Internap (INAPQ) 10-Q 1 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 01, 2018
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	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		25,512,514

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Net revenues	$ 82,972	$ 68,907	$ 239,135	$ 210,682
Operating costs and expenses:
Costs of sales and services, exclusive of depreciation and amortization	28,866	24,945	81,880	80,419
Costs of customer support	7,984	6,237	24,212	19,634
Sales, general and administrative	18,170	15,331	57,625	47,466
Depreciation and amortization	23,431	20,917	67,097	57,596
Exit activities, restructuring and impairments	2,347	745	3,140	6,396
Total operating costs and expenses	80,798	68,175	233,954	211,511
Income from operations	2,174	732	5,181	(829)
Interest expense	16,898	12,299	47,786	37,581
Loss on foreign currency, net	195	197	5	485
Total non-operating expenses	17,093	12,496	47,791	38,066
Loss before income taxes, non-controlling interest and equity in earnings of equity-method investment	(14,919)	(11,764)	(42,610)	(38,895)
Provision for income taxes	162	221	404	689
Equity in earnings of equity-method investment, net of taxes	0	(1,122)	0	(1,207)
Net loss	(15,081)	(10,863)	(43,014)	(38,377)
Less net income attributable to non-controlling interest	25	32	75	32
Net loss attributable to INAP stockholders	(15,106)	(10,895)	(43,089)	(38,409)
Other comprehensive (loss) income:
Foreign currency translation adjustment	(98)	(91)	24	14
Unrealized gain on foreign currency contracts	0	0	0	145
Total other comprehensive (loss) income	(98)	(91)	24	159
Comprehensive loss	$ (15,204)	$ (10,986)	$ (43,065)	$ (38,250)
Basic and diluted net loss per share (in dollars per share)	$ (0.75)	$ (0.56)	$ (2.16)	$ (2.04)
Weighted average shares outstanding used in computing basic and diluted net loss per share (in shares)	20,206	19,929	19,968	18,645

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 11,844	$ 14,603
Accounts receivable, net of allowance for doubtful accounts of $1,418 and $1,487, respectively	22,999	17,794
Contract assets	8,026	0
Prepaid expenses and other assets	9,497	8,673
Total current assets	52,366	41,070
Property and equipment, net	477,423	458,565
Intangible assets, net	74,738	25,666
Goodwill	116,705	50,209
Non-current contract assets	12,756	0
Deposits and other assets	12,050	11,015
Total assets	746,038	586,525
Current liabilities:
Accounts payable	32,243	20,388
Accrued liabilities	17,866	15,908
Deferred revenues	4,696	4,861
Capital lease obligations	9,399	11,711
Revolving credit facility	18,500	5,000
Term loan, less discount and prepaid costs of $3,912 and $2,133, respectively	444	867
Exit activities and restructuring liability	3,255	4,152
Other current liabilities	3,637	1,707
Total current liabilities	90,040	64,594
Capital lease obligations	252,599	223,749
Term loan, less discount and prepaid costs of $10,625 and $7,655, respectively	415,251	287,845
Exit activities and restructuring liability	162	664
Deferred rent	940	1,310
Deferred tax liability	1,952	1,651
Other long-term liabilities	4,060	7,744
Total liabilities	765,004	587,557
Commitments and contingencies (Refer to Note 9)
Stockholders’ deficit:
Preferred stock, $0.001 par value; 5,000 shares authorized; no shares issued or outstanding	0	0
Common stock, $0.001 par value; 50,000 shares authorized; 21,302 and 20,804 shares issued and outstanding, respectively	21	21
Additional paid-in capital	1,330,751	1,327,084
Treasury stock, at cost, 329 and 293, respectively	(7,645)	(7,159)
Accumulated deficit	(1,343,609)	(1,323,723)
Accumulated items of other comprehensive loss	(1,300)	(1,324)
Total INAP stockholders’ deficit	(21,782)	(5,101)
Non-controlling interests	2,816	4,069
Total stockholders’ deficit	(18,966)	(1,032)
Total liabilities and stockholders’ deficit	$ 746,038	$ 586,525

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 1,418	$ 1,487
Term loan current, discount and prepaid costs	3,912	2,133
Term loan deferred, discount and prepaid costs	$ 10,625	$ 7,655
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
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 issued (in shares)	21,302,000	20,804,000
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares outstanding (in shares)	21,302,000	20,804,000
Treasury stock, shares (in shares)	329,000	293,000

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash Flows from Operating Activities:
Net loss	$ (43,014)	$ (38,377)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	67,097	57,596
(Gain) loss on disposal of fixed asset	(98)	503
Amortization of debt discount and issuance costs	2,798	1,890
Stock-based compensation expense, net of capitalized amount	3,573	2,061
Equity in earnings of equity-method investment	0	(1,207)
Provision for doubtful accounts	706	808
Non-cash change in capital lease obligations	(241)	564
Non-cash change in exit activities and restructuring liability	3,198	5,824
Non-cash change in deferred rent	(851)	(3,335)
Deferred taxes	65	209
Loss on extinguishment and modification of debt	0	6,785
Other, net	(6)	(49)
Changes in operating assets and liabilities:
Accounts receivable	(4,990)	243
Prepaid expenses, deposits and other assets	(3,531)	1,979
Accounts payable	9,372	(3,498)
Accrued and other liabilities	(601)	1,691
Deferred revenues	617	(1,233)
Exit activities and restructuring liability	(4,597)	(4,727)
Asset retirement obligation	(141)	191
Other liabilities	(199)	22
Net cash provided by operating activities	29,157	27,940
Cash Flows from Investing Activities:
Purchases of property and equipment	(27,317)	(23,198)
Proceeds from disposal of property and equipment	570	206
Business acquisition, net of cash acquired	(131,748)	3,838
Acquisition of non-controlling interests	(1,130)	0
Additions to acquired and developed technology	(2,128)	(635)
Net cash used in investing activities	(161,753)	(19,789)
Cash Flows from Financing Activities:
Proceeds from credit agreements	148,500	295,500
Proceeds from stock issuance	0	40,165
Principal payments on credit agreements	(3,267)	(327,250)
Debt issuance costs	(7,696)	(8,277)
Payments on capital lease obligations	(7,202)	(6,562)
Proceeds from exercise of stock options	(210)	159
Acquisition of common stock for income tax withholdings	(487)	(222)
Other, net	175	(302)
Net cash provided by (used in) in financing activities	129,813	(6,789)
Effect of exchange rates on cash and cash equivalents	24	217
Net (decrease) increase in cash and cash equivalents	(2,759)	1,579
Cash and cash equivalents at beginning of period	14,603	10,389
Cash and cash equivalents at end of period	11,844	11,968
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	44,324	25,898
Non-cash acquisition of property and equipment under capital leases	33,381	169,679
Additions to property and equipment included in accounts payable	$ 4,004	$ 701

NATURE OF OPERATIONS AND BASIS

NATURE OF OPERATIONS AND BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2018
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”) is a global provider of high-performance data center services, including colocation, cloud and network. INAP partners with its customers, who range from the Fortune 500 to emerging start-ups, to create secure, scalable and reliable IT infrastructure solutions that meet the customer’s unique business requirements. INAP operates in 53 , primarily Tier 3, data centers in 21 metropolitan markets and has 102 points of presence ("POPs") around the world. INAP has over 1 million gross square feet in its portfolio, and approximately 600,000 square feet of sellable data center space. 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. In the opinion of management, all adjustments necessary for a fair presentation of the interim results have been reflected therein. All such adjustments were of a normal and recurring nature with the exception of those related to the adoption of new accounting standards as discussed in Note 2, "Recent Accounting Pronouncements" and Note 3, "Revenues." We have condensed or omitted certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP. 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, 2018 and our operating results and cash flows for the interim periods presented. The balance sheet at December 31, 2017 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, 2017 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 nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the 2018 fiscal year or any future periods.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Sep. 30, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standard Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASC 606"). This standard update, along with related subsequently issued updates, clarifies the principles for recognizing revenue and develops a common revenue standard for GAAP. The standard update also amends current guidance for the recognition of costs to obtain and fulfill contracts with customers such that incremental costs of obtaining and direct costs of fulfilling contracts with customers will be deferred and amortized consistent with the transfer of the related good or service. ASC 606 intends to provide a more robust framework for addressing revenue issues; improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; and provide more useful information to users of financial statements through improved disclosure requirements. The Company adopted this guidance on January 1, 2018 using the modified retrospective method. Following the adoption of this guidance, the revenue recognition for our sales arrangements remained materially consistent with our historical practice. For more information, see Note 3, "Revenues." In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which states that a lessee should recognize the assets and liabilities that arise from leases. The guidance is effective for annual and interim periods beginning after December 15, 2018. Earlier adoption is permitted. We expect to adopt the new standard on January 1, 2019. The Company’s adoption process of the new standard is ongoing, including evaluating and quantifying the impact on its consolidated financial statements, identifying the population of leases (and embedded leases), implementing a selected technology solution and collecting and validating lease data. Additionally, the Company is in the process of assessing any potential impacts on the internal controls and process related to both the implementation and ongoing compliance of the new guidance. While the Company is continuing to assess all potential impacts of the standard, it currently believes the most significant impact relates to the recognition on the Company’s balance sheet of right-of-use assets and lease liabilities for all operating leases. Consistent with current guidance, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification. For income statement purposes, operating leases will result in a straight-line expense while finance leases will result in a front-loaded expense pattern. The new lease standard provides entities two options for applying the modified retrospective approach (1) retrospectively to each prior reporting period presented in the financial statements with the cumulative-effect adjustment recognized at the beginning of the earliest comparative period presented or (2) retrospectively at the beginning of the period of adoption (January 1, 2019) through a cumulative-effect adjustment recognized then. The Company plans to adopt the standard by recognizing and measuring leases at the adoption date with a cumulative effect of initially applying the guidance recognized at the date of initial application. The Company is currently planning on electing the package of practical expedients to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs and is evaluating the other practical expedients available under the guidance. On August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, a consensus of the FASB’s Emerging Issues Task Force. The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. We adopted this guidance in the first quarter of 2018 and it did not have a significant impact on our condensed consolidated financial statements. On January 2017, the FASB issued final guidance that revises the definition of a business, ASU No. 2017-01: Clarifying the Definition of a Business (Topic 805). The definition of a business affects many areas of accounting (e.g., acquisitions, disposals, goodwill impairment, or consolidation). The guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities is not a business. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs by more closely aligning it with how outputs are described in ASC 606. We adopted this guidance in the first quarter of 2018 and it did not impact our condensed consolidated financial statements. The guidance may have an impact on the Company as it pursues its strategy to develop its business. On May 2017, the FASB issued guidance ASU No. 2017-09: Scope of Modification Accounting (Topic 718), to clarify when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. We adopted this guidance in the first quarter of 2018 and it did not impact our condensed consolidated financial statements.

