Inteliquent (IQNT) 10-Q 7 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 07, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Trading Symbol	IQNT
Entity Registrant Name	INTELIQUENT, INC.
Entity Central Index Key	1,292,653
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		34,424,115

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 120,467	$ 109,050
Receivables — net of allowance of $2,433 and $2,365, respectively	54,762	39,589
Prepaid expenses	3,613	9,376
Other current assets	591	219
Total current assets	179,433	158,234
Property and equipment—net	50,815	37,336
Goodwill	1,715
Restricted cash	2,820	345
Deferred income taxes-noncurrent	768	1,059
Other assets	2,974	1,075
Total assets	238,525	198,049
Current liabilities:
Accounts payable	3,715	424
Accrued liabilities:
Taxes payable	2,578	624
Network and facilities	25,954	10,984
Rent	2,047	1,969
Payroll and related items	3,573	2,918
Other	2,682	1,297
Total current liabilities	40,549	18,216
Shareholders’ equity:
Preferred stock—par value of $.001; 50,000 authorized shares; no shares issued and outstanding at September 30, 2016 and December 31, 2015
Common stock—par value of $.001; 150,000 authorized shares; 37,507 and 34,424 shares issued and outstanding at September 30, 2016, respectively, and 37,242 and 33,891 shares issued and outstanding at December 31, 2015, respectively	37	34
Less treasury stock, at cost; 3,083 shares at September 30, 2016 and 3,351 shares at December 31, 2015	(50,106)	(51,668)
Additional paid-in capital	230,658	225,474
Retained earnings	17,387	5,993
Total shareholders’ equity	197,976	179,833
Total liabilities and shareholders' equity	$ 238,525	$ 198,049

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Statement Of Financial Position [Abstract]
Receivables, allowance	$ 2,433	$ 2,365
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, authorized shares	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized shares	150,000,000	150,000,000
Common stock, shares issued	37,507,000	37,242,000
Common stock, shares outstanding	34,424,000	33,891,000
Treasury stock, shares, at cost	3,083,000	3,351,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Revenue	$ 99,404	$ 63,716	$ 272,485	$ 171,656
Operating expense:
Network and facilities expense (excluding depreciation and amortization)	65,794	34,858	174,606	78,918
Operations	9,660	7,955	27,473	22,966
Sales and marketing	1,370	690	3,288	2,098
General and administrative	4,285	4,648	12,874	14,145
Depreciation and amortization	3,826	2,894	10,656	8,137
Gain on sale of property and equipment		(4)	(5)	(120)
Total operating expense	84,935	51,041	228,892	126,144
Income from operations	14,469	12,675	43,593	45,512
Other (income) expense:
Interest (income) expense	(69)	9	(210)	36
Other income				(1,290)
Total other (income) expense	(69)	9	(210)	(1,254)
Income before provision for income taxes	14,538	12,666	43,803	46,766
Provision for income taxes	5,165	4,399	16,319	17,317
Net income	$ 9,373	$ 8,267	$ 27,484	$ 29,449
Earnings per share:
Basic	$ 0.27	$ 0.25	$ 0.80	$ 0.88
Diluted	$ 0.27	$ 0.24	$ 0.80	$ 0.86
Weighted average number of shares outstanding:
Basic	34,409	33,620	34,179	33,562
Diluted	34,584	34,138	34,387	34,057
Dividends declared per share:	$ 0.16	$ 0.15	$ 0.47	$ 0.45

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating
Net income	$ 27,484	$ 29,449
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	10,656	8,137
Deferred income taxes	(924)	(1,349)
Gain on sale of property and equipment	(5)	(120)
Gain on settlement of Tinet escrow		(1,290)
Non-cash share-based compensation	2,938	4,049
Provision for uncollectible accounts	62	211
Excess tax benefit associated with share-based payments	(847)	(1,299)
Changes in assets and liabilities:
Receivables	(15,235)	(6,203)
Other current assets	5,391	(2,619)
Other noncurrent assets	250	(140)
Accounts payable	339	331
Accrued liabilities	18,970	12,924
Net cash provided by operating activities	49,079	42,081
Investing
Purchase of property and equipment	(17,284)	(20,943)
Proceeds from sale of property and equipment	5	173
Cash used in acquisitions	(3,650)
Cash paid for other investments	(1,829)
Issuance of note receivable	(320)
Increase in restricted cash	(2,475)
Net cash used for investing activities	(25,553)	(20,770)
Financing
Proceeds from the exercise of stock options	3,754	869
Restricted shares withheld to cover employee taxes paid	(620)	(1,034)
Dividends paid	(16,090)	(15,105)
Excess tax benefit associated with share-based payments	847	1,299
Net cash used for financing activities	(12,109)	(13,971)
Net increase in cash and cash equivalents	11,417	7,340
Cash and cash equivalents — Beginning	109,050	104,737
Cash and cash equivalents — Ending	120,467	112,077
Supplemental disclosure of cash flow information:
Cash paid for taxes	8,655	20,058
Supplemental disclosure of noncash flow items:
Investing activity — Accrued purchases of property and equipment	2,971	$ 1,002
Investing activity — Accrued acquisition contingent consideration	$ 750

