Leases

Capital Lease and Other Financing Obligations

The Company’s capital lease and other financing obligations expire at various dates ranging from 2018 to 2053. The weighted average effective interest rate of the Company’s capital lease and other financing obligations was 7.86% as of December 31, 2017.

The Company’s capital lease and other financing obligations are summarized as follows as of December 31, 2017 (in thousands):



	Capital Lease Obligations			Other Financing Obligations			Total
2018	$	100,815		$	101,095		$	201,910
2019	94,234			88,028			182,262
2020	94,327			87,758			182,085
2021	92,455			89,595			182,050
2022	92,309			90,070			182,379
Thereafter	801,237			886,277			1,687,514
Total minimum lease payments	1,275,377			1,342,823			2,618,200
Plus amount representing residual property value	—			545,656			545,656
Less amount representing interest	(531,820		)	(933,075		)	(1,464,895		)
Present value of net minimum lease payments	743,557			955,404			1,698,961
Less current portion	(41,117		)	(37,588		)	(78,705		)
	$	702,440		$	917,816		$	1,620,256

Amsterdam 5 ("AM5") Data Center

In May 2017, the Company acquired the land and building for the AM5 IBX data center for cash consideration of €26.7 million or $30.4 million at the exchange rate in effect on June 30, 2017. The Company had previously accounted for the construction and related agreements as a build-to-suit arrangement. As a result of the purchase, the prior arrangement was effectively terminated and the financing obligation was settled in full. The Company settled the financing obligation of the AM5 data center for €20.0 million or approximately $22.8 million and recognized a loss on debt extinguishment of €7.2 million or approximately $8.2 million. The fair value allocated to the ground lease was €6.7 million or $7.6 million, which was recorded as other assets and will be amortized through December 2054.

Hong Kong 5 ("HK5") Data Center

In January 2017, the Company entered into an agreement for certain elements of the construction of the HK5 Data Center. The terms of the construction agreement triggered the Company to be, in substance, the owner of the asset during the construction phase. The Company has accounted for the construction and related agreements as a build-to-suit arrangement. As of December 31, 2017, the Company recorded a financing obligation totaling approximately 577.4 million Hong Kong dollars, or $73.9 million at the exchange rate in effect as of December 31, 2017.

Operating Leases

The Company also leases its IBX data centers and certain equipment under noncancelable operating lease agreements. The majority of the Company’s operating leases for its land and IBX data centers expire at various dates through 2065 with renewal options available to the Company. The lease agreements typically provide for base rental rates that increase at defined intervals during the term of the lease. In addition, the Company has negotiated some rent expense abatement periods for certain leases to better match the phased build out of its IBX data centers. The Company accounts for such abatements and increasing base rentals using the straight-line method over the life of the lease. The difference between the straight-line expense and the cash payment is recorded as deferred rent (see Note 6, "Other Current Liabilities" and "Other Liabilities").

Minimum future operating lease payments as of December 31, 2017 are summarized as follows (in thousands):



Years ending:
2018	$	176,789
2019	164,711
2020	154,329
2021	144,706
2022	140,451
Thereafter	1,132,964
Total	$	1,913,950

Total rent expense was approximately $157.9 million, $140.6 million and $101.5 million for the years ended December 31, 2017, 2016 and 2015, respectively.