REVENUES

REVENUES	9 Months Ended
	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
REVENUES	REVENUES Upon adoption of ASC 606, the Company applied certain transition practical expedients available for modified retrospective adoption. The Company adopted the practical expedient for the portfolio approach of contracts with similar characteristics in which the Company reasonably expects that the effects on the financial statements of applying this practical expedient to the portfolio would not differ materially from applying this guidance to the individual contracts (or performance obligations) within that portfolio. The Company also adopted the practical expedient to not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) contracts for which INAP recognizes revenue at the amount to which the Company has the right to invoice for services performed, and (iii) the value for variable consideration that is applied to individual performance obligations in a series. The Company elected to exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer (e.g., sales, use, and value added taxes). Changes in Accounting Policies The most significant impact of the adoption of the new standard is the requirement for incremental costs to obtain a customer, such as commissions, which previously were expensed as incurred, to be deferred and amortized over the period of contract performance or a longer period if renewals are expected and the renewal commission is not commensurate with the initial commission. In addition, installation revenues are recognized over the initial contract life rather than over the estimated customer life, as they are not significant to the total contract and therefore do not represent a material right. Most performance obligations, with the exception of certain sales of equipment or hardware, are satisfied over time as the customer consumes the benefits as we perform. For equipment and hardware sales, the performance obligation is satisfied when control transfers to the customer. In evaluating the treatment of certain contracts, the Company exercised heightened judgment in deferring installation revenue as well as expense fulfillment and commission costs over the appropriate life. With the exception of the revenues noted above, revenue recognition remains materially consistent with historical practice. However, our approach did not result in any material differences to our condensed consolidated financial statements. Adjustments to Reported Financial Statements from the Adoption The following table presents the effect of the adoption of ASC 606 on the Company’s consolidated balance sheet as of January 1, 2018 (in thousands): December 31, 2017, as reported Adjustments January 1, 2018, as adjusted ASSETS Prepaid expenses and other assets $ 8,673 $ 6,814 $ 15,487 Deposits and other assets 11,015 11,234 22,249 LIABILITIES AND STOCKHOLDERS’ DEFICIT Deferred revenues 4,861 (749 ) 4,112 Deferred tax liability 1,651 209 1,860 Other long-term liabilities 7,744 (4,616 ) 3,128 Accumulated deficit (1,323,723 ) 23,204 (1,300,519 ) Current Impact from the Adoption In accordance with the new revenue standard requirements, the disclosure of the current period impact of adoption on our condensed consolidated statement of operations and comprehensive loss and balance sheet is as follows (in thousands, except for per share amounts): For the Three Months Ended September 30, 2018 As Reported Balances without Adoption of ASC 606 Effect of Change Higher/ (Lower) Net revenues $ 82,972 $ 82,822 $ 150 Sales, general and administrative 18,170 18,100 70 Total operating costs and expenses 80,798 80,728 70 Income from operations 2,174 2,094 80 Loss before income taxes and equity in earnings of equity-method investment (14,919 ) (14,999 ) 80 Net loss (15,081 ) (15,161 ) 80 Less net income attributable to non-controlling interest 25 25 — Net loss attributable to INAP stockholders (15,106 ) (15,186 ) 80 Comprehensive loss $ (15,204 ) $ (15,186 ) $ 80 For the Nine Months Ended September 30, 2018 As Reported Balances without Adoption of ASC 606 Effect of Change Higher/ (Lower) Net revenues $ 239,135 $ 238,539 $ 596 Sales, general and administrative 57,625 57,671 (46 ) Total operating costs and expenses 233,954 234,000 (46 ) Income from operations 5,181 4,539 642 Loss before income taxes and equity in earnings of equity-method investment (42,610 ) (43,252 ) 642 Net loss (43,014 ) (43,656 ) 642 Less net income attributable to non-controlling interest 75 75 — Net loss attributable to INAP stockholders (43,089 ) (43,731 ) 642 Comprehensive loss $ (43,065 ) $ (43,707 ) $ 642 September 30, 2018 As Reported Balances without Adoption of ASC 606 Effect of Change Higher/ (Lower) ASSETS Contract assets $ 8,026 $ 8,022 $ 4 Non-current contract assets 12,756 12,756 — LIABILITIES AND STOCKHOLDERS’ DEFICIT Deferred revenues 4,696 4,771 (75 ) Other long-term liabilities 4,060 4,060 — Accumulated deficit (1,343,609 ) (1,343,534 ) (75 ) Adoption of ASC 606 did not have a significant impact on the Company's condensed consolidated statement of cash flows. The Company accounts for revenue in accordance with ASC 606. Revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company enters into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. The Company’s contracts with customers often include performance obligations to transfer multiple products and services to a customer. Common performance obligations of the Company include delivery of services, which are discussed in more detail below. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together requires significant judgment by the Company. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in ASC 606. A contracts transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Total transaction price is estimated for impact of variable consideration, such as INAP’s service level arrangements, additional usage and late fees, discounts and promotions, and customer care credits. The majority of our contracts have multiple performance obligations, as the promise to transfer individual goods or services is separately identifiable from other promises in the contracts and, therefore, is distinct. For contracts with multiple performance obligations, we allocate the contract's transaction price to each performance obligation based on its relative stand-alone selling price. The stand-alone selling price (“SSP”) is determined based on observable price. In instances where the SSP is not directly observable, such as when the Company does not sell the product or service separately, INAP determines the SSP using information that may include market conditions and other observable inputs. The Company typically has more than one SSP for individual products and services due to the stratification of those products and services by customers and circumstances. In these instances, the Company may use information such as the size of the customer and geographic region in determining the SSP. Revenue by source, with sales and usage-based taxes excluded, is as follows (in thousands): Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 INAP US INAP INTL INAP US INAP INTL Colocation $ 32,946 $ 1,372 $ 29,114 $ 1,166 Network services 13,015 2,719 14,486 2,281 Cloud 19,717 13,203 9,370 12,490 $ 65,678 $ 17,294 $ 52,970 $ 15,937 Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 INAP US INAP INTL INAP US INAP INTL Colocation $ 94,747 $ 4,349 $ 88,740 $ 3,745 Network services 40,398 8,482 45,108 5,329 Cloud 51,676 39,483 28,696 39,064 $ 186,821 $ 52,314 $ 162,544 $ 48,138 Revenue by geography is as follows (in thousands): Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 INAP US INAP INTL INAP US INAP INTL United States $ 66,825 $ — $ 54,006 $ — Canada — 9,187 — 9,421 Other countries — 6,960 — 5,480 $ 66,825 $ 16,147 $ 54,006 $ 14,901 Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 INAP US INAP INTL INAP US INAP INTL United States $ 190,071 $ — $ 165,757 $ — Canada — 27,846 — 29,320 Other countries — 21,218 — 15,605 $ 190,071 $ 49,064 $ 165,757 $ 44,925 For the nine months ended September 30, 2018, revenue recognized that was included in the contract liability balance at the beginning of each year was $1.7 million . Management expects that fulfillment costs and commission fees paid to sales representatives as a result of obtaining service contracts and contract renewals are recoverable and therefore the Company capitalized them as contract costs in the amount of $28.6 million at September 30, 2018. Capitalized fulfillment and commission fees are amortized on a straight-line basis over the determined life, which vary based on the customer segment. For the three and nine months ended September 30, 2018, amortization recognized was $3.1 million and $8.9 million , respectively. There was no impairment loss recorded on capitalized contract costs in the nine months ended September 30, 2018. Applying the practical expedient pertaining to contract costs, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. These costs are included in "Sales, general and administrative" expenses in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Loss.

ACQUISITION

ACQUISITION	9 Months Ended
	Sep. 30, 2018
Business Combinations [Abstract]
ACQUISITION	ACQUISITION On February 28, 2018, the Company acquired SingleHop LLC ("SingleHop"), a provider of high-performance data center services including colocation, managed hosting, cloud and network services for $132.0 million net of working capital adjustments, liabilities assumed, and net of cash acquired. The transaction was funded with an incremental term loan and cash from the balance sheet. As part of the financing, INAP obtained an amendment to its credit agreement to allow for the incremental term loan and to provide further operational flexibility under the credit agreement covenants. The amendments to the credit agreement are described in more detail in Note 7, "Debt." The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the acquisition date and reflects purchase accounting adjustments subsequent to the acquisition date (in thousands): Preliminary Valuation as of March 31, 2018 Measurement Period Adjustments Preliminary Valuation as of September 30, 2018 Cash $ 2,857 $ (34 ) $ 2,823 Prepaid expenses and other assets 1,683 544 2,227 Property, plant and equipment 14,885 — 14,885 Other long term assets 39 537 576 Intangible assets: Noncompete agreements 4,000 — 4,000 Trade names 1,700 — 1,700 Technology 15,100 — 15,100 Customer relationships 34,100 — 34,100 Goodwill 67,868 (1,372 ) 66,496 Total assets acquired 142,232 (325 ) 141.907 Accounts payable and accrued liabilities 5,098 (224 ) 4,874 Deferred revenue 1,600 (101 ) 1,499 Long term liabilities 534 — 534 Net assets acquired $ 135,000 $ — $ 135,000 The above estimated fair values of consideration transferred, assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition date. Measurement period adjustments reflect new information obtained about facts and circumstances that existed as of the acquisition date. The measurement period adjustments primarily related to working capital and ASC 606. The Company believes that information provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed. Thus, the preliminary measurements of fair value set forth above maybe subject to change. The Company is in the process of finalizing the fair value adjustments. The Company expects to finalize the valuation as soon as practicable but no later than one year from the acquisition date. The fair value assigned to identifiable intangible assets acquired was based on estimates and assumptions made by management. The intangible assets are being amortized over periods which reflect the pattern in which economic benefits of the assets are expected to be realized. The customer relationships are being amortized on an accelerated basis over an estimated useful life of ten years and the noncompete agreements, trade names, and technology are being amortized on a straight-line basis over four , eight , and seven years , respectively. Goodwill represents the excess of the consideration transferred over the aggregate fair values of assets acquired and liabilities assumed. The goodwill recorded in connection with this acquisition was based on operating synergies and other benefits expected to result from the combined operations and the assembled workforce acquired. The goodwill acquired is deductible for tax purposes. Acquisition-related costs recognized during the nine months ended September 30, 2018 including transaction costs such as legal, accounting, valuation and other professional services, were $2.9 million and are included in "Sales, general and administrative" expenses on the accompanying Condensed Consolidated Statements of Operations and Comprehensive Loss. Pro Forma Financial Information The following unaudited pro forma financial information presents the combined results of operations of INAP and SingleHop as if the acquisition had occurred on January 1, 2017. The unaudited pro forma financial information is not intended to represent or be indicative of our consolidated results of operations that would have been reported had the INAP and SingleHop acquisition been completed as of January 1, 2017, and should not be taken as indicative of our future consolidated results of operations. The pro forma results are as follows (in thousands except for per share amounts): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Revenues $ 82,972 $ 80,622 $ 247,260 $ 246,622 Net loss (15,081 ) (11,708 ) (44,216 ) (39,817 ) Basic and diluted net loss per share (0.75 ) (0.59 ) (2.22 ) (2.14 ) Weighted average shares outstanding used in computing basic and diluted net loss per share 20,206 19,929 19,968 18,645