DESCRIPTION OF THE BUSINESS

DESCRIPTION OF THE BUSINESS	9 Months Ended
	Sep. 30, 2016
Organization Consolidation And Presentation Of Financial Statements [Abstract]
DESCRIPTION OF THE BUSINESS	1. DESCRIPTION OF THE BUSINESS Organization — Inteliquent, Inc. (the “Company”) provides voice telecommunications services primarily on a wholesale basis. The Company offers these services using an all-IP network, which enables the Company to deliver global connectivity for a variety of media, including voice and, historically, data and video. The Company’s solutions enable telecommunication service providers to deliver voice telecommunication traffic or other services where they do not have their own network or elect not to use their own network. These solutions are sometimes called “interconnection” or “off-net” services. The Company generally provides its solutions to traditional certificated telecommunications carriers and next-generation telecommunication service providers. During the three months ended March 31, 2015, the Company received a $1.3 million payment from an escrow fund that had been established in connection with the Company’s purchase of the Tinet global data business in 2010. The Company received this payment as a result of a settlement with the sellers of Tinet. The settlement related to a dispute regarding the Company’s claim that certain tax liabilities were not properly represented to the Company at the time the transaction closed. This payment was recorded as other income in the company’s condensed consolidated statements of income for the three months ended March 31, 2015 and the nine months ended September 30, 2015, and as an operating cash inflow in the condensed consolidated statement of cash flows for the nine months ended September 30, 2015. On November 2, 2016, the Company, Onvoy, LLC, a Minnesota limited liability company and a portfolio company of GTCR LLC (“Onvoy”), and Onvoy Igloo Merger Sub, Inc., a Delaware corporation (“Merger Sub”), entered into an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which Merger Sub will merge with and into the Company on the terms and subject to the conditions set forth in the Merger Agreement (the “Merger”), with the Company surviving the Merger as a wholly-owned subsidiary of Onvoy. At the effective time of the Merger (the “Effective Time”), on the terms and subject to the conditions set forth in the Merger Agreement, each issued and outstanding share of the Company’s common stock outstanding immediately prior to the Effective Time, other than any Excluded Shares and Dissenting Shares (each as defined in the Merger Agreement), will be converted automatically into the right to receive $23.00 per share in cash without interest (the “Merger Consideration”). The completion of the Merger is subject to approval of the Company’s stockholders and certain regulatory approvals and other customary closing conditions. The completion of the Merger is expected to occur during the first half of 2017.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation — The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The Company entered into a non-material investment in a privately held entity during the third quarter ended September 30, 2016 that has been determined to be a variable interest entity (“VIE”). However, the Company evaluated qualitative factors regarding the VIE and determined that the Company is not the primary beneficiary as the Company does not have the power to direct the activities that most significantly impact the entity’s economic performance. As a result, the VIE has been accounted for as an equity method investment, as the Company has the ability to exercise significant influence over, but not control, over the VIE. This investment is classified as an other long term asset on the balance sheet. The Company entered into an unrelated investment during the third quarter ended September 30, 2016 in a privately held entity. The Company does not have the ability to exercise significant influence over this entity and thus it is accounted for as a cost method investment. This investment is also classified as an other long term asset on the balance sheet. Interim Condensed Consolidated Financial Statements — The accompanying condensed consolidated balance sheets as of September 30, 2016 and December 31, 2015, the condensed consolidated statements of income for the three and nine months ended September 30, 2016 and 2015, and the condensed consolidated statements of cash flows for the nine months ended September 30, 2016 and 2015 are unaudited. The condensed consolidated balance sheet data as of December 31, 2015 was derived from the audited consolidated financial statements which are included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) pursuant to the rules and regulations of the Securities and Exchange Commission applicable to interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the unaudited interim condensed consolidated financial statements as of September 30, 2016 and for the three and nine months ended September 30, 2016 and 2015 have been prepared on the same basis as the audited consolidated statements and reflect all adjustments, which are normal recurring adjustments, necessary for the fair presentation of its statement of financial position, results of operations and cash flows. The results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of the operating results for any subsequent quarter, for the full fiscal year or any future periods. Cash and Cash Equivalents — The Company considers all highly liquid investments with an original maturity of 90 days or less to be cash and cash equivalents. The carrying values of the Company’s cash and cash equivalents approximate fair value. At September 30, 2016, the Company had $30.3 million of cash in banks and $90.2 million among four government and agency money market funds. At December 31, 2015, the Company had $22.2 million of cash in banks and $86.9 million among three money market funds. Fair Value Measurements — Certain assets and liabilities are required to be recorded at fair value on a recurring basis. Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Assets measured at fair value on a nonrecurring basis include long-lived assets held and used. The fair value of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their carrying values. The three-tier fair value hierarchy, which prioritizes valuation methodologies based on the reliability of the inputs, is: Level 1— Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2— Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3— Valuations based on unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants. Accounts Receivable and Allowance for Doubtful Accounts — Accounts receivable consist of trade receivables recorded upon recognition of revenue from sales of voice services, reduced by reserves for estimated bad debts. Trade accounts receivable are generally recorded at the invoiced amount and do not bear interest. Credit is extended based on evaluation of the customer’s financial condition. The Company makes judgments as to its ability to collect outstanding receivables and provides allowances for a portion of receivables when collection becomes doubtful. The specific identification method is applied to outstanding invoices to determine this provision. Our allowance for doubtful accounts was $2.4 million at both September 30, 2016 and December 31, 2015. Property and Equipment — Property and equipment is recorded at cost. These values are depreciated over the estimated useful lives of the individual assets using the straight-line method. Any gains and losses from the disposition of property and equipment are included in operations as incurred. The estimated useful life for network equipment and tools and test equipment is five years. The estimated useful life for computer equipment, computer software and furniture and fixtures is three years. Leasehold improvements are amortized on a straight-line basis over an estimated useful life of five years or the life of the lease, whichever is less. As discussed in further detail below, the impairment of long-lived assets is evaluated when events or changes in circumstances indicate that a potential impairment has occurred. Long-lived Assets — The carrying value of long-lived assets, including property and equipment, are reviewed whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Impairment of assets with definite lives is generally determined by comparing projected undiscounted cash flows to be generated by the asset, or appropriate grouping of assets, to its carrying value. If an impairment is identified, a loss is recorded equal to the excess of the asset’s net book value over its fair value. The fair value becomes the new cost basis of the asset. Determining the extent of an impairment, if any, typically requires various estimates and assumptions including using management’s judgment, cash flows directly attributable to the asset, the useful life of the asset and residual value, if any. In addition, the remaining useful life of the impaired asset is revised, if necessary. There were no property and equipment or intangible asset impairment charges in 2015 or during the nine months ended September 30, 2016. Goodwill — Goodwill represents the excess of the purchase price of an acquired business over the amounts assigned to assets and liabilities assumed in the business combination. Goodwill is not amortized but is tested for impairment at least annually during the fourth quarter of each year, or more frequent ly if indicators of impairment arise . Goodwill is tested for impairment at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment, referred to as a component. The Company has not identified any components within its single operating segment and, hence, has a single reporting unit for purposes of the goodwill impairment analysis. Revenue Recognition — The Company generates revenue from sales of its voice services. The Company maintains tariffs and executed service agreements with each of its customers in which specific fees and rates are determined. One customer agreement contains multiple voice service elements and is accounted for as a multiple-element arrangement under Accounting Standards Codification (“ASC”) topic 605-25, Revenue Recognition-Multiple Element Arrangements. Following the requirements of ASC 605-25, the Company evaluated the multiple-element arrangement to determine which deliverables represented separate units of accounting and then allocated consideration to each unit of accounting based on their selling prices using relative fair values. Some of these deliverables are treated as non-monetary transactions which are also recorded at fair value. Voice revenue is recorded each month on an accrual basis, when collection is probable, based upon minutes of traffic switched by the Company’s network by each customer, which is referred to as minutes of use. Earnings per Share — Basic earnings per share is computed based on the weighted average number of common shares and participating securities outstanding. Diluted earnings per share is computed based on the weighted average number of common shares and participating securities outstanding adjusted by the number of additional shares that would have been outstanding during the period had the potentially dilutive securities been issued. The following table presents a reconciliation of the numerators and denominators of basic and diluted earnings per share of common stock: Three Months Ended Nine Months Ended September 30, September 30, (In thousands, except per share amounts) 2016 2015 2016 2015 Numerator: Net income $ 9,373 $ 8,267 $ 27,484 $ 29,449 Denominator: Weighted average common shares outstanding 34,409 33,620 34,179 33,562 Effect of dilutive securities: Stock options and performance stock units 175 518 208 495 Denominator for diluted earnings per share 34,584 34,138 34,387 34,057 Earnings per share Basic - as reported $ 0.27 $ 0.25 $ 0.80 $ 0.88 Diluted - as reported $ 0.27 $ 0.24 $ 0.80 $ 0.86 Certain awards were not included in the computation of diluted earnings per share because the effect would have been antidilutive. Outstanding share-based awards of 0.1 million were outstanding during both the three and nine months ended September 30, 2016, while 0.7 million were outstanding during both the three and nine months ended September 30, 2015, but were not included in the computation of diluted earnings per share because the effect would have been antidilutive. The undistributed earnings allocable to participating securities were $0.1 million for both the three and nine months ended September 30, 2016, respectively. Accounting for Stock-Based Compensation — The Company records stock-based compensation expense related to stock options, non-vested shares and performance stock units based on fair value. The amount of non-cash share-based expense recorded in the three months ended September 30, 2016 and 2015 was $0.8 million and $1.3 million, respectively. The amount of non-cash share-based expense recorded in the nine months ended September 30, 2016 and 2015 was $2.9 million and $4.0 million, respectively. Refer to Note 6, “Stock Options, Non-Vested Shares and Performance Stock Units.” The fair value of stock options is determined using the Black-Scholes valuation model. This model takes into account the exercise price of the stock option, the fair value of the common stock underlying the stock option as measured on the date of grant and an estimation of the volatility of the common stock underlying the stock option. Such value is recognized as expense over the service period, net of estimated forfeitures, using the straight line method. The fair value of non-vested shares is measured based upon the quoted closing market price for the stock on the date of grant. The compensation cost is recognized on a straight-line basis over the vesting period. The fair value of each performance stock unit granted is estimated using a Monte Carlo pricing model. The Monte Carlo simulation model is based on a discounted cash flow approach, with the simulation of a large number of possible stock price outcomes for the Company’s stock and the applicable index. termination of an individual’s service prior to fulfilling the requisite service period will result in forfeiture of units and compensation cost will be reversed. The estimation of stock awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from the Company’s current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised. The Company considers many factors when estimating expected forfeitures, including types of awards, employee class and historical experience. Actual results, and future changes in estimates, may differ from the Company’s current estimates. Stock Retirement — During the quarter ended June 30, 2016, the Company retired certain shares previously held in treasury. The stock repurchases have been accounted for under the cost method whereby the entire cost of the repurchased and retired shares, net of par value, were recorded to additional paid-in capital. Recent Accounting Pronouncements — In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The ASU is based on the principle that an entity should recognize revenue to depict the transfer of 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 ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. Entities have the option of using either a full retrospective or a modified retrospective approach for the adoption of the new standard. The ASU is effective for annual reporting periods beginning after December 15, 2017 and early adoption as of December 15, 2016 is permitted. The Company is currently assessing the impact of this standard on the Company’s consolidated financial statements and disclosures . In May 2015, the FASB issued ASU No. 2015-08, Business Combinations (Topic 805): Pushdown Accounting - Amendment to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115 . This ASU was issued to amend various SEC paragraphs pursuant to the issuance of Staff Accounting Bulletin No. 115. This ASU is effective for annual periods beginning after December 15, 2015 and has not had a significant impact on the Company’s consolidated financial statements and disclosures . In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments, which eliminates the requirement to retrospectively account for adjustments made to provisional amounts recognized in a business combination. The new guidance requires the cumulative impact of measurement period adjustments, including the impact on prior periods, to be recognized in the reporting period in which the adjustment is recorded. This ASU is effective for annual periods beginning after December 15, 2015 and has not had a significant impact on the Company’s consolidated financial statements and disclosures . In March 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), The new guidance requires lessees to recognize leases on the balance sheet as assets and liabilities to reflect the rights and obligations created by those leases. Leases will continue to be classified as either financing or operating, with classification affecting the recognition, measurement and presentation of expenses and cash flows arising from the leases. Additional qualitative and quantitative disclosures will be required. The ASU is effective for annual reporting periods beginning after December 15, 2018 and early adoption is permitted. The Company is currently assessing the impact of this standard on the Company’s consolidated financial statements and disclosures . In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, effective for annual periods beginning after December 15, 2016, and early adoption is permitted. consolidated financial statements and disclosures In April, 2016 the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606) Identifying Performance Obligations and Licensing May, 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606) Narrow-Scope Improvements and Practical Expedients, consolidated financial statements and disclosures In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which clarifies or adds guidance on the classification of several cash flow issues which currently have diversity in practice. The ASU is effective for annual periods beginning after December 15, 2017, and early adoption is permitted. The Company early adopted this ASU for the third quarter ended September 30, 2016 and found it did not have an impact on its consolidated financial statements and disclosures.

