1,270	$ 1,751
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000	20,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	120,000	120,000
Common stock, shares outstanding	58,246	55,971
Treasury stock, shares	1,020	826
Term loan current
Term loan, discount (in dollars)	$ 2,218	$ 1,784
Term loan noncurrent
Term loan, discount (in dollars)	$ 5,153	$ 5,703

UNAUDITED CONDENSED CONSOLIDAT5

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash Flows from Operating Activities:
Net loss	$ (111,633)	$ (37,173)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	57,927	67,404
Impairments	79,798	232
Amortization of debt discount and issuance costs	1,881	1,498
Stock-based compensation expense, net of capitalized amount	4,717	6,200
Equity in earnings of equity-method investment	(121)	(96)
Provision for doubtful accounts	902	922
Non-cash change in capital lease obligations	405	(1,167)
Non-cash change in exit activities and restructuring liability	865	1,400
Non-cash change in deferred rent	(1,490)	(1,287)
Deferred taxes	158	(2,181)
Payment of debt lender fees	(1,716)
Other, net	212	230
Changes in operating assets and liabilities:
Accounts receivable	1,894	(3,459)
Prepaid expenses, deposits and other assets	1,108	836
Accounts payable	4,853	(7,748)
Accrued and other liabilities	(629)	(1,862)
Deferred revenues	(304)	624
Exit activities and restructuring liability	(2,355)	(2,014)
Asset retirement obligation	(174)
Other liabilities	(33)	34
Net cash flows provided by operating activities	36,265	22,393
Cash Flows from Investing Activities:
Proceeds from sale of building	542
Purchases of property and equipment	(38,732)	(41,299)
Additions to acquired and developed technology	(1,211)	(1,120)
Net cash flows used in investing activities	(39,401)	(42,419)
Cash Flows from Financing Activities:
Proceeds from credit agreements	4,500	21,000
Principal payments on credit agreements	(2,250)	(2,250)
Payments on capital lease obligations	(7,211)	(5,718)
Proceeds from exercise of stock options	675	6,005
Acquisition of common stock for income tax withholdings	(473)	(1,332)
Other, net	(250)	869
Net cash flows (used in) provided by financing activities	(5,009)	18,574
Effect of exchange rates on cash and cash equivalents	13	(320)
Net decrease in cash and cash equivalents	(8,132)	(1,772)
Cash and cash equivalents at beginning of period	17,772	20,084
Cash and cash equivalents at end of period	9,640	18,312
Supplemental disclosure of cash flow information:
Cash paid for interest	21,957	19,712
Non-cash acquisition of property and equipment under capital leases	4,921	4,342
Additions to property and equipment included in accounts payable	$ 3,606	$ 3,540

NATURE OF OPERATIONS AND BASIS

NATURE OF OPERATIONS AND BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation Of Financial Statements [Abstract]
NATURE OF OPERATIONS AND BASIS OF PRESENTATION	1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION Internap Corporation (“we,” “us” or “our”) provides high-performance Internet infrastructure services at 51 data centers across North America, Europe and the Asia-Pacific region and through 83 Internet Protocol (“IP”) service points. We have prepared the accompanying unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. These financial statements include all of our accounts and those of our wholly-owned subsidiaries. We have eliminated all intercompany transactions and balances in the accompanying financial statements. We have condensed or omitted certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP. In the opinion of management, the accompanying financial statements reflect all adjustments, which consist of normal recurring adjustments unless otherwise disclosed, necessary for a fair statement of our financial position as of September 30, 2016 and our operating results and cash flows for the interim periods presented. The balance sheet at December 31, 2015 was derived from our audited financial statements, but does not include all disclosures required by GAAP. You should read the accompanying financial statements and the related notes in conjunction with our financial statements and notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2015 filed with the Securities and Exchange Commission. The preparation of financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. Actual results may differ materially from these estimates. The results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for any future periods.

CHANGE IN ORGANIZATIONAL STRUCT

CHANGE IN ORGANIZATIONAL STRUCTURE AND REALIGNMENT OF EXPENSES	9 Months Ended
	Sep. 30, 2016
Change In Organizational Structure And Realignment Of Expenses [Abstract]
CHANGE IN ORGANIZATIONAL STRUCTURE AND REALIGNMENT OF EXPENSES	2. CHANGE IN ORGANIZATIONAL STRUCTURE AND REALIGNMENT OF EXPENSES During the three months ended March 31, 2016, we changed our organizational structure in an effort to create more effective and efficient operations and to improve customer and product focus. In that regard, we revised the information that our chief executive officer, who is also our chief operating decision maker, regularly reviews for purposes of allocating resources and assessing performance. As a result, beginning January 1, 2016, we report our financial performance based on our new segments, described in note 10 “Operating Segments.” We have reclassified prior period amounts to conform to the current presentation. In addition, in conjunction with the change in our organizational structure, we reclassified certain costs included in the expense categories on our consolidated statement of operations, which resulted in the following: a reclassification of The prior year reclassifications, which did not affect total revenues, total direct costs of sales and services, operating loss or net loss, are summarized as follows (in thousands): Three Months Ended September 30, 2015 As Previously Reclassification As Reported Revenues: Data center services $ 58,622 $ (58,622 ) $ — IP services 19,696 (19,696 ) — Data center and network services — 52,440 52,440 Cloud and hosting services — 25,878 25,878 Direct costs of sales and services, exclusive of depreciation and amortization: Data center services 25,111 (25,111 ) — IP services 8,570 (8,570 ) — Data center and network services — 26,739 26,739 Cloud and hosting services — 6,942 6,942 Direct costs of amortization of acquired and developed technologies 816 (816 ) — Sales and marketing 8,305 (8,305 ) — General and administrative 10,793 (10,793 ) — Sales, general and administrative (“SGA”) — 19,098 19,098 Depreciation and amortization 23,815 816 24,631 Nine Months Ended September 30, 2015 As Previously Reclassification As Reported Revenues: Data center services $ 177,142 $ (177,142 ) $ — IP services 62,394 (62,394 ) — Data center and network services — 160,029 160,029 Cloud and hosting services — 79,507 79,507 Direct costs of sales and services, exclusive of depreciation and amortization: Data center services 73,711 (73,711 ) — IP services 26,295 (26,295 ) — Data center and network services — 79,337 79,337 Cloud and hosting services — 20,669 20,669 Direct costs of amortization of acquired and developed technologies 2,557 (2,557 ) — Sales and marketing 28,347 (28,347 ) — General and administrative 34,295 (34,295 ) — SGA — 62,642 62,642 Depreciation and amortization 64,847 2,557 67,404 SGA expense consists primarily of costs related to sales and marketing, compensation and other expense for executive, finance, product development, human resources and administrative personnel, professional fees and other general corporate costs.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	3. FAIR VALUE MEASUREMENTS We account for certain assets and liabilities at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: • Level 1: Quoted prices in active markets for identical assets or liabilities; • Level 2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Assets and liabilities measured at fair value on a recurring basis are summarized as follows (in thousands): Level 1 Level 2 Level 3 Total September 30, 2016: Foreign currency contracts (note 8) $ — $ 135 $ — $ 135 Interest rate swap (note 8) — 194 — 194 Asset retirement obligations (1) — — 2,758 2,758 December 31, 2015: Foreign currency contracts (note 8) — 1,019 — 1,019 Interest rate swap (note 8) — 728 — 728 Asset retirement obligations (1) — — 2,803 2,803 (1) We calculate the fair value of asset retirement obligations by discounting the estimated amount using the current Treasury bill rate adjusted for our credit non-performance. At September 30, 2016 and December 31, 2015, the balance of the asset retirement obligation was $0 and $0.2 million, respectively, which we included in “Other current liabilities,” and $2.8 million and $2.6 million, respectively, which we included in “Other long-term liabilities,” in the accompanying consolidated balance sheets. The following table provides a summary of changes in our Level 3 asset retirement obligations for the nine months ended September 30, 2016 (in thousands): Balance, January 1, 2016 $ 2,803 Accretion 155 Payments (174 ) Gain on settlement (26 ) Balance, September 30, 2016 $ 2,758 The fair values of our other Level 3 debt liabilities, estimated using a discounted cash flow analysis based on incremental borrowing rates for similar types of borrowing arrangements, are as follows (in thousands): September 30, 2016 December 31, 2015 Carrying Fair Carrying Fair Amount Value Amount Value Term loan $ 291,750 $ 305,000 $ 294,000 $ 303,000 Revolving credit facility 35,500 35,600 31,000 30,400