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 30, 2018
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 September 30, 2018 Asset retirement obligations (1) $ — $ — $ 1,813 $ 1,813 December 31, 2017 Asset retirement obligations (1) — — 1,936 1,936 (1) We calculated the fair value of asset retirement obligations by discounting the estimated amount using the current Treasury bill rate adjusted for our credit risk. At September 30, 2018, the balance is included in “Other long-term liabilities,” in the accompanying Condensed Consolidated Balance Sheets. At December 31, 2017, $0.2 million and $1.7 million were included in "Other current liabilities" and "Other long-term liabilities," respectively, in the accompanying Condensed 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, 2018 (in thousands): Balance, January 1, 2018 $ 1,936 Accretion 127 Payments (250 ) Balance, September 30, 2018 $ 1,813 The fair values of our Level 2 debt liabilities, based upon quoted prices for similar items in active markets, are as follows (in thousands): September 30, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Term loan $ 430,232 $ 433,998 $ 298,500 $ 301,485 Revolving credit facility 18,500 18,662 5,000 5,050

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill General The Company tests goodwill and intangible assets with indefinite lives for impairment annually in the third quarter. Additionally, the Company may perform interim tests if an event occurs or circumstances change that could potentially reduce the fair value of a reporting unit or indefinite lived intangible asset below its carrying amount. The carrying value of each reporting unit is determined by assigning the assets and liabilities, including the existing goodwill and intangible assets, to those reporting units. The Company tests goodwill for impairment by either performing a qualitative evaluation or a quantitative test. The qualitative evaluation is an assessment of factors, including reporting unit specific operating results as well as industry, market and general economic conditions, to determine whether it is more likely than not that the fair values of a reporting unit is less than its carrying amount, including goodwill. The Company may elect to bypass this qualitative assessment for some or all of its reporting units and perform a quantitative test. Goodwill is considered impaired if the carrying amount of the net assets exceeds the fair value of the reporting unit. Impairment, if any, would be recorded in operating income / (loss) and this could result in a material impact to net income / (loss) and income / (loss) per share. In 2017, the Company adopted the new guidance under ASU No. 2017-04: Intangibles - Goodwill and Other: Simplifying the Accounting for Goodwill Impairment (Topic 350) which eliminated step 2 of the goodwill impairment test, which required a hypothetical purchase price allocation to measure goodwill impairment loss as of January 1, 2018. A goodwill impairment loss under the new guidance is instead measured using a single step test based on the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill. Based on the Company’s impairment test, no impairments were noted. Annual Testing 2018 During the nine months ended September 30, 2018, we changed our operating segments, as discussed in Note 10, “Operating Segments,” and, subsequently, our reporting units. We now have seven reporting units: US Colocation, US Cloud, US Network, INTL Colocation, INTL Cloud, INTL Network, 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. We performed our annual impairment review as of August 1, 2018. 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 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. The Company determined, after performing the fair value analysis above, that all reporting units’ fair values were in excess of its carrying value. No impairment of goodwill has been identified for the nine months ended September 30, 2018. During the nine months ended September 30, 2018, our goodwill activity is as follows (in thousands): December 31, 2017 Re-allocations SingleHop Acquisition (Note 4) September 30, 2018 Operating segments: INAP COLO $ 6,003 $ (6,003 ) $ — $ — INAP CLOUD 44,206 (44,206 ) — — INAP US — 28,304 66,496 94,800 INAP INTL — 21,905 — 21,905 Total $ 50,209 $ — $ 66,496 $ 116,705 Other Intangible Assets The components of our amortizing intangible assets, including capitalized software, are as follows (in thousands): September 30, 2018 December 31, 2017 Gross Carrying Amount AccumulatedAmortization Gross Carrying Amount AccumulatedAmortization Acquired and developed technology $ 70,201 $ (50,997 ) $ 52,825 $ (48,063 ) Customer relationships, trade names and noncompete 110,774 (55,240 ) 71,116 (50,212 ) $ 180,975 $ (106,237 ) $ 123,941 $ (98,275 ) During the three months ended September 30, 2018 and 2017, amortization expense for intangible assets was approximately $3.2 million and $1.8 million , respectively. Amortization expense for intangible assets was approximately $8.0 million and $4.0 million for the nine months ended September 30, 2018 and 2017, respectively. As of September 30, 2018, remaining amortization expense is as follows (in thousands): Three months remaining in 2018 $ 3,598 2019 13,961 2020 13,394 2021 11,210 2022 8,251 2023 7,747 Thereafter 16,577 Total $ 74,738

DEBT

DEBT	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
DEBT	DEBT Credit Agreement On April 6, 2017, we entered into a new Credit Agreement (the “2017 Credit Agreement”), which provides for a $300.0 million term loan facility ("2017 term loan") and a $25.0 million revolving credit facility (the "2017 revolving credit facility"). The proceeds of the 2017 term loan were used to refinance the Company’s existing credit facility and to pay costs and expenses associated with the 2017 Credit Agreement. Certain portions of refinancing transaction were considered an extinguishment of debt and certain portions were considered a modification. 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 prepaid debt issuance costs related to the 2017 revolving credit facility and will be amortized over the term of the 2017 revolving credit facility. 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 2017 term loan is April 6, 2022 and the maturity date of the 2017 revolving credit facility is October 6, 2021. As of September 30, 2018, the balance of the 2017 term loan and the 2017 revolving credit facility was $430.2 million and $18.5 million , respectively. As of September 30, 2018, the interest rate on the 2017 term loan and the 2017 revolving credit facility was 7.90% and 9.25% , respectively. Borrowings under the 2017 Credit Agreement bear interest at a rate per annum equal to an applicable margin plus, at our option, a base rate or an adjusted LIBOR rate. The applicable margin for loans under the 2017 revolving credit facility is 7.0% for loans bearing interest calculated using the base rate (“Base Rate Loans”) and 6.0% for loans bearing interest calculated using the adjusted LIBOR rate. The applicable margin for loans under the 2017 term loan is 5.75% for Base Rate Loans and 4.75% for adjusted LIBOR rate loans. The base rate is equal to the highest of (a) the adjusted U.S. Prime Lending Rate as published in the Wall Street Journal, (b) with respect to term loans issued on the closing date, 2.00% , (c) the federal funds effective rate from time to time, plus 0.50% , and (d) the adjusted LIBOR rate, as defined below, for a one-month interest period, plus 1.00% . The adjusted LIBOR rate is equal to the rate per annum (adjusted for statutory reserve requirements for Eurocurrency liabilities) at which Eurodollar deposits are offered in the interbank Eurodollar market for the applicable interest period (one, two, three or six months), as quoted on Reuters screen LIBOR (or any successor page or service). The financing commitments of the lenders extending the 2017 revolving credit facility are subject to various conditions, as set forth in the 2017 Credit Agreement. As of September 30, 2018, the Company has been in compliance with all covenants. First Amendment 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. Second Amendment On February 6, 2018, the Company, the Lenders party thereto and Jefferies Finance LLC, as Administrative Agent, entered into a Second Amendment to Credit Agreement (the “Second Amendment”) that amended the 2017 Credit Agreement. The Second Amendment, among other things, amends the 2017 Credit Agreement to (i) permit the Company to incur incremental term loans under the 2017 Credit Agreement of up to $135.0 million to finance the Company’s acquisition of SingleHop and to pay related fees, costs and expenses, and (ii) revise the maximum total net leverage ratio and minimum consolidated interest coverage ratio covenants. The financial covenant amendments became effective upon the consummation of the SingleHop acquisition, while the other provisions of the Second Amendment became effective upon the execution and delivery of the Second Amendment. This transaction was considered a modification. A total of $1.0 million was paid for debt issuance costs related to the Second Amendment. Of the $1.0 million in costs paid, $0.2 million related to the payment of legal and professional fees which were expensed, $0.8 million related to term loan lender fees and will be amortized over the term of the 2017 Credit Agreement. Third Amendment On February 28, 2018, INAP entered into the Incremental and Third Amendment to the Credit Agreement among the Company, the Lenders party thereto and Jefferies Finance LLC, as Administrative Agent (the “Third Amendment”). The Third Amendment provides for a new incremental term loan facility under the 2017 Credit Agreement of $135.0 million (the “Incremental Term Loan”). The Incremental Term Loan has terms and conditions identical to the existing loans under the 2017 Credit Agreement, as amended. Proceeds of the Incremental Term Loan were used to complete the acquisition of SingleHop and to pay fees, costs and expenses related to the acquisition, the Third Amendment and the Incremental Term Loan. This transaction was considered a modification. A total of $5.0 million was paid for debt issuance costs related to the Third Amendment. Of the $5.0 million in costs paid, $0.1 million related to the payment of legal and professional fees which were expensed, $4.9 million related to term loan lender fees and will be amortized over the term of the 2017 Credit Agreement. Fourth Amendment On April 9, 2018, the Company entered into the Fourth Amendment to 2017 Credit Agreement, among the Company, the Lenders party thereto and Jefferies Finance LLC, as Administrative Agent (the “Fourth Amendment”). The Fourth Amendment amends the 2017 Credit Agreement to lower the interest rate margins applicable to the outstanding term loans under the 2017 Credit Agreement by 1.25% . In addition, the Fourth Amendment amends the 2017 Credit Agreement such that if the Company incurs a “Repricing Event” (as defined in the 2017 Credit Agreement), before October 9, 2018, then the Company will incur a 1.00% prepayment premium on any term loans that are subject to such Repricing Event. This transaction was considered a modification. A total of $1.7 million was paid for debt issuance costs related to the Fourth Amendment. Of the $1.7 million in costs paid, $0.1 million related to the payment of legal and professional fees which were expensed, $1.6 million related to term loan lender fees and will be amortized over the term of the 2017 Credit Agreement. Fifth Amendment On August 28, 2018, the Company entered into the Fifth Amendment to 2017 Credit Agreement, among the Company, the Lenders party thereto and Jefferies Finance LLC, as Administrative Agent (the “Fifth Amendment”). The Fifth Amendment amended the 2017 Credit Agreement by increasing the aggregate revolving commitment capacity by $10.0 million to $35.0 million .

