Internap (INAPQ) 10-Q 3 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 20, 2017
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
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		83,303,972

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenues:
Total revenues	$ 69,642	$ 74,315	$ 141,775	$ 150,239
Direct costs of sales and services, exclusive of depreciation and amortization, shown below:
Direct costs of customer support	6,133	7,919	13,397	16,723
Sales, general and administrative	15,571	18,131	32,135	37,061
Depreciation and amortization	18,934	19,217	36,679	38,330
Exit activities, restructuring and impairments	4,628	152	5,651	353
Total operating costs and expenses	71,695	76,789	143,336	154,914
Loss from operations	(2,053)	(2,474)	(1,561)	(4,675)
Non-operating expenses:
Interest expense	17,145	8,082	25,282	15,067
Loss on foreign currency, net	191	118	288	551
Other, net	0	(2)	0	(80)
Total non-operating expenses	17,336	8,198	25,570	15,538
Loss before income taxes and equity in earnings of equity-method investment	(19,389)	(10,672)	(27,131)	(20,213)
(Benefit) provision for income taxes	(50)	62	468	200
Equity in earnings of equity-method investment, net of taxes	(56)	(41)	(86)	(77)
Net loss	(19,283)	(10,693)	(27,513)	(20,336)
Other comprehensive income:
Foreign currency translation adjustment	32	9	105	117
Unrealized gain on foreign currency contracts	60	75	145	713
Unrealized gain on interest rate swap	0	189	0	336
Total other comprehensive income	92	273	250	1,166
Comprehensive loss	$ (19,191)	$ (10,420)	$ (27,263)	$ (19,170)
Basic and diluted net loss per share (in dollars per share)	$ (0.24)	$ (0.21)	$ (0.38)	$ (0.39)
Weighted average shares outstanding used in computing basic and diluted net loss per share (in shares)	79,507	52,062	71,971	52,241
INAP COLO
Revenues:
Total revenues	$ 52,044	$ 55,827	$ 105,383	$ 111,708
Direct costs of sales and services, exclusive of depreciation and amortization, shown below:
Direct costs of sales and services, exclusive of depreciation and amortization	22,070	26,736	46,876	53,069
INAP CLOUD
Revenues:
Total revenues	17,598	18,488	36,392	38,531
Direct costs of sales and services, exclusive of depreciation and amortization, shown below:
Direct costs of sales and services, exclusive of depreciation and amortization	$ 4,359	$ 4,634	$ 8,598	$ 9,378

UNAUDITED CONDENSED CONSOLIDAT3

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 17,456	$ 10,389
Accounts receivable, net of allowance for doubtful accounts of $1,292 and $1,246, respectively	16,066	18,044
Prepaid expenses and other assets	11,150	10,055
Total current assets	44,672	38,488
Property and equipment, net	427,873	302,680
Investment in joint venture	3,161	3,002
Intangible assets, net	26,333	27,978
Goodwill	50,209	50,209
Deposits and other assets	8,820	8,258
Total assets	561,068	430,615
Current liabilities:
Accounts payable	20,757	20,875
Accrued liabilities	13,845	10,603
Deferred revenues	5,272	5,746
Capital lease obligations	11,392	10,030
Term loan, less discount and prepaid costs of $2,103 and $2,243, respectively	897	757
Exit activities and restructuring liability	5,212	3,177
Other current liabilities	2,571	3,171
Total current liabilities	59,946	54,359
Deferred revenues	4,918	5,144
Capital lease obligations	186,221	43,876
Revolving credit facility	0	35,500
Term loan, less discount and prepaid costs of $8,746 and $4,579, respectively	288,254	283,421
Exit activities and restructuring liability	2,416	1,526
Deferred rent	3,206	4,642
Deferred tax liability	1,404	1,513
Other long-term liabilities	4,196	4,358
Total liabilities	550,561	434,339
Commitments and contingencies (note 9)
Stockholders’ equity:
Preferred stock, $0.001 par value; 20,000 shares authorized; no shares issued or outstanding	0	0
Common stock, $0.001 par value; 200,000 shares authorized; 83,272 and 57,799 shares outstanding, respectively	84	58
Additional paid-in capital	1,324,692	1,283,332
Treasury stock, at cost, 1,161 and 1,073 shares, respectively	(7,133)	(6,923)
Accumulated deficit	(1,305,894)	(1,278,699)
Accumulated items of other comprehensive loss	(1,242)	(1,492)
Total stockholders’ equity	10,507	(3,724)
Total liabilities and stockholders’ equity	$ 561,068	$ 430,615

UNAUDITED CONDENSED CONSOLIDAT4

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 1,292	$ 1,246
Term loan current, discount and prepaid costs	2,103	2,243
Term loan deferred, discount and prepaid costs	$ 8,746	$ 4,579
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	20,000,000	20,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares outstanding (in shares)	83,272,000	57,799,000
Treasury stock, shares (in shares)	1,161,000	1,073,000

UNAUDITED CONDENSED CONSOLIDAT5

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash Flows from Operating Activities:
Net loss	$ (27,513)	$ (20,336)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	36,679	38,330
Amortization of debt discount and issuance costs	1,292	1,233
Stock-based compensation expense, net of capitalized amount	1,132	3,464
Equity in earnings of equity-method investment	(86)	(77)
Provision for doubtful accounts	520	580
Non-cash change in capital lease obligations	258	527
Non-cash change in exit activities and restructuring liability	5,391	619
Non-cash change in deferred rent	(1,199)	(1,000)
Deferred taxes	150	39
Payment of debt lender fees	(2,583)	(1,716)
Loss on extinguishment and modification of debt	6,785	0
Other, net	200	186
Changes in operating assets and liabilities:
Accounts receivable	1,485	1,702
Prepaid expenses, deposits and other assets	(1,039)	4,606
Accounts payable	477	2,269
Accrued and other liabilities	3,150	(3,931)
Deferred revenues	(697)	94
Exit activities and restructuring liability	(2,466)	(1,579)
Asset retirement obligation	103	(174)
Other liabilities	12	(35)
Net cash flows provided by operating activities	22,051	24,801
Cash Flows from Investing Activities:
Purchases of property and equipment	(12,293)	(26,314)
Additions to acquired and developed technology	(444)	(769)
Net cash flows used in investing activities	(12,737)	(27,083)
Cash Flows from Financing Activities:
Proceeds from credit agreements	295,500	4,500
Proceeds from stock issuance	40,162	0
Principal payments on credit agreements	(326,500)	(1,500)
Debt issuance costs	(5,694)	0
Payments on capital lease obligations	(5,371)	(4,827)
Proceeds from exercise of stock options	36	675
Acquisition of common stock for income tax withholdings	(210)	(343)
Other, net	(240)	(192)
Net cash flows used in financing activities	(2,317)	(1,687)
Effect of exchange rates on cash and cash equivalents	70	65
Net increase (decrease) in cash and cash equivalents	7,067	(3,904)
Cash and cash equivalents at beginning of period	10,389	17,772
Cash and cash equivalents at end of period	17,456	13,868
Supplemental disclosure of cash flow information:
Cash paid for interest	14,899	14,356
Non-cash acquisition of property and equipment under capital leases	147,788	4,921
Additions to property and equipment included in accounts payable	$ 1,269	$ 6,334