DEVELOPED SOFTWARE

DEVELOPED SOFTWARE	9 Months Ended
	Sep. 30, 2016
Developed Software [Abstract]
DEVELOPED SOFTWARE	4. DEVELOPED SOFTWARE During the three months ended September 30, 2016, we determined that we would not use certain internally-developed software related to our quoting and billing system, which affects both of our reportable segments, and recorded an impairment of $1.6 million. We include the impairment in “Exit activities, restructuring and impairments” in the consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2016.

GOODWILL

GOODWILL	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL	5. GOODWILL During the three months ended March 31, 2016, we changed our operating segments, as discussed in note 10 “Operating Segments,” and, subsequently, our reporting units. We now have five reporting units: IP services, IP products, data center services (“DCS”), cloud and hosting services and hosting products. We allocated goodwill to our new reporting units using a relative fair value approach. In addition, we completed an assessment of any potential goodwill impairment for all reporting units immediately prior to and after the reallocation and determined that no impairment existed. We performed our annual impairment review as of August 1, 2016. To determine the estimated fair value of our reporting units, we utilized the discounted cash flow and market methods. We have consistently utilized both methods in our goodwill impairment assessments and weighted both as appropriate based on relevant factors for each reporting unit. The discounted cash flow method is specific to our anticipated future results of the reporting unit, while the market method is based on our market sector including our competitors. We determined the assumptions supporting the discounted cash flow method, including the discount rate, using our estimates as of the date of the impairment review. To determine the reasonableness of these assumptions, we considered our past performance and empirical trending of results, looked to market and industry expectations and further performed various sensitivity analyses on certain of the assumptions used in the discounted cash flow method, such as forecasted revenues and discount rate. We used reasonable judgment in developing our estimates and assumptions. The market method estimates fair value based on market multiples of revenue and earnings derived from comparable companies with similar operating and investment characteristics as the reporting unit. The assumptions, inputs and judgments used in performing the valuation analysis are inherently subjective and reflect estimates based on known facts and circumstances at the time we perform the valuation. These estimates and assumptions primarily include, but are not limited to, discount rates; terminal growth rates; projected revenues and costs; earnings before interest, taxes, depreciation and amortization for expected cash flows; market comparables and capital expenditure forecasts. The use of different assumptions, inputs and judgments, or changes in circumstances, could materially affect the results of the valuation. Due to inherent uncertainty involved in making these estimates, actual results could differ from our estimates and could result in additional non-cash impairment charges in the future. During our annual impairment assessment, we determined based on the step 1 test that the fair value of each of our IP services, IP products and DCS reporting units, all included within our Data Center and Network Services segment, was below its carrying value. We then started the step 2 test on each of these reporting units. For the three months ended September 30, 2016, based on the initial result of our step 2 test, we recorded an impairment estimate of $78.2 million to adjust goodwill in our Data Center and Network Services segment, leaving a remainder of $1.9 million of goodwill in this segment. Due to the complexity and the effort required to estimate the fair value of the IP services, IP products and DCS reporting units in step 1 of the impairment test and to estimate the fair value of all assets and liabilities of each of the reporting units in step 2 of the test, we derived the fair value estimates based on preliminary assumptions and analysis that are subject to change. We will record any adjustment to the estimated impairment charge in the fourth quarter of 2016. The goodwill impairment is primarily due to declines in our data center services, IP services and IP products revenues and operating results as compared to our projections. The declines in revenues and operating results compared to projections are attributable to lower than expected demand creation and customer retention. Prior to conducting step 1 of the goodwill impairment test for the IP services, IP products and DCS reporting units, we evaluated the recoverability of the long-lived assets, including purchased intangible assets. When indicators of impairment are present, we test long-lived assets (other than goodwill) for recoverability by comparing the carrying value of an asset group to its undiscounted cash flows. We considered the lower than expected revenue and profitability levels as business indicators of impairment for the long-lived assets of each of these reporting units. Based on the results of the recoverability test, we determined that the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition exceeded the carrying value of the asset groups and were therefore recoverable. We did not recognize any impairment charges for long-lived assets as a result of this analysis. During the nine months ended September 30, 2016, the summary of our re-allocations and impairment of goodwill is as follows (in thousands): December 31, 2015 Re-allocations Impairment September 30, 2016 Reportable segments: Data center services $ 90,849 $ (90,849 ) $ — $ — IP services 39,464 (39,464 ) — — Data center and network services — 80,104 (78,169 ) 1,935 Cloud and hosting services — 50,209 — 50,209 Total $ 130,313 $ — $ (78,169 ) $ 52,144

DEBT

DEBT	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
DEBT	6. DEBT During the three months ended June 30, 2016, we entered into an amendment to our credit agreement, which, among other things, amended the interest coverage ratio and leverage ratio covenants to make them less restrictive and increased the applicable margin for the revolving credit facility and term loan by 1.0%. We paid a one-time aggregate fee of $1.7 million to the lenders for the amendment, which we recorded as a debt discount of $1.5 million related to the term loan and prepaid debt issuance costs of $0.2 million related to the revolving credit facility. In addition, we paid $0.4 million in third-party fees, which we recorded as expense of $0.3 million related to the term loan and as prepaid debt issuance costs of $0.1 million related to the revolving credit facility. Since the recording of the amendment was a modification of our previous credit agreement, we will continue to amortize the debt discount and prepaid issuance costs on our previous credit agreement. During the three and nine months ended September 30, 2016, we amortized, as interest expense, $0.6 million and $1.9 million, respectively, of the total debt discount and prepaid debt issuance costs.