EXIT ACTIVITIES AND RESTRUCTURI

EXIT ACTIVITIES AND RESTRUCTURING LIABILITIES	9 Months Ended
	Sep. 30, 2018
Restructuring and Related Activities [Abstract]
EXIT ACTIVITIES AND RESTRUCTURING LIABILITIES	EXIT ACTIVITIES AND RESTRUCTURING LIABILITIES During 2017 and 2018, we recorded exit activity charges due to ceasing use of office space. We include initial charges and plan adjustments in “Exit activities, restructuring and impairments” in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2018 and 2017. The following table displays the transactions and balances for exit activities and restructuring charges during the nine months ended September 30, 2018 and 2017 (in thousands). Our real estate and severance obligations are substantially related to our INAP US segment. Balance Balance December 31, 2017 Initial Charges Plan Adjustments Cash Payments September 30, Activity for 2018 restructuring charge: Real estate obligations $ — $ 1,821 $ 902 $ (961 ) $ 1,762 Activity for 2017 restructuring charge: Real estate obligations 3,380 — 220 (2,747 ) 853 Activity for 2016 restructuring charge: Severance 46 — 35 (35 ) 46 Real estate obligations 247 — 29 (122 ) 154 Activity for 2015 restructuring charge: Real estate obligation 64 — 8 (36 ) 36 Service contracts 388 — 22 (148 ) 262 Activity for 2014 restructuring charge: Real estate obligation 691 — 161 (548 ) 304 $ 4,816 $ 1,821 $ 1,377 $ (4,597 ) $ 3,417 Balance Balance December 31, 2016 Initial Charges Plan Adjustments Cash Payments September 30, Activity for 2017 restructuring charge: Real estate obligations $ — $ 4,024 $ 654 $ (881 ) $ 3,797 Activity for 2016 restructuring charge: Severance 1,911 — 958 (2,467 ) 402 Real estate obligations 933 — 76 (730 ) 279 Activity for 2015 restructuring charge: Real estate obligation 111 — 2 (38 ) 75 Service contracts 565 — 15 (148 ) 432 Activity for 2014 restructuring charge: Real estate obligation 1,183 — 95 (463 ) 815 $ 4,703 $ 4,024 $ 1,800 $ (4,727 ) $ 5,800

COMMITMENTS, CONTINGENCIES AND

COMMITMENTS, CONTINGENCIES AND LITIGATION	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS, CONTINGENCIES AND LITIGATION	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, 2018
Segment Reporting [Abstract]
OPERATING SEGMENTS	OPERATING SEGMENTS The Company has two reportable segments: INAP US and INAP INTL. These segments are comprised of strategic businesses that are defined by the location of the service offerings. Our INAP US segment consists of US Colocation, US Cloud, and US Network services based in the United States. Our INAP INTL segment consists of these same services based in countries other than the United States, and Ubersmith. During the three months ended March 31, 2018, 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. We have reclassified prior period amounts to conform to the current presentation. The prior year reclassifications, which did not affect total revenues, total costs of sales and services, operating loss or net loss, are summarized as follows (in thousands): Three Months Ended September 30, 2017 As Previously Reported Reclassification As Reported Revenues: INAP COLO $ 51,344 $ (51,344 ) $ — INAP CLOUD 17,563 (17,563 ) — INAP US — 52,970 52,970 INAP INTL — 15,937 15,937 Costs of sales and services, exclusive of depreciation and amortization: INAP COLO $ 20,785 $ (20,785 ) $ — INAP CLOUD 4,160 (4,160 ) — INAP US — 18,906 18,906 INAP INTL — 6,039 6,039 Nine Months Ended September 30, 2017 As Previously Reported Reclassification As Reported Revenues: INAP COLO $ 156,727 $ (156,727 ) $ — INAP CLOUD 53,955 (53,955 ) — INAP US — 162,544 162,544 INAP INTL — 48,138 48,138 Costs of sales and services, exclusive of depreciation and amortization: INAP COLO $ 67,661 $ (67,661 ) $ — INAP CLOUD 12,758 (12,758 ) — INAP US — 63,589 63,589 INAP INTL — 16,830 16,830 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. Our services, which are included within both our reportable segments, are described as follows: Colocation Colocation involves providing conditioned power with back-up capacity and physical space within data centers along with associated services such as interconnection, remote hands, 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 design the data center infrastructure, procure the capital equipment, deploy the infrastructure and are responsible for the operation and maintenance of the facility. Cloud Cloud services involve providing compute resources and storage services on demand via an integrated platform that includes our automated bare metal solutions. We offer our next generation cloud platforms in our high density colocation facilities and utilize the INAP performance IP for low latency connectivity. Network Network services includes our patented Performance IP™ service, content delivery network services, IP routing hardware and software platform. 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 102 POPs around the world. The following table provides segment results with prior period amounts reclassified to conform to the current presentation (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Revenues: INAP US $ 65,678 $ 52,970 $ 186,821 $ 162,544 INAP INTL 17,294 15,937 52,314 48,138 Net revenues 82,972 68,907 239,135 210,682 Cost of sales and services, customer support and sales and marketing: INAP US 35,842 29,600 101,252 97,832 INAP INTL 11,478 9,874 34,483 27,339 Total costs of sales and services, customer support and sales and marketing 47,320 39,474 135,735 125,171 Segment profit: INAP US 29,836 23,370 85,569 64,712 INAP INTL 5,816 6,063 17,831 20,799 Total segment profit 35,652 29,433 103,400 85,511 Exit activities, restructuring and impairments 2,347 745 3,140 6,396 Other operating expenses, including sales, general and administrative and depreciation and amortization expenses 31,131 27,956 95,079 79,944 Income (loss) from operations 2,174 732 5,181 (829 ) Non-operating expenses 17,093 12,496 47,791 38,066 Loss before income taxes and equity in earnings of equity-method investment $ (14,919 ) $ (11,764 ) $ (42,610 ) $ (38,895 ) The CODM does not manage the operating segments based on asset allocations. Therefore, assets by operating segment have not been provided.

NET LOSS PER SHARE

NET LOSS PER SHARE	9 Months Ended
	Sep. 30, 2018
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 Nine Months Ended September 30, 2018 2017 2018 2017 Net loss $ (15,081 ) $ (10,863 ) $ (43,014 ) $ (38,377 ) Less net income attributable to non-controlling interests 25 32 75 32 Net loss attributable to common stock $ (15,106 ) $ (10,895 ) $ (43,089 ) $ (38,409 ) Weighted average shares outstanding, basic and diluted 20,206 19,929 19,968 18,645 Net loss per share, basic and diluted $ (0.75 ) $ (0.56 ) $ (2.16 ) $ (2.04 ) Anti-dilutive securities excluded from diluted net loss per share calculation for stock-based compensation plans 1,065 1,460 1,065 1,460

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS On October 23, 2018, the Company closed a public offering of 4,210,527 shares of common stock at $9.50 per share to the public and received from the underwriter net proceeds of $36.6 million (net of underwriting discounts and commissions, and other offering expenses). We have granted the underwriters a 30 -day option to purchase up to 631,579 additional shares of common stock on the same terms and conditions as the shares offered in the public offering.

