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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2012	Mar. 14, 2013	Jun. 30, 2012
Entity Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY
Trading Symbol	PTGI
Entity Registrant Name	PRIMUS TELECOMMUNICATIONS GROUP INC
Entity Central Index Key	0001006837
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		13,942,676
Entity Public Float			$ 216,195,834

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
NET REVENUE	$ 260,554	$ 291,386	$ 282,017
OPERATING EXPENSES
Cost of revenue (exclusive of depreciation included below)	125,263	143,347	134,892
Selling, general and administrative	102,760	110,711	113,008
Depreciation and amortization	31,023	35,371	40,177
(Gain) loss on sale or disposal of assets	171	(12,948)	(196)
Asset impairment expense	10,000
Total operating expenses	269,217	276,481	287,881
INCOME (LOSS) FROM OPERATIONS	(8,663)	14,905	(5,864)
INTEREST EXPENSE	(23,934)	(30,811)	(35,331)
ACCRETION (AMORTIZATION) ON DEBT PREMIUM/DISCOUNT, net	(201)	(213)	(183)
GAIN (LOSS) ON EARLY EXTINGUISHMENT OR RESTRUCTURING OF DEBT	(21,682)	(7,346)	164
GAIN (LOSS) FROM CONTINGENT VALUE RIGHTS VALUATION	1,292	2,902	(13,737)
INTEREST INCOME AND OTHER INCOME (EXPENSE), net	86	1,265	(167)
FOREIGN CURRENCY TRANSACTION GAIN (LOSS)	2,739	(2,426)	6,570
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE REORGANIZATION ITEMS AND INCOME TAXES	(50,363)	(21,724)	(48,548)
REORGANIZATION ITEMS, net			1
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(50,363)	(21,724)	(48,547)
INCOME TAX BENEFIT (EXPENSE)	4,518	(1,282)	6,515
INCOME (LOSS) FROM CONTINUING OPERATIONS	(45,845)	(23,006)	(42,032)
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, net of tax	(20,551)	(5,482)	19,914
GAIN (LOSS) FROM SALE OF DISCONTINUED OPERATIONS, net of tax	94,265	(4,781)	2,926
NET INCOME (LOSS)	27,869	(33,269)	(19,192)
Less: Net (income) loss attributable to the noncontrolling interest	18	(5,461)	105
NET INCOME (LOSS) ATTRIBUTABLE TO PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED	$ 27,887	$ (38,730)	$ (19,087)
Basic income (loss) per common share:
Income (loss) from continuing operations attributable to Primus Telecommunications Group, Incorporated	$ (3.31)	$ (2.19)	$ (4.31)
Income (loss) from discontinued operations	(1.48)	(0.42)	2.05
Gain (loss) from sale of discontinued operations	6.81	(0.37)	0.30
Net income (loss) attributable to Primus Telecommunications Group, Incorporated	2.02	(2.98)	(1.96)
DILUTED INCOME (LOSS) PER COMMON SHARE:
Income (loss) from continuing operations attributable to Primus Telecommunications Group, Incorporated	(3.31)	(2.19)	(4.31)
Income (loss) from discontinued operations	(1.48)	(0.42)	2.05
Gain (loss) from sale of discontinued operations	6.81	(0.37)	0.30
Net income (loss) attributable to Primus Telecommunications Group, Incorporated	$ 2.02	$ (2.98)	$ (1.96)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic	13,844	12,994	9,721
Diluted	13,844	12,994	9,721
DIVIDENDS DECLARED PER BASIC WEIGHTED AVERAGE COMMON SHARES OUTSTANDING	$ 4.09
AMOUNTS ATTRIBUTABLE TO COMMON SHAREHOLDERS OF PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED
Income (loss) from continuing operations, net of tax	$ (45,827)	$ (28,467)	$ (41,927)
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, net of tax	(20,551)	(5,482)	19,914
GAIN (LOSS) FROM SALE OF DISCONTINUED OPERATIONS, net of tax	94,265	(4,781)	2,926
NET INCOME (LOSS) ATTRIBUTABLE TO PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED	$ 27,887	$ (38,730)	$ (19,087)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
NET INCOME (LOSS)	$ 27,869	$ (33,269)	$ (19,192)
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment	(8,156)	(2,292)	866
COMPREHENSIVE INCOME (LOSS)	19,713	(35,561)	(18,326)
Less: Comprehensive (income) loss attributable to the noncontrolling interest	(711)	(5,504)	(74)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED	$ 19,002	$ (41,065)	$ (18,400)

- Definition

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the reporting entity. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, but excludes any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

+ References + Details

- Definition

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to noncontrolling interests. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

+ References + Details

- Definition

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the economic entity, including both controlling (parent) and noncontrolling interests. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, including any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

+ References + Details

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=7656940&loc=SL4569616-111683

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=18733213&loc=SL4591552-111686

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (a),(c)
-URI http://asc.fasb.org/extlink&oid=18733093&loc=SL4573702-111684

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=18733213&loc=SL4591551-111686

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 29
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph c(1)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 5
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph A1, A4, A5
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
CURRENT ASSETS:
Cash and cash equivalents	$ 23,197	$ 41,052
Accounts receivable (net of allowance for doubtful accounts receivable of $1,771 and $7,552 at December 31, 2012 and 2011, respectively)	17,871	81,609
Prepaid expenses and other current assets	5,792	15,539
Assets held for sale	40,066
Total current assets	86,926	138,200
RESTRICTED CASH	848	11,891
PROPERTY AND EQUIPMENT-Net	65,315	152,180
GOODWILL	60,744	71,902
OTHER INTANGIBLE ASSETS-Net	63,024	135,677
OTHER ASSETS	24,333	33,974
TOTAL ASSETS	301,190	543,824
CURRENT LIABILITIES:
Accounts payable	12,218	46,627
Accrued interconnection costs	2,992	24,103
Deferred revenue	8,821	12,258
Accrued expenses and other current liabilities	20,565	44,384
Accrued income taxes	7,741	10,617
Accrued interest	1,716	5,889
Current portion of long-term obligations	66	1,948
Liabilities held for sale	24,304
Total current liabilities	78,423	145,826
LONG-TERM OBLIGATIONS	127,046	245,814
DEFERRED TAX LIABILITY	11,367	31,311
CONTINGENT VALUE RIGHTS	14,904	16,196
OTHER LIABILITIES	947	2,971
Total liabilities	232,687	442,118
COMMITMENTS AND CONTINGENCIES (See Note 9)
STOCKHOLDERS' EQUITY:
Preferred stock, $0.001 par value-20,000,000 shares authorized; none issued and outstanding
Common stock, $0.001 par value-80,000,000 shares authorized; 13,965,155 and 13,772,646 shares issued and 13,933,529 and 13,741,020 shares outstanding at December 31, 2012 and 2011, respectively	14	14
Additional paid-in capital	98,534	142,796
Accumulated deficit	(23,198)	(51,085)
Treasury stock, at cost-31,626 and 31,626 shares at December 31, 2012 and 2011, respectively	(378)	(378)
Accumulated other comprehensive income (loss)	(6,469)	2,416
Total stockholders' equity before noncontrolling interest	68,503	93,763
Noncontrolling interest		7,943
Total stockholders' equity	68,503	101,706
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 301,190	$ 543,824

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Accounts receivable, allowance for doubtful accounts receivable	$ 1,771	$ 7,552
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	80,000,000	80,000,000
Common stock, shares issued	13,965,155	13,772,646
Common stock, shares outstanding	13,933,529	13,741,020
Treasury stock, shares	31,626	31,626

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Treasury Stock [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Noncontrolling Interest [Member]
Beginning Balance at Dec. 31, 2009	$ 99,909	$ 10	$ 85,533		$ 6,732	$ 4,064	$ 3,570
Beginning Balance, Shares at Dec. 31, 2009		9,600
Share-based compensation expense	1,795		1,795
Proceeds from sale of common stock, net	(344)		(344)
Proceeds from sale of common stock, net, Shares		201
NET INCOME (LOSS)	(19,192)				(19,087)		(105)
Foreign currency translation adjustment	866					687	179
Ending Balance at Dec. 31, 2010	83,034	$ 10	86,984		(12,355)	4,751	3,644
Ending Balance, Shares at Dec. 31, 2010		9,801
Share-based compensation expense	5,218		5,218
Proceeds from sale of common stock, net	1,110	$ 1	1,109
Proceeds from sale of common stock, net, Shares		739
Transaction costs of merger	(1,121)		(1,121)
Stock consideration issued for merger	50,609	$ 3	50,606
Stock consideration issued for merger, shares		3,233
Purchase of treasury stock	$ (378)			$ (378)
Purchase of treasury stock, Shares	32	(32)
Dividend to noncontrolling interest	$ (1,205)						(1,205)
NET INCOME (LOSS)	(33,269)				(38,730)		5,461
Foreign currency translation adjustment	(2,292)					(2,335)	43
Ending Balance at Dec. 31, 2011	101,706	$ 14	142,796	(378)	(51,085)	2,416	7,943
Ending Balance, Shares at Dec. 31, 2011		13,741
Share-based compensation expense	5,194		5,194
Proceeds from sale of common stock, net	124		124
Proceeds from sale of common stock, net, Shares		193
Taxes paid in lieu of shares issued for share-based compensation	(1,653)		(1,653)
Dividends declared	(56,581)		(56,581)
Acquisition of noncontrolling interest	(8,654)		8,654				(8,654)
NET INCOME (LOSS)	27,869				27,887		(18)
Foreign currency translation adjustment	(8,156)					(8,885)	$ 729
Ending Balance at Dec. 31, 2012	$ 68,503	$ 14	$ 98,534	$ (378)	$ (23,198)	$ (6,469)
Ending Balance, Shares at Dec. 31, 2012		13,934

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME (LOSS)	$ 27,869	$ (33,269)	$ (19,192)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Reorganization items, net			(1)
Provision for doubtful accounts receivable	4,819	7,621	8,392
Share-based compensation expense	5,194	5,218	1,635
Depreciation and amortization	43,239	65,148	68,220
(Gain) loss on sale or disposal of assets	(93,175)	(8,163)	(2,542)
Impairment of goodwill and long-lived assets	20,298	14,679	6,161
ACCRETION (AMORTIZATION) ON DEBT PREMIUM/DISCOUNT, net	201	213	183
Change in fair value of Contingent Value Rights	(1,292)	(2,902)	13,737
Deferred income taxes	119	(1,763)	(6,321)
GAIN (LOSS) ON EARLY EXTINGUISHMENT OR RESTRUCTURING OF DEBT	21,682	7,346	(164)
Unrealized foreign currency transaction (gain) loss on intercompany and foreign debt	(324)	1,898	(15,734)
Changes in assets and liabilities, net of acquisitions:
(Increase) decrease in accounts receivable	16,372	(540)	3,405
(Increase) decrease in prepaid expenses and other current assets	(1,397)	720	(1,176)
(Increase) decrease in other assets	5,933	3,550	(2,545)
Increase (decrease) in accounts payable	(8,393)	(9,747)	(8,476)
Increase (decrease) in accrued interconnection costs	(3,397)	(4,309)	(6,167)
Increase (decrease) in accrued expenses, deferred revenue, other current liabilities and other liabilities, net	(9,367)	(9,840)	(331)
Increase (decrease) in accrued income taxes	(942)	3,332	(2,581)
Increase (decrease) in accrued interest	(3,870)	3,740	118
Net cash provided by operating activities before cash reorganization items	23,569	42,932	36,621
Cash effect of reorganization items			(137)
Net cash provided by operating activities	23,569	42,932	36,484
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(31,747)	(31,533)	(26,421)
Sale of property and equipment and other assets	25	14,227	5,598
Cash from disposition of business, net of cash disposed	183,101	1,464	123
Cash acquired from business acquisitions, net of cash paid	(1,707)	9,501
Sales of marketable securities		4,087
(Increase) decrease in restricted cash	66	(78)	(521)
Net cash provided by (used in) investing activities	149,738	(2,332)	(21,221)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long-term obligations		11,625
Principal payments on long-term obligations	(120,763)	(44,970)	(13,866)
Payment of fees on restructuring of debt	(13,455)	(4,940)
Proceeds from sale of common stock, net	124	1,110
Payment of dividends	(55,390)
Payment to noncontrolling interest		(1,205)
Purchase of treasury stock		(378)
Taxes paid in lieu of shares issued for share-based compensation	(1,653)
Net cash used in financing activities	(191,137)	(38,758)	(13,866)
EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(25)	(2,324)	(2,401)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(17,855)	(482)	(1,004)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	41,052	41,534	42,538
CASH AND CASH EQUIVALENTS, END OF PERIOD	23,197	41,052	41,534
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	24,908	26,729	35,576
Cash paid for taxes	2,349	1,594	2,996
Non-cash investing and financing activities:
Capital lease additions		14,874	51
Acquisition purchase consideration recorded in working-capital and long-term liabilities		2,507
Business disposition proceeds in note receivable			$ 3,380
Business acquisition purchased with Company common stock		50,609
Premium associated with debt restructuring converted into new debt	9,084	$ 22,666
Acquisition of noncontrolling interest	$ 8,654

Organization and Business

12 Months Ended

Dec. 31, 2012

Organization and Business

1. ORGANIZATION AND BUSINESS

Primus Telecommunications Group, Incorporated, (“PTGi” or the “Company”) is an integrated facilities-based communications services provider offering a portfolio of international and domestic voice, wireless, Internet, Voice over Internet Protocol (“VoIP”), data, colocation and data center services to customers located primarily in Canada and the United States. The Company’s primary market is Canada, where it has deployed significant network infrastructure. The Company classifies its services into three categories: Growth Services, Traditional Services and International Carrier Services (“ICS”). It provides these services from its three business units: North America Telecom, BLACKIRON Data (previously known as “Data Center”) and ICS. The Company’s two primary reportable operational segments are North America Telecom and BLACKIRON Data.

The Company targets customers with significant telecommunications and data management needs, including small- and medium-sized enterprises, enterprise organizations, multinational corporations, residential customers, and other telecommunication carriers and resellers. We provide services over our global, facilities-based network, and through our Canadian data centers which consists of:

•

8 data centers in 5 cities in Canada (Toronto, Ottawa, London, Edmonton, and Vancouver);

•

13 carrier-grade international gateway and domestic switching systems (the hardware/software devices that direct voice traffic across the network), Internet routers and media gateways in the U.S., Canada, Western Europe and the Asia-Pacific region;

•

approximately 120 interconnection points to our network, or points of presence (“POPs”), within our service regions and other markets;

•

undersea and land-based fiber optic transmission line systems that we own or lease and that carry voice and data traffic across the network;

•

a global network that uses high-bandwidth IP networking; and

•

a global VoIP network based on routers and gateways with an open network architecture which connects our partners in over 150 countries.

The Company is incorporated in the state of Delaware and operates as a holding company of operating subsidiaries primarily in Canada and the United States.

On June 23, 2011, the Company began to trade its common stock on the New York Stock Exchange under the ticker symbol “PTGI.” At that time, trading of its common stock on the OTC Bulletin Board under the ticker symbol “PMUG” ceased.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2012

Summary of Significant Accounting Policies

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation—The consolidated financial statements include the Company’s accounts, its wholly-owned subsidiaries and all other subsidiaries over which the Company exerts control. Prior to July 31, 2012, the Company owned 45.6% of Globility Communications Corporation (“Globility”) through direct and indirect ownership structures. As a result of changes to the Telecommunications Act in Canada, the Company is no longer restricted by Canadian foreign ownership laws. Given these changes, Primus Telecommunications International, Inc. (“PTII”) purchased the remaining 54.4% of Globility on July 31, 2012. Prior to the purchase of the remaining 54.4%, the results of Globility and its subsidiary were consolidated with the Company’s results based on guidance from the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 810, “Consolidation” (“ASC 810”). All intercompany profits, transactions and balances have been eliminated in consolidation.

Discontinued Operations—In the second quarter of 2012, the Company sold its Australian segment and committed to dispose of and is actively soliciting a sale or other disposition of its ICS business unit. During 2011, the Company sold its Brazilian segment and in 2010, the Company classified its European retail operations as discontinued operations.

The Company has applied retrospective adjustments for 2011 and 2010 to reflect the effects of the discontinued operations that occurred during 2012. Accordingly, revenue, costs and expenses of the discontinued operations have been excluded from the respective captions in the consolidated statements of operations. Additionally, the assets and liabilities of ICS have been classified as held for sale assets and liabilities and removed from the specific line items on the consolidated balance sheet as of December 31, 2012. See Note 18—“Discontinued Operations,” for further information regarding these transactions.

Revenue Recognition and Deferred Revenue—Net revenue is derived from carrying a mix of business, residential and carrier long-distance traffic, data and Internet traffic, and also from the provision of hosting, local and wireless services.

For certain voice services, net revenue is earned based on the number of minutes during a call and is recorded upon completion of a call. Revenue for a period is calculated from information received through the Company’s network switches. Customized software has been designed to track the information from the switch and analyze the call detail records against stored detailed information about revenue rates. This software provides the Company the ability to do a timely and accurate analysis of revenue earned in a period. Separate prepaid services software is used to track additional information related to prepaid service usage such as activation date, monthly usage amounts and expiration date. Revenue on these prepaid services is recognized as service is provided until expiration, when all unused minutes, which are no longer available to the customers, are recognized as revenue.

Net revenue is also earned on a fixed monthly fee basis for unlimited local and long-distance voice plans and for the provision of data/Internet services (including retail VoIP), hosting, and colocation. Data/Internet services include monthly fees collected for the provision of dedicated and dial-up access at various speeds and bandwidths. These fees are recognized as access is provided on a monthly basis. Additionally, service activation and installation fees are deferred and amortized over the longer of the average customer life or the contract term. The Company records payments received in advance for services and services to be provided under contractual agreements, such as Internet broadband, dial-up access, hosting, and colocation, as deferred revenue until such related services are provided.

In the United States, we charge customers Federal Universal Service Fund (“USF”) fees. We recognize revenue on a gross basis for USF and related fees. We record these fees as revenue when billed.

Net revenue represents gross revenue, net of allowance for doubtful accounts receivable, service credits and service adjustments.

Presentation of Taxes Collected—The Company reports any tax assessed by a governmental authority that is directly imposed on a revenue-producing transaction between the Company and a customer (including sales, use, value-added and some excise taxes) on a net basis (excluded from revenues).

Cost of Revenue—Cost of revenue includes network costs that consist of access, transport and termination costs. The majority of the Company’s cost of revenue is variable, primarily based upon minutes of use, with transmission and termination costs being the most significant expense. Cost of revenue also includes fees such as Federal USF fees. Such costs are recognized when incurred in connection with the provision of telecommunications services.

Foreign Currency Transactions—Foreign currency transactions are transactions denominated in a currency other than a subsidiary’s functional currency. A change in the exchange rates between a subsidiary’s functional currency and the currency in which a transaction is denominated increases or decreases the expected amount of functional currency cash flows upon settlement of the transaction. That increase or decrease in expected functional currency cash flows is reported by the Company as a foreign currency transaction gain (loss). The primary component of the Company’s foreign currency transaction gain (loss) is due to agreements in place with certain subsidiaries in foreign countries regarding intercompany transactions. The Company anticipates repayment of these transactions in the foreseeable future, and recognizes the realized and unrealized gains or losses on these transactions that result from foreign currency changes in the period in which they occur as foreign currency transaction gain (loss).

Income Taxes—The Company recognizes income tax expense for financial reporting purposes following the asset and liability approach for computing deferred income taxes. Under this method, the deferred tax assets and liabilities are determined based on the difference between financial reporting and tax bases of assets and liabilities based on enacted tax rates. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company applies the uncertain tax position-related provisions of ASC No. 740, “Income Taxes” (“ASC 740”) (formerly FIN No. 48, “Accounting for Uncertainty in Income Taxes”). These provisions clarify the accounting for uncertainty in income taxes recognized in the financial statements in accordance with ASC 740.

Foreign Currency Translation—The assets and liabilities of the Company’s foreign subsidiaries are translated at the exchange rates in effect on the reporting date. Income and expenses are translated at the average exchange rate during the period. The net effect of such translation gains and losses are reflected within accumulated other comprehensive income (loss) in the stockholders’ equity section of the consolidated balance sheet.

Cash and Cash Equivalents—Cash and cash equivalents are comprised principally of amounts in money market accounts, operating accounts, certificates of deposit, and overnight repurchase agreements with original maturities of three months or less.

Restricted Cash—Restricted cash consists of bank guarantees and certificates of deposit utilized to support letters of credit and contractual obligations.

Accounts Receivable—Accounts receivable is stated at amounts due from customers net of an allowance for doubtful accounts. Our allowance for doubtful accounts considers historical experience, the age of certain receivable balances, current economic conditions and other factors that may affect the counterparty’s ability to pay.

Advertising Costs—In accordance with ASC No. 720-35, “Other Expenses—Advertising,” costs for advertising are expensed as incurred. Advertising expense for the years ended December 31, 2012, 2011 and 2010 was $5.3 million, $9.0 million and $8.0 million, respectively.

Property and Equipment—Property and equipment are recorded at cost less accumulated depreciation, which is provided on the straight-line method over the estimated useful lives of the assets. Cost includes major expenditures for improvements and replacements which extend useful lives or increase capacity of the assets as well as expenditures necessary to place assets into readiness for use. Expenditures for maintenance and repairs are expensed as incurred. The estimated useful lives of property and equipment are as follows: network equipment—5 to 8 years, fiber optic and submarine cable—8 to 25 years, furniture and equipment—5 years, and leasehold improvements and leased equipment—shorter of lease or useful life. Costs for internal use software that are incurred in the preliminary project stage and in the post-implementation stage are expensed as incurred. Costs incurred during the application development stage are capitalized and amortized over the estimated useful life of the software.

Fiber Optic and Submarine Cable Arrangements—The Company obtains capacity on certain fiber optic and submarine cables under three types of arrangements. The Indefeasible Right of Use (“IRU”) basis provides the Company the right to use a cable for the estimated economic life of the asset according to the terms of the IRU agreement with most of the rights and duties of ownership. The Minimum Assignable Ownership Units (“MAOU”) basis provides the Company an ownership interest in the fiber optic cable with certain rights to control and to manage the facility. The Company accounts for both IRU and MAOU agreements under network equipment and depreciates the recorded asset over the term of the agreement which is generally 25 years. The Company also enters into shorter-term arrangements with other carriers which provide the Company the right to use capacity on a cable but without any rights and duties of ownership. Under these shorter-term arrangements, the costs are expensed in the period the services are provided.

Business Combinations—The Company is required to allocate the purchase price of acquired companies to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. This valuation requires management to make significant estimates and assumptions, especially with respect to intangible assets associated with such assets. Critical estimates in valuing certain of the intangible assets and subsequently assessing the realizability of such assets include, but are not limited to, future expected cash flows from the revenues, customer contracts and discount rates. Management’s estimates of fair value are based on assumptions believed to be reasonable but which are inherently uncertain and unpredictable. Assumptions may be incomplete or inaccurate and unanticipated events and circumstances may occur.

Other estimates associated with the accounting for these acquisitions and subsequent assessment of impairment of the assets may change as additional information becomes available regarding the assets acquired and liabilities assumed.

Goodwill and Other Intangible Assets—Under ASC No. 350, “Intangibles—Goodwill and Other” (“ASC 350”), goodwill and indefinite lived intangible assets are not amortized but are reviewed annually for impairment, or more frequently, if impairment indicators arise. Intangible assets that have finite lives are amortized over their estimated useful lives and are subject to the provisions of ASC No. 360, “Property, Plant and Equipment” (“ASC 360”).

Goodwill impairment is tested at least annually (October 1^st) or when factors indicate potential impairment using a two-step process that begins with an estimation of the fair value of each reporting unit. Step 1 is a screen for potential impairment pursuant to which the estimated fair value of a reporting unit is compared to its carrying value. The Company estimates the fair values of each reporting unit by a combination of (i) estimation of the discounted cash flows of each of the reporting units based on projected earnings in the future (the income approach) and (ii) a comparative analysis of revenue and EBITDA multiples of public companies in similar markets (the market approach). If there is a deficiency (the estimated fair value of a reporting unit is less than its carrying value), a Step 2 test is required.

Step 2 measures the amount of impairment loss, if any, by comparing the implied fair value of the reporting unit’s goodwill with its carrying amount. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination is determined; i.e., through an allocation of the fair value of a reporting unit to all of the assets and liabilities of that unit as if the reporting unit had been acquired in a business combination. If the carrying amount of the reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss shall be recognized in an amount equal to that excess.

The Company also may utilize the provisions of Accounting Standards Update (“ASU”) No. 2011-08, “Testing Goodwill for Impairment” (“ASU 2011-08”), which allows the Company to use qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount.

The Company’s reporting units in 2011 were Australia, Canada and US/ICS. In May 2012, the Australian reporting unit was sold, and the reporting units were Canada and US/ICS. Subsequent to classifying ICS as a discontinued operation in the second quarter of 2012, the remaining reporting units are Canada and US.

Estimating the fair value of a reporting unit requires various assumptions including projections of future cash flows, perpetual growth rates and discount rates. The assumptions about future cash flows and growth rates are based on the Company’s assessment of a number of factors, including the reporting unit’s recent performance against budget, performance in the market that the reporting unit serves, and industry and general economic data from third party sources. Discount rate assumptions are based on an assessment of the risk inherent in those future cash flows. Changes to the underlying businesses could affect the future cash flows, which in turn could affect the fair value of the reporting unit.

Intangible assets not subject to amortization consist of certain trade names. Such indefinite lived intangible assets are tested for impairment annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment test shall consist of a comparison of the fair value of an intangible asset with its carrying amount. If the carrying amount of the intangible asset exceeds its fair value, an impairment loss shall be recognized in an amount equal to the excess.

Intangible assets subject to amortization consist of certain trade names and customer relationships. These finite lived intangible assets are amortized based on their estimated useful lives. Such assets are subject to the impairment provisions of ASC 360, wherein impairment is recognized and measured only if there are events and circumstances that indicate that the carrying amount may not be recoverable. The carrying amount is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset group. An impairment loss is recorded if after determining that it is not recoverable, the carrying amount exceeds the fair value of the asset.

In addition to the foregoing, the Company reviews its goodwill and intangible assets for possible impairment whenever events or circumstances indicate that the carrying amounts of assets may not be recoverable. The factors that the Company considers important, and which could trigger an impairment review, include, but are not limited to: a significant decline in the market value of our common stock or debt securities for a sustained period; a material adverse change in economic, financial market, industry or sector trends; a material failure to achieve operating results relative to historical levels or projected future levels; and significant changes in operations or business strategy.

The current year impairment analysis and carrying values by reporting unit of the goodwill and other indefinite-lived intangible assets are disclosed in Note 5—“Goodwill and Other Intangible Assets.”

Valuation of Long-lived Assets (Held and Used)—The Company reviews long-lived assets whenever events or changes indicate that the carrying amount of an asset may not be recoverable. In making such evaluations, the Company compares the expected undiscounted future cash flows to the carrying amount of the assets. If the total of the expected undiscounted future cash flows is less than the carrying amount of the assets, the Company is required to make estimates of the fair value of the long-lived assets in order to calculate the impairment loss equal to the difference between the fair value and carrying value of the assets.

The Company makes significant assumptions and estimates in this process regarding matters that are inherently uncertain, such as determining asset groups and estimating future cash flows, remaining useful lives, discount rates and growth rates. The resulting undiscounted cash flows are projected over an extended period of time, which subjects those assumptions and estimates to an even larger degree of uncertainty. While the Company believes that its estimates are reasonable, different assumptions could materially affect the valuation of the long-lived assets. The Company derives future cash flow estimates from its historical experience and its internal business plans, which include consideration of industry trends, competitive actions, technology changes, regulatory actions, available financial resources for marketing and capital expenditures and changes in its underlying cost structure.

The Company has concluded that it has one asset group: the network. This is due to the nature of its telecommunications network which utilizes all of the points of presence (POPs), switches, cables and various other components throughout the network to form seamlessly the telecommunications gateway over which its products and services are carried for any given customer’s phone call or data or Internet transmission. Furthermore, outflows to many of the external network providers are not separately assignable to revenue inflows for any phone call or service plan.

The Company makes assumptions about the remaining useful life of its long-lived assets. The assumptions are based on the average life of its historical capital asset additions, its historical asset purchase trend and that its primary assets, its network switches, have an 8-year life. Because of the nature of its industry, the Company also assumes that the technology changes in the industry render all equipment obsolete with no salvage value after their useful lives. In certain circumstances in which the underlying assets could be leased for an additional period of time, the Company includes such estimated cash flows in its estimate.

