Finance lease term (in years)

[Table of Contents](#i89c3c9328e454b30b2c14123b867f3f0_7)EQUINIX, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)  
  
10.    LeasesSignificant Lease TransactionsThe following table summarizes the significant lease transactions during the year ended December 31, 2021 (in thousands): 

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|  |  |  |  |  |  |  |  | Renewal/Termination Options Excluded (1) |  |  |  | Net Incremental (2) |
| Lease |  | Quarter |  | Transaction |  |  |  |  | Lease Classification |  | ROU assets |  | ROU 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/A |  | Finance Lease - Building |  | 37,987 |  | 37,987 |
| Operating Lease - Land |  | 6,592 |  | 6,592 |
| Osaka 3 ("OS3") new data center and office lease |  | Q2 |  | New lease-15 year term |  |  |  | 2-year renewal option on a rolling basis |  | Finance Lease |  | 144,122 |  | 144,122 |
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(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 ExpensesThe components of lease expenses are as follows (in thousands):

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|  | Years Ended December 31, |
|  | 2021 |  | 2020 |
| Finance lease cost |  |  |  |
| Amortization of right-of-use assets (1) | $ | 157,057  |  |  | $ | 120,169  |  |
| Interest on lease liabilities | 117,896  |  |  | 113,699  |  |
| Total finance lease cost | 274,953  |  |  | 233,868  |  |
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| Operating lease cost | 221,776  |  |  | 217,299  |  |
| Variable lease cost | 33,066  |  |  | 13,588  |  |
| Total lease cost | $ | 529,795  |  |  | $ | 464,755  |  |



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 (1) Amortization of right-of-use assets is included within depreciation expense, and is recorded within cost of revenues, sales and marketing and general and administrative expenses in the consolidated statements of operations.F-42  