RECENT ACCOUNTING PRONOUNCEME_2

RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	9 Months Ended
	Sep. 30, 2018
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. In the opinion of management, all adjustments necessary for a fair presentation of the interim results have been reflected therein. All such adjustments were of a normal and recurring nature with the exception of those related to the adoption of new accounting standards as discussed in Note 2, "Recent Accounting Pronouncements" and Note 3, "Revenues." We have condensed or omitted certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP. 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, 2018 and our operating results and cash flows for the interim periods presented. The balance sheet at December 31, 2017 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, 2017 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 nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the 2018 fiscal year or any future periods.
Recent Accounting Pronouncements	In May 2014, the Financial Accounting Standard Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASC 606"). This standard update, along with related subsequently issued updates, clarifies the principles for recognizing revenue and develops a common revenue standard for GAAP. The standard update also amends current guidance for the recognition of costs to obtain and fulfill contracts with customers such that incremental costs of obtaining and direct costs of fulfilling contracts with customers will be deferred and amortized consistent with the transfer of the related good or service. ASC 606 intends to provide a more robust framework for addressing revenue issues; improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; and provide more useful information to users of financial statements through improved disclosure requirements. The Company adopted this guidance on January 1, 2018 using the modified retrospective method. Following the adoption of this guidance, the revenue recognition for our sales arrangements remained materially consistent with our historical practice. For more information, see Note 3, "Revenues." In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which states that a lessee should recognize the assets and liabilities that arise from leases. The guidance is effective for annual and interim periods beginning after December 15, 2018. Earlier adoption is permitted. We expect to adopt the new standard on January 1, 2019. The Company’s adoption process of the new standard is ongoing, including evaluating and quantifying the impact on its consolidated financial statements, identifying the population of leases (and embedded leases), implementing a selected technology solution and collecting and validating lease data. Additionally, the Company is in the process of assessing any potential impacts on the internal controls and process related to both the implementation and ongoing compliance of the new guidance. While the Company is continuing to assess all potential impacts of the standard, it currently believes the most significant impact relates to the recognition on the Company’s balance sheet of right-of-use assets and lease liabilities for all operating leases. Consistent with current guidance, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification. For income statement purposes, operating leases will result in a straight-line expense while finance leases will result in a front-loaded expense pattern. The new lease standard provides entities two options for applying the modified retrospective approach (1) retrospectively to each prior reporting period presented in the financial statements with the cumulative-effect adjustment recognized at the beginning of the earliest comparative period presented or (2) retrospectively at the beginning of the period of adoption (January 1, 2019) through a cumulative-effect adjustment recognized then. The Company plans to adopt the standard by recognizing and measuring leases at the adoption date with a cumulative effect of initially applying the guidance recognized at the date of initial application. The Company is currently planning on electing the package of practical expedients to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs and is evaluating the other practical expedients available under the guidance. On August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, a consensus of the FASB’s Emerging Issues Task Force. The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. We adopted this guidance in the first quarter of 2018 and it did not have a significant impact on our condensed consolidated financial statements. On January 2017, the FASB issued final guidance that revises the definition of a business, ASU No. 2017-01: Clarifying the Definition of a Business (Topic 805). The definition of a business affects many areas of accounting (e.g., acquisitions, disposals, goodwill impairment, or consolidation). The guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities is not a business. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs by more closely aligning it with how outputs are described in ASC 606. We adopted this guidance in the first quarter of 2018 and it did not impact our condensed consolidated financial statements. The guidance may have an impact on the Company as it pursues its strategy to develop its business. On May 2017, the FASB issued guidance ASU No. 2017-09: Scope of Modification Accounting (Topic 718), to clarify when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. We adopted this guidance in the first quarter of 2018 and it did not impact our condensed consolidated financial statements.
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.
Goodwill	The Company tests goodwill and intangible assets with indefinite lives for impairment annually in the third quarter. Additionally, the Company may perform interim tests if an event occurs or circumstances change that could potentially reduce the fair value of a reporting unit or indefinite lived intangible asset below its carrying amount. The carrying value of each reporting unit is determined by assigning the assets and liabilities, including the existing goodwill and intangible assets, to those reporting units. The Company tests goodwill for impairment by either performing a qualitative evaluation or a quantitative test. The qualitative evaluation is an assessment of factors, including reporting unit specific operating results as well as industry, market and general economic conditions, to determine whether it is more likely than not that the fair values of a reporting unit is less than its carrying amount, including goodwill. The Company may elect to bypass this qualitative assessment for some or all of its reporting units and perform a quantitative test. Goodwill is considered impaired if the carrying amount of the net assets exceeds the fair value of the reporting unit. Impairment, if any, would be recorded in operating income / (loss) and this could result in a material impact to net income / (loss) and income / (loss) per share. In 2017, the Company adopted the new guidance under ASU No. 2017-04: Intangibles - Goodwill and Other: Simplifying the Accounting for Goodwill Impairment (Topic 350) which eliminated step 2 of the goodwill impairment test, which required a hypothetical purchase price allocation to measure goodwill impairment loss as of January 1, 2018. A goodwill impairment loss under the new guidance is instead measured using a single step test based on the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill. Based on the Company’s impairment test, no impairments were noted. Annual Testing 2018 During the nine months ended September 30, 2018, we changed our operating segments, as discussed in Note 10, “Operating Segments,” and, subsequently, our reporting units. We now have seven reporting units: US Colocation, US Cloud, US Network, INTL Colocation, INTL Cloud, INTL Network, 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. We performed our annual impairment review as of August 1, 2018. 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 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.
Operating Segments	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.
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.

REVENUES (Tables)

REVENUES (Tables)	9 Months Ended
	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Schedule of new accounting pronouncements and changes in accounting principles	In accordance with the new revenue standard requirements, the disclosure of the current period impact of adoption on our condensed consolidated statement of operations and comprehensive loss and balance sheet is as follows (in thousands, except for per share amounts): For the Three Months Ended September 30, 2018 As Reported Balances without Adoption of ASC 606 Effect of Change Higher/ (Lower) Net revenues $ 82,972 $ 82,822 $ 150 Sales, general and administrative 18,170 18,100 70 Total operating costs and expenses 80,798 80,728 70 Income from operations 2,174 2,094 80 Loss before income taxes and equity in earnings of equity-method investment (14,919 ) (14,999 ) 80 Net loss (15,081 ) (15,161 ) 80 Less net income attributable to non-controlling interest 25 25 — Net loss attributable to INAP stockholders (15,106 ) (15,186 ) 80 Comprehensive loss $ (15,204 ) $ (15,186 ) $ 80 For the Nine Months Ended September 30, 2018 As Reported Balances without Adoption of ASC 606 Effect of Change Higher/ (Lower) Net revenues $ 239,135 $ 238,539 $ 596 Sales, general and administrative 57,625 57,671 (46 ) Total operating costs and expenses 233,954 234,000 (46 ) Income from operations 5,181 4,539 642 Loss before income taxes and equity in earnings of equity-method investment (42,610 ) (43,252 ) 642 Net loss (43,014 ) (43,656 ) 642 Less net income attributable to non-controlling interest 75 75 — Net loss attributable to INAP stockholders (43,089 ) (43,731 ) 642 Comprehensive loss $ (43,065 ) $ (43,707 ) $ 642 September 30, 2018 As Reported Balances without Adoption of ASC 606 Effect of Change Higher/ (Lower) ASSETS Contract assets $ 8,026 $ 8,022 $ 4 Non-current contract assets 12,756 12,756 — LIABILITIES AND STOCKHOLDERS’ DEFICIT Deferred revenues 4,696 4,771 (75 ) Other long-term liabilities 4,060 4,060 — Accumulated deficit (1,343,609 ) (1,343,534 ) (75 ) The following table presents the effect of the adoption of ASC 606 on the Company’s consolidated balance sheet as of January 1, 2018 (in thousands): December 31, 2017, as reported Adjustments January 1, 2018, as adjusted ASSETS Prepaid expenses and other assets $ 8,673 $ 6,814 $ 15,487 Deposits and other assets 11,015 11,234 22,249 LIABILITIES AND STOCKHOLDERS’ DEFICIT Deferred revenues 4,861 (749 ) 4,112 Deferred tax liability 1,651 209 1,860 Other long-term liabilities 7,744 (4,616 ) 3,128 Accumulated deficit (1,323,723 ) 23,204 (1,300,519 )
Summary of revenue by source	Revenue by source, with sales and usage-based taxes excluded, is as follows (in thousands): Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 INAP US INAP INTL INAP US INAP INTL Colocation $ 32,946 $ 1,372 $ 29,114 $ 1,166 Network services 13,015 2,719 14,486 2,281 Cloud 19,717 13,203 9,370 12,490 $ 65,678 $ 17,294 $ 52,970 $ 15,937 Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 INAP US INAP INTL INAP US INAP INTL Colocation $ 94,747 $ 4,349 $ 88,740 $ 3,745 Network services 40,398 8,482 45,108 5,329 Cloud 51,676 39,483 28,696 39,064 $ 186,821 $ 52,314 $ 162,544 $ 48,138 Revenue by geography is as follows (in thousands): Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 INAP US INAP INTL INAP US INAP INTL United States $ 66,825 $ — $ 54,006 $ — Canada — 9,187 — 9,421 Other countries — 6,960 — 5,480 $ 66,825 $ 16,147 $ 54,006 $ 14,901 Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 INAP US INAP INTL INAP US INAP INTL United States $ 190,071 $ — $ 165,757 $ — Canada — 27,846 — 29,320 Other countries — 21,218 — 15,605 $ 190,071 $ 49,064 $ 165,757 $ 44,925

ACQUISITION (Tables)

ACQUISITION (Tables)	9 Months Ended
	Sep. 30, 2018
Business Combinations [Abstract]
Schedule of fair value of acquired assets	The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the acquisition date and reflects purchase accounting adjustments subsequent to the acquisition date (in thousands): Preliminary Valuation as of March 31, 2018 Measurement Period Adjustments Preliminary Valuation as of September 30, 2018 Cash $ 2,857 $ (34 ) $ 2,823 Prepaid expenses and other assets 1,683 544 2,227 Property, plant and equipment 14,885 — 14,885 Other long term assets 39 537 576 Intangible assets: Noncompete agreements 4,000 — 4,000 Trade names 1,700 — 1,700 Technology 15,100 — 15,100 Customer relationships 34,100 — 34,100 Goodwill 67,868 (1,372 ) 66,496 Total assets acquired 142,232 (325 ) 141.907 Accounts payable and accrued liabilities 5,098 (224 ) 4,874 Deferred revenue 1,600 (101 ) 1,499 Long term liabilities 534 — 534 Net assets acquired $ 135,000 $ — $ 135,000
Summary of unaudited pro forma financial information	The following unaudited pro forma financial information presents the combined results of operations of INAP and SingleHop as if the acquisition had occurred on January 1, 2017. The unaudited pro forma financial information is not intended to represent or be indicative of our consolidated results of operations that would have been reported had the INAP and SingleHop acquisition been completed as of January 1, 2017, and should not be taken as indicative of our future consolidated results of operations. The pro forma results are as follows (in thousands except for per share amounts): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Revenues $ 82,972 $ 80,622 $ 247,260 $ 246,622 Net loss (15,081 ) (11,708 ) (44,216 ) (39,817 ) Basic and diluted net loss per share (0.75 ) (0.59 ) (2.22 ) (2.14 ) Weighted average shares outstanding used in computing basic and diluted net loss per share 20,206 19,929 19,968 18,645