The estimate of the appropriate discount rate to be used to apply the present value technique in determining fair value was the Company’s weighted average cost of capital which is based on the effective rate of its long-term debt obligations at the current market values as well as the current volatility and trading value of the Company’s common stock.

Valuation of Long-lived Assets (Held for Sale)—In conjunction with the Company’s commitment to dispose of its ICS business, it classified the net assets of ICS as held for sale and is required to measure them at the lower of carrying value or fair value less costs to sell.

The Company makes significant assumptions and estimates in the process of determining fair value regarding matters that are inherently uncertain, such as estimating future cash flows, discount rates and growth rates. The resulting cash flows are projected over an extended period of time, which subjects those assumptions and estimates to an even larger degree of uncertainty. While the Company believes that its estimates are reasonable, different assumptions could materially affect the valuation of the net assets of ICS.

The current year analysis of carrying value and fair value less costs to sell is disclosed in Note 18—“Discontinued Operations.”

Deferred Financing Costs—Deferred financing costs incurred in connection with financing arrangements are reflected within other assets and are amortized over the life of the respective financing arrangements using the effective interest method. As the Company completes debt transactions, corresponding amounts of deferred financing costs are written-off in determining the gain or loss on early extinguishment or restructuring of debt.

Derivative Instruments—Pursuant to the terms of the Company’s 2009 bankruptcy reorganization (the “Reorganization Plan”), the Company issued to holders of the Company’s pre-Reorganization Plan common stock contingent value rights (“CVRs”) to receive shares of Company common stock (subject to adjustment, the “CVR Shares”) in an original aggregate amount of up to 2,665,000 shares. In connection with the issuance of the CVRs, the Company entered into a Contingent Value Rights Distribution Agreement (the “CVR Agreement”), in favor of holders of CVRs thereunder, dated as of July 1, 2009. As a result of the special cash Dividends discussed in Note 10—“Stockholders’ Equity,” antidilution provisions in the CVR Agreement were triggered and the maximum aggregate number of CVR Shares issuable with respect to the CVRs was adjusted upward from 2,665,000 shares to 3,657,157 shares while the strike price with respect to the CVRs was adjusted downward from $35.95 to $26.20.

Due to the nature of the CVRs, the Company accounted for the instrument in accordance with ASC No. 815, “Derivatives and Hedging” (“ASC 815”), as well as related interpretations of this standard. The Company determined the CVRs to be derivative instruments to be accounted for as liabilities and marked to fair value at each balance sheet date. Upon issuance, the Company estimated the fair value of its CVRs using a pricing model and consequently recorded a liability of $2.6 million in the balance sheet caption “other liabilities” as part of fresh-start accounting. Post-issuance change in value is reflected in the consolidated statements of operations as gain (loss) from contingent value rights valuation. The Company’s estimates of fair value of its CVRs are correlated to and reflective of PTGi’s common stock price trends; in general, as the value of PTGi’s common stock increases, the estimated fair value of the CVRs also increases and, as a result, the Company recognizes a change in value of its CVRs as loss from contingent value rights valuation. Conversely and also in general, as the value of PTGi’s common stock decreases, the estimated fair value of the CVRs also decreases and as a result the Company recognizes a change in value of the CVRs as gain from contingent value rights valuation. See Note 8—“Fair Value of Financial Instruments and Derivatives.”

Share-Based Compensation—The Company accounts for share-based compensation under ASC No. 718, “Compensation—Stock Compensation” (formerly SFAS No. 123(R), “Share-Based Payments”) (“ASC 718”), which addresses the accounting for share-based payment transactions whereby an entity receives employee services in exchange for equity instruments, including stock options and restricted stock units. ASC 718 generally requires that share-based compensation be accounted for using a fair-value based method. The Company records share-based compensation expense for all new and unvested stock options that are ultimately expected to vest as the requisite service is rendered. The Company issues new shares of common stock upon the exercise of stock options.

The Company elected to adopt the alternative transition method for calculating the tax effects of share-based compensation. The alternative transition method includes simplified methods to determine the beginning balance of the additional paid in capital (“APIC”) pool related to the tax effects of share-based compensation and to determine the subsequent impact on the APIC pool and the statement of cash flows of the tax effects of share-based awards that were fully vested and outstanding upon the adoption of ASC 718.

The Company uses a Black-Scholes option valuation model to determine the fair value of share-based compensation under ASC 718. The Black-Scholes model incorporates various assumptions including the expected term of awards, volatility of stock price, risk-free rates of return and dividend yield. The expected term of an award is no less than the option vesting period and is based on the Company’s historical experience. Expected volatility is based upon the historical volatility of the Company’s stock price. The risk-free interest rate is approximated using rates available on U.S. Treasury securities with a remaining term similar to the option’s expected life. The Company uses a dividend yield of zero in the Black-Scholes option valuation model as it does not anticipate paying cash dividends in the foreseeable future. Share-based compensation is recorded net of expected forfeitures.

Use of Estimates—The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of net revenue and expenses during the reporting period. Actual results may differ from these estimates. Significant estimates include allowance for doubtful accounts receivable, accrued interconnection cost disputes, the fair value of derivatives, market assumptions used in estimating the fair values of certain assets and liabilities, the calculation used in determining the fair value of the PTGi’s stock options required by ASC 718, income taxes and various tax contingencies.

Estimates of fair value represent the Company’s best estimates developed with the assistance of independent appraisals or various valuation techniques and, where the foregoing have not yet been completed or are not available, industry data and trends and by reference to relevant market rates and transactions. The estimates and assumptions are inherently subject to significant uncertainties and contingencies beyond the control of the Company. Accordingly, the Company cannot provide assurance that the estimates, assumptions, and values reflected in the valuations will be realized, and actual results could vary materially. Any adjustments to the recorded fair values of these assets and liabilities, as related to business combinations and subsequent impairment assessment of goodwill, may impact the amount of recorded goodwill.

Concentration of Credit Risk—Financial instruments that potentially subject the Company to concentration of credit risk principally consist of trade accounts receivable. The Company performs ongoing credit evaluations of its larger carrier and retail business customers but generally does not require collateral to support customer receivables. The Company maintains its cash with high quality credit institutions, and its cash equivalents are in high quality securities.

Income (Loss) Per Common Share—Basic income (loss) per common share is computed using the weighted average number of shares of common stock outstanding during the year. Diluted income (loss) per common share is computed using the weighted average number of shares of common stock, adjusted for the dilutive effect of potential common stock and related income from continuing operations, net of tax. Potential common stock, computed using the treasury stock method or the if-converted method, includes options, restricted stock units, warrants and convertible debt securities.

Reclassification—Certain previous year amounts have been reclassified to conform with current year presentations, as related to the reporting of the Company’s discontinued operations. In addition, certain amounts in selling, general and administrative expense related to our BLACKIRON Data operating segment were reclassified to cost of revenue as part of the Company’s new operating segment structure discussed in Note 14—“Operating Segment and Related Information.”

Newly Adopted Accounting Principles

In May 2011, an update was issued to the Fair Value Measurement Topic ASC No. 820, ASU 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs,” which provides guidance on how to measure fair value and on what disclosures to provide about fair value measurements. It seeks to develop a single, converged fair value framework between the FASB and the International Financial Reporting Standards (“IFRS”) Board. On January 1, 2012, the Company adopted this update, which did not have a material impact on the consolidated financial statements.

In June 2011, an update was issued to the Comprehensive Income Topic ASC No. 220, ASU 2011-05, “Presentation of Comprehensive Income,” which provides guidance to all entities that report items of other comprehensive income, in any period presented. Under the amendments in this update, an entity has the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. In a single continuous statement, the entity is required to present the components of net income and total net income, the components of other comprehensive income and a total for other comprehensive income, along with the total of comprehensive income in that statement. In the two-statement approach, an entity is required to present components of net income and total net income in the statement of net income. The statement of other comprehensive income should immediately follow the statement of net income and include the components of other comprehensive income and a total for other comprehensive income, along with a total for comprehensive income. ASU 2011-05 also contains a provision that requires the entity to present on the face of the financial statements reclassification adjustments for items that are reclassified from other comprehensive income to net income in the statements where the components of net income and the components of other comprehensive income are presented. In December 2011, an update was issued to the Comprehensive Income Topic ASC No. 220, ASU 2011-12, “Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05,” which indefinitely deferred the requirement to present the reclassification adjustments out of other comprehensive income. On January 1, 2012, the Company adopted these updates, which did not have a material impact on the consolidated financial statements.

In September 2011, an update was issued to the Intangibles—Goodwill and Other Topic ASC No. 350, ASU 2011-08, “Testing Goodwill for Impairment,” which provides guidance to all entities, both public and nonpublic, that have goodwill reported in their financial statements. Under the amendments in this update, an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. However, if an entity concludes otherwise, then it is required to perform the first step of the two-step impairment test by calculating the fair value of the reporting unit and comparing the fair value with the carrying amount of the reporting unit. If the carrying amount of a reporting unit exceeds its fair value, then the entity is required to perform the second step of the goodwill impairment test to measure the amount of the impairment loss. An entity has the option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the first step of the two-step goodwill impairment test. An entity may resume performing the qualitative assessment in any subsequent period. On January 1, 2012, the Company adopted this update, which did not have a material impact on the consolidated financial statements.

New Accounting Pronouncements

In December 2011, an update was issued to the Balance Sheet Topic ASC No. 210, ASU 2011-11, “Disclosures about Offsetting Assets and Liabilities,” which contains new disclosure requirements regarding the nature of an entity’s right of setoff and related arrangements associated with its financial instruments and derivative instruments. The new disclosures are designed to make financial statements that are prepared under U.S. GAAP more comparable to those prepared under IFRSs. Generally, it is more difficult to qualify for offsetting under IFRSs than it is under U.S. GAAP because under U.S. GAAP certain derivative and repurchase agreement arrangements are granted exceptions from the general offsetting model. As a result, entities with significant financial instrument and derivative portfolios that report under IFRSs typically present positions on their balance sheets that are significantly larger than those of entities with similarly sized portfolios whose financial statements are prepared in accordance with U.S. GAAP. To facilitate comparison between financial statements prepared under U.S. GAAP and IFRSs, the new disclosures will give financial statement users information about both gross and net exposures. The Company’s effective date for adoption is January 1, 2014 and it does not foresee this accounting update having a material effect on its consolidated financials in future periods, although that could change.

In July 2012, an update was issued to the Intangibles—Goodwill and Other Topic ASC No. 350, ASU 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment,” which provides guidance to all entities, both public and nonpublic, that have indefinite-lived intangible assets, other than goodwill, reported in their financial statements. Under the amendments in this update, an entity has the option first to assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the indefinite-lived intangible asset is impaired. If, after assessing the totality of events and circumstances, an entity concludes that it is not more likely than not that the indefinite-lived intangible asset is impaired, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying amount. An entity has the option to bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to performing the quantitative impairment test. An entity will be able to resume performing the qualitative assessment in any subsequent period. The Company’s effective date for adoption is January 1, 2013 and it does not foresee this accounting update having a material effect on its consolidated financials in future periods, although that could change.

Acquisitions

12 Months Ended

Dec. 31, 2012

Acquisitions

3. ACQUISITIONS

Arbinet Corporation Acquisition

On February 28, 2011, the Company completed its acquisition of Arbinet Corporation, a Delaware corporation (“Arbinet”). Arbinet is a provider of wholesale telecom exchange services to carriers, and the Company purchased Arbinet to supplement its existing ICS operations. Pursuant to the terms of the Agreement and Plan of Merger dated as of November 10, 2010, as amended by Amendment No. 1 dated December 14, 2010, by and among PTGi, PTG Investments, Inc., a Delaware corporation and a wholly-owned subsidiary of PTGi (“Merger Sub”), and Arbinet, Merger Sub merged with and into Arbinet with Arbinet surviving the merger as a wholly-owned subsidiary of PTGi.

Upon the closing of the merger, each share of Arbinet common stock was cancelled and converted into the right to receive 0.5817 shares of PTGi common stock. Arbinet stockholders received cash in lieu of any fractional shares of PTGi common stock that they were otherwise entitled to receive in the merger. In connection with the merger, PTGi issued 3,232,812 shares of its common stock to former Arbinet stockholders in exchange for their shares of Arbinet common stock, and reserved for issuance approximately 95,000 additional shares of its common stock in connection with its assumption of Arbinet’s outstanding options, warrants, stock appreciation rights and restricted stock units. The components of the consideration transferred follow (in thousands):


Consideration attributable to stock issued (1)	$	50,432
Consideration attributable to earned replaced equity awards (2)		177

Total consideration transferred	$	50,609

(1)	The fair value of PTGi’s common stock on the acquisition date was $15.60 per share based on the closing value of its common stock traded on the over-the-counter bulletin board. PTGi issued 3,232,812 shares of stock to effect this merger.

(2)

The portion of the acquisition fair value of Arbinet converted stock-based awards attributable to pre-merger employee service was part of consideration. At the merger closing 50% of the unvested and outstanding Arbinet awards vested. The portion of the fair value-based measure of the replaced awards assigned to past services (including those for which vesting accelerated at the merger closing and those that were already vested at the date of the merger closing) was included in the consideration transferred.

Recording of Assets Acquired and Liabilities Assumed

The transaction was accounted for using the acquisition method of accounting which requires, among other things, that assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date.

Estimates of fair value included in the financial statements, in conformity with ASC No. 820, “Fair Value Measurement” (“ASC 820”), represent the Company’s best estimates and valuations developed with the assistance of independent appraisers. The estimates and assumptions are inherently subject to significant uncertainties and contingencies beyond the control of the Company. Accordingly, the Company cannot provide assurance that the estimates, assumptions, and values reflected in the valuations will be realized, and actual results could vary materially. In accordance with ASC No. 805, “Business Combinations” (“ASC 805”), the allocation of the consideration value was completed on February 28, 2012, the one year anniversary of the date of the acquisition.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed (in thousands):


Cash and cash equivalents	$	12,415
Marketable securities		4,044
Accounts receivable		16,205
Other current assets		884
Property and equipment (1)		17,336
Intercompany receivable		309
Goodwill (2)		20,585
Customer list (3)		900
Exchange license (3)		2,800
Other intangible assets (3)		700
Other assets		1,738

Total assets acquired	$	77,916

Trade payables	$	18,311
Accrued interconnection costs		105
Accrued liabilities		3,122
Other current liabilities		3,082
Current portion of long-term obligations		68
Long-term obligations		99
Other long-term liabilities		2,520

Total liabilities assumed	$	27,307

Net assets acquired	$	50,609

(1)

Property and equipment were measured primarily using an income approach. The fair value measurements of the assets were based, in part, on significant inputs not observable in the market and thus represent a Level 3 measurement. The significant inputs included Arbinet resources, assumed future revenue profiles, weighted average cost of capital of 13.0%, gross margin of 7.2% and assumptions on the timing and amount of future development and operating costs. The property and equipment additions were segmented as part of a new stand-alone reporting unit which will be aggregated with ICS when integration activities are substantially complete.

(2)

Goodwill was the excess of the consideration transferred over the net assets recognized and represents the future economic benefits, primarily as a result of expected synergies expected from the combination, arising from other assets acquired that could not be individually identified and separately recognized. Goodwill was recognized as part of the US/ICS reporting unit. Goodwill is not amortized and is not deductible for tax purposes.

(3)

Identifiable intangible assets and other assets were measured using a combination of an income approach and a market approach (Level 3). Identifiable intangible assets are subject to amortization and the customer list and exchange license are being amortized over 15 years and 10 years, respectively.

Unlimitel Inc. and HMNET Technologies, Inc. Acquisitions

During the first quarter of 2011 one of the Company’s Canadian subsidiaries completed the acquisitions of the customer base and fixed assets of Unlimitel Inc. (“Unlimitel”) and HMNet Technologies Inc. (“HMNet”), both commercial VoIP providers. The total consideration transferred to complete the acquisitions was approximately $3.1 million. The cash payments associated with the acquisitions are as follows: $1.0 million was paid upon closing, $0.3 million was paid during the second quarter of 2011, $1.4 million was paid during the first quarter of 2012, and $0.4 million is payable upon the two-year anniversary of the closing date.

The table below sets forth the final Unlimitel and HMNet purchase price allocation (in thousands). The purchase price allocation resulted in goodwill of $1.8 million. The valuation of intangible assets was evaluated using Level 3 inputs.


Cash and cash equivalents	$	331
Property and equipment		136
Identifiable intangible asset:
Customer relationships		1,229
Goodwill		1,842
Other assets and liabilities, net		(119	)
Deferred income tax		(318	)

Allocation of purchase consideration	$	3,101

The customer relationships above are subject to amortization and have a useful life of five years. The useful life of the customer relationships was estimated at the time of the acquisition based on the period of time from which the Company expects to derive benefits from the customer relationships. The identifiable intangible assets are amortized using the pattern of benefits method, which results in accelerated amortization in the early periods of the useful life.

Goodwill from the Company’s Unlimitel and HMNet acquisitions was the excess of the consideration transferred over the net assets recognized, which represents the value of acquired employees along with the expected synergies from the combination of Unlimitel Inc. and HMNet Technologies Inc. and the Company’s operations. Goodwill resulting from the acquisition of Unlimitel Inc. and HMNet Technologies Inc. is not deductible for tax purposes.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1490-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1392-128463

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e7008-128479

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1486-128463

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e6927-128479

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4845-128472

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1500-128463

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1524-128463

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e7000-128479

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4922-128472

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4926-128472

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
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-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1383-128463

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 88-16
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph F4
-Subparagraph e
-Appendix F

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141
-Paragraph 51, 52
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 67-73
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Property and Equipment

12 Months Ended

Dec. 31, 2012

Property and Equipment

4. PROPERTY AND EQUIPMENT

Property and equipment consisted of the following (in thousands):


	December 31,			December 31,
	2012			2011
Network equipment	$	115,315		$	246,889
Furniture and equipment		4,652			4,453
Leasehold improvements		3,348			11,299
Construction in progress		6,291			4,800

Subtotal		129,606			267,441
Less: accumulated depreciation		(64,291	)		(115,261	)

Total property and equipment, net	$	65,315		$	152,180

At December 31, 2012 and 2011, total equipment under capital lease and vendor financing obligations consisted of $3.8 million and $18.3 million of network and peripheral equipment, respectively, with accumulated depreciation of $2.2 million and $2.8 million, respectively.

Depreciation and amortization expense for property and equipment for the years ended December 31, 2012, 2011 and 2010, including equipment under capital leases and vendor financing obligations, was $19.6 million, $18.9 million and $19.8 million, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2012

Goodwill and Other Intangible Assets

5. GOODWILL AND OTHER INTANGIBLE ASSETS

The Company’s intangible assets not subject to amortization consisted of the following (in thousands):


	December 31, 2012		December 31, 2011
Goodwill	$	60,744	$	71,902
Trade Names	$	27,000	$	76,900

Goodwill

On February 28, 2011, the Company acquired Arbinet for stock consideration of $50.6 million in a stock for stock transaction. See Note 3—“Acquisitions.” Because the Company’s stock price rose significantly between the signing of the merger agreement on November 10, 2010 and the close of the merger on February 28, 2011 from a closing price of $9.57 per share to $15.60 per share, the fixed-share consideration fair value also rose. Because Arbinet’s enterprise value may not have increased within similar levels over that time period, the Company determined that a goodwill impairment assessment was immediately necessary post-merger, at the level of the reporting unit into which Arbinet was integrated. This resulted in the Company performing an interim goodwill impairment assessment, and consequently, recording an impairment charge of $14.7 million. As the impairment charge is related to ICS, it is classified within Income (loss) from discontinued operations, net of tax on the consolidated statements of operations.

The Company considered its commitment to dispose of the ICS business and the classification of its net assets as held for sale as a triggering event and tested the goodwill of the US/ICS reporting unit for impairment in June 2012. Although step one failed, the implied goodwill calculated in step two was sufficient to cover the recorded goodwill and no impairment charge was recorded.

As of the most recent annual test conducted on October 1, 2012, the Company performed a goodwill impairment test for the US reporting unit. Based on the results of the step one test, the Company determined that the fair value was in excess of the carrying value and a step two test was not required. To facilitate the Company’s calculation of the fair value of the reporting unit, the valuation methods included a discounted cash flow analysis, considering a 14.5% weighted average costs of capital and market-based multiples of projected earnings for its terminal value. A key assumption in the fair value calculations is the Company’s future operating performance and resulting cash flow, which are inherently subject to significant uncertainties and contingencies and are based on management’s best estimates at the date of measurement. Potential events which could have a negative effect on this and other key assumptions include competitive actions, technological developments, regulatory actions and currency movements.

For the annual test conducted on October 1, 2012 of the Canada reporting unit, the Company utilized the provisions of ASU 2011-08, which allows the Company to use qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of the Canada reporting unit is less than its carrying amount. The Company analyzed current projections for future performance, as well as prior projections compared to current year results. The Company did not identify any material economic conditions, industry or market considerations or cost factors that would significantly alter the current carrying value or fair value of the Canada reporting unit. In addition, the executive management team of the Canada reporting unit has remained static over the past year. All of these factors, combined with an immaterial change to the carrying value and a prior year valuation that resulted in a significant excess of fair value over the carrying value for step one, led to the conclusion that it is not more likely than not that the fair value of the Canada reporting unit is less than its carrying amount.

In conjunction with the Company’s commitment to dispose of its ICS business in June 2012, the Company allocated, based on its relative fair value to the US reporting unit in total, $9.3 million of goodwill to the long-lived assets of ICS, classified as held for sale (see Note 18—“Discontinued Operations”).

The changes in the carrying amount of goodwill by reporting unit for the years ended December 31, 2012 and 2011 are as follows (in thousands):


	United States			Canada			Australia			Brazil			Total
Balance as of December 31, 2010	$	29,960		$	31,775		$	1,950		$	46		$	63,731
Effect of change in foreign currency exchange rates		—			(798	)		(13	)		(4	)		(815	)
Acquisition (disposition) of business		21,865			1,842			—			(42	)		23,665
Accumulated impairment loss		(14,679	)		—			—			—			(14,679	)

Balance as of December 31, 2011	$	37,146		$	32,819		$	1,937		$	—		$	71,902

Effect of change in foreign currency exchange rates		—			863			(4	)		—			859
Acquisition (disposition) of business		(1,280	)		480			(1,933	)		—			(2,733	)
Allocation to disposal group		(9,284	)		—			—			—			(9,284	)

Balance as of December 31, 2012	$	26,582		$	34,162		$	—		$	—		$	60,744

Trade Names

In conjunction with the sale of the Australian segment in the second quarter of 2012, the Company also assigned the trademarks owned by the Australian segment to M2 Telecommunications Group Ltd. Pursuant to the trademark assignment deed, entered into as part of the transaction, the assignee is restricted from using the specified trademarks in any jurisdiction outside of Australia and New Zealand where the Company continues to hold existing rights. The value of the assigned trademarks was $39.2 million, less a deferred tax liability of $15.2 million.

As of the most recent annual test conducted on October 1, 2012, the Company evaluated the US trade name for impairment. In performing the impairment test for the US trade name, the Company estimated the fair value for the trade name based on projected revenues and the associated royalties earned from the use of the “Primus Telecommunications” trade name, and compared that to the carrying value of the trade name. The Company recorded an impairment charge of $10.0 million. The impairment charge is included in Asset impairment expense on the Company’s consolidated statements of operations.

The primary driver for the decline in the estimated fair value of the US trade name was the absence of future royalties on revenue generated by the BLACKIRON Data operating segment of the Canada reporting unit. The US trade name of “Primus Telecommunications” is not used to generate revenue for BLACKIRON Data, which is marketed using its own name.

In conjunction with the Company’s commitment to dispose of its ICS business in June 2012, the Company reclassified indefinite-lived trade names of $0.7 million to the long-lived assets of ICS, classified as held for sale (see Note 18—“Discontinued Operations”).

The changes in the carrying amount of trade names by reporting unit for the years ended December 31, 2012 and 2011 are as follows (in thousands):


	United States			Canada		Australia		Brazil		Total
Balance as of December 31, 2010	$	76,200		$	—	$	—	$	—	$	76,200
Acquisition (disposition) of business		700			—		—		—		700

Balance as of December 31, 2011	$	76,900		$	—	$	—	$	—	$	76,900

Acquisition (disposition) of business		(39,200	)		—		—		—		(39,200	)
Reclassification to held for sale		(700	)		—		—		—		(700	)
Accumulated impairment loss		(10,000	)		—		—		—		(10,000	)

Balance as of December 31, 2012	$	27,000		$	—	$	—	$	—	$	27,000

Intangible assets subject to amortization consisted of the following (in thousands):


	December 31, 2012							December 31, 2011
	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Trade Names	$	3,500	$	(1,140	)	$	2,360	$	3,500	$	(790	)	$	2,710
Licenses		—		—			—		2,800		(233	)		2,567
Customer relationships		94,142		(60,478	)		33,664		106,199		(52,699	)		53,500

Total	$	97,642	$	(61,618	)	$	36,024	$	112,499	$	(53,722	)	$	58,777

Amortization expense for trade names, licenses and customer relationships for the years ended December 31, 2012, 2011 and 2010 was $11.4 million, $16.5 million and $20.4 million, respectively.

The Company expects amortization expense for trade names and customer relationships for the years ending December 31, 2013, 2014, 2015, 2016, 2017 and thereafter to be approximately $8.4 million, $6.2 million, $4.7 million, $3.6 million, $2.9 million and $10.2 million, respectively.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Long-Term Obligations

12 Months Ended

Dec. 31, 2012

Long-Term Obligations

6. LONG-TERM OBLIGATIONS

Long-term obligations consisted of the following (in thousands):


	December 31, 2012			December 31, 2011
Obligations under capital leases and other	$	101		$	11,696
13% Senior Secured Notes due 2016		2,403			2,403
10% Senior Secured Notes due 2017		12,692			235,231
10% Senior Secured Exchange Notes due 2017		112,587			—

Subtotal	$	127,783		$	249,330
Original issue discount on Senior Secured Notes		(671	)		(1,568	)

Subtotal	$	127,112		$	247,762
Less: Current portion of long-term obligations		(66	)		(1,948	)

Total long-term obligations	$	127,046		$	245,814

The following table reflects the contractual payments of principal and interest for the Company’s long-term obligations as of December 31, 2012:


Year Ending December 31,	Capital Leases and Other			13% Senior Secured Notes due 2016			10% Senior Secured Notes due 2017			10% Senior Secured Exchange Notes due 2017			Total
2013	$	73		$	312		$	1,269		$	10,383		$	12,037
2014		31			312			1,269			11,259			12,871
2015		6			312			1,269			11,259			12,846
2016		—			2,716			1,269			11,259			15,244
2017		—			—			13,327			118,217			131,544
Thereafter		—			—			—			—			—

Total minimum principal & interest payments		110			3,652			18,403			162,377			184,542
Less: Amount representing interest		(9	)		(1,249	)		(5,711	)		(49,790	)		(56,759	)

Total long-term obligations	$	101		$	2,403		$	12,692		$	112,587		$	127,783

13% Senior Secured Notes due 2016

As of December 31, 2012 and 2011, there was outstanding $2.4 million in aggregate principal amount of the 13% Senior Secured Notes due 2016 (the “13% Notes”) issued by Primus Telecommunications Holding, Inc. (“PTHI”) and Primus Telecommunications Canada Inc. (“Primus Canada”), each of which is a wholly owned subsidiary of PTGi. The 13% Notes bear interest at a rate of 13.00% per annum, payable semi-annually in arrears in cash on June 15 and December 15 of each year. The 13% Notes will mature on December 16, 2016.