BUSINESS COMBINATION

BUSINESS COMBINATION	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
BUSINESS COMBINATION	3. BUSINESS COMBINATION On May 13, 2016, the Company acquired all of the outstanding equity of Shopety, Inc. d/b/a Better Voice (“Shopety”), a developer of communications software and next-generation switching technologies. The acquired technologies expand the capabilities and addressable market of the Company’s next-generation “Omni IQ sm (dollars in thousands) Property and equipment $ 3,900 Goodwill 1,715 Net deferred income tax liability (1,215 ) Total consideration $ 4,400 The fair values of assets acquired and liabilities assumed were based on a preliminary valuation and the estimates and assumptions are subject to change within the measurement period of one year from the acquisition date. Subsequently, a $16 thousand adjustment to the net deferred tax liability and goodwill was recorded in the three months ended September 30, 2016. Any further changes to the preliminary estimates during the measurement period will be recorded as adjustments to those assets and liabilities and residual amounts will be allocated to goodwill. Goodwill is not deductible for tax purposes. The final purchase price allocation is dependent upon the finalization of tax information still in progress.

CONTINGENCIES

CONTINGENCIES	9 Months Ended
	Sep. 30, 2016
Commitments And Contingencies Disclosure [Abstract]
CONTINGENCIES	4. CONTINGENCIES Legal Proceedings From time to time, the Company is a party to legal proceedings arising in the normal course of its business. Aside from the matters discussed below, the Company does not believe that it is a party to any pending legal action that could reasonably be expected to have a material effect on its business or operating results, financial position or cash flows. Free Conferencing Corporation On July 5, 2016, the Company commenced an action against Free Conferencing Corporation, individually and doing business as HD Tandem; HD Tandem and Wide Voice, LLC (collectively the “Defendants”), in the United States District Court for the Northern District of Illinois. The Company asserts claims under the Racketeer Influenced and Corrupt Organizations Act (“RICO”) and various state laws, asserting that the Defendants are improperly charging the Company for telecommunications services and seeking recovery of access fees and other telecommunications charges paid to the Defendants in connection with the termination of certain long distance traffic ( Inteliquent, Inc. v. Free Conferencing Corporation individually and d/b/a HD Tandem; HD Tandem; Wide Voice, LLC; and John Does 1-10 The Company filed a first amended complaint on July 25, 2016. The Defendants filed an answer, counterclaims, and a motion to dismiss the Company’s amended complaint on September 6, 2016. In response to the motion to dismiss, the Company filed a second amended complaint on October 6, 2016. In addition to the allegations described above, the second amended complaint includes allegations seeking damages arising from the Defendants’ suspension of services to the Company in July 2016. Free Conferencing Corporation and HD Tandem filed an answer and counterclaims, and Wide Voice LLC filed a motion to dismiss the second amended complaint, on October 27, 2016. The Company’s response to the motion to dismiss and answer to the counterclaims are due on November 29, 2016. A hearing on the motion to dismiss is scheduled for January 5, 2017. Since the filing of the lawsuit, the Company has not paid a material portion of the invoices which it asserts are improperly billed. There can be no assurance regarding how, whether and when this matter will be resolved and whether the ultimate disposition will have a material effect on the Company’s condensed consolidated financial statements. On August 1, 2016, Free Conferencing Corporation (“Free Conferencing”) filed a complaint against the Company in the United States District Court for the Northern District of Illinois: Free Conferencing Corp. v. Inteliquent, Case No. 1:16-7768 OTT Access Charge Dispute On November 18, 2011, the Federal Communications Commission (the “FCC”) issued an order establishing, among other things, an intercarrier compensation framework for the exchange of switched access traffic. In its order, the FCC attempted to clarify the circumstances under which local exchange carriers are eligible to receive access charges when they deliver access traffic in partnership with entities that utilize Voice over Internet Protocol, or (“VoIP”) technology. The FCC determined that, under certain circumstances, local exchange carriers are eligible to receive access charges when delivering access traffic in partnership with VoIP providers. The FCC has referred to its determination on this issue as the “VoIP Symmetry Rule.” Subsequent to the FCC’s November 2011 order, further disputes developed within the industry concerning the interpretation of the VoIP Symmetry Rule. A number of long distance carriers took the position that, notwithstanding the VoIP Symmetry Rule, local exchange carriers were still not eligible to receive access charges when delivering access traffic in partnership with VoIP providers that deliver service using over-the-top (“OTT”) technology. On February 11, 2015, the FCC released an order clarifying that, pursuant to its VoIP Symmetry Rule, local exchange carriers are entitled to receive access charges when delivering access traffic in partnership with VoIP providers that utilize OTT technology under certain circumstances. This order has been appealed to a federal appellate court. The Company has disputes with certain long distance carriers regarding the payment of access charges to the Company relating to the origination and termination of traffic to VoIP providers that utilize OTT technology. The Company has reached a settlement with one long distance carrier, pursuant to which the long distance carrier has paid the Company a portion of the access charges in dispute, and will pay access charges at an agreed rate for traffic delivered through the end of 2016. The settlement agreement does not address access charge payments the long distance carrier will make for traffic delivered after the end of 2016. The Company has made judgments as to its ability to collect based on known facts and circumstances and has only recorded revenue when collection has been deemed reasonably assured.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	5. INCOME TAXES Income taxes were computed using an effective tax rate, which is subject to ongoing review and evaluation by the Company. The Company’s estimated effective income tax rate was 35.5% and 37.3% for the three and nine months ended September 30, 2016, respectively, compared to 34.7% and 37.0% for the three and nine months ended September 30, 2015, respectively. The Company’s estimated effective income tax rate varies from the statutory federal income tax rate of 35% primarily due to the impact of state income taxes. The Company has recorded a valuation allowance against the capital loss created by the sale of its global data business on April 30, 2013 and the Illinois EDGE Credit. The Company believes it is more likely than not that these assets will not be fully realized in the foreseeable future. The realization of deferred tax assets is dependent upon whether the Company can generate future taxable income in the appropriate character and jurisdiction to utilize the assets. The amount of the deferred tax assets considered realizable is subject to adjustment in future periods. The Company files United States federal, state and local income tax returns in the jurisdictions in which it is required to do so. With few exceptions, the Company is no longer subject to an audit of its federal tax filings for years before 2014, and is no longer subject to audits of its state tax filings for years before 2013. The Internal Revenue Service (“IRS”) concluded an examination of the Company’s 2013 federal income tax return during the quarter ended September 30, 2016, which resulted in no material adjustments to the income tax return.

