Supplementary Information | Table of Contents WEWORK INC. SUPPLEMENTARY INFORMATION CONSOLIDATING FINANCIAL STATEMENTS JUNE 30, 2021 As a result of various legal reorganization transactions undertaken in July 2019 as discussed in Note 1 to the consolidated financial statements, The We Company became the holding company of our business, and the then-stockholders of WeWork Companies Inc. (our predecessor for financial reporting purposes) became the stockholders of The We Company. Effective on October 14, 2020, The We Company changed its legal name to WeWork Inc. WeWork Inc. holds an indirect general partner interest and indirect limited partner interests in The We Company Management Holdings L.P. (the “WeWork Partnership”). The WeWork Partnership owns 100% of the equity in WeWork Companies LLC. WeWork Inc., through the WeWork Partnership and WeWork Companies LLC, holds all the assets held by WeWork Companies Inc. prior to the legal entity reorganization and is subject to all the liabilities to which WeWork Companies Inc. was subject prior to the legal entity reorganization. Subsequent to the July 2019 legal entity reorganization, WeWork Companies LLC is the borrower under the Company’s credit facilities and the obligor on its Senior Notes, each of which is also guaranteed by WeWork Inc. The following consolidating financial statements present the results of operations, financial position and cash flows of (i) WeWork Companies LLC and its consolidated subsidiaries, (ii) WeWork Inc. as a standalone legal entity, (iii) “Other Subsidiaries”, other than WeWork Companies LLC and its consolidated subsidiaries, which are direct or indirect owners of WeWork Companies LLC, including but not limited to the WeWork Partnership, presented on a combined basis and (iv) the eliminations necessary to arrive at the information for WeWork Inc. on a consolidated basis. The legal entity reorganization was accounted for as a transfer among entities under common control and the assets and liabilities transferred are recorded based on historical cost and the consolidating financial statements including periods prior to the reorganization are presented as if the transfer occurred at the beginning of the periods presented. Investments in consolidated subsidiaries are presented under the equity method of accounting. WeWork Inc. and the Other Subsidiaries are holding companies that conduct substantially all of their business operations through WeWork Companies LLC. As of June 30, 2021, based on the covenants and other restrictions of the credit agreement and the Senior Notes, WeWork Companies LLC is restricted in its ability to transfer funds by loans, advances or dividends to WeWork Inc. and as a result, all of the net assets of WeWork Companies LLC are considered restricted net assets of WeWork Inc. CONDENSED CONSOLIDATING BALANCE SHEET JUNE 30, 2021 (UNAUDITED) (Amounts in thousands) WeWork WeWork Inc. Other Eliminations WeWork Inc. Consolidated Assets Current assets: Cash and cash equivalents $ 843,552 $ 405 $ — $ — $ 843,957 Accounts receivable and accrued revenue, net 118,205 — — — 118,205 Other current assets 435,125 — 323 — 435,448 Total current assets 1,396,882 405 323 — 1,397,610 Investments in and advances to/(from) consolidated subsidiaries (15,783 ) (1,513,876 ) (1,528,757 ) 3,058,416 — Property and equipment, net 5,991,011 — — — 5,991,011 Lease right-of-use 13,923,373 — — — 13,923,373 Restricted cash 11,528 — — — 11,528 Equity method and other investments 198,163 — — — 198,163 Goodwill 678,668 — — — 678,668 Intangible assets, net 53,806 — — — 53,806 Other assets 933,381 — (1,230 ) — 932,151 Total assets $ 23,171,029 $ (1,513,471 ) $ (1,529,664 ) $ 3,058,416 $ 23,186,310 Liabilities Current liabilities: Accounts payable and accrued expenses $ 526,045 $ 11,560 $ (5 ) $ — $ 537,600 Members’ service retainers 347,057 — — — 347,057 Deferred revenue 138,207 — — — 138,207 Current lease obligations 873,531 — — — 873,531 Other current liabilities 437,535 2,839 — — 440,374 Total current liabilities 2,322,375 14,399 (5 ) — 2,336,769 Long-term lease obligations 18,977,544 — — — 18,977,544 Unsecured related party debt 2,200,000 — — — 2,200,000 Convertible related party liabilities, net — 57,944 — — 57,944 Long-term debt, net 659,446 — — — 659,446 Other liabilities 242,522 — — — 242,522 Total liabilities 24,401,887 72,343 (5 ) — 24,474,225 Convertible preferred stock — 8,379,182 — — 8,379,182 Redeemable noncontrolling interests 291,901 — — — 291,901 Equity Total WeWork Inc. shareholders’ equity (deficit) (1,528,757 ) (9,964,996 ) (1,529,659 ) 3,058,416 (9,964,996 ) Noncontrolling interests 5,998 — — — 5,998 Total equity (deficit) (1,522,759 ) (9,964,996 ) (1,529,659 ) 3,058,416 (9,958,998 ) Total liabilities and equity $ 23,171,029 $ (1,513,471 ) $ (1,529,664 ) $ 3,058,416 $ 23,186,310 CONDENSED CONSOLIDATING BALANCE SHEET