10% Senior Secured Notes due 2017 and 10% Senior Secured Exchange Notes due 2017

Exchange Offers and Consent Solicitation; Issuance of the 10% Notes

On July 7, 2011, in connection with the consummation of the private (i) exchange offers (the “Exchange Offers”) for any and all outstanding Units representing the 13% Notes issued by PTHI and Primus Canada and the 14¹/₄% Senior Subordinated Secured Notes due 2013 (the “14¹/₄% Notes”) issued by Primus Telecommunications IHC, Inc., (ii) consent solicitation (the “Consent Solicitation”) to amend the indenture governing the 13% Notes and release the collateral securing the 13% Notes, and (iii) related transactions, PTHI issued $240.2 million in aggregate principal amount of the 10% Senior Secured Notes due 2017 (the “10% Notes”) under that certain indenture, dated as of July 7, 2011 (as amended or supplemented from time to time, the “10% Notes Indenture”), by and among PTHI, each of the Guarantors party thereto and U.S. Bank National Association, as Trustee and Collateral Trustee. An aggregate of $228.6 million in principal amount of 10% Notes was issued pursuant to the Exchange Offers, and PTHI issued an additional $11.6 million in aggregate principal amount of 10% Notes for cash, the proceeds of which were used to redeem all 14¹/₄% Notes that were not exchanged pursuant to the Exchange Offers and thereby discharge all of our obligations with respect to the 14¹/₄% Notes. In connection with the Exchange Offers, the Company also incurred $6.9 million of third party costs which are included in gain (loss) on early extinguishment or restructuring of debt on the consolidated statements of operations.

The 10% Notes bear interest at a rate of 10.00% per annum, payable semi-annually in arrears in cash on April 15 and October 15 of each year. The 10% Notes will mature on April 15, 2017.

The 10% Notes and related guarantees are secured by a pledge of and first lien security interest in (subject to certain exceptions) substantially all of the assets of PTHI and the guarantors of the 10% Notes, including PTGi (the “Guarantors”), including a first-priority pledge of all of the capital stock held by PTHI, the Guarantors and each subsidiary of PTGi that is a foreign subsidiary holding company (which pledge, in the case of the capital stock of each non-U.S. subsidiary and each subsidiary of PTGi that is a foreign subsidiary holding company, is limited to 65% of the capital stock of such subsidiary).

The 10% Notes rank senior in right of payment to existing and future subordinated indebtedness of PTHI and the Guarantors. The 10% Notes rank equal in right of payment with all existing and future senior indebtedness of PTHI and the Guarantors. The 10% Notes rank junior to any priority lien obligations entered into by PTHI or the Guarantors in accordance with the 10% Notes Indenture.

Prior to March 15, 2013, PTHI may redeem up to 35% of the aggregate principal amount of the 10% Notes at the redemption premium of 110% of the principal amount of the 10% Notes redeemed, plus accrued and unpaid interest, with the net cash proceeds of certain equity offerings. Prior to March 15, 2013, PTHI may redeem some or all of the 10% Notes at a make-whole premium as set forth in the 10% Notes Indenture. On or after March 15, 2013, PTHI may redeem some or all of the 10% Notes at a premium that will decrease over time as set forth in the 10% Notes Indenture, plus accrued and unpaid interest.

Upon the occurrence of certain Changes of Control (as defined in the 10% Notes Indenture) with respect to the Company, PTHI must give holders of the 10% Notes an opportunity to sell their 10% Notes to PTHI at a purchase price of 100% of the principal amount of such 10% Notes, plus accrued and unpaid interest, if any, to the date of purchase. If PTGi or any of its restricted subsidiaries consummates certain Asset Sales (as defined in the 10% Notes Indenture) and does not choose to use all of the net proceeds of such Asset Sale for specified purposes, PTHI may be required to use the remaining net proceeds from such Asset Sale (which are defined as “Excess Proceeds” under the 10% Notes Indenture) to offer to repurchase the 10% Notes using such Excess Proceeds at a purchase price of 100% of their principal amount, plus accrued and unpaid interest.

The 10% Notes Indenture contains covenants that, subject to certain exceptions, limit the ability of each of PTGi and its restricted subsidiaries to, among other things: (i) incur additional indebtedness; (ii) pay dividends on, repurchase or make distributions in respect of PTGi’s capital stock or make other restricted payments; (iii) make certain investments; (iv) sell, transfer or otherwise convey certain assets; (v) create certain liens; (vi) designate future subsidiaries as unrestricted subsidiaries; (vii) consolidate, merge, sell or otherwise dispose of all or substantially all of its assets; and (viii) enter into certain transactions with affiliates. The 10% Notes Indenture contains other customary terms, including, but not limited to, events of default, which, if any of them occurs, would permit or require the principal, premium, if any, and interest, if any, on all of the then outstanding 10% Notes to be due and payable immediately.

Repurchases of 10% Notes

On September 17, 2012, PTHI consummated the repurchase of $119.0 million in aggregate principal amount of its 10% Notes for a purchase price equal to 109% of the principal amount thereof, plus accrued but unpaid interest to the date of repurchase, in each case pursuant to agreements with certain selling holders of 10% Notes. In connection with this repurchase, the sellers of the 10% Notes, representing a majority in principal amount of the outstanding 10% Notes, consented to amendments of the 10% Notes Indenture to remove substantially all of the restrictive and reporting covenants under the 10% Notes Indenture, as well as certain events of default and related provisions. PTHI, the Guarantors and U.S. Bank National Association, as Trustee, entered into a Supplemental Indenture, dated as of September 17, 2012 (the “First Supplemental Indenture”), to memorialize such 10% Notes Indenture amendments.

In connection with the September 2012 10% Notes repurchase, the Company incurred $10.9 million of premiums and other costs and wrote off $9.5 million of deferred financing costs and $0.7 million of original issue discount, all of which are included in gain (loss) on early extinguishment or restructuring of debt on the consolidated statements of operations.

Prior to the September 2012 10% Notes repurchase, the Company repurchased $5.0 million in aggregate principal amount of the 10% Notes at 99% of face value in December 2011.

2012 Note Exchanges for Newly Issued 10% Exchange Notes

On November 14, 2012, PTHI consummated the exchange (the “Note Exchange”) of $79.7 million in aggregate principal amount of its 10% Notes for $86.9 million in aggregate principal amount of its 10% Senior Secured Exchange Notes due 2017 (the “10% Exchange Notes”), which were newly issued pursuant to the Second Supplemental Indenture (as defined below) to the 10% Notes Indenture. PTHI also paid accrued but unpaid interest on the exchanged 10% Notes for the period from October 15, 2012 to, but not including, November 14, 2012. The 10% Exchange Notes accrue interest from November 14, 2012 and are guaranteed by the same entities, including PTGi, that guarantee the 10% Notes. The terms of the 10% Exchange Notes are substantially similar to those governing the 10% Notes, which are described in greater detail above under “—Exchange Offers and Consent Solicitation; Issuance of the 10% Notes,” except that the applicable redemption price of the 10% Exchange Notes at any time such notes are redeemed is 100.00% of the principal amount of such 10% Exchange Notes redeemed, plus accrued and unpaid interest.

In connection with the Note Exchange, the participating noteholders consented to amendments to the 10% Notes Indenture contained in, and PTGi and the other Guarantors agreed to enter into, that certain Second Supplemental Indenture and First Amendment to Collateral Agreement, dated as of November 14, 2012 (the “Second Supplemental Indenture”), by and among PTHI, the Guarantors and U.S. Bank National Association, as Trustee and Collateral Trustee. Among other things, the Second Supplemental Indenture (i) reinstated substantially all of the events of default, restrictive and reporting covenants and related provisions and definitions of the 10% Notes Indenture that were eliminated by the First Supplemental Indenture, with certain amendments thereto to establish a new $50,000,000 restricted payment basket and to permit the incurrence of certain additional parity lien debt, (ii) established the 10% Exchange Notes issuable under the 10% Notes Indenture, (iii) authorized the Note Exchange and (iv) made certain other changes in the 10% Notes Indenture that are of a technical or conforming nature, including the amendment and restatement of certain provisions, the addition of certain definitions and the amendment of certain cross-references.

The participating noteholders also agreed to file and, on November 14, 2012, filed with the Court, a notice of dismissal with prejudice with respect to that certain Litigation commenced on September 17, 2012, as discussed in greater detail in Item 3, “Legal Proceedings—Termination of 10% Notes Indenture Litigation” of this Annual Report on Form 10-K.

On December 19, 2012, PTHI consummated a second note exchange of $23.8 million in aggregate principal amount of its 10% Notes for $25.7 million in aggregate principal amount of its 10% Exchange Notes. PTHI also paid accrued but unpaid interest on the exchanged 10% Notes for the period from October 15, 2012 to, but not including, November 14, 2012.

The Company evaluated the application of ASC No. 470-50, “Debt—Modifications and Extinguishments” (“ASC 470-50”), and concluded that the November and December 2012 note exchanges described above constituted a debt modification with respect to the 10% Notes. Under ASC 470-50, the premium of $9.1 million paid to the exchanging holders of 10% Notes, was capitalized and will be amortized over the life of the 10% Exchange Notes. It is included in other assets in the consolidated balance sheets.

Outstanding 10% Notes and 10% Exchange Notes

As of December 31, 2012, there was (i) $12.7 million in aggregate principal amount of the 10% Notes outstanding and (ii) $112.6 million in aggregate principal amount of the 10% Exchange Notes outstanding.

Income Taxes

12 Months Ended

Dec. 31, 2012

Income Taxes

7. INCOME TAXES

The provisions (benefits) for income taxes for the years ended December 31, 2012, 2011 and 2010 are as follows (in thousands):


	2012			2011			2010
Current: Federal	$	725		$	1,401		$	1,158
State		242			133			103
Foreign		(1,363	)		1,671			856

Subtotal Current		(396	)		3,205			2,117
Deferred: Federal		(3,890	)		—			—
State		—			—			—
Foreign		(232	)		(1,923	)		(8,632	)

Subtotal Deferred		(4,122	)		(1,923	)		(8,632	)

Income tax (benefit) expense	$	(4,518	)	$	1,282		$	(6,515	)

The US and foreign components of income from continuing operations before income taxes for the years ended December 31, 2012, 2011 and 2010 are as follows (in thousands):


	Years Ended December 31,
	2012			2011			2010
US	$	(113,153	)	$	(40,910	)	$	(44,727	)
Foreign		62,790			19,186			(3,820	)

Income from continuing operations before income taxes	$	(50,363	)	$	(21,724	)	$	(48,547	)

The provision for (benefit from) income taxes differed from the amount computed by applying the federal statutory income tax rate to income (loss) before income taxes due to the following items for the years ended December 31, 2012, 2011 and 2010 (in thousands):


	Years Ended December 31,
	2012			2011			2010
Tax provision (benefit) at federal statutory rate	$	(17,627	)	$	(7,603	)	$	(16,991	)
Permanent differences		27,090			(9,399	)		1,121
State tax (net of federal benefit)		180			(87	)		67
Effect of foreign tax rate change		(424	)		2,441			5,619
Foreign withholding taxes (net of federal)		755			(563	)		(4,790	)
Uncertain tax positions		(1,172	)		1,712			(1,826	)
Increase (decrease) in valuation allowance		(9,039	)		14,561			10,251
Tax-book fresh-start valuation difference		(3,890	)		—			—
Other		(391	)		220			34

Income tax (benefit) expense	$	(4,518	)	$	1,282		$	(6,515	)

Deferred income taxes are recognized to account for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts of each period-end, based on enacted tax laws and statutory income tax rates applicable to periods in which the differences are expected to affect taxable income. Deferred income taxes reflect the net income tax effect of temporary differences between the basis of assets and liabilities for financial reporting purposes and for income tax purposes. Net deferred tax balances are comprised of the following as of December 31, 2012 and 2011 (in thousands):


	As of December 31,
	2012			2011
Deferred tax assets	$	182,604		$	195,569
Valuation allowance		(149,494	)		(144,611	)
Deferred tax liabilities		(43,613	)		(79,305	)

Net deferred taxes	$	(10,503	)	$	(28,347	)

Certain fixed and intangible assets were marked to their fair market values, as a result of our emergence from bankruptcy and the associated fresh-start accounting, which resulted in a substantial decrease to our deferred tax asset, net operating loss carryforwards, the discharge of certain tax liabilities, and tax attribute reduction, as prescribed by Internal Revenue Code Section 108.

The significant components of the Company’s deferred tax assets and liabilities are as follows as of December 31, 2012 and 2011 (in thousands):


	As of December 31,
	2012			2011
Current
Allowance for bad debt	$	1,055		$	2,411
Basis difference in intangibles		—			—
Other		5,411			7,589
Valuation allowance		(6,466	)		(8,624	)

Total Current	$	—		$	1,376
Non-current
Basis difference in intangibles	$	(10,308	)	$	(38,547	)
Bond related adjustments		(3,631	)		(4,498	)
Capital loss carryforwards		23,990			24,306
Net operating loss carryforwards		103,023			106,283
Basis difference in fixed assets		19,311			29,952
Unrealized foreign exchange gains		(4	)		(2,995	)
Basis difference in foreign accounts receivable		(413	)		(12,718	)
Other		558			4,480
Valuation allowance		(143,029	)		(135,986	)

Total Non-current	$	(10,503	)	$	(29,723	)

As of December 31, 2012, the Company had foreign operating loss carryforwards of approximately $104.4 million of which $36.4 million expire periodically from 2013 through 2032, and the remainder of which carryforward without expiration.

At December 31, 2012, the Company projects United States operating loss carryforwards available to reduce future United States taxable income in the amount of $209.8 million, of which $134.3 million is subject to limitation under Section 382, and of which $75.5 million is not subject to the Section 382 limit. Of the $75.5 million carryforward NOL, $2.4 million resulted from stock compensation plan deductions in excess of accrued compensation cost for financial reporting purposes. Per the requirements of paragraph ASC 740-20-45-11(d), when the excess deduction is realized by reducing taxes payable, the tax effected amount of the excess is to be recognized in shareholders’ equity. Net operating losses which survived attribute reduction as a result of fresh-start accounting will expire periodically between 2015 through 2032, are subject to limitations in accordance with Section 382 of the Internal Revenue Code.

Pursuant to Section 382 of the Internal Revenue Code (“IRC Sec. 382”), the Company believes that it underwent an ownership change for tax purposes on February 28, 2011, the Arbinet acquisition date. This conclusion is based on Schedule 13D and Schedule 13G filings concerning Company securities, as filed with the SEC. A previous ownership change took place on July 1, 2009, as a result of the emergence from bankruptcy under the Reorganization Plan. As a result, the use of the Company’s net operating losses will be subject to an annual limitation under IRC Sec. 382 of approximately $1.6 million. The annual limitation under Section 382 of Arbinet’s pre-February 28, 2011 net operating losses is approximately $2.2 million.

As of February 28, 2011, and the completion of the merger of PTG Investments, a wholly-owned subsidiary of the Company with and into Arbinet Corporation, the Company believes that an ownership change for tax purposes took place with respect to both PTGi and Arbinet. This conclusion is based on Schedule 13D and Schedule 13G filings concerning Company securities, as filed with the United States Securities and Exchange Commission. As a result of the ownership change, an annual limitation of $7.0 million is required under section 382 of the Company’s then-existing NOLs. This limitation is in addition to the NOL utilization limitation of approximately $1.6 million due to the July 1, 2009, ownership change. The annual limitation under section 382 of Arbinet then-existing NOLs is approximately $2.2 million.

The Company is required to determine whether it had a net unrealized built-in gain (NUBIG) or net unrealized built-in loss (NUBIL) at the 2009 bankruptcy emergence date. The Company estimated that there was a NUBIL at the time of the 2009 emergence date. As a result, certain depreciation and loss deductions recognized during the five-year period beginning on the 2009 emergence date were subject to the Section 382 limitation. A 2011 review of tax basis demonstrated that at the emergence date in 2009 the Company was in a NUBIG, as a result certain depreciation and loss deductions that were previously limited are available. The amount of the previously limited losses is $8.0 million.

As a result of the 2009 fresh-start accounting, the Company has increased its deferred tax liabilities and goodwill by $55.7 million to reflect the increase in book basis without any increase in the tax basis of certain assets which were adjusted for the fresh-start. $29.7 million of the deferred tax liabilities relates to the fresh-start increase in the value of certain indefinite lived intangibles. These deferred tax liabilities will remain on the books indefinitely subject to reduction only if the related indefinite lived intangibles which gave rise to the deferred tax liabilities are impaired or disposed. In 2012, $19.2 million of deferred tax liabilities were removed as part of the sale disposition of Australia and due to impairment of fresh-start intangibles. The reduction of the deferred tax liability due to impairment of the underlying indefinite lived intangibles would provide a tax benefit for the Company which would be offset by any future impairment expense of the indefinite lived intangibles. The remaining $10.5 million of deferred tax liability will be a tax benefit which will be offset when its underlying fresh-start adjustment is released. The release of the deferred tax liability will not result in any payment of cash by the Company.

The Company incurred $(0.8) million, $(1.0) million and $(0.9) million of expense in 2012, 2011 and 2010, respectively, related to foreign withholding tax on intercompany interest and royalties owed to our United States subsidiary.

On December 15, 2008 the U.S. Treasury Department announced that the Fifth Protocol (“Protocol”) to the United States—Canada Income Tax Treaty entered into force. The Protocol is generally effective for tax years beginning on or after January 1, 2009, however certain provisions of the Protocol have different effective dates. The elimination of withholding tax on interest paid or credited between related parties is phased in over a 3-year period, between 2008 through 2010. The reduced withholding tax rates are 7% for 2008, 4% for 2009, and 0% for 2010 and thereafter. Effective January 1, 2010, interest paid by or to certain hybrid entities will not qualify for treaty benefits. The changes made by the Protocol have substantially reduced the accrued income tax.

No provision was made in 2012 for United States income taxes on the undistributed earnings of the foreign subsidiaries as it is the Company’s intention to utilize those earnings in the foreign operations for an indefinite period of time.

The Company follows the provision of ASC No. 740-10, “Income Taxes” which prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that the Company has taken or expects to take on a tax return. The Company is subject to challenge from various taxing authorities relative to certain tax planning strategies, including certain intercompany transactions as well as regulatory taxes.

Reconciliations of the period January 1, 2010 to December 31, 2010, and January 1, 2011 to December 31, 2011 and January 1, 2012 to December 31, 2012 balances of unrecognized tax benefits are as follows (in thousands):


	Years Ended December 31,
	2012			2011			2010
Balance at Januarly 1,	$	86,206		$	88,299		$	89,716
Foreign currency adjustments		—			(152	)		1,372
Statute expiration		(1,172	)		—			(6,270	)
Gross increases (decreases) of tax positions in prior period		(21,496	)		(2,112	)		(3,452	)
Audit resolution		—			—			(1,609	)
Gross increases of tax positions in current period		2,623			171			8,304
Penalties and interest		—			—			238

Balance at December 31,	$	66,161		$	86,206		$	88,299

The total unrecognized tax benefits as of December 31 2012 were $66.2 million. Total unrecognized tax benefits of $4.0 million, if recognized, would affect the effective tax rate. The Company does not expect its unrecognized tax benefits to significantly increase or decrease over the next 12 months.

The Company conducts business globally, and as a result, PTGi or one or more of its subsidiaries files income tax returns in the United States federal jurisdiction and various state and foreign jurisdictions. In the normal course of business the Company is subject to examination by taxing authorities throughout the world.

The following table summarizes the open tax years for each major jurisdiction:


Jurisdiction		Open Tax Years
United States Federal		2002-2012
Canada		2004-2012
United Kingdom		2004-2012
Netherlands		2007-2012

The Company has closed certain federal and provincial income tax examinations in Canada for the years through 2005 (federal) and 2001 through 2005 (provincial) with all assessments being received. The Company has concluded an examination in the Netherlands for tax years through 2006. Based on the final settlement, the Company reversed its remaining liability in the fourth quarter of 2008 and paid those liabilities during 2009. The Company is also currently under examination in other foreign tax jurisdictions, none of which are individually material. The IRS concluded its audit of Arbinet for tax years 2007, 2008 and 2009.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

+ Details

Fair Value of Financial Instruments and Derivatives

12 Months Ended

Dec. 31, 2012

Fair Value of Financial Instruments and Derivatives

8. FAIR VALUE OF FINANCIAL INSTRUMENTS AND DERIVATIVES

The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted cash, accounts receivable and accounts payable approximate fair value due to relatively short periods to maturity. The estimated aggregate fair value of the Company’s debt, based on quoted market prices, was $125.4 million and $235.4 million at December 31, 2012 and 2011, respectively. The aggregate carrying value of the Company’s debt was $127.0 million and $236.1 million at December 31, 2012 and 2011, respectively.

See the table below for a summary of the Company’s financial instruments accounted for at fair value on a recurring basis:


			Fair Value as of December 31, 2012, using:
	December 31, 2012		Quoted prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Liabilities:
Contingent Value Rights (CVRs)	$	14,904		—		14,904		—

Total	$	14,904		—		14,904		—


			Fair Value as of December 31, 2011, using:
	December 31, 2011		Quoted prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Liabilities:
Contingent Value Rights (CVRs)	$	16,196		—		16,196		—

Total	$	16,196		—		16,196		—

The CVRs are marked to fair value at each balance sheet date. The change in value is reflected in our consolidated statements of operations. Estimates of fair value represent the Company’s best estimates based on a pricing model using the following assumptions for 2012: (1) expected life of 6.5 years; (2) risk-free rate range of 0.11% to 2.43%; (3) expected volatility of 40.96%; (4) dividend yield of 0%; (5) exercise price of $26.20; (6) stock price of $10.87. Estimates of fair value represent the Company’s best estimates based on a pricing model using the following assumptions for 2011: (1) expected life of 7.5 years; (2) risk-free rate of 1.44%; (3) expected volatility of 48.17%; (4) dividend yield of 0%; (5) exercise price of $35.95; (6) stock price of $12.66. During the years ended December 31, 2012, 2011 and 2010, $1.3 million, $2.9 million and ($13.7) million, respectively, of income (expense) was recognized as a result of marking the CVRs to their fair value.

See the table below for a summary of the Company’s financial instruments accounted for at fair value on a nonrecurring basis:


			Fair Value as of December 31, 2012, using:
	December 31, 2012		Quoted prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Goodwill	$	60,744		—		—		60,744
Trade Names		27,000		—		—		27,000
Net assets held for sale		15,762		—		—		15,762

Total	$	103,506		—		—		103,506


			Fair Value as of December 31, 2011, using:
	December 31, 2011		Quoted prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Goodwill	$	71,902		—		—		71,902
Trade Names		76,900		—		—		76,900
Net assets held for sale		—		—		—		—

Total	$	148,802		—		—		148,802

See Note 2—“Summary of Significant Accounting Policies—Goodwill and Other Intangible Assets” and “Summary of Significant Accounting Policies—Valuation of Long-lived Assets (Held for Sale)” for a discussion of the inputs and valuation techniques.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Paragraph 10
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
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-Paragraph 44A, 44B
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-Subparagraph a-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-Paragraph 3, 10, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Commitments and Contingencies

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies

9. COMMITMENTS AND CONTINGENCIES

Future minimum lease payments under purchase obligations and non-cancellable operating leases, including continuing obligations of discontinued operations, as of December 31, 2012 are as follows (in thousands):


Year Ending December 31,	Purchase Obligations		Operating Leases
2013	$	4,244	$	12,560
2014		3,591		9,577
2015		41		7,743
2016		—		6,332
2017		—		5,790
Thereafter		—		14,282

Total minimum principal & interest payments		7,876		56,284
Less: Amount representing interest		—		—

Total long-term obligations	$	7,876	$	56,284

The Company has contractual obligations to utilize an external vendor for certain customer support functions and to utilize network facilities from certain carriers with terms greater than one year. Generally, the Company does not purchase or commit to purchase quantities in excess of normal usage or amounts that cannot be used within the contract term or at rates below or above market value. The Company made payments under purchase commitments of $8.5 million, $15.5 million and $28.9 million for the years ended December 31, 2012, 2011 and 2010, respectively.

The Company’s rent expense under operating leases was $5.1 million, $6.5 million and $6.8 million for the years ended December 31, 2012, 2011 and 2010, respectively.

Litigation

The Company is 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 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.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 20
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Stockholders' Equity

12 Months Ended

Dec. 31, 2012

Stockholders' Equity

10. STOCKHOLDERS’ EQUITY

As of December 31, 2012 and 2011, there were 13,933,529 and 13,741,020 shares of common stock outstanding, respectively.

Class A and B Warrants

In July 2009, PTGi issued (A) Class A warrants (the “Class A Warrants”) to purchase shares of PTGi’s common stock, which are divided into three separate series (Class A-1, Class A-2 and Class A-3 Warrants), each of which series consists of 1,000,000 warrants to purchase an original aggregate amount of up to 1,000,000 shares of PTGi common stock; and (B) Class B warrants (the “Class B Warrants” and, together with the Class A Warrants, the “Warrants”) to purchase an original aggregate amount of up to 1,500,000 shares of PTGi common stock. In connection with the issuance of the Warrants, PTGi entered into a Warrant Agreement for each of the Class A Warrants and the Class B Warrants, in each case with Broadridge Financial Solutions, Inc. (successor-in-interest to StockTrans, Inc.), as warrant agent. The original exercise price with respect to (i) the Class A-1 Warrants was $12.22 per share; (ii) the Class A-2 Warrants was $16.53 per share; (iii) the Class A-3 Warrants was $20.50 per share; and (iv) the Class B Warrants was $26.01 per share. The Warrants have a five-year term and will expire on July 1, 2014. A holder may exercise Warrants by paying the applicable exercise price in cash. In addition, a holder may exercise Warrants on a cashless basis in connection with a change of control (as defined in each of the Class A and Class B Warrant Agreement), in connection with a transaction pursuant to an effective registration statement covering the sale of PTGi common stock underlying such Warrants, or if the exercise occurs on a date when the daily volume-weighted average price of the PTGi common stock for the immediately preceding 10 trading days exceeds 150% of the exercise price applicable to such Warrants. The Warrants are freely transferrable by the holder thereof.

Antidilution adjustment provisions in each of the Class A Warrant Agreement and Class B Warrant Agreement provide that the number of shares of PTGi common stock issuable upon exercise of the Warrants and the exercise prices of the Warrants will be adjusted in connection with any dividend or distribution of PTGi common stock, assets or cash (other than any regular cash dividend not to exceed in any fiscal year 45% of the consolidated net income of the Company), or any subdivision or combination of the PTGi common stock. In addition, the number of shares of PTGi common stock issuable upon exercise of the Warrants and the exercise prices of the Warrants are also subject to adjustment in connection with any issuance, grant or sale to any person of (A) rights, warrants, options, exchangeable securities or convertible securities entitling such person to subscribe for, purchase or otherwise acquire shares of PTGi common stock at a price per share less than the fair market value of the PTGi common stock on the trading day immediately prior to such issuance, sale or grant, subject to certain exceptions, or (B) shares of PTGi common stock at a price per share less than the fair market value of the PTGi common stock on the trading day immediately prior to such issuance, sale or grant. Additionally, if any transaction or event occurs in which all or substantially all of the outstanding PTGi common stock is converted into, exchanged for, or the holders thereof are otherwise entitled to receive on account thereof stock, other securities, cash or assets (each, a “Fundamental Change Transaction”) the holder of each Warrant outstanding immediately prior to the occurrence of such Fundamental Change Transaction shall have the right to receive upon exercise of the applicable Warrant the kind and amount of stock, other securities, cash and/or assets that such holder would have received if such Warrant had been exercised.

The Dividends that occurred in 2012 (discussed below under “—Special Dividends”) triggered the antidilution adjustment provisions in the Warrant Agreements, such that (A) the exercise price with respect to (i) the Class A-1 Warrants was adjusted downward to $8.91, (ii) the Class A-2 Warrants was adjusted downward to $12.05, (iii) the Class A-3 Warrants was adjusted downward to $14.93, and (iv) the Class B Warrants was adjusted downward to $18.96; and (B) after taking into account exercised Warrants, the number of shares of PTGi common stock issuable upon exercise of (i) the Class A-1 Warrants was adjusted upward to 1,370,658, (ii) the Class A-2 Warrants was adjusted upward to 1,372,293, (iii) the Class A-3 Warrants was adjusted upward to 1,372,293, and (iv) the Class B Warrants was adjusted upward to 2,058,438. Due to the nature of the mandatory antidilution provisions applicable to the Warrants, the Company has evaluated the accounting impact of the modification accounting under ASC 718, and concluded that the modification of the terms of such instruments did not result in a significant change of fair value before and after the modification date.

