Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | May 04, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Entity Registrant Name | Internap Corp | ||
Entity Central Index Key | 0001056386 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 25,648,870 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 59,259,736 | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Interactive Data Current | Yes |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net revenues | $ 291,505 | $ 316,158 | $ 280,718 |
Operating costs and expenses: | |||
Costs of sales and services, exclusive of depreciation and amortization | 106,946 | 107,649 | 106,217 |
Costs of customer support | 32,111 | 32,517 | 25,757 |
Sales, general and administrative | 67,050 | 75,023 | 62,728 |
Depreciation and amortization | 85,713 | 88,416 | 73,429 |
Goodwill and intangibles impairment | 59,126 | 0 | 0 |
Exit activities, restructuring and impairments | 8,986 | 5,406 | 6,249 |
Total operating costs and expenses | 359,932 | 309,011 | 274,380 |
(Loss) income from operations | (68,427) | 7,147 | 6,338 |
Interest expense | 75,142 | 67,823 | 50,933 |
Gain on sale of business | (4,196) | 0 | 0 |
Loss (gain) on foreign currency, net | 444 | (258) | 525 |
Total 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) |
Income tax (benefit) expense | (1,648) | 657 | 253 |
Equity in earnings of equity-method investment, net of taxes | 0 | 0 | (1,207) |
Net loss | (138,169) | (61,075) | (44,166) |
Less net income attributable to non-controlling interest | 81 | 125 | 70 |
Net loss attributable to shareholders | (138,250) | (61,200) | (44,236) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | 354 | 259 | 23 |
Unrealized gain on foreign currency contracts | 0 | 0 | 145 |
Total other comprehensive income | 354 | 259 | 168 |
Comprehensive loss | $ (137,896) | $ (60,941) | $ (44,068) |
Basic and diluted net loss per share (in dollars per share) | $ (5.81) | $ (2.95) | $ (2.33) |
Weighted average shares outstanding used in computing basic and diluted net loss per share (in shares) | 23,790 | 20,732 | 18,993 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 11,649 | $ 17,823 |
Accounts receivable, net of allowance for doubtful accounts of $763 and $1,547, respectively | 15,567 | 19,623 |
Contract assets | 9,039 | 8,844 |
Prepaid expenses and other assets | 7,370 | 7,377 |
Total current assets | 43,625 | 53,667 |
Property and equipment, net | 215,111 | 484,306 |
Operating lease right-of-use assets | 62,537 | |
Finance lease right-of-use assets | 141,323 | |
Intangible assets, net | 46,596 | 73,042 |
Goodwill | 71,208 | 116,217 |
Contract assets | 14,827 | 16,104 |
Deferred income tax assets, net | 124 | 0 |
Deposits and other assets | 4,003 | 7,409 |
Total assets | 599,354 | 750,745 |
Current liabilities: | ||
Accounts payable | 20,529 | 23,435 |
Accrued liabilities | 10,721 | 15,207 |
Deferred revenues | 6,576 | 8,462 |
Capital lease obligations | 0 | 9,171 |
Revolving credit facility | 20,000 | 0 |
Term loan, less discount and issuance costs of $12,545 and $4,036, respectively | 413,311 | 321 |
Exit activities and restructuring liability | 200 | 2,526 |
Short-term operating lease liabilities | 9,241 | |
Short-term finance lease liabilities | 4,979 | |
Other current liabilities | 22 | 1,063 |
Total current liabilities | 485,579 | 60,185 |
Deferred revenues | 632 | 856 |
Operating lease liabilities | 72,301 | |
Finance lease liabilities | 170,042 | |
Capital lease obligations | 264,741 | |
Term loan, less discount and issuance costs of $9,508 | 0 | 415,278 |
Exit activities and restructuring liability | 0 | 75 |
Deferred rent | 0 | 957 |
Deferred income tax liabilities | 0 | 2,211 |
Other long-term liabilities | 3,622 | 3,473 |
Total liabilities | 732,176 | 747,776 |
Commitments and contingencies (Note 9) | ||
Stockholders' (deficit) equity: | ||
Preferred stock, $0.001 par value; 5,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock, $0.001 par value; 50,000 shares authorized; 26,555 and 25,455 shares outstanding, respectively | 26 | 25 |
Additional paid-in capital | 1,374,230 | 1,368,968 |
Treasury stock, at cost, 388 and 330 shares, respectively | (7,958) | (7,646) |
Accumulated deficit | (1,498,409) | (1,360,107) |
Accumulated items of other comprehensive loss | (711) | (1,065) |
Total INAP stockholders' deficit | (132,822) | 175 |
Non-controlling interest | 0 | 2,794 |
Total stockholders' (deficit) equity | (132,822) | 2,969 |
Total liabilities and stockholders' (deficit) equity | $ 599,354 | $ 750,745 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 763 | $ 1,547 |
Debt Instrument, Unamortized Discount, Current | 12,545 | 4,036 |
Debt Instrument, Unamortized Discount, Noncurrent | $ 0 | $ 9,508 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares outstanding (in shares) | 26,555,000 | 25,455,000 |
Treasury stock, shares (in shares) | 388,000 | 330,000 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' (DEFICIT) EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Deficit | Accumulated Items of Other Comprehensive Loss | Non-Controlling Interest | 2017 Securities Purchase Agreement | 2017 Securities Purchase AgreementCommon Stock | 2017 Securities Purchase AgreementAdditional Paid-In Capital | 2018 Public Offering | 2018 Public OfferingCommon Stock | 2018 Public OfferingAdditional Paid-In Capital |
Balance (in shares) at Dec. 31, 2016 | 14,450,000 | ||||||||||||
Balance at Dec. 31, 2016 | $ (3,724) | $ 14 | $ 1,283,376 | $ (6,923) | $ (1,278,699) | $ (1,492) | $ 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net loss | (8,046) | ||||||||||||
Balance at Mar. 31, 2017 | 29,991 | ||||||||||||
Balance (in shares) at Dec. 31, 2016 | 14,450,000 | ||||||||||||
Balance at Dec. 31, 2016 | (3,724) | $ 14 | 1,283,376 | (6,923) | (1,278,699) | (1,492) | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net loss | (26,940) | ||||||||||||
Balance at Jun. 30, 2017 | 11,585 | ||||||||||||
Balance (in shares) at Dec. 31, 2016 | 14,450,000 | ||||||||||||
Balance at Dec. 31, 2016 | (3,724) | $ 14 | 1,283,376 | (6,923) | (1,278,699) | (1,492) | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net loss | (37,556) | ||||||||||||
Balance at Sep. 30, 2017 | 5,936 | ||||||||||||
Balance (in shares) at Dec. 31, 2016 | 14,450,000 | ||||||||||||
Balance at Dec. 31, 2016 | (3,724) | $ 14 | 1,283,376 | (6,923) | (1,278,699) | (1,492) | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net loss | (44,166) | (44,166) | |||||||||||
Net income attributable to non-controlling interest | (70) | (70) | 70 | ||||||||||
Correction of errors | 505 | 505 | |||||||||||
Foreign currency translation | 23 | 23 | |||||||||||
Foreign currency contracts | 145 | 145 | |||||||||||
Movement in non-controlling interest | 3,999 | 3,999 | |||||||||||
Common stock issuance (in shares) | 379,000 | 5,951,000 | |||||||||||
Common stock issuance, net | 0 | $ 40,163 | $ 7 | $ 40,156 | |||||||||
Employee taxes paid on withholding shares (in shares) | (25,000) | ||||||||||||
Employee taxes paid on withholding shares | (236) | (236) | |||||||||||
Stock-based compensation | 3,121 | 3,121 | |||||||||||
Proceeds from exercise of stock options, net (in shares) | 49,000 | ||||||||||||
Proceeds from exercise of stock options, net | 431 | 431 | |||||||||||
Balance (in shares) at Dec. 31, 2017 | 20,804,000 | ||||||||||||
Balance at Dec. 31, 2017 | 580 | $ 21 | 1,327,084 | (7,159) | (1,322,111) | (1,324) | 4,069 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net loss | (13,651) | ||||||||||||
Balance at Mar. 31, 2018 | 11,811 | ||||||||||||
Balance (in shares) at Dec. 31, 2017 | 20,804,000 | ||||||||||||
Balance at Dec. 31, 2017 | 580 | $ 21 | 1,327,084 | (7,159) | (1,322,111) | (1,324) | 4,069 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net loss | (27,430) | ||||||||||||
Balance at Jun. 30, 2018 | (3,008) | ||||||||||||
Balance (in shares) at Dec. 31, 2017 | 20,804,000 | ||||||||||||
Balance at Dec. 31, 2017 | 580 | $ 21 | 1,327,084 | (7,159) | (1,322,111) | (1,324) | 4,069 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net loss | (42,245) | ||||||||||||
Balance at Sep. 30, 2018 | (16,585) | ||||||||||||
Balance (in shares) at Dec. 31, 2017 | 20,804,000 | ||||||||||||
Balance at Dec. 31, 2017 | 580 | $ 21 | 1,327,084 | (7,159) | (1,322,111) | (1,324) | 4,069 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net loss | (61,075) | (61,075) | |||||||||||
Net income attributable to non-controlling interest | (125) | (125) | 125 | ||||||||||
Foreign currency translation | 259 | 259 | |||||||||||
Foreign currency contracts | 0 | ||||||||||||
Movement in non-controlling interest | (1,400) | (1,400) | |||||||||||
Common stock issuance (in shares) | 471,000 | ||||||||||||
Common stock issuance, net | 0 | ||||||||||||
Employee taxes paid on withholding shares (in shares) | (36,000) | ||||||||||||
Employee taxes paid on withholding shares | (487) | (487) | |||||||||||
2018 public offering, net (in shares) | 4,210,000 | ||||||||||||
2018 public offering, net | $ 37,103 | $ 4 | $ 37,099 | ||||||||||
Stock-based compensation | 4,737 | 4,737 | |||||||||||
Proceeds from exercise of stock options, net (in shares) | 6,000 | ||||||||||||
Proceeds from exercise of stock options, net | $ 48 | 48 | |||||||||||
Balance (in shares) at Dec. 31, 2018 | 25,455,000 | 25,455,000 | |||||||||||
Balance at Dec. 31, 2018 | $ 2,969 | $ 25 | 1,368,968 | (7,646) | (1,360,107) | (1,065) | 2,794 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net loss | (19,985) | ||||||||||||
Balance at Mar. 31, 2019 | $ (17,423) | ||||||||||||
Balance (in shares) at Dec. 31, 2018 | 25,455,000 | 25,455,000 | |||||||||||
Balance at Dec. 31, 2018 | $ 2,969 | $ 25 | 1,368,968 | (7,646) | (1,360,107) | (1,065) | 2,794 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net loss | (37,947) | ||||||||||||
Balance at Jun. 30, 2019 | $ (34,411) | ||||||||||||
Balance (in shares) at Dec. 31, 2018 | 25,455,000 | 25,455,000 | |||||||||||
Balance at Dec. 31, 2018 | $ 2,969 | $ 25 | 1,368,968 | (7,646) | (1,360,107) | (1,065) | 2,794 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net loss | (62,009) | ||||||||||||
Balance at Sep. 30, 2019 | $ (57,303) | ||||||||||||
Balance (in shares) at Dec. 31, 2018 | 25,455,000 | 25,455,000 | |||||||||||
Balance at Dec. 31, 2018 | $ 2,969 | $ 25 | 1,368,968 | (7,646) | (1,360,107) | (1,065) | 2,794 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net loss | (138,169) | (138,169) | |||||||||||
Net income attributable to non-controlling interest | (81) | (81) | 81 | ||||||||||
Foreign currency translation | 354 | 354 | |||||||||||
Foreign currency contracts | 0 | ||||||||||||
Movement in non-controlling interest | (1,851) | 1,024 | (2,875) | ||||||||||
Common stock issuance (in shares) | 1,159,000 | ||||||||||||
Common stock issuance, net | (16) | $ 1 | (17) | ||||||||||
Employee taxes paid on withholding shares (in shares) | (59,000) | ||||||||||||
Employee taxes paid on withholding shares | (312) | (312) | |||||||||||
Stock-based compensation | $ 4,255 | 4,255 | |||||||||||
Balance (in shares) at Dec. 31, 2019 | 26,555,000 | 26,555,000 | |||||||||||
Balance at Dec. 31, 2019 | $ (132,822) | $ 26 | $ 1,374,230 | $ (7,958) | $ (1,498,409) | $ (711) | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities: | |||
Net loss | $ (138,169) | $ (61,075) | $ (44,166) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 85,713 | 88,416 | 73,429 |
Loss (gain) on disposal of property and equipment | 527 | (115) | (353) |
Gain on sale of business | (4,196) | 0 | 0 |
Goodwill and intangibles impairment | 59,126 | 0 | 0 |
Other impairments | 2,391 | 0 | 503 |
Amortization of debt discount and issuance costs | 5,398 | 4,084 | 2,309 |
Stock-based compensation expense, net of capitalized amount | 4,239 | 4,678 | 3,040 |
Equity in earnings of equity-method investment | 0 | 0 | (1,207) |
Provision for doubtful accounts | 899 | 882 | 1,049 |
Non-cash change in finance lease liabilities | 3,300 | 2,507 | 1,187 |
Non-cash change in exit activities and restructuring liability | 6,339 | 4,751 | 6,291 |
Non-cash change in deferred rent | 0 | (979) | (3,554) |
Deferred income taxes | (2,352) | 262 | 355 |
Loss on extinguishment and modification of debt | 0 | 0 | 6,785 |
Other, net | 47 | (10) | 304 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 3,272 | (359) | (769) |
Prepaid expenses, deposits and other assets | 4,576 | (1,232) | 2,051 |
Operating lease right-of-use assets | (3,798) | 0 | 0 |
Accounts payable | (3,076) | 1,546 | (949) |
Accrued and current other liabilities | (4,288) | (1,916) | 3,359 |
Accreted interest | 2,040 | 0 | 0 |
Deferred revenues | (1,496) | 1,220 | (1,297) |
Exit activities and restructuring liability | (4,237) | (6,966) | (6,178) |
Short and long-term operating lease liabilities | 6,117 | 0 | 0 |
Asset retirement obligation | 231 | (96) | (825) |
Other liabilities | 60 | (257) | 40 |
Net cash provided by operating activities | 22,663 | 35,341 | 41,404 |
Cash Flows from Investing Activities: | |||
Proceeds from sale of business | 3,200 | 0 | 0 |
Purchases of property and equipment | (31,867) | (38,505) | (35,932) |
Proceeds from disposal of property and equipment | 481 | 662 | 402 |
Business acquisition, net of cash acquired | 0 | (131,748) | 3,838 |
Additions to acquired and developed technology | (1,115) | (3,523) | (735) |
Net cash used in investing activities | (29,301) | (173,114) | (32,427) |
Cash Flows from Financing Activities: | |||
Proceeds from credit agreements | 20,000 | 148,500 | 316,900 |
Proceeds from stock issuance, net | 79 | 37,151 | 40,195 |
Principal payments on credit agreements | (5,327) | (23,251) | (339,900) |
Debt issuance costs | (4,071) | (7,302) | (12,777) |
Payments on finance lease obligations | (8,170) | (12,040) | (9,714) |
Proceeds from exercise of stock options | 0 | 0 | 421 |
Acquisition of non-controlling interests | (1,489) | (1,130) | 0 |
Acquisition of common stock for income tax withholdings | (312) | (488) | (235) |
Other, net | (65) | 110 | (345) |
Net cash provided by (used in) financing activities | 645 | 141,550 | (5,455) |
Effect of exchange rates on cash and cash equivalents | (181) | 5 | 130 |
Net (decrease) increase in cash and cash equivalents | (6,174) | 3,782 | 3,652 |
Cash and cash equivalents at beginning of period | 17,823 | 14,041 | 10,389 |
Cash and cash equivalents at end of period | 11,649 | 17,823 | 14,041 |
Supplemental Disclosures of Cash Flow Information: | |||
Cash paid for interest | 62,690 | 60,329 | 37,692 |
Additions to property and equipment included in accounts payable | $ 4,474 | $ 4,266 | $ 3,946 |
DESCRIPTION OF THE COMPANY AND
DESCRIPTION OF THE COMPANY AND NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF THE COMPANY AND NATURE OF OPERATIONS | DESCRIPTION OF THE COMPANY AND NATURE OF OPERATIONS Internap Corporation ("we," "us," "our," "INAP," or "the Company") is a leading-edge provider of high-performance data center, cloud and network solutions with 94 Points of Presence ("POPs") worldwide. INAP's full-spectrum portfolio of high-density colocation, managed cloud hosting and network solutions supports evolving IT infrastructure requirements for customers ranging from the Fortune 500 to emerging start-ups. INAP operates in 21 metropolitan markets, primarily in North America, connected by a low-latency, high-capacity network. We have over one million gross square feet in our portfolio and approximately 600,000 square feet of sellable data center space. Of the 21 major markets in our portfolio, we have a presence in 12 of the top 15 Metropolitan Statistical Areas ("MSAs") in the United States. Our major markets include: Atlanta, Boston, Chicago, Dallas, Houston, Los Angeles, Miami, New York/New Jersey, Northern Virginia, Phoenix, Seattle, and Silicon Valley. In addition, we have a strong presence in Montreal, the second largest city in Canada. Outside of North America, we have a strategic footprint in Amsterdam, Frankfurt, London, Hong Kong, Singapore, Sydney, Tokyo and Osaka. In addition, we operate a global IP network capable of delivering connectivity and high performance IP and optimizing quality of service for the most sophisticated customers. The network is designed to serve customers who require redundancy and low latency transport, as well as end-to-end traffic monitoring. Our network interconnects our customers through our data centers and POPs around the world, giving INAP significant footprint and global reach to access internal workloads, cloud service providers and the public internet. Restructuring Support Agreement and Chapter 11 On March 16, 2020, the Company filed voluntary petitions for relief (collectively, the “Chapter 11 Cases”) under Title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of New York, White Plains Division (the “Bankruptcy Court”) under the caption In re Internap Technology Solutions Inc. et al. The Chapter 11 Cases were filed after consultation between the Company and committee of certain holders of term loans (the “Ad Hoc Committee”) under the Company’s senior secured credit facility, regarding the restructuring of the Company’s capital structure. In connection with such consultations, the Company entered into a Restructuring Support Agreement (the “RSA”) with holders (the “Consenting Lenders”) of approximately 77% of the Company’s outstanding term loans. As set forth in the RSA, including all exhibits, annexes and schedules attached thereto, the “Term Sheet”, the Company and Consenting Lenders agreed to the principal terms of a financial restructuring (the “Restructuring”) of the Company. The Restructuring is to be implemented through a prepackaged Chapter 11 plan of reorganization (the “Plan”). The RSA contemplates a comprehensive deleveraging of the Company’s balance sheet. Specifically, the RSA and Term Sheet provide, in pertinent part, as follows: • The Company entered into debtor-in-possession financing structured as a delayed draw term loan (the “DIP Facility”) as discussed below. • The Company’s general unsecured creditors will be paid in full in the ordinary course of business. • The DIP Facility will convert into a priority exit facility (the “Priority Exit Facility”) upon the Company’s emergence from the Chapter 11 Cases. The Priority Exit Facility will have a 3-year maturity and bear interest at a rate of LIBOR + 1000 basis points payable in cash. • The Company will enter into a new term loan facility (the “New Term Loan Facility”) on the effective date of the Plan (the “Effective Date”). The New Term Loan Facility will provide for term loans in the principal amount of $225.0 million , mature 5 years after the Effective Date and bear interest at a rate of LIBOR + 650 basis points, 300 basis points of which will be paid in cash and 350 basis points will be paid in kind; provided that, at the election of the INAP board of directors post-Effective Date, 200 basis points of the LIBOR + 300 basis points cash interest may be payment in kind. • The lenders under the Credit Agreement dated April 6, 2017 by and among INAP, as borrower, certain of its subsidiaries as guarantors, Jefferies Finance LLC as administrative and collateral agent and the other lenders thereto (as amended, the “Credit Agreement”) will receive 100% of the new common stock initially issued by reorganized INAP post-Effective Date. • Holders of existing INAP common stock will receive warrants to purchase 10% of the new equity of reorganized INAP (the “Warrants”); provided that such holders provide releases. The Warrants will have a strike price calculated to imply an equity value at which the holders of claims under the Credit Agreement recover their principal amount of indebtedness under the Credit Agreement plus prepetition interest on their allowed loan claims (plus amounts outstanding under the New Term Loan Facility). The RSA includes certain milestones for the progress of the Chapter 11 Cases, which include the dates by which the Company is required to, among other things, obtain certain court orders and consummate the Restructuring. Financing Arrangements New Incremental Loans On March 13, 2020, the Company entered into an agreement to borrow $5.0 million of additional incremental term loans (the “New Incremental Loans”) under the Credit Agreement. The New Incremental Loans bear interest at a rate of LIBOR (with a 1.0% floor) + 1000 basis points. Use of Proceeds . The Company used the proceeds of the New Incremental Loans to, among other things, (i) fund the ordinary course payments, working capital needs and other expenditures of the Company in advance of and during the Chapter 11 Cases, (ii) pay certain fees, interest, payments and expenses related to the Chapter 11 Cases, and (iii) pay fees and expenses related to the transactions contemplated by the New Incremental Loans in accordance with such budget. Priority . Priority for the New Incremental Loans are pari passu with the existing term loans under the Credit Agreement. Affirmative and Negative Covenants. The New Incremental Loans are subject to the same as those under the Credit Agreement, as amended by the Eighth Amendment (as hereinafter defined). Events of Default . The events of default for the New Incremental Loans are the same as those under the Credit Agreement, as amended by the Eighth Amendment. Maturity . The New Incremental Loans will mature on the earliest of: (i) September 11, 2020; (ii) the sale of substantially all of the Company’s assets; (iii) the date of the consummation of the Plan or (iv) certain accelerations of the obligations under the Credit Agreement. Incremental and Eighth Amendment to Credit Agreement In connection with the New Incremental Loans, the Company entered into the Incremental and Eighth Amendment to Credit Agreement (the “Eighth Amendment”) on March 13, 2020. The Eighth Amendment, among other things: (i) authorizes the incremental commitment for the New Incremental Loans under the Credit Agreement; (ii) grants additional security interests in favor of the lenders for the Company’s motor vehicles and outstanding equity interests of certain foreign subsidiaries; and (iii) adds Internap Technology Solutions Inc. as a party to the Credit Agreement. In addition, the Eighth Amendment amended (i) the affirmative covenants to, among other things, require the Company to provide a cash receipt and disbursement budget and rolling 13-week forecasts of the same and to meet certain milestones with respect to the Chapter 11 Cases, including solicitation of the Plan, entry into the DIP Facility, and confirmation of the Plan by the Bankruptcy Court; and (ii) the negative covenants to, among other things: (A) further limit the debt the Company can borrow and repay; (B) eliminate the ability of the Company to incur liens for sale and leaseback transactions, incremental debt and equity interests and real property; (C) further limit the ability of the Company to make investments; (D) eliminate the ability of the Company to engage in mergers; (E) further limit dispositions and acquisitions of certain property; (F) eliminate the ability of the Company to pay dividends or make redemptions; (G) further limit the Company’s ability to engage in transactions with affiliates and (H) eliminate the leverage and interest coverage ratio covenants. The Eighth Amendment further amended the events of default to provide that it will be an event of default for the New Incremental Loans if, among other things, the Company uses the proceeds from the New Incremental Loans in a manner outside of the budget, subject to certain variances or in connection with the Chapter 11 Cases, or the Company supports a plan of reorganization or disclosure statement that does not repay the obligations as set forth in the RSA. Event of Default The filing of the Chapter 11 Cases constituted an event of default that accelerated the Company’s obligations under the Credit Agreement, as a result of which the principal and interest due thereunder became immediately due and payable. The ability of the lenders to enforce such payment obligations under the Credit Agreement is automatically stayed as a result of the Chapter 11 Cases, and the lenders’ rights of enforcement in respect of obligations under the Credit Agreement are subject to the applicable provisions of the Bankruptcy Code. DIP Facility On March 19, 2020, the Company, entered into a Senior Secured Super-Priority Debtor-In-Possession Credit Agreement (the “DIP Facility”) with Jefferies Finance LLC (“Jefferies”), as administrative agent and collateral agent, and the lenders party thereto (the “DIP Lenders”). On March 19, 2020, the Bankruptcy Court entered an interim order (the “Interim Order”) to approve the DIP Facility and the parties entered into such DIP Facility on the terms approved by the Bankruptcy Court. The DIP Facility provides for, among other things, term loans in an aggregate principal amount of up to $75.0 million , (including the roll up of $5.0 million of New Incremental Loans) under the Credit Agreement. All loans under the DIP Facility bear interest at a rate of either: (i) an applicable base rate plus 9% per annum or (ii) LIBOR (with a floor of 1% ) plus 10% per annum. Use of Proceeds. The Company anticipates using the proceeds of the DIP Facility to, among other things: (i) pay certain fees, interest, payments and expenses related to the Chapter 11 Cases; (ii) fund the working capital needs and expenditures of the Company during the Chapter 11 Cases; (iii) fund the Carve-Out (as defined below); and (iv) pay other related fees and expenses in accordance with budgets provided to the DIP Lenders. Priority and Collateral. The DIP Lenders (subject to the Carve-Out as discussed below): (i) are entitled to joint and several super-priority administrative expense claim status in the Chapter 11 Cases; (ii) have a first priority lien on substantially all unencumbered assets of the Company; and (iii) have a priming first priority lien on any assets encumbered by the Credit Agreement. The Company’s obligations to the DIP Lenders and the liens and super-priority claims are subject in each case to a carve out (the “Carve-Out”) that accounts for certain administrative, court and legal fees payable in connection with the Chapter 11 Cases. Affirmative and Negative Covenants. The DIP Facility contains certain affirmative and negative covenants, including requiring the Company to provide to the DIP Lenders a budget for the use of the Company’s funds and the achievement of certain milestones for the Chapter 11 Cases, among other covenants customary in debtor-in-possession financings. Events of Default. The DIP Facility contains certain events of default customary in debtor-in-possession financings, including: (i) the failure to pay loans made under the DIP Facility when due; (ii) appointment of a trustee, examiner or receiver in the Chapter 11 Cases; (iii) certain violations of the Restructuring Support Agreement dated March 13, 2020, between the Company and the lenders party thereto; and (iv) the failure of the Company to use the proceeds of the loans under the DIP Facility as set forth in the budget (subject to any approved variances). Maturity. The DIP Facility will mature on the earliest of (i) September 16, 2020; (ii) the date on which the loans under the DIP Facility become due and payable, whether by acceleration or otherwise; (iii) the effective date of the Plan; (iv) the sale of substantially all of the assets of the Company; (v) the first business day on which the order approving the DIP Facility by the Bankruptcy Court expires by its terms, unless a final order has been entered and become effective prior thereto; (vi) the conversion or dismissal of the Chapter 11 Cases; (vii) dismissal of any of the Chapter 11 Cases unless consented to by the DIP Lenders or (viii) the final order approving the DIP Facility by the Bankruptcy Court is vacated, terminated, rescinded, revoked, declared null and void or otherwise ceases to be in full force and effect. Nasdaq Delisting On March 17, 2020, INAP received a letter (the “Nasdaq Letter”) from the staff of the Nasdaq Listing Qualifications Department (the “Staff”) notifying INAP that, as a result of the Chapter 11 Cases and in accordance with Nasdaq Listing Rules 5101, 5110(b) and IM-5101-1, INAP’s common stock will be delisted from The Nasdaq Stock Market (“Nasdaq”). The Nasdaq Letter stated that the Staff’s determination was based on: (i) the filing of the Chapter 11 Cases and associated public interest concerns raised by such Chapter 11 Cases; (ii) concerns regarding the residual equity interest of the existing listed securities holders; and (iii) concerns about INAP’s ability to sustain compliance with all requirements of continued listing on Nasdaq. INAP elected not to appeal this determination to a Nasdaq Hearings Panel and the trading of the common stock was suspended at the opening of business on March 26, 2020, and a Form 25-NSE was filed with the Securities and Exchange Commission (the “SEC”), which removed the common stock from listing and registration on Nasdaq. INAP’s Common Stock is quoted on the Over-the-Counter (“OTC”) Market under the symbol “INAPQ.” |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Principles and Basis of Presentation We prepare our consolidated financial statements and accompanying notes in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. We have eliminated inter-company transactions and balances in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation. Going Concern The accompanying consolidated financial statements have been prepared in accordance with GAAP, assuming the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. The Company has experienced negative financial trends, such as operating losses, working capital deficiencies, negative cash flows and other adverse key financial ratios. The Company reported net losses attributable to shareholders of $138.3 million and $61.2 million for the years ended December 31, 2019 and 2018, respectively. The working capital deficit as of December 31, 2019 was $442.0 million compared to $6.5 million as of December 31, 2018. The increase was primarily due to the term loan of $413.3 million being classified as a current liability as of December 31, 2019. These trends, along with the resulting liquidity constraints and debt covenant compliance considerations, led to INAP’s Chapter 11 Cases, which raise substantial doubt about the Company’s ability to continue as a going concern. As a result of this uncertainty and the substantial doubt about our ability to continue as a going concern as of December 31, 2019, the report of our independent registered public accounting firm in this Annual Report on Form 10-K for the years ended December 31, 2019 and 2018 includes a going concern explanatory paragraph. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Estimates and Assumptions The preparation of these financial statements with GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expense and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, doubtful accounts, goodwill and intangible assets, accruals, stock-based compensation, income taxes, restructuring charges, leases, long-term service contracts, useful lives, contingencies and litigation. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates. Cash and Cash Equivalents We consider all highly-liquid investments purchased with an original maturity of three months or less at the date of purchase and money market mutual funds to be cash equivalents. We maintain our cash and cash equivalents at major financial institutions and may at times exceed federally insured limits. We believe that the risk of loss is minimal. To date, we have not experienced any losses related to cash and cash equivalents. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consist of amounts due to the Company from normal business activities. The Company maintains an allowance for estimated losses resulting from the inability of its customers to make required payments. The Company estimates uncollectible amounts based upon historical bad debts, current customer receivable balances, the age of customer receivable balances, the customer's financial condition and current economic trends. Investment in Affiliates and Other Entities In the normal course of business, INAP enters into various types of investment arrangements, each having unique terms and conditions. These investments may include equity interests held by INAP in business entities, including general or limited partnerships, contractual ventures, or other forms of equity participation. The Company determines whether such investments involve a variable interest entity ("VIE") based on the characteristics of the subject entity. If the entity is determined to be a VIE, then management determines if INAP is the primary beneficiary of the entity and whether or not consolidation of the VIE is required. The primary beneficiary consolidating the VIE must normally have both (i) the power to direct the activities of a VIE that most significantly affect the VIE's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE, in either case that could potentially be significant to the VIE. When INAP is deemed to be the primary beneficiary, the VIE is consolidated and the other party's equity interest in the VIE is accounted for as a noncontrolling interest. If an entity fails to meet the characteristics of a VIE, the Company then evaluates such entity under the voting model. Under the voting model, the Company consolidates the entity if they determine that they, directly or indirectly, have greater than 50% of the voting shares, and determine that other equity holders do not have substantive participating rights. In previous years, INAP invested $4.1 million in Internap Japan Co., Ltd., our joint venture with NTT-ME Corporation ("NTT-ME") and Nippon Telegraph and Telephone Corporation. Through August 15, 2017, we qualified and accounted for this investment using the equity method. We recorded our proportional share of the income and losses of Internap Japan one month in arrears on the accompanying consolidated balance sheets as a long-term investment and our share of Internap Japan's income and losses, net of taxes, as a separate caption in our accompanying consolidated statements of operations and comprehensive loss. On August 15, 2017, INAP exercised certain rights to obtain a controlling interest in Internap Japan Co., Ltd. Upon obtaining control of the venture, we recognized Internap Japan's assets and liabilities at fair value resulting in a gain of $1.1 million . Once INAP obtained control of the Internap Japan Co., Ltd. venture, the investment was consolidated with INAP using the voting model. On January 15, 2019, NTT-ME exercised its first put option that resulted in NTT-ME having an ownership of 15% and INAP of 85% . The put option was exercised at $1.0 million which represents the fair market value of the shares purchased. INAP accelerated its second call option to purchase NTT - ME’s remaining shares in Internap Japan on December 25, 2019, completing the purchase of NTT - ME’s shares at a fair market value of approximately $0.5 million . Noncontrolling Interest Noncontrolling interests ("NCI") are evaluated by the Company and are shown as either a liability, temporary equity (shown between liabilities and equity) or as permanent equity depending on the nature of the redeemable features at amounts based on formulas specific to each entity. Generally, mandatorily redeemable NCIs are classified as liabilities and non-mandatorily redeemable NCIs are classified outside of stockholders' equity in the consolidated balance sheets as temporary equity under the caption, redeemable noncontrolling interests, and are measured at their redemption values at the end of each period. If the redemption value is greater than the carrying value, an adjustment is recorded in retained earnings to record the NCI at its redemption value. Redeemable NCIs that are mandatorily redeemable are classified as a liability in the consolidated balance sheets under either other current liabilities or other long-term liabilities, depending on the remaining duration until settlement, and are measured at the amount of cash that would be paid if settlement occurred at the balance sheet date with any change from the prior period recognized as interest expense. If the NCI is not currently redeemable yet probable of becoming redeemable, we are required to either (1) accrete changes in the redemption value over the period from the date of issuance to the earliest redemption date of the instrument using an appropriate methodology, usually the interest method, or (2) recognize changes in the redemption value immediately as they occur and adjust the carrying value of the security to equal the redemption value at the end of each reporting period. We have elected to recognize changes in the redemption value immediately as they occur and adjust the carrying value of the NCI to the greater of the estimated redemption value, which approximates fair value, at the end of each reporting period or the initial carrying amount. Net income attributable to NCIs reflects the portion of the net loss of consolidated entities applicable to the NCI stockholders in the accompanying consolidated statements of operations. The net income attributable to NCI is classified in the consolidated statements of operations as part of consolidated net loss and deducted from total consolidated net loss to arrive at the net loss attributable to the Company. Fair Value of Financial Instruments The carrying amounts of our financial instruments, including cash and cash equivalents, accounts receivable and other current liabilities, approximate fair value due to the short-term nature of these assets and liabilities. We measure and report certain financial assets and liabilities at fair value on a recurring basis, including cash equivalents. The major categories of nonfinancial assets and liabilities that we measure at fair value include reporting units measured at fair value in step one of our goodwill and intangibles impairment test. Financial Instrument Credit Risk Financial instruments that potentially subject us to a concentration of credit risk principally consist of cash and cash equivalents, marketable securities, accounts receivable and accounts payable. Given the needs of our business, we may invest our cash and cash equivalents in money market funds. Property and Equipment We carry property and equipment at original acquisition cost less accumulated depreciation. We calculate depreciation on a straight-line basis over the estimated useful lives of the assets. Estimated useful lives used for network equipment are generally five years ; furniture, equipment and software are three to seven years ; and leasehold improvements are the shorter of the lease term or their estimated useful lives . We capitalize additions and improvements that increase the value or extend the life of an asset. We expense maintenance and repairs as incurred. We charge gains or losses from disposals of property and equipment to operations. Leases We lease certain data centers, office space, partner sites and equipment. An arrangement is considered to be a lease if the agreement conveys the right to control the use of the identified asset in exchange for consideration. We record leases as either finance leases or operating leases. The duration of lease obligations and commitments ranges from two years to 34 years for facilities. Equipment leases are included in this range. See Note 2, "Recent Accounting Pronouncements," for information about the new lease standard and Note 14, "Leases," for further detail. Revisions of Previously Issued Financial Statements The Company corrected an error in the consolidated statements of cash flows for all periods in 2017, 2018, the three months ended March 31, 2019 and the six months ended June 30, 2019 during the quarter ended September 30, 2019 related to the overstatement of depreciation expense. The Company has evaluated this correction in accordance with Accounting Standards Codification ("ASC") 250-10-S99, Securities and Exchange Commission "SEC" Materials (formerly SEC Staff Accounting Bulletin 99, Materiality ) and concluded that the correction was not material. In addition, the Company corrected certain other errors in the consolidated statements of operations and comprehensive loss and consolidated balance sheets for all periods in 2017, 2018, the three months ended March 31, 2019, the three and six months ended June 30, 2019, and the three and nine months ended September 30, 2019. The adjustments to the Company’s previously issued consolidated statements of cash flows are as follows (in thousands): Three Months Ended March 31, 2017 As reported Adjustments As revised Net loss $ (8,230 ) $ 184 $ (8,046 ) Depreciation and amortization $ 17,745 $ (184 ) $ 17,561 Six Months Ended June 30, 2017 As reported Adjustments As revised Net loss $ (27,513 ) $ 573 $ (26,940 ) Depreciation and amortization 36,679 (363 ) 36,316 Amortization of debt discount and issuance costs $ 1,292 $ (210 ) $ 1,082 Nine Months Ended September 30, 2017 As reported Adjustments As revised Net loss $ (38,377 ) $ 821 $ (37,556 ) Depreciation and amortization 57,596 (960 ) 56,636 Amortization of debt discount and issuance costs 1,890 (210 ) 1,680 Non-cash change in finance lease liabilities 564 349 913 Prepaid expenses, deposits and other assets 1,979 (579 ) 1,400 Accounts payable $ (2,168 ) $ 579 $ (1,589 ) Year Ended December 31, 2017 As reported Adjustments As revised Net loss $ (45,273 ) $ 1,107 $ (44,166 ) Depreciation and amortization 74,993 (1,564 ) 73,429 Amortization of debt discount and issuance costs 2,519 (210 ) 2,309 Non-cash change in finance lease liabilities 520 667 1,187 Accounts receivable (207 ) (562 ) (769 ) Net cash provided by operating activities 41,966 (562 ) 41,404 Net (decrease) increase in cash and cash equivalents 4,214 (562 ) 3,652 Cash and cash equivalents at end of period $ 14,603 $ (562 ) $ 14,041 Three Months Ended March 31, 2018 As reported Adjustments As revised Net loss $ (14,261 ) $ 610 $ (13,651 ) Depreciation and amortization 21,158 (635 ) 20,523 Amortization of debt discount and issuance costs 638 420 1,058 Non-cash change in finance lease liabilities (213 ) (1,212 ) (1,425 ) Accounts receivable 864 379 1,243 Prepaid expenses, deposits and other assets (467 ) (544 ) (1,011 ) Accrued and other liabilities (2,904 ) 83 (2,821 ) Deferred revenues (138 ) 1,461 1,323 Net cash provided by operating activities 3,573 562 4,135 Net (decrease) increase in cash and cash equivalents 1,556 562 2,118 Cash and cash equivalents at beginning of period $ 14,603 $ (562 ) $ 14,041 Six Months Ended June 30, 2018 As reported Adjustments As revised Net loss $ (28,517 ) $ 1,087 $ (27,430 ) Depreciation and amortization 43,870 (1,168 ) 42,702 Amortization of debt discount and issuance costs 1,712 420 2,132 Stock-based compensation expense, net of capitalized amount 2,232 96 2,328 Non-cash change in finance lease liabilities (371 ) (820 ) (1,191 ) Accounts receivable (2,165 ) 88 (2,077 ) Prepaid expenses, deposits and other assets (4,073 ) (436 ) (4,509 ) Accrued and other liabilities (585 ) (166 ) (751 ) Deferred revenues 1,249 1,461 2,710 Net cash provided by operating activities 14,935 562 15,497 Net (decrease) increase in cash and cash equivalents 136 562 698 Cash and cash equivalents at beginning of period $ 14,603 $ (562 ) $ 14,041 Nine Months Ended September 30, 2018 As reported Adjustments As revised Net loss $ (43,971 ) $ 1,726 $ (42,245 ) Depreciation and amortization 67,422 (1,712 ) 65,710 Amortization of debt discount and issuance costs 2,798 420 3,218 Stock-based compensation expense, net of capitalized amount 3,573 96 3,669 Non-cash change in finance lease liabilities (241 ) (774 ) (1,015 ) Accounts receivable (4,990 ) 132 (4,858 ) Prepaid expenses, deposits and other assets (3,531 ) (436 ) (3,967 ) Accrued and other liabilities (601 ) (351 ) (952 ) Deferred revenues 617 1,461 2,078 Net cash provided by operating activities 24,381 562 24,943 Net (decrease) increase in cash and cash equivalents (2,759 ) 562 (2,197 ) Cash and cash equivalents at beginning of period $ 14,603 $ (562 ) $ 14,041 Year Ended December 31, 2018 As reported Adjustments As revised Net loss $ (62,375 ) $ 1,300 $ (61,075 ) Depreciation and amortization 90,676 (2,260 ) 88,416 Amortization of debt discount and issuance costs 3,874 210 4,084 Non-cash change in finance lease liabilities 2,640 (133 ) 2,507 Accounts receivable (1,352 ) 993 (359 ) Accrued and other liabilities (1,583 ) (333 ) (1,916 ) Deferred revenues 435 785 1,220 Net cash provided by operating activities 34,779 562 35,341 Net (decrease) increase in cash and cash equivalents 3,220 562 3,782 Cash and cash equivalents at beginning of period $ 14,603 $ (562 ) $ 14,041 Three Months Ended March 31, 2019 As reported Adjustments As revised Net loss $ (19,622 ) $ (363 ) $ (19,985 ) Depreciation and amortization 22,178 (2 ) 22,176 Stock-based compensation expense, net of capitalized amount 890 (371 ) 519 Non-cash change in finance lease liabilities 148 (276 ) (128 ) Accounts receivable (1,617 ) 431 (1,186 ) Accrued and other liabilities (2,238 ) (325 ) (2,563 ) Deferred revenues $ (262 ) $ 906 $ 644 Six Months Ended June 30, 2019 As reported Adjustments As revised Net loss $ (38,157 ) $ 210 $ (37,947 ) Depreciation and amortization 44,133 (812 ) 43,321 Stock-based compensation expense, net of capitalized amount 1,901 (371 ) 1,530 Non-cash change in finance lease liabilities 3,520 (150 ) 3,370 Accounts receivable 1,210 1,135 2,345 Accrued and other liabilities (3,146 ) (325 ) (3,471 ) Deferred revenues $ (323 ) $ 313 $ (10 ) Nine Months Ended September 30, 2019 As reported Adjustments As revised Net loss $ (62,006 ) $ (3 ) $ (62,009 ) Depreciation and amortization 65,715 (1,395 ) 64,320 Non-cash change in finance lease liabilities 4,863 (357 ) 4,506 Accounts receivable 1,593 1,135 2,728 Accrued and other liabilities (5,378 ) (325 ) (5,703 ) Deferred revenues $ (804 ) $ 231 $ (573 ) The Company corrected an error in the consolidated statements of operations and comprehensive loss and consolidated balance sheets for all periods in 2017, 2018, the three months ended March 31, 2019, the three and six months ended June 30, 2019, and the three and nine months ended September 30, 2019. The Company had previously overstated the amount of depreciation expense. The amount of the correction was $1.5 million , $2.0 million and $1.6 million for the years ended December 31, 2019, 2018 and 2017, respectively. Additionally, the correction of this error resulted in the understatement of the property and equipment, net and accumulated deficit in the consolidated balance sheets of $1.5 million and $4.1 million as of December 31, 2019 and 2018, respectively. The amount of $4.1 million as of December 31, 2018 includes $2.1 million of a beginning retained earnings adjustment based on the cumulative impact of prior period corrections. The Company has evaluated this correction in accordance with ASC 250-10-S99, SEC Materials (formerly SEC Staff Accounting Bulletin 99, Materiality ) and concluded that the correction was not material. In addition, the Company corrected certain other errors in the consolidated statements of operations and comprehensive loss and consolidated balance sheets for all periods in 2017, 2018, the three months ended March 31, 2019, the three and six months ended June 30, 2019, and the three and nine months ended September 30, 2019. The adjustments to the Company’s annual and quarterly previously issued consolidated statements of operations and comprehensive loss and consolidated balance sheets are as follows (in thousands): For the quarter ended March 31, 2017 As reported Adjustments As revised Depreciation and amortization - QTD $ 17,745 $ (184 ) $ 17,561 Depreciation and amortization - YTD 17,745 (184 ) 17,561 Net loss attributable to shareholders - QTD (8,230 ) 184 (8,046 ) Net loss attributable to shareholders - YTD (8,230 ) 184 (8,046 ) Property and equipment, net 291,583 689 292,272 Total assets 415,108 689 415,797 Accumulated deficit (1,286,579 ) 689 (1,285,890 ) Total stockholders' equity (deficit) $ 29,302 $ 689 $ 29,991 For the quarter ended June 30, 2017 As reported Adjustments As revised Depreciation and amortization - QTD $ 18,934 $ (179 ) $ 18,755 Depreciation and amortization - YTD 36,679 (363 ) 36,316 Interest expense - QTD 17,145 (210 ) 16,935 Interest expense - YTD 25,282 (210 ) 25,072 Net loss attributable to shareholders - QTD (19,283 ) 389 (18,894 ) Net loss attributable to shareholders - YTD (27,513 ) 573 (26,940 ) Property and equipment, net 427,873 868 428,741 Total assets 561,068 868 561,936 Term loan, less discount and issuance costs 288,254 (210 ) 288,044 Total liabilities 550,561 (210 ) 550,351 Accumulated deficit (1,305,894 ) 1,078 (1,304,816 ) Total stockholders' equity (deficit) $ 10,507 $ 1,078 $ 11,585 For the quarter ended September 30, 2017 As reported Adjustments As revised Depreciation and amortization - QTD $ 20,917 $ (597 ) $ 20,320 Depreciation and amortization - YTD 57,596 (960 ) 56,636 Interest expense - QTD 12,299 349 12,648 Interest expense - YTD 37,581 139 37,720 Net loss attributable to shareholders - QTD (10,895 ) 248 (10,647 ) Net loss attributable to shareholders - YTD (38,409 ) 822 (37,587 ) Prepaid expenses and other assets 9,036 579 9,615 Property and equipment, net 441,239 1,465 442,704 Total assets 567,432 2,044 569,476 Accounts payable 16,732 579 17,311 Capital lease obligations - current 11,729 (1,445 ) 10,284 Capital lease obligations - noncurrent 206,927 1,794 208,721 Term loan, less discount and issuance costs 288,034 (210 ) 287,824 Total liabilities 562,822 928 563,750 Accumulated deficit (1,316,788 ) 1,326 (1,315,462 ) Total stockholders' equity (deficit) $ 4,610 $ 1,326 $ 5,936 For the quarter ended December 31, 2017 As reported Adjustments As revised Depreciation and amortization - QTD $ 17,397 $ (604 ) $ 16,793 Depreciation and amortization - YTD 74,993 (1,564 ) 73,429 Interest expense - QTD 12,895 318 13,213 Interest expense - YTD 50,476 457 50,933 Net loss attributable to shareholders - QTD (6,934 ) 285 (6,649 ) Net loss attributable to shareholders - YTD (45,343 ) 1,107 (44,236 ) Cash and cash equivalents 14,603 (562 ) 14,041 Accounts receivable, net 17,794 562 18,356 Property and equipment, net 458,565 2,069 460,634 Total assets 586,525 2,069 588,594 Accrued liabilities 15,908 318 16,226 Capital lease obligations - current 11,711 (1,445 ) 10,266 Capital lease obligations - noncurrent 223,749 1,794 225,543 Term loan, less discount and issuance costs 287,845 (210 ) 287,635 Total liabilities 587,557 457 588,014 Accumulated deficit (1,323,723 ) 1,612 (1,322,111 ) Total stockholders' (deficit) equity $ (1,032 ) $ 1,612 $ 580 For the quarter ended March 31, 2018 As reported Adjustments As revised Net revenues - QTD $ 74,201 $ (379 ) $ 73,822 Net revenues - YTD 74,201 (379 ) 73,822 Cost of sales and services, exclusive of depreciation and amortization - QTD 24,607 170 24,777 Cost of sales and services, exclusive of depreciation and amortization - YTD 24,607 170 24,777 Sales, general and administrative - QTD 19,854 (53 ) 19,801 Sales, general and administrative - YTD 19,854 (53 ) 19,801 Depreciation and amortization - QTD 21,158 (635 ) 20,523 Depreciation and amortization - YTD 21,158 (635 ) 20,523 Interest expense - QTD 15,604 (471 ) 15,133 Interest expense - YTD 15,604 (471 ) 15,133 Net loss attributable to shareholders - QTD (14,288 ) 610 (13,678 ) Net loss attributable to shareholders - YTD (14,288 ) 610 (13,678 ) Accounts receivable, net 17,524 (379 ) 17,145 Contract assets - current 7,131 366 7,497 Property and equipment, net 471,752 4,687 476,439 Goodwill 118,077 (980 ) 117,097 Contract assets - noncurrent 12,056 70 12,126 Total assets 742,358 3,764 746,122 Accrued liabilities 14,279 (83 ) 14,196 Deferred revenues - current 5,871 660 6,531 Capital lease obligations - current 10,095 (67 ) 10,028 Other long-term liabilities 3,046 801 3,847 Capital lease obligations - noncurrent 234,199 2,298 236,497 Total liabilities 733,748 3,609 737,357 Accumulated deficit (1,313,826 ) 3,217 (1,310,609 ) Total stockholders' (deficit) equity $ 8,594 $ 3,217 $ 11,811 For the quarter ended June 30, 2018 As reported Adjustments As revised Net revenues - QTD $ 81,962 $ 291 $ 82,253 Net revenues - YTD 156,163 (88 ) 156,075 Cost of sales and services, exclusive of depreciation and amortization - QTD 27,331 307 27,638 Cost of sales and services, exclusive of depreciation and amortization - YTD 51,938 477 52,415 Sales, general and administrative - QTD 19,602 (11 ) 19,591 Sales, general and administrative - YTD 39,456 (64 ) 39,392 Depreciation and amortization - QTD 22,712 (533 ) 22,179 Depreciation and amortization - YTD 43,870 (1,168 ) 42,702 Interest expense - QTD 16,739 51 16,790 Interest expense - YTD 32,343 (420 ) 31,923 Net loss attributable to shareholders - QTD (14,279 ) 477 (13,802 ) Net loss attributable to shareholders - YTD (28,567 ) 1,087 (27,480 ) Accounts receivable, net 20,251 (88 ) 20,163 Property and equipment, net 463,273 5,155 468,428 Goodwill 735,022 5,067 740,089 Total assets 17,059 (166 ) 16,893 Capital lease obligations - current 10,246 9 10,255 Capital lease obligations - noncurrent 231,576 2,420 233,996 Total liabilities 740,583 2,263 742,846 Additional paid-in-capital 1,329,368 (102 ) 1,329,266 Accumulated deficit (1,329,086 ) 2,699 (1,326,387 ) Total stockholders' (deficit) equity $ (5,605 ) $ 2,597 $ (3,008 ) For the quarter ended September 30, 2018 As reported Adjustments As revised Net revenues - QTD $ 82,972 $ (44 ) $ 82,928 Net revenues - YTD 239,135 (132 ) 239,003 Cost of sales and services, exclusive of depreciation and amortization - QTD 28,221 (9 ) 28,212 Cost of sales and services, exclusive of depreciation and amortization - YTD 80,160 468 80,628 Sales, general and administrative - QTD 18,170 (185 ) 17,985 Sales, general and administrative - YTD 57,625 (249 ) 57,376 Depreciation and amortization - QTD 23,553 (544 ) 23,009 Depreciation and amortization - YTD 67,422 (1,712 ) 65,710 Interest expense - QTD 17,794 55 17,849 Interest expense - YTD 50,138 (365 ) 49,773 Net loss attributable to shareholders - QTD (15,479 ) 639 (14,840 ) Net loss attributable to shareholders - YTD (44,046 ) 1,726 (42,320 ) Accounts receivable, net 22,999 (132 ) 22,867 Property and equipment, net 487,616 5,699 493,315 Total assets 756,231 5,567 761,798 Accrued liabilities 17,866 (249 ) 17,617 Capital lease obligations - current 9,399 86 9,485 Capital lease obligations - noncurrent 263,676 2,391 266,067 Total liabilities 776,154 2,228 778,382 Accumulated deficit (1,344,566 ) 3,338 (1,341,228 ) Total stockholders' (deficit) equity $ (19,923 ) $ 3,338 $ (16,585 ) For the quarter ended December 31, 2018 As reported Adjustments As revised Net revenues - QTD $ 78,238 $ (1,083 ) $ 77,155 Net revenues - YTD 317,373 (1,215 ) 316,158 Cost of sales and services, exclusive of depreciation and amortization - QTD 27,102 (80 ) 27,022 Cost of sales and services, exclusive of depreciation and amortization - YTD 107,262 387 107,649 Sales, general and administrative - QTD 17,731 (83 ) 17,648 Sales, general and administrative - YTD 75,356 (333 ) 75,023 Depreciation and amortization - QTD 23,254 (544 ) 22,710 Depreciation and amortization - YTD 90,676 (2,260 ) 88,416 Interest expense - QTD 17,994 55 18,049 Interest expense - YTD 68,132 (309 ) 67,823 Net loss attributable to shareholders - QTD (18,454 ) (426 ) (18,880 ) Net loss attributable to shareholders - YTD (62,500 ) 1,300 (61,200 ) Accounts receivable, net 20,054 (431 ) 19,623 Property and equipment, net 478,061 6,245 484,306 Total assets 744,931 5,814 750,745 Accrued liabilities 15,540 (333 ) 15,207 Deferred revenues - current 8,022 440 8,462 Capital lease obligations - current 9,080 91 9,171 Deferred revenues - noncurrent 511 345 856 Capital lease obligations - noncurrent 262,382 2,359 264,741 Total liabilities 744,874 2,902 747,776 Accumulated deficit (1,363,019 ) 2,912 (1,360,107 ) Total stockholders' (deficit) equity $ 57 $ 2,912 $ 2,969 For the quarter ended March 31, 2019 As reported Adjustments As revised Net revenues - QTD $ 73,564 $ 309 $ 73,873 Net revenues - YTD 73,564 309 73,873 Cost of sales and services, exclusive of depreciation and amortization - QTD 25,733 (84 ) 25,649 Cost of sales and services, exclusive of depreciation and amortization - YTD 25,733 (84 ) 25,649 Sales, general and administrative - QTD 17,521 704 18,225 Sales, general and administrative - YTD 17,521 704 18,225 Depreciation and amortization - QTD 22,178 (2 ) 22,176 Depreciation and amortization - YTD 22,178 (2 ) 22,176 Interest expense - QTD 17,447 54 17,501 Interest expense - YTD 17,447 54 17,501 Net loss attributable to shareholders - QTD (19,644 ) (363 ) (20,007 ) Net loss attributable to shareholders - YTD (19,644 ) (363 ) (20,007 ) Property and equipment, net 229,185 4,206 233,391 Finance lease right-of-use assets 236,077 2,042 238,119 Total assets 748,342 6,248 754,590 Deferred revenues - current 7,881 439 8,320 Short-term finance lease liabilities 8,328 93 8,421 Deferred revenues - noncurrent 341 467 808 Finance lease liabilities 262,632 2,327 264,959 Total liabilities 768,314 3,326 771,640 Additional paid-in-capital 1,369,815 371 1,370,186 Accumulated deficit (1,382,715 ) 2,549 (1,380,166 ) Total stockholders' (deficit) equity $ (19,972 ) $ 2,549 $ (17,423 ) For the quarter ended June 30, 2019 As reported Adjustments As revised Net revenues - QTD $ 73,134 $ (112 ) $ 73,022 Net revenues - YTD 146,698 (30 ) 146,668 Cost of sales and services, exclusive of depreciation and amortization - QTD 25,949 96 26,045 Cost of sales and services, exclusive of depreciation and amortization - YTD 51,682 12 51,694 Sales, general and administrative - QTD 15,683 (371 ) 15,312 Sales, general and administrative - YTD 33,204 — 33,204 Depreciation and amortization - QTD 21,955 (450 ) 21,505 Depreciation and amortization - YTD 44,133 (812 ) 43,321 Interest expense - QTD 19,218 40 19,258 Interest expense - YTD 36,665 94 36,759 Net loss attributable to shareholders - QTD (18,555 ) 573 (17,982 ) Net loss attributable to shareholders - YTD (38,199 ) 210 (37,989 ) Accounts receivable, net 18,563 (704 ) 17,859 Property and equipment, net 223,497 4,713 228,210 Finance lease right-of-use assets 229,228 1,895 231,123 Total assets 740,796 5,904 746,700 Deferred revenues - current 7,917 (71 ) 7,846 Short-term finance lease liabilities 5,930 181 6,111 Deferred revenues - noncurrent 312 384 696 Finance lease liabilities 262,476 2,289 264,765 Total liabilities 778,329 2,783 781,112 Accumulated deficit (1,401,270 ) 3,122 (1,398,148 ) Total stockholders' (deficit) equity $ (37,533 ) $ 3,122 $ (34,411 ) For the quarter ended September 30, 2019 As reported Adjustments As revised Net revenues - QTD $ 72,878 $ 82 $ 72,960 Net revenues - YTD 219,576 52 219,628 Cost of sales and services, exclusive of depreciation and amortization - QTD 27,504 45 27,549 Cost of sales and services, exclusive of depreciation and amortization - YTD 79,186 57 79,243 Depreciation and amortization - QTD 21,582 (583 ) 20,999 Depreciation and amortization - YTD 65,715 (1,395 ) 64,320 Exit activities, restructuring and impairments - QTD 3,792 1,126 4,918 Exit activities, restructuring and impairments - YTD 5,439 1,126 6,565 Interest expense - QTD 19,913 (293 ) 19,620 Interest expense - YTD 56,578 (199 ) 56,379 Net loss attributable to shareholders - QTD (23,870 ) (213 ) (24,083 ) Net loss attributable to shareholders - YTD (62,069 ) (3 ) (62,072 ) Accounts receivable, net 17,948 (704 ) 17,244 Property and equipment, net 216,548 4,097 220,645 Finance lease right-of-use assets 226,619 (196 ) 226,423 Total assets 724,701 3,197 727,898 Deferred revenues - current 7,493 (71 ) 7,422 Short-term finance lease liabilities 5,867 12 5,879 Deferred revenues - noncurrent 259 302 561 Finance lease liabilities 264,223 42 264,265 Total liabilities 784,913 285 785,198 Accumulated deficit (1,425,140 ) 2,909 (1,422,231 ) Total stockholders' (deficit) equity $ (60,212 ) $ 2,909 $ (57,303 ) Costs of Internal-Use Computer Software Development We capitalize software development costs incurred during the application development stage. Depreciation begins once the software is ready for its intended use and is computed based on the straight-line method over the estimated useful life, which was 5 years for 2019 , 2018 and 2017 . Judgment is required in determining which software projects are capitalized and the resulting economic life. We capitalized $3.3 million , $3.5 million and $4.4 million in internal-use software costs during the years ende |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS We account for certain assets and liabilities at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: • Level 1: Quoted prices in active markets for identical assets or liabilities; • Level 2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Assets and liabilities measured at fair value on a recurring basis are summarized as follows (in thousands): Level 1 Level 2 Level 3 Total December 31, 2019: Asset retirement obligations (1) $ — $ — $ 2,322 $ 2,322 December 31, 2018: Available-for-sale securities — 2,309 — 2,309 Asset retirement obligations (1) $ — $ — $ 2,090 $ 2,090 (1) We calculated the fair value of asset retirement obligations ("ARO") by discounting the estimated amount using the Treasury bill rate adjusted for our credit risk. At December 31, 2019 and 2018, the balance is included in "Other long-term liabilities," in the accompanying consolidated balance sheets. The following table provides a summary of changes in our Level 3 asset retirement obligations (in thousands): 2019 2018 2017 Balance, January 1 $ 2,090 $ 1,936 $ 2,810 Accretion 232 154 197 Subsequent revision of estimated obligation — — 449 Payments — — (1,520 ) Balance, December 31 $ 2,322 $ 2,090 $ 1,936 As of December 31, 2019, the Company had no available-for-sale debt securities. In 2018, the Company held $2.3 million of available-for-sale debt securities which are reported at fair value on the Company's consolidated balance sheets in "Deposits and other assets." If a decline in the fair value of a marketable security below the Company's cost basis is determined to be other than temporary, such marketable security is written down to its estimated fair value as a new cost basis and the amount of the write-down is included in earnings as an impairment charge. The Company may sell certain of its marketable securities prior to their stated maturities for strategic reasons including, but not limited to, anticipation of credit deterioration and maturity management. The fair values of our Level 2 available-for-sale debt securities, based upon quoted prices for similar items in active markets, are as follows (in thousands): December 31, 2019 Cost Unrealized Gain Unrealized Loss Converted to Cash Fair Value Japanese Corporate Bonds $ 2,221 $ 198 $ (156 ) $ (2,263 ) $ — Japanese Government Bonds 88 7 (6 ) (89 ) — Total Bonds $ 2,309 $ 205 $ (162 ) $ (2,352 ) $ — December 31, 2018 Cost Unrealized Gain Unrealized Loss Converted to Cash Fair Value Japanese Corporate Bonds $ 2,184 $ 144 $ (107 ) $ — $ 2,221 Japanese Government Bonds 87 5 (4 ) — 88 Total Bonds $ 2,271 $ 149 $ (111 ) $ — $ 2,309 The fair values of our other Level 2 debt liabilities, based upon quoted prices for our term loans, are as follows (in thousands): December 31, 2019 2018 Carrying Amount Fair Value Carrying Amount Fair Value Term loan $ 425,856 $ 262,966 $ 429,143 $ 428,071 Revolving credit facility 20,000 12,350 — — |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment consisted of the following (in thousands): December 31, 2019 2018 Network equipment $ 309,323 $ 274,680 Network equipment under capital lease — 14,206 Furniture and equipment 27,681 28,583 Software 50,048 66,924 Leasehold improvements 372,492 414,212 Buildings under capital lease — 271,226 Property and equipment, gross 759,544 1,069,831 Less: accumulated depreciation and amortization ($55,198 related to capital leases at December 31, 2018) (544,433 ) (585,525 ) $ 215,111 $ 484,306 During the year ended December 31, 2019, we disposed or retired $14.9 million of property and equipment, excluding leasehold improvements, with accumulated depreciation of $13.7 million . During the year ended December 31, 2018 and 2017, we disposed or retired $4.4 million and $9.2 million , respectively, of property and equipment, excluding leasehold improvements, with accumulated depreciation of $4.2 million and $7.3 million , respectively. During the year ended December 31, 2019, we determined that we would not use certain leasehold improvements from a recently exited data center property in the United States and recorded an impairment of $4.5 million . At the time of disposal, the leasehold improvements had a cost of $37.1 million with accumulated depreciation of $32.6 million . During the year ended December 31 2018, there were no impairments in leasehold improvements. During the year ended December 31, 2017, we determined that we would not use certain leasehold improvements from an exited data center property and recorded an impairment of $0.5 million . At the time of disposal, the leasehold improvements had a cost of $22.4 million with accumulated depreciation of $21.9 million . Depreciation and amortization of property and equipment consisted of the following (in thousands): Year ended December 31, 2019 2018 2017 Costs of sales and services $ 76,199 $ 73,738 $ 68,804 Other depreciation and amortization 5,013 10,644 2,478 Subtotal 81,212 84,382 71,282 Amortization of acquired and developed technologies 4,501 4,034 2,147 Total depreciation and amortization $ 85,713 $ 88,416 $ 73,429 |
ACQUISITION
ACQUISITION | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
ACQUISITION | ACQUISITION On February 28, 2018, the Company acquired SingleHop LLC ("SingleHop"), a provider of high-performance data center services including colocation, managed hosting, cloud and network services for $132.0 million net of working capital adjustments of approximately $0.4 million , liabilities assumed, and net of cash acquired. The transaction was funded with an incremental term loan and cash from the balance sheet. As part of the financing, INAP obtained amendments to its credit agreement to allow for the incremental term loan and to provide further operational flexibility under the credit agreement covenants. The amendments to the credit agreement are described in more detail in Note 9, "Commitments, Contingencies and Litigation." The following table summarizes the final fair values of the assets acquired and liabilities assumed at the acquisition date and reflects purchase accounting adjustments subsequent to the acquisition date (in thousands): Final Valuation as of December 31, 2018 Cash $ 2,823 Prepaid expenses and other assets 2,227 Property, plant and equipment 14,253 Other long term assets 576 Intangible assets: Noncompete agreements 4,000 Trade names 1,700 Technology 15,100 Customer relationships 34,100 Goodwill 66,008 Total assets acquired 140,787 Accounts payable and accrued liabilities 2,819 Deferred revenue 2,434 Long term liabilities 534 Net assets acquired $ 135,000 The fair value assigned to identifiable intangible assets acquired was based on estimates and assumptions made by management. The intangible assets are being amortized over periods which reflect the pattern in which economic benefits of the assets are expected to be realized. The customer relationships are being amortized on an accelerated basis over an estimated useful life of ten years and the noncompete agreements, trade names, and technology are being amortized on a straight-line basis over four , eight , and seven years , respectively. Goodwill represents the excess of the consideration transferred over the aggregate fair values of assets acquired and liabilities assumed. The goodwill recorded in connection with this acquisition was based on operating synergies and other benefits expected to result from the combined operations and the assembled workforce acquired. The goodwill acquired is deductible for tax purposes. Acquisition-related costs recognized for the year ended December 31, 2018 including transaction costs such as legal, accounting, valuation and other professional services, were $2.9 million and are included in "Sales, general and administrative" expenses on the accompanying consolidated statements of operations and comprehensive loss. Pro Forma Financial Information The following unaudited pro forma financial information presents the combined results of operations of INAP and SingleHop as if the acquisition had occurred on January 1, 2017. The unaudited pro forma financial information is not intended to represent or be indicative of our consolidated results of operations that would have been reported had the INAP and SingleHop acquisition been completed as of January 1, 2017, and should not be taken as indicative of our future consolidated results of operations. The pro forma results are as follows (in thousands except for per share amounts): Year Ended 2018 2017 Revenues $ 324,283 $ 328,572 Net loss (62,276 ) (46,214 ) Basic and diluted net loss per share $ (3.01 ) $ (2.44 ) Weighted average shares outstanding used in computing basic and diluted net loss per share 20,732 18,993 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill General The Company tests goodwill and intangible assets with indefinite lives for impairment annually as of August 1. Additionally, the Company may perform interim tests if an event occurs or circumstances change that could potentially reduce the fair value of a reporting unit or indefinite lived intangible asset below its carrying amount. The carrying value of each reporting unit is determined by assigning the assets and liabilities, including the existing goodwill and intangible assets, to those reporting units. The Company tests goodwill for impairment by either performing a qualitative evaluation or a quantitative test. The qualitative evaluation is an assessment of factors, including reporting unit specific operating results as well as industry, market and general economic conditions, to determine whether it is more likely than not that the fair values of a reporting unit is less than its carrying amount, including goodwill. The Company may elect to bypass this qualitative assessment for some or all of its reporting units and perform a quantitative test. In order to determine the estimated fair value of our reporting units, the Company considers the discounted cash flow method. INAP has consistently considered this method in its goodwill impairment assessments. The discounted cash flow method is specific to the anticipated future results of the reporting unit. The Company determines the assumptions supporting the discounted cash flow method, including the discount rate, using estimates as of the date of the impairment review. To determine the reasonableness of these assumptions, the Company considered the past performance and empirical trending of results, looked to market and industry expectations used in the discounted cash flow method, such as forecasted revenues and discount rate. The Company used reasonable judgment in developing its estimates and assumptions. The assumptions, inputs and judgments used in performing the valuation analysis are inherently subjective and reflect estimates based on known facts and circumstances at the time we perform the valuation. These estimates and assumptions primarily include, but are not limited to, discount rates; terminal growth rates; projected revenues and costs; earnings before interest, taxes, depreciation and amortization for expected cash flows; market comparables and capital expenditure forecasts. The use of different assumptions, inputs and judgments, or changes in circumstances, could materially affect the results of the valuation. Goodwill is considered impaired if the carrying amount of the net assets exceeds the fair value of the reporting unit. Impairment, if any, would be recorded in operating income / (loss) and this could result in a material impact to net income / (loss) and income / (loss) per share. In 2017, the Company adopted the guidance under ASU No. 2017-04: Intangibles - Goodwill and Other: Simplifying the Accounting for Goodwill Impairment (Topic 350) which eliminated step 2 of the goodwill impairment test, which required a hypothetical purchase price allocation to measure goodwill impairment loss as of January 1, 2018. A goodwill impairment loss under the new guidance is instead measured using a single step test based on the amount by which a reporting unit's carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill. Based on the Company's impairment test as of August 1, 2019, no impairment of goodwill has been identified. Year-end Testing During the fourth quarter of 2019, the Company identified a significant decrease in its share price which was considered an impairment indicator. Consequently, the Company performed another goodwill impairment test as of December 1, 2019. Based on this interim goodwill impairment test, we determined that the carrying amounts for three reporting units exceeded their fair value. Impairment charges were recorded for the Cloud reporting unit within INAP US of $22.9 million and for the Cloud and Ubersmith reporting units within INAP INTL of $21.2 million and $0.9 million , respectively. The goodwill impairment is primarily due to declines in projected revenues and operating results due to increased customer churn and reduced sales projections. In performing the impairment test as of December 1, 2019, the Company utilized discount rates ranging from 12.0% to 16.0% which increased compared to the annual testing as of August 1, 2019 where the discount rates ranged from 8.0% to 13.0% , to reflect changes in market conditions. The Company also reduced long-term growth rate assumptions from 2.0% to 1.0% for some reporting units. While management believes the assumptions used are reasonable and commensurate with the views of a market participant, changes in key assumptions for these reporting units, including increasing the discount rate, lowering revenue forecasts, lowering the operating margin or lowering long-term growth rate, could result in a future impairment. During the years ended December 31, 2019 and 2018, our goodwill activity is as follows (in thousands): January 1, 2018 Re-allocations SingleHop Acquisition December 31, 2018 Impairment December 31, 2019 Reportable segments: INAP COLO $ 6,003 $ (6,003 ) $ — $ — $ — INAP CLOUD 44,206 (44,206 ) — — — INAP US 28,118 66,008 94,126 (22,918 ) 71,208 INAP INTL 22,091 22,091 (22,091 ) — Total $ 50,209 $ — $ 66,008 $ 116,217 $ (45,009 ) $ 71,208 Other Intangible Assets The Company tests intangible assets with indefinite lives for impairment annually as of August 1. As of August 1, 2019, no impairment was recorded for the intangible assets. The Company may perform interim tests if an event occurs or circumstances change that could potentially reduce the fair value of a reporting unit or indefinite lived intangible asset below its carrying amount. During the year ended December 31, 2019 , we determined that impairment indicators existed, primarily due to declines in projected revenues and operating results which caused us to reassess the recoverability of the carrying amount of our intangible assets. The result of our assessment was that the projected undiscounted net cash flows for the Cloud and Ubersmith reporting units in INAP INTL were below the carrying value of the related assets and accordingly, we recorded an impairment of $12.9 million for Cloud and $1.2 million for Ubersmith. Impairment of $13.1 million was recorded for customer relationships and trade names, and $1.0 million for acquired and developed technology. The estimated useful lives range from 4 years to 30 years . The components of our amortizing intangible assets, including capitalized software, are as follows (in thousands): December 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Acquired and developed technology $ 63,866 $ (49,127 ) $ 71,586 $ (52,097 ) Customer relationships and trade names 94,555 (62,698 ) 110,785 (57,232 ) $ 158,421 $ (111,825 ) $ 182,371 $ (109,329 ) Amortization expense for intangible assets during the years ended December 31, 2019 , 2018 and 2017 was $13.3 million , $11.1 million and $4.4 million , respectively. As of December 31, 2019 , remaining amortization expense is as follows (in thousands): 2020 $ 9,919 2021 9,314 2022 7,274 2023 6,619 2024 5,735 Thereafter 7,735 $ 46,596 |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