EXIT ACTIVITIES AND RESTRUCTURI

EXIT ACTIVITIES AND RESTRUCTURING LIABILITIES	9 Months Ended
	Sep. 30, 2016
Restructuring and Related Activities [Abstract]
EXIT ACTIVITIES AND RESTRUCTURING LIABILITIES	7. EXIT ACTIVITIES AND RESTRUCTURING LIABILITIES During the nine months ended September 30, 2016, we recorded initial restructuring charges primarily due to ceasing use of office facilities. We also recorded subsequent plan adjustments in sublease income assumptions for certain properties included in our previously-disclosed plans. We include the initial charges and plan adjustments in “Exit activities, restructuring and impairments” in the accompanying statements of operations and comprehensive loss for the three and nine months ended September 30, 2016 and 2015. The following table displays the transactions and balances for exit activities and restructuring charges, substantially related to our data center and network services segment, during the nine months ended September 30, 2016 and 2015 (in thousands): December 31, Initial Plan Cash September 30, Real estate obligations: 2016 exit activities $ — $ 239 $ (9 ) $ (170 ) $ 60 2015 exit activities 1,007 — (5 ) (275 ) 727 2014 exit activities 1,701 — 85 (474 ) 1,312 2007 restructuring 1,170 — 555 (1,436 ) 289 Total $ 3,878 $ 239 $ 626 $ (2,355 ) $ 2,388 December 31, Initial Plan Cash September 30, Real estate obligations: 2015 exit activities $ — $ 683 $ — $ (75) $ 608 2014 exit activities 2,010 — 232 (407 ) 1,835 2007 restructuring 2,325 — 490 (1,362 ) 1,453 Other 175 — (6 ) (169 ) — Total $ 4,510 $ 683 $ 716 $ (2,013 ) $ 3,896

DERIVATIVES

DERIVATIVES	9 Months Ended
	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVES	8. DERIVATIVES Foreign Currency Contracts We have foreign currency contracts to mitigate the risk of a portion of our Canadian compensation expense. These contracts will hedge foreign exchange variations between the United States and Canadian dollar and commit us to purchase a total of $12.0 million Canadian dollars at an exchange rate of 1.2855 through June 2017. As of September 30, 2016 and December 31, 2015, the fair value of our foreign currency contracts was $0.1 million and $0.7 million, respectively, included in “Other current liabilities,” and $0 and $0.3 million, respectively, included in “Other long-term liabilities,” in the accompanying consolidated balance sheets. The activity of the foreign currency contracts was as follows (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Unrealized (loss) gain, net of less than $0.1 million income tax, included in “Accumulated items of other comprehensive loss” in the accompanying consolidated balance sheets $ (93 ) $ (192 ) $ 620 $ (379 ) Realized loss on effective portion, included as compensation expense in “Direct costs of customer support” and “Sales, general and administrative” in the accompanying consolidated statements of operations and comprehensive loss (37 ) (238 ) (236 ) (440 ) Interest Rate Swap We have an interest rate swap to manage exposure to interest rate movements of our credit agreement. Our interest rate swap involves the receipt of variable rate amounts from a counterparty in exchange for us making fixed-rate payments, over 1.5%, over the life of the agreement without exchange of the underlying notional amount. The cash flow hedge has a notional amount starting at $150.0 million through December 31, 2016. As of September 30, 2016 and December 31, 2015, the fair value of our interest rate swap was $0.2 million and $0.7 million, respectively, and is included in “Other current liabilities” in the accompanying consolidated balance sheets. We record the effective portion of the change in fair value of our interest rate swap in “Accumulated items of other comprehensive loss” in the accompanying consolidated balance sheets. We did not recognize any hedge ineffectiveness during either of the three and nine months ended September 30, 2016 and 2015. We will reclassify amounts reported in “Accumulated items of other comprehensive loss” related to our interest rate swaps to “Interest expense” in our accompanying consolidated statements of operations and comprehensive loss as we accrue interest payments on our variable-rate debt. Through December 31, 2016, we estimate that we will reclassify an additional $0.2 million as an increase to interest expense since the hedge interest rate currently exceeds the variable interest rate on our debt. The activity of our interest rate swap is summarized as follows (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Gain (loss) recorded as the effective portion of the change in fair value $ 198 $ 47 $ 534 $ (102 ) Interest payments reclassified as an increase to interest expense 199 201 594 598

COMMITMENTS, CONTINGENCIES AND

COMMITMENTS, CONTINGENCIES AND LITIGATION	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS, CONTINGENCIES AND LITIGATION	9. COMMITMENTS, CONTINGENCIES AND LITIGATION We are subject to legal proceedings, claims and litigation arising in the ordinary course of business. Although the outcome of these matters is currently not determinable, we do not expect that the ultimate costs to resolve these matters will have a material adverse impact on our financial condition, results of operations or cash flows.

OPERATING SEGMENTS

OPERATING SEGMENTS	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
OPERATING SEGMENTS	10. OPERATING SEGMENTS During the three months ended March 31, 2016, we changed our organizational structure in an effort to create more effective and efficient business operations and to improve customer and product focus. In that regard, we revised the information that our chief executive officer, who is also our chief operating decision maker, regularly reviews for purposes of allocating resources and assessing performance. As a result, beginning January 1, 2016, we now report our financial performance based on our two new reportable segments, Data Center and Network Services and Cloud and Hosting Services, as follows: Data Center and Network Services Our Data Center and Network Services segment consists of colocation and Internet Protocol (“IP”) connectivity services. Colocation Colocation involves providing physical space within data centers and associated services such as power, interconnection, environmental controls, monitoring and security while allowing our customers to deploy and manage their servers, storage and other equipment in our secure data centers. We sell our colocation services at 51 data centers across North America, Europe and the Asia-Pacific region. We refer to 15 of these facilities as “company-controlled,” meaning we control the data center operations, staffing and infrastructure and have negotiated long-term leases for the facilities. For company-controlled facilities, in most cases we design the data center infrastructure, procure the capital equipment, deploy the infrastructure and are responsible for the operation and maintenance of the facility. We refer to the remaining 36 data centers as “partner” sites. In these locations, a third party designs and deploys the infrastructure and provides for the operation and maintenance of the facility. IP Connectivity IP connectivity includes our patented Performance IP™ service, content delivery network services, IP routing hardware and software platform and Managed Internet Route Optimizer™ Controller. By intelligently routing traffic with redundant, high-speed connections over multiple, major Internet backbones, our IP connectivity provides high-performance and highly-reliable delivery of content, applications and communications to end users globally. We deliver our IP connectivity through 83 IP service points around the world. Cloud and Hosting Services Our cloud and hosting services segment consists of hosted Infrastructure-as-a-Service as a cloud platform or via managed hosting. For both Infrastructure-as-a-Service options, we provision and maintain the hardware, data center infrastructure and interconnection, while allowing our customers to own and manage their software applications and content. Cloud Cloud services involve providing compute and storage services via an integrated platform that includes servers, storage and network. We built our next generation cloud platform with our high-density colocation, Performance IP service and OpenStack, a leading open source technology for cloud services. We deliver our cloud services in eight locations across North America, Europe and the Asia-Pacific region. Managed Hosting Managed hosting involves providing a single tenant infrastructure environment consisting of servers, storage and network. We deliver this customizable infrastructure platform based on enterprise-class technology to support complex application and compliance requirements for our customers. We deliver our managed hosting services in 11 locations across North America, Europe and the Asia-Pacific region. Segment Results The following table provides segment results, with prior period amounts reclassified to conform to the current presentation (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Revenues: Data center and network services $ 49,767 $ 52,440 $ 151,099 $ 160,029 Cloud and hosting services 24,173 25,878 73,081 79,507 Total revenues 73,940 78,318 224,180 239,536 Direct costs of sales and services, exclusive of depreciation and amortization: Data center and network services 25,042 26,739 74,065 79,337 Cloud and hosting services 6,520 6,942 19,944 20,669 Total direct costs of sales and services, exclusive of depreciation and amortization 31,562 33,681 94,009 100,006 Segment profit: Data center and network services 24,725 25,701 77,034 80,692 Cloud and hosting services 17,653 18,936 53,137 58,838 Total segment profit 42,378 44,637 130,171 139,530 Exit activities, restructuring and impairments, including goodwill impairment 79,839 920 80,192 1,245 Other operating expenses, including direct costs of customer support, depreciation and amortization 45,937 52,902 138,052 157,427 Loss from operations (83,398 ) (9,185 ) (88,073 ) (19,142 ) Non-operating expense 7,848 6,635 23,387 19,850 Loss before income taxes and equity in (earnings) of equity-method investment $ (91,246 ) $ (15,820 ) $ (111,460 ) $ (38,992 ) The prior year reclassifications, which did not affect total segment profit, are summarized as follows (in thousands): Three Months Ended September 30, 2015 As Reclassification As Reported Segment profit: Data center services $ 33,511 $ (33,511 ) $ — IP services 11,126 (11,126 ) — Data center and network services — 25,701 25,701 Cloud and hosting services — 18,936 18,936 Total segment profit $ 44,637 $ — $ 44,637 Nine Months Ended September 30, 2015 As Reclassification As Reported Segment profit: Data center services $ 103,431 $ (103,431 ) $ — IP services 36,099 (36,099 ) — Data center and network services — 80,692 80,692 Cloud and hosting services — 58,838 58,838 Total segment profit $ 139,530 $ — $ 139,530 Segment profit is calculated as segment revenues less direct costs of sales and services, exclusive of depreciation and amortization for the segment, and does not include any depreciation or amortization associated with direct costs. We view direct costs of sales and services as generally less-controllable, external costs and we regularly monitor the margin of revenues in excess of these direct costs. We have excluded depreciation and amortization from segment profit because it is based on estimated useful lives of tangible and intangible assets. We base depreciation and amortization on historical costs incurred to build out our deployed network and the historical costs of these assets may not be indicative of current or future capital expenditures.