NATURE OF OPERATIONS AND BASIS

NATURE OF OPERATIONS AND BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS AND BASIS OF PRESENTATION	NATURE OF OPERATIONS AND BASIS OF PRESENTATION Internap Corporation (“we,” “us” “our” “INAP” or “the Company”) provides Internet infrastructure through both Colocation Business and Enterprise Services (including colocation, network connectivity, IP, bandwidth, and managed hosting), and Cloud Services (including enterprise-grade AgileCLOUD, bare-metal servers, and SMB iWeb platforms). INAP operates in Tier 3-type data centers in 20 metropolitan markets, primarily in North America, with 46 datacenters and 85 POPs around the world, . Currently, there is approximately 950,000 square feet under lease and 500,000 of data center footprint square feet. Of the company’s total data center footprint, there is approximately 325,000 raised floor, and 200,000 occupied, connected through a high-capacity network. INAP operates a premium business model that provides high-power density colocation, low-latency bandwidth, and public and private cloud platforms in an expanding Internet infrastructure industry. 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 June 30, 2017 and our operating results and cash flows for the interim periods presented. The balance sheet at December 31, 2016 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, 2016 filed with the Securities and Exchange Commission (“SEC”). 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 six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the 2017 fiscal year or any future periods.

CHANGE IN ORGANIZATIONAL STRUCT

CHANGE IN ORGANIZATIONAL STRUCTURE	6 Months Ended
	Jun. 30, 2017
Change In Organizational Structure And Realignment Of Expenses [Abstract]
CHANGE IN ORGANIZATIONAL STRUCTURE	CHANGE IN ORGANIZATIONAL STRUCTURE During the three months ended March 31, 2017, 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 (“CODM”), regularly reviews for purposes of allocating resources and assessing performance. As a result, we report our financial performance based on our revised segment structure, described in more detail in note 10 “Operating Segments.” We have reclassified prior period amounts to conform to the current presentation. 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 June 30, 2016 As Previously Reported Reclassification As Reported Revenues: Data center and network services $ 50,459 $ (50,459 ) $ — Cloud and hosting services 23,856 (23,856 ) — INAP COLO — 55,827 55,827 INAP CLOUD — 18,488 18,488 Direct costs of sales and services, exclusive of depreciation and amortization: Data center and network services 24,650 (24,650 ) — Cloud and hosting services 6,720 (6,720 ) — INAP COLO — 26,736 26,736 INAP CLOUD — 4,634 4,634 Six Months Ended June 30, 2016 As Previously Reported Reclassification As Reported Revenues: Data center and network services $ 101,331 $ (101,331 ) $ — Cloud and hosting services 48,908 (48,908 ) — INAP COLO — 111,708 111,708 INAP CLOUD — 38,531 38,531 Direct costs of sales and services, exclusive of depreciation and amortization: Data center and network services 49,023 (49,023 ) — Cloud and hosting services 13,424 (13,424 ) — INAP COLO 53,069 53,069 INAP CLOUD 9,378 9,378

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	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 June 30, 2017 Foreign currency contracts (note 8) $ — $ — $ — $ — Asset retirement obligations(1) — — 2,913 2,913 December 31, 2016 Foreign currency contracts (note 8) — 195 — 195 Asset retirement obligations(1) — — 2,810 2,810 (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 risk. The balance is included in “Other long-term liabilities,” in the accompanying unaudited consolidated balance sheets. The following table provides a summary of changes in our Level 3 asset retirement obligations for the six months ended June 30, 2017 (in thousands): Balance, January 1, 2017 $ 2,810 Accretion 103 Balance, June 30, 2017 $ 2,913 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): June 30, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Term loan $ 300,000 $ 304,500 $ 291,000 $ 267,700 Revolving credit facility — — 35,500 32,600

GOODWILL

GOODWILL	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL	GOODWILL During the three months ended March 31, 2017, we changed our operating segments, as discussed in note 10 “Operating Segments,” and, subsequently, our reporting units. We now have six reporting units: IP services, IP products, data center services, managed hosting, cloud and Ubersmith. 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. During the six months ended June 30, 2017, we re-allocated goodwill as follows (in thousands): December 31, 2016 Re-allocations June 30, 2017 Operating segments: Data center and network services $ — 0 $ — Cloud and hosting services 50,209 (50,209 ) — INAP COLO — 6,003 6,003 INAP CLOUD — 44,206 44,206 Total $ 50,209 $ — $ 50,209

DEBT

DEBT	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
DEBT	DEBT Third Amendment During the three months ended March 31, 2017, we entered into an amendment to our Credit Agreement (the “Third Amendment”), which, among other things, amended the credit agreement (i) to make each of the interest coverage ratio and leverage ratio covenants less restrictive and (ii) to decrease the maximum level of permitted capital expenditures. We paid a one-time aggregate fee of $2.6 million to the lenders for the Third Amendment, which we recorded as a debt discount of $2.2 million related to the term loan and prepaid debt issuance costs of $0.4 million related to the revolving credit facility. In addition, we paid $0.3 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 less than $0.1 million related to the revolving credit facility. The Third Amendment was effective on February 28, 2017, upon the closing of the equity sale, which is described in note 6 "Equity" below. The effectiveness of the covenant amendments was conditioned on the Company completing one or more equity offerings on or before June 30, 2017 for gross cash proceeds of not less than $40 million , and net cash proceeds of not less than $37 million and the application of the net cash proceeds to the repayment of indebtedness under the Credit Agreement. The Company paid a fee of approximately $0.9 million to the lenders on January 26, 2017 and paid an additional fee of $1.6 million on February 28, 2017. Absent the Third Amendment we may not have been able to comply with our covenants in the Credit Agreement. Credit Agreement On April 6, 2017, we entered into a new Credit Agreement (the “2017 Credit Agreement”), which provides for a $300 million term loan facility ("term loan") and a $25 million revolving credit facility ("revolving credit facility"). The proceeds of the term loan facility were used to refinance the Company’s existing credit facility and to pay costs and expenses associated with the 2017 Credit Agreement. A total of $5.7 million was paid for debt issuance costs related to the 2017 Credit Agreement. Of the $5.7 million in costs paid, $1.9 million related to the exchange of debt and was expensed, $3.3 million related to term loan third party costs and will be amortized over the term of the loan and $0.4 million are prepaid debt issuance costs related to the revolving credit facility and will be amortized over the term of the revolver. In addition, $4.8 million of debt discount and debt issuance costs related to the previous credit facility were expensed due to the extinguishment of that credit facility. The maturity date of the term loan facility is April 6, 2022 and the maturity date of the revolving credit facility is October 6, 2021. As of June 30, 2017, the interest rate on the term loan was 8.09% . On June 28, 2017, the Company entered into an amendment to the 2017 Credit Agreement (“First Amendment”), by and among the Company, each of the Lenders party thereto, and Jefferies Finance LLC, as Administrative Agent. The First Amendment clarified that for all purposes the Company’s liabilities pursuant to any lease that was treated as rental and lease expense, and not as a capital lease obligation or indebtedness, on the closing date of the 2017 Credit Agreement would continue to be treated as a rental and lease expense, and not as a capital lease obligations or indebtedness, for all purposes of the 2017 Credit Agreement, notwithstanding any amendment of the lease that results in the treatment of such lease as a capital lease obligation or indebtedness for financial reporting purposes.