ACCRUED LIABILITIES | ACCRUED LIABILITIES Accrued liabilities consist of the following (in thousands): December 31, 2019 2018 Compensation and benefits payable $ 3,601 $ 7,190 Property, sales, and other taxes 1,350 785 Customer credit balances 1,730 2,204 Accrued interest 953 1,762 Other 3,087 3,266 $ 10,721 $ 15,207 |
EXIT ACTIVITIES AND RESTRUCTURI
EXIT ACTIVITIES AND RESTRUCTURING | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
EXIT ACTIVITIES AND RESTRUCTURING | EXIT ACTIVITIES AND RESTRUCTURING During the year ended December 31, 2019, we recorded initial exit activity charges due to ceasing use of office and data center space as well as contract terminations. Payments for the office and data center space are expected through 2020. During the year ended December 31, 2018, we recorded initial exit activity charges due to ceasing use of office and data center space as well as contract terminations. Payments for the office and data center space are expected through 2019. During the year ended December 31, 2017, we recorded initial exit activity charges due to ceasing use of data center space. Payments for the data center space are expected through 2019. The following table displays the transactions and balances for exit activities and restructuring charges (in thousands). We include initial charges and plan adjustments in "Exit activities, restructuring and impairments" in the accompanying statements of operations and comprehensive loss for the years ended December 31, 2019 , 2018 and 2017 . Our real estate obligations and severance are substantially related to our INAP US segment. Balance December 31, 2018 Initial Charges (1) Plan Adjustments Cash Payments Balance December 31, 2019 Activity for 2019 restructuring charge: Real estate obligations $ — $ 1,629 $ (116 ) $ (1,377 ) $ 136 Activity for 2018 restructuring charge: Real estate obligations 1,922 — 187 (2,109 ) — Activity for 2017 restructuring charge: Real estate obligations 100 — 1 (101 ) — Activity for 2016 restructuring charge: Real estate obligations 125 — 11 (136 ) — Activity for 2015 restructuring charge: Real estate obligation 27 — 29 (56 ) — Service contracts 221 — 41 (198 ) 64 Activity for 2014 restructuring charge: Real estate obligation 206 — 54 (260 ) — $ 2,601 $ 1,629 $ 207 $ (4,237 ) $ 200 (1) Additional expense related to the disposal of leasehold improvements of approximately $4.5 million was recorded for the year ended December 31, 2019 and not included in the table above. Balance December 31, 2017 Initial Charges Plan Adjustments Cash Payments Balance December 31, 2018 Activity for 2018 restructuring charge: Real estate obligations $ — $ 3,484 $ 1,023 $ (2,585 ) $ 1,922 Activity for 2017 restructuring charge: Real estate obligations 3,380 — 316 (3,596 ) 100 Activity for 2016 restructuring charge: Severance 46 — 34 (80 ) — Real estate obligations 247 — 39 (161 ) 125 Activity for 2015 restructuring charge: Real estate obligation 64 — 4 (41 ) 27 Service contracts 388 — 31 (198 ) 221 Activity for 2014 restructuring charge: Real estate obligation 691 — 240 (725 ) 206 $ 4,816 $ 3,484 $ 1,687 $ (7,386 ) $ 2,601 Balance December 31, 2016 Initial Charges Plan Adjustments Cash Payments Balance December 31, 2017 Activity for 2017 restructuring charge: Real estate obligations $ — $ 3,359 $ 1,741 $ (1,720 ) $ 3,380 Activity for 2016 restructuring charge: Severance 1,911 — 957 (2,822 ) 46 Real estate obligations 933 — 82 (768 ) 247 Activity for 2015 restructuring charge: Real estate obligation 111 — — (47 ) 64 Service contracts 565 — 21 (198 ) 388 Activity for 2014 restructuring charge: Real estate obligations 1,183 — 131 (623 ) 691 $ 4,703 $ 3,359 $ 2,932 $ (6,178 ) $ 4,816 |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND LITIGATION | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND LITIGATION | COMMITMENTS, CONTINGENCIES AND LITIGATION 2017 Credit Agreement On April 6, 2017, we entered into a new Credit Agreement (the "2017 Credit Agreement"), which provided for a $300.0 million term loan facility ("2017 Term Loan") and a $25.0 million Revolving Credit Facility (the "2017 Revolving Credit Facility"). The proceeds of the 2017 Term Loan were used to refinance the Company's existing credit facility and to pay costs and expenses associated with the 2017 Credit Agreement. As described above, on March 16, 2020, as a result of the filing of the Chapter 11 Cases, the Company incurred an event of default under the Credit Agreement. Certain portions of the refinancing transaction were considered an extinguishment of debt and certain portions were considered a modification. A total of $5.7 million was paid for debt issuance costs related to the 2017 Credit Agreement. Of the $5.7 million in costs paid, $1.9 million related to the exchange of debt and was expensed, $3.3 million related to 2017 Term Loan third party costs and will be amortized over the 2017 Term Loan and $0.4 million prepaid debt issuance costs related to the 2017 Revolving Credit Facility and will be amortized over the term of the 2017 Revolving Credit Facility. In addition, $4.8 million of debt discount and debt issuance costs related to the previous credit facility were expensed due to the extinguishment of that credit facility. The maturity date of the 2017 Term Loan is April 6, 2022 and the maturity date of the 2017 Revolving Credit Facility is October 6, 2021. As of December 31, 2019, the outstanding balance of the 2017 Term Loan and the 2017 Revolving Credit Facility were $413.3 million and $20.0 million , respectively. The interest rate on the 2017 Term Loan and the 2017 Revolving Credit Facility as of December 31, 2019 were 8.0% and 8.7% , respectively. Borrowings under the 2017 Credit Agreement bear interest at a rate per annum equal to an applicable margin plus, at our option, a base rate or an adjusted LIBOR rate. The applicable margin for loans under the 2017 Revolving Credit Facility is 6.0% for loans bearing interest calculated using the base rate ("Base Rate Loans") and 7.0% for loans bearing interest calculated using the adjusted LIBOR rate. The applicable margin for loans under the 2017 Term Loan is 4.75% for Base Rate Loans and 5.75% for adjusted LIBOR rate loans. The base rate is equal to the highest of (a) the adjusted U.S. Prime Lending Rate as published in the Wall Street Journal, (b) with respect to term loans issued on the closing date, 2.00% , (c) the federal funds effective rate from time to time, plus 0.50% , and (d) the adjusted LIBOR rate, as defined below, for a one-month interest period, plus 1.00% . The adjusted LIBOR rate is equal to the rate per annum (adjusted for statutory reserve requirements for Eurocurrency liabilities) at which Eurodollar deposits are offered in the interbank Eurodollar market for the applicable interest period (one, two, three or six months), as quoted on Reuters screen LIBOR (or any successor page or service). The financing commitments of the lenders extending the 2017 Revolving Credit Facility are subject to various conditions, as set forth in the 2017 Credit Agreement. As of December 31, 2019, the Company has been in compliance with all covenants. First Amendment On June 28, 2017, the Company entered into an amendment to the 2017 Credit Agreement ("First Amendment"), by and among the Company, each of the lenders party thereto, and Jefferies Finance LLC, as Administrative Agent. The First Amendment clarified that for all purposes the Company's liabilities pursuant to any lease that was treated as rental and lease expense, and not as a capital lease obligation or indebtedness on the closing date of the 2017 Credit Agreement, would continue to be treated as a rental and lease expense, and not as a capital lease obligations or indebtedness, for all purposes of the 2017 Credit Agreement, notwithstanding any amendment of the lease that results in the treatment of such lease as a capital lease obligation or indebtedness for financial reporting purposes. Second Amendment On February 6, 2018, the Company, the Lenders party thereto and Jefferies Finance LLC, as Administrative Agent, entered into a Second Amendment to Credit Agreement (the "Second Amendment") that amended the 2017 Credit Agreement. The Second Amendment, among other things, amends the 2017 Credit Agreement to (i) permit the Company to incur incremental term loans under the 2017 Credit Agreement of up to $135.0 million to finance the Company's acquisition of SingleHop and to pay related fees, costs and expenses, and (ii) revise the maximum total net leverage ratio and minimum consolidated interest coverage ratio covenants. The financial covenant amendments became effective upon the consummation of the SingleHop acquisition, while the other provisions of the Second Amendment became effective upon the execution and delivery of the Second Amendment. This transaction was considered a modification. A total of $1.0 million was paid for debt issuance costs related to the Second Amendment. Of the $1.0 million in costs paid, $0.2 million related to the payment of legal and professional fees which were expensed, $0.8 million related to term loan lender fees and will be amortized over the term of the 2017 Credit Agreement. Third Amendment On February 28, 2018, INAP entered into the Incremental and Third Amendment to the Credit Agreement among the Company, the Lenders party thereto and Jefferies Finance LLC, as Administrative Agent (the "Third Amendment"). The Third Amendment provides for a funding of the new incremental term loan facility under the 2017 Credit Agreement of $135.0 million (the "Incremental Term Loan"). The Incremental Term Loan has terms and conditions identical to the existing loans under the 2017 Credit Agreement, as amended. Proceeds of the Incremental Term Loan were used to complete the acquisition of SingleHop and to pay fees, costs and expenses related to the acquisition, the Third Amendment and the Incremental Term Loan. This transaction was considered a modification. A total of $5.0 million was paid for debt issuance costs related to the Third Amendment. Of the $5.0 million in costs paid, $0.1 million related to the payment of legal and professional fees which were expensed, $4.9 million related to term loan lender fees and will be amortized over the term of the 2017 Credit Agreement. Fourth Amendment On April 9, 2018, the Company entered into the Fourth Amendment to 2017 Credit Agreement, among the Company, the Lenders party thereto and Jefferies Finance LLC, as Administrative Agent (the "Fourth Amendment"). The Fourth Amendment amends the 2017 Credit Agreement to lower the interest rate margins applicable to the outstanding term loans under the 2017 Credit Agreement by 1.25% . This transaction was considered a modification. A total of $1.7 million was paid for debt issuance costs related to the Fourth Amendment. Of the $1.7 million in costs paid, $0.1 million related to the payment of legal and professional fees which were expensed, $1.6 million related to term loan lender fees and will be amortized over the term of the 2017 Credit Agreement. Fifth Amendment On August 28, 2018, the Company entered into the Fifth Amendment to 2017 Credit Agreement, among the Company, the Lenders party thereto and Jefferies Finance LLC, as Administrative Agent (the "Fifth Amendment"). The Fifth Amendment amended the 2017 Credit Agreement by increasing the aggregate revolving commitment capacity by $10.0 million to $35.0 million . Sixth Amendment On May 8, 2019, the Company entered into the Sixth Amendment to the 2017 Credit Agreement, among the Company, the Lenders party thereto and Jefferies Finance LLC, as Administrative Agent (the “Sixth Amendment”). The Sixth Amendment (i) adjusted the applicable interest rates under the 2017 Credit Agreement, (ii) modified the maximum total net leverage ratio requirements and the minimum consolidated interest coverage ratio requirements and (iii) modified certain other covenants. Pursuant to the Sixth Amendment, the applicable margin for the alternate base rate loan was increased from 4.75% per annum to 5.25% per annum and for the Eurodollar loan was increased from 5.75% per annum to 6.25% per annum, with such interest payable in cash, and in addition such term loans bear interest payable in kind at the rate of 0.75% per annum. The Sixth Amendment also made the following modifications: • Added an additional basket of $500,000 for finance lease obligations. • The maximum amount of permitted asset dispositions was decreased from $150,000,000 to $50,000,000 . • The amount of net cash proceeds from asset sales that may be reinvested is limited to $2,500,000 in any fiscal year of the Company, with net cash proceeds that are not so reinvested used to prepay loans under the 2017 Credit Agreement. • The restricted payment basket was decreased from $5,000,000 to $1,000,000 . The maximum total leverage ratio increases to 6.80 to 1 as of June 30, 2019, 6.90 to 1 as of September 30, 2019 - December 31, 2019, decreases to 6.75 to 1 as of March 31, 2020, 6.25 to 1 as of June 30, 2020, 6.00 to 1 as of September 30, 2020, 5.75 to 1 as of December 31, 2020, 5.50 to 1 as of March 2021, 5.00 to 1 as of June 30, 2021 and 4.50 to 1 as of September 30, 2021 and thereafter. The minimum consolidated interest coverage ratio decreases to 1.75 to 1 as of June 30, 2019, 1.70 to 1 as of September 30, 2019 - March 31, 2020, increases to 1.80 to 1 as of June 30, 2020, 1.85 to 1 as of September 2020 and 2.00 to 1 as of December 31, 2020 and thereafter. This transaction was considered a modification. A total of $2.9 million was paid for debt issuance costs related to the Sixth Amendment. Of the $2.9 million in costs paid, $0.1 million related to the payment of legal and professional fees which were expensed, $2.8 million related to term loan lender fees and will be amortized over the term of the 2017 Credit Agreement. Seventh Amendment On October 29, 2019, the Company entered into the Seventh Amendment to 2017 Credit Agreement, among the Company, the Lenders party thereto and Jefferies Finance LLC, as Administrative Agent (the “Seventh Amendment”). The Seventh Amendment (i) modified the maximum total net leverage ratio requirements and the minimum consolidated interest coverage ratio requirements under the 2017 Credit Agreement and (ii) effected certain other modifications, including changes to certain baskets. The maximum total leverage ratio increases to 7.25 to 1 as of December 31, 2019 - December 31, 2020, 5.50 to 1 as of March 31, 2021, 5.00 to 1 as of June 30, 2021, 4.50 to 1 as of September 30, 2021 and thereafter. The minimum consolidated interest coverage ratio decreases to 1.60 to 1 as of December 31, 2019 - December 31, 2020, 2.00 to 1.00 as of March 31, 2021 and thereafter. The Seventh Amendment also made the following modifications: • Reduced the disposition of property basket from $50.0 million to $25.0 million . • Reduced reinvestment of net cash proceeds from asset sales from $2.5 million to $1.0 million . • Reduced investment basket from greater of $25.0 million and 30% of EBITDA to greater of $12.5 million and 15% of EBITDA. • Reduced incremental facility from $50.0 million to $25.0 million . • Reduced foreign subsidiary debt basket from greater of $15.0 million and 18% of EBITDA to greater of $5.0 million and 6% of EBITDA. • Reduced general basket from greater of $50.0 million and 61% of EBITDA to greater of $25.0 million and 30% of EBITDA. A total of $1.3 million was paid for debt issuance costs related to the Seventh Amendment. Of the $1.3 million in costs paid, $0.1 million related to the payment of legal and professional fees which were expensed, $1.2 million related to term loan lender fees and will be amortized over the term of the 2017 Credit Agreement. The table below sets forth information with respect to the current financial covenants as well as the calculation of our performance in relation to the covenant requirements at December 31, 2019 . Covenants Requirements Ratios at December 31, 2019 Maximum Total Net Leverage Ratio should be equal to or less than: 7.25 7.03 Maximum Consolidated Interest Coverage Ratio should be equal to or greater than: 1.60 1.84 A summary of our credit agreement as of December 31, 2019 and December 31, 2018 is as follows (dollars in thousands): December 31, 2019 2018 Outstanding principal balance on the term loan, less unamortized discount and prepaid costs of $12.5 million and $13.5 million, respectively $ 413,311 $ 415,599 Outstanding balance on the revolving credit facility 20,000 — Letters of credit issued 4,810 4,187 Surety bonds issued 131 131 Borrowing capacity on revolving credit facility 10,059 30,682 Interest rate – term loan 8.0 % 8.2 % Interest rate – drawn amounts under revolving credit facility 8.7 % — % The total balance outstanding on the term loan of $425.9 million , as well as the total amount drawn under the revolving line of credit of $20.0 million , are each due in 2020 because of the event of default. The terms of our 2017 Credit Agreement specify certain events which would be considered an event of default. These events include if we do not comply with the financial covenants, a failure to make a payment under the credit agreement, a change of control of the Company or other proceedings related to insolvency. Upon the occurrence and continuation of an event of default, after completion of any applicable grace or cure period, lenders may demand immediate payment in full of all indebtedness outstanding under the credit facility, terminate their obligations to make any loans or advances or issue any letter of credit, set off and apply any and all deposits held by any lender for the credit or account of any borrower. The filing of the Chapter 11 Cases constituted an event of default that accelerated the Company’s obligations under the Credit Agreement, as a result of which the principal and interest due thereunder became immediately due and payable. The ability of the lenders to enforce such payment obligations under the Credit Agreement is automatically stayed as a result of the Chapter 11 Cases, and the lenders’ rights of enforcement in respect of obligations under the Credit Agreement are subject to the applicable provisions of the Bankruptcy Code. The 2017 Credit Agreement, as amended, includes customary representations, warranties, negative and affirmative covenants. Asset Retirement Obligations In prior years, we recorded AROs related to future estimated removal costs of leasehold improvements for certain data center leased properties. We were able to reasonably estimate the liabilities on these properties in order to record the ARO and the corresponding asset retirement cost in our data center services segment at its fair value. We calculated the fair value by discounting the estimated amount to present value using the applicable Treasury bill rate adjusted for our credit non-performance risk. As of December 31, 2019 and 2018 , the balance of the present value ARO was $2.3 million and $2.1 million , respectively. At December 31, 2019 and 2018, the entire balance was included in "Other long-term liabilities." We included all asset retirement costs in "Property and equipment, net" in the consolidated balance sheets as of December 31, 2019 and 2018 , and depreciated those costs using the straight-line method over the remaining term of the related lease. We have other finance lease agreements that require us to decommission physical space for which we have not yet recorded an ARO. Due to the uncertainty of specific decommissioning obligations, timing and related costs, we cannot reasonably estimate an ARO for these properties and we have not recorded a liability at this time for such properties. Other Commitments We have entered into commitments primarily related to IP, telecommunications and data center services. Future minimum payments under these service commitments having terms in excess of one year were as follows at December 31, 2019 (in thousands): 2020 $ 2,390 2021 796 2022 140 2023 19 2024 — Thereafter — $ 3,345 Litigation The Company and its subsidiaries are subject to claims and legal proceedings that arise in the ordinary course of business. Each of these matters is inherently uncertain, and there can be no guarantee that the outcome of any such matter will be decided favorably to the Company or its subsidiaries or that the resolution of any such matter will not have a material adverse effect upon the Company’s business, consolidated financial position, results of operations or cash flow. The Company does not believe that any of these pending claims and legal proceedings will have a material adverse effect on its business, consolidated financial position, results of operations or cash flow. On March 16, 2020, the Company filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code. For information on the Chapter 11 Cases, see Note 1, "Description of the Company and Nature of Operations." |
OPERATING SEGMENTS AND GEOGRAPH
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION | 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 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION PLANS | STOCK-BASED COMPENSATION PLANS We have granted employees options to purchase shares of our common stock and issued shares of restricted common stock subject to vesting. We measure stock-based compensation cost at the grant date based on the calculated fair value of the option or award. We recognize the expense over the employees' requisite service period, generally the vesting period of the option or award. We estimate the fair value of stock options at the grant date using the Black-Scholes option pricing model . Stock option pricing model input assumptions such as expected term, expected volatility and risk-free interest rate, impact the fair value estimate. Further, the forfeiture rate impacts the amount of aggregate compensation. These assumptions are subjective and generally require significant analysis and judgment to develop. The amount of stock-based compensation, net of estimated forfeitures, included in the consolidated statements of operations and comprehensive loss for the years ended December 31, 2019, 2018 and 2017 were $4.2 million , $4.7 million and $3.0 million . We have not recognized any tax benefits associated with stock-based compensation due to our tax net operating losses. During the years ended December 31, 2019, 2018 and 2017, an immaterial amount of stock-based compensation was capitalized. During the years ended December 31, 2019, 2018 and 2017, there were no options granted under our stock-based compensation plans. Under our 2017 Stock Incentive Plan (the "2017 Plan"), we may issue restricted stock and restricted stock units to eligible employees and directors to promote the interests of the Company. The compensation committee of our board of directors administers the 2017 Plan. As of December 31, 2019 , 1.4 million shares of stock were available for issuance. Conditions, if any, under which stock will be issued under stock grants or cash or stock will be paid under restricted stock units and the conditions under which the interest in any stock that has been issued will become non-forfeitable are determined at the grant date by the compensation committee. All awards under the 2017 Plan are subject to minimum vesting requirements unless otherwise determined by the compensation committee. The minimum vesting period over which stock award shall vest is one year from the date the award is granted. If awards are performance-based, unless otherwise determined by the compensation committee, stock awards to covered employees will be designed to comply with the performance goals. In such case, the level of vesting of the award will depend on the attainment of one or more performance goals. No participant in any calendar year shall be granted stock awards with respect to more than 350,000 shares of stock. Under the 2017 Plan, only full value shares in the form of restricted stock and restricted stock units will be available for grant. Shares of common stock that are delivered by the grantee or withheld by us as payment of the tax withholding obligation in connection with any award will not be returned to the share reserve and will not be available for future awards. Shares subject to awards that have been canceled, forfeited or otherwise not issued under an award and shares subject to awards settled in cash would not count as shares issued under the 2017 Plan. During the years ended December 31, 2019 , 2018 and 2017 , the total value of the equity grants received by all non-employee directors was $0.3 million, $0.7 million and $1.1 million, respectively, in the form of restricted stock that vests on the date of our annual meeting of stockholders in the year following grant. Stock option activity during the year ended December 31, 2019 under all of our stock-based compensation plans was as follows (shares in thousands): Shares Weighted Average Exercise Price Balance, December 31, 2018 223 $ 25.95 Granted — — Exercised — — Forfeitures and post-vesting cancellations (48 ) 21.91 Balance, December 31, 2019 175 27.01 Exercisable, December 31, 2019 174 27.13 Fully vested and exercisable stock options and stock options expected to vest as of December 31, 2019 are further summarized as follows (shares in thousands): Fully Vested and Exercisable Expected to Vest Total shares 174 175 Weighted-average exercise price $ 27.13 $ 27.01 Aggregate intrinsic value $ — $ — Weighted-average remaining contractual term (in years) 3.2 3.2 For the year ended December 31, 2019, there was no total intrinsic value of stock options exercised, and less than $0.1 million and $0.4 million during the years ended December 31, 2018 and 2017 , respectively. None of our stock options or the underlying shares are subject to any right to repurchase by us. Restricted stock activity during the year ended December 31, 2019 was as follows (shares in thousands): Shares Weighted- Average Grant Date Fair Value Unvested balance, December 31, 2018 958 $ 5.17 Granted 1,689 $ 2.47 Vested (334 ) $ 6.12 Forfeited (542 ) $ 2.12 Unvested balance, December 31, 2019 1,771 $ 3.05 The total fair value of restricted stock vested during the years ended December 31, 2019 , 2018 and 2017 was $0.8 million , $1.7 million and $2.6 million , respectively. At December 31, 2019 , the total intrinsic value of all unvested restricted stock was $2.0 million . Total unrecognized compensation costs related to unvested stock-based compensation as of December 31, 2019 is as follows (dollars in thousands): Stock Options Restricted Stock Total Unrecognized compensation $ 3 $ 3,562 $ 3,565 Weighted-average remaining recognition period (in years) 0.14 1.49 1.63 |
EMPLOYEE RETIREMENT PLAN
EMPLOYEE RETIREMENT PLAN | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
EMPLOYEE RETIREMENT PLAN | EMPLOYEE RETIREMENT PLAN We sponsor a defined contribution retirement savings plan that qualifies under Section 401(k) of the Internal Revenue Code. Plan participants may elect to have a portion of their pre-tax compensation contributed to the plan, subject to certain guidelines issued by the Internal Revenue Service. Employer contributions are discretionary and were $0.7 million for the year ended December 31, 2019 and $0.7 million and $0.4 million for the years ended December 31, 2018 and 2017 , respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The loss before income taxes and equity in earnings of equity-method investment is as follows (in thousands): Year Ended December 31, 2019 2018 2017 United States $ (107,905 ) $ (63,450 ) $ (45,541 ) Foreign (31,912 ) 3,032 421 Loss before income taxes and equity in earnings of equity-method investment $ (139,817 ) $ (60,418 ) $ (45,120 ) Income tax (benefit) expense consisted of the following (in thousands): Year Ended December 31, 2019 2018 2017 Current: Federal $ — $ — $ (730 ) State 128 118 123 Foreign 559 277 507 687 395 (100 ) Deferred: Federal — — — State — — — Foreign (2,335 ) 262 353 (2,335 ) 262 353 Income tax (benefit) expense $ (1,648 ) $ 657 $ 253 A reconciliation of the U.S. statutory rate of 21% for 2019 and 2018, and 34% for 2017 and the effective income tax rate is as follows: Year Ended December 31, 2019 2018 2017 Federal income tax at statutory rates (21.0 )% (21.0 )% (34.0 )% State income tax (4.6 ) (5.5 ) (5.0 ) Other permanent differences (0.3 ) 1.2 0.4 Tax rates different than statutory (0.5 ) 1.2 0.5 Statutory tax rate change - Deferred - Tax Reform Act — — (128.4 ) Statutory tax rate change - Valuation Allowance - Tax Reform Act — — 128.4 Goodwill impairment 3.4 — — Refundable AMT credit — — (1.5 ) Change in valuation allowance 21.8 25.2 40.1 Effective tax rate (1.2 )% 1.1 % 0.5 % Deferred income taxes reflect the net tax effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of net deferred tax assets (liabilities) were as follows (in thousands): December 31, 2019 2018 Deferred income tax assets: Net operating loss carryforwards $ 99,481 $ 93,704 Property and equipment 35,535 38,556 Goodwill and intangible assets 9,253 — Deferred revenue 1,439 971 Non-deductible interest 23,181 10,028 Leases - ASC 842 20,811 — Stock-based compensation 2,073 1,486 Provision for doubtful accounts 682 956 Accrued compensation 308 1,008 Tax credits carried forward 1,832 2,735 Other 1,919 1,785 Total deferred income tax assets 196,514 151,229 Deferred income tax liabilities: Leases - ASC 842 (15,889 ) — Contracts assets (6,244 ) (6,186 ) Goodwill and intangible assets — (375 ) Refinancing costs (416 ) (4,130 ) Total deferred income tax liabilities (22,549 ) (10,691 ) Net deferred income tax assets 173,965 140,538 Valuation allowance (173,841 ) (142,749 ) Net deferred income tax assets (liabilities) $ 124 $ (2,211 ) The table above has been adjusted to reflect certain changes to deferred tax assets and liabilities as of December 31, 2018 related to a correction in these balances. The Company considered these errors in connection with ASC 250-10-S99 and concluded that the errors were not material. As of December 31, 2019 , we have U.S. net operating loss carryforwards for federal tax purposes of $341.2 million , of which $285.2 million will expire in tax years 2020 through 2037, and $56.0 million will not expire. There are an additional $190.7 million of U.S. net operating loss carryforwards not reported in the amounts above as they are subject to restrictions attributable to prior ownership changes under Section 382 of the Tax Code that may be available under section 108 of the Tax Code to offset against cancellation of debt income arising from the Chapter 11 Restructuring. The Company also has non-U.S. net operating loss carryforwards of $46.6 million . The largest components of the non-U.S. loss carryforwards are in the United Kingdom, with approximately $14.3 million , and in Canada, with $9.8 million of Canadian federal loss carryforwards and $10.1 million of Quebec loss carryforwards. In addition, the Company has research and development tax credits, foreign tax credits and state and local tax credits carried forward amounting to approximately $0.4 million . The research and development credits will begin to expire in 2027. Our ability to use U.S. net operating loss and non-U.S. net operating loss carryforwards to reduce future taxable income, or to use tax credits and other carryforwards to reduce future income tax liabilities, is subject to the ability to generate sufficient taxable income of an appropriate characterization in the proper taxing jurisdictions. In some instances, the utilization is also subject to restrictions attributable to changes of ownership during prior tax years, as defined by appropriate law in the relevant taxing jurisdiction. These limitations, as mentioned above, prevent the Company from utilizing certain deferred tax assets and were considered in establishing our valuation allowances. As of December 31, 2019, we reported a valuation allowance of $166.6 million against the U.S. deferred tax assets and $7.2 million against the non-U.S. deferred tax assets that we do not believe are more likely than not to be realized. We continually evaluate the recoverability of the deferred tax assets and the appropriateness of the valuation allowance. Changes in our valuation allowance are summarized as follows (in thousands): Year Ended December 31, 2019 2018 2017 Balance, January 1, $ 142,749 $ 132,712 $ 164,865 Increase in deferred tax assets 31,092 10,037 27,183 Remeasurement in deferred tax assets — — (59,336 ) Balance, December 31, $ 173,841 $ 142,749 $ 132,712 During 2019, the Company changed its indefinite reinvestment assertion and therefore recorded deferred income taxes on a portion of unremitted earnings of one of its non-U.S. subsidiaries. As of December 31, 2019, no deferred taxes have been provided for the portion of the unremitted earnings of certain of the Company’s subsidiaries. The unremitted earnings of the non-U.S. subsidiary for which the Company does not assert indefinite reinvestment have a deferred tax liability recorded of less than $0.1 million . The unremitted earnings of non-U.S. subsidiaries for which the Company does not assert indefinite reinvestment would likely result in an immaterial amount of deferred tax liabilities upon any future distribution. Our accounting for unrecognized tax benefits arising from an uncertainty in income taxes requires us to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, we must measure the tax position to determine the amount to recognize in the financial statements. Changes in our unrecognized tax benefits are summarized as follows (in thousands): Year Ended December 31, 2019 2018 2017 Unrecognized tax benefits balance, January 1, $ 462 $ 162 $ 187 Additions for tax positions - current year 11 — — Additions for tax positions - prior year 1 300 162 Reductions for tax positions - prior year (93 ) — (187 ) Unrecognized tax benefits balance, December 31, $ 381 $ 462 $ 162 During 2019 , we recorded less than $0.1 million decrease to our unrecognized tax benefits primarily due to our recognizing the impact that prior year non-U.S. net operating losses had on the calculations of interest and penalty liabilities. We classify interest and penalties arising from the underpayment of income taxes in the consolidated statements of operations and comprehensive loss as a component of "Income tax (benefit) expense." As of December 31, 2019 and 2018, we had an accrual of $( 0.1 ) million and $0.2 million , respectively, for interest and penalties related to uncertain tax positions. Our U.S. federal and state income tax returns remain open to examination for the tax years 2016 through 2019; however, tax authorities have the right to adjust the net operating loss carryovers for years prior to 2019. Returns filed in other jurisdictions are generally subject to examination for years prior to 2019. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASES | LEASES We have commitments under lease arrangements for data centers, office space, partner sites and equipment. Our leases have initial lease terms ranging from 2 years to 34 years , most of which include options to extend or renew the leases for 5 to 15 years , and some of which may include options to terminate the leases within 4 to 120 months . At contract inception, we evaluate whether an arrangement is or contains a lease for which we are the lessee (that is, arrangements which provide us with the right to control a physical asset for a period of time). Operating leases are accounted for on the consolidated balance sheets with ROU assets being recognized in "Operating lease right-of-use assets" and lease liabilities recognized in "Short-term operating lease liabilities" and "Operating lease liabilities." Finance leases are accounted for on the consolidated balance sheets with ROU assets being recognized in "Finance lease right-of-use assets" and lease liabilities recognized in "Short-term finance lease liabilities" and "Finance lease liabilities." All lease liabilities are measured at the present value of the unpaid lease payments, discounted using our incremental borrowing rate based on the information available at commencement date or modification date of the lease. ROU assets, for both operating and finance leases, are initially measured based on the lease liability, adjusted for initial direct costs, prepaid rent, and lease incentives received. The operating lease ROU assets are subsequently measured at the carrying amount of the lease liability adjusted for initial direct costs, prepaid or accrued lease payments and lease incentives. The finance lease ROU assets are subsequently amortized using the straight-line method. Operating lease expenses are recognized on a straight-line basis over the lease term. With respect to finance leases, amortization of the ROU asset is presented separately from interest expense related to the finance lease liability. We have elected to combine lease and non-lease components for all lease contracts where we are the lessee. Additionally, for arrangements with lease terms of 12 months or less, we do not recognize ROU assets and lease liabilities and lease payments are recognized on a straight-line basis over the lease term with variable lease payments recognized in the period in which the obligation is incurred. ROU assets are measured for impairment when a triggering event occurs. During 2019, as a result of the reassessment of certain lease assets and liabilities due to triggering events, $82.1 million of finance lease right-of-use assets were converted to $39.9 million of operating lease right-of-use assets, and $2.7 million of short-term finance lease liabilities and $93.5 million of finance lease liabilities were converted to $3.5 million of short-term operating lease liabilities and $52.9 million of operating lease liabilities. Lease-related costs for the year ended December 31, 2019 are as follows (in thousands): Year Ended December 31, 2019 Finance lease cost Amortization of right-of-use assets $ 16,450 Interest on lease liabilities 28,972 Finance lease cost $ 45,422 Operating lease cost $ 8,771 Short-term lease cost 4,251 Total lease cost $ 58,444 Other information related to leases as of December 31, 2019 is as follows (in thousands, except lease term and rate): Operating Leases Finance Leases Right-of-use assets $ 62,537 $ 141,323 Lease liabilities 81,542 175,021 Weighted-average remaining lease term (years) 7.43 19.01 Weighted-average discount rate 12.40 % 15.70 % The following table provides certain cash flow and supplemental noncash information related to our lease liabilities for the year ended December 31, 2019 (in thousands): Operating Leases Operating cash paid to settle operating lease liabilities $ 8,748 Right-of-use assets obtained in exchange for lease liabilities 40,042 Finance Leases Operating cash paid for interest $ 23,730 Right-of-use assets obtained in exchange for lease liabilities 49 Future minimum lease payments under non-cancellable leases as of December 31, 2019 are as follows (in thousands): Operating Leases Finance Leases 2020 $ 18,059 $ 24,574 2021 18,256 26,145 2022 17,786 24,763 2023 16,936 23,876 2024 14,765 23,799 Thereafter 44,409 434,025 Total undiscounted lease payments $ 130,211 $ 557,182 Less: Imputed interest 48,669 382,161 Total lease liabilities $ 81,542 $ 175,021 As of December 31, 2019, we did not have additional operating and finance leases that have not yet commenced. Rent expense under ASC 840 was $8.7 million and $15.2 million for the years ended December 31, 2018 and 2017, respectively. |