NET LOSS PER SHARE

NET LOSS PER SHARE	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
NET LOSS PER SHARE	11. NET LOSS PER SHARE We compute basic net loss per share by dividing net loss attributable to our common stockholders by the weighted average number of shares of common stock outstanding during the period. We exclude all outstanding options and unvested restricted stock as such securities are anti-dilutive for all periods presented. Basic and diluted net loss per share is calculated as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Net loss attributable to common stock $ (91,297 ) $ (14,197 ) $ (111,633 ) $ (37,173 ) Weighted average shares outstanding, basic and diluted 52,096 51,699 52,245 51,763 Net loss per share, basic and diluted $ (1.75 ) $ (0.27 ) $ (2.14 ) $ (0.72 ) Anti-dilutive securities excluded from diluted net loss per share calculation for stock-based compensation plans 7,238 6,868 7,238 6,868

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Sep. 30, 2016
New Accounting Pronouncements and Changes In Accounting Principles [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	12. RECENT ACCOUNTING PRONOUNCEMENTS In October 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance which allows the recognition of current and deferred income taxes for an intra-entity asset transfer, other than inventory, when the transfer occurs. Historically, recognition of the income tax consequence was not recognized until the asset was sold to an outside party. This guidance should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. There are no new disclosure requirements. The guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017 with early adoption permitted. We are currently evaluating the impact that adoption will have on our consolidated financial statements. In August 2016, FASB issued new guidance intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The guidance provides additional clarification on the classification of certain cash receipts and payments in the statement of cash flows. The guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017 with early adoption permitted. We are currently evaluating the impact that adoption will have on the presentation of our consolidated statements of cash flow. During the three months ended March 31, 2016, we adopted new guidance that required debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, which is consistent with the presentation of debt discounts. The guidance, applied retrospectively, was effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Adoption did not have a material impact on our financial condition and had no impact on our result of operations. Our restatement of prior year amounts was as follows: December 31, 2015 As Restatements As Reported Prepaid expenses and other assets $ 12,646 $ (241 ) $ 12,405 Deposits and other assets 10,177 (703 ) 9,474 Term loan, current (1,456 ) 241 (1,215 ) Term loan, long-term (286,001 ) 703 (285,298 ) In March 2016, FASB issued new guidance that amends several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification within the statement of cash flows. Certain of the amendments in this accounting standard update are to be applied using a modified retrospective approach by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted, while other amendments can be applied prospectively or retrospectively. The guidance is effective for periods beginning after December 15, 2016. We are currently evaluating the impact that adoption will have on our consolidated financial statements and related disclosures. In February 2016, FASB issued new guidance on lease accounting, which requires all leases in excess of 12 months to be recognized on the balance sheet as lease assets and lease liabilities. For operating leases, a lessee is required to recognize a right-of-use asset and lease liability, initially measured at the present value of the lease payment; recognize a single lease cost over the lease term generally on a straight-line basis; and classify all cash payments within operating activities on the cash flow statement. The guidance is effective for annual and interim periods beginning after December 15, 2018. Earlier adoption is permitted. We are currently evaluating the impact that adoption will have on our consolidated financial statements and related disclosures. In August 2014, FASB issued new guidance which requires management to evaluate, in connection with preparing financial statements for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable) and provide related disclosures. The guidance is effective for the annual and interim periods ending after December 15, 2016. We are currently evaluating the impact that adoption will have on our consolidated financial statements and related disclosures. In May 2014, FASB issued new guidance which provides a single model for revenue arising from contracts with customers and supersedes current revenue recognition guidance. The guidance is effective for periods beginning January 1, 2018. The guidance permits the application of its requirements retrospectively to all prior periods presented or in the year of adoption through a cumulative adjustment. We are currently evaluating the impact that adoption will have on our consolidated financial statements and related disclosures. As we have not completed our evaluation, we cannot make a determination of the impact and have not yet selected a transition method or determined the impact of the standard on our ongoing financial reporting.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
BASIS OF PRESENTATION	We have prepared the accompanying unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. These financial statements include all of our accounts and those of our wholly-owned subsidiaries. We have eliminated all intercompany transactions and balances in the accompanying financial statements. We have condensed or omitted certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP. In the opinion of management, the accompanying financial statements reflect all adjustments, which consist of normal recurring adjustments unless otherwise disclosed, necessary for a fair statement of our financial position as of September 30, 2016 and our operating results and cash flows for the interim periods presented. The balance sheet at December 31, 2015 was derived from our audited financial statements, but does not include all disclosures required by GAAP. You should read the accompanying financial statements and the related notes in conjunction with our financial statements and notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2015 filed with the Securities and Exchange Commission. The preparation of financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. Actual results may differ materially from these estimates. The results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for any future periods.
RECENT ACCOUNTING PRONOUNCEMENTS	In October 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance which allows the recognition of current and deferred income taxes for an intra-entity asset transfer, other than inventory, when the transfer occurs. Historically, recognition of the income tax consequence was not recognized until the asset was sold to an outside party. This guidance should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. There are no new disclosure requirements. The guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017 with early adoption permitted. We are currently evaluating the impact that adoption will have on our consolidated financial statements. In August 2016, FASB issued new guidance intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The guidance provides additional clarification on the classification of certain cash receipts and payments in the statement of cash flows. The guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017 with early adoption permitted. We are currently evaluating the impact that adoption will have on the presentation of our consolidated statements of cash flow. During the three months ended March 31, 2016, we adopted new guidance that required debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, which is consistent with the presentation of debt discounts. The guidance, applied retrospectively, was effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Adoption did not have a material impact on our financial condition and had no impact on our result of operations. Our restatement of prior year amounts was as follows: December 31, 2015 As Restatements As Reported Prepaid expenses and other assets $ 12,646 $ (241 ) $ 12,405 Deposits and other assets 10,177 (703 ) 9,474 Term loan, current (1,456 ) 241 (1,215 ) Term loan, long-term (286,001 ) 703 (285,298 ) In March 2016, FASB issued new guidance that amends several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification within the statement of cash flows. Certain of the amendments in this accounting standard update are to be applied using a modified retrospective approach by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted, while other amendments can be applied prospectively or retrospectively. The guidance is effective for periods beginning after December 15, 2016. We are currently evaluating the impact that adoption will have on our consolidated financial statements and related disclosures. In February 2016, FASB issued new guidance on lease accounting, which requires all leases in excess of 12 months to be recognized on the balance sheet as lease assets and lease liabilities. For operating leases, a lessee is required to recognize a right-of-use asset and lease liability, initially measured at the present value of the lease payment; recognize a single lease cost over the lease term generally on a straight-line basis; and classify all cash payments within operating activities on the cash flow statement. The guidance is effective for annual and interim periods beginning after December 15, 2018. Earlier adoption is permitted. We are currently evaluating the impact that adoption will have on our consolidated financial statements and related disclosures. In August 2014, FASB issued new guidance which requires management to evaluate, in connection with preparing financial statements for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable) and provide related disclosures. The guidance is effective for the annual and interim periods ending after December 15, 2016. We are currently evaluating the impact that adoption will have on our consolidated financial statements and related disclosures. In May 2014, FASB issued new guidance which provides a single model for revenue arising from contracts with customers and supersedes current revenue recognition guidance. The guidance is effective for periods beginning January 1, 2018. The guidance permits the application of its requirements retrospectively to all prior periods presented or in the year of adoption through a cumulative adjustment. We are currently evaluating the impact that adoption will have on our consolidated financial statements and related disclosures. As we have not completed our evaluation, we cannot make a determination of the impact and have not yet selected a transition method or determined the impact of the standard on our ongoing financial reporting.

