REVENUES (Tables)

3 Months Ended

Mar. 31, 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

unaudited 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 March 31, 2018
	As Reported			Balances without Adoption of ASC 606			Effect of Change Higher/ (Lower)
Revenues:
INAP US	$	57,076		$	56,835		$	241
INAP INTL	17,125			17,125			—
Total revenues	74,201			73,960			241
Operating costs and expenses:
Costs of sales and services, exclusive of depreciation and amortization, shown below:
INAP US	18,435			18,435			—
INAP INTL	6,602			6,602			—
Costs of customer support	7,387			7,387			—
Sales, general and administrative	19,854			19,948			(94		)
Depreciation and amortization	21,077			21,077			—
Exit activities, restructuring and impairments	(33		)	(33		)	—
Total operating costs and expenses	73,322			73,416			(94		)
Income from operations	879			544			335
Non-operating expenses:
Interest expense	15,027			15,027			—
Gain on foreign currency, net	(215		)	(215		)	—
Total non-operating expenses	14,812			14,812			—
Loss before income taxes and non-controlling interest	(13,933		)	(14,268		)	335
Provision for income taxes	100			100			—
Net loss	(14,033		)	(14,368		)	335
Less net income attributable to non-controlling interest	27			27			—
Net loss attributable to INAP stockholders	(14,060		)	(14,395		)	335
Other comprehensive income:
Foreign currency translation adjustment	61			61			—
Comprehensive loss	$	(13,999	)	$	(14,334	)	$	335
Basic and diluted net loss per share	$	(0.70	)	$	(0.72	)	$	0.02
Weighted average shares outstanding used in computing basic and diluted net loss per share	20,052			20,052

	March 31, 2018
	As Reported			Balances without Adoption of ASC 606			Effect of Change Higher/ (Lower)
ASSETS
Current assets:
Cash and cash equivalents	$	16,159		$	16,159		$	—
Accounts receivable, net of allowance for doubtful accounts of $1,700	17,524			17,524			—
Contract assets	7,131			6,872			259
Prepaid expenses and other assets	8,690			8,690			—
Total current assets	49,504			49,245			259
Property and equipment, net	461,314			461,314			—
Intangible assets, net	79,185			79,185			—
Goodwill	118,077			118,077			—
Non-current contract assets	12,056			12,027			29
Deposits and other assets	11,784			11,784			—
Total assets	$	731,920		$	731,632		$	288
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	21,699		$	21,699		$	—
Accrued liabilities	14,279			14,279			—
Deferred revenues	5,871			6,062			(191		)
Capital lease obligations	10,095			10,095			—
Revolving credit facility	16,000			16,000			—
Term loan, less discount and prepaid costs of $3,539	818			818			—
Exit activities and restructuring liability	3,391			3,391			—
Other current liabilities	4,197			4,197			—
Total current liabilities	76,350			76,541			(191		)
Capital lease obligations	223,549			223,549			—
Term loan, less discount and prepaid costs of $11,286	416,766			416,766			—
Exit activities and restructuring liability	408			408			—
Deferred rent	1,138			1,138			—
Deferred tax liability	1,841			1,841			—
Other long-term liabilities	3,046			2,902			144
Total liabilities	723,098			723,145			(47		)
Commitments and contingencies
Stockholders’ deficit:
Preferred stock, $0.001 par value; 5,000 shares authorized; no shares issued or outstanding	—			—			—
Common stock, $0.001 par value; 30,000 shares authorized; 21,131 shares outstanding	21			21			—
Additional paid-in capital	1,327,985			1,327,985			—
Treasury stock, at cost, 313 shares	(7,429		)	(7,429		)	—
Accumulated deficit	(1,313,598		)	(1,313,933		)	335
Accumulated items of other comprehensive loss	(1,263		)	(1,263		)	—
Total INAP stockholders’ deficit	5,716			5,381			335
Non-controlling interests	3,106			3,106			—
Total stockholders’ deficit	8,822			8,487			335
Total liabilities and stockholders’ deficit	$	731,920		$	731,632		$	288

The following table presents the effect of the adoption of ASC 606 on the Company’s balance sheet as of January 1, 2018 (in thousands):

	December 31, 2017, as reported			Adjustments			January 1, 2018, as adjusted
ASSETS
Current assets:
Cash and cash equivalents	$	14,603		$	—		$	14,603
Accounts receivable, net of allowance for doubtful accounts of $1,487	17,794			—			17,794
Prepaid expenses and other assets	8,673			6,814			15,487
Total current assets	41,070			6,814			47,884
Property and equipment, net	458,565			—			458,565
Intangible assets, net	25,666			—			25,666
Goodwill	50,209			—			50,209
Deposits and other assets	11,015			12,214			23,229
Total assets	$	586,525		$	19,028		$	605,553
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	20,388		$	—		$	20,388
Accrued liabilities	15,908			—			15,908
Deferred revenues	4,861			(749		)	4,112
Capital lease obligations	11,711			—			11,711
Revolving credit facility	5,000			—			5,000
Term loan, less discount and prepaid costs of $2,133	867			—			867
Exit activities and restructuring liability	4,152			—			4,152
Other current liabilities	1,707			—			1,707
Total current liabilities	64,594			(749		)	63,845
Capital lease obligations	223,749			—			223,749
Term loan, less discount and prepaid costs of $7,655	287,845			—			287,845
Exit activities and restructuring liability	664			—			664
Deferred rent	1,310			—			1,310
Deferred tax liability	1,651			209			1,860
Other long-term liabilities	7,744			(4,616		)	3,128
Total liabilities	587,557			(5,156		)	582,401
Commitments and contingencies
Stockholders’ deficit:
Preferred stock, $0.001 par value; 5,000 shares authorized; no shares issued or outstanding	—			—			—
Common stock, $0.001 par value; 30,000 shares authorized; 20,804 shares outstanding	21			—			21
Additional paid-in capital	1,327,084			—			1,327,084
Treasury stock, at cost, 293 shares	(7,159		)	—			(7,159		)
Accumulated deficit	(1,323,723		)	24,184			(1,299,539		)
Accumulated items of other comprehensive loss	(1,324		)	—			(1,324		)
Total INAP stockholders’ deficit	(5,101		)	24,184			19,083
Non-controlling interests	4,069			—			4,069
Total stockholders’ deficit	(1,032		)	24,184			23,152
Total liabilities and stockholders’ deficit	$	586,525		$	19,028		$	605,553

Summary of revenue by source

Revenue by source, with sales and usage-based taxes excluded, is as follows (in thousands, unaudited):

	Three Months Ended March 31, 2018
	INAP US		INAP INTL
Colocation	$	30,936	$	1,517
Network services	13,820		2,971
Cloud	12,320		12,637
	$	57,076	$	17,125

Revenue by geography is as follows (in thousands, unaudited):

	Three Months Ended March 31, 2018
	INAP US		INAP INTL
United States	$	57,076	$	—
Canada	—		9,291
Other countries	—		7,834
	$	57,076	$	17,125

Summary of receivables, contract assets and liabilities from contracts with customers