INVESTMENT IN JOINT VENTURE

12 Months Ended

Dec. 31, 2012

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENT IN JOINT VENTURE

5. INVESTMENT IN JOINT VENTURE

We invested $4.1 million for a 51% ownership interest in Internap Japan, a joint venture with NTT-ME Corporation and NTT Holdings. We do not assert control over the joint venture’s operational and financial policies and practices required to account for the joint venture as a subsidiary whose assets, liabilities, revenue and expense would be consolidated due to certain minority interest protections afforded to our joint venture partners. We are, however, able to assert significant influence over the joint venture and, therefore, account for our joint venture investment using the equity-method of accounting.

We include our investment activity in the joint venture in the IP services segment as summarized below (in thousands):

	Year Ended December 31,
	2012			2011
Investment balance, January 1	$	2,936		$	2,265
Proportional share of net income		220			475
Unrealized foreign currency translation (loss) gain, net		(156	)		196
Investment balance, December 31	$	3,000		$	2,936

Audited summarized financial information for Internap Japan is as follows (in thousands):

	Year Ended December 31,
	2012		2011		2010
Current assets	$	5,192	$	6,462	$	5,372
Long-term assets		1,819		712		658
Current liabilities		1,406		1,355		1,288
Long-term liabilities		24		26		—
Net sales		10,536		11,636		10,357
Operating income		651		850		836
Net income		372		787		813