Leases

Capital Lease and Other Financing Obligations

The Company’s capital lease and other financing obligations expire at various dates ranging from 2015 to 2053. The weighted average effective interest rate of the Company’s capital lease and other financing obligations was 8.17% as of December 31, 2015.

The Company’s capital lease and other financing obligations are summarized as follows as of December 31, 2015 (dollars in thousands):



	Capital lease obligations			Other financing obligations			Total
2016	$	74,457		$	66,175		$	140,632
2017	73,537			66,116			139,653
2018	74,053			66,928			140,981
2019	74,857			63,990			138,847
2020	74,868			61,719			136,587
Thereafter	827,789			518,552			1,346,341
Total minimum lease payments	1,199,561			843,480			2,043,041
Plus amount representing residual property value	—			467,616			467,616
Less estimated building costs	—			(247		)	(247		)
Less amount representing interest	(557,433		)	(625,717		)	(1,183,150		)
Present value of net minimum lease payments	642,128			685,132			1,327,260
Less current portion	(23,435		)	(16,686		)	(40,121		)
	$	618,693		$	668,446		$	1,287,139

Atlanta 1 Capital Lease

In May 2015, the Company entered into a lease amendment to extend the lease term of the Company’s Atlanta 1 IBX (the “AT1 Lease”). The lease was originally accounted for as an operating lease. Pursuant to the accounting standard for leases, the Company reassessed the lease classification of the AT1 Lease as a result of the lease amendment and determined that upon the amendment the lease should be accounted for as a capital lease. The Company recorded a capital lease asset and liability totaling approximately $21,274,000 during the three months ended June 30, 2015. The lease term was extended to September 2035.

Atlanta 2 Capital Lease

In January 2015, the Company entered into a lease amendment to extend the lease term of the Company’s Atlanta 2 IBX (the “AT2 Lease”). The lease was originally accounted for as an operating lease. Pursuant to the accounting standard for leases, the Company reassessed the lease classification of the AT2 Lease as a result of the lease amendment and determined that upon the amendment the lease should be accounted for as a capital lease. The Company recorded a capital lease asset totaling approximately $25,960,000 and a capital lease liability totaling approximately $26,230,000 during the three months ended March 31, 2015. The lease term, including a renewal option, was extended to December 2024.

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 2053 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 5, “Other Current Liabilities” and “Other Liabilities”).

Minimum future operating lease payments as of December 31, 2015 are summarized as follows (in thousands):



Year ending:
2016	$	115,091
2017	113,624
2018	108,810
2019	100,462
2020	89,227
Thereafter	632,677
Total	$	1,159,891

Total rent expense was approximately $199,975,000, $105,391,000 and $112,704,000 for the years ended December 31, 2015, 2014 and 2013, respectively.