STOCK OPTIONS, NON-VESTED SHARE

STOCK OPTIONS, NON-VESTED SHARES AND PERFORMANCE STOCK UNITS	9 Months Ended
	Sep. 30, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
STOCK OPTIONS, NON-VESTED SHARES AND PERFORMANCE STOCK UNITS	6. STOCK OPTIONS, NON-VESTED SHARES AND PERFORMANCE STOCK UNITS The Company established the 2003 Stock Option and Stock Incentive Plan (the “2003 Plan”), which provided for issuance of up to 4.7 million options, non-vested shares, and performance stock units to directors, employees and other individuals (whether or not employees) who render services to the Company. In 2007, the Company adopted the 2007 Long-Term Equity Incentive Plan (the “2007 Plan”) and ceased awarding equity grants under the 2003 Plan. As of September 30, 2016, the Company had granted a total of 1.1 million options, 0.4 million non-vested shares, and 0.1 million performance stock units that remained outstanding under the 2007 Plan. Awards for 2.5 million shares, representing approximately 7.3% of the Company’s outstanding common stock as of September 30, 2016, remained available for additional grants under the 2007 Plan. Options All options granted under the 2003 Plan and the 2007 Plan have an exercise price equal to the market value of the underlying common stock on the date of the grant. During both the three months ended September 30, 2016 and September 30, 2015, the Company did not grant any options. During the nine months ended September 30, 2016, the Company granted 0.1 million options at a weighted average exercise price of $16.70. Additionally, during the nine months ended September 30, 2015, the Company granted 0.1 million options at a weighted average exercise price of $17.02. The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model. For the nine months ended September 30, 2016 and September 30, 2015, fair value of stock options were measured using the following assumptions: September 30, September 30, 2016 2015 Expected life 7.0 years 7.0 years Risk-free interest rate 1.5% 1.9% Expected dividends 3.6% 3.9% Volatility 46.1% 49.6% The weighted average fair value of options granted, as determined by using the Black-Scholes valuation model, during the nine months ended September 30, 2016 and 2015 was $5.40 and $6.03, respectively. The total grant date fair value of options that vested during the nine months ended September 30, 2016 and 2015 was approximately $0.4 million and $0.6 million, respectively. The total intrinsic value (market value of stock option less option exercise price) of stock options exercised was $3.3 million and $2.7 million during the nine months ended September 30, 2016 and 2015, respectively. A summary of the Company’s stock option activity and related information for the nine months ended September 30, 2016 is as follows: Weighted Aggregate Weighted Average Intrinsic Average Shares Exercise Value Remaining (000) Price ($000) Term (yrs) Options outstanding — January 1, 2016 1,430 $ 15.10 Granted 95 16.70 Exercised (362 ) 10.30 Cancelled (39 ) 18.91 Options outstanding — September 30, 2016 1,124 $ 16.64 $ 2,459 4.14 Options Vested and expected to vest — September 30, 2016 1,117 $ 16.64 $ 2,455 4.11 Options Exercisable — September 30, 2016 876 $ 17.82 $ 1,409 3.07 The unrecognized compensation cost associated with options outstanding at September 30, 2016 and December 31, 2015 was $0.9 million and $0.8 million, respectively. The weighted average remaining term over which the compensation will be recorded is 2.6 years and 2.7 years as of September 30, 2016 and December 31, 2015, respectively. Non-vested Shares During the three and nine months ended September 30, 2016, the Company granted zero and 0.2 million non-vested shares pursuant to the 2007 Plan. During the three and nine months ended September 30, 2015, the Company also granted zero and 0.2 million non-vested shares pursuant to the 2007 plan. The shares typically vest over a period ranging from six months to four years. The fair value of the non-vested shares is determined using the Company’s closing stock price on the grant date. Compensation cost, measured using the grant date fair value, is recognized over the requisite service period on a straight-line basis. A summary of the Company’s non-vested share activity and related information for the nine months ended September 30, 2016 is as follows: Weighted Aggregate Average Intrinsic Shares Grant Date Value (000) Fair Value ($000) Non-vested shares outstanding — January 1, 2016 334 $ 13.77 Granted 213 16.65 Vested (112 ) 14.28 Cancelled (38 ) 11.63 Non-vested shares outstanding — September 30, 2016 397 $ 15.37 $ 6,408 Non-vested shares vested and expected to vest —September 30, 2016 386 $ 15.34 $ 6,230 The aggregate intrinsic value represents the total pre-tax intrinsic value based on the Company’s closing stock price of $16.14 on September 30, 2016. The amount changes based upon the fair market value of the Company’s common stock. The unrecognized compensation cost associated with non-vested shares was $4.3 million and $3.0 million at September 30, 2016 and December 31, 2015, respectively. The weighted average remaining term that the compensation will be recorded was 2.4 years and 2.3 years as of September 30, 2016 and December 31, 2015, respectively. Performance Stock Units During both the three months ended September 30, 2016 and September 30, 2015, the Company awarded zero performance stock units, respectively, to members of the Company’s executive management team. During both the nine months ended September 30, 2016 and September 30, 2015, the Company awarded 0.1 million performance stock units, to members of the Company’s executive management team. These performance stock units represent a target number of shares (“Target Award”) of the Company’s common stock that the recipient would receive upon the Company’s attainment of the applicable performance goal. These performance stock units were first issued in three tranches under the 2007 Plan with performance being determined based on total shareholder return (“TSR”) during an 18-month, two- and three-year performance period for each of the three tranches, respectively. The performance stock units issued in 2016 are measured on a three year performance period only. At the end of each performance period, the performance stock units will be distributed (to the extent earned and vested) in shares of the Company’s common stock based upon the level of achievement of the Company’s TSR performance targets set for the performance periods. Awards are payable on a graduated basis based on thresholds that measure the Company's performance relative to peers that comprise the applicable index on which each years' awards are measured. Awards can be paid up to 200% of the Target Award or forfeited with no payout if performance is below a minimum established performance threshold. In the event the participant’s employment is terminated without cause and more than half of the performance period has passed, the number of performance stock units issued shall be adjusted proportionately to the number of days of service rendered in the performance period over the total performance period. Each vested performance stock unit will be settled by delivery of common stock no later than March 15th of the calendar year following the calendar year in which the performance stock unit becomes vested. A summary of the Company’s performance stock unit activity and related information for the nine months ended September 30, 2016 is as follows: Performance Weighted Stock Average Units Grant Date (000) Fair Value Performance stock units outstanding — January 1, 2016 99 $ 23.19 Granted 56 23.22 Vested — — Cancelled (23 ) 22.08 Performance stock units outstanding — September 30, 2016 132 $ 23.39 The unrecognized compensation cost associated with performance stock units outstanding at both September 30, 2016 and December 31, 2015 was $1.6 million. The weighted average remaining term that the compensation will be recorded is 1.8 years and 1.7 years as of September 30, 2016 and December 31, 2015, respectively.