EQUITY

EQUITY	6 Months Ended
	Jun. 30, 2017
Stockholders' Equity Note [Abstract]
EQUITY	EQUITY Securities Purchase Agreement On February 22, 2017, the Company entered into a securities purchase agreement (the “Securities Purchase Agreement”) with certain purchasers (the “Purchasers”), pursuant to which the Company issued to the Purchasers an aggregate of 23,802,850 shares of the Company’s common stock at a price of US $1.81 per share, for the aggregate purchase price of US $43.1 million , which closed on February 27, 2017. The Securities Purchase Agreement contains customary representations, warranties, and covenants. Conditions for the Securities Purchase Agreement including: (i) a requirement for the Company to use the funds of the sale of such common stock to repay indebtedness under the Credit Agreement, (ii) a 90 -day “lock-up” period whereby the Company is restricted from certain sales of equity securities and (iii) a requirement for the Company to pay certain transaction expenses of the Purchasers up to $100,000 . The Company used $39.2 million of the proceeds to pay down our debt, as described in not 5, "Debt" above. Registration Rights Agreement On February 22, 2017, the Company entered into a registration rights agreement (the “Registration Rights Agreement”) with the Purchasers, which provides the Purchasers under the Securities Purchase Agreement the ability to request registration of such securities. Pursuant to the Registration Rights Agreement, the Company filed a registration statement in March 2017 that was declared effective during April 2017.

EXIT ACTIVITIES AND RESTRUCTURI

EXIT ACTIVITIES AND RESTRUCTURING LIABILITIES	6 Months Ended
	Jun. 30, 2017
Restructuring and Related Activities [Abstract]
EXIT ACTIVITIES AND RESTRUCTURING LIABILITIES	EXIT ACTIVITIES AND RESTRUCTURING LIABILITIES During the three months ended June 30, 2017, we recorded initial exit activity charges due to ceasing use of data center space. We include initial charges and plan adjustments in “Exit activities, restructuring and impairments” in the accompanying statements of operations and comprehensive loss for the three and six months ended June 30, 2017 and 2016. The following table displays the transactions and balances for exit activities and restructuring charges during the six months ended June 30, 2017 and 2016 (in thousands). Our real estate obligations are substantially related to our INAP COLO segment. Severance is spread across both reportable segments. Balance December 31, 2016 Initial Charges Plan Adjustments Cash Payments Balance June 30, 2017 Activity for 2017 restructuring charge: Real estate obligations $ — $ 4,024 $ 322 $ — $ 4,346 Activity for 2016 restructuring charge: Severance 1,911 $ — 605 (1,679 ) 837 Real estate obligations 933 — 379 (370 ) 942 Activity for 2015 restructuring charge: Real estate obligation 111 — (8 ) (14 ) 89 Service contracts 565 — 10 (99 ) 476 Activity for 2014 restructuring charge: Real estate obligation 1,183 — 59 (304 ) 938 $ 4,703 $ 4,024 $ 1,367 $ (2,466 ) $ 7,628 Balance December 31, 2015 Initial Charges Plan Adjustments Cash Payments Balance June 30, 2016 Activity for 2016 restructuring charge: Real estate obligations $ — $ 197 $ 10 $ (92 ) $ 115 Service contracts 42 (21 ) (21 ) — Activity for 2015 restructuring charge: Real estate obligation 164 — (7 ) (122 ) 35 Service contracts 843 — 3 (99 ) 747 Activity for 2014 restructuring charge: Real estate obligations 1,701 28 (286 ) 1,443 Activity for 2007 restructuring charge: Real estate obligation 1,170 366 (958 ) 578 $ 3,878 $ 239 $ 379 $ (1,578 ) $ 2,918

DERIVATIVES

DERIVATIVES	6 Months Ended
	Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVES	DERIVATIVES Foreign Currency Contracts In a prior year we entered into foreign currency contracts to mitigate the risk of a portion of our Canadian compensation expense. These contracts hedged foreign exchange variations between the United States and Canadian dollar and committed us to purchase a total of $12.0 million Canadian dollars at an exchange rate of 1.2855 through June 2017. The contract expired on June 30, 2017. As of June 30, 2017 , and December 31, 2016 , the fair value of our foreign currency contracts was $0.0 million and $0.2 million , respectively, included in “Other current liabilities” in the accompanying consolidated balance sheets. The activity of the foreign currency contracts was as follows (in thousands): Three Months Ended June 30, Six Months Ended 2017 2016 2017 2016 Unrealized gain, net of less than $0.1 million income tax, included in “Accumulated items of other comprehensive loss” in the accompanying consolidated balance sheets $ 60 $ 75 $ 145 $ 713 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 (91 ) (20 ) (171 ) (199 )

