OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION

Operating Segments Information

The Company has two reportable segments: INAP US and INAP INTL. Our INAP US segment consists of US Colocation, US Cloud, and US Network services based in the United States. Our INAP INTL segment consists of these same services based in countries other than the United States, and Ubersmith.

Each segment is managed as an operation with well-established strategic directions and performance requirements. Each segment reports to the Chief Operating Officer. The Chief Operating Officer reports directly to the Company's CODM. The CODM evaluates segment performance using business unit contribution which is defined as business unit revenues less direct costs of sales and services, customer support, and sales and marketing, exclusive of depreciation and amortization.

Our services, which are included within both our reportable segments, are described as follows:

Colocation

Colocation involves providing conditioned power with back-up capacity and physical space within data centers along with associated services such as interconnection, remote hands, environmental controls, monitoring and security while allowing our customers to deploy and manage their servers, storage and other equipment in our secure data centers. We design the data center infrastructure, procure the capital equipment, deploy the infrastructure and are responsible for the operation and maintenance of the facility.

Cloud

Cloud services involve providing compute resources and storage services on demand via an integrated platform that includes our automated bare metal solutions. We offer our next generation cloud platforms in our high density colocation facilities and utilize the INAP performance IP for low latency connectivity.

Network

Network services includes our patented Performance IP™ service, content delivery network services, as well as our IP routing hardware and software platform. By intelligently routing traffic with redundant, high-speed connections over multiple, major Internet backbones, our IP connectivity provides high-performance and highly-reliable delivery of content, applications and communications to end users globally. We deliver our IP connectivity with 94 network POPs around the world.

The following table provides segment results, with prior period amounts reclassified to conform to the current presentation (in thousands):



	Year Ended December 31,
	2019			2018			2017
Revenues:
INAP US	$	228,744		$	247,146		$	215,770
INAP INTL	62,761			69,012			64,948
Total revenues	291,505			316,158			280,718

Costs of sales and services, customer support and sales and marketing:
INAP US	129,329			135,179			128,062
INAP INTL	39,270			45,124			37,829
Total costs of sales and services, customer support and sales and marketing	168,599			180,303			165,891

Segment profit:
INAP US	99,415			111,967			87,708
INAP INTL	23,491			23,888			27,119
Total segment profit	122,906			135,855			114,827

Goodwill and intangibles impairment	59,126			—			—
Exit activities, restructuring and impairments	8,986			5,406			6,249
Other operating expenses, including sales, general and administrative and depreciation and amortization expenses	123,221			123,302			102,240
(Loss) income from operations	(68,427		)	7,147			6,338
Non-operating expenses	71,390			67,565			51,458
Loss before income taxes and equity in earnings of equity-method investment	$	(139,817	)	$	(60,418	)	$	(45,120	)

The CODM does not manage the operating segments based on asset allocations. Therefore, assets by operating segment have not been provided.

We discuss goodwill by segment in Note 6, "Goodwill and Other Intangible Assets" and as mentioned in that note, we did record an impairment charge during the year ended December 31, 2019. No impairment charge was recorded during the year ended December 31, 2018.

Revenue by Product

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



	Year Ended December 31,
	2019		2018		2017

Colocation	$	115,653	$	130,086	$	124,083
Network Services	56,630		64,111		67,435
Cloud	119,222		121,961		89,200
	$	291,505	$	316,158	$	280,718

In accordance with ASC 606, the Company disaggregates revenue from contracts with customers based on the timing of revenue recognition. The Company determined that disaggregating revenue into these categories depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. As discussed herein and in Note 2, "Summary of Significant Accounting Policies," the Company's business consists of INAP US and INAP INTL colocation, cloud and network services. The following table presents disaggregated revenues by category as follows (in thousands):



	Year Ended December 31, 2019

	INAP US		INAP INTL

Colocation	$	109,850	$	5,803
Network Services	45,589		11,041
Cloud	73,305		45,917
	$	228,744	$	62,761



	Year Ended December 31, 2018

	INAP US		INAP INTL

Colocation	$	124,244	$	5,842
Network Services	52,748		11,363
Cloud	70,154		51,807
	$	247,146	$	69,012

Geographic Information

Revenues are allocated to countries based on location of services. Revenues, by country with revenues over 10% of total revenues, are as follows (in thousands):



	Year Ended December 31,
	2019		2018		2017
Revenues:
United States	$	232,735	$	251,444	$	220,018
Canada	33,089		37,956		38,750
Other countries	25,681		26,758		21,950
	$	291,505	$	316,158	$	280,718

Net property and equipment, by country with assets over 10% of total property and equipment, is as follows (in thousands):



	December 31,
	2019		2018
United States	$	176,922	$	439,753
Canada	29,671		38,718
Other countries	8,518		5,835
	$	215,111	$	484,306