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENT	7. FAIR VALUE MEASUREMENT The Company’s money market funds are recognized and disclosed at fair value in the financial statements on a recurring basis. Fair value is defined as the price that would be received to sell an asset in an orderly transaction between market participants as of the measurement date. Fair value is measured using the fair value hierarchy and related valuation methodologies as defined in the authoritative literature. This guidance specifies a hierarchy of valuation techniques based on whether the inputs to each measurement are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions about current market conditions. The prescribed fair value hierarchy and related valuation methodologies are as follows: Level 1 - Quoted prices for identical instruments in active markets. Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations, in which all significant inputs are observable in active markets. Level 3 - Valuations derived from valuation techniques, in which one or more significant inputs are unobservable. The fair value of the Company’s financial assets and liabilities by level in the fair value hierarchy as of September 30, 2016 and December 31, 2015 was as follows: September 30, 2016 Level 1 Level 2 Level 3 Total Assets: Money Market Funds $ 90,170 $ — $ — $ 90,170 Liabilities: Contingent Consideration $ — $ — $ 750 $ 750 December 31, 2015 Level 1 Level 2 Level 3 Total Assets: Money Market Funds $ 86,871 $ — $ — $ 86,871 Valuation methodology Level 1—Quoted market prices in active markets are available for investments in money market funds. As such, these investments are classified within Level 1. Level 3— The estimated fair value of the Level 3 contingent consideration liability is based on a weighted probability assessment of achieving certain deliverables, related to the acquisition of Shopety, Inc., which will be determined within one year from the acquisition date. The following table presents the Company's reconciliation of the changes in the fair value of Level 3 assets in the fair value hierarchy for the three months and nine months ended September 30, 2016, respectively: Contingent Consideration Contingent Consideration June 30, 2016 $ 750 December 31, 2015 $ — Issuances/purchases — Issuances/purchases 750 Realized and unrealized gains/(losses) — Realized and unrealized gains/(losses) — Transfers in/(out) — Transfers in/(out) — Settlements/sales — Settlements/sales — Three months ended September 30, 2016 $ 750 Nine months ended September 30, 2016 $ 750 During October 2016, the Shopety, Inc. deliverables subject to the earn-out were met. As a result, the level 3 contingent consideration was paid out in full.

SEGMENT INFORMATION

SEGMENT INFORMATION	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
SEGMENT INFORMATION	8. SEGMENT INFORMATION Segment reporting establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is the Chief Executive Officer. The Chief Executive Officer reviews financial information presented on a consolidated basis. The Company operates in one industry segment which is to provide voice interconnection services via the Company’s telecommunications network to fulfill customer agreements. Therefore, the Company has concluded that it has one operating segment.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	9. SUBSEQUENT EVENTS As previously announced, on November 2, 2016, the Company, Onvoy, and Merger Sub entered into the Merger Agreement, pursuant to which Merger Sub will merge with and into the Company on the terms and subject to the conditions set forth in the Merger Agreement, with the Company surviving the Merger as a wholly-owned subsidiary of Onvoy. At the Effective Time, on the terms and subject to the conditions set forth in the Merger Agreement, each issued and outstanding share of the Company’s common stock outstanding immediately prior to the Effective Time, other than any Excluded Shares and Dissenting Shares (each as defined in the Merger Agreement), will be converted automatically into the right to receive the Merger Consideration. The completion of the Merger is subject to approval of the Company’s stockholders and certain regulatory approvals and other customary closing conditions. The completion of the Merger is expected to occur during the first half of 2017. Each party to the Merger Agreement retains certain financial termination rights should the Merger Agreement be terminated under certain circumstances.