LEASES | LEASES We have commitments under lease arrangements for data centers, office space, partner sites and equipment. Our leases have initial lease terms ranging from 2 years to 34 years , most of which include options to extend or renew the leases for 5 to 15 years , and some of which may include options to terminate the leases within 4 to 120 months . At contract inception, we evaluate whether an arrangement is or contains a lease for which we are the lessee (that is, arrangements which provide us with the right to control a physical asset for a period of time). Operating leases are accounted for on the consolidated balance sheets with ROU assets being recognized in "Operating lease right-of-use assets" and lease liabilities recognized in "Short-term operating lease liabilities" and "Operating lease liabilities." Finance leases are accounted for on the consolidated balance sheets with ROU assets being recognized in "Finance lease right-of-use assets" and lease liabilities recognized in "Short-term finance lease liabilities" and "Finance lease liabilities." All lease liabilities are measured at the present value of the unpaid lease payments, discounted using our incremental borrowing rate based on the information available at commencement date or modification date of the lease. ROU assets, for both operating and finance leases, are initially measured based on the lease liability, adjusted for initial direct costs, prepaid rent, and lease incentives received. The operating lease ROU assets are subsequently measured at the carrying amount of the lease liability adjusted for initial direct costs, prepaid or accrued lease payments and lease incentives. The finance lease ROU assets are subsequently amortized using the straight-line method. Operating lease expenses are recognized on a straight-line basis over the lease term. With respect to finance leases, amortization of the ROU asset is presented separately from interest expense related to the finance lease liability. We have elected to combine lease and non-lease components for all lease contracts where we are the lessee. Additionally, for arrangements with lease terms of 12 months or less, we do not recognize ROU assets and lease liabilities and lease payments are recognized on a straight-line basis over the lease term with variable lease payments recognized in the period in which the obligation is incurred. ROU assets are measured for impairment when a triggering event occurs. During 2019, as a result of the reassessment of certain lease assets and liabilities due to triggering events, $82.1 million of finance lease right-of-use assets were converted to $39.9 million of operating lease right-of-use assets, and $2.7 million of short-term finance lease liabilities and $93.5 million of finance lease liabilities were converted to $3.5 million of short-term operating lease liabilities and $52.9 million of operating lease liabilities. Lease-related costs for the year ended December 31, 2019 are as follows (in thousands): Year Ended December 31, 2019 Finance lease cost Amortization of right-of-use assets $ 16,450 Interest on lease liabilities 28,972 Finance lease cost $ 45,422 Operating lease cost $ 8,771 Short-term lease cost 4,251 Total lease cost $ 58,444 Other information related to leases as of December 31, 2019 is as follows (in thousands, except lease term and rate): Operating Leases Finance Leases Right-of-use assets $ 62,537 $ 141,323 Lease liabilities 81,542 175,021 Weighted-average remaining lease term (years) 7.43 19.01 Weighted-average discount rate 12.40 % 15.70 % The following table provides certain cash flow and supplemental noncash information related to our lease liabilities for the year ended December 31, 2019 (in thousands): Operating Leases Operating cash paid to settle operating lease liabilities $ 8,748 Right-of-use assets obtained in exchange for lease liabilities 40,042 Finance Leases Operating cash paid for interest $ 23,730 Right-of-use assets obtained in exchange for lease liabilities 49 Future minimum lease payments under non-cancellable leases as of December 31, 2019 are as follows (in thousands): Operating Leases Finance Leases 2020 $ 18,059 $ 24,574 2021 18,256 26,145 2022 17,786 24,763 2023 16,936 23,876 2024 14,765 23,799 Thereafter 44,409 434,025 Total undiscounted lease payments $ 130,211 $ 557,182 Less: Imputed interest 48,669 382,161 Total lease liabilities $ 81,542 $ 175,021 As of December 31, 2019, we did not have additional operating and finance leases that have not yet commenced. Rent expense under ASC 840 was $8.7 million and $15.2 million for the years ended December 31, 2018 and 2017, respectively. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
EQUITY | 5-percent shareholders, as defined in Section 382 of the Tax Code, increases by more than 50 percentage points over a rolling three-year period. The NOL Rights Agreement is designed to reduce the likelihood that the Company will experience an ownership change under Section 382 of the Tax Code by (i) discouraging any person or group from becoming a 4.9% stockholder and (ii) discouraging any existing 4.9% or more stockholder from acquiring additional shares of the Company’s stock. Authorization of Stock Repurchase In December 2018, INAP's Board of Directors authorized management to repurchase an initial $5.0 million of INAP common stock, as permitted under INAP's 2017 Credit Agreement. Repurchases of INAP's common stock may be made from time to time, subject to market conditions, in open market or through privately negotiated transactions. The Company has no obligation to repurchase shares under the authorization, and the timing, actual number and value of shares which are repurchased will depend on a number of factors, including the price of the Company's common stock. The Company may suspend or discontinue the repurchase program at any time. As of December 31, 2018 and 2019, there have been no shares repurchased under this program. During the pendency of the Chapter 11 Cases, the Company does not intend to repurchase shares of common stock. Public Offering On October 23, 2018, the Company closed a public offering of 4,210,527 shares of common stock at $9.50 per share to the public and received net proceeds of approximately $37.1 million (net of underwriting discounts and commissions, and other offering expenses of $0.5 million ). Securities Purchase Agreement On February 22, 2017, the Company entered into a securities purchase agreement (the "Securities Purchase Agreement") with certain purchasers (the "Purchasers"), pursuant to which the Company issued to the Purchasers an aggregate of 5,950,712 shares of the Company's common stock at a price of $7.24 per share, for the aggregate purchase price of $43.1 million , which closed on February 27, 2017. Conditions for the Securities Purchase Agreement included the following: (i) a requirement for the Company to use the funds of the sale of such common stock to repay indebtedness under the Credit Agreement, (ii) a 90-day "lock-up" period whereby the Company is restricted from certain sales of equity securities, and (iii) a requirement for the Company to pay certain transaction expenses of the Purchasers up to $100,000 . The Company used $39.2 million of the proceeds to pay down our debt. Registration Rights Agreement On February 22, 2017, the Company entered into a registration rights agreement (the "Registration Rights Agreement") with the Purchasers, which provides the Purchasers under the Securities Purchase Agreement the ability to request registration of such securities. Pursuant to the Registration Rights Agreement, the Company filed a registration statement in March 2017 that was declared effective during April 2017. Reverse Stock Split On November 16, 2017, the Company filed a Certificate of Amendment of the Restated Certificate of Incorporation (the "Certificate of Amendment") with the Secretary of State of Delaware to effect a 1-for-4 reverse stock split of the shares of our common stock, either issued and outstanding or held by the Company as treasury stock, effective as of 5:00 p.m. (Delaware time) on November 20, 2017 (the "Reverse Stock Split"). As a result of the Reverse Stock Split, every four shares of issued and outstanding Common Stock were automatically combined into one issued and outstanding share of Common Stock, without any change in the par value per share. All prior year share amounts and per share calculations included herein have been restated to reflect the impact of the Reverse Stock Split and to provide data on a comparable basis. Such restatements include calculations regarding the Company's weighted-average shares and loss per share, as well as disclosures regarding the Company's stock-based compensation plan and share repurchase. In addition, proportionate adjustments were made to the per share exercise price and the number of shares of Common Stock that may be purchased upon exercise of outstanding stock options and restricted stock granted by the Company, and the number of shares of Common Stock reserved for future issuance under the 2017 Stock Plan." id="sjs-B4">EQUITY NOL Rights Plan We entered into a rights agreement on December 18, 2019, with American Stock Transfer & Trust Company, LLC, as Rights Agent (the "NOL Rights Agreement"). The purpose of the NOL Rights Agreement is to reduce the risk that the Company’s ability to use its net operating losses and certain other tax assets (collectively, "Tax Benefits") to reduce potential future U.S. federal income tax obligations would become subject to limitations by reason of the Company’s experiencing an "ownership change," as defined in Section 382 of the U.S. Internal Revenue Code of 1986, as amended (the "Tax Code"). A company generally experiences such an ownership change if the percentage of its stock owned by its > 5-percent shareholders, as defined in Section 382 of the Tax Code, increases by more than 50 percentage points over a rolling three-year period. The NOL Rights Agreement is designed to reduce the likelihood that the Company will experience an ownership change under Section 382 of the Tax Code by (i) discouraging any person or group from becoming a 4.9% stockholder and (ii) discouraging any existing 4.9% or more stockholder from acquiring additional shares of the Company’s stock. Authorization of Stock Repurchase In December 2018, INAP's Board of Directors authorized management to repurchase an initial $5.0 million of INAP common stock, as permitted under INAP's 2017 Credit Agreement. Repurchases of INAP's common stock may be made from time to time, subject to market conditions, in open market or through privately negotiated transactions. The Company has no obligation to repurchase shares under the authorization, and the timing, actual number and value of shares which are repurchased will depend on a number of factors, including the price of the Company's common stock. The Company may suspend or discontinue the repurchase program at any time. As of December 31, 2018 and 2019, there have been no shares repurchased under this program. During the pendency of the Chapter 11 Cases, the Company does not intend to repurchase shares of common stock. Public Offering On October 23, 2018, the Company closed a public offering of 4,210,527 shares of common stock at $9.50 per share to the public and received net proceeds of approximately $37.1 million (net of underwriting discounts and commissions, and other offering expenses of $0.5 million ). Securities Purchase Agreement On February 22, 2017, the Company entered into a securities purchase agreement (the "Securities Purchase Agreement") with certain purchasers (the "Purchasers"), pursuant to which the Company issued to the Purchasers an aggregate of 5,950,712 shares of the Company's common stock at a price of $7.24 per share, for the aggregate purchase price of $43.1 million , which closed on February 27, 2017. Conditions for the Securities Purchase Agreement included the following: (i) a requirement for the Company to use the funds of the sale of such common stock to repay indebtedness under the Credit Agreement, (ii) a 90-day "lock-up" period whereby the Company is restricted from certain sales of equity securities, and (iii) a requirement for the Company to pay certain transaction expenses of the Purchasers up to $100,000 . The Company used $39.2 million of the proceeds to pay down our debt. Registration Rights Agreement On February 22, 2017, the Company entered into a registration rights agreement (the "Registration Rights Agreement") with the Purchasers, which provides the Purchasers under the Securities Purchase Agreement the ability to request registration of such securities. Pursuant to the Registration Rights Agreement, the Company filed a registration statement in March 2017 that was declared effective during April 2017. Reverse Stock Split On November 16, 2017, the Company filed a Certificate of Amendment of the Restated Certificate of Incorporation (the "Certificate of Amendment") with the Secretary of State of Delaware to effect a 1-for-4 reverse stock split of the shares of our common stock, either issued and outstanding or held by the Company as treasury stock, effective as of 5:00 p.m. (Delaware time) on November 20, 2017 (the "Reverse Stock Split"). As a result of the Reverse Stock Split, every four shares of issued and outstanding Common Stock were automatically combined into one issued and outstanding share of Common Stock, without any change in the par value per share. All prior year share amounts and per share calculations included herein have been restated to reflect the impact of the Reverse Stock Split and to provide data on a comparable basis. Such restatements include calculations regarding the Company's weighted-average shares and loss per share, as well as disclosures regarding the Company's stock-based compensation plan and share repurchase. In addition, proportionate adjustments were made to the per share exercise price and the number of shares of Common Stock that may be purchased upon exercise of outstanding stock options and restricted stock granted by the Company, and the number of shares of Common Stock reserved for future issuance under the 2017 Stock Plan. |
RELATED PARTY TRANSACTION
RELATED PARTY TRANSACTION | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTION | RELATED PARTY TRANSACTION Effective November 1, 2016, INAP leases office space in VA from Broad Valley Capital, LLC, a company 50% owned by Mr. Aquino and 50% by Mr. Diegnan. The lease is at-cost from Broad Valley Capital to INAP and total payment for rent, plus furniture, copier, office supplies, broadband and other for the years ended December 31, 2019 and 2018 was $158,258 and $146,571 , respectively, and $138,371 for the year ended December 31, 2017. In August 2019, INAP purchased from Broad Valley the office furniture and equipment located in the Reston, VA office for $73,530 . In November 2019, the lease was assigned to INAP. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENTS On March 16, 2020, the Company filed voluntary petitions for relief under Title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of New York, White Plains Division under the caption In re Internap Technology Solutions Inc. et al. See Note 1, "Description of the Company and Nature of Operations" for further detail. While the Company has not currently experienced a significant adverse impact to operating results as a result of COVID-19, the pandemic could result in complete or partial closure of one or more of our facilities or our customers’ or suppliers’ facilities, or otherwise result in significant disruptions to our or their business and operations. Such events could materially and adversely impact our operations and the revenue we generate from our customers. The Company could experience other potential impacts as a result of COVID-19, including, but not limited to, charges from potential adjustments to the carrying amount of goodwill, indefinite-lived intangibles and long-lived asset impairment charges. Actual results may differ materially from the Company’s current estimates as the scope of COVID-19 evolves or if the duration of business disruptions is longer than initially anticipated. On March 27, 2020, the “Coronavirus Aid, Relief, and Economic Security (CARES) Act" was enacted as a response to the COVID-19 outbreak discussed above and is meant to provide companies with economic relief. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations, increased limitations on qualified charitable contributions, and technical corrections to tax depreciation methods for qualified improvement property. Due to the Company’s filing for relief under Title 11 of the Bankruptcy Code, the Company is not eligible to receive funds under the CARES Act. |
UNAUDITED QUARTERLY RESULTS
UNAUDITED QUARTERLY RESULTS | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
UNAUDITED QUARTERLY RESULTS | UNAUDITED QUARTERLY RESULTS The following table sets forth selected unaudited quarterly data during the years ended December 31, 2019 and 2018 . The quarterly operating results below are not necessarily indicative of those in future periods (in thousands, except for share data). 2019 Quarter Ended March 31 June 30 September 30 December 31 Net revenues $ 73,873 $ 73,022 $ 72,960 $ 71,650 Costs of sales and services, exclusive of depreciation and amortization 25,649 26,045 27,549 27,703 Costs of customer support 8,790 8,726 8,145 6,450 Exit activities, restructuring and impairments 1,416 231 3,792 3,547 Net loss attributable to INAP shareholders (20,007 ) (17,982 ) (24,083 ) (76,178 ) Basic and diluted net loss per share $ (0.85 ) $ (0.76 ) $ (1.02 ) $ (3.21 ) 2018 Quarter Ended March 31 June 30 September 30 December 31 Net revenues $ 73,822 $ 82,253 $ 82,928 $ 77,155 Costs of sales and services, exclusive of depreciation and amortization 24,777 27,638 28,212 27,022 Costs of customer support 7,387 8,841 7,984 8,305 Exit activities, restructuring and impairments (33 ) 826 2,347 2,266 Net loss attributable to INAP shareholders (13,678 ) (13,802 ) (14,840 ) (18,880 ) Basic and diluted net loss per share $ (0.68 ) $ (0.69 ) $ (0.73 ) $ (0.80 ) |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (IN THOUSANDS) Balance at Beginning of Fiscal Period Charges to Costs and Expense Deductions Balance at End of Fiscal Period Year ended December 31, 2017 Allowance for doubtful accounts $ 1,246 $ 1,049 $ (808 ) (1) $ 1,487 Year ended December 31, 2018 Allowance for doubtful accounts 1,487 882 (822 ) (1) 1,547 Year ended December 31, 2019 Allowance for doubtful accounts $ 1,547 $ 899 $ (1,683 ) (1) $ 763 (1) Deductions in the allowance for doubtful accounts represent write-offs of uncollectible accounts net of recoveries. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Accounting Principles | Accounting Principles and Basis of Presentation We prepare our consolidated financial statements and accompanying notes in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. We have eliminated inter-company transactions and balances in consolidation. |
Reclassifications | Certain prior year amounts have been reclassified to conform to the current year presentation. |
Estimates and Assumptions | Estimates and Assumptions The preparation of these financial statements with GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expense and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, doubtful accounts, goodwill and intangible assets, accruals, stock-based compensation, income taxes, restructuring charges, leases, long-term service contracts, useful lives, contingencies and litigation. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly-liquid investments purchased with an original maturity of three months or less at the date of purchase and money market mutual funds to be cash equivalents. We maintain our cash and cash equivalents at major financial institutions and may at times exceed federally insured limits. We believe that the risk of loss is minimal. To date, we have not experienced any losses related to cash and cash equivalents. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consist of amounts due to the Company from normal business activities. The Company maintains an allowance for estimated losses resulting from the inability of its customers to make required payments. The Company estimates uncollectible amounts based upon historical bad debts, current customer receivable balances, the age of customer receivable balances, the customer's financial condition and current economic trends. |
Investment in Affiliates and Other Entities | Investment in Affiliates and Other Entities In the normal course of business, INAP enters into various types of investment arrangements, each having unique terms and conditions. These investments may include equity interests held by INAP in business entities, including general or limited partnerships, contractual ventures, or other forms of equity participation. The Company determines whether such investments involve a variable interest entity ("VIE") based on the characteristics of the subject entity. If the entity is determined to be a VIE, then management determines if INAP is the primary beneficiary of the entity and whether or not consolidation of the VIE is required. The primary beneficiary consolidating the VIE must normally have both (i) the power to direct the activities of a VIE that most significantly affect the VIE's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE, in either case that could potentially be significant to the VIE. When INAP is deemed to be the primary beneficiary, the VIE is consolidated and the other party's equity interest in the VIE is accounted for as a noncontrolling interest. If an entity fails to meet the characteristics of a VIE, the Company then evaluates such entity under the voting model. Under the voting model, the Company consolidates the entity if they determine that they, directly or indirectly, have greater than 50% of the voting shares, and determine that other equity holders do not have substantive participating rights. |
Noncontrolling Interest | Noncontrolling Interest Noncontrolling interests ("NCI") are evaluated by the Company and are shown as either a liability, temporary equity (shown between liabilities and equity) or as permanent equity depending on the nature of the redeemable features at amounts based on formulas specific to each entity. Generally, mandatorily redeemable NCIs are classified as liabilities and non-mandatorily redeemable NCIs are classified outside of stockholders' equity in the consolidated balance sheets as temporary equity under the caption, redeemable noncontrolling interests, and are measured at their redemption values at the end of each period. If the redemption value is greater than the carrying value, an adjustment is recorded in retained earnings to record the NCI at its redemption value. Redeemable NCIs that are mandatorily redeemable are classified as a liability in the consolidated balance sheets under either other current liabilities or other long-term liabilities, depending on the remaining duration until settlement, and are measured at the amount of cash that would be paid if settlement occurred at the balance sheet date with any change from the prior period recognized as interest expense. If the NCI is not currently redeemable yet probable of becoming redeemable, we are required to either (1) accrete changes in the redemption value over the period from the date of issuance to the earliest redemption date of the instrument using an appropriate methodology, usually the interest method, or (2) recognize changes in the redemption value immediately as they occur and adjust the carrying value of the security to equal the redemption value at the end of each reporting period. We have elected to recognize changes in the redemption value immediately as they occur and adjust the carrying value of the NCI to the greater of the estimated redemption value, which approximates fair value, at the end of each reporting period or the initial carrying amount. Net income attributable to NCIs reflects the portion of the net loss of consolidated entities applicable to the NCI stockholders in the accompanying consolidated statements of operations. The net income attributable to NCI is classified in the consolidated statements of operations as part of consolidated net loss and deducted from total consolidated net loss to arrive at the net loss attributable to the Company. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of our financial instruments, including cash and cash equivalents, accounts receivable and other current liabilities, approximate fair value due to the short-term nature of these assets and liabilities. We measure and report certain financial assets and liabilities at fair value on a recurring basis, including cash equivalents. The major categories of nonfinancial assets and liabilities that we measure at fair value include reporting units measured at fair value in step one of our goodwill and intangibles impairment test. |
Financial Instrument Credit Risk | Financial Instrument Credit Risk Financial instruments that potentially subject us to a concentration of credit risk principally consist of cash and cash equivalents, marketable securities, accounts receivable and accounts payable. Given the needs of our business, we may invest our cash and cash equivalents in money market funds. |
Property and Equipment | Property and Equipment We carry property and equipment at original acquisition cost less accumulated depreciation. We calculate depreciation on a straight-line basis over the estimated useful lives of the assets. Estimated useful lives used for network equipment are generally five years ; furniture, equipment and software are three to seven years ; and leasehold improvements are the shorter of the lease term or their estimated useful lives . We capitalize additions and improvements that increase the value or extend the life of an asset. We expense maintenance and repairs as incurred. We charge gains or losses from disposals of property and equipment to operations. |
Leases | Leases We lease certain data centers, office space, partner sites and equipment. An arrangement is considered to be a lease if the agreement conveys the right to control the use of the identified asset in exchange for consideration. We record leases as either finance leases or operating leases. The duration of lease obligations and commitments ranges from two years to 34 years for facilities. Equipment leases are included in this range. See Note 2, "Recent Accounting Pronouncements," for information about the new lease standard and Note 14, "Leases," for further detail. |
Costs of Internal-Use Computer Software Development | Costs of Internal-Use Computer Software Development We capitalize software development costs incurred during the application development stage. Depreciation begins once the software is ready for its intended use and is computed based on the straight-line method over the estimated useful life, which was 5 years for 2019 , 2018 and 2017 . Judgment is required in determining which software projects are capitalized and the resulting economic life. |
Valuation of Long-Lived Assets | Valuation of Long-Lived Assets We periodically evaluate the carrying value of our long-lived assets, including, but not limited to, property and equipment when there is a triggering event. We consider the carrying value of a long-lived asset impaired when the undiscounted cash flows from such asset are separately identifiable and we estimate them to be less than its carrying value. In that event, we would recognize a loss based on the amount by which the carrying value exceeds the fair value of the long-lived asset. We determine fair value based on either market quotes, if available, or discounted cash flows using a discount rate commensurate with the risk inherent in our current business model for the specific asset being valued. We would determine losses on long-lived assets to be disposed of in a similar manner, except that we would reduce fair values by the cost of disposal. We charge losses due to impairment of long-lived assets to operations during the period in which we identify the impairment. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets As of January 1, 2018, we changed our operating segments and subsequently, our reporting units. We have seven reporting units: US Colocation, US Cloud, US Network, INTL Colocation, INTL Cloud, INTL Network, and Ubersmith. We allocated goodwill to our new reporting units using a relative fair value approach. In addition, we completed an assessment of any potential goodwill impairment for all reporting units immediately prior to and after the reallocation and determined that no impairment existed. The Company tests goodwill for impairment annually in the third quarter as of August 1, or when events occur or circumstances change that could potentially reduce the fair value of the reporting unit. If the fair value of a reporting unit exceeds its carrying value, goodwill is not impaired and no further testing is necessary. If the carrying value of a reporting unit exceeds its fair value, we record the amount of impairment to goodwill, if any. In order to determine the estimated fair value of our reporting units, the Company considers the discounted cash flow method. INAP has consistently considered this method in its goodwill impairment assessments. The discounted cash flow method is specific to the anticipated future results of the reporting unit. The Company determines the assumptions supporting the discounted cash flow method, including the discount rate, using estimates as of the date of the impairment review. To determine the reasonableness of these assumptions, the Company considered the past performance and empirical trending of results, looked to market and industry expectations used in the discounted cash flow method, such as forecasted revenues and discount rate. The Company used reasonable judgment in developing its estimates and assumptions. The assumptions, inputs and judgments used in performing the valuation analysis are inherently subjective and reflect estimates based on known facts and circumstances at the time we perform the valuation. These estimates and assumptions primarily include, but are not limited to, discount rates; terminal growth rates; projected revenues and costs; earnings before interest, taxes, depreciation and amortization for expected cash flows; market comparables and capital expenditure forecasts. Due to the inherent uncertainty involved in making these estimates, actual results could differ from our estimates and could result in additional non-cash impairment charges in the future. Other intangible assets have finite lives and we record these assets at cost less accumulated amortization. We record amortization of acquired technologies using the greater of (a) the ratio of current revenues to total and anticipated future revenues for the applicable technology or (b) the straight-line method over the remaining estimated useful life. The intangible assets are being amortized over periods which reflect the pattern in which economic benefits of the assets are expected to be realized. We amortize the cost of the acquired technologies and noncompete agreements over their useful lives of 4 to 8 years and 8 to 15 years for trade names. Customer relationships are being amortized on an accelerated basis over their estimated useful life of 10 to 30 years . During the years ended December 31, 2019 , 2018 and 2017 , amortization expense for acquired and developed technologies was $4.5 million , $4.0 million and $2.1 million , respectively. |