COMMITMENTS, CONTINGENCIES AND

COMMITMENTS, CONTINGENCIES AND LITIGATION	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS, CONTINGENCIES AND LITIGATION	COMMITMENTS, CONTINGENCIES AND LITIGATION Capital Leases During the three months ended June 30, 2017, we entered into several amended agreements for data center space. The lease extensions triggered new lease agreements, with new terms resulting in capital lease treatment for accounting purposes. We recorded property of $147.5 million , net of the deferred rent balance on the previous operating leases, and capital lease obligations of $148.2 million . As of June 30, 2017, future minimum capital lease payments and the present value of the minimum lease payments for all capital leases are as follows (in thousands): 2017 $13,462 2018 27,573 2019 24,671 2020 20,730 2021 20,361 Thereafter 331,292 Remaining capital lease payments 438,089 Less: amounts representing imputed interest (240,476 ) Present value of minimum lease payments 197,613 Less: current portion (11,392 ) $186,221 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	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
OPERATING SEGMENTS	OPERATING SEGMENTS The Company has two reportable segments: INAP COLO and INAP CLOUD. These segments are comprised of strategic businesses that are defined by the service offerings they provide. Each segment is managed as an operation with well-established strategic directions and performance requirements. Each segment is led by a separate General Manager who reports directly to the Company’s CODM. The CODM evaluates segment performance using business unit contribution which is defined as business unit revenues less direct costs of sales and services, customer support, and sales and marketing, exclusive of depreciation and amortization. We report our financial performance based on our two reportable segments, INAP COLO and INAP CLOUD, as follows: INAP COLO Our Colocation segment consists of colocation, network services and managed hosting. 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. Network Services Network services 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 network services provides high-performance and highly-reliable delivery of content, applications and communications to end users globally. Managed Hosting Managed Hosting consists of leasing dedicated servers as well as, storage and network equipment along with other associated hardware to our customers. We configure and administer the hardware and operating system, provide technical support, patch management, monitoring and updates. We offer managed hosting around the globe, including North America, Europe and the Asia-Pacific region. INAP 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. In conjunction with our change in segments we changed the measure for determining the results of our segments to business unit contribution which includes the direct costs of sales and services, customer support and sales and marketing, exclusive of depreciation and amortization. In addition, during the three months ended June 30, 2017, management changed its measure of profitability to exclude corporate facilities allocation cost which are now reflected in "Sales, general and administrative," in the accompanying consolidated income statements. The following table provides segment results, with prior period amounts reclassified to conform to the current presentation (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Revenues: INAP COLO $ 52,044 $ 55,827 $ 105,383 $ 111,708 INAP CLOUD 17,598 18,488 36,392 38,531 Total revenues 69,642 74,315 141,775 150,239 Direct costs of sales and services, customer support and sales and marketing, exclusive of depreciation and amortization: INAP COLO 30,060 35,837 63,476 72,326 INAP CLOUD 9,497 10,529 18,875 21,344 Total direct costs of sales and services, customer support and sales and marketing 39,557 46,366 82,351 93,670 Business unit contribution: INAP COLO 21,984 19,990 41,907 39,382 INAP CLOUD 8,101 7,959 17,517 17,187 Total business unit contribution 30,085 27,949 59,424 56,569 Exit activities, restructuring and impairments 4,628 152 5,651 353 Other operating expenses, including depreciation and amortization 27,510 30,271 55,334 60,891 Loss from operations (2,053 ) (2,474 ) (1,561 ) (4,675 ) Non-operating expenses 17,336 8,198 25,570 15,538 Loss before income taxes and equity in (earnings) of equity-method investment $ (19,389 ) $ (10,672 ) $ (27,131 ) $ (20,213 )

NET LOSS PER SHARE

NET LOSS PER SHARE	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
NET LOSS PER SHARE	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 Six Months Ended 2017 2016 2017 2016 Net loss attributable to common stock $ (19,283 ) $ (10,693 ) $ (27,513 ) $ (20,336 ) Weighted average shares outstanding, basic and diluted 79,507 52,062 71,971 52,241 Net loss per share, basic and diluted $ (0.24 ) $ (0.21 ) $ (0.38 ) $ (0.39 ) Anti-dilutive securities excluded from diluted net loss per share calculation for stock-based compensation plans 6,255 6,084 6,255 6,084

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTS Adoption of New Accounting Standards In January 2017, the FASB issued ASU No. 2017-04, "Intangibles Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment" ("ASU 2017-04"), which simplifies the subsequent measurement of goodwill by eliminating “Step 2” from the goodwill impairment test. The guidance is effective for public companies’ annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. We adopted ASU 2017-04 in the first quarter of 2017 and it did not impact our consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory ("ASU 2016-16"), 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. Early adoption is permitted, and the Company adopted the provisions of ASU 2016-16 as of January 1, 2017. In connection with the adoption of the standard, the Company recorded a $2.2 million deferred tax asset and corresponding $1.9 million valuation allowance with the net difference going to retained earnings. In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"), which includes multiple amendments intended to simplify aspects of share-based payment accounting, and was effective for us at January 1, 2017. We have elected to account for forfeitures as they occur, rather than estimate expected forfeitures. In connection with the adoption of the standard, the Company recorded a $10.8 million deferred tax asset and a corresponding $10.8 million valuation allowance. Accounting Pronouncements Issued But Not Yet Effective In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flow (Topic 230): Classification of Certain Cash Receipts and Cash Payments" which amends Accounting Standards Codification 230, to clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows ("ASU 2016-15"). The FASB issued ASU 2016-15 with the intent of reducing diversity in practice with respect to eight types of cash flows. This guidance is effective for fiscal 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. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” ("ASU 2014-09"), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In August 2015, the FASB issued ASU No. 2015-14, delaying the effective date of ASU 2014-09. Three other amendments were issued during 2016 modifying the original ASU. As amended, the new standard is effective for the Company on January 1, 2018, using either a retrospective basis or a modified retrospective basis with early adoption permitted. We currently plan to adopt the standard effective January 1, 2018. The Company has identified a project team and commenced an initial impact assessment process for ASU 2014-09. We are continuing to work towards establishing policies, updating our processes and implementing necessary changes to data and processes to be able to comply with the new requirements. Based on the results of our assessment to date, we anticipate this standard will have an impact, which could be significant, on our consolidated financial statements. While we are continuing to assess all potential impacts of the standard, we currently believe the most significant impact relates to additional disclosures related to qualitative and quantitative information concerning the nature, amount, timing, and any uncertainty of revenue and cash flows from contracts with customers, the capitalization of costs of commissions, upfront contract costs, and other contract acquisition-based and contract fulfillment costs on the consolidated balance sheets. The Company currently plans to adopt this standard using the modified retrospective transition approach. The Company is continuing to assess all potential impacts of the standard, including the impact to the pattern with which revenue is recognized, the impact of the standard on current accounting policies, practices and system of internal controls, in order to identify material differences, if any, that would result from applying the new requirements. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), 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.