SUMMARY OF SIGNIFICANT ACCOUN15

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation — The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The Company entered into a non-material investment in a privately held entity during the third quarter ended September 30, 2016 that has been determined to be a variable interest entity (“VIE”). However, the Company evaluated qualitative factors regarding the VIE and determined that the Company is not the primary beneficiary as the Company does not have the power to direct the activities that most significantly impact the entity’s economic performance. As a result, the VIE has been accounted for as an equity method investment, as the Company has the ability to exercise significant influence over, but not control, over the VIE. This investment is classified as an other long term asset on the balance sheet. The Company entered into an unrelated investment during the third quarter ended September 30, 2016 in a privately held entity. The Company does not have the ability to exercise significant influence over this entity and thus it is accounted for as a cost method investment. This investment is also classified as an other long term asset on the balance sheet.
Interim Condensed Consolidated Financial Statements	Interim Condensed Consolidated Financial Statements — The accompanying condensed consolidated balance sheets as of September 30, 2016 and December 31, 2015, the condensed consolidated statements of income for the three and nine months ended September 30, 2016 and 2015, and the condensed consolidated statements of cash flows for the nine months ended September 30, 2016 and 2015 are unaudited. The condensed consolidated balance sheet data as of December 31, 2015 was derived from the audited consolidated financial statements which are included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) pursuant to the rules and regulations of the Securities and Exchange Commission applicable to interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the unaudited interim condensed consolidated financial statements as of September 30, 2016 and for the three and nine months ended September 30, 2016 and 2015 have been prepared on the same basis as the audited consolidated statements and reflect all adjustments, which are normal recurring adjustments, necessary for the fair presentation of its statement of financial position, results of operations and cash flows. The results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of the operating results for any subsequent quarter, for the full fiscal year or any future periods.
Cash and Cash Equivalents	Cash and Cash Equivalents — The Company considers all highly liquid investments with an original maturity of 90 days or less to be cash and cash equivalents. The carrying values of the Company’s cash and cash equivalents approximate fair value. At September 30, 2016, the Company had $30.3 million of cash in banks and $90.2 million among four government and agency money market funds. At December 31, 2015, the Company had $22.2 million of cash in banks and $86.9 million among three money market funds.
Fair Value Measurements	Fair Value Measurements — Certain assets and liabilities are required to be recorded at fair value on a recurring basis. Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Assets measured at fair value on a nonrecurring basis include long-lived assets held and used. The fair value of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their carrying values. The three-tier fair value hierarchy, which prioritizes valuation methodologies based on the reliability of the inputs, is: Level 1— Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2— Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3— Valuations based on unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts — Accounts receivable consist of trade receivables recorded upon recognition of revenue from sales of voice services, reduced by reserves for estimated bad debts. Trade accounts receivable are generally recorded at the invoiced amount and do not bear interest. Credit is extended based on evaluation of the customer’s financial condition. The Company makes judgments as to its ability to collect outstanding receivables and provides allowances for a portion of receivables when collection becomes doubtful. The specific identification method is applied to outstanding invoices to determine this provision. Our allowance for doubtful accounts was $2.4 million at both September 30, 2016 and December 31, 2015.
Property and Equipment	Property and Equipment — Property and equipment is recorded at cost. These values are depreciated over the estimated useful lives of the individual assets using the straight-line method. Any gains and losses from the disposition of property and equipment are included in operations as incurred. The estimated useful life for network equipment and tools and test equipment is five years. The estimated useful life for computer equipment, computer software and furniture and fixtures is three years. Leasehold improvements are amortized on a straight-line basis over an estimated useful life of five years or the life of the lease, whichever is less. As discussed in further detail below, the impairment of long-lived assets is evaluated when events or changes in circumstances indicate that a potential impairment has occurred.
Long-lived Assets	Long-lived Assets — The carrying value of long-lived assets, including property and equipment, are reviewed whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Impairment of assets with definite lives is generally determined by comparing projected undiscounted cash flows to be generated by the asset, or appropriate grouping of assets, to its carrying value. If an impairment is identified, a loss is recorded equal to the excess of the asset’s net book value over its fair value. The fair value becomes the new cost basis of the asset. Determining the extent of an impairment, if any, typically requires various estimates and assumptions including using management’s judgment, cash flows directly attributable to the asset, the useful life of the asset and residual value, if any. In addition, the remaining useful life of the impaired asset is revised, if necessary. There were no property and equipment or intangible asset impairment charges in 2015 or during the nine months ended September 30, 2016.
Goodwill	Goodwill — Goodwill represents the excess of the purchase price of an acquired business over the amounts assigned to assets and liabilities assumed in the business combination. Goodwill is not amortized but is tested for impairment at least annually during the fourth quarter of each year, or more frequent ly if indicators of impairment arise . Goodwill is tested for impairment at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment, referred to as a component. The Company has not identified any components within its single operating segment and, hence, has a single reporting unit for purposes of the goodwill impairment analysis.
Revenue Recognition	Revenue Recognition — The Company generates revenue from sales of its voice services. The Company maintains tariffs and executed service agreements with each of its customers in which specific fees and rates are determined. One customer agreement contains multiple voice service elements and is accounted for as a multiple-element arrangement under Accounting Standards Codification (“ASC”) topic 605-25, Revenue Recognition-Multiple Element Arrangements. Following the requirements of ASC 605-25, the Company evaluated the multiple-element arrangement to determine which deliverables represented separate units of accounting and then allocated consideration to each unit of accounting based on their selling prices using relative fair values. Some of these deliverables are treated as non-monetary transactions which are also recorded at fair value. Voice revenue is recorded each month on an accrual basis, when collection is probable, based upon minutes of traffic switched by the Company’s network by each customer, which is referred to as minutes of use.
Earnings Per Share	Earnings per Share — Basic earnings per share is computed based on the weighted average number of common shares and participating securities outstanding. Diluted earnings per share is computed based on the weighted average number of common shares and participating securities outstanding adjusted by the number of additional shares that would have been outstanding during the period had the potentially dilutive securities been issued. The following table presents a reconciliation of the numerators and denominators of basic and diluted earnings per share of common stock: Three Months Ended Nine Months Ended September 30, September 30, (In thousands, except per share amounts) 2016 2015 2016 2015 Numerator: Net income $ 9,373 $ 8,267 $ 27,484 $ 29,449 Denominator: Weighted average common shares outstanding 34,409 33,620 34,179 33,562 Effect of dilutive securities: Stock options and performance stock units 175 518 208 495 Denominator for diluted earnings per share 34,584 34,138 34,387 34,057 Earnings per share Basic - as reported $ 0.27 $ 0.25 $ 0.80 $ 0.88 Diluted - as reported $ 0.27 $ 0.24 $ 0.80 $ 0.86 Certain awards were not included in the computation of diluted earnings per share because the effect would have been antidilutive. Outstanding share-based awards of 0.1 million were outstanding during both the three and nine months ended September 30, 2016, while 0.7 million were outstanding during both the three and nine months ended September 30, 2015, but were not included in the computation of diluted earnings per share because the effect would have been antidilutive. The undistributed earnings allocable to participating securities were $0.1 million for both the three and nine months ended September 30, 2016, respectively.
Accounting for Share-Based Payments	Accounting for Stock-Based Compensation — The Company records stock-based compensation expense related to stock options, non-vested shares and performance stock units based on fair value. The amount of non-cash share-based expense recorded in the three months ended September 30, 2016 and 2015 was $0.8 million and $1.3 million, respectively. The amount of non-cash share-based expense recorded in the nine months ended September 30, 2016 and 2015 was $2.9 million and $4.0 million, respectively. Refer to Note 6, “Stock Options, Non-Vested Shares and Performance Stock Units.” The fair value of stock options is determined using the Black-Scholes valuation model. This model takes into account the exercise price of the stock option, the fair value of the common stock underlying the stock option as measured on the date of grant and an estimation of the volatility of the common stock underlying the stock option. Such value is recognized as expense over the service period, net of estimated forfeitures, using the straight line method. The fair value of non-vested shares is measured based upon the quoted closing market price for the stock on the date of grant. The compensation cost is recognized on a straight-line basis over the vesting period. The fair value of each performance stock unit granted is estimated using a Monte Carlo pricing model. The Monte Carlo simulation model is based on a discounted cash flow approach, with the simulation of a large number of possible stock price outcomes for the Company’s stock and the applicable index. termination of an individual’s service prior to fulfilling the requisite service period will result in forfeiture of units and compensation cost will be reversed. The estimation of stock awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from the Company’s current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised. The Company considers many factors when estimating expected forfeitures, including types of awards, employee class and historical experience. Actual results, and future changes in estimates, may differ from the Company’s current estimates.
Stock Retirement	Stock Retirement — During the quarter ended June 30, 2016, the Company retired certain shares previously held in treasury. The stock repurchases have been accounted for under the cost method whereby the entire cost of the repurchased and retired shares, net of par value, were recorded to additional paid-in capital.
Recent Accounting Pronouncements	Recent Accounting Pronouncements — In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The ASU is based on the principle that an entity should recognize revenue to depict the transfer of 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 ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. Entities have the option of using either a full retrospective or a modified retrospective approach for the adoption of the new standard. The ASU is effective for annual reporting periods beginning after December 15, 2017 and early adoption as of December 15, 2016 is permitted. The Company is currently assessing the impact of this standard on the Company’s consolidated financial statements and disclosures . In May 2015, the FASB issued ASU No. 2015-08, Business Combinations (Topic 805): Pushdown Accounting - Amendment to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115 . This ASU was issued to amend various SEC paragraphs pursuant to the issuance of Staff Accounting Bulletin No. 115. This ASU is effective for annual periods beginning after December 15, 2015 and has not had a significant impact on the Company’s consolidated financial statements and disclosures . In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments, which eliminates the requirement to retrospectively account for adjustments made to provisional amounts recognized in a business combination. The new guidance requires the cumulative impact of measurement period adjustments, including the impact on prior periods, to be recognized in the reporting period in which the adjustment is recorded. This ASU is effective for annual periods beginning after December 15, 2015 and has not had a significant impact on the Company’s consolidated financial statements and disclosures . In March 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), The new guidance requires lessees to recognize leases on the balance sheet as assets and liabilities to reflect the rights and obligations created by those leases. Leases will continue to be classified as either financing or operating, with classification affecting the recognition, measurement and presentation of expenses and cash flows arising from the leases. Additional qualitative and quantitative disclosures will be required. The ASU is effective for annual reporting periods beginning after December 15, 2018 and early adoption is permitted. The Company is currently assessing the impact of this standard on the Company’s consolidated financial statements and disclosures . In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, effective for annual periods beginning after December 15, 2016, and early adoption is permitted. consolidated financial statements and disclosures In April, 2016 the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606) Identifying Performance Obligations and Licensing May, 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606) Narrow-Scope Improvements and Practical Expedients, consolidated financial statements and disclosures In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which clarifies or adds guidance on the classification of several cash flow issues which currently have diversity in practice. The ASU is effective for annual periods beginning after December 15, 2017, and early adoption is permitted. The Company early adopted this ASU for the third quarter ended September 30, 2016 and found it did not have an impact on its consolidated financial statements and disclosures.