Derivatives | Derivatives We use derivatives only to reduce exposure to specific identified risks including managing the overall cost of capital and translational and transactional exposure arising from foreign transactions and ensuring the certainty of outcome as it relates to commodity pricing exposure. We do not use derivatives for any other purpose. |
Exit Activities and Restructuring | Exit Activities and Restructuring When circumstances warrant, we may elect to exit certain business activities or change the manner in which we conduct ongoing operations. If we make such a change, we will estimate the costs to exit a business, location, service contract or restructure ongoing operations. The components of the estimates may include estimates and assumptions regarding the timing and costs of future events and activities that represent our best expectations based on known facts and circumstances at the time of estimation. If circumstances warrant, we will adjust our previous estimates to reflect what we then believe to be a more accurate representation of expected future costs. Because our estimates and assumptions regarding exit activities and restructuring charges include probabilities of future events, such as our ability to find a sublease tenant within a reasonable period of time or the rate at which a sublease tenant will pay for the available space, such estimates are inherently vulnerable to changes due to unforeseen circumstances that could materially and adversely affect our results of operations. We monitor market conditions at each period end reporting date and will continue to assess our key assumptions and estimates used in the calculation of our exit activities and restructuring accrual. |
Taxes | Taxes |
Stock-Based Compensation | Stock-Based Compensation We measure stock-based compensation cost at the grant date based on the calculated fair value of the award. We recognize the expense over the employee's requisite service period, generally the vesting period of the award. The fair value of restricted stock is the market value on the date of grant. The fair value of stock options is estimated at the grant date using the Black-Scholes option pricing model with weighted average assumptions for the activity under our stock plans. Option pricing model input assumptions, such as expected term, expected volatility and risk-free interest rate, impact the fair value estimate. Further, the forfeiture rate impacts the amount of aggregate compensation. These assumptions are subjective and generally require significant analysis and judgment to develop. The expected term represents the weighted average period of time that we expect granted options to be outstanding, considering the vesting schedules and our historical exercise patterns. Because our options are not publicly traded, we assume volatility based on the historical volatility of our stock. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding to the expected option term. We have also used historical data to estimate option exercises, employee termination and stock option forfeiture rates. Changes in any of these assumptions could materially impact our results of operations in the period the change is made. We do not recognize a deferred tax asset for unrealized tax benefits associated with the tax deductions in excess of the compensation recorded (excess tax benefit). We apply the "with and without" approach for utilization of tax attributes upon realization of net operating losses in the future. This method allocates stock-based compensation benefits last among other tax benefits recognized. In addition, we apply the "direct only" method of calculating the amount of windfalls or shortfalls. |
Treasury Stock | Treasury Stock As permitted by our stock-based compensation plans, we acquire shares of treasury stock as payment of statutory minimum payroll taxes due from employees for stock-based compensation. However, we do not use shares of treasury stock acquired from employees in this manner to issue new equity awards under our stock-based compensation plans. |
Revenue Recognition | Revenue Recognition In May 2014, the Financial Accounting Standard Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASC 606"). This standard update, along with related subsequently issued updates, clarifies the principles for recognizing revenue and develops a common revenue standard for GAAP. The standard update also amends current guidance for the recognition of costs to obtain and fulfill contracts with customers such that incremental costs of obtaining and direct costs of fulfilling contracts with customers will be deferred and amortized consistent with the transfer of the related good or service. ASC 606 intends to provide a more robust framework for addressing revenue issues; improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; and provide more useful information to users of financial statements through improved disclosure requirements. The Company adopted this guidance on January 1, 2018 using the modified retrospective method applying certain practical expedients. Following the adoption of this guidance, the revenue recognition for our sales arrangements remained materially consistent with our historical practice. The Company adopted the practical expedient for the portfolio approach of contracts with similar characteristics in which the Company reasonably expects that the effects on the financial statements of applying this practical expedient to the portfolio would not differ materially from applying this guidance to the individual contracts (or performance obligations) within that portfolio. The Company also adopted the practical expedient to not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) contracts for which INAP recognizes revenue at the amount to which the Company has the right to invoice for services performed, and (iii) the value for variable consideration that is applied to individual performance obligations in a series. The Company elected to exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer (e.g., sales, use, and value added taxes). We generate revenues primarily from the sale of data center services, including colocation, hosting and cloud, as well as network services. Our revenues typically consist of monthly recurring revenues from contracts with terms of one year or more and we typically recognize the monthly minimum as revenue each month as our performance obligations are fulfilled. We record installation fees as deferred revenue and recognize the revenue ratably over the estimated customer life. For our data center service revenues, we typically determine colocation revenues by occupied square feet and both allocated and variable-based usage, which includes both physical space for hosting customers' network and other equipment plus associated services such as power and network connectivity, environmental controls and security. We typically determine hosting revenues by the number of servers utilized (physical or virtual) and cloud revenues by the amount of processing and storage consumed. We typically determine network services revenues on fixed-commitment or usage-based pricing. Network service contracts usually have fixed minimum commitments based on a certain level of bandwidth usage with additional charges for any usage over a specified limit. If a customer's usage of our services exceeds the monthly minimum, we recognize revenue for such excess in the period of the usage. We use contracts and sales or purchase orders as evidence of an arrangement. We test for availability or connectivity to verify delivery of our services. We assess whether: a. the parties to the contract have an approved contract; b. the Company can identify each party's rights regarding the goods and services to be transferred; c. the Company can identify the payment terms for the goods or services to be transferred; d. the contract has commercial substance; and e. it is probable that the Company will collect substantially all of the consideration to which it will be entitled in exchange for the goods and services that will be transferred to the customer. The transaction price reflects INAP’s expectations about the consideration it will be entitled to receive from the customer. The Company considers the terms of the contract and its customary business practices to determine the transaction price. The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties (for example, some sales taxes). The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. After contract inception, the transaction price can change for various reasons, including the resolution of uncertain events or other changes in circumstances that change the amount of consideration to which INAP expects to be entitled in exchange for the promised goods or services. Once the separate performance obligations are identified and the transaction price has been determined, the Company allocates the transaction price to the performance obligations in proportion to their standalone selling price ("SSP"). When allocating on a relative SSP basis, any discount within the contract generally is allocated proportionately to all of the performance obligations in the contract. To allocate the transaction price on a relative SSP basis, the Company first determines the SSP of the distinct good or service underlying each performance obligation. It is the price at which the Company would sell a good or service on a standalone (or separate) basis at contract inception. The observable price of a good or service sold separately provides the best evidence of SSP. If a SSP is not directly observable, the Company will estimate the SSP. The Company will be able to consider its facts and circumstances in order to determine how frequently it will need to update the estimates. If the information used to estimate the SSP for similar transactions has not changed, the Company will determine that it is reasonable to use the previously determined SSP. Revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration the Company expects to be entitled to exchange for those goods or services. The Company enters into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. The Company's contracts with customers often include performance obligations to transfer multiple products and services to a customer. Common performance obligations of the Company include delivery of services. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together requires significant judgment by the Company. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC 606. A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Total transaction price is estimated for impact of variable consideration, such as INAP's service level arrangements, additional usage and late fees, discounts and promotions, and customer care credits. The majority of contracts have multiple performance obligations, as the promise to transfer individual goods or services is separately identifiable from other promises in the contracts and, therefore, is distinct. For contracts with multiple performance obligations, the Company allocates the contract's transaction price to each performance obligation based on its relative SSP. The SSP is determined based on observable price. In instances where the SSP is not directly observable, such as when the Company does not sell the product or service separately, INAP determines the SSP using information that may include market conditions and other observable inputs. The Company typically has more than one SSP for individual products and services due to the stratification of those products and services by customers and circumstances. In these instances, the Company may use information such as the size of the customer and geographic region in determining the SSP. The most significant impact of the adoption of the new standard was the requirement for incremental costs to obtain a customer, such as commissions, which previously were expensed as incurred, to be deferred and amortized over the period of contract performance or a longer period if renewals are expected and the renewal commission does not equal the initial commission. In addition, installation revenues are recognized over the initial contract life rather than over the estimated customer life, as installation revenues are not significant to the total contract and therefore do not represent a material right. Most performance obligations, with the exception of occasional sales of equipment or hardware, are satisfied over time as the customer consumes the benefits as we perform. For equipment and hardware sales, the performance obligation is satisfied when control transfers to the customer. The Company routinely reviews the collectability of its accounts receivable and payment status of customers. If the Company determines that collection of revenue is uncertain, it does not recognize revenue until collection is reasonably assured. Additionally, the Company maintains an allowance for doubtful accounts resulting from the inability of the Company's customers to make required payments on accounts receivable. The allowance for doubtful accounts is based on historical write-offs as a percentage of revenues. The Company assesses the payment status of customers by reference to the terms under which it provides services or goods, with any payments not made on or before their due date considered past-due. Once all collection efforts have been exhausted, the uncollectible balance is written off against the allowance for doubtful accounts. The Company routinely performs credit checks for new and existing customers and requires deposits or prepayments for customers that are perceived as being a credit risk. In addition, the Company records a reserve amount for potential credits to be issued under service level agreements and other sales adjustments. Management expects that commission fees paid to sales representatives as a result of obtaining service contracts and contract renewals are recoverable and therefore the Company deferred them as contract costs in the amount of $23.9 million and $24.9 million at December 31, 2019 and December 31, 2018, respectively. Capitalized commission fees are amortized on a straight-line basis over the determined life, which vary based on the customer segment. For the year ended December 31, 2019 and December 31, 2018, amortization recognized was $9.9 million and $9.6 million , respectively. There was no impairment loss recorded on capitalized contract costs for the year ended December 31, 2019 and December 31, 2018. Applying the practical expedient pertaining to contract costs, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. These costs are included in "Sales, general and administrative" expenses in the accompanying condensed consolidated statements of operations and comprehensive loss. The Company includes only those incremental costs that would not have been incurred if the contracts had not been entered into as follows (in thousands): Current Non-current Balance at December 31, 2018 $ 8,844 $ 16,104 Deferred customer acquisition costs incurred in the period 1,790 7,027 Amounts recognized as expense in the period (9,899 ) — Transition between short-term and long-term 8,304 (8,304 ) Balance at December 31, 2019 $ 9,039 $ 14,827 The Company classifies its right to consideration in exchange for deliverables as either a receivable or a contract asset. A receivable is a right to consideration that is unconditional (i.e. only the passage of time is required before payment is due). For example, the Company recognizes a receivable for revenues related to its time and materials and transaction or volume-based contracts. The Company presents such receivables in "Accounts receivable, net" it its condensed consolidated balance sheets at their net estimated realizable value. As of December 31, 2019, approximately $169.2 million of total revenues and deferred revenues are expected to be recognized in future periods with a weighted average life of 2.04 years for remaining performance obligations under the initial contract terms. The remaining performance obligations do not include variable consideration. Amounts collected in advance of services being provided are accounted for as contract liabilities, which are presented as "Deferred revenues" on the accompanying condensed consolidated balance sheets and are realized with the associated revenue recognized under the contract. Nearly all of the Company's contract liabilities balance is related to service revenue. Significant changes in the deferred revenues balance (current and non-current) during the period are as follows (in thousands): Balance at December 31, 2018 $ 9,318 Revenue recognized that was included in the deferred revenue balance at December 31, 2018 (6,325 ) Increases due to cash received, excluding amounts recognized as revenue during the period 4,215 Balance at December 31, 2019 $ 7,208 |
Research and Development Costs | Research and Development Costs We include research and development costs in general and administrative costs and we expense them as incurred. These costs primarily relate to our development and enhancement of IP routing technology, hosting and cloud technologies and network engineering costs associated with changes to the functionality of our services. |
Advertising Costs | Advertising Costs We expense all advertising costs as incurred. |
Net Loss Per Share | Net Loss Per Share We compute basic net loss per share by dividing net loss attributable to our common stockholders by the weighted average number of shares of common stock outstanding during the period. We exclude all outstanding options and unvested restricted stock as such securities are anti-dilutive for all periods presented. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements New Accounting Pronouncements adopted in 2019 In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASC 842"), which states that a lessee should recognize the assets and liabilities that arise from leases. The standard has since been modified with several ASUs (collectively, the "new lease standard"). The new lease standard is effective for annual and interim periods beginning after December 15, 2018. Earlier adoption is permitted. The Company adopted the new lease standard on January 1, 2019, the beginning of fiscal 2019. Prior periods presented in our consolidated financial statements continue to be presented in accordance with the former lease standard, Topic 840, Leases ("ASC 840"). The new lease standard provides entities two options for applying the modified retrospective approach (1) retrospectively to each prior reporting period presented in the financial statements with the cumulative-effect adjustment recognized at the beginning of the earliest comparative period presented or (2) retrospectively at the beginning of the period of adoption (January 1, 2019) through a cumulative-effect adjustment recognized then. The Company adopted the new lease standard by recognizing and measuring leases at the adoption date with a cumulative effect of initially applying the guidance recognized at the date of initial application. The most significant impact relates to the recognition on the Company's balance sheet of right-of-use ("ROU") assets and lease liabilities for all operating leases. Consistent with current guidance, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily depends on its classification. For income statement purposes, operating leases will result in a straight-line expense while finance leases will result in a front-loaded expense pattern. The Company elected the package of practical expedients to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs. The Company did not separately record lease components from non-lease components, and accounts for them together as a single lease component. INAP made an accounting policy election to not record leases with an initial term of 12 months or less on the balance sheet. The Company recognizes lease expense for these short-term leases on a straight-line basis over the lease term in the consolidated statements of operations and comprehensive loss. The Company has elected to not record a ROU asset or ROU liability for leases with an asset or liability balance that would be less than one thousand dollars ($1,000) on the adoption date on the basis of materiality. This threshold continues to be consistent with the Company’s Property and Equipment capitalization threshold. As a result of our adoption of the new lease standard, we have implemented a new lease accounting system, accounting policies and processes which changed the Company's internal controls over financial reporting for lease accounting. The Company has capital leases which have been recorded on the consolidated balance sheets and as of the January 1, 2019 transition date, the capital leases became finance leases establishing the ROU asset and liability. The ROU assets and liabilities for operating leases were $ 28.5 million and $ 31.0 million of total Company assets and liabilities, respectively, as of January 1, 2019. In June 2018, the FASB issued ASU 2018-07, Improvements to Non-employee Share-Based Payment Accounting. This standard broadens the scope of FASB ASC Topic 718, Compensation — Stock Compensation , which currently covers only share-based payments to employees. The change substantially aligns the accounting for share-based payments for both employees and non-employees. The ASU supersedes Subtopic 505-50, Equity — Equity-Based Payments to Non-Employees. The measurement of equity-classified non-employee awards will be fixed at the grant date, and entities will measure the cost of awards subject to a performance condition using the outcome that is probable at the balance sheet date. Entities may use the expected term to measure non-employee options or elect to use the contractual term as the expected term, on an award-by-award basis. Entities will recognize a cumulative-effect adjustment to retained earnings for equity classified non-employee awards for which a measurement date has not been established and liability-classified non-employee awards that have not been settled. The guidance is effective for calendar-year public business entities in annual periods beginning after December 15, 2018, and interim periods within those years. The Company adopted this pronouncement in the first quarter of 2019 and it did not have a material impact on its consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220) . This standard provides an option to reclassify stranded tax effects within accumulated other comprehensive income (loss) (“AOCI”) to retained earnings due to the U.S. federal corporate income tax rate change in the Tax Cuts and Jobs Act of 2017. This standard was effective for interim and annual reporting periods beginning after December 15, 2018. We did not exercise the option to make this reclassification. Accounting Pronouncements Issued But Not Yet Effective In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This standard update, along with related subsequently issued updates, is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The ASU requires the measurement of all expected credit losses for financial assets including trade receivables, loans and held-to-maturity debt securities held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This will result in the earlier recognition of credit losses. For available-for-sale debt securities, entities will be required to recognize an allowance for credit losses rather than a reduction to the carrying value of the asset. If expected cash flows improve, an entity will reduce the allowance and reverse the expense through income. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Entities will have to make more disclosures, including disclosures by year of origination for certain financing receivables. The ASU for SEC filers, excluding smaller reporting companies as defined by the SEC, is effective for fiscal years beginning after December 15, 2019. For all other entities, the ASU is effective for fiscal years beginning after December 15, 2022. The Company is evaluating the impact, if any, that this pronouncement will have on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) , relating to a customer's accounting for implementation, set-up, and other upfront costs incurred in a cloud computing arrangement that is hosted by a vendor (i.e., a service contract). Under the new guidance, a customer will apply the same criteria for capitalizing implementation costs as it would for an arrangement that has a software license. The new guidance also prescribes the balance sheet, income statement, and cash flow classification of the capitalized implementation costs and related amortization expense, and requires additional quantitative and qualitative disclosures. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application is permitted. The Company can choose to adopt the new guidance (1) prospectively to eligible costs incurred on or after the date this guidance is first applied, or (2) retrospectively. The Company is evaluating the impact, if any, that this pronouncement will have on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement , which removes, adds and modifies certain disclosure requirements for fair value measurements in Topic 820. The Company will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, and the valuation processes of Level 3 fair value measurements. However, the Company will be required to additionally disclose the changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements, and the range and weighted average of assumptions used to develop significant unobservable inputs for Level 3 fair value measurements. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments relating to additional disclosure requirements will be applied prospectively for only the most recent interim or annual period presented in the initial year of adoption. All other amendments will be applied retrospectively to all periods presented upon their effective date. The Company is permitted to early adopt either the entire ASU or only the provisions that eliminate or modify the requirements. The Company is evaluating the impact, if any, that this pronouncement will have on its consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . The ASU removes the exception to the general principles in ASC 740, Income Taxes, associated with the incremental approach for intra-period tax allocation, accounting for basis differences when there are ownership changes in foreign investments and interim-period income tax accounting for year-to-date losses that exceed anticipated losses. In addition, the ASU improves the application of income tax related guidance and simplifies U.S. GAAP when accounting for franchise taxes that are partially based on income, transactions with government resulting in a step-up in tax basis goodwill, separate financial statements of legal entities not subject to tax, and enacted changes in tax laws in interim periods. Different transition approaches, retrospective, modified retrospective, or prospective, will apply to each income tax simplification provision. The guidance is effective for calendar-year public business entities in 2021 and interim periods within that year, and early adoption is permitted. The Company is evaluating the impact, if any, that this pronouncement will have on its consolidated financial statements. |
Fair Value Measurement | We account for certain assets and liabilities at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: • Level 1: Quoted prices in active markets for identical assets or liabilities; • Level 2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | The adjustments to the Company’s annual and quarterly previously issued consolidated statements of operations and comprehensive loss and consolidated balance sheets are as follows (in thousands): For the quarter ended March 31, 2017 As reported Adjustments As revised Depreciation and amortization - QTD $ 17,745 $ (184 ) $ 17,561 Depreciation and amortization - YTD 17,745 (184 ) 17,561 Net loss attributable to shareholders - QTD (8,230 ) 184 (8,046 ) Net loss attributable to shareholders - YTD (8,230 ) 184 (8,046 ) Property and equipment, net 291,583 689 292,272 Total assets 415,108 689 415,797 Accumulated deficit (1,286,579 ) 689 (1,285,890 ) Total stockholders' equity (deficit) $ 29,302 $ 689 $ 29,991 For the quarter ended June 30, 2017 As reported Adjustments As revised Depreciation and amortization - QTD $ 18,934 $ (179 ) $ 18,755 Depreciation and amortization - YTD 36,679 (363 ) 36,316 Interest expense - QTD 17,145 (210 ) 16,935 Interest expense - YTD 25,282 (210 ) 25,072 Net loss attributable to shareholders - QTD (19,283 ) 389 (18,894 ) Net loss attributable to shareholders - YTD (27,513 ) 573 (26,940 ) Property and equipment, net 427,873 868 428,741 Total assets 561,068 868 561,936 Term loan, less discount and issuance costs 288,254 (210 ) 288,044 Total liabilities 550,561 (210 ) 550,351 Accumulated deficit (1,305,894 ) 1,078 (1,304,816 ) Total stockholders' equity (deficit) $ 10,507 $ 1,078 $ 11,585 For the quarter ended September 30, 2017 As reported Adjustments As revised Depreciation and amortization - QTD $ 20,917 $ (597 ) $ 20,320 Depreciation and amortization - YTD 57,596 (960 ) 56,636 Interest expense - QTD 12,299 349 12,648 Interest expense - YTD 37,581 139 37,720 Net loss attributable to shareholders - QTD (10,895 ) 248 (10,647 ) Net loss attributable to shareholders - YTD (38,409 ) 822 (37,587 ) Prepaid expenses and other assets 9,036 579 9,615 Property and equipment, net 441,239 1,465 442,704 Total assets 567,432 2,044 569,476 Accounts payable 16,732 579 17,311 Capital lease obligations - current 11,729 (1,445 ) 10,284 Capital lease obligations - noncurrent 206,927 1,794 208,721 Term loan, less discount and issuance costs 288,034 (210 ) 287,824 Total liabilities 562,822 928 563,750 Accumulated deficit (1,316,788 ) 1,326 (1,315,462 ) Total stockholders' equity (deficit) $ 4,610 $ 1,326 $ 5,936 For the quarter ended December 31, 2017 As reported Adjustments As revised Depreciation and amortization - QTD $ 17,397 $ (604 ) $ 16,793 Depreciation and amortization - YTD 74,993 (1,564 ) 73,429 Interest expense - QTD 12,895 318 13,213 Interest expense - YTD 50,476 457 50,933 Net loss attributable to shareholders - QTD (6,934 ) 285 (6,649 ) Net loss attributable to shareholders - YTD (45,343 ) 1,107 (44,236 ) Cash and cash equivalents 14,603 (562 ) 14,041 Accounts receivable, net 17,794 562 18,356 Property and equipment, net 458,565 2,069 460,634 Total assets 586,525 2,069 588,594 Accrued liabilities 15,908 318 16,226 Capital lease obligations - current 11,711 (1,445 ) 10,266 Capital lease obligations - noncurrent 223,749 1,794 225,543 Term loan, less discount and issuance costs 287,845 (210 ) 287,635 Total liabilities 587,557 457 588,014 Accumulated deficit (1,323,723 ) 1,612 (1,322,111 ) Total stockholders' (deficit) equity $ (1,032 ) $ 1,612 $ 580 For the quarter ended March 31, 2018 As reported Adjustments As revised Net revenues - QTD $ 74,201 $ (379 ) $ 73,822 Net revenues - YTD 74,201 (379 ) 73,822 Cost of sales and services, exclusive of depreciation and amortization - QTD 24,607 170 24,777 Cost of sales and services, exclusive of depreciation and amortization - YTD 24,607 170 24,777 Sales, general and administrative - QTD 19,854 (53 ) 19,801 Sales, general and administrative - YTD 19,854 (53 ) 19,801 Depreciation and amortization - QTD 21,158 (635 ) 20,523 Depreciation and amortization - YTD 21,158 (635 ) 20,523 Interest expense - QTD 15,604 (471 ) 15,133 Interest expense - YTD 15,604 (471 ) 15,133 Net loss attributable to shareholders - QTD (14,288 ) 610 (13,678 ) Net loss attributable to shareholders - YTD (14,288 ) 610 (13,678 ) Accounts receivable, net 17,524 (379 ) 17,145 Contract assets - current 7,131 366 7,497 Property and equipment, net 471,752 4,687 476,439 Goodwill 118,077 (980 ) 117,097 Contract assets - noncurrent 12,056 70 12,126 Total assets 742,358 3,764 746,122 Accrued liabilities 14,279 (83 ) 14,196 Deferred revenues - current 5,871 660 6,531 Capital lease obligations - current 10,095 (67 ) 10,028 Other long-term liabilities 3,046 801 3,847 Capital lease obligations - noncurrent 234,199 2,298 236,497 Total liabilities 733,748 3,609 737,357 Accumulated deficit (1,313,826 ) 3,217 (1,310,609 ) Total stockholders' (deficit) equity $ 8,594 $ 3,217 $ 11,811 For the quarter ended June 30, 2018 As reported Adjustments As revised Net revenues - QTD $ 81,962 $ 291 $ 82,253 Net revenues - YTD 156,163 (88 ) 156,075 Cost of sales and services, exclusive of depreciation and amortization - QTD 27,331 307 27,638 Cost of sales and services, exclusive of depreciation and amortization - YTD 51,938 477 52,415 Sales, general and administrative - QTD 19,602 (11 ) 19,591 Sales, general and administrative - YTD 39,456 (64 ) 39,392 Depreciation and amortization - QTD 22,712 (533 ) 22,179 Depreciation and amortization - YTD 43,870 (1,168 ) 42,702 Interest expense - QTD 16,739 51 16,790 Interest expense - YTD 32,343 (420 ) 31,923 Net loss attributable to shareholders - QTD (14,279 ) 477 (13,802 ) Net loss attributable to shareholders - YTD (28,567 ) 1,087 (27,480 ) Accounts receivable, net 20,251 (88 ) 20,163 Property and equipment, net 463,273 5,155 468,428 Goodwill 735,022 5,067 740,089 Total assets 17,059 (166 ) 16,893 Capital lease obligations - current 10,246 9 10,255 Capital lease obligations - noncurrent 231,576 2,420 233,996 Total liabilities 740,583 2,263 742,846 Additional paid-in-capital 1,329,368 (102 ) 1,329,266 Accumulated deficit (1,329,086 ) 2,699 (1,326,387 ) Total stockholders' (deficit) equity $ (5,605 ) $ 2,597 $ (3,008 ) For the quarter ended September 30, 2018 As reported Adjustments As revised Net revenues - QTD $ 82,972 $ (44 ) $ 82,928 Net revenues - YTD 239,135 (132 ) 239,003 Cost of sales and services, exclusive of depreciation and amortization - QTD 28,221 (9 ) 28,212 Cost of sales and services, exclusive of depreciation and amortization - YTD 80,160 468 80,628 Sales, general and administrative - QTD 18,170 (185 ) 17,985 Sales, general and administrative - YTD 57,625 (249 ) 57,376 Depreciation and amortization - QTD 23,553 (544 ) 23,009 Depreciation and amortization - YTD 67,422 (1,712 ) 65,710 Interest expense - QTD 17,794 55 17,849 Interest expense - YTD 50,138 (365 ) 49,773 Net loss attributable to shareholders - QTD (15,479 ) 639 (14,840 ) Net loss attributable to shareholders - YTD (44,046 ) 1,726 (42,320 ) Accounts receivable, net 22,999 (132 ) 22,867 Property and equipment, net 487,616 5,699 493,315 Total assets 756,231 5,567 761,798 Accrued liabilities 17,866 (249 ) 17,617 Capital lease obligations - current 9,399 86 9,485 Capital lease obligations - noncurrent 263,676 2,391 266,067 Total liabilities 776,154 2,228 778,382 Accumulated deficit (1,344,566 ) 3,338 (1,341,228 ) Total stockholders' (deficit) equity $ (19,923 ) $ 3,338 $ (16,585 ) For the quarter ended December 31, 2018 As reported Adjustments As revised Net revenues - QTD $ 78,238 $ (1,083 ) $ 77,155 Net revenues - YTD 317,373 (1,215 ) 316,158 Cost of sales and services, exclusive of depreciation and amortization - QTD 27,102 (80 ) 27,022 Cost of sales and services, exclusive of depreciation and amortization - YTD 107,262 387 107,649 Sales, general and administrative - QTD 17,731 (83 ) 17,648 Sales, general and administrative - YTD 75,356 (333 ) 75,023 Depreciation and amortization - QTD 23,254 (544 ) 22,710 Depreciation and amortization - YTD 90,676 (2,260 ) 88,416 Interest expense - QTD 17,994 55 18,049 Interest expense - YTD 68,132 (309 ) 67,823 Net loss attributable to shareholders - QTD (18,454 ) (426 ) (18,880 ) Net loss attributable to shareholders - YTD (62,500 ) 1,300 (61,200 ) Accounts receivable, net 20,054 (431 ) 19,623 Property and equipment, net 478,061 6,245 484,306 Total assets 744,931 5,814 750,745 Accrued liabilities 15,540 (333 ) 15,207 Deferred revenues - current 8,022 440 8,462 Capital lease obligations - current 9,080 91 9,171 Deferred revenues - noncurrent 511 345 856 Capital lease obligations - noncurrent 262,382 2,359 264,741 Total liabilities 744,874 2,902 747,776 Accumulated deficit (1,363,019 ) 2,912 (1,360,107 ) Total stockholders' (deficit) equity $ 57 $ 2,912 $ 2,969 For the quarter ended March 31, 2019 As reported Adjustments As revised Net revenues - QTD $ 73,564 $ 309 $ 73,873 Net revenues - YTD 73,564 309 73,873 Cost of sales and services, exclusive of depreciation and amortization - QTD 25,733 (84 ) 25,649 Cost of sales and services, exclusive of depreciation and amortization - YTD 25,733 (84 ) 25,649 Sales, general and administrative - QTD 17,521 704 18,225 Sales, general and administrative - YTD 17,521 704 18,225 Depreciation and amortization - QTD 22,178 (2 ) 22,176 Depreciation and amortization - YTD 22,178 (2 ) 22,176 Interest expense - QTD 17,447 54 17,501 Interest expense - YTD 17,447 54 17,501 Net loss attributable to shareholders - QTD (19,644 ) (363 ) (20,007 ) Net loss attributable to shareholders - YTD (19,644 ) (363 ) (20,007 ) Property and equipment, net 229,185 4,206 233,391 Finance lease right-of-use assets 236,077 2,042 238,119 Total assets 748,342 6,248 754,590 Deferred revenues - current 7,881 439 8,320 Short-term finance lease liabilities 8,328 93 8,421 Deferred revenues - noncurrent 341 467 808 Finance lease liabilities 262,632 2,327 264,959 Total liabilities 768,314 3,326 771,640 Additional paid-in-capital 1,369,815 371 1,370,186 Accumulated deficit (1,382,715 ) 2,549 (1,380,166 ) Total stockholders' (deficit) equity $ (19,972 ) $ 2,549 $ (17,423 ) For the quarter ended June 30, 2019 As reported Adjustments As revised Net revenues - QTD $ 73,134 $ (112 ) $ 73,022 Net revenues - YTD 146,698 (30 ) 146,668 Cost of sales and services, exclusive of depreciation and amortization - QTD 25,949 96 26,045 Cost of sales and services, exclusive of depreciation and amortization - YTD 51,682 12 51,694 Sales, general and administrative - QTD 15,683 (371 ) 15,312 Sales, general and administrative - YTD 33,204 — 33,204 Depreciation and amortization - QTD 21,955 (450 ) 21,505 Depreciation and amortization - YTD 44,133 (812 ) 43,321 Interest expense - QTD 19,218 40 19,258 Interest expense - YTD 36,665 94 36,759 Net loss attributable to shareholders - QTD (18,555 ) 573 (17,982 ) Net loss attributable to shareholders - YTD (38,199 ) 210 (37,989 ) Accounts receivable, net 18,563 (704 ) 17,859 Property and equipment, net 223,497 4,713 228,210 Finance lease right-of-use assets 229,228 1,895 231,123 Total assets 740,796 5,904 746,700 Deferred revenues - current 7,917 (71 ) 7,846 Short-term finance lease liabilities 5,930 181 6,111 Deferred revenues - noncurrent 312 384 696 Finance lease liabilities 262,476 2,289 264,765 Total liabilities 778,329 2,783 781,112 Accumulated deficit (1,401,270 ) 3,122 (1,398,148 ) Total stockholders' (deficit) equity $ (37,533 ) $ 3,122 $ (34,411 ) For the quarter ended September 30, 2019 As reported Adjustments As revised Net revenues - QTD $ 72,878 $ 82 $ 72,960 Net revenues - YTD 219,576 52 219,628 Cost of sales and services, exclusive of depreciation and amortization - QTD 27,504 45 27,549 Cost of sales and services, exclusive of depreciation and amortization - YTD 79,186 57 79,243 Depreciation and amortization - QTD 21,582 (583 ) 20,999 Depreciation and amortization - YTD 65,715 (1,395 ) 64,320 Exit activities, restructuring and impairments - QTD 3,792 1,126 4,918 Exit activities, restructuring and impairments - YTD 5,439 1,126 6,565 Interest expense - QTD 19,913 (293 ) 19,620 Interest expense - YTD 56,578 (199 ) 56,379 Net loss attributable to shareholders - QTD (23,870 ) (213 ) (24,083 ) Net loss attributable to shareholders - YTD (62,069 ) (3 ) (62,072 ) Accounts receivable, net 17,948 (704 ) 17,244 Property and equipment, net 216,548 4,097 220,645 Finance lease right-of-use assets 226,619 (196 ) 226,423 Total assets 724,701 3,197 727,898 Deferred revenues - current 7,493 (71 ) 7,422 Short-term finance lease liabilities 5,867 12 5,879 Deferred revenues - noncurrent 259 302 561 Finance lease liabilities 264,223 42 264,265 Total liabilities 784,913 285 785,198 Accumulated deficit (1,425,140 ) 2,909 (1,422,231 ) Total stockholders' (deficit) equity $ (60,212 ) $ 2,909 $ (57,303 ) The adjustments to the Company’s previously issued consolidated statements of cash flows are as follows (in thousands): Three Months Ended March 31, 2017 As reported Adjustments As revised Net loss $ (8,230 ) $ 184 $ (8,046 ) Depreciation and amortization $ 17,745 $ (184 ) $ 17,561 Six Months Ended June 30, 2017 As reported Adjustments As revised Net loss $ (27,513 ) $ 573 $ (26,940 ) Depreciation and amortization 36,679 (363 ) 36,316 Amortization of debt discount and issuance costs $ 1,292 $ (210 ) $ 1,082 Nine Months Ended September 30, 2017 As reported Adjustments As revised Net loss $ (38,377 ) $ 821 $ (37,556 ) Depreciation and amortization 57,596 (960 ) 56,636 Amortization of debt discount and issuance costs 1,890 (210 ) 1,680 Non-cash change in finance lease liabilities 564 349 913 Prepaid expenses, deposits and other assets 1,979 (579 ) 1,400 Accounts payable $ (2,168 ) $ 579 $ (1,589 ) Year Ended December 31, 2017 As reported Adjustments As revised Net loss $ (45,273 ) $ 1,107 $ (44,166 ) Depreciation and amortization 74,993 (1,564 ) 73,429 Amortization of debt discount and issuance costs 2,519 (210 ) 2,309 Non-cash change in finance lease liabilities 520 667 1,187 Accounts receivable (207 ) (562 ) (769 ) Net cash provided by operating activities 41,966 (562 ) 41,404 Net (decrease) increase in cash and cash equivalents 4,214 (562 ) 3,652 Cash and cash equivalents at end of period $ 14,603 $ (562 ) $ 14,041 Three Months Ended March 31, 2018 As reported Adjustments As revised Net loss $ (14,261 ) $ 610 $ (13,651 ) Depreciation and amortization 21,158 (635 ) 20,523 Amortization of debt discount and issuance costs 638 420 1,058 Non-cash change in finance lease liabilities (213 ) (1,212 ) (1,425 ) Accounts receivable 864 379 1,243 Prepaid expenses, deposits and other assets (467 ) (544 ) (1,011 ) Accrued and other liabilities (2,904 ) 83 (2,821 ) Deferred revenues (138 ) 1,461 1,323 Net cash provided by operating activities 3,573 562 4,135 Net (decrease) increase in cash and cash equivalents 1,556 562 2,118 Cash and cash equivalents at beginning of period $ 14,603 $ (562 ) $ 14,041 Six Months Ended June 30, 2018 As reported Adjustments As revised Net loss $ (28,517 ) $ 1,087 $ (27,430 ) Depreciation and amortization 43,870 (1,168 ) 42,702 Amortization of debt discount and issuance costs 1,712 420 2,132 Stock-based compensation expense, net of capitalized amount 2,232 96 2,328 Non-cash change in finance lease liabilities (371 ) (820 ) (1,191 ) Accounts receivable (2,165 ) 88 (2,077 ) Prepaid expenses, deposits and other assets (4,073 ) (436 ) (4,509 ) Accrued and other liabilities (585 ) (166 ) (751 ) Deferred revenues 1,249 1,461 2,710 Net cash provided by operating activities 14,935 562 15,497 Net (decrease) increase in cash and cash equivalents 136 562 698 Cash and cash equivalents at beginning of period $ 14,603 $ (562 ) $ 14,041 Nine Months Ended September 30, 2018 As reported Adjustments As revised Net loss $ (43,971 ) $ 1,726 $ (42,245 ) Depreciation and amortization 67,422 (1,712 ) 65,710 Amortization of debt discount and issuance costs 2,798 420 3,218 Stock-based compensation expense, net of capitalized amount 3,573 96 3,669 Non-cash change in finance lease liabilities (241 ) (774 ) (1,015 ) Accounts receivable (4,990 ) 132 (4,858 ) Prepaid expenses, deposits and other assets (3,531 ) (436 ) (3,967 ) Accrued and other liabilities (601 ) (351 ) (952 ) Deferred revenues 617 1,461 2,078 Net cash provided by operating activities 24,381 562 24,943 Net (decrease) increase in cash and cash equivalents (2,759 ) 562 (2,197 ) Cash and cash equivalents at beginning of period $ 14,603 $ (562 ) $ 14,041 Year Ended December 31, 2018 As reported Adjustments As revised Net loss $ (62,375 ) $ 1,300 $ (61,075 ) Depreciation and amortization 90,676 (2,260 ) 88,416 Amortization of debt discount and issuance costs 3,874 210 4,084 Non-cash change in finance lease liabilities 2,640 (133 ) 2,507 Accounts receivable (1,352 ) 993 (359 ) Accrued and other liabilities (1,583 ) (333 ) (1,916 ) Deferred revenues 435 785 1,220 Net cash provided by operating activities 34,779 562 35,341 Net (decrease) increase in cash and cash equivalents 3,220 562 3,782 Cash and cash equivalents at beginning of period $ 14,603 $ (562 ) $ 14,041 Three Months Ended March 31, 2019 As reported Adjustments As revised Net loss $ (19,622 ) $ (363 ) $ (19,985 ) Depreciation and amortization 22,178 (2 ) 22,176 Stock-based compensation expense, net of capitalized amount 890 (371 ) 519 Non-cash change in finance lease liabilities 148 (276 ) (128 ) Accounts receivable (1,617 ) 431 (1,186 ) Accrued and other liabilities (2,238 ) (325 ) (2,563 ) Deferred revenues $ (262 ) $ 906 $ 644 Six Months Ended June 30, 2019 As reported Adjustments As revised Net loss $ (38,157 ) $ 210 $ (37,947 ) Depreciation and amortization 44,133 (812 ) 43,321 Stock-based compensation expense, net of capitalized amount 1,901 (371 ) 1,530 Non-cash change in finance lease liabilities 3,520 (150 ) 3,370 Accounts receivable 1,210 1,135 2,345 Accrued and other liabilities (3,146 ) (325 ) (3,471 ) Deferred revenues $ (323 ) $ 313 $ (10 ) Nine Months Ended September 30, 2019 As reported Adjustments As revised Net loss $ (62,006 ) $ (3 ) $ (62,009 ) Depreciation and amortization 65,715 (1,395 ) 64,320 Non-cash change in finance lease liabilities 4,863 (357 ) 4,506 Accounts receivable 1,593 1,135 2,728 Accrued and other liabilities (5,378 ) (325 ) (5,703 ) Deferred revenues $ (804 ) $ 231 $ (573 ) |
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 as follows (in thousands): Current Non-current Balance at December 31, 2018 $ 8,844 $ 16,104 Deferred customer acquisition costs incurred in the period 1,790 7,027 Amounts recognized as expense in the period (9,899 ) — Transition between short-term and long-term 8,304 (8,304 ) Balance at December 31, 2019 $ 9,039 $ 14,827 Significant changes in the deferred revenues balance (current and non-current) during the period are as follows (in thousands): Balance at December 31, 2018 $ 9,318 Revenue recognized that was included in the deferred revenue balance at December 31, 2018 (6,325 ) Increases due to cash received, excluding amounts recognized as revenue during the period 4,215 Balance at December 31, 2019 $ 7,208 |
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, 2019 2018 2017 Net loss attributable to shareholders $ (138,250 ) $ (61,200 ) $ (44,236 ) Weighted average shares outstanding, basic and diluted 23,790 20,732 18,993 Net loss per share, basic and diluted $ (5.81 ) $ (2.95 ) $ (2.33 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value hierarchy for financial assets measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis are summarized as follows (in thousands): Level 1 Level 2 Level 3 Total December 31, 2019: Asset retirement obligations (1) $ — $ — $ 2,322 $ 2,322 December 31, 2018: Available-for-sale securities — 2,309 — 2,309 Asset retirement obligations (1) $ — $ — $ 2,090 $ 2,090 (1) We calculated the fair value of asset retirement obligations ("ARO") by discounting the estimated amount using the Treasury bill rate adjusted for our credit risk. At December 31, 2019 and 2018, the balance is included in "Other long-term liabilities," in the accompanying consolidated balance sheets. |
Schedule of changes in asset retirement obligations | The following table provides a summary of changes in our Level 3 asset retirement obligations (in thousands): 2019 2018 2017 Balance, January 1 $ 2,090 $ 1,936 $ 2,810 Accretion 232 154 197 Subsequent revision of estimated obligation — — 449 Payments — — (1,520 ) Balance, December 31 $ 2,322 $ 2,090 $ 1,936 |
Fair Value, by Balance Sheet Grouping | The fair values of our Level 2 available-for-sale debt securities, based upon quoted prices for similar items in active markets, are as follows (in thousands): December 31, 2019 Cost Unrealized Gain Unrealized Loss Converted to Cash Fair Value Japanese Corporate Bonds $ 2,221 $ 198 $ (156 ) $ (2,263 ) $ — Japanese Government Bonds 88 7 (6 ) (89 ) — Total Bonds $ 2,309 $ 205 $ (162 ) $ (2,352 ) $ — December 31, 2018 Cost Unrealized Gain Unrealized Loss Converted to Cash Fair Value Japanese Corporate Bonds $ 2,184 $ 144 $ (107 ) $ — $ 2,221 Japanese Government Bonds 87 5 (4 ) — 88 Total Bonds $ 2,271 $ 149 $ (111 ) $ — $ 2,309 |
Schedule of fair value of term loan and revolving credit facility | The fair values of our other Level 2 debt liabilities, based upon quoted prices for our term loans, are as follows (in thousands): December 31, 2019 2018 Carrying Amount Fair Value Carrying Amount Fair Value Term loan $ 425,856 $ 262,966 $ 429,143 $ 428,071 Revolving credit facility 20,000 12,350 — — |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment consisted of the following (in thousands): December 31, 2019 2018 Network equipment $ 309,323 $ 274,680 Network equipment under capital lease — 14,206 Furniture and equipment 27,681 28,583 Software 50,048 66,924 Leasehold improvements 372,492 414,212 Buildings under capital lease — 271,226 Property and equipment, gross 759,544 1,069,831 Less: accumulated depreciation and amortization ($55,198 related to capital leases at December 31, 2018) (544,433 ) (585,525 ) $ 215,111 $ 484,306 |
Schedule of summary of depreciation and amortization of property and equipment associated with direct costs | Depreciation and amortization of property and equipment consisted of the following (in thousands): Year ended December 31, 2019 2018 2017 Costs of sales and services $ 76,199 $ 73,738 $ 68,804 Other depreciation and amortization 5,013 10,644 2,478 Subtotal 81,212 84,382 71,282 Amortization of acquired and developed technologies 4,501 4,034 2,147 Total depreciation and amortization $ 85,713 $ 88,416 $ 73,429 |
ACQUISITION (Tables)
ACQUISITION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions | The following table summarizes the final fair values of the assets acquired and liabilities assumed at the acquisition date and reflects purchase accounting adjustments subsequent to the acquisition date (in thousands): Final Valuation as of December 31, 2018 Cash $ 2,823 Prepaid expenses and other assets 2,227 Property, plant and equipment 14,253 Other long term assets 576 Intangible assets: Noncompete agreements 4,000 Trade names 1,700 Technology 15,100 Customer relationships 34,100 Goodwill 66,008 Total assets acquired 140,787 Accounts payable and accrued liabilities 2,819 Deferred revenue 2,434 Long term liabilities 534 Net assets acquired $ 135,000 |
Pro-Forma Financial Information | The pro forma results are as follows (in thousands except for per share amounts): Year Ended 2018 2017 Revenues $ 324,283 $ 328,572 Net loss (62,276 ) (46,214 ) Basic and diluted net loss per share $ (3.01 ) $ (2.44 ) Weighted average shares outstanding used in computing basic and diluted net loss per share 20,732 18,993 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | During the years ended December 31, 2019 and 2018, our goodwill activity is as follows (in thousands): January 1, 2018 Re-allocations SingleHop Acquisition December 31, 2018 Impairment December 31, 2019 Reportable segments: INAP COLO $ 6,003 $ (6,003 ) $ — $ — $ — INAP CLOUD 44,206 (44,206 ) — — — INAP US 28,118 66,008 94,126 (22,918 ) 71,208 INAP INTL 22,091 22,091 (22,091 ) — Total $ 50,209 $ — $ 66,008 $ 116,217 $ (45,009 ) $ 71,208 |
Schedule of components of amortizing intangible assets, including capitalized software | The components of our amortizing intangible assets, including capitalized software, are as follows (in thousands): December 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Acquired and developed technology $ 63,866 $ (49,127 ) $ 71,586 $ (52,097 ) Customer relationships and trade names 94,555 (62,698 ) 110,785 (57,232 ) $ 158,421 $ (111,825 ) $ 182,371 $ (109,329 ) |
Schedule of finite-lived intangible assets, future amortization expense | As of December 31, 2019 , remaining amortization expense is as follows (in thousands): 2020 $ 9,919 2021 9,314 2022 7,274 2023 6,619 2024 5,735 Thereafter 7,735 $ 46,596 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following (in thousands): December 31, 2019 2018 Compensation and benefits payable $ 3,601 $ 7,190 Property, sales, and other taxes 1,350 785 Customer credit balances 1,730 2,204 Accrued interest 953 1,762 Other 3,087 3,266 $ 10,721 $ 15,207 |
EXIT ACTIVITIES AND RESTRUCTU_2
EXIT ACTIVITIES AND RESTRUCTURING (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Transactions and Balances for Exit Activities and Restructuring Charges | The following table displays the transactions and balances for exit activities and restructuring charges (in thousands). We include initial charges and plan adjustments in "Exit activities, restructuring and impairments" in the accompanying statements of operations and comprehensive loss for the years ended December 31, 2019 , 2018 and 2017 . Our real estate obligations and severance are substantially related to our INAP US segment. Balance December 31, 2018 Initial Charges (1) Plan Adjustments Cash Payments Balance December 31, 2019 Activity for 2019 restructuring charge: Real estate obligations $ — $ 1,629 $ (116 ) $ (1,377 ) $ 136 Activity for 2018 restructuring charge: Real estate obligations 1,922 — 187 (2,109 ) — Activity for 2017 restructuring charge: Real estate obligations 100 — 1 (101 ) — Activity for 2016 restructuring charge: Real estate obligations 125 — 11 (136 ) — Activity for 2015 restructuring charge: Real estate obligation 27 — 29 (56 ) — Service contracts 221 — 41 (198 ) 64 Activity for 2014 restructuring charge: Real estate obligation 206 — 54 (260 ) — $ 2,601 $ 1,629 $ 207 $ (4,237 ) $ 200 (1) Additional expense related to the disposal of leasehold improvements of approximately $4.5 million was recorded for the year ended December 31, 2019 and not included in the table above. Balance December 31, 2017 Initial Charges Plan Adjustments Cash Payments Balance December 31, 2018 Activity for 2018 restructuring charge: Real estate obligations $ — $ 3,484 $ 1,023 $ (2,585 ) $ 1,922 Activity for 2017 restructuring charge: Real estate obligations 3,380 — 316 (3,596 ) 100 Activity for 2016 restructuring charge: Severance 46 — 34 (80 ) — Real estate obligations 247 — 39 (161 ) 125 Activity for 2015 restructuring charge: Real estate obligation 64 — 4 (41 ) 27 Service contracts 388 — 31 (198 ) 221 Activity for 2014 restructuring charge: Real estate obligation 691 — 240 (725 ) 206 $ 4,816 $ 3,484 $ 1,687 $ (7,386 ) $ 2,601 Balance December 31, 2016 Initial Charges Plan Adjustments Cash Payments Balance December 31, 2017 Activity for 2017 restructuring charge: Real estate obligations $ — $ 3,359 $ 1,741 $ (1,720 ) $ 3,380 Activity for 2016 restructuring charge: Severance 1,911 — 957 (2,822 ) 46 Real estate obligations 933 — 82 (768 ) 247 Activity for 2015 restructuring charge: Real estate obligation 111 — — (47 ) 64 Service contracts 565 — 21 (198 ) 388 Activity for 2014 restructuring charge: Real estate obligations 1,183 — 131 (623 ) 691 $ 4,703 $ 3,359 $ 2,932 $ (6,178 ) $ 4,816 |
COMMITMENTS, CONTINGENCIES AN_2
COMMITMENTS, CONTINGENCIES AND LITIGATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of information with respect to financial covenants | The table below sets forth information with respect to the current financial covenants as well as the calculation of our performance in relation to the covenant requirements at December 31, 2019 . Covenants Requirements Ratios at December 31, 2019 Maximum Total Net Leverage Ratio should be equal to or less than: 7.25 7.03 Maximum Consolidated Interest Coverage Ratio should be equal to or greater than: 1.60 1.84 |
Schedule of credit agreements | A summary of our credit agreement as of December 31, 2019 and December 31, 2018 is as follows (dollars in thousands): December 31, 2019 2018 Outstanding principal balance on the term loan, less unamortized discount and prepaid costs of $12.5 million and $13.5 million, respectively $ 413,311 $ 415,599 Outstanding balance on the revolving credit facility 20,000 — Letters of credit issued 4,810 4,187 Surety bonds issued 131 131 Borrowing capacity on revolving credit facility 10,059 30,682 Interest rate – term loan 8.0 % 8.2 % Interest rate – drawn amounts under revolving credit facility 8.7 % — % |
Schedule of future minimum payments under service commitments | Future minimum payments under these service commitments having terms in excess of one year were as follows at December 31, 2019 (in thousands): 2020 $ 2,390 2021 796 2022 140 2023 19 2024 — Thereafter — $ 3,345 |
OPERATING SEGMENTS AND GEOGRA_2
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of operating results for business segments, along with reconciliations from segment profit to loss before income taxes and equity in (earnings) of equity-method investment | 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 ) |
Disaggregation of revenue | 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 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 |
Schedule of revenues by country | 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 |
Schedule of net property and equipment by country | 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 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock option activity of stock-based compensation plans | Stock option activity during the year ended December 31, 2019 under all of our stock-based compensation plans was as follows (shares in thousands): Shares Weighted Average Exercise Price Balance, December 31, 2018 223 $ 25.95 Granted — — Exercised — — Forfeitures and post-vesting cancellations (48 ) 21.91 Balance, December 31, 2019 175 27.01 Exercisable, December 31, 2019 174 27.13 |
Schedule of fully vested and exercisable stock options and stock options expected to vest | Fully vested and exercisable stock options and stock options expected to vest as of December 31, 2019 are further summarized as follows (shares in thousands): Fully Vested and Exercisable Expected to Vest Total shares 174 175 Weighted-average exercise price $ 27.13 $ 27.01 Aggregate intrinsic value $ — $ — Weighted-average remaining contractual term (in years) 3.2 3.2 |
Schedule of restricted stock activity | Restricted stock activity during the year ended December 31, 2019 was as follows (shares in thousands): Shares Weighted- Average Grant Date Fair Value Unvested balance, December 31, 2018 958 $ 5.17 Granted 1,689 $ 2.47 Vested (334 ) $ 6.12 Forfeited (542 ) $ 2.12 Unvested balance, December 31, 2019 1,771 $ 3.05 |
Schedule of unrecognized compensation costs related to unvested stock-based compensation | Total unrecognized compensation costs related to unvested stock-based compensation as of December 31, 2019 is as follows (dollars in thousands): Stock Options Restricted Stock Total Unrecognized compensation $ 3 $ 3,562 $ 3,565 Weighted-average remaining recognition period (in years) 0.14 1.49 1.63 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of loss from continuing operations before income taxes and equity in (earnings) of equity-method investment | The loss before income taxes and equity in earnings of equity-method investment is as follows (in thousands): Year Ended December 31, 2019 2018 2017 United States $ (107,905 ) $ (63,450 ) $ (45,541 ) Foreign (31,912 ) 3,032 421 Loss before income taxes and equity in earnings of equity-method investment $ (139,817 ) $ (60,418 ) $ (45,120 ) |
Schedule of current and deferred income tax (benefit) provision | Income tax (benefit) expense consisted of the following (in thousands): Year Ended December 31, 2019 2018 2017 Current: Federal $ — $ — $ (730 ) State 128 118 123 Foreign 559 277 507 687 395 (100 ) Deferred: Federal — — — State — — — Foreign (2,335 ) 262 353 (2,335 ) 262 353 Income tax (benefit) expense $ (1,648 ) $ 657 $ 253 |
Schedule of effective income tax rate reconciliation | A reconciliation of the U.S. statutory rate of 21% for 2019 and 2018, and 34% for 2017 and the effective income tax rate is as follows: Year Ended December 31, 2019 2018 2017 Federal income tax at statutory rates (21.0 )% (21.0 )% (34.0 )% State income tax (4.6 ) (5.5 ) (5.0 ) Other permanent differences (0.3 ) 1.2 0.4 Tax rates different than statutory (0.5 ) 1.2 0.5 Statutory tax rate change - Deferred - Tax Reform Act — — (128.4 ) Statutory tax rate change - Valuation Allowance - Tax Reform Act — — 128.4 Goodwill impairment 3.4 — — Refundable AMT credit — — (1.5 ) Change in valuation allowance 21.8 25.2 40.1 Effective tax rate (1.2 )% 1.1 % 0.5 % |
Schedule of deferred tax assets and liabilities | Deferred income taxes reflect the net tax effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of net deferred tax assets (liabilities) were as follows (in thousands): December 31, 2019 2018 Deferred income tax assets: Net operating loss carryforwards $ 99,481 $ 93,704 Property and equipment 35,535 38,556 Goodwill and intangible assets 9,253 — Deferred revenue 1,439 971 Non-deductible interest 23,181 10,028 Leases - ASC 842 20,811 — Stock-based compensation 2,073 1,486 Provision for doubtful accounts 682 956 Accrued compensation 308 1,008 Tax credits carried forward 1,832 2,735 Other 1,919 1,785 Total deferred income tax assets 196,514 151,229 Deferred income tax liabilities: Leases - ASC 842 (15,889 ) — Contracts assets (6,244 ) (6,186 ) Goodwill and intangible assets — (375 ) Refinancing costs (416 ) (4,130 ) Total deferred income tax liabilities (22,549 ) (10,691 ) Net deferred income tax assets 173,965 140,538 Valuation allowance (173,841 ) (142,749 ) Net deferred income tax assets (liabilities) $ 124 $ (2,211 ) |
Schedule of summary of changes in deferred tax asset valuation allowance | Changes in our valuation allowance are summarized as follows (in thousands): Year Ended December 31, 2019 2018 2017 Balance, January 1, $ 142,749 $ 132,712 $ 164,865 Increase in deferred tax assets 31,092 10,037 27,183 Remeasurement in deferred tax assets — — (59,336 ) Balance, December 31, $ 173,841 $ 142,749 $ 132,712 |
Schedule of changes in unrecognized tax benefits | Changes in our unrecognized tax benefits are summarized as follows (in thousands): Year Ended December 31, 2019 2018 2017 Unrecognized tax benefits balance, January 1, $ 462 $ 162 $ 187 Additions for tax positions - current year 11 — — Additions for tax positions - prior year 1 300 162 Reductions for tax positions - prior year (93 ) — (187 ) Unrecognized tax benefits balance, December 31, $ 381 $ 462 $ 162 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of lease related costs | The following table provides certain cash flow and supplemental noncash information related to our lease liabilities for the year ended December 31, 2019 (in thousands): Operating Leases Operating cash paid to settle operating lease liabilities $ 8,748 Right-of-use assets obtained in exchange for lease liabilities 40,042 Finance Leases Operating cash paid for interest $ 23,730 Right-of-use assets obtained in exchange for lease liabilities 49 Lease-related costs for the year ended December 31, 2019 are as follows (in thousands): Year Ended December 31, 2019 Finance lease cost Amortization of right-of-use assets $ 16,450 Interest on lease liabilities 28,972 Finance lease cost $ 45,422 Operating lease cost $ 8,771 Short-term lease cost 4,251 Total lease cost $ 58,444 Other information related to leases as of December 31, 2019 is as follows (in thousands, except lease term and rate): Operating Leases Finance Leases Right-of-use assets $ 62,537 $ 141,323 Lease liabilities 81,542 175,021 Weighted-average remaining lease term (years) 7.43 19.01 Weighted-average discount rate 12.40 % 15.70 % |
Schedule of assets and liabilities leases | Other information related to leases as of December 31, 2019 is as follows (in thousands, except lease term and rate): Operating Leases Finance Leases Right-of-use assets $ 62,537 $ 141,323 Lease liabilities 81,542 175,021 Weighted-average remaining lease term (years) 7.43 19.01 Weighted-average discount rate 12.40 % 15.70 % |
Schedule of future minimum lease payments under non-cancellable leases | Future minimum lease payments under non-cancellable leases as of December 31, 2019 are as follows (in thousands): Operating Leases Finance Leases 2020 $ 18,059 $ 24,574 2021 18,256 26,145 2022 17,786 24,763 2023 16,936 23,876 2024 14,765 23,799 Thereafter 44,409 434,025 Total undiscounted lease payments $ 130,211 $ 557,182 Less: Imputed interest 48,669 382,161 Total lease liabilities $ 81,542 $ 175,021 |
Finance Lease, Liability, Maturity | Future minimum lease payments under non-cancellable leases as of December 31, 2019 are as follows (in thousands): Operating Leases Finance Leases 2020 $ 18,059 $ 24,574 2021 18,256 26,145 2022 17,786 24,763 2023 16,936 23,876 2024 14,765 23,799 Thereafter 44,409 434,025 Total undiscounted lease payments $ 130,211 $ 557,182 Less: Imputed interest 48,669 382,161 Total lease liabilities $ 81,542 $ 175,021 |
UNAUDITED QUARTERLY RESULTS (Ta
UNAUDITED QUARTERLY RESULTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of unaudited quarterly financial information | The quarterly operating results below are not necessarily indicative of those in future periods (in thousands, except for share data). 2019 Quarter Ended March 31 June 30 September 30 December 31 Net revenues $ 73,873 $ 73,022 $ 72,960 $ 71,650 Costs of sales and services, exclusive of depreciation and amortization 25,649 26,045 27,549 27,703 Costs of customer support 8,790 8,726 8,145 6,450 Exit activities, restructuring and impairments 1,416 231 3,792 3,547 Net loss attributable to INAP shareholders (20,007 ) (17,982 ) (24,083 ) (76,178 ) Basic and diluted net loss per share $ (0.85 ) $ (0.76 ) $ (1.02 ) $ (3.21 ) 2018 Quarter Ended March 31 June 30 September 30 December 31 Net revenues $ 73,822 $ 82,253 $ 82,928 $ 77,155 Costs of sales and services, exclusive of depreciation and amortization 24,777 27,638 28,212 27,022 Costs of customer support 7,387 8,841 7,984 8,305 Exit activities, restructuring and impairments (33 ) 826 2,347 2,266 Net loss attributable to INAP shareholders (13,678 ) (13,802 ) (14,840 ) (18,880 ) Basic and diluted net loss per share $ (0.68 ) $ (0.69 ) $ (0.73 ) $ (0.80 ) |
DESCRIPTION OF THE COMPANY AN_2
DESCRIPTION OF THE COMPANY AND NATURE OF OPERATIONS - Narrative (Details) ft² in Millions | 12 Months Ended |
Dec. 31, 2019ft²marketpoint_of_presence | |
Real Estate Properties [Line Items] | |
Number of POPs | point_of_presence | 94 |
Number of metropolitan markets | market | 21 |
Area of real estate property | ft² | 1 |
Metropolitan statistical areas | market | 12 |
Sellable Data Center Space | |
Real Estate Properties [Line Items] | |
Area of real estate property | ft² | 0.6 |
DESCRIPTION OF THE COMPANY AN_3
DESCRIPTION OF THE COMPANY AND NATURE OF OPERATIONS - Restructuring Support Agreement and Chapter 11 and Financial Arrangements (Details) - USD ($) $ in Millions | Mar. 19, 2020 | Mar. 16, 2020 | Mar. 13, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | ||||
Term loan amount | $ 425.9 | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Percentage of restructured debt | 77.00% | |||
Term loan amount | $ 5 | |||
New Term Loan Facility | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Term loan amount | $ 225 | |||
Debt term | 5 years | |||
Warrant rights for new INAP shares | 10.00% | |||
Credit limit | $ 5 | |||
Jefferies Finance LLC | New Term Loan Facility | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Shares issued post effective date | 100.00% | |||
LIBOR | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Basis spread on variable rate | 6500.00% | 1000.00% | ||
Paid in Cash | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Basis spread on variable rate | 3000.00% | |||
Paid in Kind | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Basis spread on variable rate | 3500.00% | |||
Interest, Payment in Kind | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Basis spread on variable rate | 2000.00% | |||
Minimum | LIBOR | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
DIP Facility | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Credit limit | $ 75 | |||
Stated rate | 9.00% | |||
DIP Facility | LIBOR | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Basis spread on variable rate | 10.00% | |||
DIP Facility | Minimum | LIBOR | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Basis spread on variable rate | 1.00% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) | Aug. 01, 2019USD ($) | Aug. 15, 2017USD ($) | Aug. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2019USD ($)reporting_unit | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Aug. 01, 2020 | Mar. 13, 2020USD ($) | Dec. 25, 2019USD ($) | Dec. 01, 2019 | Jan. 15, 2019USD ($) | Jan. 01, 2019USD ($) | Aug. 14, 2017USD ($) |
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Net loss | $ 24,083,000 | $ 17,982,000 | $ 20,007,000 | $ 18,880,000 | $ 14,840,000 | $ 13,802,000 | $ 13,678,000 | $ 6,649,000 | $ 10,647,000 | $ 18,894,000 | $ 8,046,000 | $ 37,989,000 | $ 27,480,000 | $ 26,940,000 | $ 62,072,000 | $ 42,320,000 | $ 37,587,000 | $ 138,250,000 | $ 61,200,000 | $ 44,236,000 | |||||||||||
Working capital deficit | $ 442,000,000 | 6,500,000 | 442,000,000 | 6,500,000 | |||||||||||||||||||||||||||
Term loan amount | 425,900,000 | 425,900,000 | |||||||||||||||||||||||||||||
Capitalized cost of internal-use software | 3,300,000 | 3,500,000 | 4,400,000 | ||||||||||||||||||||||||||||
Unamortized software costs | 11,000,000 | 12,700,000 | 11,000,000 | 12,700,000 | |||||||||||||||||||||||||||
Amortization expense capitalized | $ 5,500,000 | 7,600,000 | 7,200,000 | ||||||||||||||||||||||||||||
Number of reporting units | reporting_unit | 7 | ||||||||||||||||||||||||||||||
Amortization of intangible assets | $ 4,501,000 | 4,034,000 | 2,147,000 | ||||||||||||||||||||||||||||
Goodwill and intangibles impairment | $ 0 | $ 45,009,000 | 0 | ||||||||||||||||||||||||||||
Percentage of goodwill impaired | 25.00% | ||||||||||||||||||||||||||||||
Impairment of intangible assets | $ 14,100,000 | ||||||||||||||||||||||||||||||
Impairment of intangible assets | $ 0 | ||||||||||||||||||||||||||||||
Capitalized contract cost, impairment loss | 0 | 0 | |||||||||||||||||||||||||||||
Research and development costs | 2,100,000 | 2,800,000 | 1,500,000 | ||||||||||||||||||||||||||||
Excluded capitalized cost of internal-use software | 4,200,000 | 5,200,000 | 5,200,000 | ||||||||||||||||||||||||||||
Advertising costs | 2,200,000 | $ 2,600,000 | $ 1,900,000 | ||||||||||||||||||||||||||||
Operating lease right-of-use assets | 62,537,000 | 62,537,000 | $ 28,500,000 | ||||||||||||||||||||||||||||
Total lease liabilities | 81,542,000 | 81,542,000 | $ 31,000,000 | ||||||||||||||||||||||||||||
Customer relationships and trade names | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Impairment of intangible assets | 13,100,000 | ||||||||||||||||||||||||||||||
Developed technology | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Impairment of intangible assets | $ 1,000,000 | ||||||||||||||||||||||||||||||
Customer relationships | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Amortized period of assets | 5 years | 5 years | 5 years | ||||||||||||||||||||||||||||
Impairment of intangible assets | $ 200,000 | ||||||||||||||||||||||||||||||
Minimum | Acquired Technologies and Noncompete Agreements | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Amortized period of assets | 4 years | ||||||||||||||||||||||||||||||
Minimum | Trade names | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Amortized period of assets | 8 years | ||||||||||||||||||||||||||||||
Minimum | Customer relationships and trade names | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Amortized period of assets | 10 years | ||||||||||||||||||||||||||||||
Maximum | Acquired Technologies and Noncompete Agreements | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Amortized period of assets | 8 years | ||||||||||||||||||||||||||||||
Maximum | Trade names | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Amortized period of assets | 15 years | ||||||||||||||||||||||||||||||
Maximum | Customer relationships and trade names | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Amortized period of assets | 30 years | ||||||||||||||||||||||||||||||
Network equipment | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Estimated useful lives of assets | 5 years | ||||||||||||||||||||||||||||||
Furniture Equipment and Software | Minimum | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Estimated useful lives of assets | 3 years | ||||||||||||||||||||||||||||||
Furniture Equipment and Software | Maximum | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Estimated useful lives of assets | 7 years | ||||||||||||||||||||||||||||||
Leasehold improvements | Minimum | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Duration of lease obligations and commitments | 2 years | ||||||||||||||||||||||||||||||
Leasehold improvements | Maximum | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Duration of lease obligations and commitments | 34 years | ||||||||||||||||||||||||||||||
Fulfillment Costs And Commission Fees | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Capitalized contract cost | 23,900,000 | 24,900,000 | $ 23,900,000 | $ 24,900,000 | |||||||||||||||||||||||||||
Amortization of capitalized contract costs | 9,900,000 | 9,600,000 | |||||||||||||||||||||||||||||
Put Option | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Settlement alternatives, cash at fair value | $ 500,000 | $ 1,000,000 | |||||||||||||||||||||||||||||