CHANGE IN ORGANIZATIONAL STRU19

CHANGE IN ORGANIZATIONAL STRUCTURE AND REALIGNMENT OF EXPENSES (Tables)	9 Months Ended
	Sep. 30, 2016
Change In Organizational Structure And Realignment Of Expenses [Abstract]
Schedule of change in organizational structure and realignment of expenses	Three Months Ended September 30, 2015 As Previously Reclassification As Reported Revenues: Data center services $ 58,622 $ (58,622 ) $ — IP services 19,696 (19,696 ) — Data center and network services — 52,440 52,440 Cloud and hosting services — 25,878 25,878 Direct costs of sales and services, exclusive of depreciation and amortization: Data center services 25,111 (25,111 ) — IP services 8,570 (8,570 ) — Data center and network services — 26,739 26,739 Cloud and hosting services — 6,942 6,942 Direct costs of amortization of acquired and developed technologies 816 (816 ) — Sales and marketing 8,305 (8,305 ) — General and administrative 10,793 (10,793 ) — Sales, general and administrative (“SGA”) — 19,098 19,098 Depreciation and amortization 23,815 816 24,631 Nine Months Ended September 30, 2015 As Previously Reclassification As Reported Revenues: Data center services $ 177,142 $ (177,142 ) $ — IP services 62,394 (62,394 ) — Data center and network services — 160,029 160,029 Cloud and hosting services — 79,507 79,507 Direct costs of sales and services, exclusive of depreciation and amortization: Data center services 73,711 (73,711 ) — IP services 26,295 (26,295 ) — Data center and network services — 79,337 79,337 Cloud and hosting services — 20,669 20,669 Direct costs of amortization of acquired and developed technologies 2,557 (2,557 ) — Sales and marketing 28,347 (28,347 ) — General and administrative 34,295 (34,295 ) — SGA — 62,642 62,642 Depreciation and amortization 64,847 2,557 67,404

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Schedule of assets and liabilities measured at fair value on a recurring basis	Level 1 Level 2 Level 3 Total September 30, 2016: Foreign currency contracts (note 8) $ — $ 135 $ — $ 135 Interest rate swap (note 8) — 194 — 194 Asset retirement obligations (1) — — 2,758 2,758 December 31, 2015: Foreign currency contracts (note 8) — 1,019 — 1,019 Interest rate swap (note 8) — 728 — 728 Asset retirement obligations (1) — — 2,803 2,803 (1) We calculate the fair value of asset retirement obligations by discounting the estimated amount using the current Treasury bill rate adjusted for our credit non-performance. At September 30, 2016 and December 31, 2015, the balance of the asset retirement obligation was $0 and $0.2 million, respectively, which we included in “Other current liabilities,” and $2.8 million and $2.6 million, respectively, which we included in “Other long-term liabilities,” in the accompanying consolidated balance sheets.
Schedule of changes in asset retirement obligations	Balance, January 1, 2016 $ 2,803 Accretion 155 Payments (174 ) Gain on settlement (26 ) Balance, September 30, 2016 $ 2,758
Schedule of fair value of term loan and revolving credit facility	September 30, 2016 December 31, 2015 Carrying Fair Carrying Fair Amount Value Amount Value Term loan $ 291,750 $ 305,000 $ 294,000 $ 303,000 Revolving credit facility 35,500 35,600 31,000 30,400

GOODWILL (Tables)

GOODWILL (Tables)	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of re-allocated goodwill	December 31, 2015 Re-allocations Impairment September 30, 2016 Reportable segments: Data center services $ 90,849 $ (90,849 ) $ — $ — IP services 39,464 (39,464 ) — — Data center and network services — 80,104 (78,169 ) 1,935 Cloud and hosting services — 50,209 — 50,209 Total $ 130,313 $ — $ (78,169 ) $ 52,144

EXIT ACTIVITIES AND RESTRUCTU22

EXIT ACTIVITIES AND RESTRUCTURING LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2016
Restructuring and Related Activities [Abstract]
Schedule of transactions and balances for exit activities and restructuring charges	December 31, Initial Plan Cash September 30, Real estate obligations: 2016 exit activities $ — $ 239 $ (9 ) $ (170 ) $ 60 2015 exit activities 1,007 — (5 ) (275 ) 727 2014 exit activities 1,701 — 85 (474 ) 1,312 2007 restructuring 1,170 — 555 (1,436 ) 289 Total $ 3,878 $ 239 $ 626 $ (2,355 ) $ 2,388 December 31, Initial Plan Cash September 30, Real estate obligations: 2015 exit activities $ — $ 683 $ — $ (75) $ 608 2014 exit activities 2,010 — 232 (407 ) 1,835 2007 restructuring 2,325 — 490 (1,362 ) 1,453 Other 175 — (6 ) (169 ) — Total $ 4,510 $ 683 $ 716 $ (2,013 ) $ 3,896

DERIVATIVES (Tables)