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 30, 2018
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 September 30, 2018 Asset retirement obligations (1) $ — $ — $ 1,813 $ 1,813 December 31, 2017 Asset retirement obligations (1) — — 1,936 1,936 (1) We calculated the fair value of asset retirement obligations by discounting the estimated amount using the current Treasury bill rate adjusted for our credit risk. At September 30, 2018, the balance is included in “Other long-term liabilities,” in the accompanying Condensed Consolidated Balance Sheets. At December 31, 2017, $0.2 million and $1.7 million were included in "Other current liabilities" and "Other long-term liabilities," respectively, in the accompanying Condensed 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 nine months ended September 30, 2018 (in thousands): Balance, January 1, 2018 $ 1,936 Accretion 127 Payments (250 ) Balance, September 30, 2018 $ 1,813
Schedule of fair value of term loan and revolving credit facility	The fair values of our Level 2 debt liabilities, based upon quoted prices for similar items in active markets, are as follows (in thousands): September 30, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Term loan $ 430,232 $ 433,998 $ 298,500 $ 301,485 Revolving credit facility 18,500 18,662 5,000 5,050

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of re-allocated goodwill	During the nine months ended September 30, 2018, our goodwill activity is as follows (in thousands): December 31, 2017 Re-allocations SingleHop Acquisition (Note 4) September 30, 2018 Operating segments: INAP COLO $ 6,003 $ (6,003 ) $ — $ — INAP CLOUD 44,206 (44,206 ) — — INAP US — 28,304 66,496 94,800 INAP INTL — 21,905 — 21,905 Total $ 50,209 $ — $ 66,496 $ 116,705
Schedule of components of amortizing intangible assets	The components of our amortizing intangible assets, including capitalized software, are as follows (in thousands): September 30, 2018 December 31, 2017 Gross Carrying Amount AccumulatedAmortization Gross Carrying Amount AccumulatedAmortization Acquired and developed technology $ 70,201 $ (50,997 ) $ 52,825 $ (48,063 ) Customer relationships, trade names and noncompete 110,774 (55,240 ) 71,116 (50,212 ) $ 180,975 $ (106,237 ) $ 123,941 $ (98,275 )
Schedule of remaining amortization expense for intangible assets	As of September 30, 2018, remaining amortization expense is as follows (in thousands): Three months remaining in 2018 $ 3,598 2019 13,961 2020 13,394 2021 11,210 2022 8,251 2023 7,747 Thereafter 16,577 Total $ 74,738

EXIT ACTIVITIES AND RESTRUCTU_2

EXIT ACTIVITIES AND RESTRUCTURING LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2018
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 nine months ended September 30, 2018 and 2017 (in thousands). Our real estate and severance obligations are substantially related to our INAP US segment. Balance Balance December 31, 2017 Initial Charges Plan Adjustments Cash Payments September 30, Activity for 2018 restructuring charge: Real estate obligations $ — $ 1,821 $ 902 $ (961 ) $ 1,762 Activity for 2017 restructuring charge: Real estate obligations 3,380 — 220 (2,747 ) 853 Activity for 2016 restructuring charge: Severance 46 — 35 (35 ) 46 Real estate obligations 247 — 29 (122 ) 154 Activity for 2015 restructuring charge: Real estate obligation 64 — 8 (36 ) 36 Service contracts 388 — 22 (148 ) 262 Activity for 2014 restructuring charge: Real estate obligation 691 — 161 (548 ) 304 $ 4,816 $ 1,821 $ 1,377 $ (4,597 ) $ 3,417 Balance Balance December 31, 2016 Initial Charges Plan Adjustments Cash Payments September 30, Activity for 2017 restructuring charge: Real estate obligations $ — $ 4,024 $ 654 $ (881 ) $ 3,797 Activity for 2016 restructuring charge: Severance 1,911 — 958 (2,467 ) 402 Real estate obligations 933 — 76 (730 ) 279 Activity for 2015 restructuring charge: Real estate obligation 111 — 2 (38 ) 75 Service contracts 565 — 15 (148 ) 432 Activity for 2014 restructuring charge: Real estate obligation 1,183 — 95 (463 ) 815 $ 4,703 $ 4,024 $ 1,800 $ (4,727 ) $ 5,800

OPERATING SEGMENTS (Tables)

OPERATING SEGMENTS (Tables)	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Schedule of change in organizational structure	The prior year reclassifications, which did not affect total revenues, total costs of sales and services, operating loss or net loss, are summarized as follows (in thousands): Three Months Ended September 30, 2017 As Previously Reported Reclassification As Reported Revenues: INAP COLO $ 51,344 $ (51,344 ) $ — INAP CLOUD 17,563 (17,563 ) — INAP US — 52,970 52,970 INAP INTL — 15,937 15,937 Costs of sales and services, exclusive of depreciation and amortization: INAP COLO $ 20,785 $ (20,785 ) $ — INAP CLOUD 4,160 (4,160 ) — INAP US — 18,906 18,906 INAP INTL — 6,039 6,039 Nine Months Ended September 30, 2017 As Previously Reported Reclassification As Reported Revenues: INAP COLO $ 156,727 $ (156,727 ) $ — INAP CLOUD 53,955 (53,955 ) — INAP US — 162,544 162,544 INAP INTL — 48,138 48,138 Costs of sales and services, exclusive of depreciation and amortization: INAP COLO $ 67,661 $ (67,661 ) $ — INAP CLOUD 12,758 (12,758 ) — INAP US — 63,589 63,589 INAP INTL — 16,830 16,830
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 September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Revenues: INAP US $ 65,678 $ 52,970 $ 186,821 $ 162,544 INAP INTL 17,294 15,937 52,314 48,138 Net revenues 82,972 68,907 239,135 210,682 Cost of sales and services, customer support and sales and marketing: INAP US 35,842 29,600 101,252 97,832 INAP INTL 11,478 9,874 34,483 27,339 Total costs of sales and services, customer support and sales and marketing 47,320 39,474 135,735 125,171 Segment profit: INAP US 29,836 23,370 85,569 64,712 INAP INTL 5,816 6,063 17,831 20,799 Total segment profit 35,652 29,433 103,400 85,511 Exit activities, restructuring and impairments 2,347 745 3,140 6,396 Other operating expenses, including sales, general and administrative and depreciation and amortization expenses 31,131 27,956 95,079 79,944 Income (loss) from operations 2,174 732 5,181 (829 ) Non-operating expenses 17,093 12,496 47,791 38,066 Loss before income taxes and equity in earnings of equity-method investment $ (14,919 ) $ (11,764 ) $ (42,610 ) $ (38,895 )

NET LOSS PER SHARE (Tables)

NET LOSS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2018
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 Nine Months Ended September 30, 2018 2017 2018 2017 Net loss $ (15,081 ) $ (10,863 ) $ (43,014 ) $ (38,377 ) Less net income attributable to non-controlling interests 25 32 75 32 Net loss attributable to common stock $ (15,106 ) $ (10,895 ) $ (43,089 ) $ (38,409 ) Weighted average shares outstanding, basic and diluted 20,206 19,929 19,968 18,645 Net loss per share, basic and diluted $ (0.75 ) $ (0.56 ) $ (2.16 ) $ (2.04 ) Anti-dilutive securities excluded from diluted net loss per share calculation for stock-based compensation plans 1,065 1,460 1,065 1,460

NATURE OF OPERATIONS AND BASI_2

NATURE OF OPERATIONS AND BASIS OF PRESENTATION - Narrative (Details) ft² in Millions	9 Months Ended
	Sep. 30, 2018ft²datacentermarketpoint_of_presence
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of datacenters (datacenter) | datacenter	53
Number of metropolitan markets (market) | market	21
Number of POPs (point of presence) | point_of_presence	102
Area under lease (sqft)	1
Area of data centers (sqft)	0.6

REVENUES - Schedule of Adjustme

REVENUES - Schedule of Adjustments to Previously Reported Financial Statements from the Adoption (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
ASSETS
Prepaid expenses and other assets	$ 9,497	$ 15,487	$ 8,673
Deposits and other assets	12,050	22,249	11,015
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Deferred revenues	4,696	4,112	4,861
Deferred tax liability	1,952	1,860	1,651
Other long-term liabilities	4,060	3,128	7,744
Accumulated deficit	(1,343,609)	(1,300,519)	(1,323,723)
Balances without Adoption of ASC 606
ASSETS
Prepaid expenses and other assets			8,673
Deposits and other assets			11,015
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Deferred revenues	4,771		4,861
Deferred tax liability			1,651
Other long-term liabilities	4,060		7,744
Accumulated deficit	(1,343,534)		$ (1,323,723)
Effect of Change Higher/ (Lower) | Accounting Standards Update 2014-09
ASSETS
Prepaid expenses and other assets		6,814
Deposits and other assets		11,234
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Deferred revenues	(75)	(749)
Deferred tax liability		209
Other long-term liabilities	0	(4,616)
Accumulated deficit	$ (75)	$ 23,204

REVENUES - Schedule of Current

REVENUES - Schedule of Current Impact from Adoption on Consolidated Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenues	$ 82,972	$ 68,907	$ 239,135	$ 210,682
Sales, general and administrative	18,170	15,331	57,625	47,466
Total operating costs and expenses	80,798	68,175	233,954	211,511
Income from operations	2,174	732	5,181	(829)
Loss before income taxes, non-controlling interest and equity in earnings of equity-method investment	(14,919)	(11,764)	(42,610)	(38,895)
Net loss	(15,081)	(10,863)	(43,014)	(38,377)
Less net income attributable to non-controlling interest	25	32	75	32
Net loss attributable to INAP stockholders	(15,106)	(10,895)	(43,089)	(38,409)
Comprehensive loss	(15,204)	$ (10,986)	(43,065)	$ (38,250)
Balances without Adoption of ASC 606
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenues	82,822		238,539
Sales, general and administrative	18,100		57,671
Total operating costs and expenses	80,728		234,000
Income from operations	2,094		4,539
Loss before income taxes, non-controlling interest and equity in earnings of equity-method investment	(14,999)		(43,252)
Net loss	(15,161)		(43,656)
Less net income attributable to non-controlling interest	25		75
Net loss attributable to INAP stockholders	(15,186)		(43,731)
Comprehensive loss	(15,186)		(43,707)
Effect of Change Higher/ (Lower) | Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenues	150		596
Sales, general and administrative	70		(46)
Total operating costs and expenses	70		(46)
Income from operations	80		642
Loss before income taxes, non-controlling interest and equity in earnings of equity-method investment	80		642
Net loss	80		642
Less net income attributable to non-controlling interest	0		0
Net loss attributable to INAP stockholders	80		642
Comprehensive loss	$ 80		$ 642