SUMMARY OF SIGNIFICANT ACCOUN16

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Earnings Per Share	The following table presents a reconciliation of the numerators and denominators of basic and diluted earnings per share of common stock: Three Months Ended Nine Months Ended September 30, September 30, (In thousands, except per share amounts) 2016 2015 2016 2015 Numerator: Net income $ 9,373 $ 8,267 $ 27,484 $ 29,449 Denominator: Weighted average common shares outstanding 34,409 33,620 34,179 33,562 Effect of dilutive securities: Stock options and performance stock units 175 518 208 495 Denominator for diluted earnings per share 34,584 34,138 34,387 34,057 Earnings per share Basic - as reported $ 0.27 $ 0.25 $ 0.80 $ 0.88 Diluted - as reported $ 0.27 $ 0.24 $ 0.80 $ 0.86

BUSINESS COMBINATION (Tables)

BUSINESS COMBINATION (Tables)	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
Schedule of Allocation of Purchase Price	The allocation of the purchase price is as follows: (dollars in thousands) Property and equipment $ 3,900 Goodwill 1,715 Net deferred income tax liability (1,215 ) Total consideration $ 4,400

STOCK OPTIONS, NON-VESTED SHA18

STOCK OPTIONS, NON-VESTED SHARES AND PERFORMANCE STOCK UNITS (Tables)	9 Months Ended
	Sep. 30, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Assumptions Used to Estimate Fair Value of Stock Options	The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model. For the nine months ended September 30, 2016 and September 30, 2015, fair value of stock options were measured using the following assumptions: September 30, September 30, 2016 2015 Expected life 7.0 years 7.0 years Risk-free interest rate 1.5% 1.9% Expected dividends 3.6% 3.9% Volatility 46.1% 49.6%
Stock Option Activity	A summary of the Company’s stock option activity and related information for the nine months ended September 30, 2016 is as follows: Weighted Aggregate Weighted Average Intrinsic Average Shares Exercise Value Remaining (000) Price ($000) Term (yrs) Options outstanding — January 1, 2016 1,430 $ 15.10 Granted 95 16.70 Exercised (362 ) 10.30 Cancelled (39 ) 18.91 Options outstanding — September 30, 2016 1,124 $ 16.64 $ 2,459 4.14 Options Vested and expected to vest — September 30, 2016 1,117 $ 16.64 $ 2,455 4.11 Options Exercisable — September 30, 2016 876 $ 17.82 $ 1,409 3.07
Non-Vested Share Activity	A summary of the Company’s non-vested share activity and related information for the nine months ended September 30, 2016 is as follows: Weighted Aggregate Average Intrinsic Shares Grant Date Value (000) Fair Value ($000) Non-vested shares outstanding — January 1, 2016 334 $ 13.77 Granted 213 16.65 Vested (112 ) 14.28 Cancelled (38 ) 11.63 Non-vested shares outstanding — September 30, 2016 397 $ 15.37 $ 6,408 Non-vested shares vested and expected to vest —September 30, 2016 386 $ 15.34 $ 6,230
Performance Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-Vested Share Activity	A summary of the Company’s performance stock unit activity and related information for the nine months ended September 30, 2016 is as follows: Performance Weighted Stock Average Units Grant Date (000) Fair Value Performance stock units outstanding — January 1, 2016 99 $ 23.19 Granted 56 23.22 Vested — — Cancelled (23 ) 22.08 Performance stock units outstanding — September 30, 2016 132 $ 23.39

FAIR VALUE MEASUREMENT (Tables)

FAIR VALUE MEASUREMENT (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value of Company's Financial Assets and Liabilities by Level in Fair Value Hierarchy	The fair value of the Company’s financial assets and liabilities by level in the fair value hierarchy as of September 30, 2016 and December 31, 2015 was as follows: September 30, 2016 Level 1 Level 2 Level 3 Total Assets: Money Market Funds $ 90,170 $ — $ — $ 90,170 Liabilities: Contingent Consideration $ — $ — $ 750 $ 750 December 31, 2015 Level 1 Level 2 Level 3 Total Assets: Money Market Funds $ 86,871 $ — $ — $ 86,871
Reconciliation of Changes in Fair Value of Level 3 Assets and Liabilities in Fair Value Hierarchy	The following table presents the Company's reconciliation of the changes in the fair value of Level 3 assets in the fair value hierarchy for the three months and nine months ended September 30, 2016, respectively : Contingent Consideration Contingent Consideration June 30, 2016 $ 750 December 31, 2015 $ — Issuances/purchases — Issuances/purchases 750 Realized and unrealized gains/(losses) — Realized and unrealized gains/(losses) — Transfers in/(out) — Transfers in/(out) — Settlements/sales — Settlements/sales — Three months ended September 30, 2016 $ 750 Nine months ended September 30, 2016 $ 750

Description of the Business - A

Description of the Business - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2015	Sep. 30, 2016	Sep. 30, 2015	Nov. 02, 2016
Description Of Business [Line Item]
Gain on settlement of Tinet escrow	$ 1,300		$ 1,290
Merger Agreement
Description Of Business [Line Item]
Merger agreement date		Nov. 2, 2016
Merger Agreement | Subsequent Event
Description Of Business [Line Item]
Shares converted into right to receive per share in cash without interest				$ 23

Summary of Significant Accoun21

Summary of Significant Accounting Policies - Additional Information (Detail) shares in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016USD ($)Investmentshares	Sep. 30, 2015USD ($)shares	Sep. 30, 2016USD ($)Investmentshares	Sep. 30, 2015USD ($)shares	Dec. 31, 2015USD ($)Investment
Summary Of Significant Accounting Policies [Line Items]
Maximum term for investments to be considered cash equivalents days			90 days
Cash in banks	$ 30,300,000		$ 30,300,000		$ 22,200,000
Money market mutual funds					$ 86,900,000
Number of money market mutual fund invested | Investment					3
Receivables, allowance	2,433,000		2,433,000		$ 2,365,000
Impairment of property and equipment			0		0
Impairment of intangible asset			0		$ 0
Undistributed earnings (loss) allocable to participating securities	100,000		100,000
Share-based expense	$ 800,000	$ 1,300,000	$ 2,900,000	$ 4,000,000
Share-based awards
Summary Of Significant Accounting Policies [Line Items]
Anti-dilutive securities not included in the computation of diluted earnings per share | shares	0.1	0.7	0.1	0.7
Network Equipment And Tools And Test Equipment
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives, years			5 years
Computer equipment
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives, years			3 years
Computer software
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives, years			3 years
Furniture and fixtures
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives, years			3 years
Leasehold Improvements
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives, description			Five years or the life of the lease, whichever is less
Government and agency
Summary Of Significant Accounting Policies [Line Items]
Money market mutual funds	$ 90,200,000		$ 90,200,000
Number of money market mutual fund invested | Investment	4		4

Earnings Per Share (Detail)

Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Accounting Policies [Abstract]
Net income	$ 9,373	$ 8,267	$ 27,484	$ 29,449
Weighted average common shares outstanding	34,409	33,620	34,179	33,562
Stock options and performance stock units	175	518	208	495
Denominator for diluted earnings per share	34,584	34,138	34,387	34,057
Earnings per share
Basic - as reported	$ 0.27	$ 0.25	$ 0.80	$ 0.88
Diluted - as reported	$ 0.27	$ 0.24	$ 0.80	$ 0.86