DERIVATIVES (Tables)	9 Months Ended
	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of the activity of the foreign currency contracts	Three Months Ended Nine Months Ended 2016 2015 2016 2015 Unrealized (loss) gain, net of less than $0.1 million income tax, included in “Accumulated items of other comprehensive loss” in the accompanying consolidated balance sheets $ (93 ) $ (192 ) $ 620 $ (379 ) Realized loss on effective portion, included as compensation expense in “Direct costs of customer support” and “Sales, general and administrative” in the accompanying consolidated statements of operations and comprehensive loss (37 ) (238 ) (236 ) (440 )
Schedule of activity of interest rate swaps	Three Months Ended Nine Months Ended 2016 2015 2016 2015 Gain (loss) recorded as the effective portion of the change in fair value $ 198 $ 47 $ 534 $ (102 ) Interest payments reclassified as an increase to interest expense 199 201 594 598

OPERATING SEGMENTS (Tables)

OPERATING SEGMENTS (Tables)	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Schedule of operating results for business segments, along with reconciliation from segment profit to loss before income taxes and equity in (earnings) of equity-method investment	Three Months Ended Nine Months Ended 2016 2015 2016 2015 Revenues: Data center and network services $ 49,767 $ 52,440 $ 151,099 $ 160,029 Cloud and hosting services 24,173 25,878 73,081 79,507 Total revenues 73,940 78,318 224,180 239,536 Direct costs of sales and services, exclusive of depreciation and amortization: Data center and network services 25,042 26,739 74,065 79,337 Cloud and hosting services 6,520 6,942 19,944 20,669 Total direct costs of sales and services, exclusive of depreciation and amortization 31,562 33,681 94,009 100,006 Segment profit: Data center and network services 24,725 25,701 77,034 80,692 Cloud and hosting services 17,653 18,936 53,137 58,838 Total segment profit 42,378 44,637 130,171 139,530 Exit activities, restructuring and impairments, including goodwill impairment 79,839 920 80,192 1,245 Other operating expenses, including direct costs of customer support, depreciation and amortization 45,937 52,902 138,052 157,427 Loss from operations (83,398 ) (9,185 ) (88,073 ) (19,142 ) Non-operating expense 7,848 6,635 23,387 19,850 Loss before income taxes and equity in (earnings) of equity-method investment $ (91,246 ) $ (15,820 ) $ (111,460 ) $ (38,992 )
Schedule of reconciliation total segment profit	Three Months Ended September 30, 2015 As Reclassification As Reported Segment profit: Data center services $ 33,511 $ (33,511 ) $ — IP services 11,126 (11,126 ) — Data center and network services — 25,701 25,701 Cloud and hosting services — 18,936 18,936 Total segment profit $ 44,637 $ — $ 44,637 Nine Months Ended September 30, 2015 As Reclassification As Reported Segment profit: Data center services $ 103,431 $ (103,431 ) $ — IP services 36,099 (36,099 ) — Data center and network services — 80,692 80,692 Cloud and hosting services — 58,838 58,838 Total segment profit $ 139,530 $ — $ 139,530

NET LOSS PER SHARE (Tables)

NET LOSS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Schedule of basic and diluted net loss per share	Three Months Ended Nine Months Ended 2016 2015 2016 2015 Net loss attributable to common stock $ (91,297 ) $ (14,197 ) $ (111,633 ) $ (37,173 ) Weighted average shares outstanding, basic and diluted 52,096 51,699 52,245 51,763 Net loss per share, basic and diluted $ (1.75 ) $ (0.27 ) $ (2.14 ) $ (0.72 ) Anti-dilutive securities excluded from diluted net loss per share calculation for stock-based compensation plans 7,238 6,868 7,238 6,868

RECENT ACCOUNTING PRONOUNCEME26

RECENT ACCOUNTING PRONOUNCEMENTS (Tables)	9 Months Ended
	Sep. 30, 2016
New Accounting Pronouncements and Changes In Accounting Principles [Abstract]
Schedule of recent accounting pronouncements	December 31, 2015 As Restatements As Reported Prepaid expenses and other assets $ 12,646 $ (241 ) $ 12,405 Deposits and other assets 10,177 (703 ) 9,474 Term loan, current (1,456 ) 241 (1,215 ) Term loan, long-term (286,001 ) 703 (285,298 )

NATURE OF OPERATIONS AND BASI27

NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Detail Textuals)	9 Months Ended
	Sep. 30, 2016Data_CenterPoint
Organization, Consolidation and Presentation Of Financial Statements [Abstract]
Number of data centers | Data_Center	51
Number of internet protocol service points | Point	83

CHANGE IN ORGANIZATIONAL STRU28

CHANGE IN ORGANIZATIONAL STRUCTURE AND REALIGNMENT OF EXPENSES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues	$ 73,940	$ 78,318	$ 224,180	$ 239,536
Direct costs of amortization of acquired and developed technologies
Sales and marketing
General and administrative
Sales, general and administrative	18,355	19,098	55,416	62,642
Depreciation and amortization	19,597	24,631	57,927	67,404
Operating segments
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues	73,940	78,318	224,180	239,536
Direct costs of sales and services, exclusive of depreciation and amortization	31,562	33,681	94,009	100,006
Operating segments | Data center services
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues
Direct costs of sales and services, exclusive of depreciation and amortization
Operating segments | IP services
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues
Direct costs of sales and services, exclusive of depreciation and amortization
Operating segments | Data center and network services
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues	49,767	52,440	151,099	160,029
Direct costs of sales and services, exclusive of depreciation and amortization	25,042	26,739	74,065	79,337
Operating segments | Cloud And Hosting Services
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues	24,173	25,878	73,081	79,507
Direct costs of sales and services, exclusive of depreciation and amortization	$ 6,520	6,942	$ 19,944	20,669
As Previously Reported
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Direct costs of amortization of acquired and developed technologies		816		2,557
Sales and marketing		8,305		28,347
General and administrative		10,793		34,295
Sales, general and administrative
Depreciation and amortization		23,815		64,847
As Previously Reported | Operating segments | Data center services
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues		58,622		177,142
Direct costs of sales and services, exclusive of depreciation and amortization		25,111		73,711
As Previously Reported | Operating segments | IP services
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues		19,696		62,394
Direct costs of sales and services, exclusive of depreciation and amortization		8,570		26,295
As Previously Reported | Operating segments | Data center and network services
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues
Direct costs of sales and services, exclusive of depreciation and amortization
As Previously Reported | Operating segments | Cloud And Hosting Services
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues
Direct costs of sales and services, exclusive of depreciation and amortization
Reclassification
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Direct costs of amortization of acquired and developed technologies		(816)		(2,557)
Sales and marketing		(8,305)		(28,347)
General and administrative		(10,793)		(34,295)
Sales, general and administrative		19,098		62,642
Depreciation and amortization		816		2,557
Reclassification | Operating segments | Data center services
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues		(58,622)		(177,142)
Direct costs of sales and services, exclusive of depreciation and amortization		(25,111)		(73,711)
Reclassification | Operating segments | IP services
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues		(19,696)		(62,394)
Direct costs of sales and services, exclusive of depreciation and amortization		(8,570)		(26,295)
Reclassification | Operating segments | Data center and network services
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues		52,440		160,029
Direct costs of sales and services, exclusive of depreciation and amortization		26,739		79,337
Reclassification | Operating segments | Cloud And Hosting Services
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues		25,878		79,507
Direct costs of sales and services, exclusive of depreciation and amortization		$ 6,942		$ 20,669