INAP | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Ownership percentage | 85.00% | ||||||||||||||||||||||||||||||
NTT ME | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Ownership percentage by noncontrolling owners | 15.00% | ||||||||||||||||||||||||||||||
Internap Japan | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Gain recognized | $ 1,100,000 | ||||||||||||||||||||||||||||||
Internap Japan Investment | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Equity investment | $ 4,100,000 | ||||||||||||||||||||||||||||||
Reclassification | Adjustment | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Net loss | $ 213,000 | $ (573,000) | $ 363,000 | 426,000 | $ (639,000) | $ (477,000) | $ (610,000) | $ (285,000) | $ (248,000) | $ (389,000) | $ (184,000) | $ (210,000) | $ (1,087,000) | $ (573,000) | $ 3,000 | $ (1,726,000) | $ (822,000) | (1,300,000) | $ (1,107,000) | ||||||||||||
Depreciation and amortization | 1,500,000 | 2,000,000 | $ 1,600,000 | ||||||||||||||||||||||||||||
Property and equipment, net | 1,500,000 | 4,100,000 | 1,500,000 | 4,100,000 | |||||||||||||||||||||||||||
Reclassification | Cumulative Income of Prior Period Adjustments | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Property and equipment, net | $ 2,100,000 | $ 2,100,000 | |||||||||||||||||||||||||||||
INAP CLOUD | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Goodwill and intangibles impairment | 22,900,000 | ||||||||||||||||||||||||||||||
Impairment of intangible assets | 12,900,000 | ||||||||||||||||||||||||||||||
Cloud INAP INTL | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Goodwill and intangibles impairment | 21,200,000 | ||||||||||||||||||||||||||||||
Ubersmith INAP INTL | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Goodwill and intangibles impairment | 900,000 | ||||||||||||||||||||||||||||||
Impairment of intangible assets | 1,200,000 | ||||||||||||||||||||||||||||||
Measurement Input, Discount Rate | Minimum | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Measurement input | 0.120 | ||||||||||||||||||||||||||||||
Measurement Input, Discount Rate | Maximum | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Measurement input | 0.160 | ||||||||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Term loan amount | $ 5,000,000 | ||||||||||||||||||||||||||||||
Subsequent Event | Measurement Input, Discount Rate | Minimum | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Measurement input | 0.080 | ||||||||||||||||||||||||||||||
Subsequent Event | Measurement Input, Discount Rate | Maximum | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Measurement input | 0.130 | ||||||||||||||||||||||||||||||
Subsequent Event | Measurement Input, Long-term Revenue Growth Rate | Minimum | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Measurement input | 0.020 | ||||||||||||||||||||||||||||||
Subsequent Event | Measurement Input, Long-term Revenue Growth Rate | Maximum | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Measurement input | 0.010 | ||||||||||||||||||||||||||||||
Current Liabilities | |||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||||||||||||||||||||||||||
Term loan amount | $ 413,300,000 | $ 413,300,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Restatement to Cash Flow of Prior Periods (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||
Net loss | $ (19,985) | $ (13,651) | $ (8,046) | $ (37,947) | $ (27,430) | $ (26,940) | $ (62,009) | $ (42,245) | $ (37,556) | $ (138,169) | $ (61,075) | $ (44,166) | |||||||||
Depreciation and amortization | $ 20,999 | $ 21,505 | 22,176 | $ 22,710 | $ 23,009 | $ 22,179 | 20,523 | $ 16,793 | $ 20,320 | $ 18,755 | 17,561 | 43,321 | 42,702 | 36,316 | 64,320 | 65,710 | 56,636 | 85,713 | 88,416 | 73,429 | |
Amortization of debt discount and issuance costs | 1,058 | 2,132 | 1,082 | 3,218 | 1,680 | 5,398 | 4,084 | 2,309 | |||||||||||||
Non-cash change in finance lease liabilities | (128) | (1,425) | 3,370 | (1,191) | 4,506 | (1,015) | 913 | 3,300 | 2,507 | 1,187 | |||||||||||
Accounts receivable | (1,186) | 1,243 | 2,345 | (2,077) | 2,728 | (4,858) | 3,272 | (359) | (769) | ||||||||||||
Prepaid expenses, deposits and other assets | (1,011) | (4,509) | (3,967) | 1,400 | 4,576 | (1,232) | 2,051 | ||||||||||||||
Accrued and current other liabilities | (2,563) | (2,821) | (3,471) | (751) | (5,703) | (952) | (4,288) | (1,916) | 3,359 | ||||||||||||
Deferred revenues | 644 | 1,323 | (10) | 2,710 | (573) | 2,078 | (1,496) | 1,220 | (1,297) | ||||||||||||
Accounts payable | (1,589) | (3,076) | 1,546 | (949) | |||||||||||||||||
Stock-based compensation expense, net of capitalized amount | 519 | 1,530 | 2,328 | 3,669 | 4,239 | 4,678 | 3,040 | ||||||||||||||
Net cash provided by operating activities | 4,135 | 15,497 | 24,943 | 22,663 | 35,341 | 41,404 | |||||||||||||||
Net (decrease) increase in cash and cash equivalents | 2,118 | 698 | (2,197) | (6,174) | 3,782 | 3,652 | |||||||||||||||
Cash and cash equivalents | 17,823 | 14,041 | $ 11,649 | 17,823 | 14,041 | $ 10,389 | |||||||||||||||
As reported | |||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||
Net loss | (19,622) | (14,261) | (8,230) | (38,157) | (28,517) | (27,513) | (62,006) | (43,971) | (38,377) | (62,375) | (45,273) | ||||||||||
Depreciation and amortization | $ 21,582 | $ 21,955 | 22,178 | $ 23,254 | $ 23,553 | $ 22,712 | 21,158 | 17,397 | $ 20,917 | $ 18,934 | 17,745 | 44,133 | 43,870 | 36,679 | 65,715 | 67,422 | 57,596 | 90,676 | 74,993 | ||
Amortization of debt discount and issuance costs | 638 | 1,712 | 1,292 | 2,798 | 1,890 | 3,874 | 2,519 | ||||||||||||||
Non-cash change in finance lease liabilities | 148 | (213) | 3,520 | (371) | 4,863 | (241) | 564 | 2,640 | 520 | ||||||||||||
Accounts receivable | (1,617) | 864 | 1,210 | (2,165) | 1,593 | (4,990) | (1,352) | (207) | |||||||||||||
Prepaid expenses, deposits and other assets | (467) | (4,073) | (3,531) | 1,979 | |||||||||||||||||
Accrued and current other liabilities | (2,238) | (2,904) | (3,146) | (585) | (5,378) | (601) | (1,583) | ||||||||||||||
Deferred revenues | (262) | (138) | (323) | 1,249 | (804) | 617 | 435 | ||||||||||||||
Accounts payable | (2,168) | ||||||||||||||||||||
Stock-based compensation expense, net of capitalized amount | 890 | 1,901 | 2,232 | 3,573 | |||||||||||||||||
Net cash provided by operating activities | 3,573 | 14,935 | 24,381 | 34,779 | 41,966 | ||||||||||||||||
Net (decrease) increase in cash and cash equivalents | 1,556 | 136 | (2,759) | 3,220 | 4,214 | ||||||||||||||||
Cash and cash equivalents | 14,603 | 14,603 | |||||||||||||||||||
Cash Flow Adjustment | Adjustments | |||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||
Net loss | (363) | 610 | 184 | 210 | 1,087 | 573 | (3) | 1,726 | 821 | 1,300 | 1,107 | ||||||||||
Depreciation and amortization | (2) | (635) | $ (184) | (812) | (1,168) | (363) | (1,395) | (1,712) | (960) | (2,260) | (1,564) | ||||||||||
Amortization of debt discount and issuance costs | 420 | 420 | $ (210) | 420 | (210) | 210 | (210) | ||||||||||||||
Non-cash change in finance lease liabilities | (276) | (1,212) | (150) | (820) | (357) | (774) | 349 | (133) | 667 | ||||||||||||
Accounts receivable | 431 | 379 | 1,135 | 88 | 1,135 | 132 | 993 | (562) | |||||||||||||
Prepaid expenses, deposits and other assets | (544) | (436) | (436) | (579) | |||||||||||||||||
Accrued and current other liabilities | (325) | 83 | (325) | (166) | (325) | (351) | (333) | ||||||||||||||
Deferred revenues | 906 | 1,461 | 313 | 1,461 | $ 231 | 1,461 | 785 | ||||||||||||||
Accounts payable | $ 579 | ||||||||||||||||||||
Stock-based compensation expense, net of capitalized amount | $ (371) | $ (371) | 96 | 96 | |||||||||||||||||
Net cash provided by operating activities | 562 | 562 | 562 | 562 | (562) | ||||||||||||||||
Net (decrease) increase in cash and cash equivalents | $ 562 | $ 562 | $ 562 | $ 562 | (562) | ||||||||||||||||
Cash and cash equivalents | $ (562) | $ (562) |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Adjustments to Previously Issued Quarterly Financial Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||||||||
Net revenues | $ 71,650 | $ 72,960 | $ 73,022 | $ 73,873 | $ 77,155 | $ 82,928 | $ 82,253 | $ 73,822 | $ 146,668 | $ 156,075 | $ 219,628 | $ 239,003 | $ 291,505 | $ 316,158 | $ 280,718 | |||||||
Costs of sales and services, exclusive of depreciation and amortization | 27,703 | 27,549 | 26,045 | 25,649 | 27,022 | 28,212 | 27,638 | 24,777 | 51,694 | 52,415 | 79,243 | 80,628 | 106,946 | 107,649 | 106,217 | |||||||
Sales, general and administrative | 15,312 | 18,225 | 17,648 | 17,985 | 19,591 | 19,801 | 33,204 | 39,392 | 57,376 | 67,050 | 75,023 | 62,728 | ||||||||||
Depreciation and amortization | 20,999 | 21,505 | 22,176 | 22,710 | 23,009 | 22,179 | 20,523 | $ 16,793 | $ 20,320 | $ 18,755 | $ 17,561 | 43,321 | 42,702 | $ 36,316 | 64,320 | 65,710 | $ 56,636 | 85,713 | 88,416 | 73,429 | ||
Exit activities, restructuring and impairments | 4,918 | 6,565 | 8,986 | 5,406 | 6,249 | |||||||||||||||||
Interest expense | 19,620 | 19,258 | 17,501 | 18,049 | 17,849 | 16,790 | 15,133 | 13,213 | 12,648 | 16,935 | 36,759 | 31,923 | 25,072 | 56,379 | 49,773 | 37,720 | 75,142 | 67,823 | 50,933 | |||
Net loss attributable to shareholders | (24,083) | (17,982) | (20,007) | (18,880) | (14,840) | (13,802) | (13,678) | (6,649) | (10,647) | (18,894) | (8,046) | (37,989) | (27,480) | (26,940) | (62,072) | (42,320) | (37,587) | (138,250) | (61,200) | (44,236) | ||
Cash and cash equivalents | 11,649 | 17,823 | 14,041 | 11,649 | 17,823 | 14,041 | ||||||||||||||||
Accounts receivable, net | 15,567 | 17,244 | 17,859 | 19,623 | 22,867 | 20,163 | 17,145 | 18,356 | 17,859 | 20,163 | 17,244 | 22,867 | 15,567 | 19,623 | 18,356 | |||||||
Contract assets - current | 9,039 | 8,844 | 7,497 | 9,039 | 8,844 | |||||||||||||||||
Prepaid expenses and other assets | 7,370 | 7,377 | 9,615 | 9,615 | 7,370 | 7,377 | ||||||||||||||||
Property and equipment, net | 215,111 | 220,645 | 228,210 | 233,391 | 484,306 | 493,315 | 468,428 | 476,439 | 460,634 | 442,704 | 428,741 | 292,272 | 228,210 | 468,428 | 428,741 | 220,645 | 493,315 | 442,704 | 215,111 | 484,306 | 460,634 | |
Finance lease right-of-use assets | 141,323 | 226,423 | 231,123 | 238,119 | 231,123 | 226,423 | 141,323 | |||||||||||||||
Goodwill | 71,208 | 116,217 | 740,089 | 117,097 | 50,209 | 740,089 | 71,208 | 116,217 | 50,209 | |||||||||||||
Contract assets - noncurrent | 14,827 | 16,104 | 12,126 | 14,827 | 16,104 | |||||||||||||||||
Total assets | 599,354 | 727,898 | 746,700 | 754,590 | 750,745 | 761,798 | 16,893 | 746,122 | 588,594 | 569,476 | 561,936 | 415,797 | 746,700 | 16,893 | 561,936 | 727,898 | 761,798 | 569,476 | 599,354 | 750,745 | 588,594 | |
Accrued liabilities | 10,721 | 15,207 | 17,617 | 14,196 | 16,226 | 17,617 | 10,721 | 15,207 | 16,226 | |||||||||||||
Deferred revenues - current | 6,576 | 7,422 | 7,846 | 8,320 | 8,462 | 6,531 | 7,846 | 7,422 | 6,576 | 8,462 | ||||||||||||
Short-term finance lease liabilities | 4,979 | 5,879 | 6,111 | 8,421 | 6,111 | 5,879 | 4,979 | |||||||||||||||
Deferred revenues - noncurrent | 632 | 561 | 696 | 808 | 856 | 696 | 561 | 632 | 856 | |||||||||||||
Finance lease liabilities | 170,042 | 264,265 | 264,765 | 264,959 | 264,765 | 264,265 | 170,042 | |||||||||||||||
Accounts payable | 20,529 | 23,435 | 17,311 | 17,311 | 20,529 | 23,435 | ||||||||||||||||
Capital lease obligations - current | 0 | 9,171 | 9,485 | 10,255 | 10,028 | 10,266 | 10,284 | 10,255 | 9,485 | 10,284 | 0 | 9,171 | 10,266 | |||||||||
Other long-term liabilities | 3,622 | 3,473 | 3,847 | 3,622 | 3,473 | |||||||||||||||||
Capital lease obligations - noncurrent | 264,741 | 266,067 | 233,996 | 236,497 | 225,543 | 208,721 | 233,996 | 266,067 | 208,721 | 264,741 | 225,543 | |||||||||||
Term loan, less discount and issuance costs | 0 | 415,278 | 287,635 | 287,824 | 288,044 | 288,044 | 287,824 | 0 | 415,278 | 287,635 | ||||||||||||
Total liabilities | 732,176 | 785,198 | 781,112 | 771,640 | 747,776 | 778,382 | 742,846 | 737,357 | 588,014 | 563,750 | 550,351 | 781,112 | 742,846 | 550,351 | 785,198 | 778,382 | 563,750 | 732,176 | 747,776 | 588,014 | ||
Additional paid-in capital | 1,374,230 | 1,370,186 | 1,368,968 | 1,329,266 | 1,329,266 | 1,374,230 | 1,368,968 | |||||||||||||||
Accumulated deficit | (1,498,409) | (1,422,231) | (1,398,148) | (1,380,166) | (1,360,107) | (1,341,228) | (1,326,387) | (1,310,609) | (1,322,111) | (1,315,462) | (1,304,816) | (1,285,890) | (1,398,148) | (1,326,387) | (1,304,816) | (1,422,231) | (1,341,228) | (1,315,462) | (1,498,409) | (1,360,107) | (1,322,111) | |
Total stockholders' equity (deficit) | $ (132,822) | (57,303) | (34,411) | (17,423) | 2,969 | (16,585) | (3,008) | 11,811 | 580 | 5,936 | 11,585 | 29,991 | (34,411) | (3,008) | 11,585 | (57,303) | (16,585) | 5,936 | $ (132,822) | 2,969 | 580 | $ (3,724) |
As reported | ||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||||||||
Net revenues | 72,878 | 73,134 | 73,564 | 78,238 | 82,972 | 81,962 | 74,201 | 146,698 | 156,163 | 219,576 | 239,135 | 317,373 | ||||||||||
Costs of sales and services, exclusive of depreciation and amortization | 27,504 | 25,949 | 25,733 | 27,102 | 28,221 | 27,331 | 24,607 | 51,682 | 51,938 | 79,186 | 80,160 | 107,262 | ||||||||||
Sales, general and administrative | 15,683 | 17,521 | 17,731 | 18,170 | 19,602 | 19,854 | 33,204 | 39,456 | 57,625 | 75,356 | ||||||||||||
Depreciation and amortization | 21,582 | 21,955 | 22,178 | 23,254 | 23,553 | 22,712 | 21,158 | 17,397 | 20,917 | 18,934 | 17,745 | 44,133 | 43,870 | 36,679 | 65,715 | 67,422 | 57,596 | 90,676 | 74,993 | |||
Exit activities, restructuring and impairments | 3,792 | 5,439 | ||||||||||||||||||||
Interest expense | 19,913 | 19,218 | 17,447 | 17,994 | 17,794 | 16,739 | 15,604 | 12,895 | 12,299 | 17,145 | 36,665 | 32,343 | 25,282 | 56,578 | 50,138 | 37,581 | 68,132 | 50,476 | ||||
Net loss attributable to shareholders | (23,870) | (18,555) | (19,644) | (18,454) | (15,479) | (14,279) | (14,288) | (6,934) | (10,895) | (19,283) | (8,230) | (38,199) | (28,567) | (27,513) | (62,069) | (44,046) | (38,409) | (62,500) | (45,343) | |||
Cash and cash equivalents | 14,603 | 14,603 | ||||||||||||||||||||
Accounts receivable, net | 17,948 | 18,563 | 20,054 | 22,999 | 20,251 | 17,524 | 17,794 | 18,563 | 20,251 | 17,948 | 22,999 | 20,054 | 17,794 | |||||||||
Contract assets - current | 7,131 | |||||||||||||||||||||
Prepaid expenses and other assets | 9,036 | 9,036 | ||||||||||||||||||||
Property and equipment, net | 216,548 | 223,497 | 229,185 | 478,061 | 487,616 | 463,273 | 471,752 | 458,565 | 441,239 | 427,873 | 291,583 | 223,497 | 463,273 | 427,873 | 216,548 | 487,616 | 441,239 | 478,061 | 458,565 | |||
Finance lease right-of-use assets | 226,619 | 229,228 | 236,077 | 229,228 | 226,619 | |||||||||||||||||
Goodwill | 735,022 | 118,077 | 735,022 | |||||||||||||||||||
Contract assets - noncurrent | 12,056 | |||||||||||||||||||||
Total assets | 724,701 | 740,796 | 748,342 | 744,931 | 756,231 | 17,059 | 742,358 | 586,525 | 567,432 | 561,068 | 415,108 | 740,796 | 17,059 | 561,068 | 724,701 | 756,231 | 567,432 | 744,931 | 586,525 | |||
Accrued liabilities | 15,540 | 17,866 | 14,279 | 15,908 | 17,866 | 15,540 | 15,908 | |||||||||||||||
Deferred revenues - current | 7,493 | 7,917 | 7,881 | 8,022 | 5,871 | 7,917 | 7,493 | 8,022 | ||||||||||||||
Short-term finance lease liabilities | 5,867 | 5,930 | 8,328 | 5,930 | 5,867 | |||||||||||||||||
Deferred revenues - noncurrent | 259 | 312 | 341 | 511 | 312 | 259 | 511 | |||||||||||||||
Finance lease liabilities | 264,223 | 262,476 | 262,632 | 262,476 | 264,223 | |||||||||||||||||
Accounts payable | 16,732 | 16,732 | ||||||||||||||||||||
Capital lease obligations - current | 9,080 | 9,399 | 10,246 | 10,095 | 11,711 | 11,729 | 10,246 | 9,399 | 11,729 | 9,080 | 11,711 | |||||||||||
Other long-term liabilities | 3,046 | |||||||||||||||||||||
Capital lease obligations - noncurrent | 262,382 | 263,676 | 231,576 | 234,199 | 223,749 | 206,927 | 231,576 | 263,676 | 206,927 | 262,382 | 223,749 | |||||||||||
Term loan, less discount and issuance costs | 287,845 | 288,034 | 288,254 | 288,254 | 288,034 | 287,845 | ||||||||||||||||
Total liabilities | 784,913 | 778,329 | 768,314 | 744,874 | 776,154 | 740,583 | 733,748 | 587,557 | 562,822 | 550,561 | 778,329 | 740,583 | 550,561 | 784,913 | 776,154 | 562,822 | 744,874 | 587,557 | ||||
Additional paid-in capital | 1,369,815 | 1,329,368 | 1,329,368 | |||||||||||||||||||
Accumulated deficit | (1,425,140) | (1,401,270) | (1,382,715) | (1,363,019) | (1,344,566) | (1,329,086) | (1,313,826) | (1,323,723) | (1,316,788) | (1,305,894) | (1,286,579) | (1,401,270) | (1,329,086) | (1,305,894) | (1,425,140) | (1,344,566) | (1,316,788) | (1,363,019) | (1,323,723) | |||
Total stockholders' equity (deficit) | (60,212) | (37,533) | (19,972) | 57 | (19,923) | (5,605) | 8,594 | (1,032) | 4,610 | 10,507 | 29,302 | (37,533) | (5,605) | 10,507 | (60,212) | (19,923) | 4,610 | 57 | (1,032) | |||
Adjustments | Adjustment | ||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||||||||
Net revenues | 82 | (112) | 309 | (1,083) | (44) | 291 | (379) | (30) | (88) | 52 | (132) | (1,215) | ||||||||||
Costs of sales and services, exclusive of depreciation and amortization | 45 | 96 | (84) | (80) | (9) | 307 | 170 | 12 | 477 | 57 | 468 | 387 | ||||||||||
Sales, general and administrative | (371) | 704 | (83) | (185) | (11) | (53) | 0 | (64) | (249) | (333) | ||||||||||||
Depreciation and amortization | (583) | (450) | (2) | (544) | (544) | (533) | (635) | (604) | (597) | (179) | (184) | (812) | (1,168) | (363) | (1,395) | (1,712) | (960) | (2,260) | (1,564) | |||
Exit activities, restructuring and impairments | 1,126 | 1,126 | ||||||||||||||||||||
Interest expense | (293) | 40 | 54 | 55 | 55 | 51 | (471) | 318 | 349 | (210) | 94 | (420) | (210) | (199) | (365) | 139 | (309) | 457 | ||||
Net loss attributable to shareholders | (213) | 573 | (363) | (426) | 639 | 477 | 610 | 285 | 248 | 389 | 184 | 210 | 1,087 | 573 | (3) | 1,726 | 822 | 1,300 | 1,107 | |||
Cash and cash equivalents | (562) | (562) | ||||||||||||||||||||
Accounts receivable, net | (704) | (704) | (431) | (132) | (88) | (379) | 562 | (704) | (88) | (704) | (132) | (431) | 562 | |||||||||
Contract assets - current | 366 | |||||||||||||||||||||
Prepaid expenses and other assets | 579 | 579 | ||||||||||||||||||||
Property and equipment, net | 4,097 | 4,713 | 4,206 | 6,245 | 5,699 | 5,155 | 4,687 | 2,069 | 1,465 | 868 | 689 | 4,713 | 5,155 | 868 | 4,097 | 5,699 | 1,465 | 6,245 | 2,069 | |||
Finance lease right-of-use assets | (196) | 1,895 | 2,042 | 1,895 | (196) | |||||||||||||||||
Goodwill | 5,067 | (980) | 5,067 | |||||||||||||||||||
Contract assets - noncurrent | 70 | |||||||||||||||||||||
Total assets | 3,197 | 5,904 | 6,248 | 5,814 | 5,567 | (166) | 3,764 | 2,069 | 2,044 | 868 | 689 | 5,904 | (166) | 868 | 3,197 | 5,567 | 2,044 | 5,814 | 2,069 | |||
Accrued liabilities | (333) | (249) | (83) | 318 | (249) | (333) | 318 | |||||||||||||||
Deferred revenues - current | (71) | (71) | 439 | 440 | 660 | (71) | (71) | 440 | ||||||||||||||
Short-term finance lease liabilities | 12 | 181 | 93 | 181 | 12 | |||||||||||||||||
Deferred revenues - noncurrent | 302 | 384 | 467 | 345 | 384 | 302 | 345 | |||||||||||||||
Finance lease liabilities | 42 | 2,289 | 2,327 | 2,289 | 42 | |||||||||||||||||
Accounts payable | 579 | 579 | ||||||||||||||||||||
Capital lease obligations - current | 91 | 86 | 9 | (67) | (1,445) | (1,445) | 9 | 86 | (1,445) | 91 | (1,445) | |||||||||||
Other long-term liabilities | 801 | |||||||||||||||||||||
Capital lease obligations - noncurrent | 2,359 | 2,391 | 2,420 | 2,298 | 1,794 | 1,794 | 2,420 | 2,391 | 1,794 | 2,359 | 1,794 | |||||||||||
Term loan, less discount and issuance costs | (210) | (210) | (210) | (210) | (210) | (210) | ||||||||||||||||
Total liabilities | 285 | 2,783 | 3,326 | 2,902 | 2,228 | 2,263 | 3,609 | 457 | 928 | (210) | 2,783 | 2,263 | (210) | 285 | 2,228 | 928 | 2,902 | 457 | ||||
Additional paid-in capital | 371 | (102) | (102) | |||||||||||||||||||
Accumulated deficit | 2,909 | 3,122 | 2,549 | 2,912 | 3,338 | 2,699 | 3,217 | 1,612 | 1,326 | 1,078 | 689 | 3,122 | 2,699 | 1,078 | 2,909 | 3,338 | 1,326 | 2,912 | 1,612 | |||
Total stockholders' equity (deficit) | $ 2,909 | $ 3,122 | $ 2,549 | $ 2,912 | $ 3,338 | $ 2,597 | $ 3,217 | $ 1,612 | $ 1,326 | $ 1,078 | $ 689 | $ 3,122 | $ 2,597 | $ 1,078 | $ 2,909 | $ 3,338 | $ 1,326 | $ 2,912 | $ 1,612 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Rollforward of Contract Assets (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Change in Contract with Customer Asset [Roll Forward] | |
Balance at December 31, 2018, current | $ 8,844 |
Balance at December 31, 2018, noncurrent | 16,104 |
Amounts recognized as expense in the period | (9,899) |
Balance at December 31, 2019, current | 9,039 |
Balance at December 31, 2019, noncurrent | 14,827 |
Balance at December 31, 2018 | 9,318 |
Revenue recognized that was included in the deferred revenue balance at December 31, 2018 | (6,325) |
Increases due to cash received, excluding amounts recognized as revenue during the period | 4,215 |
Balance at December 31, 2019 | 7,208 |
Current | |
Change in Contract with Customer Asset [Roll Forward] | |
Balance at December 31, 2018, current | 8,844 |
Deferred customer acquisition costs incurred in the period | 1,790 |
Transition between short-term and long-term | 8,304 |
Balance at December 31, 2019, current | 9,039 |
Non-current | |
Change in Contract with Customer Asset [Roll Forward] | |
Balance at December 31, 2018, noncurrent | 16,104 |
Deferred customer acquisition costs incurred in the period | 7,027 |
Amounts recognized as expense in the period | 0 |
Transition between short-term and long-term | (8,304) |
Balance at December 31, 2019, noncurrent | $ 14,827 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Performance Obligations (Details) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Accounting Policies [Abstract] | |
Remaining performance obligation | $ 169.2 |
Timing of satisfaction | P2Y0M14D |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||||||||||||||||||||
Net loss attributable to shareholders | $ (24,083) | $ (17,982) | $ (20,007) | $ (18,880) | $ (14,840) | $ (13,802) | $ (13,678) | $ (6,649) | $ (10,647) | $ (18,894) | $ (8,046) | $ (37,989) | $ (27,480) | $ (26,940) | $ (62,072) | $ (42,320) | $ (37,587) | $ (138,250) | $ (61,200) | $ (44,236) | |
Weighted average shares outstanding, basic and diluted (in shares) | 23,790 | 20,732 | 18,993 | ||||||||||||||||||
Net loss per share, basic and diluted (in dollars per share) | $ (3.21) | $ (1.02) | $ (0.76) | $ (0.85) | $ (0.80) | $ (0.73) | $ (0.69) | $ (0.68) | $ (5.81) | $ (2.95) | $ (2.33) |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 0 | $ 2,309,000 |
Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 2,309,000 | |
Recurring basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | |
Recurring basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 2,309,000 | |
Recurring basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | |
Asset retirement obligations | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset retirement obligations | 2,322,000 | 2,090,000 |
Asset retirement obligations | Recurring basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset retirement obligations | 0 | 0 |
Asset retirement obligations | Recurring basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset retirement obligations | 0 | 0 |
Asset retirement obligations | Recurring basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset retirement obligations | $ 2,322,000 | $ 2,090,000 |
FAIR VALUE MEASUREMENTS - Sum_2
FAIR VALUE MEASUREMENTS - Summary of Changes of Level 3 Financial Assets (Details) - Asset retirement obligations - Level 3 - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, January 1 | $ 2,090 | $ 1,936 | $ 2,810 |
Accretion | 232 | 154 | 197 |
Subsequent revision of estimated obligation | 0 | 0 | 449 |
Payments | 0 | 0 | (1,520) |
Balance, December 31 | $ 2,322 | $ 2,090 | $ 1,936 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Available-for-sale securities | $ 0 | $ 2,309,000 |
FAIR VALUE MEASUREMENTS - Sum_3
FAIR VALUE MEASUREMENTS - Summary of Amortized Costs vs Fair Value (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost | $ 2,309,000 | $ 2,271,000 |
Unrealized Gain | 205,000 | 149,000 |
Unrealized Loss | (162,000) | (111,000) |
Converted to Cash | (2,352,000) | |
Fair Value | 0 | 2,309,000 |
Japanese Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 2,221,000 | 2,184,000 |
Unrealized Gain | 198,000 | 144,000 |
Unrealized Loss | (156,000) | (107,000) |
Converted to Cash | (2,263,000) | |
Fair Value | 0 | 2,221,000 |
Japanese Government Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 88,000 | 87,000 |
Unrealized Gain | 7,000 | 5,000 |
Unrealized Loss | (6,000) | (4,000) |
Converted to Cash | (89,000) | |
Fair Value | $ 0 | $ 88,000 |
FAIR VALUE MEASUREMENTS - Sum_4
FAIR VALUE MEASUREMENTS - Summary of Fair Value Level 3 Debt Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Term loan | $ 425,856 | $ 429,143 |
Revolving credit facility | 20,000 | 0 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Term loan | 262,966 | 428,071 |
Revolving credit facility | $ 12,350 | $ 0 |
PROPERTY AND EQUIPMENT - Summar
PROPERTY AND EQUIPMENT - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||||||||||||
Property and equipment, gross | $ 759,544 | $ 1,069,831 | ||||||||||
Less: accumulated depreciation and amortization ($55,198 related to capital leases at December 31, 2018) | (544,433) | (585,525) | ||||||||||
Property and equipment, net | 215,111 | $ 220,645 | $ 228,210 | $ 233,391 | 484,306 | $ 493,315 | $ 468,428 | $ 476,439 | $ 460,634 | $ 442,704 | $ 428,741 | $ 292,272 |
Accumulated depreciation and amortization related to capital leases | 55,198 | |||||||||||
Network equipment | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Property and equipment, gross | 309,323 | 274,680 | ||||||||||
Network equipment under capital lease | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Property and equipment, gross | 0 | 14,206 | ||||||||||
Furniture and equipment | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Property and equipment, gross | 27,681 | 28,583 | ||||||||||
Software | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Property and equipment, gross | 50,048 | 66,924 | ||||||||||
Leasehold improvements | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Property and equipment, gross | 372,492 | 414,212 | ||||||||||
Buildings under capital lease | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Property and equipment, gross | $ 0 | $ 271,226 |
PROPERTY AND EQUIPMENT - Narrat
PROPERTY AND EQUIPMENT - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Asset retired | $ 14,900,000 | $ 4,400,000 | $ 9,200,000 |
Asset retired accumulated depreciation | 13,700,000 | 4,200,000 | 7,300,000 |
Property and equipment, gross | 759,544,000 | 1,069,831,000 | |
Accumulated depreciation | 544,433,000 | 585,525,000 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Impairment charges | 0 | ||
Property and equipment, gross | 372,492,000 | $ 414,212,000 | |
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Abandonment | Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Impairment charges | 4,500,000 | 500,000 | |
Property and equipment, gross | 37,100,000 | 22,400,000 | |
Accumulated depreciation | $ 32,600,000 | $ 21,900,000 |
PROPERTY AND EQUIPMENT - Summ_2
PROPERTY AND EQUIPMENT - Summary of Depreciation and Amortization of Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||
Costs of sales and services | $ 76,199 | $ 73,738 | $ 68,804 | |||||||||||||||||
Other depreciation and amortization | 5,013 | 10,644 | 2,478 | |||||||||||||||||
Subtotal | 81,212 | 84,382 | 71,282 | |||||||||||||||||
Amortization of acquired and developed technologies | 4,501 | 4,034 | 2,147 | |||||||||||||||||
Total depreciation and amortization | $ 20,999 | $ 21,505 | $ 22,176 | $ 22,710 | $ 23,009 | $ 22,179 | $ 20,523 | $ 16,793 | $ 20,320 | $ 18,755 | $ 17,561 | $ 43,321 | $ 42,702 | $ 36,316 | $ 64,320 | $ 65,710 | $ 56,636 | $ 85,713 | $ 88,416 | $ 73,429 |
ACQUISITION - Narrative (Detail
ACQUISITION - Narrative (Details) - SingleHop, LLC - USD ($) $ in Millions | Feb. 28, 2018 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||
Payment to acquire business | $ 132 | |
Working capital adjustment | $ 0.4 | |
Acquisition related costs | $ 2.9 | |
Customer relationships | ||
Business Acquisition [Line Items] | ||
Weighted average useful life | 10 years | |
Noncompete agreements | ||
Business Acquisition [Line Items] | ||
Weighted average useful life | 4 years | |
Trade names | ||
Business Acquisition [Line Items] | ||
Weighted average useful life | 8 years | |
Technology | ||
Business Acquisition [Line Items] | ||
Weighted average useful life | 7 years |
ACQUISITION - Fair Value of Net
ACQUISITION - Fair Value of Net Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 71,208 | $ 116,217 | $ 740,089 | $ 117,097 | $ 50,209 |
SingleHop, LLC | |||||
Business Acquisition [Line Items] | |||||
Cash | 2,823 | ||||
Prepaid expenses and other assets | 2,227 | ||||
Property and equipment | 14,253 | ||||
Other assets | 576 | ||||
Goodwill | 66,008 | ||||
Total assets acquired | 140,787 | ||||
Accounts payable and accrued liabilities | 2,819 | ||||
Deferred revenue | 2,434 | ||||
Long term liabilities | 534 | ||||
Net assets acquired | 135,000 | ||||
Noncompete agreements | SingleHop, LLC | |||||
Business Acquisition [Line Items] | |||||
Customer relationships | 4,000 | ||||
Trade names | SingleHop, LLC | |||||
Business Acquisition [Line Items] | |||||
Customer relationships | 1,700 | ||||
Technology | SingleHop, LLC | |||||
Business Acquisition [Line Items] | |||||
Customer relationships | 15,100 | ||||
Customer relationships | SingleHop, LLC | |||||
Business Acquisition [Line Items] | |||||
Customer relationships | $ 34,100 |
ACQUISITION - Unaudited Pro-For
ACQUISITION - Unaudited Pro-Forma Financial Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Combinations [Abstract] | ||
Revenue | $ 324,283 | $ 328,572 |
Net loss attributable to INAP stockholders | $ (62,276) | $ (46,214) |
Basic and diluted net loss per share (in dollars per share) | $ (3.01) | $ (2.44) |
Weighted average shares outstanding used in computing basic and diluted net loss per share (in shares) | 20,732 | 18,993 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) | Aug. 01, 2019USD ($) | Aug. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Aug. 01, 2020 | Dec. 01, 2019 |
Goodwill [Line Items] | ||||||||
Goodwill and intangibles impairment | $ 0 | $ 45,009,000 | $ 0 | |||||
Impairment of intangible assets | $ 0 | |||||||
Amortization expense for intangible assets | 13,300,000 | $ 11,100,000 | $ 4,400,000 | |||||
Customer relationships and trade names | ||||||||
Goodwill [Line Items] | ||||||||
Impairment of intangible assets | $ 13,100,000 | |||||||
Customer relationships and trade names | Minimum | ||||||||
Goodwill [Line Items] | ||||||||
Useful life | 10 years | |||||||
Customer relationships and trade names | Maximum | ||||||||
Goodwill [Line Items] | ||||||||
Useful life | 30 years | |||||||
Developed technology | ||||||||
Goodwill [Line Items] | ||||||||
Impairment of intangible assets | $ 1,000,000 | |||||||
Other Intangible Assets | Minimum | ||||||||
Goodwill [Line Items] | ||||||||
Useful life | 4 years | |||||||
Other Intangible Assets | Maximum | ||||||||
Goodwill [Line Items] | ||||||||
Useful life | 30 years | |||||||
INAP CLOUD | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill and intangibles impairment | $ 22,900,000 | |||||||
Impairment of intangible assets | $ 12,900,000 | |||||||
Cloud INAP INTL | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill and intangibles impairment | 21,200,000 | |||||||
Ubersmith INAP INTL | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill and intangibles impairment | $ 900,000 | |||||||
Impairment of intangible assets | $ 1,200,000 | |||||||
Measurement Input, Discount Rate | Minimum | ||||||||
Goodwill [Line Items] | ||||||||
Measurement input | 0.120 | |||||||
Measurement Input, Discount Rate | Maximum | ||||||||
Goodwill [Line Items] | ||||||||
Measurement input | 0.160 | |||||||
Subsequent Event | Measurement Input, Discount Rate | Minimum | ||||||||
Goodwill [Line Items] | ||||||||
Measurement input | 0.080 | |||||||
Subsequent Event | Measurement Input, Discount Rate | Maximum | ||||||||
Goodwill [Line Items] | ||||||||
Measurement input | 0.130 | |||||||
Subsequent Event | Measurement Input, Long-term Revenue Growth Rate | Minimum | ||||||||
Goodwill [Line Items] | ||||||||
Measurement input | 0.020 | |||||||
Subsequent Event | Measurement Input, Long-term Revenue Growth Rate | Maximum | ||||||||
Goodwill [Line Items] | ||||||||
Measurement input | 0.010 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of Re-Allocations of Goodwill (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Aug. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||||
Goodwill, beginning of period | $ 116,217,000 | $ 50,209,000 | ||
Re-allocations | 0 | |||
SingleHop Acquisition | 66,008,000 | |||
Impairment | $ 0 | (45,009,000) | 0 | |
Goodwill, end of period | $ 71,208,000 | 71,208,000 | 116,217,000 | |
INAP COLO | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning of period | 0 | 6,003,000 | ||
Re-allocations | (6,003,000) | |||
Goodwill, end of period | 0 | 0 | 0 | |
INAP CLOUD | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning of period | 0 | 44,206,000 | ||
Re-allocations | (44,206,000) | |||
Impairment | (22,900,000) | |||
Goodwill, end of period | 0 | 0 | 0 | |
INAP US | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning of period | 94,126,000 | |||
Re-allocations | 28,118,000 | |||
SingleHop Acquisition | 66,008,000 | |||
Impairment | (22,918,000) | |||
Goodwill, end of period | 71,208,000 | 71,208,000 | 94,126,000 | |
INAP INTL | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning of period | 22,091,000 | |||
Re-allocations | 22,091,000 | |||
Impairment | (22,091,000) | |||
Goodwill, end of period | $ 0 | $ 0 | $ 22,091,000 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of Components of Amortizing Intangible Assets, Including Capitalized Software (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 158,421 | $ 182,371 |
Accumulated Amortization | (111,825) | (109,329) |
Acquired and developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 63,866 | 71,586 |
Accumulated Amortization | (49,127) | (52,097) |
Customer relationships and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 94,555 | 110,785 |
Accumulated Amortization | $ (62,698) | $ (57,232) |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of Remaining Amortization Expense (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 9,919 |
2021 | 9,314 |
2022 | 7,274 |
2023 | 6,619 |
2024 | 5,735 |
Thereafter | 7,735 |
Finite-lived intangible assets, Total | $ 46,596 |
ACCRUED LIABILITIES - Summary o
ACCRUED LIABILITIES - Summary of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | |||||
Compensation and benefits payable | $ 3,601 | $ 7,190 | |||
Property, sales, and other taxes | 1,350 | 785 | |||
Customer credit balances | 1,730 | 2,204 | |||
Accrued interest | 953 | 1,762 | |||
Other | 3,087 | 3,266 | |||
Accrued liabilities, current, total | $ 10,721 | $ 15,207 | $ 17,617 | $ 14,196 | $ 16,226 |
EXIT ACTIVITIES AND RESTRUCTU_3
EXIT ACTIVITIES AND RESTRUCTURING - Schedule of Exit Activities and Restructuring Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | |||
Balance | $ 2,601 | $ 4,816 | $ 4,703 |
Initial Charges | 1,629 | 3,484 | 3,359 |
Plan Adjustments | 207 | 1,687 | 2,932 |
Cash Payments | (4,237) | (7,386) | (6,178) |
Balance | 200 | 2,601 | 4,816 |
Activity of 2019 Restructuring | Real estate obligations | |||
Restructuring Reserve [Roll Forward] | |||
Balance | 0 | ||
Initial Charges | 1,629 | ||
Plan Adjustments | (116) | ||
Cash Payments | (1,377) | ||
Balance | 136 | 0 | |
Activity of 2018 Restructuring | Real estate obligations | |||
Restructuring Reserve [Roll Forward] | |||
Balance | 1,922 | 0 | |
Initial Charges | 0 | 3,484 | |
Plan Adjustments | 187 | 1,023 | |
Cash Payments | (2,109) | (2,585) | |
Balance | 0 | 1,922 | 0 |
Activity of 2017 Restructuring | Real estate obligations | |||
Restructuring Reserve [Roll Forward] | |||
Balance | 100 | 3,380 | 0 |
Initial Charges | 0 | 0 | 3,359 |
Plan Adjustments | 1 | 316 | 1,741 |
Cash Payments | (101) | (3,596) | (1,720) |
Balance | 0 | 100 | 3,380 |
Activity of 2016 Restructuring | Real estate obligations | |||
Restructuring Reserve [Roll Forward] | |||
Balance | 125 | 247 | 933 |
Initial Charges | 0 | 0 | 0 |
Plan Adjustments | 11 | 39 | 82 |
Cash Payments | (136) | (161) | (768) |
Balance | 0 | 125 | 247 |
Activity of 2016 Restructuring | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Balance | 0 | 46 | 1,911 |