Contingent Value Rights

In July 2009, the Company issued contingent value rights (“CVRs”), which allow holders to receive shares of PTGi common stock (subject to adjustment as described below, the “CVR Shares”), in an original aggregate amount of up to 2,665,000 shares. The CVRs may not be transferred by the holder thereof except in certain limited circumstances. Subject to the terms of the CVR Agreement governing the CVRs, holders of CVRs will receive their pro rata share of the CVR Shares if certain conditions are satisfied. A distribution of CVR Shares is required to be made by the Company if, as of any determination date (as described in the paragraph below), the Company’s equity value (assuming cash exercise in full on such date of in-the-money warrants and options of the Company) divided by the sum of the number of shares of PTGi common stock then issued and outstanding plus the number of shares of PTGi common stock underlying warrants, options and similar securities of the Company (other than CVRs) that are then in-the-money exceeds the CVR strike price (subject to adjustment as described below, the “CVR Strike Price”) in an original amount of $35.95. The aggregate number of such shares of PTGi common stock is referred to as the “Applicable Shares” and the per share amount of any such excess over the CVR Strike Price is referred to as the “Excess Equity Value Per Share.” If such a distribution is required, the number of CVR Shares to be distributed by the Company equals the product of Excess Equity Value Per Share multiplied by the number of Applicable Shares divided by the CVR Strike Price. Such product of Excess Equity Value Per Share and the number of Applicable Shares is referred to as the “Excess Equity Value.”

The Company will determine if and to the extent a distribution of CVR Shares is required (i) on January 1 and July 1 of each year, commencing on the first such date (but in no event later than July 1, 2013) on which data is available to confirm that the Company’s adjusted EBITDA for the immediately preceding four fiscal quarters is equal to at least $100 million, and (ii) upon the occurrence of certain change of control transactions involving the Company. Distributions of CVR Shares (if any) will be made within 45 calendar days of a determination by the Company that a distribution is required.

Notwithstanding the foregoing, no distribution of CVR Shares is required to be made by the Company unless Excess Equity Value exceeds $1 million as of any determination date.

Antidilution adjustment provisions in the CVR Agreement provide that the maximum number of CVR Shares and the CVR Strike Price will be adjusted from time to time in connection with any stock dividend or distribution, or subdivision, split, combination, reclassification or recapitalization of the PTGi common stock. In addition, if the Company distributes to holders of its common stock any of its assets (including but not limited to cash), securities or rights to purchase securities of the Company (other than any regular cash dividend not to exceed in any fiscal year 45% of the consolidated net income of the Company and its consolidated subsidiaries for the immediately preceding fiscal year), then the number of CVR Shares will be increased and the CVR Strike Price will be decreased, in each case pursuant to the terms of the CVR Agreement. Additionally, in case of any reclassification, merger, consolidation, capital reorganization or other change in the capital stock of the Company (other than in connection with certain change of control transactions involving the Company) in which all or substantially all of the outstanding shares of PTGi common stock are converted into or exchanged for stock, other securities or other property, the Company shall make appropriate provision so that the holders of CVRs shall thereafter be entitled to receive, at such time such holder would have otherwise been entitled to receive a distribution under the CVR Agreement, the kind and amount of stock and other securities and property having a value substantially equivalent to the value of PTGi common stock that the holders of CVRs would have been entitled to receive in connection with a distribution of CVR Shares immediately prior to such reclassification, merger, consolidation, reorganization or other change in the capital stock of the Company at a CVR Strike Price that, in each case, is reasonably determined by the board of directors of the Company after consultation with an independent valuation advisor to preserve, to the extent practicable, the intrinsic value of such CVR immediately prior to such event.

The CVRs will expire and the CVR Agreement will terminate upon the earliest to occur of: (1) the date upon which no further CVR Shares are available for distribution, (2) the consummation of certain change of control transactions (subject to any potential distribution of CVR Shares as a result thereof), and (3) July 1, 2019.

The Dividends that occurred in 2012 (discussed below under “—Special Dividends”) triggered the antidilution adjustment provisions in the CVR Agreement, such that (A) the CVR Strike Price was adjusted downward to $26.20 and (B) the maximum number of CVR Shares issuable with respect to the CVRs was adjusted upward to 3,657,157. Due to the nature of the mandatory antidilution provisions applicable to the CVRs, the Company has evaluated the accounting impact of the modification accounting under ASC 718 and concluded that the modification of the terms of such instruments did not result in a significant change of fair value before and after the modification date.

Special Dividends

During 2012, PTGi’s Board of Directors declared three special cash dividends (the “Dividends”) with respect to PTGi’s issued and outstanding common stock, as presented in the following table (Total Dividend amounts presented in thousands):

Special Cash Dividend Per Share

$1.00

$2.50

$0.50

Declaration Date

June 20, 2012

November 14, 2012

December 11, 2012

Holders of Record Date

July 2, 2012

November 27, 2012

December 21, 2012

Payment Date

July 16, 2012

December 11, 2012

December 28, 2012

Total Dividend

13,804

34,551

6,910

In addition, with respect to unvested RSUs and restricted stock, the Company recorded, at the time of each Dividend, a dividend equivalent equal to the amount of each Dividend per RSU or share of restricted stock, as applicable, to holders of RSUs and restricted stock amounting to $1.3 million at December 31, 2012. The payment of the dividend equivalent will occur upon vesting of the RSU or share of restricted stock. With respect to certain outstanding stock options, in connection with each Dividend, the Company reduced the exercise price and increased the number of shares of common stock issuable upon exercise of such options, in each case in order to prevent dilution of the rights of holders of awards as a result of the Dividends. Due to the nature of the discretionary antidilution provisions applicable to the RSUs, the Company has evaluated the accounting impact of the modification accounting under ASC 718 and concluded that the modification of the terms of such instruments did not result in a significant change in fair value before and after the modification date.

On August 8, 2011, PTGi’s Board of Directors authorized a stock repurchase program of up to $15 million of its common stock through August 8, 2013. Under the stock repurchase program, the Company may repurchase common stock from time to time in the open-market, privately negotiated transactions or block trades. There is no guarantee as to the exact number of shares, if any, that the Company will repurchase. The stock repurchase program may be modified, terminated or extended at any time without prior notice. PTGi has established a committee consisting of its lead director, chief executive officer and chief financial officer to oversee the administration of the stock repurchase program. During the year ended December 31, 2011, the Company repurchased 31,626 shares at a weighted average price of $11.92 per share under the stock repurchase plan. There have been no repurchases in the year ending December 31, 2012.

The following table provides a reconciliation of beginning and ending shares (in thousands):


	Years Ended December 31,
	2012			2011			2010
Common Shares:
Beginning balance		13,741			9,801			9,600
Stock consideration issued for Merger		—			3,233			—
Purchase of treasury stock		—			(32	)		—
Restricted stock award		—			165			—
Common shares issued for the exercise of stock options		11			125			—
Common shares withheld to settle tax liability—stock options		(1	)		(10	)		—
Common shares issued for restricted stock units		273			477			260
Common shares withheld to settle tax liability—restricted stock units		(91	)		(18	)		(59	)
Common shares issued for the exercise of Warrants		1			—			—

Ending balance		13,934			13,741			9,801

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
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-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

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-Subparagraph (SAB TOPIC 4.E)
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
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-Paragraph 7, 11A
-Chapter 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
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-Number 210
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Reference 18: http://www.xbrl.org/2003/role/presentationRef
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Reference 19: http://www.xbrl.org/2003/role/presentationRef
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Reference 20: http://www.xbrl.org/2003/role/presentationRef
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Reference 21: http://www.xbrl.org/2003/role/presentationRef
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Reference 23: http://www.xbrl.org/2003/role/presentationRef
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-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

+ Details

Share-Based Compensation

12 Months Ended

Dec. 31, 2012

Share-Based Compensation

11. SHARE-BASED COMPENSATION

The Compensation Committee (the “Committee”) of the Board of Directors of PTGi administers PTGi’s Management Compensation Plan, as amended (the “Management Compensation Plan”). The Committee has broad authority to administer, construe and interpret the Management Compensation Plan; however, except in connection with certain Corporate Transactions (as defined in the Management Compensation Plan), it may not take any action with respect to an award that would be treated, for accounting purposes, as a “repricing” of an award unless the action is approved by the shareholders of PTGi.

The Management Compensation Plan provides for the grant of incentive stock options, nonqualified stock options, restricted stock, restricted stock units, and other stock-based or cash-based performance awards (collectively, “awards”). PTGi typically issues new shares of common stock upon the exercise of stock options, as opposed to using treasury shares.

The Company follows guidance which addresses the accounting for share-based payment transactions whereby an entity receives employee services in exchange for either equity instruments of the enterprise or liabilities that are based on the fair value of the enterprise’s equity instruments or that may be settled by the issuance of such equity instruments. The guidance generally requires that such transactions be accounted for using a fair-value based method and share-based compensation expense be recorded, based on the grant date fair value, estimated in accordance with the guidance, for all new and unvested stock awards that are ultimately expected to vest as the requisite service is rendered.

There were 430,972 and 41,666 options granted during the year ended December 31, 2012 and 2011, respectively. The weighted average fair value at date of grant for options granted during the years ended December 31, 2012, 2011 and 2010 was $1.63, $5.11 and $3.07, respectively, per option. The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions shown as a weighted average for the year:


	Years Ended December 31,
	2012		2011		2010
Expected option life		4 - 5.75 Years		6 Years		4 Years
Risk-free interest rate		0.57 - 0.89%		1.12 - 1.91%		1.20%
Expected volatility		35.83 - 36.64%		41.25 - 43.32%		47.00%
Dividend yield		0%		0%		0%

Total share-based compensation expense recognized by the Company in the years ended December 31, 2012, 2011 and 2010 was $5.2 million, $5.2 million and $1.6 million, respectively. Most of PTGi’s stock awards vest ratably during the vesting period. The Company recognizes compensation expense for equity awards, reduced by estimated forfeitures, using the straight-line basis.

At the closing of the acquisition of Arbinet on February 28, 2011, the Company reserved approximately 95,000 additional shares of its common stock for issuance in connection with its assumption of Arbinet’s outstanding options, warrants, stock appreciation rights and restricted stock units.

Restricted Stock Units (RSUs)

A summary of PTGi’s restricted stock units activity during the years ended December 31, 2012 and 2011 is as follows:


	Shares			Weighted Average Grant Date Fair Value
Unvested—January 1, 2011		474,851		$	8.14
Granted		679,598		$	14.26
Vested		(467,186	)	$	9.93
Forfeitures		(35,869	)	$	13.18

Unvested—December 31, 2011		651,394		$	13.01

Granted		62,000		$	16.48
Vested		(371,277	)	$	13.33
Forfeitures		(55,909	)	$	15.17

Unvested—December 31, 2012		286,208		$	12.91

As of December 31, 2012, PTGi had 0.3 million unvested RSUs outstanding with respect to $1.7 million of compensation expense that is expected to be recognized over the weighted average remaining vesting period of 1.3 years. The number of unvested RSUs expected to vest is 0.3 million.

Stock Options and Stock Appreciation Rights

A summary of PTGi’s stock options and stock appreciation rights activity during the years ended December 31, 2012 and 2011 is as follows:


	Shares			Weighted Average Exercise Price
Outstanding—January 1, 2011		185,300		$	11.34
Granted		41,666		$	11.92
Exercised		(109,626	)	$	12.48
Forfeitures		(75,455	)	$	14.22
Arbinet merger		87,195		$	14.99

Outstanding—December 31, 2011		129,080		$	11.34

Granted		430,972		$	11.01
Exercised		(11,214	)	$	11.62
Forfeitures		(336,594	)	$	12.23

Outstanding—December 31, 2012		212,244		$	9.24

Eligible for exercise		156,550		$	8.56

As discussed in Note 10—“Stockholders’ Equity,” as a result of the Dividends, the Company reduced the exercise price and increased the number of shares of common stock issuable upon exercise of such options. There were 390,972 options granted (with a weighted average exercise price of $10.39) and 332,374 options forfeited (with a weighted average exercise price of $12.22) included in the chart above related to these adjustments.

The following table summarizes the intrinsic values and remaining contractual terms of PTGi’s stock options and stock appreciation rights:


	Intrinsic Value		Weighted Average Remaining Life in Years
Options outstanding—December 31, 2012	$	438,871		8.0
Options exercisable—December 31, 2012		397,143		7.5

During the year ended December 31, 2012, 11,000 options were exercised with an intrinsic value of $39,000. As of December 31, 2012, the Company had approximately 56,000 unvested stock options and stock appreciation rights outstanding of which $0.2 million of compensation expense is expected to be recognized over the weighted average remaining period of 1.2 years. The number of unvested stock options and stock appreciation rights expected to vest is approximately 51,000 shares, with a weighted average remaining life of 7.9 years, a weighted average exercise price of $9.19, and an intrinsic value of approximately $42,000.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Employee Benefit Plans

12 Months Ended

Dec. 31, 2012

Employee Benefit Plans

12. EMPLOYEE BENEFIT PLANS

The Company sponsors a 401(k) employee benefit plan (the “401(k) Plan”) that covers substantially all United States based employees. Employees may contribute amounts to the 401(k) Plan not to exceed statutory limitations. The 401(k) Plan provides an employer matching contribution in cash of 50% of the first 6% of employee annual salary contributions capped at $6,000 which are subject to three-year cliff vesting.

The matching contribution made during the years ended December 31, 2012, 2011 and 2010 was $368 thousand, $385 thousand and $206 thousand.

Related Parties

12 Months Ended

Dec. 31, 2012

Related Parties

13. RELATED PARTIES

Among the sellers of 10% Notes was the Singer Children’s Management Trust, which is the beneficial owner of a portion of the outstanding shares of PTGi common stock. The Singer Children’s Management Trust sold $3.9 million in aggregate principal amount of 10% Notes at a purchase price equal to $4.3 million plus accrued but unpaid interest to the date of repurchase. Other entities associated with the Singer family sold $13.3 million in aggregate principal amount of 10% Notes at a purchase price equal to $14.5 million plus accrued but unpaid interest to the date of repurchase.

Among the sellers of 10% Notes were certain entities affiliated with Morgens, Waterfall, Vintiadis & Company, Inc., which is the beneficial owner of a portion of the outstanding shares of PTGi common stock. Phoenix Partners, L.P. sold $5.3 million in aggregate principal amount of 10% Notes at a purchase price equal to $5.8 million plus accrued but unpaid interest to the date of repurchase. Other entities affiliated with Morgens, Waterfall, Vintiadis & Company, Inc. sold $5.2 million in aggregate principal amount of 10% Notes at a purchase price equal to $5.6 million plus accrued but unpaid interest to the date of repurchase.

Among the sellers of 10% Notes were certain entities affiliated with Canton Holdings, L.L.C., which is the beneficial owner of a portion of the outstanding shares of PTGi common stock. Archer Capital Master Fund, L.P. sold $20.5 million in aggregate principal amount of 10% Notes at a purchase price equal to $22.4 million plus accrued but unpaid interest to the date of repurchase. Other entities affiliated with Canton Holdings, L.L.C. sold $8.9 million in aggregate principal amount of 10% Notes at a purchase price equal to $9.7 million plus accrued but unpaid interest to the date of repurchase.

The terms received by such sellers of 10% Notes were the same as those received by other selling holders of 10% Notes.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39603-107864

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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 57
-Paragraph 1-4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Operating Segment and Related Information

12 Months Ended

Dec. 31, 2012

Operating Segment and Related Information

14. OPERATING SEGMENT AND RELATED INFORMATION

The Company currently has two reportable geographic segments—United States and Canada. The Company has three reportable operating segments based on management’s organization of the enterprise—BLACKIRON Data, North America Telecom, and Other. As a result of the sale of its Australian segment and the classification of its ICS business unit as held for sale, the Company re-organized its remaining operating segments to better reflect its continuing operations. The BLACKIRON Data segment contains the pure data center operations in Canada, while the North America Telecom segment combines the retail telecom businesses in the United States and Canada. Other consists of non-core operations. The Company evaluates the performance of its segments and allocates resources to them based upon net revenue and income (loss) from operations. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Net revenue by geographic segment is reported on the basis of where services are provided. All inter-segment revenues are eliminated. The Company has no single customer representing greater than 10% of its revenues. Corporate assets, capital expenditures and property and equipment are included in the United States segment, while corporate expenses are presented separately in income (loss) from operations. The assets of the BLACKIRON Data and North America Telecom segments are indistinguishable from the respective geographic segments. Therefore, any reporting related to the BLACKIRON Data and North America Telecom segments for assets or other balance sheet items is impractical.

Summary information with respect to the Company’s operating segments is as follows (in thousands):


	Years Ended December 31,
	2012			2011			2010
Net Revenue by Geographic Region
United States	$	37,253		$	44,774		$	50,832
Canada		223,301			246,612			231,185

Total	$	260,554		$	291,386		$	282,017

Net Revenue by Segment
BLACKIRON Data	$	33,734		$	30,791		$	27,068
North America Telecom		226,820			260,023			254,841
Other		—			572			108

Total	$	260,554		$	291,386		$	282,017

Provision for Doubtful Accounts Receivable
BLACKIRON Data	$	110		$	287		$	246
North America Telecom		2,137			3,901			4,108
Other		—			—			—

Total	$	2,247		$	4,188		$	4,354

Income (Loss) from Operations
BLACKIRON Data	$	6,337		$	6,487		$	4,904
North America Telecom		19,709			29,042			8,280
Other		—			(331	)		(1,472	)

Total From Operating Segments		26,046			35,198			11,712
Corporate		(34,709	)		(20,293	)		(17,576	)

Total	$	(8,663	)	$	14,905		$	(5,864	)

Capital Expenditures
BLACKIRON Data	$	15,695		$	9,779		$	5,429
North America Telecom		8,684			6,472			6,464
Other (1)		7,072			14,848			14,528

Total From Operating Segments		31,451			31,099			26,421
Corporate		296			434			—

Total	$	31,747		$	31,533		$	26,421

(1)	“Other” also includes capital expenditures related to discontinued operations

The above capital expenditures exclude assets acquired under terms of capital lease and vendor financing obligations.


	December 31, 2012		December 31, 2011
Property and Equipment—Net
United States	$	804	$	3,643
Canada		62,519		54,674
Other (1)		1,992		93,863

Total	$	65,315	$	152,180


	December 31, 2012		December 31, 2011
Assets
United States	$	73,143	$	122,170
Canada		180,369		194,531
Other (1)		47,678		227,123

Total	$	301,190	$	543,824

(1)	“Other” also includes property and equipment—net and assets of discontinued operations.

The Company offers three main products—Retail Voice, Data/Internet and Retail VoIP. Net revenue information with respect to the Company’s products is as follows (in thousands):


	Years Ended December 31,
	2012		2011		2010
Retail Voice	$	156,515	$	191,226	$	188,289
Data/Internet		72,717		68,881		62,688
Retail VoIP		31,322		31,279		31,040

Total	$	260,554	$	291,386	$	282,017

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Quarterly Results of Operations

12 Months Ended

Dec. 31, 2012

Quarterly Results of Operations

15. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

The following is a tabulation of the unaudited quarterly results of operations for the years ended December 31, 2012 and 2011.


	Quarters Ended
	(in thousands, except per share amounts)
	March 31, 2012			June 30, 2012			September 30, 2012			December 31, 2012 (1)
Net revenue	$	68,002		$	65,388		$	63,911		$	63,253
Cost of revenue (exclusive of depreciation)		33,505			32,290			31,511			27,957
Income (loss) from operations		(299	)		(2,731	)		1,492			(7,125	)

Income (loss) from continuing operations, net of tax		(11,470	)		(9,645	)		(22,578	)		(2,134	)
Income (loss) from discontinued operations, net of tax		4,612			(20,162	)		(2,459	)		(2,542	)
Gain (loss) from sale of discontinued operations, net of tax		—			98,666			—			(4,401	)

Net income (loss) attributable to Primus Telecommunications Group, Incorporated-basic	$	(6,858	)	$	68,859		$	(25,037	)	$	(9,077	)

Net income (loss) attributable to Primus Telecommunications Group, Incorporated-diluted	$	(6,858	)	$	68,859		$	(25,037	)	$	(9,077	)

Weighted average common shares outstanding-basic		13,744			13,839			13,890			13,901

Weighted average common shares outstanding-diluted		13,744			13,839			13,890			13,901

Basic income (loss) per common share:
Income (loss) from continuing operations attributable to Primus Telecommunications Group, Incorporated	$	(0.83	)	$	(0.70	)	$	(1.63	)	$	(0.15	)
Income (loss) from discontinued operations		0.34			(1.46	)		(0.18	)		(0.18	)
Gain (loss) from sale of discontinued operations		—			7.13			—			(0.32	)

Net income (loss) attributable to Primus Telecommunications Group, Incorporated	$	(0.49	)	$	4.97		$	(1.81	)	$	(0.65	)

Diluted income (loss) per common share:
Income (loss) from continuing operations attributable to Primus Telecommunications Group, Incorporated	$	(0.83	)	$	(0.70	)	$	(1.63	)	$	(0.15	)
Income (loss) from discontinued operations		0.34			(1.46	)		(0.18	)		(0.18	)
Gain (loss) from sale of discontinued operations		—			7.13			—			(0.32	)

Net income (loss) attributable to Primus Telecommunications Group, Incorporated	$	(0.49	)	$	4.97		$	(1.81	)	$	(0.65	)


	Quarters Ended
	(in thousands, except per share amounts)
	March 31, 2011			June 30, 2011			September 30, 2011			December 31, 2011 (2)
Net revenue	$	72,197		$	74,995		$	74,308		$	69,886
Cost of revenue (exclusive of depreciation)		35,633			37,230			36,808			33,676
Income (loss) from operations		169			(964	)		1,575			14,125

Income (loss) from continuing operations, net of tax		(8,455	)		(9,175	)		(5,128	)		(5,709	)
Income (loss) from discontinued operations, net of tax		(10,800	)		2,833			(4,882	)		7,367
Gain (loss) from sale of discontinued operations, net of tax		—			—			—			(4,781	)

Net income (loss) attributable to Primus Telecommunications Group, Incorporated-basic	$	(19,255	)	$	(6,342	)	$	(10,010	)	$	(3,123	)

Net income (loss) attributable to Primus Telecommunications Group, Incorporated-diluted	$	(19,255	)	$	(6,342	)	$	(10,010	)	$	(3,123	)

Weighted average common shares outstanding-basic		11,148			13,385			13,715			13,697

Weighted average common shares outstanding-diluted		11,148			13,385			13,715			13,697

Basic income (loss) per common share:
Income (loss) from continuing operations attributable to Primus Telecommunications Group, Incorporated	$	(0.76	)	$	(0.69	)	$	(0.37	)	$	(0.42	)
Income (loss) from discontinued operations		(0.97	)		0.21			(0.36	)		0.54
Gain (loss) from sale of discontinued operations		—			—			—			(0.35	)

Net income (loss) attributable to Primus Telecommunications Group, Incorporated	$	(1.73	)	$	(0.48	)	$	(0.73	)	$	(0.23	)

Diluted income (loss) per common share:
Income (loss) from continuing operations attributable to Primus Telecommunications Group, Incorporated	$	(0.76	)	$	(0.69	)	$	(0.37	)	$	(0.42	)
Income (loss) from discontinued operations		(0.97	)		0.21			(0.36	)		0.54
Gain (loss) from sale of discontinued operations		—			—			—			(0.35	)

Net income (loss) attributable to Primus Telecommunications Group, Incorporated	$	(1.73	)		$(0.48)		$	(0.73	)	$	(0.23	)

(1)	Income (loss) from operations includes an accrual reversal of $2.7 million related to Harmonized Sales Tax (HST) of North America Telecom and an impairment charge of $10.0 million related to the indefinite-lived US trade name, “Primus Telecommunications”.

(2)	Income (loss) from operations includes a gain on the sale of assets in the amount of $13.1 million related to Globility’s sale of fixed wireless spectrum licenses.

Quarterly and year-to-date computations of per share amounts are made independently; therefore, the sum of per share amounts for the quarters may not agree with per share amounts for the year.

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References + Details

(Gain) Loss on Sale or Disposal of Assets

12 Months Ended

Dec. 31, 2012

(Gain) Loss on Sale or Disposal of Assets

16. (GAIN) LOSS ON SALE OR DISPOSAL OF ASSETS

During the year ended December 31, 2011, Globility sold its fixed wireless spectrum licenses in 29 rural and urban markets which resulted in a gain of $13.1 million. In addition, the Company recognized a loss of $0.2 million associated with the sale or disposal of specific long-lived assets, which were taken out of service. The assets disposed or sold were comprised of leasehold improvements, switch and peripheral and other network equipment.

Gain (Loss) on Early Extinguishment or Restructuring of Debt

12 Months Ended

Dec. 31, 2012

Gain (Loss) on Early Extinguishment or Restructuring of Debt

17. GAIN (LOSS) ON EARLY EXTINGUISHMENT OR RESTRUCTURING OF DEBT

In November 2012, PTHI exchanged $79.7 million in aggregate principal amount of its 10% Notes for $86.9 million in aggregate principal amount of its 10% Exchange Notes and incurred third party fees of $0.6 million.

In September 2012, the Company paid $129.7 million in cash and retired $119.0 million in aggregate principal amount of PTHI’s 10% Notes. As a result, the Company recognized a $21.1 million net loss on the early extinguishment of debt in the consolidated statements of operations which included premiums and other costs and the write-off of related deferred financing costs and original issue discount.

In December 2011, the Company paid $4.95 million in cash and retired $5.0 million in aggregate principal amount of PTHI’s 10% Notes. As a result, the Company recognized a $0.4 million net loss on the early extinguishment of debt in the consolidated statements of operations which included the write-off of related deferred financing costs and original issue discount, partially offset by the gain on repurchase.

In July 2011, PTHI issued $240.2 million in aggregate principal amount of its 10% Notes in exchange for any and all outstanding Units representing the 13% Notes and the 14¹/4% Notes. In connection with such Exchange Offers, the Company incurred a loss of $6.9 million on the early extinguishment of debt in the consolidated statements of operations.

Discontinued Operations

12 Months Ended

Dec. 31, 2012

Discontinued Operations

18. DISCONTINUED OPERATIONS

Discontinued Operations—year ended December 31, 2012

On May 31, 2012, the Company completed the previously announced sale of its Australian segment to M2 Telecommunications Group Ltd. (“M2”), an Australian telecommunications company, for approximately $AUD 192.4 million (or approximately $USD 195.7 million giving effect to a currency hedge that the Company put in place in connection with the transaction). The Company recorded a $98.6 million gain from the sale of this segment during the second quarter of 2012. In connection with the closing of the transaction, $9.8 million was retained from the purchase price and placed into escrow until May 31, 2013 for purposes of satisfying potential indemnification claims pursuant to the purchase agreement. The purchase price was also subject to a customary post-closing working capital adjustment. In the fourth quarter of 2012, the Company and M2 settled on a working capital adjustment and the escrow was released. The Company received $5.4 million and M2 received $4.4 million. The $4.4 million was recorded as an adjustment to the gain that was recorded in the second quarter of 2012, which resulted in a net gain for the year ended December 31, 2012 of 94.3 million.

On June 28, 2012, the Board of Directors of PTGi committed to dispose of the Company’s ICS business unit and as a result classified ICS as a discontinued operation. The Company continues to actively solicit a sale or other disposition of its ICS business unit. In conjunction with the commitment to dispose of ICS and classification of ICS as a discontinued operation, the Company evaluated the carrying value of ICS in the second quarter of 2012 which resulted in it being higher than its fair value less costs to sell by $10.3 million and have attributed such adjustment to the long-lived assets of ICS. As the adjustment is related to ICS, it is classified within Income (loss) from discontinued operations, net of tax on the consolidated statements of operations. The Company performed the same analysis as of December 31, 2012 and determined that the fair value less costs to sell exceeded the carrying value and therefore no additional adjustment was required.

Discontinued Operations—year ended December 31, 2011

During the fourth quarter of 2011, the Company sold its Brazilian segment for $4.3 million. The Company recorded a $4.8 million loss from sale of this segment during the fourth quarter of 2011.

Discontinued Operations—year ended December 31, 2010

During the third quarter of 2010, the Company committed to dispose of and began actively soliciting the disposition of its European segment, also known as the Company’s remaining European retail operations. The Company sold its Belgian operations, to Webcetra BVBA, for a sale price of approximately $1.3 million during the third quarter of 2010 and as a result, recorded a $40,000 gain from the sale. In October 2010 the Company completed the sale of its United Kingdom retail operations customer base and certain of its assets to NewCall Telecom Ltd., for a sale price of approximately $6.8 million, including a note receivable of $2.1 million, and completed the sale of its Italian retail operations customer base for approximately $0.2 million; as a result the Company recorded a gain of $2.4 million and a loss of $0.3 million, respectively, from the sale of these assets. The Company sold its operations located in France, to AFone, during December 2010 for a sale price of approximately $4.0 million. In addition, AFone assumed all of the existing liabilities of the France operations. Consequently the Company recognized a gain from the sale of these operations of approximately $0.9 million. Consideration received from the sale of the France operations included a note receivable of $1.3 million.