RECENT ACCOUNTING PRONOUNCEME18

RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	6 Months Ended
	Jun. 30, 2017
New Accounting Pronouncements and Changes in Accounting Principles [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 June 30, 2017 and our operating results and cash flows for the interim periods presented. The balance sheet at December 31, 2016 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, 2016 filed with the Securities and Exchange Commission (“SEC”).
Use of Estimates	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 six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the 2017 fiscal year or any future periods.
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.
Operating Segments	In conjunction with our change in segments we changed the measure for determining the results of our segments to business unit contribution which includes the direct costs of sales and services, customer support and sales and marketing, exclusive of depreciation and amortization. The Company has two reportable segments: INAP COLO and INAP CLOUD. These segments are comprised of strategic businesses that are defined by the service offerings they provide. Each segment is managed as an operation with well-established strategic directions and performance requirements. Each segment is led by a separate General Manager who reports directly to the Company’s CODM. The CODM evaluates segment performance using business unit contribution which is defined as business unit revenues less direct costs of sales and services, customer support, and sales and marketing, exclusive of depreciation and amortization. We report our financial performance based on our two reportable segments, INAP COLO and INAP CLOUD, as follows: INAP COLO Our Colocation segment consists of colocation, network services and managed hosting.
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.
Recent Accounting Pronouncements	RECENT ACCOUNTING PRONOUNCEMENTS Adoption of New Accounting Standards In January 2017, the FASB issued ASU No. 2017-04, "Intangibles Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment" ("ASU 2017-04"), which simplifies the subsequent measurement of goodwill by eliminating “Step 2” from the goodwill impairment test. The guidance is effective for public companies’ annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. We adopted ASU 2017-04 in the first quarter of 2017 and it did not impact our consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory ("ASU 2016-16"), 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. Early adoption is permitted, and the Company adopted the provisions of ASU 2016-16 as of January 1, 2017. In connection with the adoption of the standard, the Company recorded a $2.2 million deferred tax asset and corresponding $1.9 million valuation allowance with the net difference going to retained earnings. In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"), which includes multiple amendments intended to simplify aspects of share-based payment accounting, and was effective for us at January 1, 2017. We have elected to account for forfeitures as they occur, rather than estimate expected forfeitures. In connection with the adoption of the standard, the Company recorded a $10.8 million deferred tax asset and a corresponding $10.8 million valuation allowance. Accounting Pronouncements Issued But Not Yet Effective In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flow (Topic 230): Classification of Certain Cash Receipts and Cash Payments" which amends Accounting Standards Codification 230, to clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows ("ASU 2016-15"). The FASB issued ASU 2016-15 with the intent of reducing diversity in practice with respect to eight types of cash flows. This guidance is effective for fiscal 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. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” ("ASU 2014-09"), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In August 2015, the FASB issued ASU No. 2015-14, delaying the effective date of ASU 2014-09. Three other amendments were issued during 2016 modifying the original ASU. As amended, the new standard is effective for the Company on January 1, 2018, using either a retrospective basis or a modified retrospective basis with early adoption permitted. We currently plan to adopt the standard effective January 1, 2018. The Company has identified a project team and commenced an initial impact assessment process for ASU 2014-09. We are continuing to work towards establishing policies, updating our processes and implementing necessary changes to data and processes to be able to comply with the new requirements. Based on the results of our assessment to date, we anticipate this standard will have an impact, which could be significant, on our consolidated financial statements. While we are continuing to assess all potential impacts of the standard, we currently believe the most significant impact relates to additional disclosures related to qualitative and quantitative information concerning the nature, amount, timing, and any uncertainty of revenue and cash flows from contracts with customers, the capitalization of costs of commissions, upfront contract costs, and other contract acquisition-based and contract fulfillment costs on the consolidated balance sheets. The Company currently plans to adopt this standard using the modified retrospective transition approach. The Company is continuing to assess all potential impacts of the standard, including the impact to the pattern with which revenue is recognized, the impact of the standard on current accounting policies, practices and system of internal controls, in order to identify material differences, if any, that would result from applying the new requirements. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), 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.

CHANGE IN ORGANIZATIONAL STRU19

CHANGE IN ORGANIZATIONAL STRUCTURE (Tables)	6 Months Ended
	Jun. 30, 2017
Change In Organizational Structure And Realignment Of Expenses [Abstract]
Schedule of change in organizational structure	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 June 30, 2016 As Previously Reported Reclassification As Reported Revenues: Data center and network services $ 50,459 $ (50,459 ) $ — Cloud and hosting services 23,856 (23,856 ) — INAP COLO — 55,827 55,827 INAP CLOUD — 18,488 18,488 Direct costs of sales and services, exclusive of depreciation and amortization: Data center and network services 24,650 (24,650 ) — Cloud and hosting services 6,720 (6,720 ) — INAP COLO — 26,736 26,736 INAP CLOUD — 4,634 4,634 Six Months Ended June 30, 2016 As Previously Reported Reclassification As Reported Revenues: Data center and network services $ 101,331 $ (101,331 ) $ — Cloud and hosting services 48,908 (48,908 ) — INAP COLO — 111,708 111,708 INAP CLOUD — 38,531 38,531 Direct costs of sales and services, exclusive of depreciation and amortization: Data center and network services 49,023 (49,023 ) — Cloud and hosting services 13,424 (13,424 ) — INAP COLO 53,069 53,069 INAP CLOUD 9,378 9,378

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Schedule of assets and liabilities measured at fair value on a recurring basis	Assets and liabilities measured at fair value on a recurring basis are summarized as follows (in thousands): Level 1 Level 2 Level 3 Total June 30, 2017 Foreign currency contracts (note 8) $ — $ — $ — $ — Asset retirement obligations(1) — — 2,913 2,913 December 31, 2016 Foreign currency contracts (note 8) — 195 — 195 Asset retirement obligations(1) — — 2,810 2,810 (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 risk. The balance is included in “Other long-term liabilities,” in the accompanying unaudited consolidated balance sheets.
Schedule of changes in asset retirement obligations	The following table provides a summary of changes in our Level 3 asset retirement obligations for the six months ended June 30, 2017 (in thousands): Balance, January 1, 2017 $ 2,810 Accretion 103 Balance, June 30, 2017 $ 2,913
Schedule of fair value of term loan and revolving credit facility	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): June 30, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Term loan $ 300,000 $ 304,500 $ 291,000 $ 267,700 Revolving credit facility — — 35,500 32,600

GOODWILL (Tables)