Initial Charges | 0 | 0 | |
Plan Adjustments | 34 | 957 | |
Cash Payments | (80) | (2,822) | |
Balance | 0 | 46 | |
Activity of 2015 Restructuring | Real estate obligations | |||
Restructuring Reserve [Roll Forward] | |||
Balance | 27 | 64 | 111 |
Initial Charges | 0 | 0 | 0 |
Plan Adjustments | 29 | 4 | 0 |
Cash Payments | (56) | (41) | (47) |
Balance | 0 | 27 | 64 |
Activity of 2015 Restructuring | Service contracts | |||
Restructuring Reserve [Roll Forward] | |||
Balance | 221 | 388 | 565 |
Initial Charges | 0 | 0 | 0 |
Plan Adjustments | 41 | 31 | 21 |
Cash Payments | (198) | (198) | (198) |
Balance | 64 | 221 | 388 |
Activity of 2014 Restructuring | Real estate obligations | |||
Restructuring Reserve [Roll Forward] | |||
Balance | 206 | 691 | 1,183 |
Initial Charges | 0 | 0 | 0 |
Plan Adjustments | 54 | 240 | 131 |
Cash Payments | (260) | (725) | (623) |
Balance | $ 0 | $ 206 | $ 691 |
COMMITMENTS, CONTINGENCIES AN_3
COMMITMENTS, CONTINGENCIES AND LITIGATION - Narrative (Details) | Oct. 29, 2019USD ($) | May 08, 2019USD ($) | May 07, 2019USD ($) | Aug. 28, 2018USD ($) | Apr. 09, 2018USD ($) | Feb. 28, 2018USD ($) | Feb. 06, 2018USD ($) | Apr. 06, 2017USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Loss on extinguishment and modification of debt | $ 0 | $ 0 | $ 6,785,000 | ||||||||||||||||||||
Outstanding principal balance | $ 12,500,000 | $ 13,500,000 | $ 12,500,000 | 13,500,000 | |||||||||||||||||||
Maximum total leverage ratio | 7.03 | ||||||||||||||||||||||
Minimum consolidated interest coverage ratio | 1.84 | ||||||||||||||||||||||
Term loan amount | 425,900,000 | $ 425,900,000 | |||||||||||||||||||||
Asset retirement obligation | 2,100,000 | 2,100,000 | |||||||||||||||||||||
Revenues | 71,650,000 | $ 72,960,000 | $ 73,022,000 | $ 73,873,000 | 77,155,000 | $ 82,928,000 | $ 82,253,000 | $ 73,822,000 | $ 146,668,000 | $ 156,075,000 | $ 219,628,000 | $ 239,003,000 | 291,505,000 | 316,158,000 | $ 280,718,000 | ||||||||
Term Loan | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Outstanding principal balance | $ 413,311,000 | $ 415,599,000 | $ 413,311,000 | $ 415,599,000 | |||||||||||||||||||
Interest rate | 8.00% | 8.20% | 8.00% | 8.20% | |||||||||||||||||||
Term Loan | Base rate | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Basis spread on variable rate | 4.75% | ||||||||||||||||||||||
Term Loan | LIBOR | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Basis spread on variable rate | 5.75% | ||||||||||||||||||||||
Revolving credit facility | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Debt issuance costs | $ 2,900,000 | $ 2,900,000 | |||||||||||||||||||||
Outstanding principal balance | $ 20,000,000 | $ 0 | $ 20,000,000 | $ 0 | |||||||||||||||||||
Interest rate | 8.70% | 0.00% | 8.70% | 0.00% | |||||||||||||||||||
Revolving credit facility | Base rate | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Basis spread on variable rate | 6.00% | ||||||||||||||||||||||
Revolving credit facility | LIBOR | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Basis spread on variable rate | 7.00% | ||||||||||||||||||||||
Other Current Liabilities | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Asset retirement obligation | $ 2,300,000 | $ 2,300,000 | |||||||||||||||||||||
Credit Agreement 2017 | Term Loan | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Credit limit | $ 300,000,000 | ||||||||||||||||||||||
Debt issuance costs | 5,700,000 | ||||||||||||||||||||||
Debt fee amount | 3,300,000 | ||||||||||||||||||||||
Credit Agreement 2017 | Revolving credit facility | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Credit limit | 25,000,000 | ||||||||||||||||||||||
Debt issuance costs | 400,000 | ||||||||||||||||||||||
Credit Agreement | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Loss on extinguishment and modification of debt | 4,800,000 | ||||||||||||||||||||||
Minimum net cash proceeds from equity offering (not less than) | $ 135,000,000 | ||||||||||||||||||||||
Minimum gross cash proceeds from equity offering (not less than) | $ 135,000,000 | ||||||||||||||||||||||
Credit Agreement | LIBOR | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Basis spread on variable rate | 1.00% | ||||||||||||||||||||||
Credit Agreement | Prime Rate | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Basis spread on variable rate | 2.00% | ||||||||||||||||||||||
Credit Agreement | Federal Funds Effective Rate | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Basis spread on variable rate | 0.50% | ||||||||||||||||||||||
Credit Agreement | Revolving credit facility | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Debt issuance costs paid | 1,900,000 | ||||||||||||||||||||||
Fifth Amendment To Credit Agreement | Revolving credit facility | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Credit limit | $ 35,000,000 | ||||||||||||||||||||||
Line of credit facility increase (decrease) | $ 10,000,000 | ||||||||||||||||||||||
Sixth Amendment To Credit Agreement | Revolving credit facility | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
In kind interest rate | 0.75% | ||||||||||||||||||||||
Permitted asset dispositions | $ 50,000,000 | $ 150,000,000 | |||||||||||||||||||||
Maximum sales proceeds that may be reinvested | 2,500,000 | ||||||||||||||||||||||
Restricted payment | $ 1,000,000 | $ 5,000,000 | |||||||||||||||||||||
Sixth Amendment To Credit Agreement | Revolving credit facility | Base rate | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Basis spread on variable rate | 5.25% | 4.75% | |||||||||||||||||||||
Sixth Amendment To Credit Agreement | Revolving credit facility | Eurodollar | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Basis spread on variable rate | 6.25% | 5.75% | |||||||||||||||||||||
Sixth Amendment To Credit Agreement | Capital Lease Obligations Basket | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Credit limit | $ 500,000 | ||||||||||||||||||||||
Sixth Amendment To Credit Agreement | Investment Basket | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Credit limit | $ 25,000,000 | ||||||||||||||||||||||
Basket, rate | 30.00% | ||||||||||||||||||||||
Sixth Amendment To Credit Agreement | Incremental Facility | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Credit limit | $ 50,000,000 | ||||||||||||||||||||||
Sixth Amendment To Credit Agreement | Foreign Subsidiary Debt Basket | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Credit limit | $ 15,000,000 | ||||||||||||||||||||||
Basket, rate | 18.00% | ||||||||||||||||||||||
Sixth Amendment To Credit Agreement | General Basket | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Credit limit | $ 50,000,000 | ||||||||||||||||||||||
Basket, rate | 61.00% | ||||||||||||||||||||||
Seventh Amendment To Agreement | Revolving credit facility | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Debt issuance costs | 1,300,000 | $ 1,300,000 | |||||||||||||||||||||
Permitted asset dispositions | $ 25,000,000 | ||||||||||||||||||||||
Maximum sales proceeds that may be reinvested | 1,000,000 | ||||||||||||||||||||||
Seventh Amendment To Agreement | Investment Basket | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Credit limit | $ 12,500,000 | ||||||||||||||||||||||
Basket, rate | 15.00% | ||||||||||||||||||||||
Seventh Amendment To Agreement | Incremental Facility | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Credit limit | $ 25,000,000 | ||||||||||||||||||||||
Seventh Amendment To Agreement | Foreign Subsidiary Debt Basket | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Credit limit | $ 5,000,000 | ||||||||||||||||||||||
Basket, rate | 6.00% | ||||||||||||||||||||||
Seventh Amendment To Agreement | General Basket | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Credit limit | $ 25,000,000 | ||||||||||||||||||||||
Basket, rate | 30.00% | ||||||||||||||||||||||
Debt Due in Event of Default | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Outstanding principal balance | 20,000,000 | $ 20,000,000 | |||||||||||||||||||||
Line of Credit | Credit Agreement 2017 | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Debt issuance costs paid | $ 5,700,000 | ||||||||||||||||||||||
Line of Credit | Second Amendment To 2017 Credit Agreement | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Debt issuance costs paid | 1,000,000 | ||||||||||||||||||||||
Debt issuance costs | 1,000,000 | ||||||||||||||||||||||
Debt fee amount | 800,000 | ||||||||||||||||||||||
Legal fees | $ 200,000 | ||||||||||||||||||||||
Line of Credit | Third Amendment To 2017 Credit Agreement | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Debt issuance costs paid | 5,000,000 | ||||||||||||||||||||||
Debt fee amount | 4,900,000 | ||||||||||||||||||||||
Legal fees | 100,000 | ||||||||||||||||||||||
Line of Credit | Third Amendment To 2017 Credit Agreement | Term Loan | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Debt issuance costs | $ 5,000,000 | ||||||||||||||||||||||
Line of Credit | Fourth Amendment To Credit Agreement | Term Loan | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Debt issuance costs paid | $ 1,700,000 | ||||||||||||||||||||||
Debt issuance costs | 1,700,000 | ||||||||||||||||||||||
Debt fee amount | 1,600,000 | ||||||||||||||||||||||
Legal fees | $ 100,000 | ||||||||||||||||||||||
Interest rate increase (decrease) | (1.25%) | ||||||||||||||||||||||
June 30, 2019 | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Maximum total leverage ratio | 7.25 | ||||||||||||||||||||||
June 30, 2019 | Sixth Amendment To Credit Agreement | Revolving credit facility | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Maximum total leverage ratio | 6.80 | ||||||||||||||||||||||
September 30, 2019 | Sixth Amendment To Credit Agreement | Revolving credit facility | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Maximum total leverage ratio | 6.90 | ||||||||||||||||||||||
March 31, 2020 | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Minimum consolidated interest coverage ratio | 1.60 | ||||||||||||||||||||||
March 31, 2020 | Sixth Amendment To Credit Agreement | Revolving credit facility | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Maximum total leverage ratio | 6.75 | ||||||||||||||||||||||
June 30, 2020 | Sixth Amendment To Credit Agreement | Revolving credit facility | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Maximum total leverage ratio | 6.25 | ||||||||||||||||||||||
September 30, 2020 | Sixth Amendment To Credit Agreement | Revolving credit facility | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Maximum total leverage ratio | 6 | ||||||||||||||||||||||
December 31, 2020 | Sixth Amendment To Credit Agreement | Revolving credit facility | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Maximum total leverage ratio | 5.75 | ||||||||||||||||||||||
March 2021 | Sixth Amendment To Credit Agreement | Revolving credit facility | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Maximum total leverage ratio | 5.50 | ||||||||||||||||||||||
June 30, 2021 | Sixth Amendment To Credit Agreement | Revolving credit facility | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Maximum total leverage ratio | 5 | ||||||||||||||||||||||
September 30, 2021 and thereafter | Sixth Amendment To Credit Agreement | Revolving credit facility | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Maximum total leverage ratio | 4.50 | ||||||||||||||||||||||
June 30, 2019 | Sixth Amendment To Credit Agreement | Revolving credit facility | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Minimum consolidated interest coverage ratio | 1.75 | ||||||||||||||||||||||
September 30, 2019 - March 31, 2020 | Sixth Amendment To Credit Agreement | Revolving credit facility | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Minimum consolidated interest coverage ratio | 1.70 | ||||||||||||||||||||||
June 30, 2020 | Sixth Amendment To Credit Agreement | Revolving credit facility | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Minimum consolidated interest coverage ratio | 1.80 | ||||||||||||||||||||||
September 2020 | Sixth Amendment To Credit Agreement | Revolving credit facility | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Minimum consolidated interest coverage ratio | 1.85 | ||||||||||||||||||||||
December 31, 2020 and thereafter | Sixth Amendment To Credit Agreement | Revolving credit facility | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Minimum consolidated interest coverage ratio | 2 | ||||||||||||||||||||||
December 31, 2019 | Seventh Amendment To Agreement | Revolving credit facility | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Maximum total leverage ratio | 7.25 | ||||||||||||||||||||||
Minimum consolidated interest coverage ratio | 1.60 | ||||||||||||||||||||||
March 31, 2021 | Seventh Amendment To Agreement | Revolving credit facility | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Maximum total leverage ratio | 5.50 | ||||||||||||||||||||||
Minimum consolidated interest coverage ratio | 2 | ||||||||||||||||||||||
June 30, 2021 | Seventh Amendment To Agreement | Revolving credit facility | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Maximum total leverage ratio | 5 | ||||||||||||||||||||||
September 30, 2021 and thereafte | Seventh Amendment To Agreement | Revolving credit facility | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Maximum total leverage ratio | 4.50 | ||||||||||||||||||||||
Legal and Professional Fees | Revolving credit facility | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Debt issuance costs | 100,000 | $ 100,000 | |||||||||||||||||||||
Legal and Professional Fees | Seventh Amendment To Agreement | Revolving credit facility | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Debt issuance costs | 100,000 | 100,000 | |||||||||||||||||||||
Lender Fees | Revolving credit facility | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Debt issuance costs | 2,800,000 | 2,800,000 | |||||||||||||||||||||
Lender Fees | Seventh Amendment To Agreement | Revolving credit facility | |||||||||||||||||||||||
Commitment Contingencies and Litigation [Line Items] | |||||||||||||||||||||||
Debt issuance costs | $ 1,200,000 | $ 1,200,000 |
COMMITMENTS, CONTINGENCIES AN_4
COMMITMENTS, CONTINGENCIES AND LITIGATION - Financial Covenants (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Other Commitments [Line Items] | |
Maximum total leverage ratio (the ratio of Consolidated Indebtedness to Consolidated EBITDA as defined in the credit agreement) should be equal to or less than: | 7.03 |
Minimum consolidated interest coverage ratio (the ratio of Consolidated EBITDA to Consolidated Interest Expense as defined in the credit agreement) should be equal to or greater than: | 1.84 |
March 1, 2018 Through June 30, 2019 | |
Other Commitments [Line Items] | |
Maximum total leverage ratio (the ratio of Consolidated Indebtedness to Consolidated EBITDA as defined in the credit agreement) should be equal to or less than: | 7.25 |
June 30, 2020 Through September 30, 2020 | |
Other Commitments [Line Items] | |
Minimum consolidated interest coverage ratio (the ratio of Consolidated EBITDA to Consolidated Interest Expense as defined in the credit agreement) should be equal to or greater than: | 1.60 |
COMMITMENTS, CONTINGENCIES AN_5
COMMITMENTS, CONTINGENCIES AND LITIGATION - Summary of Credit Agreement (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Line of Credit Facility [Line Items] | ||
Outstanding principal balance | $ 12,500 | $ 13,500 |
Borrowing capacity on revolving credit facility | 10,059 | 30,682 |
Term Loan | ||
Line of Credit Facility [Line Items] | ||
Outstanding principal balance | $ 413,311 | $ 415,599 |
Interest rate | 8.00% | 8.20% |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Outstanding principal balance | $ 20,000 | $ 0 |
Letters of credit issued | $ 4,810 | $ 4,187 |
Interest rate | 8.70% | 0.00% |
Surety Bond | ||
Line of Credit Facility [Line Items] | ||
Outstanding principal balance | $ 131 | $ 131 |
COMMITMENTS, CONTINGENCIES AN_6
COMMITMENTS, CONTINGENCIES AND LITIGATION - Other Commitments (Details) - IP, Telecommunications and Data Center Services $ in Thousands | Dec. 31, 2019USD ($) |
Schedule Of Commitments And Contingencies [Line Items] | |
2020 | $ 2,390 |
2021 | 796 |
2022 | 140 |
2023 | 19 |
2024 | 0 |
Thereafter | 0 |
Total contractual commitments future minimum payments due | $ 3,345 |
OPERATING SEGMENTS AND GEOGRA_3
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION - Narrative (Details) | 1 Months Ended | 12 Months Ended | |
Aug. 31, 2019USD ($) | Dec. 31, 2019USD ($)point_of_presencesegment | Dec. 31, 2018USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 2 | ||
Goodwill and intangibles impairment | $ | $ 0 | $ 45,009,000 | $ 0 |
Segment Reporting Information [Line Items] | |||
Number of POPs | 94 | ||
Network Services | |||
Segment Reporting Information [Line Items] | |||
Number of POPs | 94 |
OPERATING SEGMENTS AND GEOGRA_4
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION - Summary of Operating Results for Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | |||||||||||||||
Revenues | $ 71,650 | $ 72,960 | $ 73,022 | $ 73,873 | $ 77,155 | $ 82,928 | $ 82,253 | $ 73,822 | $ 146,668 | $ 156,075 | $ 219,628 | $ 239,003 | $ 291,505 | $ 316,158 | $ 280,718 |
Costs of sales and services, customer support and sales and marketing: | |||||||||||||||
Costs of sales and services, customer support and sales and marketing: | 168,599 | 180,303 | 165,891 | ||||||||||||
Segment profit: | |||||||||||||||
Segment profit | 122,906 | 135,855 | 114,827 | ||||||||||||
Goodwill and intangibles impairment | 59,126 | 0 | 0 | ||||||||||||
Exit activities, restructuring and impairments | $ 3,547 | $ 3,792 | $ 231 | $ 1,416 | $ 2,266 | $ 2,347 | $ 826 | $ (33) | 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) | ||||||||||||
INAP US | |||||||||||||||
Revenues: | |||||||||||||||
Revenues | 228,744 | 247,146 | 215,770 | ||||||||||||
Costs of sales and services, customer support and sales and marketing: | |||||||||||||||
Costs of sales and services, customer support and sales and marketing: | 129,329 | 135,179 | 128,062 | ||||||||||||
Segment profit: | |||||||||||||||
Segment profit | 99,415 | 111,967 | 87,708 | ||||||||||||
INAP INTL | |||||||||||||||
Revenues: | |||||||||||||||
Revenues | 62,761 | 69,012 | 64,948 | ||||||||||||
Costs of sales and services, customer support and sales and marketing: | |||||||||||||||
Costs of sales and services, customer support and sales and marketing: | 39,270 | 45,124 | 37,829 | ||||||||||||
Segment profit: | |||||||||||||||
Segment profit | $ 23,491 | $ 23,888 | $ 27,119 |
OPERATING SEGMENTS AND GEOGRA_5
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION - Revenue by Source (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||||||
Revenues | $ 71,650 | $ 72,960 | $ 73,022 | $ 73,873 | $ 77,155 | $ 82,928 | $ 82,253 | $ 73,822 | $ 146,668 | $ 156,075 | $ 219,628 | $ 239,003 | $ 291,505 | $ 316,158 | $ 280,718 |
Colocation | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Revenues | 115,653 | 130,086 | 124,083 | ||||||||||||
Network Services | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Revenues | 56,630 | 64,111 | 67,435 | ||||||||||||
Cloud | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Revenues | 119,222 | 121,961 | 89,200 | ||||||||||||
INAP US | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Revenues | 228,744 | 247,146 | 215,770 | ||||||||||||
INAP US | Colocation | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Revenues | 109,850 | 124,244 | |||||||||||||
INAP US | Network Services | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Revenues | 45,589 | 52,748 | |||||||||||||
INAP US | Cloud | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Revenues | 73,305 | 70,154 | |||||||||||||
INAP INTL | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Revenues | 62,761 | 69,012 | $ 64,948 | ||||||||||||
INAP INTL | Colocation | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Revenues | 5,803 | 5,842 | |||||||||||||
INAP INTL | Network Services | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Revenues | 11,041 | 11,363 | |||||||||||||
INAP INTL | Cloud | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Revenues | $ 45,917 | $ 51,807 |
OPERATING SEGMENTS AND GEOGRA_6
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION - Summary of Revenues by Country (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | $ 71,650 | $ 72,960 | $ 73,022 | $ 73,873 | $ 77,155 | $ 82,928 | $ 82,253 | $ 73,822 | $ 146,668 | $ 156,075 | $ 219,628 | $ 239,003 | $ 291,505 | $ 316,158 | $ 280,718 |
United States | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 232,735 | 251,444 | 220,018 | ||||||||||||
Canada | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 33,089 | 37,956 | 38,750 | ||||||||||||
Other countries | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | $ 25,681 | $ 26,758 | $ 21,950 |
OPERATING SEGMENTS AND GEOGRA_7
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION - Summary of Net Property and Equipment by Country (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 |
Segment Reporting Information [Line Items] | ||||||||||||
Property and equipment, net | $ 215,111 | $ 220,645 | $ 228,210 | $ 233,391 | $ 484,306 | $ 493,315 | $ 468,428 | $ 476,439 | $ 460,634 | $ 442,704 | $ 428,741 | $ 292,272 |
United States | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Property and equipment, net | 176,922 | 439,753 | ||||||||||
Canada | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Property and equipment, net | 29,671 | 38,718 | ||||||||||
Other countries | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Property and equipment, net | $ 8,518 | $ 5,835 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 4.2 | $ 4.7 | $ 3 |
Stock granted (in shares) | 0 | 0 | 0 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, exercises in period, intrinsic value | $ 0.1 | $ 0.4 | |
Vested in period, fair value | $ 0.8 | 1.7 | 2.6 |
Nonvested total intrinsic value | 2 | ||
Restricted Stock | Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum value of shares per employee | $ 0.3 | $ 0.7 | $ 1.1 |
2017 Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 1,400,000 | ||
Incentive Stock Plan | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum grants authorized per each participant (in shares) | 350,000 | ||
Incentive Stock Plan | Minimum | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLANS - Summary of Stock Option Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | |||
Granted (in shares) | 0 | 0 | 0 |
Stock options | |||
Shares | |||
Balance, December 31, 2017 (in shares) | 223,000 | ||
Granted (in shares) | 0 | ||
Exercised (in shares) | 0 | ||
Forfeitures and post-vesting cancellations (in shares) | (48,000) | ||
Balance, December 31, 2018 (in shares) | 175,000 | 223,000 | |
Exercisable, December 31, 2018 (in shares) | 174,000 | ||
Weighted Average Exercise Price | |||
Balance, December 31, 2017 (in dollars per share) | $ 25.95 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 0 | ||
Forfeitures and post-vesting cancellations (in dollars per share) | 21.91 | ||
Balance, December 31, 2018 (in dollars per share) | 27.01 | $ 25.95 | |
Exercisable, December 31, 2018 (in dollars per share) | $ 27.13 |
STOCK-BASED COMPENSATION PLAN_4
STOCK-BASED COMPENSATION PLANS - Summary of Fully Vested and Exercisable Stock Options and Stock Options Expected to Vest (Details) - Stock options $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Fully vested and exercisable, total shares (in shares) | shares | 174 |
Fully vested and exercisable, weighted-average exercise price (in dollars per share) | $ / shares | $ 27.13 |
Fully vested and exercisable, aggregate intrinsic value | $ | $ 0 |
Fully vested and exercisable, weighted-average remaining contractual term (in years) | 3 years 2 months 12 days |
Expected to vest, total shares (in shares) | shares | 175 |
Expected to vest, weighted-average exercise price (in dollars per share) | $ / shares | $ 27.01 |
Expected to vest, aggregate intrinsic value | $ | $ 0 |
Expected to vest, weighted-average remaining contractual term (in years) | 3 years 2 months 12 days |
STOCK-BASED COMPENSATION PLAN_5
STOCK-BASED COMPENSATION PLANS - Summary of Restricted Stock Activity (Details) - Restricted stock shares in Thousands | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Shares | |
Unvested balance, December 31, 2017 (in shares) | shares | 958 |
Granted (in shares) | shares | 1,689 |
Vested (in shares) | shares | (334) |
Forfeited (in shares) | shares | (542) |
Unvested balance, December 31, 2018 (in shares) | shares | 1,771 |
Weighted-Average Grant Date Fair Value | |
Unvested balance, December 31, 2017 (in dollars per share) | $ / shares | $ 5.17 |
Granted (in dollars per share) | $ / shares | 2.47 |
Vested (in dollars per share) | $ / shares | 6.12 |
Forfeited (in dollars per share) | $ / shares | 2.12 |
Unvested balance, December 31, 2018 (in dollars per share) | $ / shares | $ 3.05 |
STOCK-BASED COMPENSATION PLAN_6
STOCK-BASED COMPENSATION PLANS - Summary of Total Unrecognized Compensation Costs Related to Unvested Stock-Based Compensation (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Unrecognized compensation | $ 3,565 |
Weighted-average remaining recognition period (in years) | 1 year 7 months 17 days |
Stock options | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Unrecognized compensation | $ 3 |
Weighted-average remaining recognition period (in years) | 1 month 21 days |
Restricted stock | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Unrecognized compensation | $ 3,562 |
Weighted-average remaining recognition period (in years) | 1 year 5 months 27 days |
EMPLOYEE RETIREMENT PLAN - Narr
EMPLOYEE RETIREMENT PLAN - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Employer contributions | $ 0.7 | $ 0.7 | $ 0.4 |
INCOME TAXES - Loss from Contin
INCOME TAXES - Loss from Continuing Operations Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (107,905) | $ (63,450) | $ (45,541) |
Foreign | (31,912) | 3,032 | 421 |
Loss before income taxes and equity in earnings of equity-method investment | $ (139,817) | $ (60,418) | $ (45,120) |
INCOME TAXES - Summary of Curre
INCOME TAXES - Summary of Current and Deferred Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ 0 | $ 0 | $ (730) |
State | 128 | 118 | 123 |
Foreign | 559 | 277 | 507 |
Total current income tax provision | 687 | 395 | (100) |
Deferred: | |||
Federal | 0 | 0 | 0 |
State | 0 | 0 | 0 |
Foreign | (2,335) | 262 | 353 |
Total deferred income tax provision | (2,335) | 262 | 353 |
Income tax (benefit) expense | $ (1,648) | $ 657 | $ 253 |
INCOME TAXES - Summary of Effec
INCOME TAXES - Summary of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax at statutory rates | (21.00%) | (21.00%) | (34.00%) |
State income tax | (4.60%) | (5.50%) | (5.00%) |
Other permanent differences | (0.30%) | 1.20% | 0.40% |
Tax rates different than statutory | (0.50%) | 1.20% | 0.50% |
Statutory tax rate change - Deferred - Tax Reform Act | 0.00% | 0.00% | (128.40%) |
Statutory tax rate change - Valuation Allowance - Tax Reform Act | 0.00% | 0.00% | 128.40% |
Goodwill impairment | 3.40% | 0.00% | 0.00% |
Refundable AMT credit | 0.00% | 0.00% | (1.50%) |
Change in valuation allowance | 21.80% | 25.20% | 40.10% |
Effective tax rate | (1.20%) | 1.10% | 0.50% |
INCOME TAXES - Summary of Defer
INCOME TAXES - Summary of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred income tax assets: | ||||
Net operating loss carryforwards | $ 99,481 | $ 93,704 | ||
Property and equipment | 35,535 | 38,556 | ||
Goodwill and intangible assets | 9,253 | 0 | ||
Deferred revenue | 1,439 | 971 | ||
Non-deductible interest | 23,181 | 10,028 | ||
Leases - ASC 842 | 20,811 | 0 | ||
Stock-based compensation | 2,073 | 1,486 | ||
Provision for doubtful accounts | 682 | 956 | ||
Accrued compensation | 308 | 1,008 | ||
Tax credits carried forward | 1,832 | 2,735 | ||
Other | 1,919 | 1,785 | ||
Total deferred income tax assets | 196,514 | 151,229 | ||
Deferred income tax liabilities: | ||||
Leases - ASC 842 | (15,889) | 0 | ||
Contracts assets | (6,244) | (6,186) | ||
Goodwill and intangible assets | 0 | (375) | ||
Refinancing costs | (416) | (4,130) | ||
Total deferred income tax liabilities | 22,549 | 10,691 | ||
Net deferred income tax assets | 173,965 | 140,538 | ||
Valuation allowance | (173,841) | (142,749) | $ (132,712) | $ (164,865) |
Net deferred income tax assets (liabilities) | $ 124 | |||
Net deferred income tax assets (liabilities) | $ (2,211) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax [Line Items] | ||||
Tax credit carryforward | $ 400 | |||
Valuation allowance | 173,841 | $ 142,749 | $ 132,712 | $ 164,865 |
Undistributed earnings of foreign subsidiaries | 100 | |||
Unrecognized tax positions | 1 | 300 | $ 162 | |
Interest and penalties accrued | 100 | $ 200 | ||
U.S. Tax Authority | ||||
Income Tax [Line Items] | ||||
Net operating loss carryforwards | 341,200 | |||
Valuation allowance | 166,600 | |||
Unrecognized tax positions | 190,700 | |||
Foreign Tax Authority | ||||
Income Tax [Line Items] | ||||
Net operating loss carryforwards | 46,600 | |||
Valuation allowance | 7,200 | |||
Tax Years 2018 to 2037 | U.S. Tax Authority | ||||
Income Tax [Line Items] | ||||
Net operating loss carryforwards | 285,200 | |||
No Expiration Date | U.S. Tax Authority | ||||
Income Tax [Line Items] | ||||
Net operating loss carryforwards | 56,000 | |||
Her Majesty's Revenue and Customs (HMRC) | ||||
Income Tax [Line Items] | ||||
Net operating loss carryforwards | 14,300 | |||
Canada Revenue Agency | ||||
Income Tax [Line Items] | ||||
Net operating loss carryforwards | 9,800 | |||
Quebec Revenue Agency | ||||
Income Tax [Line Items] | ||||
Net operating loss carryforwards | $ 10,100 |
INCOME TAXES - Summary of Chang
INCOME TAXES - Summary of Changes in Deferred Tax Asset Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred Tax Assets [Roll Forward] | |||
Balance, January 1, | $ 142,749 | $ 132,712 | $ 164,865 |
Increase in deferred tax assets | 31,092 | 10,037 | 27,183 |
Remeasurement in deferred tax assets | 0 | 0 | (59,336) |
Balance, December 31, | $ 173,841 | $ 142,749 | $ 132,712 |
INCOME TAXES - Summary of Cha_2
INCOME TAXES - Summary of Changes in Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits balance, January 1, | $ 462 | $ 162 | $ 187 |
Additions for tax positions - current year | 11 | 0 | 0 |
Additions for tax positions - prior year | 1 | 300 | 162 |
Reductions for tax positions - prior year | (93) | 0 | (187) |
Unrecognized tax benefits balance, December 31, | $ 381 | $ 462 | $ 162 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lessee, Lease, Description [Line Items] | |||
Finance lease, converted to operating lease | $ 82.1 | ||
Operating lease, conversion amount | 39.9 | ||
Short term, finance lease liability, conversion amount | 2.7 | ||
Finance lease liabilities, converted | 93.5 | ||
Short term lease operating lease liabilities | 3.5 | ||
Finance lease, converted to operating lease liabilities | $ 52.9 | ||
Rent expense | $ 8.7 | $ 15.2 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 2 years | ||
Renewal term | 5 years | ||
Termination period | 4 months | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 34 years | ||
Renewal term | 15 years | ||
Termination period | 120 months |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Finance lease cost | |
Amortization of right-of-use assets | $ 16,450 |
Interest on lease liabilities | 28,972 |
Finance lease cost | 45,422 |
Operating lease cost | 8,771 |
Short-term lease cost | 4,251 |
Total lease cost | $ 58,444 |
LEASES - Other Information Rela
LEASES - Other Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jan. 01, 2019 | |
Leases [Abstract] | |||||
Right-of-use assets, operating leases | $ 62,537 | $ 28,500 | |||
Right-of-use assets, finance leases | 141,323 | $ 226,423 | $ 231,123 | $ 238,119 | |
Lease liabilities, operating leases | 81,542 | $ 31,000 | |||
Total lease liabilities | $ 175,021 | ||||
Weighted-average remaining lease term (years), operating leases | 7 years 5 months 5 days | ||||
Weighted-average remaining lease term (years), finance leases | 19 years 4 days | ||||
Weighted-average discount rate, operating leases | 12.40% | ||||
Weighted-average discount rate, finance leases | 15.70% | ||||
Cash Flow, Lessee [Abstract] | |||||
Operating cash paid to settle operating lease liabilities | $ 8,748 | ||||
Right-of-use assets obtained in exchange for lease liabilities | 40,042 | ||||
Operating cash paid for interest | 23,730 | ||||
Right-of-use assets obtained in exchange for lease liabilities | $ 49 |
LEASES - Maturity of Leases (De
LEASES - Maturity of Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Operating Leases, After Adoption of 842: | ||
2020 | $ 18,059 | |
2021 | 18,256 | |
2022 | 17,786 | |
2023 | 16,936 | |
2024 | 14,765 | |
Thereafter | 44,409 | |
Total undiscounted lease payments | 130,211 | |
Less: Imputed interest | 48,669 | |
Total lease liabilities | 81,542 | $ 31,000 |
Finance Leases, After Adoption of 842: | ||
2020 | 24,574 | |
2021 | 26,145 | |
2022 | 24,763 | |
2023 | 23,876 | |
2024 | 23,799 | |
Thereafter | 434,025 | |
Total undiscounted lease payments | 557,182 | |
Less: Imputed interest | 382,161 | |
Total lease liabilities | $ 175,021 |
EQUITY (Details)
EQUITY (Details) | Oct. 23, 2018USD ($)$ / sharesshares | Nov. 16, 2017 | Feb. 22, 2017USD ($)$ / sharesshares | Dec. 31, 2019USD ($) |
Class of Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 5,000,000 | |||
Shares issued (in shares) | shares | 4,210,527 | |||
Stock split ratio | 0.25 | |||
Public Offering | ||||
Class of Stock [Line Items] | ||||
Sale of stock, price per share (in dollars per share) | $ / shares | $ 9.50 | |||
Consideration received on transaction | $ 37,100,000 | |||
Payments of stock issuance costs | $ 500,000 | |||
Securities Purchase Agreement | ||||
Class of Stock [Line Items] | ||||
Sale of stock, price per share (in dollars per share) | $ / shares | $ 7.24 | |||
Payments of stock issuance costs | $ 100,000 | |||
Common stock issuance (in shares) | shares | 5,950,712 | |||
Shares issued (in shares) | $ 43,100,000 | |||
Proceeds used to pay down credit facility | $ 39,200,000 |
RELATED PARTY TRANSACTION (Deta
RELATED PARTY TRANSACTION (Details) - USD ($) | Nov. 01, 2016 | Aug. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Payment For Leased Office Space | |||||
Related Party Transaction [Line Items] | |||||
Payment for leased office space | $ 158,258 | $ 146,571 | $ 138,371 | ||
Furniture and Equipment Located in Office | |||||
Related Party Transaction [Line Items] | |||||
Payments to acquire furniture and fixtures | $ 73,530 | ||||
Broad Valley Capital, LLC | Mr. Aquino | |||||
Related Party Transaction [Line Items] | |||||
Ownership interest | 50.00% | ||||
Broad Valley Capital, LLC | Mr. Diegnan | |||||
Related Party Transaction [Line Items] | |||||
Ownership interest | 50.00% |
UNAUDITED QUARTERLY RESULTS - S
UNAUDITED QUARTERLY RESULTS - Summary of Unaudited Quarterly Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Net revenues | $ 71,650 | $ 72,960 | $ 73,022 | $ 73,873 | $ 77,155 | $ 82,928 | $ 82,253 | $ 73,822 | $ 146,668 | $ 156,075 | $ 219,628 | $ 239,003 | $ 291,505 | $ 316,158 | $ 280,718 |
Costs of sales and services, exclusive of depreciation and amortization | 27,703 | 27,549 | 26,045 | 25,649 | 27,022 | 28,212 | 27,638 | 24,777 | $ 51,694 | $ 52,415 | $ 79,243 | $ 80,628 | 106,946 | 107,649 | 106,217 |
Costs of customer support | 6,450 | 8,145 | 8,726 | 8,790 | 8,305 | 7,984 | 8,841 | 7,387 | 32,111 | 32,517 | 25,757 | ||||
Exit activities, restructuring and impairments | 3,547 | 3,792 | 231 | 1,416 | 2,266 | 2,347 | 826 | (33) | $ 8,986 | $ 5,406 | $ 6,249 | ||||
Net loss attributable to INAP shareholders | $ (76,178) | $ (24,083) | $ (17,982) | $ (20,007) | $ (18,880) | $ (14,840) | $ (13,802) | $ (13,678) | |||||||
Basic and diluted net loss per share (in dollars per share) | $ (3.21) | $ (1.02) | $ (0.76) | $ (0.85) | $ (0.80) | $ (0.73) | $ (0.69) | $ (0.68) | $ (5.81) | $ (2.95) | $ (2.33) |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Details) - Allowance for doubtful accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Fiscal Period | $ 1,547 | $ 1,487 | $ 1,246 |
Charges to Costs and Expense | 899 | 882 | 1,049 |
Deductions | (1,683) | (822) | (808) |
Balance at End of Fiscal Period | $ 763 | $ 1,547 | $ 1,487 |
Uncategorized Items - inap-2019
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 319,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 23,204,000 |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 319,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 23,204,000 |
Accounting Standards Update 2016-02 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (52,000) |
Accounting Standards Update 2016-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (52,000) |