In the second quarter of 2010, the Company sold certain assets of its Spanish retail operations. The sale price was $0.3 million. The Company recorded a $0.2 million gain from sale of these retail operations during the second quarter of 2010.

As a result of these events, the Company’s consolidated financial statements reflect the Brazilian, Australian and ICS business units and European retail operations as discontinued operations for the years ended December 31, 2012, 2011 and 2010. Accordingly, revenue, costs and expenses of the discontinued operations have been excluded from the respective captions in the consolidated statements of operations. The net operating results of the discontinued operations have been reported, net of applicable income taxes as income or loss (where applicable) from discontinued operations. Additionally, the assets and liabilities of ICS have been classified as held for sale assets and liabilities and removed from the specific line items on the consolidated balance sheet as of December 31, 2012.

Summarized operating results of the discontinued operations are as follows (in thousands):


	Years Ended December 31,
	2012			2011			2010
Net revenue	$	417,671		$	723,244		$	520,435
Operating expenses		428,902			725,885			515,013

Income (loss) from operations		(11,231	)		(2,641	)		5,422
Interest expense		(513	)		(1,772	)		(169	)
Interest income and other income (expense)		285			(908	)		512
Foreign currency transaction gain (loss)		(2,750	)		(336	)		9,708

Income (loss) before income tax		(14,209	)		(5,657	)		15,473
Income tax (expense) benefit		(6,342	)		175			4,441

Income (loss) from discontinued operations	$	(20,551	)	$	(5,482	)	$	19,914

Summarized assets and liabilities of ICS classified as held for sale as of December 31, 2012 are as follows (in thousands):


Accounts receivable	$	16,070
Prepaid expenses and other current assets		4,196
Restricted cash		487
Long-lived assets		19,313

Assets held for sale	$	40,066

Accounts payable	$	10,580
Accrued interconnection costs		6,961
Accrued expenses and other liabilities		6,763

Liabilities held for sale	$	24,304

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1510-107760

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1474-107760

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1020-107759

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1012-107759

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 45
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=8077374&loc=d3e2443-110228

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2941-110230

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 43-48
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Basic and Diluted Income (Loss) Per Common Share

12 Months Ended

Dec. 31, 2012

Basic and Diluted Income (Loss) Per Common Share

19. BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE

Basic income (loss) per common share is calculated by dividing income (loss) attributable to common stockholders by the weighted average common shares outstanding during the period. Diluted income per common share adjusts basic income per common share for the effects of potentially dilutive common share equivalents.

Potentially dilutive common shares include the dilutive effects of common shares issuable under the Management Compensation Plan, including stock options and restricted stock units (RSUs), using the treasury stock method, as well as the CVRs and Warrants.

The Company had no dilutive common share equivalents during the year ended December 31, 2012, due to the results of operations being a loss from continuing operations, net of tax. For the year ended December 31, 2012, the following were potentially dilutive but were excluded from the calculation of diluted loss per common share due to their antidilutive effect:

•

0.5 million shares issuable upon exercise of stock options and RSUs under the Management Compensation Plan;

•

6.2 million shares issuable upon exercise of Warrants; and

•

3.7 million shares issuable upon exercise of CVRs.

The Company had no dilutive common share equivalents during the year ended December 31, 2011, due to the results of operations being a loss from continuing operations, net of tax. For the year ended December 31, 2011, the following were potentially dilutive but were excluded from the calculation of diluted loss per common share due to their antidilutive effect:

•

0.8 million shares issuable upon exercise of stock options and RSUs under the Management Compensation Plan;

•

4.5 million shares issuable upon exercise of Warrants; and

•

2.7 million shares issuable upon exercise of CVRs.

The Company had no dilutive common share equivalents during the year ended December 31, 2010, due to the results of operations being a loss from continuing operations, net of tax. For the year ended December 31, 2010, the following were potentially dilutive but were excluded from the calculation of diluted loss per common share due to their antidilutive effect:

•

0.6 million shares issuable upon exercise of stock options and RSUs under the Management Compensation Plan;

•

4.5 million shares issuable upon exercise of Warrants; and

•

2.7 million shares issuable upon exercise of CVRs.

A calculation of basic income (loss) per common share to diluted income (loss) per common share is set forth below (in thousands, except per share amounts):


	Years Ended December 31,
	2012			2011			2010
Income (loss) from continuing operations, net of tax	$	(45,827	)	$	(28,467	)	$	(41,927	)
Income (loss) from discontinued operations, net of tax		(20,551	)		(5,482	)		19,914
Gain (loss) from sale of discontinued operations, net of tax		94,265			(4,781	)		2,926

Net income (loss) attributable to Primus Telecommunications Group, Incorporated-basic	$	27,887		$	(38,730	)	$	(19,087	)

Net income (loss) attributable to Primus Telecommunications Group, Incorporated-diluted	$	27,887		$	(38,730	)	$	(19,087	)

Weighted average common shares outstanding-basic		13,844			12,994			9,721

Weighted average common shares outstanding-diluted		13,844			12,994			9,721

Basic income (loss) per common share:
Income (loss) from continuing operations attributable to Primus Telecommunications Group, Incorporated	$	(3.31	)	$	(2.19	)	$	(4.31	)
Income (loss) from discontinued operations		(1.48	)		(0.42	)		2.05
Gain (loss) from sale of discontinued operations		6.81			(0.37	)		0.30

Net income (loss) attributable to Primus Telecommunications Group, Incorporated	$	2.02		$	(2.98	)	$	(1.96	)

Diluted income (loss) per common share:
Income (loss) from continuing operations attributable to Primus Telecommunications Group, Incorporated	$	(3.31	)	$	(2.19	)	$	(4.31	)
Income (loss) from discontinued operations		(1.48	)		(0.42	)		2.05
Gain (loss) from sale of discontinued operations		6.81			(0.37	)		0.30

Net income (loss) attributable to Primus Telecommunications Group, Incorporated	$	2.02		$	(2.98	)	$	(1.96	)

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2012
Subsequent Events	20. SUBSEQUENT EVENTS In accordance with ASC 855-50, “Subsequent Events,” the Company has reviewed subsequent events through the date of the filing and has determined there are no subsequent events that require disclosure.

Schedule ll Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2012

Schedule ll Valuation and Qualifying Accounts

SCHEDULE II

PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED

VALUATION AND QUALIFYING ACCOUNTS

Activity in the Company’s allowance accounts for the years ended December 31, 2012, 2011 and 2010 was as follows (in thousands):


	Doubtful Accounts Receivable
	Balance at		Charged to									Balance at
Period	Beginning of Period		Costs and Expenses			Deductions			Other (1)			End of Period
2010	$	8,163	$	8,392		$	(9,701	)	$	—		$	6,854
2011	$	6,854	$	7,621		$	(6,923	)	$	—		$	7,552
2012	$	7,552	$	4,819		$	(7,411	)	$	(3,189	)	$	1,771

	Deferred Tax Asset Valuation
	Balance at		Charged to									Balance at
Period	Beginning of Period		Costs and Expenses			Deductions			Other			End of Period
2010	$	118,520	$	(24,236	)	$	—		$	—		$	94,284
2011	$	94,284	$	50,327		$	—		$	—		$	144,611
2012	$	144,611	$	4,883		$	—		$	—		$	149,494

(1)	Other contains the allowance for doubtful accounts receivable that was sold in conjunction with the sale of the Company’s Australian segment ($1,859), and the Company’s allowance for doubtful accounts receivable of ICS ($1,330) currently in assets held for sale.

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2012
Principles of Consolidation	Principles of Consolidation—The consolidated financial statements include the Company’s accounts, its wholly-owned subsidiaries and all other subsidiaries over which the Company exerts control. Prior to July 31, 2012, the Company owned 45.6% of Globility Communications Corporation (“Globility”) through direct and indirect ownership structures. As a result of changes to the Telecommunications Act in Canada, the Company is no longer restricted by Canadian foreign ownership laws. Given these changes, Primus Telecommunications International, Inc. (“PTII”) purchased the remaining 54.4% of Globility on July 31, 2012. Prior to the purchase of the remaining 54.4%, the results of Globility and its subsidiary were consolidated with the Company’s results based on guidance from the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 810, “Consolidation” (“ASC 810”). All intercompany profits, transactions and balances have been eliminated in consolidation.
Discontinued Operations	Discontinued Operations—In the second quarter of 2012, the Company sold its Australian segment and committed to dispose of and is actively soliciting a sale or other disposition of its ICS business unit. During 2011, the Company sold its Brazilian segment and in 2010, the Company classified its European retail operations as discontinued operations. The Company has applied retrospective adjustments for 2011 and 2010 to reflect the effects of the discontinued operations that occurred during 2012. Accordingly, revenue, costs and expenses of the discontinued operations have been excluded from the respective captions in the consolidated statements of operations. Additionally, the assets and liabilities of ICS have been classified as held for sale assets and liabilities and removed from the specific line items on the consolidated balance sheet as of December 31, 2012. See Note 18—“Discontinued Operations,” for further information regarding these transactions.
Revenue Recognition and Deferred Revenue	Revenue Recognition and Deferred Revenue—Net revenue is derived from carrying a mix of business, residential and carrier long-distance traffic, data and Internet traffic, and also from the provision of hosting, local and wireless services. For certain voice services, net revenue is earned based on the number of minutes during a call and is recorded upon completion of a call. Revenue for a period is calculated from information received through the Company’s network switches. Customized software has been designed to track the information from the switch and analyze the call detail records against stored detailed information about revenue rates. This software provides the Company the ability to do a timely and accurate analysis of revenue earned in a period. Separate prepaid services software is used to track additional information related to prepaid service usage such as activation date, monthly usage amounts and expiration date. Revenue on these prepaid services is recognized as service is provided until expiration, when all unused minutes, which are no longer available to the customers, are recognized as revenue. Net revenue is also earned on a fixed monthly fee basis for unlimited local and long-distance voice plans and for the provision of data/Internet services (including retail VoIP), hosting, and colocation. Data/Internet services include monthly fees collected for the provision of dedicated and dial-up access at various speeds and bandwidths. These fees are recognized as access is provided on a monthly basis. Additionally, service activation and installation fees are deferred and amortized over the longer of the average customer life or the contract term. The Company records payments received in advance for services and services to be provided under contractual agreements, such as Internet broadband, dial-up access, hosting, and colocation, as deferred revenue until such related services are provided. In the United States, we charge customers Federal Universal Service Fund (“USF”) fees. We recognize revenue on a gross basis for USF and related fees. We record these fees as revenue when billed. Net revenue represents gross revenue, net of allowance for doubtful accounts receivable, service credits and service adjustments.
Presentation of Taxes Collected	Presentation of Taxes Collected—The Company reports any tax assessed by a governmental authority that is directly imposed on a revenue-producing transaction between the Company and a customer (including sales, use, value-added and some excise taxes) on a net basis (excluded from revenues).
Cost of Revenue	Cost of Revenue—Cost of revenue includes network costs that consist of access, transport and termination costs. The majority of the Company’s cost of revenue is variable, primarily based upon minutes of use, with transmission and termination costs being the most significant expense. Cost of revenue also includes fees such as Federal USF fees. Such costs are recognized when incurred in connection with the provision of telecommunications services.
Foreign Currency Transactions	Foreign Currency Transactions—Foreign currency transactions are transactions denominated in a currency other than a subsidiary’s functional currency. A change in the exchange rates between a subsidiary’s functional currency and the currency in which a transaction is denominated increases or decreases the expected amount of functional currency cash flows upon settlement of the transaction. That increase or decrease in expected functional currency cash flows is reported by the Company as a foreign currency transaction gain (loss). The primary component of the Company’s foreign currency transaction gain (loss) is due to agreements in place with certain subsidiaries in foreign countries regarding intercompany transactions. The Company anticipates repayment of these transactions in the foreseeable future, and recognizes the realized and unrealized gains or losses on these transactions that result from foreign currency changes in the period in which they occur as foreign currency transaction gain (loss).
Income Taxes	Income Taxes—The Company recognizes income tax expense for financial reporting purposes following the asset and liability approach for computing deferred income taxes. Under this method, the deferred tax assets and liabilities are determined based on the difference between financial reporting and tax bases of assets and liabilities based on enacted tax rates. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company applies the uncertain tax position-related provisions of ASC No. 740, “Income Taxes” (“ASC 740”) (formerly FIN No. 48, “Accounting for Uncertainty in Income Taxes”). These provisions clarify the accounting for uncertainty in income taxes recognized in the financial statements in accordance with ASC 740.
Foreign Currency Translation	Foreign Currency Translation—The assets and liabilities of the Company’s foreign subsidiaries are translated at the exchange rates in effect on the reporting date. Income and expenses are translated at the average exchange rate during the period. The net effect of such translation gains and losses are reflected within accumulated other comprehensive income (loss) in the stockholders’ equity section of the consolidated balance sheet.
Cash and Cash Equivalents	Cash and Cash Equivalents—Cash and cash equivalents are comprised principally of amounts in money market accounts, operating accounts, certificates of deposit, and overnight repurchase agreements with original maturities of three months or less.
Restricted Cash	Restricted Cash—Restricted cash consists of bank guarantees and certificates of deposit utilized to support letters of credit and contractual obligations.
Accounts Receivable	Accounts Receivable—Accounts receivable is stated at amounts due from customers net of an allowance for doubtful accounts. Our allowance for doubtful accounts considers historical experience, the age of certain receivable balances, current economic conditions and other factors that may affect the counterparty’s ability to pay.
Advertising Costs	Advertising Costs—In accordance with ASC No. 720-35, “Other Expenses—Advertising,” costs for advertising are expensed as incurred. Advertising expense for the years ended December 31, 2012, 2011 and 2010 was $5.3 million, $9.0 million and $8.0 million, respectively.
Property and Equipment	Property and Equipment—Property and equipment are recorded at cost less accumulated depreciation, which is provided on the straight-line method over the estimated useful lives of the assets. Cost includes major expenditures for improvements and replacements which extend useful lives or increase capacity of the assets as well as expenditures necessary to place assets into readiness for use. Expenditures for maintenance and repairs are expensed as incurred. The estimated useful lives of property and equipment are as follows: network equipment—5 to 8 years, fiber optic and submarine cable—8 to 25 years, furniture and equipment—5 years, and leasehold improvements and leased equipment—shorter of lease or useful life. Costs for internal use software that are incurred in the preliminary project stage and in the post-implementation stage are expensed as incurred. Costs incurred during the application development stage are capitalized and amortized over the estimated useful life of the software.
Fiber Optic and Submarine Cable Arrangements	Fiber Optic and Submarine Cable Arrangements—The Company obtains capacity on certain fiber optic and submarine cables under three types of arrangements. The Indefeasible Right of Use (“IRU”) basis provides the Company the right to use a cable for the estimated economic life of the asset according to the terms of the IRU agreement with most of the rights and duties of ownership. The Minimum Assignable Ownership Units (“MAOU”) basis provides the Company an ownership interest in the fiber optic cable with certain rights to control and to manage the facility. The Company accounts for both IRU and MAOU agreements under network equipment and depreciates the recorded asset over the term of the agreement which is generally 25 years. The Company also enters into shorter-term arrangements with other carriers which provide the Company the right to use capacity on a cable but without any rights and duties of ownership. Under these shorter-term arrangements, the costs are expensed in the period the services are provided.
Business Combinations	Business Combinations—The Company is required to allocate the purchase price of acquired companies to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. This valuation requires management to make significant estimates and assumptions, especially with respect to intangible assets associated with such assets. Critical estimates in valuing certain of the intangible assets and subsequently assessing the realizability of such assets include, but are not limited to, future expected cash flows from the revenues, customer contracts and discount rates. Management’s estimates of fair value are based on assumptions believed to be reasonable but which are inherently uncertain and unpredictable. Assumptions may be incomplete or inaccurate and unanticipated events and circumstances may occur. Other estimates associated with the accounting for these acquisitions and subsequent assessment of impairment of the assets may change as additional information becomes available regarding the assets acquired and liabilities assumed.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets—Under ASC No. 350, “Intangibles—Goodwill and Other” (“ASC 350”), goodwill and indefinite lived intangible assets are not amortized but are reviewed annually for impairment, or more frequently, if impairment indicators arise. Intangible assets that have finite lives are amortized over their estimated useful lives and are subject to the provisions of ASC No. 360, “Property, Plant and Equipment” (“ASC 360”). Goodwill impairment is tested at least annually (October 1^st) or when factors indicate potential impairment using a two-step process that begins with an estimation of the fair value of each reporting unit. Step 1 is a screen for potential impairment pursuant to which the estimated fair value of a reporting unit is compared to its carrying value. The Company estimates the fair values of each reporting unit by a combination of (i) estimation of the discounted cash flows of each of the reporting units based on projected earnings in the future (the income approach) and (ii) a comparative analysis of revenue and EBITDA multiples of public companies in similar markets (the market approach). If there is a deficiency (the estimated fair value of a reporting unit is less than its carrying value), a Step 2 test is required. Step 2 measures the amount of impairment loss, if any, by comparing the implied fair value of the reporting unit’s goodwill with its carrying amount. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination is determined; i.e., through an allocation of the fair value of a reporting unit to all of the assets and liabilities of that unit as if the reporting unit had been acquired in a business combination. If the carrying amount of the reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss shall be recognized in an amount equal to that excess. The Company also may utilize the provisions of Accounting Standards Update (“ASU”) No. 2011-08, “Testing Goodwill for Impairment” (“ASU 2011-08”), which allows the Company to use qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company’s reporting units in 2011 were Australia, Canada and US/ICS. In May 2012, the Australian reporting unit was sold, and the reporting units were Canada and US/ICS. Subsequent to classifying ICS as a discontinued operation in the second quarter of 2012, the remaining reporting units are Canada and US. Estimating the fair value of a reporting unit requires various assumptions including projections of future cash flows, perpetual growth rates and discount rates. The assumptions about future cash flows and growth rates are based on the Company’s assessment of a number of factors, including the reporting unit’s recent performance against budget, performance in the market that the reporting unit serves, and industry and general economic data from third party sources. Discount rate assumptions are based on an assessment of the risk inherent in those future cash flows. Changes to the underlying businesses could affect the future cash flows, which in turn could affect the fair value of the reporting unit. Intangible assets not subject to amortization consist of certain trade names. Such indefinite lived intangible assets are tested for impairment annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment test shall consist of a comparison of the fair value of an intangible asset with its carrying amount. If the carrying amount of the intangible asset exceeds its fair value, an impairment loss shall be recognized in an amount equal to the excess. Intangible assets subject to amortization consist of certain trade names and customer relationships. These finite lived intangible assets are amortized based on their estimated useful lives. Such assets are subject to the impairment provisions of ASC 360, wherein impairment is recognized and measured only if there are events and circumstances that indicate that the carrying amount may not be recoverable. The carrying amount is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset group. An impairment loss is recorded if after determining that it is not recoverable, the carrying amount exceeds the fair value of the asset. In addition to the foregoing, the Company reviews its goodwill and intangible assets for possible impairment whenever events or circumstances indicate that the carrying amounts of assets may not be recoverable. The factors that the Company considers important, and which could trigger an impairment review, include, but are not limited to: a significant decline in the market value of our common stock or debt securities for a sustained period; a material adverse change in economic, financial market, industry or sector trends; a material failure to achieve operating results relative to historical levels or projected future levels; and significant changes in operations or business strategy. The current year impairment analysis and carrying values by reporting unit of the goodwill and other indefinite-lived intangible assets are disclosed in Note 5—“Goodwill and Other Intangible Assets.”
Valuation of Long-lived Assets (Held and Used)	Valuation of Long-lived Assets (Held and Used)—The Company reviews long-lived assets whenever events or changes indicate that the carrying amount of an asset may not be recoverable. In making such evaluations, the Company compares the expected undiscounted future cash flows to the carrying amount of the assets. If the total of the expected undiscounted future cash flows is less than the carrying amount of the assets, the Company is required to make estimates of the fair value of the long-lived assets in order to calculate the impairment loss equal to the difference between the fair value and carrying value of the assets. The Company makes significant assumptions and estimates in this process regarding matters that are inherently uncertain, such as determining asset groups and estimating future cash flows, remaining useful lives, discount rates and growth rates. The resulting undiscounted cash flows are projected over an extended period of time, which subjects those assumptions and estimates to an even larger degree of uncertainty. While the Company believes that its estimates are reasonable, different assumptions could materially affect the valuation of the long-lived assets. The Company derives future cash flow estimates from its historical experience and its internal business plans, which include consideration of industry trends, competitive actions, technology changes, regulatory actions, available financial resources for marketing and capital expenditures and changes in its underlying cost structure. The Company has concluded that it has one asset group: the network. This is due to the nature of its telecommunications network which utilizes all of the points of presence (POPs), switches, cables and various other components throughout the network to form seamlessly the telecommunications gateway over which its products and services are carried for any given customer’s phone call or data or Internet transmission. Furthermore, outflows to many of the external network providers are not separately assignable to revenue inflows for any phone call or service plan. The Company makes assumptions about the remaining useful life of its long-lived assets. The assumptions are based on the average life of its historical capital asset additions, its historical asset purchase trend and that its primary assets, its network switches, have an 8-year life. Because of the nature of its industry, the Company also assumes that the technology changes in the industry render all equipment obsolete with no salvage value after their useful lives. In certain circumstances in which the underlying assets could be leased for an additional period of time, the Company includes such estimated cash flows in its estimate. The estimate of the appropriate discount rate to be used to apply the present value technique in determining fair value was the Company’s weighted average cost of capital which is based on the effective rate of its long-term debt obligations at the current market values as well as the current volatility and trading value of the Company’s common stock.
Valuation of Long-lived Assets (Held for Sale)	Valuation of Long-lived Assets (Held for Sale)—In conjunction with the Company’s commitment to dispose of its ICS business, it classified the net assets of ICS as held for sale and is required to measure them at the lower of carrying value or fair value less costs to sell. The Company makes significant assumptions and estimates in the process of determining fair value regarding matters that are inherently uncertain, such as estimating future cash flows, discount rates and growth rates. The resulting cash flows are projected over an extended period of time, which subjects those assumptions and estimates to an even larger degree of uncertainty. While the Company believes that its estimates are reasonable, different assumptions could materially affect the valuation of the net assets of ICS. The current year analysis of carrying value and fair value less costs to sell is disclosed in Note 18—“Discontinued Operations.”
Deferred Financing Costs	Deferred Financing Costs—Deferred financing costs incurred in connection with financing arrangements are reflected within other assets and are amortized over the life of the respective financing arrangements using the effective interest method. As the Company completes debt transactions, corresponding amounts of deferred financing costs are written-off in determining the gain or loss on early extinguishment or restructuring of debt.
Derivative Instruments	Derivative Instruments—Pursuant to the terms of the Company’s 2009 bankruptcy reorganization (the “Reorganization Plan”), the Company issued to holders of the Company’s pre-Reorganization Plan common stock contingent value rights (“CVRs”) to receive shares of Company common stock (subject to adjustment, the “CVR Shares”) in an original aggregate amount of up to 2,665,000 shares. In connection with the issuance of the CVRs, the Company entered into a Contingent Value Rights Distribution Agreement (the “CVR Agreement”), in favor of holders of CVRs thereunder, dated as of July 1, 2009. As a result of the special cash Dividends discussed in Note 10—“Stockholders’ Equity,” antidilution provisions in the CVR Agreement were triggered and the maximum aggregate number of CVR Shares issuable with respect to the CVRs was adjusted upward from 2,665,000 shares to 3,657,157 shares while the strike price with respect to the CVRs was adjusted downward from $35.95 to $26.20. Due to the nature of the CVRs, the Company accounted for the instrument in accordance with ASC No. 815, “Derivatives and Hedging” (“ASC 815”), as well as related interpretations of this standard. The Company determined the CVRs to be derivative instruments to be accounted for as liabilities and marked to fair value at each balance sheet date. Upon issuance, the Company estimated the fair value of its CVRs using a pricing model and consequently recorded a liability of $2.6 million in the balance sheet caption “other liabilities” as part of fresh-start accounting. Post-issuance change in value is reflected in the consolidated statements of operations as gain (loss) from contingent value rights valuation. The Company’s estimates of fair value of its CVRs are correlated to and reflective of PTGi’s common stock price trends; in general, as the value of PTGi’s common stock increases, the estimated fair value of the CVRs also increases and, as a result, the Company recognizes a change in value of its CVRs as loss from contingent value rights valuation. Conversely and also in general, as the value of PTGi’s common stock decreases, the estimated fair value of the CVRs also decreases and as a result the Company recognizes a change in value of the CVRs as gain from contingent value rights valuation. See Note 8—“Fair Value of Financial Instruments and Derivatives.”
Share-Based Compensation	Share-Based Compensation—The Company accounts for share-based compensation under ASC No. 718, “Compensation—Stock Compensation” (formerly SFAS No. 123(R), “Share-Based Payments”) (“ASC 718”), which addresses the accounting for share-based payment transactions whereby an entity receives employee services in exchange for equity instruments, including stock options and restricted stock units. ASC 718 generally requires that share-based compensation be accounted for using a fair-value based method. The Company records share-based compensation expense for all new and unvested stock options that are ultimately expected to vest as the requisite service is rendered. The Company issues new shares of common stock upon the exercise of stock options. The Company elected to adopt the alternative transition method for calculating the tax effects of share-based compensation. The alternative transition method includes simplified methods to determine the beginning balance of the additional paid in capital (“APIC”) pool related to the tax effects of share-based compensation and to determine the subsequent impact on the APIC pool and the statement of cash flows of the tax effects of share-based awards that were fully vested and outstanding upon the adoption of ASC 718. The Company uses a Black-Scholes option valuation model to determine the fair value of share-based compensation under ASC 718. The Black-Scholes model incorporates various assumptions including the expected term of awards, volatility of stock price, risk-free rates of return and dividend yield. The expected term of an award is no less than the option vesting period and is based on the Company’s historical experience. Expected volatility is based upon the historical volatility of the Company’s stock price. The risk-free interest rate is approximated using rates available on U.S. Treasury securities with a remaining term similar to the option’s expected life. The Company uses a dividend yield of zero in the Black-Scholes option valuation model as it does not anticipate paying cash dividends in the foreseeable future. Share-based compensation is recorded net of expected forfeitures.
Use of Estimates	Use of Estimates—The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of net revenue and expenses during the reporting period. Actual results may differ from these estimates. Significant estimates include allowance for doubtful accounts receivable, accrued interconnection cost disputes, the fair value of derivatives, market assumptions used in estimating the fair values of certain assets and liabilities, the calculation used in determining the fair value of the PTGi’s stock options required by ASC 718, income taxes and various tax contingencies. Estimates of fair value represent the Company’s best estimates developed with the assistance of independent appraisals or various valuation techniques and, where the foregoing have not yet been completed or are not available, industry data and trends and by reference to relevant market rates and transactions. The estimates and assumptions are inherently subject to significant uncertainties and contingencies beyond the control of the Company. Accordingly, the Company cannot provide assurance that the estimates, assumptions, and values reflected in the valuations will be realized, and actual results could vary materially. Any adjustments to the recorded fair values of these assets and liabilities, as related to business combinations and subsequent impairment assessment of goodwill, may impact the amount of recorded goodwill.
Concentration of Credit Risk	Concentration of Credit Risk—Financial instruments that potentially subject the Company to concentration of credit risk principally consist of trade accounts receivable. The Company performs ongoing credit evaluations of its larger carrier and retail business customers but generally does not require collateral to support customer receivables. The Company maintains its cash with high quality credit institutions, and its cash equivalents are in high quality securities.
Income (Loss) Per Common Share	Income (Loss) Per Common Share—Basic income (loss) per common share is computed using the weighted average number of shares of common stock outstanding during the year. Diluted income (loss) per common share is computed using the weighted average number of shares of common stock, adjusted for the dilutive effect of potential common stock and related income from continuing operations, net of tax. Potential common stock, computed using the treasury stock method or the if-converted method, includes options, restricted stock units, warrants and convertible debt securities.
Reclassification	Reclassification—Certain previous year amounts have been reclassified to conform with current year presentations, as related to the reporting of the Company’s discontinued operations. In addition, certain amounts in selling, general and administrative expense related to our BLACKIRON Data operating segment were reclassified to cost of revenue as part of the Company’s new operating segment structure discussed in Note 14—“Operating Segment and Related Information.”
Newly Adopted Accounting Principles	Newly Adopted Accounting Principles In May 2011, an update was issued to the Fair Value Measurement Topic ASC No. 820, ASU 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs,” which provides guidance on how to measure fair value and on what disclosures to provide about fair value measurements. It seeks to develop a single, converged fair value framework between the FASB and the International Financial Reporting Standards (“IFRS”) Board. On January 1, 2012, the Company adopted this update, which did not have a material impact on the consolidated financial statements. In June 2011, an update was issued to the Comprehensive Income Topic ASC No. 220, ASU 2011-05, “Presentation of Comprehensive Income,” which provides guidance to all entities that report items of other comprehensive income, in any period presented. Under the amendments in this update, an entity has the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. In a single continuous statement, the entity is required to present the components of net income and total net income, the components of other comprehensive income and a total for other comprehensive income, along with the total of comprehensive income in that statement. In the two-statement approach, an entity is required to present components of net income and total net income in the statement of net income. The statement of other comprehensive income should immediately follow the statement of net income and include the components of other comprehensive income and a total for other comprehensive income, along with a total for comprehensive income. ASU 2011-05 also contains a provision that requires the entity to present on the face of the financial statements reclassification adjustments for items that are reclassified from other comprehensive income to net income in the statements where the components of net income and the components of other comprehensive income are presented. In December 2011, an update was issued to the Comprehensive Income Topic ASC No. 220, ASU 2011-12, “Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05,” which indefinitely deferred the requirement to present the reclassification adjustments out of other comprehensive income. On January 1, 2012, the Company adopted these updates, which did not have a material impact on the consolidated financial statements. In September 2011, an update was issued to the Intangibles—Goodwill and Other Topic ASC No. 350, ASU 2011-08, “Testing Goodwill for Impairment,” which provides guidance to all entities, both public and nonpublic, that have goodwill reported in their financial statements. Under the amendments in this update, an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. However, if an entity concludes otherwise, then it is required to perform the first step of the two-step impairment test by calculating the fair value of the reporting unit and comparing the fair value with the carrying amount of the reporting unit. If the carrying amount of a reporting unit exceeds its fair value, then the entity is required to perform the second step of the goodwill impairment test to measure the amount of the impairment loss. An entity has the option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the first step of the two-step goodwill impairment test. An entity may resume performing the qualitative assessment in any subsequent period. On January 1, 2012, the Company adopted this update, which did not have a material impact on the consolidated financial statements. New Accounting Pronouncements In December 2011, an update was issued to the Balance Sheet Topic ASC No. 210, ASU 2011-11, “Disclosures about Offsetting Assets and Liabilities,” which contains new disclosure requirements regarding the nature of an entity’s right of setoff and related arrangements associated with its financial instruments and derivative instruments. The new disclosures are designed to make financial statements that are prepared under U.S. GAAP more comparable to those prepared under IFRSs. Generally, it is more difficult to qualify for offsetting under IFRSs than it is under U.S. GAAP because under U.S. GAAP certain derivative and repurchase agreement arrangements are granted exceptions from the general offsetting model. As a result, entities with significant financial instrument and derivative portfolios that report under IFRSs typically present positions on their balance sheets that are significantly larger than those of entities with similarly sized portfolios whose financial statements are prepared in accordance with U.S. GAAP. To facilitate comparison between financial statements prepared under U.S. GAAP and IFRSs, the new disclosures will give financial statement users information about both gross and net exposures. The Company’s effective date for adoption is January 1, 2014 and it does not foresee this accounting update having a material effect on its consolidated financials in future periods, although that could change. In July 2012, an update was issued to the Intangibles—Goodwill and Other Topic ASC No. 350, ASU 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment,” which provides guidance to all entities, both public and nonpublic, that have indefinite-lived intangible assets, other than goodwill, reported in their financial statements. Under the amendments in this update, an entity has the option first to assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the indefinite-lived intangible asset is impaired. If, after assessing the totality of events and circumstances, an entity concludes that it is not more likely than not that the indefinite-lived intangible asset is impaired, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying amount. An entity has the option to bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to performing the quantitative impairment test. An entity will be able to resume performing the qualitative assessment in any subsequent period. The Company’s effective date for adoption is January 1, 2013 and it does not foresee this accounting update having a material effect on its consolidated financials in future periods, although that could change.

