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Leases
 6 Months Ended
Jun. 30, 2021
Leases [Abstract]  
Leases Leases
Significant Lease Transactions
The following table summarizes the significant lease transactions during the six months ended June 30, 2021 (in thousands):
Renewal/Termination Options Excluded (1)
Net Incremental (2)
LeaseQuarterTransactionLease ClassificationROU assetsROU liabilities
Silicon Valley 8 ("SV8") data center lease extended (3)
Q1
Extended lease term by 16 years
Two 10-year renewal options
Finance Lease$98,141 $100,043 
Operating Lease(13,685)(15,586)
Hong Kong 3 ("HK3") data center lease extended (3)
Q1
Extended lease by 10 years, which included a 5-year renewal option
N/AFinance Lease - Building37,987 37,987 
Operating Lease - Land6,592 6,592 
Osaka 3 ("OS3") new data center and office leaseQ2
New lease-15 year term
2-year renewal option on a rolling basis
Finance Lease144,122144,122
(1) These renewal/termination options are not included in determining the lease terms as we are not reasonably certain to exercise them at this time.
(2) The net incremental amounts represent the adjustments to the right of use ("ROU") assets and liabilities recorded during the quarter that the transactions were entered.
(3) These leases had components previously classified as operating leases.
Lease Expenses
The components of lease expenses are as follows (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2021202020212020
Finance lease cost
Amortization of ROU assets (1)
$37,110 $28,897 $73,238 $54,062 
Interest on lease liabilities29,823 28,438 60,016 56,263 
Total finance lease cost66,933 57,335 133,254 110,325 
Operating lease cost57,045 52,556 113,499 106,347 
Variable lease cost7,630 2,884 15,670 5,466 
Total lease cost$131,608 $112,775 $262,423 $222,138 
(1) Amortization of ROU assets is included with depreciation expense, and is recorded within cost of revenues, sales and marketing and general and administrative expenses in the condensed consolidated statements of operations.
Other Information
Other information related to leases is as follows (in thousands):
Six Months Ended
June 30, 2021		Six Months Ended
June 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$57,084 $54,417 
Operating cash flows from operating leases152,052 102,146 
Financing cash flows from finance leases98,877 42,681 
ROU assets obtained in exchange for lease obligations: (1)
Finance leases$339,486 $311,951 
Operating leases50 14,114 
As of June 30, 2021As of December 31, 2020
Weighted-average remaining lease term - finance leases (2)
14 years14 years
Weighted-average remaining lease term - operating leases (2)
12 years12 years
Weighted-average discount rate - finance leases7 %7 %
Weighted-average discount rate - operating leases4 %4 %
Finance lease assets (3)
$1,912,014 $1,688,032 
(1) Represents all non-cash changes in ROU assets.
(2) Includes lease renewal options that are reasonably certain to be exercised.
(3) As of June 30, 2021 and December 31, 2020, we recorded accumulated amortization of finance lease assets of $651.5 million and $604.1 million, respectively. Finance lease assets are recorded within property, plant and equipment, net on the condensed consolidated balance sheets.
Maturities of Lease Liabilities
Maturities of lease liabilities as of June 30, 2021 are as follows (in thousands):
Operating LeasesFinance LeasesTotal
2021 (6 months remaining)$91,036 $123,694 $214,730 
2022194,169 240,595 434,764 
2023179,406 233,830 413,236 
2024166,529 232,142 398,671 
2025157,801 228,757 386,558 
Thereafter1,012,325 2,153,595 3,165,920 
Total lease payments1,801,266 3,212,613 5,013,879 
Plus amount representing residual property value— 16,268 16,268 
Less imputed interest(460,487)(1,080,555)(1,541,042)
Total$1,340,779 $2,148,326 $3,489,105 
We entered into agreements with various landlords primarily to lease data center spaces and ground leases which have not yet commenced as of June 30, 2021. These leases will commence between year 2021 and 2023, with lease terms of 12 to 20 years and total lease commitments of approximately $360.5 million.