FAIR VALUE MEASUREMENTS - Summa

FAIR VALUE MEASUREMENTS - Summary of Assets and liabilities measured at fair value on recurring basis (Details) - Recurring basis - USD ($) $ in Thousands		Sep. 30, 2016	Dec. 31, 2015
Level 1 | Foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value
Level 1 | Interest rate swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value
Level 1 | Asset retirement obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	[1]
Level 2 | Foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value		135	1,019
Level 2 | Interest rate swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value		194	728
Level 2 | Asset retirement obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	[1]
Level 3 | Foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value
Level 3 | Interest rate swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value
Level 3 | Asset retirement obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	[1]	2,758	2,803
Total | Foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value		135	1,019
Total | Interest rate swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value		194	728
Total | Asset retirement obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	[1]	$ 2,758	$ 2,803
[1]	We calculate the fair value of asset retirement obligations by discounting the estimated amount using the current Treasury bill rate adjusted for our credit non-performance. At September 30, 2016 and December 31, 2015, the balance of the asset retirement obligation was $0 and $0.2 million, respectively, which we included in "Other current liabilities," and $2.8 million and $2.6 million, respectively, which we included in "Other long-term liabilities," in the accompanying consolidated balance sheets.

FAIR VALUE MEASUREMENTS - Sum30

FAIR VALUE MEASUREMENTS - Summary of Assets and liabilities measured at fair value on recurring basis(Parentheticals) (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Other current liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset retirement obligations	$ 0	$ 0.2
Other long-term liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset retirement obligations	$ 2.8	$ 2.6

FAIR VALUE MEASUREMENTS - Sum31

FAIR VALUE MEASUREMENTS - Summary of changes in Level 3 financial asset - Asset retirement obligation (Details 1) - Asset retirement obligations $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, January 1, 2016	$ 2,803
Accretion	155
Payments	(174)
Gain on settlement	(26)
Balance, September 30, 2016	$ 2,758

FAIR VALUE MEASUREMENTS - Sum32

FAIR VALUE MEASUREMENTS - Summary of fair value Level 3 debt - Term loan (Details 2) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Term loan	$ 291,750	$ 294,000
Revolving credit facility	35,500	31,000
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Term loan	305,000	303,000
Revolving credit facility	$ 35,600	$ 30,400

DEVELOPED SOFTWARE (Detail Text

DEVELOPED SOFTWARE (Detail Textuals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Developed Software [Abstract]
Exit activities, restructuring and impairments	$ 1,670	$ 920	$ 2,023	$ 1,245

GOODWILL (Details)

GOODWILL (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	Dec. 31, 2015
Goodwill [Line Items]
Impairment	$ (78,169)	$ (78,169)
Goodwill	52,144	52,144	$ 130,313
Re-allocations
Goodwill [Line Items]
Goodwill
Operating segments
Goodwill [Line Items]
Impairment		(78,169)
Goodwill	52,144	52,144	130,313
Operating segments | Data center services
Goodwill [Line Items]
Impairment
Goodwill			90,849
Operating segments | Data center services | Re-allocations
Goodwill [Line Items]
Goodwill	(90,849)	(90,849)
Operating segments | IP services
Goodwill [Line Items]
Impairment
Goodwill			39,464
Operating segments | IP services | Re-allocations
Goodwill [Line Items]
Goodwill	(39,464)	(39,464)
Operating segments | Data center and network services
Goodwill [Line Items]
Impairment		(78,169)
Goodwill	1,935	1,935
Operating segments | Data center and network services | Re-allocations
Goodwill [Line Items]
Goodwill	80,104	80,104
Operating segments | Cloud And Hosting Services
Goodwill [Line Items]
Impairment
Goodwill	50,209	50,209
Operating segments | Cloud And Hosting Services | Re-allocations
Goodwill [Line Items]
Goodwill	$ 50,209	$ 50,209

GOODWILL (Detail Textuals)

GOODWILL (Detail Textuals) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2016USD ($)Segment	Dec. 31, 2015USD ($)
Goodwill [Line Items]
Goodwill	$ 52,144	$ 52,144	$ 130,313
Number of reportable segments | Segment		5
Impairment estimate to adjust goodwill	(78,169)	$ (78,169)
Operating segments
Goodwill [Line Items]
Goodwill	52,144	52,144	130,313
Impairment estimate to adjust goodwill		(78,169)
Operating segments | Data center services
Goodwill [Line Items]
Goodwill			90,849
Impairment estimate to adjust goodwill
Fair value of goodwill	1,900	1,900
Operating segments | Data center and network services
Goodwill [Line Items]
Goodwill	1,935	1,935
Impairment estimate to adjust goodwill		(78,169)
Operating segments | Cloud And Hosting Services
Goodwill [Line Items]
Goodwill	$ 50,209	50,209
Impairment estimate to adjust goodwill

DEBT (Detail Textuals)

DEBT (Detail Textuals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Sep. 30, 2016	Sep. 30, 2015
Short-term Debt [Line Items]
Amortization of debt discount and issuance costs			$ 1,881	$ 1,498
Credit Agreement
Short-term Debt [Line Items]
Amortization of debt discount and issuance costs	$ 600		$ 1,900
Credit Agreement | Term Loan
Short-term Debt [Line Items]
Interest rate		1.00%
Fee paid		$ 1,700
Debt discount		1,500
Third party fees		400
Expenses recorded related to term loan		$ 300
Credit Agreement | Revolving credit facility
Short-term Debt [Line Items]
Interest rate		1.00%
Prepaid debt issuance costs		$ 200
Debt issuance costs		$ 100

EXIT ACTIVITIES AND RESTRUCTU37

EXIT ACTIVITIES AND RESTRUCTURING LIABILITIES - Summary of activity and balances for restructuring and asset impairment activity (Details) - Data center and network services - Exit activities and Restructuring charges - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Restructuring Reserve [Roll Forward]
December 31, 2015 and 2014	$ 3,878	$ 4,510
Initial Charges	239	683
Plan Adjustments	626	716
Cash Payments	2,355	(2,013)
September 30, 2016 and 2015	2,388	3,896
2016 exit activities
Restructuring Reserve [Roll Forward]
December 31, 2015 and 2014
Initial Charges	239
Plan Adjustments	(9)
Cash Payments	(170)
September 30, 2016 and 2015	60
2015 exit activities
Restructuring Reserve [Roll Forward]
December 31, 2015 and 2014	1,007
Initial Charges		683
Plan Adjustments	(5)
Cash Payments	(275)	(75)
September 30, 2016 and 2015	727	608
2014 exit activities
Restructuring Reserve [Roll Forward]
December 31, 2015 and 2014	1,701	2,010
Initial Charges
Plan Adjustments	85	232
Cash Payments	(474)	(407)
September 30, 2016 and 2015	1,312	1,835
2007 restructuring
Restructuring Reserve [Roll Forward]
December 31, 2015 and 2014	1,170	2,325
Initial Charges
Plan Adjustments	555	490
Cash Payments	(1,436)	(1,362)
September 30, 2016 and 2015	$ 289	1,453
Other
Restructuring Reserve [Roll Forward]
December 31, 2015 and 2014		175
Initial Charges
Plan Adjustments		(6)
Cash Payments		(169)
September 30, 2016 and 2015