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2012

Components of Consideration Transferred

The components of the consideration transferred follow (in thousands):


Consideration attributable to stock issued (1)	$	50,432
Consideration attributable to earned replaced equity awards (2)		177

Total consideration transferred	$	50,609

(1)	The fair value of PTGi’s common stock on the acquisition date was $15.60 per share based on the closing value of its common stock traded on the over-the-counter bulletin board. PTGi issued 3,232,812 shares of stock to effect this merger.

(2)

Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed (in thousands):


Cash and cash equivalents	$	12,415
Marketable securities		4,044
Accounts receivable		16,205
Other current assets		884
Property and equipment (1)		17,336
Intercompany receivable		309
Goodwill (2)		20,585
Customer list (3)		900
Exchange license (3)		2,800
Other intangible assets (3)		700
Other assets		1,738

Total assets acquired	$	77,916

Trade payables	$	18,311
Accrued interconnection costs		105
Accrued liabilities		3,122
Other current liabilities		3,082
Current portion of long-term obligations		68
Long-term obligations		99
Other long-term liabilities		2,520

Total liabilities assumed	$	27,307

Net assets acquired	$	50,609

(1)

(2)

(3)

Unlimitel Inc. and HMNET Technologies, Inc. Acquisitions [Member]

Schedule of Purchase Price Allocation


Cash and cash equivalents	$	331
Property and equipment		136
Identifiable intangible asset:
Customer relationships		1,229
Goodwill		1,842
Other assets and liabilities, net		(119	)
Deferred income tax		(318	)

Allocation of purchase consideration	$	3,101

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2012

Summary of Property and Equipment

Property and equipment consisted of the following (in thousands):


	December 31,			December 31,
	2012			2011
Network equipment	$	115,315		$	246,889
Furniture and equipment		4,652			4,453
Leasehold improvements		3,348			11,299
Construction in progress		6,291			4,800

Subtotal		129,606			267,441
Less: accumulated depreciation		(64,291	)		(115,261	)

Total property and equipment, net	$	65,315		$	152,180

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2012

Intangible Assets Not Subject to Amortization

The Company’s intangible assets not subject to amortization consisted of the following (in thousands):


	December 31, 2012		December 31, 2011
Goodwill	$	60,744	$	71,902
Trade Names	$	27,000	$	76,900

Goodwill

The changes in the carrying amount of goodwill by reporting unit for the years ended December 31, 2012 and 2011 are as follows (in thousands):


	United States			Canada			Australia			Brazil			Total
Balance as of December 31, 2010	$	29,960		$	31,775		$	1,950		$	46		$	63,731
Effect of change in foreign currency exchange rates		—			(798	)		(13	)		(4	)		(815	)
Acquisition (disposition) of business		21,865			1,842			—			(42	)		23,665
Accumulated impairment loss		(14,679	)		—			—			—			(14,679	)

Balance as of December 31, 2011	$	37,146		$	32,819		$	1,937		$	—		$	71,902

Effect of change in foreign currency exchange rates		—			863			(4	)		—			859
Acquisition (disposition) of business		(1,280	)		480			(1,933	)		—			(2,733	)
Allocation to disposal group		(9,284	)		—			—			—			(9,284	)

Balance as of December 31, 2012	$	26,582		$	34,162		$	—		$	—		$	60,744

Trade Names

The changes in the carrying amount of trade names by reporting unit for the years ended December 31, 2012 and 2011 are as follows (in thousands):


	United States			Canada		Australia		Brazil		Total
Balance as of December 31, 2010	$	76,200		$	—	$	—	$	—	$	76,200
Acquisition (disposition) of business		700			—		—		—		700

Balance as of December 31, 2011	$	76,900		$	—	$	—	$	—	$	76,900

Acquisition (disposition) of business		(39,200	)		—		—		—		(39,200	)
Reclassification to held for sale		(700	)		—		—		—		(700	)
Accumulated impairment loss		(10,000	)		—		—		—		(10,000	)

Balance as of December 31, 2012	$	27,000		$	—	$	—	$	—	$	27,000

Intangible Assets Subject to Amortization

Intangible assets subject to amortization consisted of the following (in thousands):


	December 31, 2012							December 31, 2011
	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Trade Names	$	3,500	$	(1,140	)	$	2,360	$	3,500	$	(790	)	$	2,710
Licenses		—		—			—		2,800		(233	)		2,567
Customer relationships		94,142		(60,478	)		33,664		106,199		(52,699	)		53,500

Total	$	97,642	$	(61,618	)	$	36,024	$	112,499	$	(53,722	)	$	58,777

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References + Details

Long-Term Obligations (Tables)

12 Months Ended

Dec. 31, 2012

Long-Term Obligations

Long-term obligations consisted of the following (in thousands):


	December 31, 2012			December 31, 2011
Obligations under capital leases and other	$	101		$	11,696
13% Senior Secured Notes due 2016		2,403			2,403
10% Senior Secured Notes due 2017		12,692			235,231
10% Senior Secured Exchange Notes due 2017		112,587			—

Subtotal	$	127,783		$	249,330
Original issue discount on Senior Secured Notes		(671	)		(1,568	)

Subtotal	$	127,112		$	247,762
Less: Current portion of long-term obligations		(66	)		(1,948	)

Total long-term obligations	$	127,046		$	245,814

Contractual Payments of Principal and Interest for Company's Long-Term Obligations

The following table reflects the contractual payments of principal and interest for the Company’s long-term obligations as of December 31, 2012:


Year Ending December 31,	Capital Leases and Other			13% Senior Secured Notes due 2016			10% Senior Secured Notes due 2017			10% Senior Secured Exchange Notes due 2017			Total
2013	$	73		$	312		$	1,269		$	10,383		$	12,037
2014		31			312			1,269			11,259			12,871
2015		6			312			1,269			11,259			12,846
2016		—			2,716			1,269			11,259			15,244
2017		—			—			13,327			118,217			131,544
Thereafter		—			—			—			—			—

Total minimum principal & interest payments		110			3,652			18,403			162,377			184,542
Less: Amount representing interest		(9	)		(1,249	)		(5,711	)		(49,790	)		(56,759	)

Total long-term obligations	$	101		$	2,403		$	12,692		$	112,587		$	127,783

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6584090&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28541-108399

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 22
-Article 5

+ Details

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Provisions (Benefits) for Income Taxes

The provisions (benefits) for income taxes for the years ended December 31, 2012, 2011 and 2010 are as follows (in thousands):


	2012			2011			2010
Current: Federal	$	725		$	1,401		$	1,158
State		242			133			103
Foreign		(1,363	)		1,671			856

Subtotal Current		(396	)		3,205			2,117
Deferred: Federal		(3,890	)		—			—
State		—			—			—
Foreign		(232	)		(1,923	)		(8,632	)

Subtotal Deferred		(4,122	)		(1,923	)		(8,632	)

Income tax (benefit) expense	$	(4,518	)	$	1,282		$	(6,515	)

Components of Income from Continuing Operations Before Income Taxes

The US and foreign components of income from continuing operations before income taxes for the years ended December 31, 2012, 2011 and 2010 are as follows (in thousands):


	Years Ended December 31,
	2012			2011			2010
US	$	(113,153	)	$	(40,910	)	$	(44,727	)
Foreign		62,790			19,186			(3,820	)

Income from continuing operations before income taxes	$	(50,363	)	$	(21,724	)	$	(48,547	)

Federal Statutory Income Tax Rate to Income (Loss) Before Income Taxes


	Years Ended December 31,
	2012			2011			2010
Tax provision (benefit) at federal statutory rate	$	(17,627	)	$	(7,603	)	$	(16,991	)
Permanent differences		27,090			(9,399	)		1,121
State tax (net of federal benefit)		180			(87	)		67
Effect of foreign tax rate change		(424	)		2,441			5,619
Foreign withholding taxes (net of federal)		755			(563	)		(4,790	)
Uncertain tax positions		(1,172	)		1,712			(1,826	)
Increase (decrease) in valuation allowance		(9,039	)		14,561			10,251
Tax-book fresh-start valuation difference		(3,890	)		—			—
Other		(391	)		220			34

Income tax (benefit) expense	$	(4,518	)	$	1,282		$	(6,515	)

Net Deferred Tax Assets and Liabilities

Net deferred tax balances are comprised of the following as of December 31, 2012 and 2011 (in thousands):


	As of December 31,
	2012			2011
Deferred tax assets	$	182,604		$	195,569
Valuation allowance		(149,494	)		(144,611	)
Deferred tax liabilities		(43,613	)		(79,305	)

Net deferred taxes	$	(10,503	)	$	(28,347	)

Significant Components of Company's Deferred Tax Assets and Liabilities

The significant components of the Company’s deferred tax assets and liabilities are as follows as of December 31, 2012 and 2011 (in thousands):


	As of December 31,
	2012			2011
Current
Allowance for bad debt	$	1,055		$	2,411
Basis difference in intangibles		—			—
Other		5,411			7,589
Valuation allowance		(6,466	)		(8,624	)

Total Current	$	—		$	1,376
Non-current
Basis difference in intangibles	$	(10,308	)	$	(38,547	)
Bond related adjustments		(3,631	)		(4,498	)
Capital loss carryforwards		23,990			24,306
Net operating loss carryforwards		103,023			106,283
Basis difference in fixed assets		19,311			29,952
Unrealized foreign exchange gains		(4	)		(2,995	)
Basis difference in foreign accounts receivable		(413	)		(12,718	)
Other		558			4,480
Valuation allowance		(143,029	)		(135,986	)

Total Non-current	$	(10,503	)	$	(29,723	)

Unrecognized Tax Benefits


	Years Ended December 31,
	2012			2011			2010
Balance at Januarly 1,	$	86,206		$	88,299		$	89,716
Foreign currency adjustments		—			(152	)		1,372
Statute expiration		(1,172	)		—			(6,270	)
Gross increases (decreases) of tax positions in prior period		(21,496	)		(2,112	)		(3,452	)
Audit resolution		—			—			(1,609	)
Gross increases of tax positions in current period		2,623			171			8,304
Penalties and interest		—			—			238

Balance at December 31,	$	66,161		$	86,206		$	88,299

Open Tax Years for Each Major Jurisdiction

The following table summarizes the open tax years for each major jurisdiction:


Jurisdiction		Open Tax Years
United States Federal		2002-2012
Canada		2004-2012
United Kingdom		2004-2012
Netherlands		2007-2012

Fair Value of Financial Instruments and Derivatives (Tables)

12 Months Ended

Dec. 31, 2012

Summary of Company's Financial Instruments Accounted for at Fair Value on Recurring Basis

See the table below for a summary of the Company’s financial instruments accounted for at fair value on a recurring basis:


			Fair Value as of December 31, 2012, using:
	December 31, 2012		Quoted prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Liabilities:
Contingent Value Rights (CVRs)	$	14,904		—		14,904		—

Total	$	14,904		—		14,904		—


			Fair Value as of December 31, 2011, using:
	December 31, 2011		Quoted prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Liabilities:
Contingent Value Rights (CVRs)	$	16,196		—		16,196		—

Total	$	16,196		—		16,196		—

Summary of Company's Financial Instruments Accounted for at Fair Value on Nonrecurring Basis

See the table below for a summary of the Company’s financial instruments accounted for at fair value on a nonrecurring basis:


			Fair Value as of December 31, 2012, using:
	December 31, 2012		Quoted prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Goodwill	$	60,744		—		—		60,744
Trade Names		27,000		—		—		27,000
Net assets held for sale		15,762		—		—		15,762

Total	$	103,506		—		—		103,506


			Fair Value as of December 31, 2011, using:
	December 31, 2011		Quoted prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Goodwill	$	71,902		—		—		71,902
Trade Names		76,900		—		—		76,900
Net assets held for sale		—		—		—		—

Total	$	148,802		—		—		148,802

- Definition

Tabular disclosure of liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

+ References + Details

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2012

Purchase Obligations and Non-Cancellable Operating Leases, Including Continuing Obligations of Discontinued Operations


Year Ending December 31,	Purchase Obligations		Operating Leases
2013	$	4,244	$	12,560
2014		3,591		9,577
2015		41		7,743
2016		—		6,332
2017		—		5,790
Thereafter		—		14,282

Total minimum principal & interest payments		7,876		56,284
Less: Amount representing interest		—		—

Total long-term obligations	$	7,876	$	56,284

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2012

Summary of Special Cash Dividends

Special Cash Dividend Per Share

$1.00

$2.50

$0.50

Declaration Date

June 20, 2012

November 14, 2012

December 11, 2012

Holders of Record Date

July 2, 2012

November 27, 2012

December 21, 2012

Payment Date

July 16, 2012

December 11, 2012

December 28, 2012

Total Dividend

13,804

34,551

6,910

Reconciliation of Common Shares

The following table provides a reconciliation of beginning and ending shares (in thousands):


	Years Ended December 31,
	2012			2011			2010
Common Shares:
Beginning balance		13,741			9,801			9,600
Stock consideration issued for Merger		—			3,233			—
Purchase of treasury stock		—			(32	)		—
Restricted stock award		—			165			—
Common shares issued for the exercise of stock options		11			125			—
Common shares withheld to settle tax liability—stock options		(1	)		(10	)		—
Common shares issued for restricted stock units		273			477			260
Common shares withheld to settle tax liability—restricted stock units		(91	)		(18	)		(59	)
Common shares issued for the exercise of Warrants		1			—			—

Ending balance		13,934			13,741			9,801

Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2012

Fair Value of Each Option Grant Estimated

The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions shown as a weighted average for the year:


	Years Ended December 31,
	2012		2011		2010
Expected option life		4 - 5.75 Years		6 Years		4 Years
Risk-free interest rate		0.57 - 0.89%		1.12 - 1.91%		1.20%
Expected volatility		35.83 - 36.64%		41.25 - 43.32%		47.00%
Dividend yield		0%		0%		0%

Summary of Company's Restricted Stock Units

A summary of PTGi’s restricted stock units activity during the years ended December 31, 2012 and 2011 is as follows:


	Shares			Weighted Average Grant Date Fair Value
Unvested—January 1, 2011		474,851		$	8.14
Granted		679,598		$	14.26
Vested		(467,186	)	$	9.93
Forfeitures		(35,869	)	$	13.18

Unvested—December 31, 2011		651,394		$	13.01

Granted		62,000		$	16.48
Vested		(371,277	)	$	13.33
Forfeitures		(55,909	)	$	15.17

Unvested—December 31, 2012		286,208		$	12.91

Summary of Company's Stock Options and Stock Appreciation Rights

A summary of PTGi’s stock options and stock appreciation rights activity during the years ended December 31, 2012 and 2011 is as follows:


	Shares			Weighted Average Exercise Price
Outstanding—January 1, 2011		185,300		$	11.34
Granted		41,666		$	11.92
Exercised		(109,626	)	$	12.48
Forfeitures		(75,455	)	$	14.22
Arbinet merger		87,195		$	14.99

Outstanding—December 31, 2011		129,080		$	11.34

Granted		430,972		$	11.01
Exercised		(11,214	)	$	11.62
Forfeitures		(336,594	)	$	12.23

Outstanding—December 31, 2012		212,244		$	9.24

Eligible for exercise		156,550		$	8.56

Intrinsic Values and Remaining Contractual Terms of Company's Stock Options and Stock Appreciation Rights

The following table summarizes the intrinsic values and remaining contractual terms of PTGi’s stock options and stock appreciation rights:


	Intrinsic Value		Weighted Average Remaining Life in Years
Options outstanding—December 31, 2012	$	438,871		8.0
Options exercisable—December 31, 2012		397,143		7.5

Operating Segment and Related Information (Tables)

12 Months Ended

Dec. 31, 2012

Summary of Company's Operating Segments

Summary information with respect to the Company’s operating segments is as follows (in thousands):


	Years Ended December 31,
	2012			2011			2010
Net Revenue by Geographic Region
United States	$	37,253		$	44,774		$	50,832
Canada		223,301			246,612			231,185

Total	$	260,554		$	291,386		$	282,017

Net Revenue by Segment
BLACKIRON Data	$	33,734		$	30,791		$	27,068
North America Telecom		226,820			260,023			254,841
Other		—			572			108

Total	$	260,554		$	291,386		$	282,017

Provision for Doubtful Accounts Receivable
BLACKIRON Data	$	110		$	287		$	246
North America Telecom		2,137			3,901			4,108
Other		—			—			—

Total	$	2,247		$	4,188		$	4,354

Income (Loss) from Operations
BLACKIRON Data	$	6,337		$	6,487		$	4,904
North America Telecom		19,709			29,042			8,280
Other		—			(331	)		(1,472	)

Total From Operating Segments		26,046			35,198			11,712
Corporate		(34,709	)		(20,293	)		(17,576	)

Total	$	(8,663	)	$	14,905		$	(5,864	)

Capital Expenditures
BLACKIRON Data	$	15,695		$	9,779		$	5,429
North America Telecom		8,684			6,472			6,464
Other (1)		7,072			14,848			14,528

Total From Operating Segments		31,451			31,099			26,421
Corporate		296			434			—

Total	$	31,747		$	31,533		$	26,421

(1)	“Other” also includes capital expenditures related to discontinued operations

Segment Reporting for Property and Equipment - Net

The above capital expenditures exclude assets acquired under terms of capital lease and vendor financing obligations.


	December 31, 2012		December 31, 2011
Property and Equipment—Net
United States	$	804	$	3,643
Canada		62,519		54,674
Other (1)		1,992		93,863

Total	$	65,315	$	152,180


	December 31, 2012		December 31, 2011
Assets
United States	$	73,143	$	122,170
Canada		180,369		194,531
Other (1)		47,678		227,123

Total	$	301,190	$	543,824

(1)	“Other” also includes property and equipment—net and assets of discontinued operations.

Net Revenue Information with Respect to Company's Products

The Company offers three main products—Retail Voice, Data/Internet and Retail VoIP. Net revenue information with respect to the Company’s products is as follows (in thousands):


	Years Ended December 31,
	2012		2011		2010
Retail Voice	$	156,515	$	191,226	$	188,289
Data/Internet		72,717		68,881		62,688
Retail VoIP		31,322		31,279		31,040

Total	$	260,554	$	291,386	$	282,017

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References + Details

Quarterly Results of Operations (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Quarterly Results of Operations

The following is a tabulation of the unaudited quarterly results of operations for the years ended December 31, 2012 and 2011.


	Quarters Ended
	(in thousands, except per share amounts)
	March 31, 2012			June 30, 2012			September 30, 2012			December 31, 2012 (1)
Net revenue	$	68,002		$	65,388		$	63,911		$	63,253
Cost of revenue (exclusive of depreciation)		33,505			32,290			31,511			27,957
Income (loss) from operations		(299	)		(2,731	)		1,492			(7,125	)

Income (loss) from continuing operations, net of tax		(11,470	)		(9,645	)		(22,578	)		(2,134	)
Income (loss) from discontinued operations, net of tax		4,612			(20,162	)		(2,459	)		(2,542	)
Gain (loss) from sale of discontinued operations, net of tax		—			98,666			—			(4,401	)

Net income (loss) attributable to Primus Telecommunications Group, Incorporated-basic	$	(6,858	)	$	68,859		$	(25,037	)	$	(9,077	)

Net income (loss) attributable to Primus Telecommunications Group, Incorporated-diluted	$	(6,858	)	$	68,859		$	(25,037	)	$	(9,077	)

Weighted average common shares outstanding-basic		13,744			13,839			13,890			13,901

Weighted average common shares outstanding-diluted		13,744			13,839			13,890			13,901

Basic income (loss) per common share:
Income (loss) from continuing operations attributable to Primus Telecommunications Group, Incorporated	$	(0.83	)	$	(0.70	)	$	(1.63	)	$	(0.15	)
Income (loss) from discontinued operations		0.34			(1.46	)		(0.18	)		(0.18	)
Gain (loss) from sale of discontinued operations		—			7.13			—			(0.32	)

Net income (loss) attributable to Primus Telecommunications Group, Incorporated	$	(0.49	)	$	4.97		$	(1.81	)	$	(0.65	)

Diluted income (loss) per common share:
Income (loss) from continuing operations attributable to Primus Telecommunications Group, Incorporated	$	(0.83	)	$	(0.70	)	$	(1.63	)	$	(0.15	)
Income (loss) from discontinued operations		0.34			(1.46	)		(0.18	)		(0.18	)
Gain (loss) from sale of discontinued operations		—			7.13			—			(0.32	)

Net income (loss) attributable to Primus Telecommunications Group, Incorporated	$	(0.49	)	$	4.97		$	(1.81	)	$	(0.65	)


	Quarters Ended
	(in thousands, except per share amounts)
	March 31, 2011			June 30, 2011			September 30, 2011			December 31, 2011 (2)
Net revenue	$	72,197		$	74,995		$	74,308		$	69,886
Cost of revenue (exclusive of depreciation)		35,633			37,230			36,808			33,676
Income (loss) from operations		169			(964	)		1,575			14,125

Income (loss) from continuing operations, net of tax		(8,455	)		(9,175	)		(5,128	)		(5,709	)
Income (loss) from discontinued operations, net of tax		(10,800	)		2,833			(4,882	)		7,367
Gain (loss) from sale of discontinued operations, net of tax		—			—			—			(4,781	)

Net income (loss) attributable to Primus Telecommunications Group, Incorporated-basic	$	(19,255	)	$	(6,342	)	$	(10,010	)	$	(3,123	)

Net income (loss) attributable to Primus Telecommunications Group, Incorporated-diluted	$	(19,255	)	$	(6,342	)	$	(10,010	)	$	(3,123	)

Weighted average common shares outstanding-basic		11,148			13,385			13,715			13,697

Weighted average common shares outstanding-diluted		11,148			13,385			13,715			13,697

Basic income (loss) per common share:
Income (loss) from continuing operations attributable to Primus Telecommunications Group, Incorporated	$	(0.76	)	$	(0.69	)	$	(0.37	)	$	(0.42	)
Income (loss) from discontinued operations		(0.97	)		0.21			(0.36	)		0.54
Gain (loss) from sale of discontinued operations		—			—			—			(0.35	)

Net income (loss) attributable to Primus Telecommunications Group, Incorporated	$	(1.73	)	$	(0.48	)	$	(0.73	)	$	(0.23	)

Diluted income (loss) per common share:
Income (loss) from continuing operations attributable to Primus Telecommunications Group, Incorporated	$	(0.76	)	$	(0.69	)	$	(0.37	)	$	(0.42	)
Income (loss) from discontinued operations		(0.97	)		0.21			(0.36	)		0.54
Gain (loss) from sale of discontinued operations		—			—			—			(0.35	)

Net income (loss) attributable to Primus Telecommunications Group, Incorporated	$	(1.73	)		$(0.48)		$	(0.73	)	$	(0.23	)

(1)	Income (loss) from operations includes an accrual reversal of $2.7 million related to Harmonized Sales Tax (HST) of North America Telecom and an impairment charge of $10.0 million related to the indefinite-lived US trade name, “Primus Telecommunications”.

(2)	Income (loss) from operations includes a gain on the sale of assets in the amount of $13.1 million related to Globility’s sale of fixed wireless spectrum licenses.

Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2012

Summarized Operating Results of Discontinued Operations

Summarized operating results of the discontinued operations are as follows (in thousands):


	Years Ended December 31,
	2012			2011			2010
Net revenue	$	417,671		$	723,244		$	520,435
Operating expenses		428,902			725,885			515,013

Income (loss) from operations		(11,231	)		(2,641	)		5,422
Interest expense		(513	)		(1,772	)		(169	)
Interest income and other income (expense)		285			(908	)		512
Foreign currency transaction gain (loss)		(2,750	)		(336	)		9,708

Income (loss) before income tax		(14,209	)		(5,657	)		15,473
Income tax (expense) benefit		(6,342	)		175			4,441

Income (loss) from discontinued operations	$	(20,551	)	$	(5,482	)	$	19,914

Summarized assets and liabilities of ICS classified as held for sale as of December 31, 2012 are as follows (in thousands):


Accounts receivable	$	16,070
Prepaid expenses and other current assets		4,196
Restricted cash		487
Long-lived assets		19,313

Assets held for sale	$	40,066

Accounts payable	$	10,580
Accrued interconnection costs		6,961
Accrued expenses and other liabilities		6,763

Liabilities held for sale	$	24,304

- Definition

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

+ References + Details

Basic and Diluted Income (Loss) Per Common Share (Tables)

12 Months Ended

Dec. 31, 2012

Basic Income (Loss) Per Common Share to Diluted Income (Loss) Per Common Share

A calculation of basic income (loss) per common share to diluted income (loss) per common share is set forth below (in thousands, except per share amounts):


	Years Ended December 31,
	2012			2011			2010
Income (loss) from continuing operations, net of tax	$	(45,827	)	$	(28,467	)	$	(41,927	)
Income (loss) from discontinued operations, net of tax		(20,551	)		(5,482	)		19,914
Gain (loss) from sale of discontinued operations, net of tax		94,265			(4,781	)		2,926

Net income (loss) attributable to Primus Telecommunications Group, Incorporated-basic	$	27,887		$	(38,730	)	$	(19,087	)

Net income (loss) attributable to Primus Telecommunications Group, Incorporated-diluted	$	27,887		$	(38,730	)	$	(19,087	)

Weighted average common shares outstanding-basic		13,844			12,994			9,721

Weighted average common shares outstanding-diluted		13,844			12,994			9,721

Basic income (loss) per common share:
Income (loss) from continuing operations attributable to Primus Telecommunications Group, Incorporated	$	(3.31	)	$	(2.19	)	$	(4.31	)
Income (loss) from discontinued operations		(1.48	)		(0.42	)		2.05
Gain (loss) from sale of discontinued operations		6.81			(0.37	)		0.30

Net income (loss) attributable to Primus Telecommunications Group, Incorporated	$	2.02		$	(2.98	)	$	(1.96	)

Diluted income (loss) per common share:
Income (loss) from continuing operations attributable to Primus Telecommunications Group, Incorporated	$	(3.31	)	$	(2.19	)	$	(4.31	)
Income (loss) from discontinued operations		(1.48	)		(0.42	)		2.05
Gain (loss) from sale of discontinued operations		6.81			(0.37	)		0.30

Net income (loss) attributable to Primus Telecommunications Group, Incorporated	$	2.02		$	(2.98	)	$	(1.96	)

Organization and Business - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2012 Center City Carriers Country
Business And Organization [Line Items]
Number of countries with an open network \| Country	150
Grade international gateway and domestic switching systems [Member]
Business And Organization [Line Items]
Number of devices \| Carriers	13
Canada [Member]
Business And Organization [Line Items]
Number of data centers \| Center	8
Number of cities \| City	5

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Jul. 31, 2012	Jul. 02, 2012	Jul. 01, 2009
Related Party Transaction [Line Items]
Advertising expense	$ 5.3	$ 9.0	$ 8.0
Useful life of intangible asset	25 years
Contingent value rights ("CVRs") [Member]
Related Party Transaction [Line Items]
Total common stock shares issued					3,657,157	2,665,000
Price per common stock shares issued					$ 26.20	$ 35.95
Estimated fair value recorded in "other liabilities"						$ 2.6
Black-Scholes option valuation model [Member]
Related Party Transaction [Line Items]
Dividend yield in Black-Scholes valuation model	$ 0
Globility Communications Corporation [Member]
Related Party Transaction [Line Items]
Percentage ownership through direct and indirect ownership structures				45.60%
Globility Canada [Member]
Related Party Transaction [Line Items]
Purchase of Globility in Canada				54.40%
Fiber optic and submarine cable [Member] \| Minimum [Member]
Related Party Transaction [Line Items]
Estimated useful lives of property and equipment	8 years
Fiber optic and submarine cable [Member] \| Maximum [Member]
Related Party Transaction [Line Items]
Estimated useful lives of property and equipment	25 years
Network equipment [Member] \| Minimum [Member]
Related Party Transaction [Line Items]
Estimated useful lives of property and equipment	5 years
Network equipment [Member] \| Maximum [Member]
Related Party Transaction [Line Items]
Estimated useful lives of property and equipment	8 years
Furniture and equipment [Member]
Related Party Transaction [Line Items]
Estimated useful lives of property and equipment	5 years

Acquisitions - Additional Information (Detail) $ in Thousands	1 Months Ended	12 Months Ended
	Feb. 28, 2011 shares	Dec. 31, 2012 USD ($)	Mar. 31, 2012 USD ($)	Jun. 30, 2011 USD ($)	Mar. 31, 2011 USD ($)
Business Acquisition [Line Items]
Stock consideration issued for merger, shares \| shares	3,232,812
Useful life of intangible asset		25 years
Arbinet Corporation Acquisition [Member]
Business Acquisition [Line Items]
Date of acquisition		Feb. 28, 2011
Shares received of PTGi common stock	0.5817
Stock consideration issued for merger, shares \| shares	3,232,812
Additional shares reserved for issuance \| shares	95,000
Unlimitel Inc. and HMNET Technologies, Inc. Acquisitions [Member]
Business Acquisition [Line Items]
Total consideration \| $					$ 3,100
Total cash paid \| $		$ 400	$ 1,400	$ 300	$ 1,000
Goodwill \| $		$ 1,842
Unlimitel Inc. and HMNET Technologies, Inc. Acquisitions [Member] \| Customer relationships [Member]
Business Acquisition [Line Items]
Useful life of intangible asset		5 years

Acquisitions - Components of Consideration Transferred (Detail) - USD ($) $ in Thousands	Dec. 31, 2011	Feb. 28, 2011
Business Acquisition [Line Items]
Consideration attributable to stock issued		$ 50,432
Consideration attributable to earned replaced equity awards		177
Total consideration transferred	$ 50,609	$ 50,609

- Definition

The acquisition-date fair value of the equity interests of the acquirer, including the number of instruments or interests issued or issuable in consideration for the business combination.

+ References + Details

- Definition

This element represents the acquisition-date fair value of the total consideration transferred which consists of the sum of the acquisition-date fair values of the assets transferred by the acquirer, the liabilities incurred by the acquirer to former owners of the acquiree, and the equity interests issued by the acquirer.

+ References + Details

Acquisitions - Components of Consideration Transferred (Parenthetical) (Detail)	1 Months Ended
	Feb. 28, 2011 $ / shares shares
Business Acquisition [Line Items]
Fair value of common stock on acquisition date \| $ / shares	$ 15.60
Stock consideration issued for merger, shares \| shares	3,232,812
Percentage of unvested and outstanding awards vested	50.00%

- Definition

Number of shares of stock issued during the period pursuant to acquisitions.

+ References + Details

Acquisitions - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2012 USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of assets acquired	$ 77,916
Fair value of liabilities assumed	27,307
Net assets acquired	50,609
Cash and cash equivalents [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of assets acquired	12,415
Marketable securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of assets acquired	4,044
Accounts receivable [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of assets acquired	16,205
Other current assets [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of assets acquired	884
Property and equipment [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of assets acquired	17,336
Intercompany receivable [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of assets acquired	309
Goodwill [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of assets acquired	20,585
Customer list [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of assets acquired	900
Exchange license [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of assets acquired	2,800
Other intangible assets [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of assets acquired	700
Other assets [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of assets acquired	1,738
Trade payables [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of liabilities assumed	18,311
Accrued interconnection costs [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of liabilities assumed	105
Accrued liabilities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of liabilities assumed	3,122
Other current liabilities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of liabilities assumed	3,082
Current portion of long-term obligations [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of liabilities assumed	68
Long-term obligations [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of liabilities assumed	99
Other long-term liabilities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of liabilities assumed	$ 2,520

Acquisitions - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Parenthetical) (Detail)	12 Months Ended
	Dec. 31, 2012
Property and equipment [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Weighted average cost of capital	13.00%
Gross margin	7.20%
Customer list [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amortization period	15 years
Exchange license [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amortization period	10 years

Acquisitions - Schedule of Purchase Price Allocation (Detail) - Unlimitel Inc. and HMNET Technologies, Inc. Acquisitions [Member] $ in Thousands	Dec. 31, 2012 USD ($)
Business Acquisition [Line Items]
Cash and cash equivalents	$ 331
Property and equipment	136
Identifiable intangible asset:
Customer relationships	1,229
Goodwill	1,842
Other assets and liabilities, net	(119)
Deferred income tax	(318)
Allocation of purchase consideration	$ 3,101

Property and Equipment - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Property, Plant and Equipment [Line Items]
Property and equipment	$ 129,606	$ 267,441
Less: accumulated depreciation	(64,291)	(115,261)
Total property and equipment, net	65,315	152,180
Network equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	115,315	246,889
Furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	4,652	4,453
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	3,348	11,299
Construction in progress [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	$ 6,291	$ 4,800

- Definition

The cumulative amount of depreciation, depletion and amortization (related to property, plant and equipment, but not including land) that has been recognized in the income statement.

+ References + Details

Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Property, Plant and Equipment [Line Items]
Equipment under capital lease	$ 3,800	$ 18,300
Accumulated depreciation	2,200	2,800
Depreciation and amortization expense	43,239	65,148	$ 68,220
Property and equipment [Member]
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 19,600	$ 18,900	$ 19,800

Goodwill and Other Intangible Assets - Intangible Assets Not Subject to Amortization (Detail) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Schedule Of Goodwill And Other Intangible Assets [Line Items]
GOODWILL	$ 60,744	$ 71,902	$ 63,731
Trade Names	$ 27,000	$ 76,900	$ 76,200

- Definition

Carrying amount as of the balance sheet date, which is the cumulative amount paid and (if applicable) the fair value of any noncontrolling interest in the acquiree, adjusted for any amortization recognized prior to the adoption of any changes in generally accepted accounting principles (as applicable) and for any impairment charges, in excess of the fair value of net assets acquired in one or more business combination transactions.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13816-109267

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6388280&loc=d3e13770-109266

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 43
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 72
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-Clause 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 68
-Subparagraph l
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		12 Months Ended
	Jun. 30, 2012	Dec. 31, 2012	Jun. 30, 2012	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Feb. 28, 2011	Nov. 10, 2010
Indefinite-lived Intangible Assets [Line Items]
Stock consideration for acquisition of Arbinet							$ 50,600
Closing price							$ 15.60	$ 9.57
Goodwill impairment charge				$ 14,700
Weighted average costs of capital				14.50%
Allocation of goodwill to disposal group	$ 9,284	$ 9,284	$ 9,284	$ 9,284
Sale of Trademarks of Primus Australia			39,200
Deferred tax liabilities	15,200	29,700	$ 15,200	29,700
Asset impairment expense		10,000		10,000
Indefinite-lived trade names reclassified as held for sale	$ 700			700
Amortization expense for trade names, licenses and customer relationships				11,400	$ 16,500	$ 20,400
Remainder of 2012		8,400		8,400
2013		6,200		6,200
2014		4,700		4,700
2015		3,600		3,600
2016		2,900		2,900
Thereafter		$ 10,200		$ 10,200

Goodwill and Other Intangible Assets - Goodwill (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Jun. 30, 2012
Goodwill [Line Items]
Goodwill, Beginning Balance	$ 71,902	$ 63,731
Effect of change in foreign currency exchange rates	859	(815)
Acquisition (disposition) of business	(2,733)	23,665
Accumulated impairment loss		(14,679)
Allocation to disposal group	(9,284)		$ (9,284)
Goodwill, Ending Balance	60,744	71,902
United States [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	37,146	29,960
Effect of change in foreign currency exchange rates
Acquisition (disposition) of business	(1,280)	21,865
Accumulated impairment loss		(14,679)
Allocation to disposal group	(9,284)
Goodwill, Ending Balance	26,582	37,146
Canada [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	32,819	31,775
Effect of change in foreign currency exchange rates	863	(798)
Acquisition (disposition) of business	480	1,842
Accumulated impairment loss
Allocation to disposal group
Goodwill, Ending Balance	34,162	32,819
Australia [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	1,937	1,950
Effect of change in foreign currency exchange rates	(4)	(13)
Acquisition (disposition) of business	(1,933)
Accumulated impairment loss
Allocation to disposal group
Goodwill, Ending Balance		1,937
Brazil [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance		46
Effect of change in foreign currency exchange rates		(4)
Acquisition (disposition) of business		(42)
Accumulated impairment loss
Allocation to disposal group
Goodwill, Ending Balance

Goodwill and Other Intangible Assets - Trade Names (Detail) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jun. 30, 2012	Dec. 31, 2012	Dec. 31, 2011
Indefinite-lived Intangible Assets [Line Items]
Trade Names, Beginning Balance		$ 76,900	$ 76,200
Acquisition (disposition) of business		(39,200)	700
Reclassification to held for sale	$ (700)	(700)
Accumulated impairment loss		(10,000)
Trade Names, Ending Balance		27,000	76,900
United States [Member]
Indefinite-lived Intangible Assets [Line Items]
Trade Names, Beginning Balance		76,900	76,200
Acquisition (disposition) of business		(39,200)	700
Reclassification to held for sale		(700)
Accumulated impairment loss		(10,000)
Trade Names, Ending Balance		27,000	76,900
Canada [Member]
Indefinite-lived Intangible Assets [Line Items]
Trade Names, Beginning Balance
Acquisition (disposition) of business
Reclassification to held for sale
Accumulated impairment loss
Trade Names, Ending Balance
Australia [Member]
Indefinite-lived Intangible Assets [Line Items]
Trade Names, Beginning Balance
Acquisition (disposition) of business
Reclassification to held for sale
Accumulated impairment loss
Trade Names, Ending Balance
Brazil [Member]
Indefinite-lived Intangible Assets [Line Items]
Trade Names, Beginning Balance
Acquisition (disposition) of business
Reclassification to held for sale
Accumulated impairment loss
Trade Names, Ending Balance

Goodwill and Other Intangible Assets - Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 97,642	$ 112,499
Accumulated Amortization	(61,618)	(53,722)
Net Book Value	36,024	58,777
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	3,500	3,500
Accumulated Amortization	(1,140)	(790)
Net Book Value	2,360	2,710
Licenses [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount		2,800
Accumulated Amortization		(233)
Net Book Value		2,567
Customer relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	94,142	106,199
Accumulated Amortization	(60,478)	(52,699)
Net Book Value	$ 33,664	$ 53,500

Long-Term Obligations - Long-Term Obligations (Detail) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Debt Instrument [Line Items]
Obligations under capital leases and other	$ 101	$ 11,696
Subtotal	127,783	249,330
Original issue discount on Senior Secured Notes	(671)	(1,568)
Subtotal	127,112	247,762
Less: Current portion of long-term obligations	(66)	(1,948)
Total long-term obligations	127,046	245,814
13% Senior Secured Notes due 2016 [Member]
Debt Instrument [Line Items]
Senior Secured Notes	2,403	2,403
10% Senior Secured Notes due 2017 [Member]
Debt Instrument [Line Items]
Senior Secured Notes	12,692	$ 235,231
10% Senior Secured Exchange Notes due 2017 [Member]
Debt Instrument [Line Items]
Senior Secured Notes	$ 112,587

Long-Term Obligations - Contractual Payments of Principal and Interest for Company's Long-Term Obligations (Detail) $ in Thousands	Dec. 31, 2012 USD ($)
Debt Instrument [Line Items]
2013	$ 73
2014	31
2015	6
2016
2017
Thereafter
Total minimum principal & interest payments	110
Less: Amount representing interest	(9)
Total long-term obligations	101
Long term debt maturities
2013	12,037
2014	12,871
2015	12,846
2016	15,244
2017	131,544
Thereafter
Total minimum principal & interest payments	184,542
Less: Amount representing interest	(56,759)
Total long-term obligations	127,783
13% Senior Secured Notes due 2016 [Member]
Long term debt maturities
2013	312
2014	312
2015	312
2016	2,716
2017
Thereafter
Total minimum principal & interest payments	3,652
Less: Amount representing interest	(1,249)
Total long-term obligations	2,403
10% Senior Secured Notes due 2017 [Member]
Long term debt maturities
2013	1,269
2014	1,269
2015	1,269
2016	1,269
2017	13,327
Thereafter
Total minimum principal & interest payments	18,403
Less: Amount representing interest	(5,711)
Total long-term obligations	12,692
10% Senior Secured Exchange Notes due 2017 [Member]
Long term debt maturities
2013	10,383
2014	11,259
2015	11,259
2016	11,259
2017	118,217
Thereafter
Total minimum principal & interest payments	162,377
Less: Amount representing interest	(49,790)
Total long-term obligations	$ 112,587

Long-Term Obligations - Additional Information (Detail) - USD ($)	1 Months Ended		3 Months Ended	12 Months Ended
	Dec. 19, 2012	Nov. 14, 2012	Sep. 30, 2011	Dec. 31, 2012	Nov. 30, 2012	Sep. 17, 2012	Dec. 31, 2011	Jul. 31, 2011
Debt Instrument [Line Items]
Restructuring of debt			$ 6,900,000
Percentage of redemption from aggregate principal amount				100.00%
Non U S subsidiaries [Member]
Debt Instrument [Line Items]
Capital stock held by foreign subsidiary				65.00%
14 1/4% Senior Subordinated Secured Notes due 2013 [Member]
Debt Instrument [Line Items]
Senior Secured Notes				14.25%
13% Senior Secured Notes due 2016 [Member]
Debt Instrument [Line Items]
Principal amount outstanding				$ 2,400,000			$ 2,400,000
Senior Secured Notes				13.00%
Installment period of Notes payable in cash				June 15 and December 15 of each year
Senior Secured Notes, maturity date				Dec. 16, 2016
10% Senior Secured Notes due 2017 [Member]
Debt Instrument [Line Items]
Principal amount outstanding				$ 12,700,000
Senior Secured Notes				10.00%
Installment period of Notes payable in cash				April 15 and October 15 of each year
Senior Secured Notes, maturity date				Apr. 15, 2017
Aggregate principal amount issued	$ 23,800,000	$ 86,900,000		$ 240,200,000	$ 79,700,000			$ 240,200,000
Aggregate principal amount issued pursuant to Exchange Offers				228,600,000
Aggregate principal amount exchanged pursuant				$ 11,600,000
Percentage of redemption from aggregate principal amount				35.00%
Percentage of redemption premium				110.00%
Repurchase of Notes at a purchase price				100.00%
Selling of notes at a purchase price				100.00%
Aggregate principal amount						$ 119,000,000	$ 5,000,000
Purchase price in cash						109.00%
Premiums and other costs				$ 10,900,000
Deferred financing costs				9,500,000
Original issue discount included in gain (loss) on early extinguishment or restructuring of debt				700,000
Percentage of face value							99.00%
Aggregate principal amount exchanged				112,600,000
Premium paid to exchanging holders				9,100,000
10% Senior Secured Exchange Notes due 2017 [Member]
Debt Instrument [Line Items]
Aggregate principal amount issued					$ 86,900,000
Aggregate principal amount exchanged	$ 25,700,000	$ 79,700,000
Restricted payment on notes				$ 50,000,000

Income Taxes - Provisions (Benefits) for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Schedule Of Components Of Income Tax Expense Benefit [Line Items]
Current: Federal	$ 725	$ 1,401	$ 1,158
State	242	133	103
Foreign	(1,363)	1,671	856
Subtotal Current	(396)	3,205	2,117
Deferred: Federal	(3,890)
State
Foreign	(232)	(1,923)	(8,632)
Subtotal Deferred	(4,122)	(1,923)	(8,632)
Income tax (benefit) expense	$ (4,518)	$ 1,282	$ (6,515)

Income Taxes - Components of Income from Continuing Operations Before Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income From Continuing Operations Before Income Taxes And Interest In Earnings Of Associates [Line Items]
US	$ (113,153)	$ (40,910)	$ (44,727)
Foreign	62,790	19,186	(3,820)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	$ (50,363)	$ (21,724)	$ (48,547)

Income Taxes - Federal Statutory Income Tax Rate to Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income Loss From Operations Before Provision Benefit For Income Taxes [Line Items]
Tax provision (benefit) at federal statutory rate	$ (17,627)	$ (7,603)	$ (16,991)
Permanent differences	27,090	(9,399)	1,121
State tax (net of federal benefit)	180	(87)	67
Effect of foreign tax rate change	(424)	2,441	5,619
Foreign withholding taxes (net of federal)	755	(563)	(4,790)
Uncertain tax positions	(1,172)	1,712	(1,826)
Increase (decrease) in valuation allowance	(9,039)	14,561	10,251
Tax-book fresh-start valuation difference	(3,890)
Other	(391)	220	34
Income tax (benefit) expense	$ (4,518)	$ 1,282	$ (6,515)

Income Taxes - Net Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Schedule Of Deferred Income Tax Assets And Liabilities [Line Items]
Deferred tax assets	$ 182,604	$ 195,569
Valuation allowance	(149,494)	(144,611)
Deferred tax liabilities	(43,613)	(79,305)
Net deferred taxes	$ (10,503)	$ (28,347)

Income Taxes - Significant Components of Company's Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Significant Components Of Deferred Tax Assets And Liabilities [Line Items]
Allowance for bad debt, Current	$ 1,055	$ 2,411
Basis difference in intangibles, Current
Other, Current	5,411	7,589
Valuation allowance, Current	(6,466)	(8,624)
Total Current		1,376
Basis difference in intangibles, Non-current	(10,308)	(38,547)
Bond related adjustments, Non-current	(3,631)	(4,498)
Capital loss carryforwards, Non-current	23,990	24,306
Net operating loss carryforwards, Non-current	103,023	106,283
Basis difference in fixed assets, Non-current	19,311	29,952
Unrealized foreign exchange gains, Non-current	(4)	(2,995)
Basis difference in foreign accounts receivable, Non-current	(413)	(12,718)
Other	558	4,480
Valuation allowance, Non-current	(143,029)	(135,986)
Total Non-current, Non-current	$ (10,503)	$ (29,723)

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008	Jun. 30, 2012	Feb. 28, 2011
Income Taxes Disclosure [Line Items]
Net operating loss carryforwards subject to annual limitation	$ 1,600
Ownership change, date	Jul. 01, 2009
Annual limitation on ownership change	$ 7,000
Additional annual limitations to NOL	1,600
Net unrealized built-in loss acquired annual limitations	8,000
Increase in deferred tax liabilities and goodwill	55,700
Increase in the value of certain indefinite lived intangibles	29,700					$ 15,200
Deferred tax liabilities removed as part of sale disposition of Australia and due to impairment of fresh-start intangibles	19,200
Deferred tax liabilities other	10,500
Foreign withholding tax expense	(800)	$ (1,000)	$ (900)
Withholding tax rate			0.00%	4.00%	7.00%
Provision on undistributed earnings of foreign subsidiary	0
Total unrecognized tax benefits	66,161	$ 86,206	$ 88,299	$ 89,716
Unrecognized tax benefits would affect the effective tax rate	4,000
Arbinet Corporation Acquisition [Member]
Income Taxes Disclosure [Line Items]
Net operating loss carryforwards subject to annual limitation	2,200						$ 2,200
Foreign [Member]
Income Taxes Disclosure [Line Items]
Foreign operating loss carryforwards	104,400
Foreign operating loss carryforwards, expires from 2012 through 2031	36,400
United States [Member]
Income Taxes Disclosure [Line Items]
Foreign operating loss carryforwards	209,800
Carryforward NOL	75,500
Deductions from stock compensation plan	2,400
United States [Member] \| Subject to limitation [Member]
Income Taxes Disclosure [Line Items]
Operating loss carryforwards limit amount under Internal Revenue Code	134,300
United States [Member] \| Not subject to limitation [Member]
Income Taxes Disclosure [Line Items]
Operating loss carryforwards limit amount under Internal Revenue Code	$ 75,500
Maximum [Member] \| Foreign [Member]
Income Taxes Disclosure [Line Items]
Foreign operating loss carryforwards, expiration period	2032
Maximum [Member] \| United States [Member]
Income Taxes Disclosure [Line Items]
Foreign operating loss carryforwards, expiration period	2032
Minimum [Member] \| Foreign [Member]
Income Taxes Disclosure [Line Items]
Foreign operating loss carryforwards, expiration period	2013
Minimum [Member] \| United States [Member]
Income Taxes Disclosure [Line Items]
Foreign operating loss carryforwards, expiration period	2015

Income Taxes - Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Reconciliation Of Unrecognized Tax Benefits [Line Items]
Unrecognized tax benefits beginning Balance	$ 86,206	$ 88,299	$ 89,716
Foreign currency adjustments		(152)	1,372
Statute expiration	(1,172)		(6,270)
Gross increases (decreases) of tax positions in prior period	(21,496)	(2,112)	(3,452)
Audit resolution			(1,609)
Gross increases of tax positions in current period	2,623	171	8,304
Penalties and interest			238
Unrecognized tax benefits ending Balance	$ 66,161	$ 86,206	$ 88,299

Income Taxes - Open Tax Years for Each Major Jurisdiction (Detail)	12 Months Ended
	Dec. 31, 2012
United States Federal [Member]
Income Tax Contingency [Line Items]
Open tax years beginning	2002
Open tax years ending	2012
Canada [Member]
Income Tax Contingency [Line Items]
Open tax years beginning	2004
Open tax years ending	2012
United Kingdom [Member]
Income Tax Contingency [Line Items]
Open tax years beginning	2004
Open tax years ending	2012
Netherlands [Member]
Income Tax Contingency [Line Items]
Open tax years beginning	2007
Open tax years ending	2012

Fair Value of Financial Instruments and Derivatives - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated aggregate fair value of the Company's debt, based on quoted market prices	$ 125.4	$ 235.4
Aggregate carrying value of the Company's debt	$ 127.0	$ 236.1
Contingent Value Rights (CVRs) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Expected life	6 years 6 months	7 years 6 months
Risk-free rate		1.44%
Expected volatility	40.96%	48.17%
Dividend yield	0.00%	0.00%
Exercise price	$ 26.20	$ 35.95
Stock price	$ 10.87	$ 12.66
Income (expense) recognized	$ 1.3	$ 2.9	$ (13.7)
Contingent Value Rights (CVRs) [Member] \| Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Risk-free rate	0.11%
Contingent Value Rights (CVRs) [Member] \| Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Risk-free rate	2.43%

Fair Value of Financial Instruments and Derivatives - Summary of Company's Financial Instruments Accounted for at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 14,904	$ 16,196
Fair value on a recurring basis [Member] \| Contingent Value Rights (CVRs) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	14,904	16,196
Quoted prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total
Quoted prices in Active Markets for Identical Assets (Level 1) [Member] \| Fair value on a recurring basis [Member] \| Contingent Value Rights (CVRs) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	14,904	16,196
Significant Other Observable Inputs (Level 2) [Member] \| Fair value on a recurring basis [Member] \| Contingent Value Rights (CVRs) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	14,904	16,196
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total
Significant Unobservable Inputs (Level 3) [Member] \| Fair value on a recurring basis [Member] \| Contingent Value Rights (CVRs) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total

Fair Value of Financial instruments and Derivatives - Summary of Company's Financial Instruments Accounted for at Fair Value on Nonrecurring Basis (Detail) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
GOODWILL	$ 60,744	$ 71,902	$ 63,731
Trade Names	27,000	76,900	$ 76,200
Total	103,506	148,802
Fair value on a nonrecurring basis [Member] \| Goodwill [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
GOODWILL	60,744	71,902
Fair value on a nonrecurring basis [Member] \| Trade Names [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trade Names	27,000	76,900
Fair value on a nonrecurring basis [Member] \| Net assets held for sale [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net assets held for sale	15,762
Quoted prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total
Quoted prices in Active Markets for Identical Assets (Level 1) [Member] \| Fair value on a nonrecurring basis [Member] \| Goodwill [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
GOODWILL
Quoted prices in Active Markets for Identical Assets (Level 1) [Member] \| Fair value on a nonrecurring basis [Member] \| Trade Names [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trade Names
Quoted prices in Active Markets for Identical Assets (Level 1) [Member] \| Fair value on a nonrecurring basis [Member] \| Net assets held for sale [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net assets held for sale
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total
Significant Other Observable Inputs (Level 2) [Member] \| Fair value on a nonrecurring basis [Member] \| Goodwill [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
GOODWILL
Significant Other Observable Inputs (Level 2) [Member] \| Fair value on a nonrecurring basis [Member] \| Trade Names [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trade Names
Significant Other Observable Inputs (Level 2) [Member] \| Fair value on a nonrecurring basis [Member] \| Net assets held for sale [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net assets held for sale
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	103,506	148,802
Significant Unobservable Inputs (Level 3) [Member] \| Fair value on a nonrecurring basis [Member] \| Goodwill [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
GOODWILL	60,744	71,902
Significant Unobservable Inputs (Level 3) [Member] \| Fair value on a nonrecurring basis [Member] \| Trade Names [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trade Names	27,000	$ 76,900
Significant Unobservable Inputs (Level 3) [Member] \| Fair value on a nonrecurring basis [Member] \| Net assets held for sale [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net assets held for sale	$ 15,762