DECEMBER 31, 2020 (Amounts in thousands) WeWork WeWork Inc. (Standalone) Other Eliminations WeWork Inc. Consolidated Assets Current assets: Cash and cash equivalents $ 800,531 $ 4 $ — $ — $ 800,535 Accounts receivable and accrued revenue, net 176,521 — — — 176,521 Other current assets 349,672 — 2,500 — 352,172 Total current assets 1,326,724 4 2,500 — 1,329,228 Investments in and advances to/(from) consolidated subsidiaries (28,632 ) 436,385 405,255 (813,008 ) — Property and equipment, net 6,859,163 — — — 6,859,163 Lease right-of-use 15,107,880 — — — 15,107,880 Restricted cash 53,618 — — — 53,618 Equity method and other investments 214,940 — — — 214,940 Goodwill 679,351 — — — 679,351 Intangible assets, net 49,896 — — — 49,896 Other assets 1,062,258 — — — 1,062,258 Total assets $ 25,325,198 $ 436,389 $ 407,755 $ (813,008 ) $ 25,356,334 Liabilities Current liabilities: Accounts payable and accrued expenses $ 698,241 $ 25,168 $ 2 $ — $ 723,411 Members’ service retainers 358,566 — — — 358,566 Deferred revenue 176,004 — — — 176,004 Current lease obligations 847,531 — — — 847,531 Other current liabilities 83,755 — — — 83,755 Total current liabilities 2,164,097 25,168 2 — 2,189,267 Long-term lease obligations 20,263,606 — — — 20,263,606 Unsecured related party debt 1,200,000 — — — 1,200,000 Convertible related party liabilities, net — 418,908 — — 418,908 Long-term debt, net 688,356 — — — 688,356 Other liabilities 221,780 — — — 221,780 Total liabilities 24,537,839 444,076 2 — 24,981,917 Convertible preferred stock — 7,666,098 — — 7,666,098 Redeemable noncontrolling interests 380,242 — — — 380,242 Equity Total WeWork Inc. shareholders’ equity (deficit) 405,255 (7,673,785 ) 407,753 (813,008 ) (7,673,785 ) Noncontrolling interests 1,862 — — — 1,862 Total equity (deficit) 407,117 (7,673,785 ) 407,753 (813,008 ) (7,671,923 ) Total liabilities and equity $ 25,325,198 $ 436,389 $ 407,755 $ (813,008 ) $ 25,356,334 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2021 (UNAUDITED) (Amounts in thousands) WeWork WeWork Inc. Other Eliminations WeWork Inc. Revenue $ 593,478 $ — $ — $ — $ 593,478 Expenses: Location operating expenses 780,489 — — — 780,489 Pre-opening 43,435 — — — 43,435 Selling, general and administrative expenses 224,915 168 (1 ) — 225,082 Restructuring and other related costs (27,794 ) — — — (27,794 ) Impairment/(gain on sale) of goodwill, intangibles and other assets 242,105 — (1 ) — 242,104 Depreciation and amortization 180,157 — — — 180,157 Total expenses 1,443,307 168 (2 ) — 1,443,473 Loss from operations (849,829 ) (168 ) 2 — (849,995 ) Interest and other income (expense), net: Equity income (loss) from consolidated subsidiaries — (889,987 ) (888,759 ) 1,778,746 — Income (loss) from equity method and other investments 6,068 — — — 6,068 Interest expense (113,259 ) — — — (113,259 ) Interest income 4,358 — — — 4,358 Foreign currency gain (loss) 33,025 — — — 33,025 Gain from change in fair value of related party financial instruments — 1,310 (1 ) — 1,309 Total interest and other income (expense), net (69,808 ) (888,677 ) (888,760 ) 1,778,746 (68,499 ) Pre-tax (919,637 ) (888,845 ) (888,758 ) 1,778,746 (918,494 ) Income tax benefit (provision) (2,786 ) — (1,229 ) — (4,015 ) Net loss (922,423 ) (888,845 ) (889,987 ) 1,778,746 (922,509 ) Net loss attributable to noncontrolling interests: Redeemable noncontrolling interests — mezzanine 34,134 — — — 34,134 Noncontrolling interest — equity (470 ) — — — (470 ) Net loss attributable to WeWork Inc. $ (888,759 ) $ (888,845 ) $ (889,987 ) $ 1,778,746 $ (888,845 ) (Amounts in thousands) WeWork Companies WeWork Inc. Other Eliminations WeWork Inc. Revenue $ 881,734 $ — $ — $ — $ 881,734 Expenses: Location operating expenses 881,468 — — — 881,468 Pre-opening 78,184 — — — 78,184 Selling, general and administrative expenses 390,776 2,042 — — 392,818 Restructuring and other related costs 80,529 — — — 80,529 Impairment/(gain on sale) of goodwill, intangibles and other assets 280,390 — 86 — 280,476 Depreciation and amortization 195,797 — — — 195,797 Total expenses 1,907,144 2,042 86 — 1,909,272 Loss from operations (1,025,410 ) (2,042 ) (86 ) — (1,027,538 ) Interest and other income (expense), net: Equity income (loss) from consolidated subsidiaries — (865,984 ) (865,898 ) 1,731,882 — Income (loss) from equity method and other investments (43,204 ) — — — (43,204 ) Interest expense (93,249 ) — — — (93,249 ) Interest income 1,978 — — — 1,978 Foreign currency gain (loss) 54,473 — — — 54,473 Gain from change in fair value of related party financial instruments — 4,197 — — 4,197 Loss on extinguishment of debt — — — Total interest and other income (expense), net (80,002 ) (861,787 ) (865,898 ) 1,731,882 (75,805 ) Pre-tax (1,105,412 ) (863,829 ) (865,984 ) 1,731,882 (1,103,343 ) Income tax benefit (provision) (7,095 ) — — — (7,095 ) Net loss (1,112,507 ) (863,829 ) (865,984 ) 1,731,882 (1,110,438 ) Net loss attributable to noncontrolling interests: Redeemable noncontrolling interests — mezzanine 244,706 — — — 244,706 Noncontrolling interest — equity 1,903 — — — 1,903 Net loss attributable to WeWork Inc. $ (865,898 ) $ (863,829 ) $ (865,984 ) $ 1,731,882 $ (863,829 ) CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2021 (UNAUDITED) (Amounts in thousands) WeWork WeWork Inc. Other Eliminations WeWork Inc. Revenue $ 1,191,331 $ — $ — $ — $ 1,191,331 Expenses: Location operating expenses 1,598,812 — — — 1,598,812 Pre-opening 76,839 — — — 76,839 Selling, general and administrative expenses 499,025 476 1 499,502 Restructuring and other related costs 466,163 (117 ) (1 ) — 466,045 Impairment/(gain on sale) of goodwill, intangibles and other assets 541,585 — — — 541,585 Depreciation and amortization 364,341 — — — 364,341 Total expenses 3,546,765 359 — — 3,547,124 Loss from operations (2,355,434 ) (359 ) — — (2,355,793 ) Interest and other income (expense), net: Equity income (loss) from consolidated subsidiaries — (2,570,018 ) (2,568,789 ) 5,138,807 — Income (loss) from equity method and other investments (24,510 ) — — — (24,510 ) Interest expense (217,828 ) — — — (217,828 ) Interest income 9,455 — — — 9,455 Foreign currency gain (loss) (37,924 ) (1 ) — — (37,925 ) Gain from change in fair value of related party financial instruments — (350,822 ) — — (350,822 ) Total interest and other income (expense), net (270,807 ) (2,920,841 ) (2,568,789 ) 5,138,807 (621,630 ) Pre-tax (2,626,241 ) (2,921,200 ) (2,568,789 ) 5,138,807 (2,977,423 ) Income tax benefit (provision) (6,053 ) — (1,229 ) — (7,282 ) Net loss (2,632,294 ) (2,921,200 ) (2,570,018 ) 5,138,807 (2,984,705 ) Net loss attributable to noncontrolling interests: Redeemable noncontrolling interests — mezzanine 64,120 — — — 64,120 Noncontrolling interest — equity (615 ) — — — (615 ) Net loss attributable to WeWork Inc. $ (2,568,789 ) $ (2,921,200 ) $ (2,570,018 ) $ 5,138,807 $ (2,921,200 ) CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2020 (UNAUDITED) (Amounts in thousands) WeWork WeWork Inc. Other Subsidiaries Eliminations WeWork Inc. Revenue $ 1,938,617 $ — $ — $ — $ 1,938,617 Expenses: Location operating expenses 1,804,802 — — — 1,804,802 Pre-opening 165,919 — — — 165,919 Selling, general and administrative expenses 922,281 2,820 — — 925,101 Restructuring and other related costs 136,216 — — 136,216 Impairment/(gain on sale) of goodwill, intangibles and other assets 602,073 — (46,114 ) — 555,959 Depreciation and amortization 390,156 — — — 390,156 Total expenses 4,021,447 2,820 (46,114 ) — 3,978,153 Loss from operations (2,082,830 ) (2,820 ) 46,114 — (2,039,536 ) Interest and other income (expense), net: Equity income (loss) from consolidated subsidiaries — (1,837,191 ) (1,883,305 ) 3,720,496 — Income (loss) from equity method and other investments (47,111 ) — — — (47,111 ) Interest expense (138,090 ) — — — (138,090 ) Interest income 8,742 — — — 8,742 Foreign currency gain (loss) (149,985 ) — — — (149,985 ) Gain (loss) from change in fair value of related party financial instruments — 792,313 — — 792,313 Foreign currency gain (loss) (76,295 ) (76,295 ) Total interest and other income (expense), net (402,739 ) (1,044,878 ) (1,883,305 ) 3,720,496 389,574 Pre-tax (2,485,569 ) (1,047,698 ) (1,837,191 ) 3,720,496 (1,649,962 ) Income tax benefit (provision) (16,115 ) — — — (16,115 ) Net loss (2,501,684 ) (1,047,698 ) (1,837,191 ) 3,720,496 (1,666,077 ) Net loss attributable to noncontrolling interests: Redeemable noncontrolling interests — mezzanine 603,763 — — — 603,763 Noncontrolling interest — equity 14,616 — — — 14,616 Net loss attributable to WeWork Inc. $ (1,883,305 ) $ (1,047,698 ) $ (1,837,191 ) $ 3,720,496 $ (1,047,698 ) CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2021 (UNAUDITED) (Amounts in thousands) WeWork WeWork Inc. (Standalone) Other Eliminations WeWork Inc. Cash Flows from Operating Activities: Net loss (2,632,294 ) $ (2,921,200 ) $ (2,570,018 ) $ 5,138,807 $ (2,984,705 ) Adjustments to reconcile net loss to net cash from operating activities: Depreciation and amortization 364,341 — — — 364,341 Impairment/(gain on sale) of goodwill, intangibles and other assets 541,585 — — — 541,585 Non-cash 428,289 — — — 428,289 Stock-based compensation expense 159,874 — — — 159,874 Issuance of stock for services rendered, net of forfeitures (2,273 ) — — — (2,273 ) Non-cash 105,137 — — — 105,137 Provision for allowance for doubtful accounts 17,247 — — — 17,247 Equity income (loss) from consolidated subsidiaries — 2,570,018 2,568,789 (5,138,807 ) — (Income) loss from equity method and other investments 24,510 — — — 24,510 Distribution of income from equity method and other investments 3,210 3,210 Foreign currency (gain) loss 37,924 1 — — 37,925 Change in fair value of financial instruments — 