Leases Leases
Significant Lease Transactions
The following table summarizes the significant lease transactions during the six months ended June 30, 2021 (in thousands):
Renewal/Termination Options Excluded (1)
Net Incremental (2)
LeaseQuarterTransactionLease ClassificationROU assetsROU liabilities
Silicon Valley 8 ("SV8") data center lease extended (3)
Q1
Extended lease term by 16 years
Two 10-year renewal options
Finance Lease$98,141 $100,043 
Operating Lease(13,685)(15,586)
Hong Kong 3 ("HK3") data center lease extended (3)
Q1
Extended lease by 10 years, which included a 5-year renewal option
N/AFinance Lease - Building37,987 37,987 
Operating Lease - Land6,592 6,592 
Osaka 3 ("OS3") new data center and office leaseQ2
New lease-15 year term
2-year renewal option on a rolling basis
Finance Lease144,122144,122
(1) These renewal/termination options are not included in determining the lease terms as we are not reasonably certain to exercise them at this time.
(2) The net incremental amounts represent the adjustments to the right of use ("ROU") assets and liabilities recorded during the quarter that the transactions were entered.
(3) These leases had components previously classified as operating leases.
Lease Expenses
The components of lease expenses are as follows (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2021202020212020
Finance lease cost
Amortization of ROU assets (1)
$37,110 $28,897 $73,238 $54,062 
Interest on lease liabilities29,823 28,438 60,016 56,263 
Total finance lease cost66,933 57,335 133,254 110,325 
Operating lease cost57,045 52,556 113,499 106,347 
Variable lease cost7,630 2,884 15,670 5,466 
Total lease cost$131,608 $112,775 $262,423 $222,138 
(1) Amortization of ROU assets is included with depreciation expense, and is recorded within cost of revenues, sales and marketing and general and administrative expenses in the condensed consolidated statements of operations.
Other Information
Other information related to leases is as follows (in thousands):
Six Months Ended
June 30, 2021		Six Months Ended
June 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$57,084 $54,417 
Operating cash flows from operating leases152,052 102,146 
Financing cash flows from finance leases98,877 42,681 
ROU assets obtained in exchange for lease obligations: (1)
Finance leases$339,486 $311,951 
Operating leases50 14,114 
As of June 30, 2021As of December 31, 2020
Weighted-average remaining lease term - finance leases (2)
14 years14 years
Weighted-average remaining lease term - operating leases (2)
12 years12 years
Weighted-average discount rate - finance leases7 %7 %
Weighted-average discount rate - operating leases4 %4 %
Finance lease assets (3)
$1,912,014 $1,688,032 
(1) Represents all non-cash changes in ROU assets.
(2) Includes lease renewal options that are reasonably certain to be exercised.
(3) As of June 30, 2021 and December 31, 2020, we recorded accumulated amortization of finance lease assets of $651.5 million and $604.1 million, respectively. Finance lease assets are recorded within property, plant and equipment, net on the condensed consolidated balance sheets.
Maturities of Lease Liabilities
Maturities of lease liabilities as of June 30, 2021 are as follows (in thousands):
Operating LeasesFinance LeasesTotal
2021 (6 months remaining)$91,036 $123,694 $214,730 
2022194,169 240,595 434,764 
2023179,406 233,830 413,236 
2024166,529 232,142 398,671 
2025157,801 228,757 386,558 
Thereafter1,012,325 2,153,595 3,165,920 
Total lease payments1,801,266 3,212,613 5,013,879 
Plus amount representing residual property value— 16,268 16,268 
Less imputed interest(460,487)(1,080,555)(1,541,042)
Total$1,340,779 $2,148,326 $3,489,105 
We entered into agreements with various landlords primarily to lease data center spaces and ground leases which have not yet commenced as of June 30, 2021. These leases will commence between year 2021 and 2023, with lease terms of 12 to 20 years and total lease commitments of approximately $360.5 million.