NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
Direct and indirect costs solely related to obtaining revenue contracts are capitalized as costs of obtaining a contract, when they are incremental and if they are expected to be recovered. Such costs consist primarily of commission fees and sales bonuses, as well as indirect related payroll costs. Contract costs are amortized over the estimated period of benefit on a straight-line basis. The Company elected to apply the practical expedient which allows the Company to expense contract costs when incurred, if the amortization period is one year or less.
The ending balance of net capitalized contract costs as of September 30, 2018 was $181.1 million, which was included in other assets in the condensed consolidated balance sheet. For the three and nine months ended September 30, 2018, $18.5 million and $53.8 million of contract costs were amortized, which were included in sales and marketing expense in the condensed consolidated statement of operations.
Remaining performance obligations
As of September 30, 2018, approximately $5.7 billion of total revenues and deferred installation revenues are expected to be recognized in future periods, the majority of which will be recognized over the next 24 months. While initial contract terms vary in length, substantially all contracts thereafter automatically renew in one-year increments. Included in the remaining performance obligations is either 1) remaining performance obligations under the initial contract terms or 2) remaining performance obligations related to contracts in the renewal period once the initial terms have lapsed. The remaining performance obligations do not include variable consideration related to unsatisfied performance obligations such as the usage of metered power or any contracts that could be terminated without any significant penalties such as the majority of interconnection revenues. The remaining performance obligations include some leasing activities that are insignificant to the Company’s total operations.
The Company elected to apply the practical expedient that allows the Company not to disclose the remaining performance obligations for variable consideration that is allocated to entirely unsatisfied performance obligations or to a wholly unsatisfied distinct good or service that forms part of a single obligation.
The following table sets forth the computation of basic and diluted earnings per share ("EPS") for the periods presented (in thousands, except per share amounts):
Three Months Ended
Nine Months Ended
Weighted-average shares used to calculate basic EPS
Effect of dilutive securities:
Employee equity awards
Weighted-average shares used to calculate diluted EPS
The Company has excluded common stock related to employee equity awards in the diluted EPS calculation above of 290,000 shares and 73,000 shares for the three months ended September 30, 2018 and 2017, respectively, and 248,000 shares and 88,000 shares for the nine months ended September 30, 2018 and 2017, respectively, because their effect would be anti-dilutive.
On April 18, 2018, the Company acquired all of the equity interests in Metronode from the Ontario Teachers' Pension Plan Board for a cash purchase price of A$1.033 billion or approximately $804.1 million at the exchange rate in effect on April 18,