350,822 — 350,822 Changes in operating assets and liabilities: Operating lease right-of-use 830,935 — — — 830,935 Current and long-term lease obligations (909,490 ) — — — (909,490 ) Accounts receivable and accrued revenue 11,630 — — — 11,630 Other assets (60,068 ) — 1,230 — (58,838 ) Accounts payable and accrued expenses (27,091 ) (13,608 ) (5 ) — (40,704 ) Deferred revenue (36,684 ) — — — (36,684 ) Other liabilities (6,327 ) 2,839 — — (3,488 ) Deferred income taxes 1,720 — — — 1,720 Advances to/from consolidated subsidiaries (10,220 ) 10,216 4 — — Net cash provided by (used in) operating activities (1,158,045 ) (912 ) — — (1,158,957 ) CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2021 (UNAUDITED) (Amounts in thousands) WeWork WeWork Inc. (Standalone) Other Eliminations WeWork Inc. Cash Flows from Investing Activities: Purchases of property and equipment (153,142 ) — — — (153,142 ) Capitalized software (17,986 ) — — — (17,986 ) Change in security deposits with landlords 2,885 — — — 2,885 Proceeds from asset divestitures and sale of investments, net of cash divested 8,319 — — 8,319 Contributions to investments (26,704 ) — — — (26,704 ) Net cash provided by (used in) investing activities (186,628 ) — — — (186,628 ) Cash Flows from Financing Activities: Principal payments for property and equipment acquired under finance leases (2,184 ) — — — (2,184 ) Proceeds from unsecured related party debt 1,000,000 — — — 1,000,000 Proceeds from Commercial Paper Facility 349,011 349,011 Repayments of security deposit loan (2,615 ) — — — (2,615 ) Proceeds from exercise of stock options and warrants 1,100 1,313 — — 2,413 Payments for contingent consideration and holdback of acquisition proceeds (2,523 ) — — — (2,523 ) Proceeds relating to contingent consideration and holdbacks of disposition proceeds 12,177 12,177 Additions to members’ service retainers 198,194 — — — 198,194 Refunds of members’ service retainers (204,763 ) — — — (204,763 ) Net cash provided by (used in) financing activities 1,348,397 1,313 — — 1,349,710 Effects of exchange rate changes on cash, cash equivalents and restricted cash (2,793 ) — — — (2,793 ) Net increase (decrease) in cash, cash equivalents and restricted cash 931 401 — 1,332 Cash, cash equivalents and restricted cash—Beginning of period 854,149 4 — — 854,153 Cash, cash equivalents and restricted cash—End of period $ 855,080 $ 405 $ — $ — $ 855,485 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2020 (UNAUDITED) (Amounts in thousands) WeWork WeWork Inc. (Standalone) Other Eliminations WeWork Inc. Cash Flows from Operating Activities: Net loss $ (2,501,684 ) $ (1,047,698 ) $ (1,837,191 ) $ 3,720,496 $ (1,666,077 ) Adjustments to reconcile net loss to net cash from operating activities: Depreciation and amortization 390,156 — — — 390,156 Impairment of property and equipment 2,825 — — — 2,825 Impairment/(gain on sale) of goodwill, intangibles and other assets 602,073 — (46,114 ) — 555,959 Loss on extinguishment of debt 76,295 — — 76,295 Stock-based compensation expense 44,961 — — — 44,961 Issuance of stock for services rendered 9,834 — — — 9,834 Non-cash 67,390 — — — 67,390 Provision for allowance for doubtful accounts 20,956 — — — 20,956 Equity income (loss) from consolidated subsidiaries — 1,837,191 1,883,305 (3,720,496 ) — (Income) loss from equity method and other investments 47,111 — — — 47,111 Foreign currency (gain) loss 148,854 — — — 148,854 Change in fair value of financial instruments — (792,313 ) — (792,313 ) Contingent consideration fair market value adjustment (194 ) — — — (194 ) Changes in operating assets and liabilities: Operating lease right-of-use 163,684 — — — 163,684 Current and long-term lease obligations 752,026 — — — 752,026 Accounts receivable and accrued revenue (69,988 ) — — — (69,988 ) Other assets (13,638 ) — — (13,638 ) Accounts payable and accrued expenses 7,314 (38,215 ) — — (30,901 ) Deferred revenue 36,233 — — — 36,233 Other liabilities 17,675 — — — 17,675 Advances to/from consolidated subsidiaries (41,034 ) 41,034 — — — Net cash provided by (used in) operating activities (239,151 ) (1 ) — — (239,152 ) CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2020 (UNAUDITED) (Amounts in thousands) WeWork WeWork Inc. (Standalone) Other Eliminations WeWork Inc. Cash Flows from Investing Activities: Purchases of property and equipment (914,411 ) — — — (914,411 ) Capitalized software (12,705 ) — — — (12,705 ) Change in security deposits with landlords (4,875 ) — — — (4,875 ) Proceeds from asset divestitures and sale of investments, net of cash divested 994,627 — 94,249 — 1,088,876 Sale/distribution of acquisitions among consolidated subsidiaries 94,249 — (94,249 ) — — Contributions to investments (93,357 ) — — — (93,357 ) Net cash provided by (used in) investing activities 63,528 — — — 63,528 Cash Flows from Financing Activities: Principal payments