REVENUES - Schedule of Curren_2

REVENUES - Schedule of Current Impact from Adoption on Consolidated Balance Sheet (Details) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
ASSETS
Contract assets	$ 8,026		$ 0
Non-current contract assets	12,756		0
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Deferred revenues	4,696	$ 4,112	4,861
Other long-term liabilities	4,060	3,128	7,744
Accumulated deficit	(1,343,609)	(1,300,519)	(1,323,723)
Balances without Adoption of ASC 606
ASSETS
Contract assets	8,022
Non-current contract assets	12,756
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Deferred revenues	4,771		4,861
Other long-term liabilities	4,060		7,744
Accumulated deficit	(1,343,534)		$ (1,323,723)
Effect of Change Higher/ (Lower) | Accounting Standards Update 2014-09
ASSETS
Contract assets	4
Non-current contract assets	0
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Deferred revenues	(75)	(749)
Other long-term liabilities	0	(4,616)
Accumulated deficit	$ (75)	$ 23,204

REVENUES - Summary of Revenue b

REVENUES - Summary of Revenue by Source (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenues	$ 82,972	$ 68,907	$ 239,135	$ 210,682
INAP US
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenues	65,678	52,970	186,821	162,544
INAP US | Colocation
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenues	32,946	29,114	94,747	88,740
INAP US | Network services
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenues	13,015	14,486	40,398	45,108
INAP US | Cloud
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenues	19,717	9,370	51,676	28,696
INAP INTL
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenues	17,294	15,937	52,314	48,138
INAP INTL | Colocation
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenues	1,372	1,166	4,349	3,745
INAP INTL | Network services
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenues	2,719	2,281	8,482	5,329
INAP INTL | Cloud
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenues	$ 13,203	$ 12,490	$ 39,483	$ 39,064

REVENUES - Summary of Revenue_2

REVENUES - Summary of Revenue by Geography (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenues	$ 82,972	$ 68,907	$ 239,135	$ 210,682
INAP US
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenues	66,825	54,006	190,071	165,757
INAP INTL
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenues	16,147	14,901	49,064	44,925
United States | INAP US
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenues	66,825	54,006	190,071	165,757
United States | INAP INTL
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenues	0	0	0	0
Canada | INAP US
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenues	0	0	0	0
Canada | INAP INTL
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenues	9,187	9,421	27,846	29,320
Other countries | INAP US
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenues	0	0	0	0
Other countries | INAP INTL
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenues	$ 6,960	$ 5,480	$ 21,218	$ 15,605

REVENUES - Narrative (Details)

REVENUES - Narrative (Details) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2018USD ($)	Sep. 30, 2018USD ($)
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue recognized that was included in the contract liability balance at the beginning of the year		$ 1.7
Fulfillment Costs and Commission Fees
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Capitalized contract cost	$ 28.6	28.6
Amortization of capitalized contract costs	$ 3.1	$ 8.9

ACQUISITION - Narrative (Detail

ACQUISITION - Narrative (Details) - SingleHop, LLC - USD ($) $ in Millions	Feb. 28, 2018	Sep. 30, 2018
Business Acquisition [Line Items]
Payment to acquire business	$ 132
Acquisition related costs		$ 2.9
Customer relationships
Business Acquisition [Line Items]
Weighted Average	10 years
Noncompete agreements
Business Acquisition [Line Items]
Weighted Average	4 years
Trade names
Business Acquisition [Line Items]
Weighted Average	8 years
Technology
Business Acquisition [Line Items]
Weighted Average	7 years

ACQUISITION - Schedule of Fair

ACQUISITION - Schedule of Fair Value of Acquired Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Intangible assets:
Goodwill	$ 116,705		$ 50,209
SingleHop, LLC
Business Acquisition [Line Items]
Cash	2,823	$ 2,857
Measurement Period Adjustments, Cash	(34)
Prepaid expenses and other assets	2,227	1,683
Measurement Period Adjustments, Prepaid expenses and other assets	544
Property, plant and equipment	14,885	14,885
Measurement Period Adjustments, Property, plant and equipment	0
Other long term assets	576	39
Measurement Period Adjustments, Other long term assets	537
Intangible assets:
Goodwill	66,496	67,868
Measurement Period Adjustments, Goodwill	(1,372)
Total assets acquired	141,907	142,232
Measurement Period Adjustments, Total assets acquired	(325)
Accounts payable and accrued liabilities	4,874	5,098
Measurement Period Adjustments, Accounts payable and accrued liabilities	(224)
Deferred revenue	1,499	1,600
Measurement Period Adjustments, Deferred revenue	(101)
Long term liabilities	534	534
Measurement Period Adjustments, Long term liabilities	0
Net assets acquired	135,000	135,000
Measurement Period Adjustments, Net assets acquired	0
SingleHop, LLC | Noncompete agreements
Intangible assets:
Finite lived intangible assets	4,000	4,000
Measurement Period Adjustments, Intangible assets	0
SingleHop, LLC | Trade names
Intangible assets:
Finite lived intangible assets	1,700	1,700
Measurement Period Adjustments, Intangible assets	0
SingleHop, LLC | Technology
Intangible assets:
Finite lived intangible assets	15,100	15,100
Measurement Period Adjustments, Intangible assets	0
SingleHop, LLC | Customer relationships
Intangible assets:
Finite lived intangible assets	34,100	$ 34,100
Measurement Period Adjustments, Intangible assets	$ 0

ACQUISITION - Summary of Unaudi

ACQUISITION - Summary of Unaudited Proforma Financial Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Business Combinations [Abstract]
Revenues	$ 82,972	$ 80,622	$ 247,260	$ 246,622
Net loss	$ (15,081)	$ (11,708)	$ (44,216)	$ (39,817)
Net Income per share (in dollars per share)	$ (0.75)	$ (0.59)	$ (2.22)	$ (2.14)
Basic and diluted (in shares)	20,206	19,929	19,968	18,645

FAIR VALUE MEASUREMENTS - Summa

FAIR VALUE MEASUREMENTS - Summary of Assets and liabilities measured at fair value on recurring basis (Details) - Recurring basis - Asset retirement obligations - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Total
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset retirement obligations	$ 1,813	$ 1,936
Total | Other Noncurrent Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset retirement obligations		200
Total | Other Current Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset retirement obligations		1,700
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset retirement obligations	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset retirement obligations	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset retirement obligations	$ 1,813	$ 1,936

FAIR VALUE MEASUREMENTS - Sum_2

FAIR VALUE MEASUREMENTS - Summary of changes in Level 3 financial asset - Asset retirement obligation (Details) - Asset retirement obligations $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	$ 1,936
Accretion	127
Payments	(250)
Balance, end of period	$ 1,813

FAIR VALUE MEASUREMENTS - Sum_3

FAIR VALUE MEASUREMENTS - Summary of fair value Level 3 debt - Term loan (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Term loan	$ 430,232	$ 298,500
Revolving credit facility	18,500	5,000
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Term loan	433,998	301,485
Revolving credit facility	$ 18,662	$ 5,050

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)reporting_unit	Sep. 30, 2017USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Number of reportable units (reporting unit) | reporting_unit			7
Amortization expense for intangible assets | $	$ 3.2	$ 1.8	$ 8	$ 4

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Re-allocations of Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)
Operating segments:
Goodwill, beginning of period	$ 50,209
Re-allocations	0
SingleHop Acquisition	66,496
Goodwill, end of period	116,705
INAP COLO
Operating segments:
Goodwill, beginning of period	6,003
Re-allocations	(6,003)
SingleHop Acquisition	0
Goodwill, end of period	0
INAP CLOUD
Operating segments:
Goodwill, beginning of period	44,206
Re-allocations	(44,206)
SingleHop Acquisition	0
Goodwill, end of period	0
INAP US
Operating segments:
Goodwill, beginning of period	0
Re-allocations	28,304
SingleHop Acquisition	66,496
Goodwill, end of period	94,800
INAP INTL
Operating segments:
Goodwill, beginning of period	0
Re-allocations	21,905
SingleHop Acquisition	0
Goodwill, end of period	$ 21,905

GOODWILL AND OTHER INTANGIBLE_5

GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Components of Amortizing Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 180,975	$ 123,941
Accumulated Amortization	(106,237)	(98,275)
Acquired and developed technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	70,201	52,825
Accumulated Amortization	(50,997)	(48,063)
Customer relationships, trade names and noncompete
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	110,774	71,116
Accumulated Amortization	$ (55,240)	$ (50,212)

GOODWILL AND OTHER INTANGIBLE_6

GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Remaining Amortization Expense for Intangible Assets (Details) $ in Thousands	Sep. 30, 2018USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Three months remaining in 2018	$ 3,598
2,019	13,961
2,020	13,394
2,021	11,210
2,022	8,251
2,023	7,747
Thereafter	16,577
Total	$ 74,738

DEBT - Narrative (Details)

