Leases

We lease datacenters, corporate offices and fiber-optic cables under operating leases. The Company does

not

have any leases classified as finance leases.

Our leases have remaining lease terms of

year to

years, some of which

may

include options to extend the leases for up to

years, and some of which

may

include options to terminate the leases within

year.

We have elected to consider leases with a term of

months or less as short-term, and as such have

not

been recognized on the balance sheet. We recognize lease expense for short-term leases on a straight-line basis over the lease term.

The Company elected the practical expedient to use hindsight when considering the likelihood that lessee options to extend or terminate a lease or purchase the underlying asset will be exercised, and in assessing the impairment of right-of-use assets.

As most of our leases do

not

provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments.

For corporate offices, datacenter and fiber-optic cable leases, the Company has elected the practical expedient to combine lease and non-lease components.

The components of lease expense were as follows (Dollar amounts in thousands of U.S. dollars):

	Three months ended,		Nine months ended,
	September 30, 2019		September 30, 2019
Operating Lease Cost (leases with a total term greater than 12 months)	$	609	$	2,506
Short-term Lease Cost (leases with a total term of 12 months or less)		305		708
Variable Lease Cost		156		520
Total Lease Cost	$	1,070	$	3,734

Lease Cost is presented in general and administrative expenses and network expenses within our consolidated statements of operations and comprehensive income.

Information related to leases was as follows (Dollar amounts in thousands of U.S. dollars):

	Three months ended,		Nine months ended,
	September 30, 2019		September 30, 2019

Supplemental cashflow information:
Operating Lease - Operating Cash Flows (Fixed Payments)	$	587	$	2,472
Operating Lease - Operating Cash Flows (Liability Reduction)	$	466	$	2,117
New ROU Assets - Operating Leases	$	86	$	4,554

Supplemental balance sheet information related to leases:	September 30, 2019			(Transition) January 1, 2019
Weighted Average Discount Rate		5.27	%		5.04	%
Weighted Average Remaining Lease Term (in years)		8.44			5.62

Maturity of lease liability as of

September 30, 2019 (

Dollar amounts in thousands of U.S. dollars):

	September 30, 2019
Remaining of 2019	$	541
2020		1,819
2021		1,707
2022		1,625
2023		1,583
Thereafter		5,991
Total future lease payments		13,266
Less interest		2,709
Total	$	10,557

Operating lease payments include payments under the non-cancellable term and approximately

$0.8

million related to options to extend lease terms that are reasonably certain of being exercised.

As of

September 30, 2019,

we have

not

entered into any additional leases that have

not

yet commenced.

January 2019,

the Company modified a corporate office lease to increase the term, leading to an increase to both the right of use operating lease asset and right of use operating lease liability of

$3.9

million.