Business Combination - Addition

Business Combination - Additional Information (Detail) - Shopety, Inc. d/b/a Better Voice - USD ($) $ in Thousands	May 13, 2016	Sep. 30, 2016
Business Acquisition [Line Items]
Business acquisition, total purchase price	$ 4,400
Business acquisition in form of earn-out	800
Business acquisition, escrow agreement	$ 300
Term of escrow agreement	12 months
Business acquisition, related costs	$ 200
Adjustment to net deferred tax liability and goodwill		$ 16

Schedule of Allocation of Purch

Schedule of Allocation of Purchase Price (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	May 13, 2016
Business Acquisition [Line Items]
Goodwill	$ 1,715
Shopety, Inc. d/b/a Better Voice
Business Acquisition [Line Items]
Property and equipment		$ 3,900
Goodwill		1,715
Net deferred income tax liability		(1,215)
Total consideration		$ 4,400

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Estimated effective income tax rate	35.50%	34.70%	37.30%	37.00%
Statutory federal income tax rate			35.00%

Stock Options, Non-Vested Sha26

Stock Options, Non-Vested Shares and Performance Stock Units - Additional Information (Detail)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016USD ($)Tranche$ / sharesshares	Sep. 30, 2015shares	Sep. 30, 2016USD ($)Tranche$ / sharesshares	Sep. 30, 2015USD ($)$ / sharesshares	Dec. 31, 2015USD ($)shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted options outstanding	1,124,000		1,124,000		1,430,000
Granted Performance stock units outstanding			213,000
Performance stock units remaining outstanding	397,000		397,000		334,000
Options granted	0	0	100,000	100,000
Weighted Average Exercise Price, Granted | $ / shares			$ 16.70	$ 17.02
Weighted-average fair value of options granted | $ / shares			$ 5.40	$ 6.03
Total grant date fair value of options vested | $			$ 400,000	$ 600,000
Total intrinsic value of stock options exercised | $			$ 3,300,000	$ 2,700,000
Closing stock price | $ / shares	$ 16.14		$ 16.14
Performance Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted Performance stock units outstanding	0	0	56,000	100,000
Performance stock units remaining outstanding	132,000		132,000		99,000
Unrecognized compensation cost | $	$ 1,600,000		$ 1,600,000		$ 1,600,000
Weighted average remaining term recorded for options, in years			1 year 9 months 18 days		1 year 8 months 12 days
Stock-based compensation, recognition period			3 years
Percentage of Target Award to be paid			200.00%
Minimum performance threshold forfeited | $			$ 0
Performance Stock Units | First Tranche
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, recognition period			18 months
Performance Stock Units | Second Tranche
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, recognition period			2 years
Performance Stock Units | Third Tranche
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, recognition period			3 years
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation cost | $	$ 900,000		$ 900,000		$ 800,000
Weighted average remaining term recorded for options, in years			2 years 7 months 6 days		2 years 8 months 12 days
Non-Vested Shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted Performance stock units outstanding	0	0	200,000	200,000
Weighted average remaining term recorded for options, in years			2 years 4 months 24 days		2 years 3 months 18 days
Unrecognized compensation cost | $	$ 4,300,000		$ 4,300,000		$ 3,000,000
Non-Vested Shares | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested shares, vesting period			6 months
Non-Vested Shares | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested shares, vesting period			4 years
2003 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Issuance of stock options, non-vested shares and performance stock units	4,700,000		4,700,000
2007 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Additional outstanding shares available for grant	2,500,000		2,500,000
Shares available for grant as a percentage of the Company's outstanding common stock			7.30%
2007 Plan | Performance Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted Performance stock units outstanding			100,000
Number of tranches | Tranche	3		3

Assumptions Used to Estimate Fa

Assumptions Used to Estimate Fair Value of Stock Options (Detail)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Expected life	7 years	7 years
Risk-free interest rate	1.50%	1.90%
Expected dividends	3.60%	3.90%
Volatility	46.10%	49.60%

Stock Option Activity (Detail)

Stock Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Shares, Options outstanding beginning	1,430
Shares, Granted	95
Shares, Exercised	(362)
Shares, Cancelled	(39)
Shares, Options outstanding ending	1,124
Shares, Options Vested and expected to vest	1,117
Shares, Options Exercisable	876
Weighted Average Exercise Price, Options outstanding beginning	$ 15.10
Weighted Average Exercise Price, Granted	16.70	$ 17.02
Weighted Average Exercise Price, Exercised	10.30
Weighted Average Exercise Price, Cancelled	18.91
Weighted Average Exercise Price, Options outstanding ending	16.64
Weighted Average Exercise Price, Options Vested and expected to vest	16.64
Weighted Average Exercise Price, Options Exercisable	$ 17.82
Aggregate Intrinsic Value, Options outstanding ending	$ 2,459
Aggregate Intrinsic Value, Options Vested and expected to vest	2,455
Aggregate Intrinsic Value, Options Exercisable	$ 1,409
Weighted Average Remaining Term, Options outstanding ending, years	4 years 1 month 21 days
Weighted Average Remaining Term, Options Vested and expected to vest, years	4 years 1 month 10 days
Weighted Average Remaining Term, Options Exercisable, years	3 years 26 days

Non-Vested Share Activity (Deta

Non-Vested Share Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares, Non-vested shares outstanding beginning			334,000
Shares, Granted			213,000
Shares, Vested			(112,000)
Shares, Cancelled			(38,000)
Shares, Non-vested shares outstanding ending	397,000		397,000
Shares, Non-vested shares vested and expected to vest	386,000		386,000
Weighted Average Grant Date Fair Value, Non-vested shares outstanding beginning			$ 13.77
Weighted Average Grant Date Fair Value, Granted			16.65
Weighted Average Grant Date Fair Value, Vested			14.28
Weighted Average Grant Date Fair Value, Cancelled			11.63
Weighted Average Grant Date Fair Value, Non-vested shares outstanding ending	$ 15.37		15.37
Weighted Average Grant Date Fair Value, Non-vested shares vested and expected to vest	$ 15.34		$ 15.34
Aggregate Intrinsic Value, Non-vested shares outstanding ending	$ 6,408		$ 6,408
Aggregate Intrinsic Value, Non-vested shares vested and expected to vest	$ 6,230		$ 6,230
Performance Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares, Non-vested shares outstanding beginning			99,000
Shares, Granted	0	0	56,000	100,000
Shares, Cancelled			(23,000)
Shares, Non-vested shares outstanding ending	132,000		132,000
Weighted Average Grant Date Fair Value, Non-vested shares outstanding beginning			$ 23.19
Weighted Average Grant Date Fair Value, Granted			23.22
Weighted Average Grant Date Fair Value, Cancelled			22.08
Weighted Average Grant Date Fair Value, Non-vested shares outstanding ending	$ 23.39		$ 23.39

Fair Value of Company's Financi

Fair Value of Company's Financial Assets and Liabilities by Level in Fair Value Hierarchy (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Money Market Funds
Assets:
Assets, fair Value	$ 90,170	$ 86,871
Contingent Consideration
Liabilities:
Liabilities, fair Value	750
Level 1 | Money Market Funds
Assets:
Assets, fair Value	90,170	$ 86,871
Level 3 | Contingent Consideration
Liabilities:
Liabilities, fair Value	$ 750

Reconciliation of Changes in Fa

Reconciliation of Changes in Fair Value of Level 3 Assets and Liabilities in Fair Value Hierarchy (Detail) - Contingent Consideration - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 750	$ 0
Issuances/purchases	0	750
Realized and unrealized gains/(losses)	0	0
Transfers in/(out)	0	0
Settlements/sales	0	0
Ending balance	$ 750	$ 750

Segment Information - Additiona

Segment Information - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2016Segment
Segment Reporting [Abstract]
Number of operating segments	1

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2016
Merger Agreement
Subsequent Event [Line Items]
Merger agreement date	Nov. 2, 2016