Leases

Capital Lease and Other Financing Obligations

The Company's capital lease and other financing obligations expire at various dates ranging from 2019 to 2053. The weighted average effective interest rate of the Company's capital lease and other financing obligations was 7.88% as of December 31, 2018.

The Company's capital lease and other financing obligations are summarized as follows as of December 31, 2018 (in thousands):



	Capital Lease Obligations			Other Financing Obligations ⁽¹⁾			Total
2019	$	103,859		$	80,292		$	184,151
2020	97,326			73,266			170,592
2021	95,414			73,672			169,086
2022	94,954			73,856			168,810
2023	95,463			69,423			164,886
Thereafter	878,755			722,496			1,601,251
Total minimum lease payments	1,365,771			1,093,005			2,458,776
Plus amount representing residual property value	—			389,643			389,643
Less amount representing interest	(602,026		)	(727,472		)	(1,329,498		)
Present value of net minimum lease payments	763,745			755,176			1,518,921
Less current portion	(43,498		)	(34,346		)	(77,844		)
Total	$	720,247		$	720,830		$	1,441,077


⁽¹⁾	Other financing obligations are primarily related to build-to-suit arrangements.

New York 4, New York 5, New York 6 and New York 7 ("NY4, NY5, NY6 and NY7") Data Centers

In December 2018, the Company entered into new lease agreements with the landlord of the Company's NY4, NY5 and NY6 data centers, replacing the existing leases. Additionally, the Company signed a modification of the lease agreement for its NY7 IBX data center. The total contractual obligation over the estimated term of the four new leases is collectively approximately $335.6 million. The Company had previously accounted for NY4 and NY7 as capital leases and NY5 and NY6 as build-to-suit arrangements. Pursuant to the current accounting standard for leases, the Company determined that NY4 and NY7 continued to be accounted for as capital leases and recognized an incremental capital lease obligation of $23.7 million during the three months ended December 31, 2018. As a result of the new leases for NY5 and NY6, the Company recognized a loss on debt extinguishment of approximately $6.5 million during the three months ended December 31, 2018. Monthly payments under NY4, NY5, NY6 will be made through December 2048. The Company has certain renewal options available after December 2048, which have not been included in the lease term. Monthly payments under NY7 will be made through December 2028.

Stockholm 2 ("SK2") Data Center

In March 2018, the Company acquired the land and building for the SK2 IBX data center for cash consideration of SEK457.9 million, or approximately $54.9 million at the exchange rate in effect on March 31, 2018. The Company had previously accounted for SK2 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 SK2 data center for SEK234.5 million or approximately $28.1 million and recognized a loss on debt extinguishment of SEK170.5 million, or approximately $20.4 million at the exchange rate in effect on March 31, 2018.

Tokyo 11 ("TY11") Data Center

In February 2018, the Company entered into a lease agreement for the TY11 IBX data center. Pursuant to the accounting standard for leases, the Company assessed the lease classification of the TY11 lease and determined that the lease should be accounted for as a capital lease. During the three months ended March 31, 2018, the Company recorded a capital lease obligation totaling approximately ¥2,348.5 million, or approximately $22.1 million at the exchange rate in effect on March 31, 2018. The lease has a term of 30 years through February 2048.

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 7, "Other Current Liabilities" and "Other Liabilities").

Minimum future operating lease payments as of December 31, 2018 are summarized as follows (in thousands):



Years ending:
2019	$	187,280
2020	179,515
2021	166,159
2022	158,115
2023	147,677
Thereafter	1,130,494
Total	$	1,969,240

Total rent expense was approximately $185.4 million, $157.9 million and $140.6 million for the years ended December 31, 2018, 2017 and 2016, respectively.