DEBT - Narrative (Details) - USD ($)	Aug. 28, 2018	Apr. 09, 2018	Feb. 28, 2018	Feb. 06, 2018	Apr. 06, 2017	Mar. 31, 2018	Sep. 30, 2018	Sep. 30, 2017
Short-term Debt [Line Items]
Debt issuance costs							$ 7,696,000	$ 8,277,000
Loss on extinguishment and modification of debt							$ 0	$ 6,785,000
Term Loan | Base Rate
Short-term Debt [Line Items]
Interest rate during period for the credit agreement							5.75%
Term Loan | London Interbank Offered Rate (LIBOR)
Short-term Debt [Line Items]
Interest rate during period for the credit agreement							4.75%
Revolving credit facility | Base Rate
Short-term Debt [Line Items]
Interest rate during period for the credit agreement							7.00%
Revolving credit facility | London Interbank Offered Rate (LIBOR)
Short-term Debt [Line Items]
Interest rate during period for the credit agreement							6.00%
2017 Credit Agreement | Line of Credit
Short-term Debt [Line Items]
Debt issuance costs					$ 5,700,000
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
Debt balance							$ 430,200,000
Interest rate at period end							7.90%
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
Debt balance							$ 18,500,000
Interest rate at period end							9.25%
2017 Credit Agreement | Incremental Term Loan
Short-term Debt [Line Items]
Total amount available under Credit Agreement			$ 135,000,000	$ 135,000,000
Credit Agreement
Short-term Debt [Line Items]
Loss on extinguishment and modification of debt					$ 4,800,000
Credit Agreement | London Interbank Offered Rate (LIBOR)
Short-term Debt [Line Items]
Basis spread on variable rate						1.00%
Credit Agreement | Prime Rate
Short-term Debt [Line Items]
Basis spread on variable rate						2.00%
Credit Agreement | Federal Funds Effective Swap Rate
Short-term Debt [Line Items]
Basis spread on variable rate						0.50%
Second Amendment to 2017 Credit Agreement | Line of Credit
Short-term Debt [Line Items]
Debt issuance costs				1,000,000
Legal and professional expenses				200,000
Second Amendment to 2017 Credit Agreement | Term Loan | Line of Credit
Short-term Debt [Line Items]
Debt issuance costs				$ 800,000
Third Amendment To 2017 Credit Agreement | Line of Credit
Short-term Debt [Line Items]
Debt issuance costs			5,000,000
Legal and professional expenses			100,000
Third Amendment To 2017 Credit Agreement | Term Loan | Line of Credit
Short-term Debt [Line Items]
Debt issuance costs			$ 4,900,000
Fourth Amendment to Credit Agreement | Term Loan | Line of Credit
Short-term Debt [Line Items]
Debt issuance costs		$ 1,700,000
Debt issuance costs		1,600,000
Legal and professional expenses		$ 100,000
Reduction of interest rate margins		1.25%
Prepayment premium percentage		1.00%
Fifth Amendment To Credit Agreement | Revolving credit facility
Short-term Debt [Line Items]
Total amount available under Credit Agreement	$ 35,000,000
Line of Credit Facility, Increase (Decrease), Net	$ 10,000,000

EXIT ACTIVITIES AND RESTRUCTU_3

EXIT ACTIVITIES AND RESTRUCTURING LIABILITIES - Exit activities and restructuring charges for Real estate obligations (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Restructuring Reserve [Roll Forward]
Balance, beginning of period	$ 4,816	$ 4,703
Initial Charges	1,821	4,024
Plan Adjustments	1,377	1,800
Cash Payments	(4,597)	(4,727)
Balance, end of period	3,417	5,800
Activity for 2018 restructuring charge: | Real estate obligations
Restructuring Reserve [Roll Forward]
Balance, beginning of period	0
Initial Charges	1,821
Plan Adjustments	902
Cash Payments	(961)
Balance, end of period	1,762
Activity for 2017 restructuring charge: | Real estate obligations
Restructuring Reserve [Roll Forward]
Balance, beginning of period	3,380	0
Initial Charges	0	4,024
Plan Adjustments	220	654
Cash Payments	(2,747)	(881)
Balance, end of period	853	3,797
Activity for 2016 restructuring charge: | Real estate obligations
Restructuring Reserve [Roll Forward]
Balance, beginning of period	247	933
Initial Charges	0	0
Plan Adjustments	29	76
Cash Payments	(122)	(730)
Balance, end of period	154	279
Activity for 2016 restructuring charge: | Severance
Restructuring Reserve [Roll Forward]
Balance, beginning of period	46	1,911
Initial Charges	0	0
Plan Adjustments	35	958
Cash Payments	(35)	(2,467)
Balance, end of period	46	402
Activity for 2015 restructuring charge: | Real estate obligations
Restructuring Reserve [Roll Forward]
Balance, beginning of period	64	111
Initial Charges	0	0
Plan Adjustments	8	2
Cash Payments	(36)	(38)
Balance, end of period	36	75
Activity for 2015 restructuring charge: | Service contracts
Restructuring Reserve [Roll Forward]
Balance, beginning of period	388	565
Initial Charges	0	0
Plan Adjustments	22	15
Cash Payments	(148)	(148)
Balance, end of period	262	432
Activity for 2014 restructuring charge: | Real estate obligations
Restructuring Reserve [Roll Forward]
Balance, beginning of period	691	1,183
Initial Charges	0	0
Plan Adjustments	161	95
Cash Payments	(548)	(463)
Balance, end of period	$ 304	$ 815

OPERATING SEGMENTS - Narrative

OPERATING SEGMENTS - Narrative (Details)	9 Months Ended
	Sep. 30, 2018point_of_presencesegment
Segment Reporting [Abstract]
Number of reportable segments (segment) | segment	2
Segment Reporting Information [Line Items]
Number of POPs (point of presence)	102
Network services
Segment Reporting Information [Line Items]
Number of POPs (point of presence)	102

OPERATING SEGMENTS - Schedule o

OPERATING SEGMENTS - Schedule of Change in Organizational Structure (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues:
Total revenues	$ 82,972	$ 68,907	$ 239,135	$ 210,682
Cost of sales and services, customer support and sales and marketing:
Costs of sales and services, exclusive of depreciation and amortization	28,866	24,945	81,880	80,419
INAP COLO
Revenues:
Total revenues		0		0
Cost of sales and services, customer support and sales and marketing:
Costs of sales and services, exclusive of depreciation and amortization		0		0
INAP CLOUD
Revenues:
Total revenues		0		0
Cost of sales and services, customer support and sales and marketing:
Costs of sales and services, exclusive of depreciation and amortization		0		0
INAP US
Revenues:
Total revenues	65,678	52,970	186,821	162,544
Cost of sales and services, customer support and sales and marketing:
Costs of sales and services, exclusive of depreciation and amortization		18,906		63,589
INAP INTL
Revenues:
Total revenues	$ 17,294	15,937	$ 52,314	48,138
Cost of sales and services, customer support and sales and marketing:
Costs of sales and services, exclusive of depreciation and amortization		6,039		16,830
As Previously Reported | INAP COLO
Revenues:
Total revenues		51,344		156,727
Cost of sales and services, customer support and sales and marketing:
Costs of sales and services, exclusive of depreciation and amortization		20,785		67,661
As Previously Reported | INAP CLOUD
Revenues:
Total revenues		17,563		53,955
Cost of sales and services, customer support and sales and marketing:
Costs of sales and services, exclusive of depreciation and amortization		4,160		12,758
As Previously Reported | INAP US
Revenues:
Total revenues		0		0
Cost of sales and services, customer support and sales and marketing:
Costs of sales and services, exclusive of depreciation and amortization		0		0
As Previously Reported | INAP INTL
Revenues:
Total revenues		0		0
Cost of sales and services, customer support and sales and marketing:
Costs of sales and services, exclusive of depreciation and amortization		0		0
Reclassification | INAP COLO
Revenues:
Total revenues		(51,344)		(156,727)
Cost of sales and services, customer support and sales and marketing:
Costs of sales and services, exclusive of depreciation and amortization		(20,785)		(67,661)
Reclassification | INAP CLOUD
Revenues:
Total revenues		(17,563)		(53,955)
Cost of sales and services, customer support and sales and marketing:
Costs of sales and services, exclusive of depreciation and amortization		(4,160)		(12,758)
Reclassification | INAP US
Revenues:
Total revenues		52,970		162,544
Cost of sales and services, customer support and sales and marketing:
Costs of sales and services, exclusive of depreciation and amortization		18,906		63,589
Reclassification | INAP INTL
Revenues:
Total revenues		15,937		48,138
Cost of sales and services, customer support and sales and marketing:
Costs of sales and services, exclusive of depreciation and amortization		$ 6,039		$ 16,830

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, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues:
Total revenues	$ 82,972	$ 68,907	$ 239,135	$ 210,682
Cost of sales and services, customer support and sales and marketing:
Total costs of sales and services, customer support and sales and marketing	47,320	39,474	135,735	125,171
Segment profit:
Total segment profit	35,652	29,433	103,400	85,511
Exit activities, restructuring and impairments	2,347	745	3,140	6,396
Other operating expenses, including sales, general and administrative and depreciation and amortization expenses	31,131	27,956	95,079	79,944
Income from operations	2,174	732	5,181	(829)
Non-operating expenses	17,093	12,496	47,791	38,066
Loss before income taxes, non-controlling interest and equity in earnings of equity-method investment	(14,919)	(11,764)	(42,610)	(38,895)
INAP US
Revenues:
Total revenues	65,678	52,970	186,821	162,544
Cost of sales and services, customer support and sales and marketing:
Total costs of sales and services, customer support and sales and marketing	35,842	29,600	101,252	97,832
Segment profit:
Total segment profit	29,836	23,370	85,569	64,712
INAP INTL
Revenues:
Total revenues	17,294	15,937	52,314	48,138
Cost of sales and services, customer support and sales and marketing:
Total costs of sales and services, customer support and sales and marketing	11,478	9,874	34,483	27,339
Segment profit:
Total segment profit	$ 5,816	$ 6,063	$ 17,831	$ 20,799

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		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Earnings Per Share [Abstract]
Net loss	$ (15,081)	$ (10,863)	$ (43,014)	$ (38,377)
Less net income attributable to non-controlling interest	25	32	75	32
Net loss attributable to INAP stockholders	$ (15,106)	$ (10,895)	$ (43,089)	$ (38,409)
Weighted average shares outstanding, basic and diluted (in shares)	20,206	19,929	19,968	18,645
Net loss per share, basic and diluted (in dollars per share)	$ (0.75)	$ (0.56)	$ (2.16)	$ (2.04)
Anti-dilutive securities excluded from diluted net loss per share calculation for stock-based compensation plans (in shares)	1,065	1,460	1,065	1,460

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Subsequent Event $ / shares in Units, $ in Millions	Oct. 23, 2018USD ($)$ / sharesshares
Public Offering
Subsequent Event [Line Items]
Number of shares issued in public offering (in shares)	4,210,527
Price per share on shares issued in public offering (in dollars per share) | $ / shares	$ 9.50
Proceeds from public offering of common stock | $	$ 36.6
Over-Allotment Option
Subsequent Event [Line Items]
Number of shares issued in public offering (in shares)	631,579
Option to purchase additional shares, period	30 days