DERIVATIVES (Details)

DERIVATIVES (Details) - Foreign currency contracts - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Derivative [Line Items]
Unrealized (loss) gain, net of less than $0.1 million income tax, included in "Accumulated items of other comprehensive loss" in the accompanying consolidated balance sheets	$ (93)	$ (192)	$ 620	$ (379)
Realized loss on effective portion, included as compensation expense in "Direct costs of customer support" and "Sales, general and administrative" in the accompanying consolidated statements of operations and comprehensive loss	$ (37)	$ (238)	$ (236)	$ (440)

DERIVATIVES (Parentheticals) (D

DERIVATIVES (Parentheticals) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency contracts
Derivative [Line Items]
Tax on unrealized losses arising from foreign currency contracts	$ 0.1	$ 0.1	$ 0.1	$ 0.1

DERIVATIVES (Details 1)

DERIVATIVES (Details 1) - Interest rate swap - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Derivative [Line Items]
Gain (loss) recorded as the effective portion of the change in fair value	$ 198	$ 47	$ 534	$ (102)
Interest payments reclassified as an increase to interest expense	$ 199	$ 201	$ 594	$ 598

DERIVATIVES (Detail Textuals)

DERIVATIVES (Detail Textuals) - Designated as Hedging Instrument - Cash Flow Hedging CAD in Millions, $ in Millions	Sep. 30, 2016USD ($)	Sep. 30, 2016CAD	Dec. 31, 2015USD ($)
Interest rate swap
Derivative [Line Items]
Notional amount of cash flow hedge instruments	$ 150
Fixed-rate payments	1.50%	1.50%
Interest rate swap | Other comprehensive loss
Derivative [Line Items]
Fair value of derivatives	$ 0.2
Interest rate swap | Other current liabilities
Derivative [Line Items]
Fair value of derivatives	$ 0.2		$ 0.7
Foreign currency contracts | June 2017
Derivative [Line Items]
Notional amount of cash flow hedge instruments | CAD		CAD 12
Foreign currency contracts exchange rate	1.2855	1.2855
Foreign currency contracts | Other current liabilities
Derivative [Line Items]
Fair value of derivatives	$ 0.1		0.7
Foreign currency contracts | Other long-term liabilities
Derivative [Line Items]
Fair value of derivatives	$ 0		$ 0.3

OPERATING SEGMENTS - Summary of

OPERATING SEGMENTS - Summary of operating results for business segments - (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues:
Total revenues	$ 73,940	$ 78,318	$ 224,180	$ 239,536
Segment profit:
Exit activities, restructuring and impairments, including goodwill impairment	1,670	920	2,023	1,245
Loss from operations	(83,398)	(9,185)	(88,073)	(19,142)
Non-operating expense	(7,848)	(6,635)	(23,387)	(19,850)
Loss before income taxes and equity in (earnings) of equity-method investment	(91,246)	(15,820)	(111,460)	(38,992)
Operating segments
Revenues:
Total revenues	73,940	78,318	224,180	239,536
Direct costs of sales and services, exclusive of depreciation and amortization:
Total direct costs of sales and services, exclusive of depreciation and amortization	31,562	33,681	94,009	100,006
Segment profit:
Total segment profit	42,378	44,637	130,171	139,530
Operating segments | Data center and network services
Revenues:
Total revenues	49,767	52,440	151,099	160,029
Direct costs of sales and services, exclusive of depreciation and amortization:
Total direct costs of sales and services, exclusive of depreciation and amortization	25,042	26,739	74,065	79,337
Segment profit:
Total segment profit	24,725	25,701	77,034	80,692
Operating segments | Cloud And Hosting Services
Revenues:
Total revenues	24,173	25,878	73,081	79,507
Direct costs of sales and services, exclusive of depreciation and amortization:
Total direct costs of sales and services, exclusive of depreciation and amortization	6,520	6,942	19,944	20,669
Segment profit:
Total segment profit	17,653	18,936	53,137	58,838
Segment reconciling items
Segment profit:
Exit activities, restructuring and impairments, including goodwill impairment	79,839	920	80,192	1,245
Other operating expenses, including direct costs of customer support, depreciation and amortization	45,937	52,902	138,052	157,427
Loss from operations	(83,398)	(9,185)	(88,073)	(19,142)
Non-operating expense	7,848	6,635	23,387	19,850
Loss before income taxes and equity in (earnings) of equity-method investment	$ (91,246)	$ (15,820)	$ (111,460)	$ (38,992)

OPERATING SEGMENTS (Details 1)

OPERATING SEGMENTS (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
As Previously Reported
Segment profit:
Total segment profit		$ 44,637		$ 139,530
Reclassification
Segment profit:
Total segment profit
Operating segments
Segment profit:
Total segment profit	$ 42,378	44,637	$ 130,171	139,530
Operating segments | Data center services
Segment profit:
Total segment profit
Operating segments | Data center services | As Previously Reported
Segment profit:
Total segment profit		33,511		103,431
Operating segments | Data center services | Reclassification
Segment profit:
Total segment profit		(33,511)		(103,431)
Operating segments | IP services
Segment profit:
Total segment profit
Operating segments | IP services | As Previously Reported
Segment profit:
Total segment profit		11,126		36,099
Operating segments | IP services | Reclassification
Segment profit:
Total segment profit		(11,126)		(36,099)
Operating segments | Data center and network services
Segment profit:
Total segment profit	24,725	25,701	77,034	80,692
Operating segments | Data center and network services | As Previously Reported
Segment profit:
Total segment profit
Operating segments | Data center and network services | Reclassification
Segment profit:
Total segment profit		25,701		80,692
Operating segments | Cloud And Hosting Services
Segment profit:
Total segment profit	$ 17,653	18,936	$ 53,137	58,838
Operating segments | Cloud And Hosting Services | As Previously Reported
Segment profit:
Total segment profit
Operating segments | Cloud And Hosting Services | Reclassification
Segment profit:
Total segment profit		$ 18,936		$ 58,838

OPERATING SEGMENTS (Detail Text

OPERATING SEGMENTS (Detail Textuals)	9 Months Ended
	Sep. 30, 2016PointSegment
Segment Reporting [Abstract]
Number of new reportable segments | Segment	2
Number of internet protocol service points | Point	83

NET LOSS PER SHARE (Details)

NET LOSS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Net loss attributable to common stock	$ (91,297)	$ (14,197)	$ (111,633)	$ (37,173)
Weighted average shares outstanding, basic and diluted (in shares)	52,096	51,699	52,245	51,763
Net loss per share, basic and diluted (in dollars per share)	$ (1.75)	$ (0.27)	$ (2.14)	$ (0.72)
Anti-dilutive securities excluded from diluted net loss per share calculation for stock-based compensation plans (in shares)	7,238	6,868	7,238	6,868

RECENT ACCOUNTING PRONOUNCEME46

RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid expenses and other assets	$ 10,710	$ 12,405
Deposits and other assets	8,968	9,474
Term loan, current	(782)	(1,215)
Term loan, long-term	$ (283,597)	(285,298)
As Previously Reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid expenses and other assets		12,646
Deposits and other assets		10,177
Term loan, current		(1,456)
Term loan, long-term		(286,001)
Reclassification
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid expenses and other assets		(241)
Deposits and other assets		(703)
Term loan, current		241
Term loan, long-term		$ 703