for property and equipment acquired under finance leases (2,144 ) — — — (2,144 ) Proceeds from issuance of debt 32,445 — — — 32,445 Repayments of debt (759,196 ) — — — (759,196 ) Debt and equity issuance costs (4,124 ) — — — (4,124 ) Proceeds from exercise of stock options and warrants 149 — — — 149 Proceeds from issuance of noncontrolling interests 629 — — — 629 Distribution to noncontrolling interests (315,015 ) — — — (315,015 ) Payments for contingent consideration and holdback of acquisition proceeds (32,792 ) — — — (32,792 ) Additions to members’ service retainers 205,734 — — — 205,734 Refunds of members’ service retainers (280,814 ) — — — (280,814 ) Net cash provided by (used in) financing activities (1,155,128 ) — — — (1,155,128 ) Effects of exchange rate changes on cash, cash equivalents and restricted cash (22,610 ) — — — (22,610 ) Net increase (decrease) in cash, cash equivalents and restricted cash (1,353,361 ) (1 ) — — (1,353,362 ) Cash, cash equivalents and restricted cash—Beginning of period 2,200,687 1 — — 2,200,688 Cash, cash equivalents and restricted cash—End of period $ 847,326 $ — $ — $ — $ 847,326 | Table of Contents WEWORK INC. SUPPLEMENTARY INFORMATION CONSOLIDATING FINANCIAL STATEMENTS DECEMBER 31, 2020 As a result of various legal reorganization transactions undertaken in July 2019 as discussed in Note 1 to the consolidated financial statements, The We Company became the holding company of our business, and the then-stockholders of WeWork Companies Inc. (our predecessor for financial reporting purposes) became the stockholders of The We Company. Effective on October 14, 2020, The We Company changed its legal name to WeWork Inc. WeWork Inc. holds an indirect general partner interest and indirect limited partner interests in The We Company Management Holdings L.P. (the “WeWork Partnership”). The WeWork Partnership owns 100% of the equity in WeWork Companies LLC. WeWork Inc., through the WeWork Partnership and WeWork Companies LLC, holds all the assets held by WeWork Companies Inc. prior to the legal entity reorganization and is subject to all the liabilities to which WeWork Companies Inc. was subject prior to the legal entity reorganization. Subsequent to the July 2019 legal entity reorganization, WeWork Companies LLC is the borrower under the Company’s credit facilities and the obligor on its Senior Notes, each of which is also guaranteed by WeWork Inc. The following consolidating financial statements present the results of operations, financial position and cash flows of (i) WeWork Companies LLC and its consolidated subsidiaries, (ii) WeWork Inc. as a standalone legal entity, (iii) “Other Subsidiaries”, other than WeWork Companies LLC and its consolidated subsidiaries, which are direct or indirect owners of WeWork Companies LLC, including but not limited to The WeWork Partnership, presented on a combined basis and (iv) the eliminations necessary to arrive at the information for WeWork Inc. on a consolidated basis. The legal entity reorganization was accounted for as a transfer among entities under common control and the assets and liabilities transferred are recorded based on historical cost and the consolidating financial statements including periods prior to the reorganization are presented as if the transfer occurred at the beginning of the periods presented. Investments in consolidated subsidiaries are presented under the equity method of accounting. WeWork Inc. and the Other Subsidiaries are holding companies that conduct substantially all of their business operations through WeWork Companies LLC. As of December 31, 2020, based on the covenants and other restrictions of the credit agreement and the Senior Notes, WeWork Companies LLC is restricted in its ability to transfer funds by loans, advances or dividends to WeWork Inc. and as a result all of the net assets of WeWork Companies LLC are considered restricted net assets of WeWork Inc. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2020 (Amounts in thousands) WeWork WeWork Inc. Other Eliminations WeWork Inc. Assets Current assets: Cash and cash equivalents $ 800,531 $ 4 $ — $ — $ 800,535 Accounts receivable and accrued revenue, net 176,521 — — — 176,521 Other current assets 349,672 — 2,500 — 352,172 Total current assets 1,326,724 4 2,500 — 1,329,228 Investments in and advances to/(from) consolidated subsidiaries (28,632 ) 436,385 405,255 (813,008 ) — Property and equipment, net 6,859,163 — — — 6,859,163 Lease right-of-use 15,107,880 — — — 15,107,880 Restricted cash 53,618 — — — 53,618 Equity method and other investments 214,940 — — — 214,940 Goodwill 679,351 — — — 679,351 Intangible assets, net 49,896 — — — 49,896 Other assets 1,062,258 — — — 1,062,258 Total assets $ 25,325,198 $ 436,389 $ 407,755 $ (813,008 ) $ 25,356,334 Liabilities Current liabilities: Accounts payable and accrued expenses $ 698,241 $ 