SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Error Corrections and Prior Period Adjustments



	For the quarter ended March 31, 2018
	As reported			Adjustments			As adjusted

Costs of sales and services, exclusive of depreciation and amortization - QTD	$	25,037		$	430		$	25,467
Costs of sales and services, exclusive of depreciation and amortization - YTD	25,037			430			25,467
Depreciation and amortization - QTD	21,077			(81		)	20,996
Depreciation and amortization - YTD	21,077			(81		)	20,996
Interest expense - QTD	15,027			(577		)	14,450
Interest expense - YTD	15,027			(577		)	14,450
Net loss attributable to INAP shareholders - QTD	(14,060		)	(228		)	(14,288		)
Net loss attributable to INAP shareholders - YTD	(14,060		)	(228		)	(14,288		)
Property and equipment, net	461,314			10,438			471,752
Total assets	731,920			10,438			742,358
Capital lease obligations - non-current	223,549			10,470			234,019
Total liabilities	723,098			10,470			733,568
Accumulated deficit	(1,313,598		)	(228		)	(1,313,826		)
Total stockholders' equity (deficit)	$	8,822		$	(228	)	$	8,594



	For the quarter ended June 30, 2018
	As reported			Adjustments			As adjusted

Costs of sales and services, exclusive of depreciation and amortization - QTD	$	27,976		$	645		$	28,621
Costs of sales and services, exclusive of depreciation and amortization - YTD	53,013			1,075			54,088
Depreciation and amortization - QTD	22,590			(122		)	22,468
Depreciation and amortization - YTD	43,667			(203		)	43,464
Interest expense - QTD	15,860			(879		)	14,981
Interest expense - YTD	30,887			(1,456		)	29,431
Net loss attributable to INAP shareholders - QTD	(13,923		)	(356		)	(14,279		)
Net loss attributable to INAP shareholders - YTD	(27,983		)	(584		)	(28,567		)
Property and equipment, net	452,958			10,315			463,273
Total assets	724,707			10,315			735,022
Capital lease obligations - non-current	220,721			10,694			231,415
Total liabilities	729,728			10,694			740,422
Accumulated deficit	(1,328,502		)	(584		)	(1,329,086		)
Total stockholders' equity (deficit)	$	(5,021	)	$	(584	)	$	(5,605	)



	For the quarter ended September 30, 2018
	As reported			Adjustments			As adjusted

Costs of sales and services, exclusive of depreciation and amortization - QTD	$	28,866		$	645		$	29,511
Costs of sales and services, exclusive of depreciation and amortization - YTD	81,880			1,721			83,601
Depreciation and amortization - QTD	23,431			(122		)	23,309
Depreciation and amortization - YTD	67,097			(326		)	66,771
Interest expense - QTD	16,898			(895		)	16,003
Interest expense - YTD	47,786			(2,351		)	45,435
Net loss attributable to INAP Shareholders - QTD	(15,106		)	(373		)	(15,479		)
Net loss attributable to INAP Shareholders - YTD	(43,089		)	(957		)	(44,046		)
Property and equipment, net	477,423			10,193			487,616
Total assets	746,038			10,193			756,231
Capital lease obligations - non-current	252,599			10,945			263,544
Total liabilities	765,004			10,945			775,949
Accumulated deficit	(1,343,609		)	(957		)	(1,344,566		)
Total stockholders' equity (deficit)	$	(18,966	)	$	(957	)	$	(19,923	)

Contract with Customer, Asset and Liability

The Company includes only those incremental costs that would not have been incurred if the contracts had not been entered into:



	Current			Non-current
Balance at December 31, 2017	$	—		$	—
Adjustments resulting from adoption of ASC 606	9,035			16,313
Deferred customer acquisition costs incurred in the period	1,877			7,361
Amounts recognized as expense in the period	(9,638		)	—
Reclassification between short-term and long-term	7,570			(7,570		)
Balance at December 31, 2018	$	8,844		$	16,104

Schedule of basic and diluted net loss per share

Basic and diluted net loss per share is calculated as follows (in thousands, except per share amounts):



	Year Ended December 31,
	2018			2017			2016
Net loss and net loss available to common stockholders	$	(62,500	)	$	(45,343	)	$	(124,742	)
Weighted average shares outstanding, basic and diluted	20,732			18,993			13,083

Net loss per share, basic and diluted	$	(3.01	)	$	(2.39	)	$	(9.54	)

Anti-dilutive securities excluded from diluted net loss per share calculation for stock-based compensation plans	1,509			1,076			1,350

Schedule of reclassifications, which did not affect total revenues, total direct costs of sales and services, operating loss or net loss

The prior year reclassifications, which did not affect total revenues, total direct costs of sales and services, operating loss or net loss, are summarized as follows (in thousands):



	Year Ended December 31, 2017
	As Previously Reported		Reclassification			As Reported
Revenues:
INAP COLO	$	209,580	$	(209,580	)	$	—
INAP CLOUD	71,138		(71,138		)	—
INAP US	—		215,770			215,770
INAP INTL	—		64,948			64,948
Costs of sales and services, exclusive of depreciation and amortization:
INAP COLO	$	89,240	$	(89,240	)	$	—
INAP CLOUD	16,977		(16,977		)	—
INAP US	—		82,997			82,977
INAP INTL	—		23,220			23,220



	Year Ended December 31, 2016
	As Previously Reported		Reclassification			As Reported
Revenues:
INAP COLO	$	221,678	$	(221,678	)	$	—
INAP CLOUD	76,619		(76,619		)	—
INAP US	—		229,902			229,902
INAP INTL	—		68,395			68,395
Costs of sales and services, exclusive of depreciation and amortization:
INAP COLO	$	105,620	$	(105,620	)	—
INAP CLOUD	18,635		(18,635		)	—
INAP US	—		98,512			98,512
INAP INTL	—		25,743			25,743

Schedule of new accounting pronouncements and changes in accounting principles

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



	December 31, 2017, as reported			Adjustments			January 1, 2018, as adjusted
ASSETS
Contract assets - current	$	—		$	8,609		$	8,609
Contract assets - non-current	—			15,759			15,759

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Deferred revenues - current	4,861			(749		)	4,112
Deferred tax liability	1,651			209			1,860
Deferred revenues - non-current	4,761			(4,616		)	145
Accumulated deficit	$	(1,323,723	)	$	23,204		$	(1,300,519	)

Current Impact from the Adoption

In accordance with the new revenue standard requirements, the disclosure of the current period impact of adoption on our consolidated statement of operations and comprehensive loss and balance sheet is as follows (in thousands, except for per share amounts):



	Year Ended December 31, 2018
	As Reported			Balances without Adoption of ASC 606			Effect of Change Higher/ (Lower)
Net revenues	$	317,373		$	316,606		$	767

Sales, general and administrative	75,356			75,120			236
Total operating costs and expenses	311,217			310,981			236
Income from operations	6,156			5,625			531

Loss before income taxes and equity in earnings of equity-method investment	(61,718		)	(62,249		)	531

Net loss	(62,375		)	(62,906		)	531
Less net income attributable to non-controlling interest	125			125			—
Net loss attributable to INAP shareholders	(62,500		)	(63,031		)	531

Comprehensive loss	$	(62,241	)	$	(62,772	)	$	531