Commitments and Contingencies - Purchase Obligations and Non-Cancellable Operating Leases, Including Continuing Obligations of Discontinued Operations (Detail) $ in Thousands	Dec. 31, 2012 USD ($)
Purchase Obligations
2013	$ 4,244
2014	3,591
2015	41
2016
2017
Thereafter
Total minimum principal & interest payments	7,876
Less: Amount representing interest
Total long-term obligations	7,876
Operating Leases
2013	12,560
2014	9,577
2015	7,743
2016	6,332
2017	5,790
Thereafter	14,282
Total minimum principal & interest payments	56,284
Less: Amount representing interest
Total long-term obligations	$ 56,284

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Commitments And Contingencies Disclosure [Line Items]
Purchase commitments	$ 8.5	$ 15.5	$ 28.9
Rent expense	$ 5.1	$ 6.5	$ 6.8

Stockholders' Equity - Additional Information (Detail) $ / shares in Units, $ in Millions	1 Months Ended			12 Months Ended
	Aug. 31, 2011 USD ($)	Jul. 09, 2009 shares	Jul. 01, 2009 d $ / shares $ / Warrant shares	Dec. 31, 2012 USD ($) $ / shares shares	Dec. 31, 2011 $ / shares shares	Dec. 31, 2010 shares	Dec. 31, 2009 shares
Common stock, shares outstanding				13,933,529	13,741,020	9,801,000	9,600,000
Warrant expired date			Jul. 01, 2014
Trading days \| d			10
Immediate preceding exceeds the exercise price			150.00%
Percentage cash dividend from net income				45.00%
Dividend equivalent amount of each Dividend per RSU or share of restricted stock \| $				$ 1.3
Stock repurchase program \| $	$ 15.0
Shares repurchased					31,626
Weighted average price \| $ / shares					$ 11.92
Contingent Value Rights (CVRs) [Member]
Shares issued to contingent value rights		2,665,000
Strike price \| $ / shares			$ 35.95
Company EBITDA \| $				$ 100.0
Distribution of CVR shares				45 days
Excess Equity Value exceeds \| $				$ 1.0
Decrease in Strike Price per share \| $ / shares				$ 26.20
Increase in number of Shares				3,657,157
Class A-1 [Member]
Number of warrants entitled for purchase			1,000,000
Exercise price per share \| $ / Warrant			12.22
Decrease in exercise price per share \| $ / shares				$ 8.91
Increase in number of warrants entitled for purchase				1,370,658
Class A-2 [Member]
Number of warrants entitled for purchase			1,000,000
Exercise price per share \| $ / Warrant			16.53
Decrease in exercise price per share \| $ / shares				$ 12.05
Increase in number of warrants entitled for purchase				1,372,293
Class A-3 [Member]
Number of warrants entitled for purchase			1,000,000
Exercise price per share \| $ / Warrant			20.50
Decrease in exercise price per share \| $ / shares				$ 14.93
Increase in number of warrants entitled for purchase				1,372,293
Class A warrants [Member]
Aggregate amount of common stock			1,000,000
Class B warrants [Member]
Aggregate amount of common stock			1,500,000
Exercise price per share \| $ / Warrant			26.01
Class B [Member]
Decrease in exercise price per share \| $ / shares				$ 18.96
Increase in number of warrants entitled for purchase				2,058,438

Stockholders' Equity - Summary of Special Cash Dividends (Detail) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2012 USD ($) $ / shares
$1.00 Special Cash Dividend Per Share [Member]
Dividends Payable [Line Items]
Special Cash Dividend Per Share \| $ / shares	$ 1.00
Declaration Date	Jun. 20, 2012
Holders of Record Date	Jul. 02, 2012
Payment Date	Jul. 16, 2012
Total Dividend \| $	$ 13,804
$2.50 Special Cash Dividend Per Share [Member]
Dividends Payable [Line Items]
Special Cash Dividend Per Share \| $ / shares	$ 2.50
Declaration Date	Nov. 14, 2012
Holders of Record Date	Nov. 27, 2012
Payment Date	Dec. 11, 2012
Total Dividend \| $	$ 34,551
$0.50 Special Cash Dividend Per Share [Member]
Dividends Payable [Line Items]
Special Cash Dividend Per Share \| $ / shares	$ 0.50
Declaration Date	Dec. 11, 2012
Holders of Record Date	Dec. 21, 2012
Payment Date	Dec. 28, 2012
Total Dividend \| $	$ 6,910

Stockholders' Equity - Reconciliation of Common Shares (Detail) - shares	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Common Shares [Line Items]
Common Shares, Beginning balance	13,741,020	9,801,000	9,600,000
Stock consideration issued for Merger		3,233,000
Purchase of treasury stock		(32,000)
Restricted stock award		165,000
Common shares issued for the exercise of stock options	11,000	125,000
Common shares withheld to settle tax liability-stock options	(1,000)	(10,000)
Common shares issued for restricted stock units	273,000	477,000	260,000
Common shares withheld to settle tax liability-restricted stock units	(91,000)	(18,000)	(59,000)
Common shares issued for the exercise of Warrants	1,000
Common Shares, Ending balance	13,933,529	13,741,020	9,801,000

Share-Based Compensation - Additional Information (Detail) - USD ($)	1 Months Ended	12 Months Ended
	Feb. 28, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted		430,972	41,666
Weighted average fair value at date of grant for options granted		$ 1.63	$ 5.11	$ 3.07
Total share-based compensation expense recognized		$ 5,200,000	$ 5,200,000	$ 1,600,000
Weighted average exercise price of options granted		$ 10.39
Options forfeited		332,374
Weighted average exercise price of options forfeited		$ 12.22
Intrinsic value of options exercised		$ 397,143
RSU [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested outstanding		286,208	651,394	474,851
Compensation expense		$ 1,700,000
Weighted average remaining period		1 year 3 months 18 days
Unvested shares expected to vest		300,000
Stock Options and Stock Appreciation Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted		430,972	41,666
Weighted average remaining period		1 year 2 months 12 days
Weighted average exercise price of options granted		$ 11.01	$ 11.92
Options forfeited		336,594	75,455
Weighted average exercise price of options forfeited		$ 12.23	$ 14.22
Unvested stock options and stock appreciation rights outstanding		56,000
Options exercised		11,214	109,626
Intrinsic value of options exercised		$ 39,000
Compensation expense		$ 200,000
Unvested shares expected to vest		51,000
Weighted average remaining life		7 years 10 months 24 days
Weighted average exercise price		$ 9.19
Intrinsic value		$ 42,000
Arbinet Corporation Acquisition [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Reserved additional shares of common stock for issuance	95,000

Share-Based Compensation - Fair Value of Each Option Grant Estimated (Detail)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Expected option life		6 years	4 years
Risk-free interest rate			1.20%
Expected volatility			47.00%
Dividend yield		0.00%	0.00%
Minimum [Member]
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Expected option life	4 years
Risk-free interest rate	0.57%	1.12%
Expected volatility	35.83%	41.25%
Maximum [Member]
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Expected option life	5 years 9 months
Risk-free interest rate	0.89%	1.91%
Expected volatility	36.64%	43.32%
Dividend yield	0.00%

Share-Based Compensation - Summary of Company's Restricted Stock Units (Detail) - RSU [Member] - $ / shares	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Summary of Company's restricted stock units, Shares
Shares, Beginning Balance, Unvested	651,394	474,851
Shares, Granted	62,000	679,598
Shares, Vested	(371,277)	(467,186)
Shares, Forfeitures	(55,909)	(35,869)
Shares, Ending Balance, Unvested	286,208	651,394
Summary of Company's restricted stock units, Weighted Average Exercise Price
Weighted Average Grant Date Fair Value, Beginning balance	$ 13.01	$ 8.14
Weighted Average Grant Date Fair Value, Granted	16.48	14.26
Weighted Average Grant Date Fair Value, Vested	13.33	9.93
Weighted Average Grant Date Fair Value, Forfeitures	15.17	13.18
Weighted Average Grant Date Fair Value, Ending balance	$ 12.91	$ 13.01

Share-Based Compensation - Summary of Company's Stock Options and Stock Appreciation Rights (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Summary of Company's stock options and stock appreciation rights, Shares
Shares, Granted	430,972	41,666
Shares, Forfeitures	(332,374)
Summary of Company's stock options and stock appreciation rights, Weighted Average Exercise Price
Weighted Average Exercise Price, Granted	$ 10.39
Weighted Average Exercise Price, Forfeitures	$ 12.22
Stock Options and Stock Appreciation Rights [Member]
Summary of Company's stock options and stock appreciation rights, Shares
Shares, Beginning balance	129,080	185,300
Shares, Granted	430,972	41,666
Shares, Exercised	(11,214)	(109,626)
Shares, Forfeitures	(336,594)	(75,455)
Shares, Arbinet merger		87,195
Shares, Ending balance	212,244	129,080
Shares, Eligible for exercise	156,550
Summary of Company's stock options and stock appreciation rights, Weighted Average Exercise Price
Weighted Average Exercise Price, Beginning balance	$ 11.34	$ 11.34
Weighted Average Exercise Price, Granted	11.01	11.92
Weighted Average Exercise Price, Exercised	11.62	12.48
Weighted Average Exercise Price, Forfeitures	12.23	14.22
Weighted Average Exercise Price, Arbinet merger		14.99
Weighted Average Exercise Price, Ending balance	9.24	$ 11.34
Weighted Average Exercise Price, Eligible for exercise	$ 8.56

Share-Based Compensation - Intrinsic Values and Remaining Contractual Terms of Company's Stock Options and Stock Appreciation Rights (Detail)	12 Months Ended
	Dec. 31, 2012 USD ($)
Weighted Average Remaining Life in Years, Options outstanding	8 years
Weighted Average Remaining Life in Years, Options exercisable	7 years 6 months
Intrinsic Value, Options outstanding	$ 438,871
Intrinsic Value, Options exercisable	$ 397,143

Employee Benefit Plans - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2012 USD ($) yr	Dec. 31, 2011 USD ($)	Dec. 31, 2010 USD ($)
Employers matching contribution, annual vesting percentage	50.00%
Percentage of employee annual salary contributions	6.00%
Employee annual salary contributions capped	$ 6,000
Cliff vesting period \| yr	3
Matching contribution	$ 368,000	$ 385,000	$ 206,000

Related Parties- Additional Information (Detail) $ in Millions	1 Months Ended
	Sep. 17, 2012 USD ($)
Related Party Transaction [Line Items]
Percentage of Notes	10.00%
Singer Children Management Trust [Member]
Related Party Transaction [Line Items]
Aggregate principal amount	$ 3.9
Purchase price	4.3
Other entities associated with the Singer family [Member]
Related Party Transaction [Line Items]
Aggregate principal amount	13.3
Purchase price	14.5
Phoenix Partners, L.P. [Member]
Related Party Transaction [Line Items]
Aggregate principal amount	5.3
Purchase price	5.8
Entities affiliated with Morgens, Waterfall, Vintiadis & Company, Inc., [Member]
Related Party Transaction [Line Items]
Aggregate principal amount	5.2
Purchase price	5.6
Archer Capital Master Fund, L.P. [Member]
Related Party Transaction [Line Items]
Aggregate principal amount	20.5
Purchase price	22.4
Other entities affiliated with Canton Holdings, L.L.C. [Member]
Related Party Transaction [Line Items]
Aggregate principal amount	8.9
Purchase price	9.7
Primus Telecommunications Holding, Inc. [Member]
Related Party Transaction [Line Items]
Aggregate principal amount	$ 119.0
Purchase price in cash	109.00%
Percentage of Notes	10.00%

Operating Segment and Related Information - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2012 Segment Customer Product
Number of geographical reportable segments	2
Number of operating reportable segments	3
Percentage of revenue accounted by major customers	greater than 10%
Number of major customers \| Customer	0
Number of main products \| Product	3

Operating Segment and Related Information - Summary of Company's Operating Segments (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Segment Reporting Information [Line Items]
NET REVENUE	$ 63,253	$ 63,911	$ 65,388	$ 68,002	$ 69,886	$ 74,308	$ 74,995	$ 72,197	$ 260,554	$ 291,386	$ 282,017
Provision for Doubtful Accounts Receivable									2,247	4,188	4,354
Income (loss) from operations	$ (7,125)	$ 1,492	$ (2,731)	$ (299)	$ 14,125	$ 1,575	$ (964)	$ 169	(8,663)	14,905	(5,864)
Capital Expenditures									31,747	31,533	26,421
United States [Member]
Segment Reporting Information [Line Items]
NET REVENUE									37,253	44,774	50,832
Canada [Member]
Segment Reporting Information [Line Items]
NET REVENUE									223,301	246,612	231,185
BLACKIRON Data [Member]
Segment Reporting Information [Line Items]
NET REVENUE									33,734	30,791	27,068
Provision for Doubtful Accounts Receivable									110	287	246
Income (loss) from operations									6,337	6,487	4,904
Capital Expenditures									15,695	9,779	5,429
North America Telecom [Member]
Segment Reporting Information [Line Items]
NET REVENUE									226,820	260,023	254,841
Provision for Doubtful Accounts Receivable									2,137	3,901	4,108
Income (loss) from operations									19,709	29,042	8,280
Capital Expenditures									8,684	6,472	6,464
Other [Member]
Segment Reporting Information [Line Items]
NET REVENUE										572	108
Provision for Doubtful Accounts Receivable
Income (loss) from operations										(331)	(1,472)
Capital Expenditures									7,072	14,848	14,528
Total From Operating Segments [Member]
Segment Reporting Information [Line Items]
Income (loss) from operations									26,046	35,198	11,712
Capital Expenditures									31,451	31,099	26,421
Corporate [Member]
Segment Reporting Information [Line Items]
Income (loss) from operations									(34,709)	(20,293)	$ (17,576)
Capital Expenditures									$ 296	$ 434

Operating Segment and Related Information - Segment Reporting for Property and Equipment - Net (Detail) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Segment Reporting Information [Line Items]
PROPERTY AND EQUIPMENT - Net	$ 65,315	$ 152,180
Assets	301,190	543,824
United States [Member]
Segment Reporting Information [Line Items]
PROPERTY AND EQUIPMENT - Net	804	3,643
Assets	73,143	122,170
Canada [Member]
Segment Reporting Information [Line Items]
PROPERTY AND EQUIPMENT - Net	62,519	54,674
Assets	180,369	194,531
Other [Member]
Segment Reporting Information [Line Items]
PROPERTY AND EQUIPMENT - Net	1,992	93,863
Assets	$ 47,678	$ 227,123

Operating Segment and Related Information - Net Revenue Information with Respect to Company's Products (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Revenue from External Customer [Line Items]
NET REVENUE	$ 63,253	$ 63,911	$ 65,388	$ 68,002	$ 69,886	$ 74,308	$ 74,995	$ 72,197	$ 260,554	$ 291,386	$ 282,017
Retail Voice [Member]
Revenue from External Customer [Line Items]
NET REVENUE									156,515	191,226	188,289
Data/Internet [Member]
Revenue from External Customer [Line Items]
NET REVENUE									72,717	68,881	62,688
Retail VoIP [Member]
Revenue from External Customer [Line Items]
NET REVENUE									$ 31,322	$ 31,279	$ 31,040

Quarterly Results of Operations - Schedule of Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Quarterly Results Of Operations [Line Items]
NET REVENUE	$ 63,253	$ 63,911	$ 65,388	$ 68,002	$ 69,886	$ 74,308	$ 74,995	$ 72,197	$ 260,554	$ 291,386	$ 282,017
Cost of revenue (exclusive of depreciation)	27,957	31,511	32,290	33,505	33,676	36,808	37,230	35,633	125,263	143,347	134,892
Income (loss) from operations	(7,125)	1,492	(2,731)	(299)	14,125	1,575	(964)	169	(8,663)	14,905	(5,864)
Income (loss) from continuing operations, net of tax	(2,134)	(22,578)	(9,645)	(11,470)	(5,709)	(5,128)	(9,175)	(8,455)	(45,827)	(28,467)	(41,927)
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, net of tax	(2,542)	(2,459)	(20,162)	4,612	7,367	(4,882)	2,833	(10,800)	(20,551)	(5,482)	19,914
GAIN (LOSS) FROM SALE OF DISCONTINUED OPERATIONS, net of tax	(4,401)		98,666		(4,781)				94,265	(4,781)	2,926
Net income (loss) attributable to Primus Telecommunications Group, Incorporated-basic	(9,077)	(25,037)	68,859	(6,858)	(3,123)	(10,010)	(6,342)	(19,255)	27,887	(38,730)	(19,087)
Net income (loss) attributable to Primus Telecommunications Group, Incorporated-diluted	$ (9,077)	$ (25,037)	$ 68,859	$ (6,858)	$ (3,123)	$ (10,010)	$ (6,342)	$ (19,255)	$ 27,887	$ (38,730)	$ (19,087)
Weighted average common shares outstanding-basic	13,901	13,890	13,839	13,744	13,697	13,715	13,385	11,148	13,844	12,994	9,721
Weighted average common shares outstanding-diluted	13,901	13,890	13,839	13,744	13,697	13,715	13,385	11,148	13,844	12,994	9,721
Basic income (loss) per common share:
Income (loss) from continuing operations attributable to Primus Telecommunications Group, Incorporated	$ (0.15)	$ (1.63)	$ (0.70)	$ (0.83)	$ (0.42)	$ (0.37)	$ (0.69)	$ (0.76)	$ (3.31)	$ (2.19)	$ (4.31)
Income (loss) from discontinued operations	(0.18)	(0.18)	(1.46)	0.34	0.54	(0.36)	0.21	(0.97)	(1.48)	(0.42)	2.05
Gain (loss) from sale of discontinued operations	(0.32)		7.13		(0.35)				6.81	(0.37)	0.30
Net income (loss) attributable to Primus Telecommunications Group, Incorporated	(0.65)	(1.81)	4.97	(0.49)	(0.23)	(0.73)	(0.48)	(1.73)	2.02	(2.98)	(1.96)
DILUTED INCOME (LOSS) PER COMMON SHARE:
Income (loss) from continuing operations attributable to Primus Telecommunications Group, Incorporated	(0.15)	(1.63)	(0.70)	(0.83)	(0.42)	(0.37)	(0.69)	(0.76)	(3.31)	(2.19)	(4.31)
Income (loss) from discontinued operations	(0.18)	(0.18)	(1.46)	0.34	0.54	(0.36)	0.21	(0.97)	(1.48)	(0.42)	2.05
Gain (loss) from sale of discontinued operations	(0.32)		7.13		(0.35)				6.81	(0.37)	0.30
Net income (loss) attributable to Primus Telecommunications Group, Incorporated	$ (0.65)	$ (1.81)	$ 4.97	$ (0.49)	$ (0.23)	$ (0.73)	$ (0.48)	$ (1.73)	$ 2.02	$ (2.98)	$ (1.96)

Quarterly Results of Operations - Schedule of Quarterly Results of Operations (Parenthetical) (Detail) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Quarterly Results Of Operations [Line Items]
Accrual reversal related to tax	$ 2,700
Asset impairment expense	$ 10,000		$ 10,000
Gain on sale of fixed wireless spectrum licenses		$ 13,100		$ 13,100

(Gain) Loss on Sale or Disposal of Assets - Additional information (Detail) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2011
Losses Gains On Sales Retirements And Impairments Of Long Lived Assets And Income Tax Expense Benefit Line Items
Gain on sale of fixed wireless spectrum licenses	$ 13.1	$ 13.1
Loss associated with the sale or disposal of specific long-lived assets		$ 0.2

Gain (Loss) on Early Extinguishment or Restructuring of Debt - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jul. 31, 2011	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 19, 2012	Nov. 30, 2012	Nov. 14, 2012
Proforma Debt Instrument [Line Items]
Loss on extinguishment of debt	$ 6,900	$ 21,100	$ 400
10% Senior Secured Notes due 2017 [Member]
Proforma Debt Instrument [Line Items]
Aggregate principal amount issued	$ 240,200			$ 240,200	$ 23,800	$ 79,700	$ 86,900
Aggregate principal amount paid in cash		129,700	4,950
Aggregate principal amount retired		$ 119,000	$ 5,000
10% Senior Secured Exchange Notes due 2017 [Member]
Proforma Debt Instrument [Line Items]
Aggregate principal amount issued						86,900
Third party fees						$ 600

Discontinued Operations - Additional Information (Detail) $ in Millions	1 Months Ended		3 Months Ended					12 Months Ended
	Dec. 31, 2010 USD ($)	Oct. 31, 2010 USD ($)	Dec. 31, 2012 USD ($)	Jun. 30, 2012 USD ($)	Dec. 31, 2011 USD ($)	Sep. 30, 2010 USD ($)	Jun. 30, 2010 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Dec. 31, 2010 USD ($)	May 31, 2012 USD ($)	May 31, 2012 AUD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
GAIN (LOSS) FROM SALE OF DISCONTINUED OPERATIONS, net of tax			$ (4,401,000)	$ 98,666,000	$ (4,781,000)			$ 94,265,000	$ (4,781,000)	$ 2,926,000
Amount released from escrow			5,400,000
Net gain				94,300,000
Attributed adjustment to the long-lived assets of ICS				10,300,000
Company sold its Brazilian segment					4,300,000
M 2 [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Amount released from escrow			$ 4,400,000
Belgian operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sale price of discontinued business operations						$ 1,300,000
Gain/loss on sale of discontinued business operation						$ 40,000
United Kingdom retail operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sale price of discontinued business operations		$ 6,800,000
Gain/loss on sale of discontinued business operation		2,400,000
Notes receivables on sale of business		2,100,000
Italian retail operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sale price of discontinued business operations		200,000
Gain/loss on sale of discontinued business operation		$ 300,000
France operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sale price of discontinued business operations	$ 4,000,000
Gain/loss on sale of discontinued business operation	900,000
Notes receivables on sale of business	$ 1,300,000									$ 1,300,000
Spanish retail operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sale price of discontinued business operations							$ 300,000
Gain/loss on sale of discontinued business operation							$ 200,000
Primus Australian [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Outstanding equity value											$ 195,700,000	$ 192.4
GAIN (LOSS) FROM SALE OF DISCONTINUED OPERATIONS, net of tax				98,600,000
Proceeds from sale placed in escrow				$ 9,800,000
Brazilian segment [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
GAIN (LOSS) FROM SALE OF DISCONTINUED OPERATIONS, net of tax					$ 4,800,000

Discontinued Operations - Summarized Operating Results of Discontinued Operations (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Net revenue									$ 417,671	$ 723,244	$ 520,435
Operating expenses									428,902	725,885	515,013
Income (loss) from operations									(11,231)	(2,641)	5,422
Interest expense									(513)	(1,772)	(169)
Interest income and other income (expense)									285	(908)	512
Foreign currency transaction gain (loss)									(2,750)	(336)	9,708
Income (loss) before income tax									(14,209)	(5,657)	15,473
Income tax (expense) benefit									(6,342)	175	4,441
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, net of tax	$ (2,542)	$ (2,459)	$ (20,162)	$ 4,612	$ 7,367	$ (4,882)	$ 2,833	$ (10,800)	(20,551)	(5,482)	$ 19,914
Summarized assets and liabilities of ICS classified as held for sale
Accounts receivable	16,070								16,070
Prepaid expenses and other current assets	4,196								4,196
Restricted cash	487								487
Long-lived assets	19,313								19,313
Assets held for sale	40,066								40,066
Accounts payable	10,580								10,580
Accrued interconnection costs	6,961								6,961
Accrued expenses and other liabilities	6,763								6,763
Liabilities held for sale	$ 24,304								$ 24,304

Basic and Diluted Income (Loss) Per Common Share - Additional Information (Detail) - shares shares in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive common share	0.0	0.0	0.0
Shares issuable upon exercise of stock options and RSUs under the Management Compensation Plan [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	0.5	0.8	0.6
Class A Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	6.2	4.5	4.5
Shares issuable upon exercise of CVRs [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	3.7	2.7	2.7

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Antidilution
-URI http://asc.fasb.org/extlink&oid=6505113

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Diluted Earnings Per Share
-URI http://asc.fasb.org/extlink&oid=6510752

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Contingent Stock Agreement
-URI http://asc.fasb.org/extlink&oid=6508534

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 13, 14
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Basic and Diluted Income (Loss) Per Common Share - Basic Income (Loss) Per Common Share to Diluted Income (Loss) Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income (loss) from continuing operations, net of tax	$ (2,134)	$ (22,578)	$ (9,645)	$ (11,470)	$ (5,709)	$ (5,128)	$ (9,175)	$ (8,455)	$ (45,827)	$ (28,467)	$ (41,927)
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, net of tax	(2,542)	(2,459)	(20,162)	4,612	7,367	(4,882)	2,833	(10,800)	(20,551)	(5,482)	19,914
GAIN (LOSS) FROM SALE OF DISCONTINUED OPERATIONS, net of tax	(4,401)		98,666		(4,781)				94,265	(4,781)	2,926
Net income (loss) attributable to Primus Telecommunications Group, Incorporated-basic	(9,077)	(25,037)	68,859	(6,858)	(3,123)	(10,010)	(6,342)	(19,255)	27,887	(38,730)	(19,087)
Net income (loss) attributable to Primus Telecommunications Group, Incorporated-diluted	$ (9,077)	$ (25,037)	$ 68,859	$ (6,858)	$ (3,123)	$ (10,010)	$ (6,342)	$ (19,255)	$ 27,887	$ (38,730)	$ (19,087)
Weighted average common shares outstanding-basic	13,901	13,890	13,839	13,744	13,697	13,715	13,385	11,148	13,844	12,994	9,721
Weighted average common shares outstanding-diluted	13,901	13,890	13,839	13,744	13,697	13,715	13,385	11,148	13,844	12,994	9,721
Basic income (loss) per common share:
Income (loss) from continuing operations attributable to Primus Telecommunications Group, Incorporated	$ (0.15)	$ (1.63)	$ (0.70)	$ (0.83)	$ (0.42)	$ (0.37)	$ (0.69)	$ (0.76)	$ (3.31)	$ (2.19)	$ (4.31)
Income (loss) from discontinued operations	(0.18)	(0.18)	(1.46)	0.34	0.54	(0.36)	0.21	(0.97)	(1.48)	(0.42)	2.05
Gain (loss) from sale of discontinued operations	(0.32)		7.13		(0.35)				6.81	(0.37)	0.30
Net income (loss) attributable to Primus Telecommunications Group, Incorporated	(0.65)	(1.81)	4.97	(0.49)	(0.23)	(0.73)	(0.48)	(1.73)	2.02	(2.98)	(1.96)
Diluted income (loss) per common share:
Income (loss) from continuing operations attributable to Primus Telecommunications Group, Incorporated	(0.15)	(1.63)	(0.70)	(0.83)	(0.42)	(0.37)	(0.69)	(0.76)	(3.31)	(2.19)	(4.31)
Income (loss) from discontinued operations	(0.18)	(0.18)	(1.46)	0.34	0.54	(0.36)	0.21	(0.97)	(1.48)	(0.42)	2.05
Gain (loss) from sale of discontinued operations	(0.32)		7.13		(0.35)				6.81	(0.37)	0.30
Net income (loss) attributable to Primus Telecommunications Group, Incorporated	$ (0.65)	$ (1.81)	$ 4.97	$ (0.49)	$ (0.23)	$ (0.73)	$ (0.48)	$ (1.73)	$ 2.02	$ (2.98)	$ (1.96)

Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Doubtful Accounts Receivable [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Period	$ 7,552	$ 6,854	$ 8,163
Charged to Costs and Expenses	4,819	7,621	8,392
Deductions	(7,411)	(6,923)	(9,701)
Other	(3,189)
Balance at End of Period	1,771	7,552	6,854
Deferred Tax Asset Valuation [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Period	144,611	94,284	118,520
Charged to Costs and Expenses	4,883	50,327	(24,236)
Deductions
Other
Balance at End of Period	$ 149,494	$ 144,611	$ 94,284

Schedule II - Valuation and Qualifying Accounts (Parenthetical) (Detail) $ in Thousands	Dec. 31, 2012 USD ($)
Primus Australian [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Allowance for doubtful accounts receivable	$ (1,859)
International Carrier Services [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Allowance for doubtful accounts receivable	$ (1,330)