25,168 $ 2 $ — $ 723,411 Members’ service retainers 358,566 — — — 358,566 Deferred revenue 176,004 — — — 176,004 Current lease obligations 847,531 — — — 847,531 Other current liabilities 83,755 — — — 83,755 Total current liabilities 2,164,097 25,168 2 — 2,189,267 Long-term lease obligations 20,263,606 — — — 20,263,606 Unsecured related party debt 1,200,000 — — — 1,200,000 Convertible related party liabilities, net — 418,908 — — 418,908 Long-term debt, net 688,356 — — — 688,356 Other liabilities 221,780 — — — 221,780 Total liabilities 24,537,839 444,076 2 — 24,981,917 Convertible preferred stock — 7,666,098 — — 7,666,098 Redeemable noncontrolling interests 380,242 — — — 380,242 Equity Total WeWork Inc. shareholders’ equity (deficit) 405,255 (7,673,785 ) 407,753 (813,008 ) (7,673,785 ) Noncontrolling interests 1,862 — — — 1,862 Total equity (deficit) 407,117 (7,673,785 ) 407,753 (813,008 ) (7,671,923 ) Total liabilities and equity $ 25,325,198 $ 436,389 $ 407,755 $ (813,008 ) $ 25,356,334 CONSOLIDATING BALANCE SHEET DECEMBER 31, 2019 (Amounts in thousands) WeWork WeWork Inc. Other Eliminations WeWork Inc. Assets Current assets: Cash and cash equivalents $ 1,340,139 $ 1 $ — $ — $ 1,340,140 Accounts receivable and accrued revenue 230,239 — — — 230,239 Lease incentives receivable — — — — — Due from related parties — — — — — Assets held for sale 134,958 — — — 134,958 Other current assets 422,938 — — — 422,938 Total current assets 2,128,274 1 — — 2,128,275 Investments in and advances to/(from) consolidated subsidiaries (89,515 ) 4,141,631 4,052,116 (8,104,232 ) — Property and equipment, net 8,399,541 — — — 8,399,541 Lease right-of-use 17,496,004 — — — 17,496,004 Restricted cash 856,255 — — — 856,255 Deferred lease acquisition costs, net — — — — — Equity method and other investments 203,719 — — — 203,719 Goodwill 698,416 — — — 698,416 Intangible assets, net 79,865 — — — 79,865 Other assets 1,286,180 (441 ) — — 1,285,739 Total assets $ 31,058,739 $ 4,141,191 $ 4,052,116 $ (8,104,232 ) $ 31,147,814 Liabilities Current liabilities: Accounts payable and accrued expenses $ 1,281,677 $ 90,000 $ — $ — $ 1,371,677 Members’ service retainers 605,574 — — — 605,574 Deferred revenue 180,390 — — — 180,390 Current lease obligations 685,629 — — — 685,629 Liabilities held for sale 25,442 — — — 25,442 Other current liabilities 95,411 123,409 — — 218,820 Total current liabilities 2,874,123 213,409 — — 3,087,532 Long-term lease obligations 21,251,163 — — — 21,251,163 Convertible related party liabilities, net — 2,151,075 — — 2,151,075 Long-term debt, net 1,389,431 — — — 1,389,431 Other liabilities 137,641 — — — 137,641 Total liabilities 25,652,358 2,364,484 — — 28,016,842 Convertible preferred stock — 6,473,604 — — 6,473,604 Redeemable noncontrolling interests 1,032,080 — — — 1,032,080 Equity Total WeWork Inc. shareholders’ equity (deficit) 4,052,116 (4,696,897 ) 4,052,116 (8,104,232 ) (4,696,897 ) Noncontrolling interests 322,185 — — — 322,185 Total equity (deficit) 4,374,301 (4,696,897 ) 4,052,116 (8,104,232 ) (4,374,712 ) Total liabilities and equity $ 31,058,739 $ 4,141,191 $ 4,052,116 $ (8,104,232 ) $ 31,147,814 CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2020 (Amounts in thousands) WeWork WeWork Other Eliminations WeWork Revenue $ 3,415,865 $ — $ — $ — $ 3,415,865 Expenses: Location operating expenses 3,542,918 — — — 3,542,918 Pre-opening 273,049 — — — 273,049 Selling, general and administrative expenses 1,604,311 330 28 — 1,604,669 Restructuring and other related costs 206,703 — — — 206,703 Impairment/(gain on sale) of goodwill, intangibles and other assets 1,409,234 — (53,313 ) — 1,355,921 Depreciation and amortization 779,368 — — — 779,368 Total expenses 7,815,583 330 (53,285 ) — 7,762,628 Loss from operations (4,399,718 ) (330 ) 53,285 — (4,346,763 ) Interest and other income (expense), net: Equity income (loss) from consolidated subsidiaries — (3,949,108 ) (4,002,393 ) 7,951,501 — Income (loss) from equity method and other investments (44,788 ) — — — (44,788 ) Interest expense (331,217 ) — — — (331,217 ) Interest income 16,910 — — — 16,910 Foreign currency gain (loss) 149,204 (8 ) — — 149,196 Gain from change in fair value of related party financial instruments — 819,647 — — 819,647 Loss on extinguishment of debt (77,336 ) — — — (77,336 ) Total interest and other income (expense), net (287,227 ) (3,129,469 ) (4,002,393 ) 7,951,501 532,412 Pre-tax (4,686,945 ) (3,129,799 ) (3,949,108 ) 7,951,501 (3,814,351 ) Income tax benefit (provision) (19,947 ) 441 — — (19,506 ) Net loss (4,706,892 ) (3,129,358 ) (3,949,108 ) 7,951,501 (3,833,857 ) Net loss attributable to noncontrolling interests: Redeemable noncontrolling interests — mezzanine 675,631 — — — 675,631 Noncontrolling interest — equity 28,868 — — — 28,868 Net loss attributable to WeWork Inc. $ (4,002,393 ) $ (3,129,358 ) $ (3,949,108 ) $ 7,951,501 $ (3,129,358 ) Table of Contents CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2019 (Amounts in thousands) WeWork WeWork Inc. Other Eliminations WeWork Inc. Revenue $ 3,458,592 $ — $ — $ — $ 3,458,592 Expenses: Location operating expenses 2,758,318 — — — 2,758,318 Pre-opening 571,968 — — — 571,968 Selling, general and administrative expense 2,793,178 485 2,793,663 Restructuring and other related costs 329,221 — — 329,221 Impairment/(gain on sale) of goodwill, intangibles and other assets 335,006 — — — 335,006 Depreciation and amortization 589,914 — — — 589,914 Total expenses 7,377,605 485 — — 7,378,090 Loss from operations (3,919,013 ) (485 ) — — (3,919,498 ) Interest and other income (expense), net: Equity income (loss) from consolidated subsidiaries — (3,046,346 ) (3,046,346 ) 6,092,692 — Income (loss) from equity method and other investments (32,206 ) — — — (32,206 ) Interest expense (99,587 ) — — — (99,587 ) Interest income 53,244 — — — 53,244 Foreign currency gain (loss) 29,652 — — — 29,652 Gain (loss) from change in fair value of related party financial instruments 456,611 (217,466 ) — — 239,145 Total interest and other income (expense), net 407,714 (3,263,812 ) (3,046,346 ) 6,092,692 190,248 Pre-tax (3,511,299 ) (3,264,297 ) (3,046,346 ) 6,092,692 (3,729,250 ) Income tax benefit (provision) (45,196 ) (441 ) — — (45,637 ) Net loss (3,556,495 ) (3,264,738 ) (3,046,346 ) 6,092,692 (3,774,887 ) Net loss attributable to noncontrolling interests: Redeemable noncontrolling interests — mezzanine 493,047 — — — 493,047 Noncontrolling interest — equity 17,102 — — — 17,102 Net loss attributable to WeWork Inc. $ (3,046,346 ) $ (3,264,738 ) $ (3,046,346 ) $ 6,092,692 $ (3,264,738 ) CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2020 (Amounts in thousands) WeWork WeWork Inc. Other Eliminations WeWork Inc. Cash Flows from Operating Activities: Net loss (4,706,892 ) $ (3,129,358 ) $ (3,949,108 ) $ 7,951,501 $ (3,833,857 ) Adjustments to reconcile net loss to net cash from operating activities: Depreciation and amortization 779,368 — — — 779,368 Impairment of property and equipment 3,066 — — — 3,066 Impairment/(gain on sale) of goodwill, intangibles and other assets 1,409,234 — (53,313 ) — 1,355,921 Loss on extinguishment of debt 77,336 — — 77,336 Stock-based compensation expense 62,776 — — — 62,776 Cash paid to settle employee stock awards (3,141 ) — — — (3,141 ) Issuance of stock for services rendered 7,893 — — — 7,893 Non-cash 172,112 — — — 172,112 Provision for allowance for doubtful accounts 67,482 — — — 67,482 Equity income (loss) from consolidated subsidiaries — 3,949,108 4,002,393 (7,951,501 ) — (Income) loss from equity method and other investments 44,788 — — — 44,788 Distribution of income from equity method and other investments 4,191 4,191 Foreign currency (gain) loss (149,204 ) 8 — — (149,196 ) Change in fair value of financial instruments — (819,647 ) — (819,647 ) Contingent consideration fair market value adjustment (122 ) — — — (122 ) Changes in operating assets and liabilities: Operating lease right-of-use 1,024,709 — — — 1,024,709 Current and long-term lease obligations 502,025 — — — 502,025 Accounts receivable and accrued revenue (32,749 ) — — — (32,749 ) Other assets (28,148 ) — — — (28,148 ) Accounts payable and accrued expenses (99,360 ) (64,832 ) 2 — (164,190 ) Deferred revenue 32,803 — — — 32,803 Other liabilities 39,731 — — — 39,731 Deferred income taxes 282 (441 ) — — (159 ) Advances to/from consolidated subsidiaries (65,191 ) 65,165 26 — — Net cash provided by (used in) operating activities (857,011 ) 3 — — (857,008 ) Table of Contents CONSOLIDATING STATEMENT OF CASH FLOWS(continued) FOR THE YEAR ENDED DECEMBER 31, 2020 (Amounts in thousands) WeWork WeWork Inc. Other Eliminations WeWork Inc. Cash Flows from Investing Activities: Purchases of property and equipment (1,441,232 ) — — — (1,441,232 ) Capitalized software (22,614 ) — — — (22,614 ) Sale of software license — — — — — Change in security deposits with landlords 526 — — — 526 Proceeds from asset divestitures and sale of investments, net of cash divested 1,047,321 — 125,539 — 1,172,860 Sale/distribution of acquisitions among consolidated subsidiaries 125,539 — (125,539 ) — — Contributions to investments (99,146 ) — — — (99,146 ) Deconsolidation of cash of ChinaCo, net of cash received (54,481 ) (54,481 ) Net cash provided by (used in) investing activities (444,087 ) — — — (444,087 ) Cash Flows from Financing Activities: Principal payments for property and equipment acquired under finance leases (4,021 ) — — — (4,021 ) Proceeds from issuance of debt 34,309 — — — 34,309 Proceeds from unsecured related party debt 1,200,000 — — — 1,200,000 Repayments of debt (813,140 ) — — — (813,140 ) Debt and equity issuance costs (12,039 ) — — — (12,039 ) Proceeds from exercise of stock options and warrants 212 — — — 212 