GOODWILL (Tables)	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of re-allocated goodwill	During the six months ended June 30, 2017, we re-allocated goodwill as follows (in thousands): December 31, 2016 Re-allocations June 30, 2017 Operating segments: Data center and network services $ — 0 $ — Cloud and hosting services 50,209 (50,209 ) — INAP COLO — 6,003 6,003 INAP CLOUD — 44,206 44,206 Total $ 50,209 $ — $ 50,209

EXIT ACTIVITIES AND RESTRUCTU22

EXIT ACTIVITIES AND RESTRUCTURING LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2017
Restructuring and Related Activities [Abstract]
Schedule of transactions and balances for exit activities and restructuring charges	The following table displays the transactions and balances for exit activities and restructuring charges during the six months ended June 30, 2017 and 2016 (in thousands). Our real estate obligations are substantially related to our INAP COLO segment. Severance is spread across both reportable segments. Balance December 31, 2016 Initial Charges Plan Adjustments Cash Payments Balance June 30, 2017 Activity for 2017 restructuring charge: Real estate obligations $ — $ 4,024 $ 322 $ — $ 4,346 Activity for 2016 restructuring charge: Severance 1,911 $ — 605 (1,679 ) 837 Real estate obligations 933 — 379 (370 ) 942 Activity for 2015 restructuring charge: Real estate obligation 111 — (8 ) (14 ) 89 Service contracts 565 — 10 (99 ) 476 Activity for 2014 restructuring charge: Real estate obligation 1,183 — 59 (304 ) 938 $ 4,703 $ 4,024 $ 1,367 $ (2,466 ) $ 7,628 Balance December 31, 2015 Initial Charges Plan Adjustments Cash Payments Balance June 30, 2016 Activity for 2016 restructuring charge: Real estate obligations $ — $ 197 $ 10 $ (92 ) $ 115 Service contracts 42 (21 ) (21 ) — Activity for 2015 restructuring charge: Real estate obligation 164 — (7 ) (122 ) 35 Service contracts 843 — 3 (99 ) 747 Activity for 2014 restructuring charge: Real estate obligations 1,701 28 (286 ) 1,443 Activity for 2007 restructuring charge: Real estate obligation 1,170 366 (958 ) 578 $ 3,878 $ 239 $ 379 $ (1,578 ) $ 2,918

DERIVATIVES (Tables)

DERIVATIVES (Tables)	6 Months Ended
	Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of the activity of the foreign currency contracts	(in thousands): Three Months Ended June 30, Six Months Ended 2017 2016 2017 2016 Unrealized gain, net of less than $0.1 million income tax, included in “Accumulated items of other comprehensive loss” in the accompanying consolidated balance sheets $ 60 $ 75 $ 145 $ 713 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 (91 ) (20 ) (171 ) (199 )

COMMITMENTS, CONTINGENCIES AN24

COMMITMENTS, CONTINGENCIES AND LITIGATION (Tables)	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Summary of Future Minimum Capital Lease Payments	As of June 30, 2017, future minimum capital lease payments and the present value of the minimum lease payments for all capital leases are as follows (in thousands): 2017 $13,462 2018 27,573 2019 24,671 2020 20,730 2021 20,361 Thereafter 331,292 Remaining capital lease payments 438,089 Less: amounts representing imputed interest (240,476 ) Present value of minimum lease payments 197,613 Less: current portion (11,392 ) $186,221

OPERATING SEGMENTS (Tables)

OPERATING SEGMENTS (Tables)	6 Months Ended
	Jun. 30, 2017
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	The following table provides segment results, with prior period amounts reclassified to conform to the current presentation (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Revenues: INAP COLO $ 52,044 $ 55,827 $ 105,383 $ 111,708 INAP CLOUD 17,598 18,488 36,392 38,531 Total revenues 69,642 74,315 141,775 150,239 Direct costs of sales and services, customer support and sales and marketing, exclusive of depreciation and amortization: INAP COLO 30,060 35,837 63,476 72,326 INAP CLOUD 9,497 10,529 18,875 21,344 Total direct costs of sales and services, customer support and sales and marketing 39,557 46,366 82,351 93,670 Business unit contribution: INAP COLO 21,984 19,990 41,907 39,382 INAP CLOUD 8,101 7,959 17,517 17,187 Total business unit contribution 30,085 27,949 59,424 56,569 Exit activities, restructuring and impairments 4,628 152 5,651 353 Other operating expenses, including depreciation and amortization 27,510 30,271 55,334 60,891 Loss from operations (2,053 ) (2,474 ) (1,561 ) (4,675 ) Non-operating expenses 17,336 8,198 25,570 15,538 Loss before income taxes and equity in (earnings) of equity-method investment $ (19,389 ) $ (10,672 ) $ (27,131 ) $ (20,213 )

NET LOSS PER SHARE (Tables)

NET LOSS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Schedule of basic and diluted net loss per share	Basic and diluted net loss per share is calculated as follows (in thousands, except per share amounts): Three Months Ended Six Months Ended 2017 2016 2017 2016 Net loss attributable to common stock $ (19,283 ) $ (10,693 ) $ (27,513 ) $ (20,336 ) Weighted average shares outstanding, basic and diluted 79,507 52,062 71,971 52,241 Net loss per share, basic and diluted $ (0.24 ) $ (0.21 ) $ (0.38 ) $ (0.39 ) Anti-dilutive securities excluded from diluted net loss per share calculation for stock-based compensation plans 6,255 6,084 6,255 6,084

NATURE OF OPERATIONS AND BASI27

NATURE OF OPERATIONS AND BASIS OF PRESENTATION - Narrative (Details) ft² in Thousands	6 Months Ended
	Jun. 30, 2017ft²datacentermarketpoint_of_presence
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of metropolitan markets (market) | market	20
Number of datacenters (datacenter) | datacenter	46
Number of POPs (point of presence) | point_of_presence	85
Area under lease (sqft)	950
Area of data centers (sqft)	500
Area of raised floor (sqft)	325
Area occupied (sqft)	200