Proceeds from issuance of noncontrolling interests 100,628 — — — 100,628 Distributions to noncontrolling interests (319,860 ) — — — (319,860 ) Payments for contingent consideration and holdback of acquisition proceeds (39,701 ) — — — (39,701 ) Proceeds relating to contingent consideration and holdbacks of disposition proceeds 613 613 Additions to members’ service retainers 382,184 — — — 382,184 Refunds of members’ service retainers (575,999 ) — — — (575,999 ) Net cash provided by (used in) financing activities (46,814 ) — — — (46,814 ) Effects of exchange rate changes on cash, cash equivalents and restricted cash 1,374 — — — 1,374 Net increase (decrease) in cash, cash equivalents and restricted cash (1,346,538 ) 3 — — (1,346,535 ) Cash, cash equivalents and restricted cash — Beginning of period 2,200,687 1 — — 2,200,688 Cash, cash equivalents and restricted cash — End of period $ 854,149 $ 4 $ — $ — $ 854,153 CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2019 (Amounts in thousands) WeWork WeWork Inc. Other Eliminations WeWork Inc. Cash Flows from Operating Activities: Net loss $ (3,556,495 ) $ (3,264,738 ) $ (3,046,346 ) $ 6,092,692 $ (3,774,887 ) Adjustments to reconcile net loss to net cash from operating activities: Depreciation and amortization 589,914 — — — 589,914 Impairment of property and equipment 63,128 — — — 63,128 Impairment/(gain on sale) of goodwill, intangibles and other assets 335,006 — — — 335,006 Non-cash 185,000 — — — 185,000 Stock-based compensation expense 358,969 — — — 358,969 Issuance of common stock for services rendered 20,367 — — — 20,367 Noncash interest expense 14,917 — — — 14,917 Provision for allowance for doubtful accounts 22,221 — — — 22,221 Equity income (loss) from consolidated subsidiaries — 3,046,346 3,046,346 (6,092,692 ) — (Income) loss from equity method and other investments 32,206 — — — 32,206 Foreign currency (gain) loss (30,915 ) — — — (30,915 ) Change in fair value of financial instruments (456,611 ) 217,466 — (239,145 ) Contingent consideration fair market value adjustment (60,667 ) — — — (60,667 ) Changes in operating assets and liabilities: Operating lease right-of-use (5,850,744 ) — — — (5,850,744 ) Current and long-term lease obligations 7,672,358 — — — 7,672,358 Accounts receivable and accrued revenue (175,262 ) — — — (175,262 ) Other assets (126,870 ) — — (126,870 ) Accounts payable and accrued expenses 300,609 90,000 — — 390,609 Deferred revenue 90,445 — — — 90,445 Other liabilities (84,569 ) 123,409 — — 38,840 Deferred income taxes (4,175 ) 441 — — (3,734 ) Advances to/from consolidated subsidiaries 212,923 (212,923 ) — — — Net cash used in operating activities (448,245 ) 1 — — (448,244 ) Cash Flows from Investing Activities: Purchases of property and equipment (3,488,086 ) — — — (3,488,086 ) Capitalized software (40,735 ) — — — (40,735 ) Change in security deposits with landlords (140,071 ) — — — (140,071 ) Proceeds from asset divestitures and sale of investments 16,599 — — — 16,599 Contributions to investments (80,674 ) — — — (80,674 ) Loans to employees and related parties (5,580 ) — — — (5,580 ) Cash used for acquisitions, net of cash acquired (992,980 ) (43,993 ) — — (1,036,973 ) Sale of acquisitions to consolidated subsidiaries (43,993 ) 43,993 — — — Net cash used in investing activities (4,775,520 ) — — — (4,775,520 ) Table of Contents CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2019 (Amounts in thousands) WeWork WeWork Inc. Other Eliminations WeWork Inc. Cash Flows from Financing Activities: Principal payments for property and equipment acquired under finance leases (3,590 ) — — — (3,590 ) Proceeds from issuance of debt 662,395 — — — 662,395 Proceeds from issuance of convertible related party liabilities 2,500,000 1,500,000 — — 4,000,000 Advances to/from consolidated subsidiaries 1,500,000 (1,500,000 ) — — — Repayments of debt (3,088 ) — — — (3,088 ) Bond repurchase (32,352 ) — — — (32,352 ) Debt and equity issuance costs (71,075 ) — — — (71,075 ) Proceeds from exercise of stock options and warrants 38,823 — — — 38,823 Proceeds from issuance of noncontrolling interests 538,934 — — — 538,934 Distributions to noncontrolling interests (40,000 ) — — — (40,000 ) Payments for contingent consideration and holdback of acquisition proceeds (38,280 ) — — — (38,280 ) Additions to members’ service retainers 703,265 — — — 703,265 Refunds of members’ service retainers (497,761 ) — — — (497,761 ) Net cash provided by financing activities 5,257,271 — — — 5,257,271 Effects of exchange rate changes on cash, cash equivalents and restricted cash 3,239 — — — 3,239 Net increase (decrease) in cash, cash equivalents and restricted cash 36,745 1 — — 36,746 Cash, cash equivalents and restricted cash — Beginning of period 2,163,942 — — — 2,163,942 Cash, cash equivalents and restricted cash — End of period $ 2,200,687 $ 1 $ — $ — $ 2,200,688 |