CHANGE IN ORGANIZATIONAL STRU28

CHANGE IN ORGANIZATIONAL STRUCTURE (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues	$ 69,642	$ 74,315	$ 141,775	$ 150,239
Data center and network services
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues		0		0
Direct costs of sales and services, exclusive of depreciation and amortization		0		0
Cloud and hosting services
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues		0		0
Direct costs of sales and services, exclusive of depreciation and amortization		0		0
INAP COLO
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues	52,044	55,827	105,383	111,708
Direct costs of sales and services, exclusive of depreciation and amortization	22,070	26,736	46,876	53,069
INAP CLOUD
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues	17,598	18,488	36,392	38,531
Direct costs of sales and services, exclusive of depreciation and amortization	$ 4,359	4,634	$ 8,598	9,378
As Previously Reported | Data center and network services
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues		50,459		101,331
Direct costs of sales and services, exclusive of depreciation and amortization		24,650		49,023
As Previously Reported | Cloud and hosting services
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues		23,856		48,908
Direct costs of sales and services, exclusive of depreciation and amortization		6,720		13,424
As Previously Reported | INAP COLO
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues		0		0
Direct costs of sales and services, exclusive of depreciation and amortization		0
As Previously Reported | INAP CLOUD
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues		0		0
Direct costs of sales and services, exclusive of depreciation and amortization		0
Reclassification | Data center and network services
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues		(50,459)		(101,331)
Direct costs of sales and services, exclusive of depreciation and amortization		(24,650)		(49,023)
Reclassification | Cloud and hosting services
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues		(23,856)		(48,908)
Direct costs of sales and services, exclusive of depreciation and amortization		(6,720)		(13,424)
Reclassification | INAP COLO
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues		55,827		111,708
Direct costs of sales and services, exclusive of depreciation and amortization		26,736		53,069
Reclassification | INAP CLOUD
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues		18,488		38,531
Direct costs of sales and services, exclusive of depreciation and amortization		$ 4,634		$ 9,378

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	Jun. 30, 2017	Dec. 31, 2016
Total | Foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	$ 0	$ 195
Total | Asset retirement obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	2,913	2,810
Level 1 | Foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	0	0
Level 1 | Asset retirement obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	0	0
Level 2 | Foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	0	195
Level 2 | Asset retirement obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	0	0
Level 3 | Foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	0	0
Level 3 | Asset retirement obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	$ 2,913	$ 2,810

FAIR VALUE MEASUREMENTS - Sum30

FAIR VALUE MEASUREMENTS - Summary of changes in Level 3 financial asset - Asset retirement obligation (Details) - Asset retirement obligations $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	$ 2,810
Accretion	103
Balance, end of period	$ 2,913

FAIR VALUE MEASUREMENTS - Sum31

FAIR VALUE MEASUREMENTS - Summary of fair value Level 3 debt - Term loan (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Term loan	$ 300,000	$ 291,000
Revolving credit facility	0	35,500
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Term loan	304,500	267,700
Revolving credit facility	$ 0	$ 32,600

GOODWILL - Additional Informati

GOODWILL - Additional Information (Details)	6 Months Ended
	Jun. 30, 2017reporting_unit
Goodwill and Intangible Assets Disclosure [Abstract]
Number of reportable units	6

GOODWILL - Summary of re-alloca

GOODWILL - Summary of re-allocations of Goodwill (Details) - USD ($)	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Goodwill [Line Items]
Goodwill	$ 50,209,000	$ 50,209,000
Goodwill, Transfers	0
Data center and network services
Goodwill [Line Items]
Goodwill	0	0
Goodwill, Transfers	0
Cloud and hosting services
Goodwill [Line Items]
Goodwill	0	50,209,000
Goodwill, Transfers	(50,209,000)
INAP COLO
Goodwill [Line Items]
Goodwill	6,003,000	0
Goodwill, Transfers	6,003,000
INAP CLOUD
Goodwill [Line Items]
Goodwill	44,206,000	$ 0
Goodwill, Transfers	$ 44,206,000

DEBT - Additional Information (

DEBT - Additional Information (Details) - USD ($)	Apr. 06, 2017	Feb. 28, 2017	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016	Jan. 26, 2017
Short-term Debt [Line Items]
Prepaid debt issuance costs				$ 5,694,000	$ 0
Loss on extinguishment and modification of debt				6,785,000	$ 0
Credit Agreement
Short-term Debt [Line Items]
Minimum gross cash proceeds from equity offering		$ 40,000,000
Minimum net cash proceeds from equity offering		37,000,000
Loss on extinguishment and modification of debt	$ 4,800,000
Credit Agreement | Term Loan
Short-term Debt [Line Items]
Fee paid			$ 2,600,000	2,600,000
Debt discount recorded			2,200,000	2,200,000
Third party fees			300,000
Expenses recorded related to term loan			300,000
Credit Agreement | Revolving credit facility
Short-term Debt [Line Items]
Fee paid		$ 1,600,000				$ 900,000
Prepaid debt issuance costs			400,000
Debt issuance costs			$ 100,000	$ 100,000
2017 Credit Agreement | Line of Credit
Short-term Debt [Line Items]
Prepaid debt issuance costs	$ 5,700,000
Interest rate at period end	8.09%
2017 Credit Agreement | Term Loan
Short-term Debt [Line Items]
Total amount available under Credit Agreement	$ 300,000,000
Debt issuance costs	3,300,000
2017 Credit Agreement | Term Loan | Line of Credit
Short-term Debt [Line Items]
Loss on extinguishment and modification of debt	1,900,000
2017 Credit Agreement | Revolving credit facility
Short-term Debt [Line Items]
Total amount available under Credit Agreement	25,000,000
Debt issuance costs	$ 400,000

EQUITY - Additional Information

EQUITY - Additional Information (Details) - Securities Purchase Agreement $ / shares in Units, $ in Millions	Feb. 22, 2017USD ($)$ / sharesshares
Subsidiary, Sale of Stock [Line Items]
Aggregate shares issued (in shares) | shares	23,802,850
Sale of stock, price per share (in dollars per share) | $ / shares	$ 1.81
Value of aggregate shares issued	$ 43.1
Restricted period to sell certain equity securities	90 days
Issuance of stock, transaction expenses	$ 0.1
Proceeds used to pay down credit facility	$ 39.2

EXIT ACTIVITIES AND RESTRUCTU36

EXIT ACTIVITIES AND RESTRUCTURING LIABILITIES - Exit activities and restructuring charges for Real estate obligations (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Restructuring Reserve [Roll Forward]
Balance, beginning of period	$ 4,703	$ 3,878
Initial Charges	4,024	239
Plan Adjustments	1,367	379
Cash Payments	(2,466)	(1,578)
Balance, end of period	7,628	2,918
Activity for 2017 restructuring charge: | Real estate obligations
Restructuring Reserve [Roll Forward]
Balance, beginning of period	0
Initial Charges	4,024
Plan Adjustments	322
Cash Payments	0
Balance, end of period	4,346
Activity for 2016 restructuring charge: | Severance
Restructuring Reserve [Roll Forward]
Balance, beginning of period	1,911
Initial Charges	0
Plan Adjustments	605
Cash Payments	(1,679)
Balance, end of period	837
Activity for 2016 restructuring charge: | Real estate obligations
Restructuring Reserve [Roll Forward]
Balance, beginning of period	933	0
Initial Charges	0	197
Plan Adjustments	379	10
Cash Payments	(370)	(92)
Balance, end of period	942	115
Activity for 2016 restructuring charge: | Service contracts
Restructuring Reserve [Roll Forward]
Initial Charges		42
Plan Adjustments		(21)
Cash Payments		(21)
Balance, end of period		0
Activity for 2015 restructuring charge: | Real estate obligations
Restructuring Reserve [Roll Forward]
Balance, beginning of period	111	164
Initial Charges	0	0
Plan Adjustments	(8)	(7)
Cash Payments	(14)	(122)
Balance, end of period	89	35
Activity for 2015 restructuring charge: | Service contracts
Restructuring Reserve [Roll Forward]
Balance, beginning of period	565	843
Initial Charges	0	0
Plan Adjustments	10	3
Cash Payments	(99)	(99)
Balance, end of period	476	747
Activity for 2014 restructuring charge: | Real estate obligations
Restructuring Reserve [Roll Forward]
Balance, beginning of period	1,183	1,701
Initial Charges	0
Plan Adjustments	59	28
Cash Payments	(304)	(286)
Balance, end of period	$ 938	1,443
Activity for 2007 restructuring charge: | Real estate obligations
Restructuring Reserve [Roll Forward]
Balance, beginning of period		1,170
Plan Adjustments		366
Cash Payments		(958)
Balance, end of period		$ 578

DERIVATIVES - Additional Inform

DERIVATIVES - Additional Information (Details) - Designated as Hedging Instrument - Cash Flow Hedging - Foreign currency contracts $ in Millions	Jun. 30, 2017USD ($)	Jun. 30, 2017CAD	Dec. 31, 2016USD ($)
June 2,017
Derivative [Line Items]
Notional amount of cash flow hedge instruments | CAD		CAD 12,000,000
Foreign currency contracts exchange rate	1.2855	1.2855
Other current liabilities
Derivative [Line Items]
Fair value of derivatives (less than) | $	$ 0		$ 0.2

DERIVATIVES - Schedule of the a

DERIVATIVES - Schedule of the activity of the foreign currency contracts (Details) - Cash Flow Hedging - Designated as Hedging Instrument - Foreign currency contracts - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Derivative [Line Items]
Tax on unrealized losses arising from foreign currency contracts	$ 100	$ 100	$ 100	$ 100
Unrealized gain, net of less than $0.1 million and $0.1 million income tax, respectively, included in “Accumulated items of other comprehensive loss” in the accompanying consolidated balance sheets	60	75	145	713
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	$ (91)	$ (20)	$ (171)	$ (199)

COMMITMENTS, CONTINGENCIES AN39

COMMITMENTS, CONTINGENCIES AND LITIGATION - Narrative (Details) - Assets Held under Capital Leases $ in Millions	Jun. 30, 2017USD ($)
Property, Plant and Equipment [Line Items]
Property held as capital leases	$ 147.5
Capital Lease Obligations
Property, Plant and Equipment [Line Items]
Capital lease obligations	$ 148.2

COMMITMENTS, CONTINGENCIES AN40

COMMITMENTS, CONTINGENCIES AND LITIGATION - Future Minimum Capital Lease Payments (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
2,017	$ 13,462
2,018	27,573
2,019	24,671
2,020	20,730
2,021	20,361
Thereafter	331,292
Remaining capital lease payments	438,089
Less: amounts representing imputed interest	(240,476)
Present value of minimum lease payments	197,613
Less: current portion	(11,392)	$ (10,030)
Capital lease obligations	$ 186,221	$ 43,876

OPERATING SEGMENTS - Additional

OPERATING SEGMENTS - Additional Information (Details)	6 Months Ended
	Jun. 30, 2017segment
Segment Reporting [Abstract]
Number of reportable segments	2

OPERATING SEGMENTS - Summary of

OPERATING SEGMENTS - Summary of operating results for business segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenues:
Total revenues	$ 69,642	$ 74,315	$ 141,775	$ 150,239
Direct costs of sales and services, customer support and sales and marketing, exclusive of depreciation and amortization:
Total direct costs of sales and services, customer support and sales and marketing	39,557	46,366	82,351	93,670
Business unit contribution:
Total business unit contribution	30,085	27,949	59,424	56,569
Exit activities, restructuring and impairments	4,628	152	5,651	353
Other operating expenses, including depreciation and amortization	27,510	30,271	55,334	60,891
Loss from operations	(2,053)	(2,474)	(1,561)	(4,675)
Non-operating expenses	17,336	8,198	25,570	15,538
Loss before income taxes and equity in earnings of equity-method investment	(19,389)	(10,672)	(27,131)	(20,213)
INAP COLO
Revenues:
Total revenues	52,044	55,827	105,383	111,708
Direct costs of sales and services, customer support and sales and marketing, exclusive of depreciation and amortization:
Total direct costs of sales and services, customer support and sales and marketing	30,060	35,837	63,476	72,326
Business unit contribution:
Total business unit contribution	21,984	19,990	41,907	39,382
INAP CLOUD
Revenues:
Total revenues	17,598	18,488	36,392	38,531
Direct costs of sales and services, customer support and sales and marketing, exclusive of depreciation and amortization:
Total direct costs of sales and services, customer support and sales and marketing	9,497	10,529	18,875	21,344
Business unit contribution:
Total business unit contribution	$ 8,101	$ 7,959	$ 17,517	$ 17,187

NET LOSS PER SHARE - Schedule o

NET LOSS PER SHARE - Schedule of basic and diluted net loss per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Net loss attributable to common stock	$ (19,283)	$ (10,693)	$ (27,513)	$ (20,336)
Weighted average shares outstanding, basic and diluted (in shares)	79,507	52,062	71,971	52,241
Net loss per share, basic and diluted (in dollars per share)	$ (0.24)	$ (0.21)	$ (0.38)	$ (0.39)
Anti-dilutive securities excluded from diluted net loss per share calculation for stock-based compensation plans (in shares)	6,255	6,084	6,255	6,084

RECENT ACCOUNTING PRONOUNCEME44

RECENT ACCOUNTING PRONOUNCEMENTS - Additional Information (Details) - USD ($) $ in Millions	Oct. 31, 2016	Jun. 30, 2016
Accounting Standards Update 2016-16
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Deferred tax asset	$ 2.2
Deferred tax asset, valuation allowance	$ 1.9
Accounting Standards Update 2016-09
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Deferred tax asset		$ 10.8
Deferred tax asset, valuation allowance		$ 10.8