Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | May 08, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-39419 | |
Entity Registrant Name | WEWORK INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 85-1144904 | |
Entity Address, Address Line One | 75 Rockefeller Plaza, 10th floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10019 | |
City Area Code | 646 | |
Local Phone Number | 389-3922 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001813756 | |
Class A common stock, $0.0001 per share | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class A common stock, $0.0001 per share | |
Trading Symbol | WE | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 2,109,845,068 | |
Redeemable warrants, exercisable for shares of Class A common stock at an exercise price of $11.50 per share | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Redeemable warrants, exercisable for shares of Class A common stock at an exercise price of $11.50 per share | |
Trading Symbol | WE WS | |
Security Exchange Name | NYSE | |
Class C common stock, $0.0001 per share | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 19,938,089 | |
Class A Common Stock Purchase Rights | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class A Common Stock Purchase Rights | |
Security Exchange Name | NYSE | |
No Trading Symbol Flag | true |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | |
Current assets: | |||
Cash and cash equivalents | $ 224 | $ 287 | |
Accounts receivable and accrued revenue, net of allowance | [1] | 107 | 109 |
Prepaid expenses | [1] | 139 | 138 |
Other current assets | [1] | 368 | 155 |
Total current assets | 838 | 689 | |
Total property and equipment, net | 4,193 | 4,391 | |
Lease right-of-use assets, net | 10,399 | 11,243 | |
Equity method and other investments | 60 | 63 | |
Goodwill and intangible assets, net | 736 | 737 | |
Other assets | [1] | 723 | 740 |
Total assets | 16,949 | 17,863 | |
Current liabilities: | |||
Accounts payable and accrued expenses | [1] | 495 | 526 |
Members’ service retainers | 440 | 445 | |
Deferred revenue | [1] | 127 | 151 |
Current lease obligations | [1] | 918 | 936 |
Other current liabilities | [1] | 295 | 172 |
Total current liabilities | 2,275 | 2,230 | |
Long-term lease obligations | [1] | 14,564 | 15,598 |
Long-term debt, net | [1] | 3,576 | 3,208 |
Other liabilities | 320 | 282 | |
Total liabilities | 20,735 | 21,318 | |
Commitments and contingencies (Note 18) | |||
Redeemable noncontrolling interests | (24) | (20) | |
WeWork Inc. shareholders' equity (deficit): | |||
Preferred stock; par value $0.0001; 100,000,000 shares authorized, zero issued and outstanding as of March 31, 2023 and December 31, 2022 | 0 | 0 | |
Treasury stock, at cost; 2,944,212 shares held as of March 31, 2023 and December 31, 2022 | (29) | (29) | |
Additional paid-in capital | 12,390 | 12,387 | |
Accumulated other comprehensive income (loss) | 117 | 149 | |
Accumulated deficit | (16,441) | (16,177) | |
Total WeWork Inc. shareholders' deficit | (3,963) | (3,670) | |
Noncontrolling interests | 201 | 235 | |
Total equity | (3,762) | (3,435) | |
Total liabilities and equity | 16,949 | 17,863 | |
Common stock Class A; par value $0.0001; 1,500,000,000 shares authorized, 714,308,465 shares issued and 711,364,253 shares outstanding as of March 31, 2023, and 1,500,000,000 shares authorized, 711,106,961 shares issued and 708,162,749 shares outstanding as of December 31, 2022 | |||
WeWork Inc. shareholders' equity (deficit): | |||
Common stock | 0 | 0 | |
Common stock Class C; par value $0.0001; 25,041,666 shares authorized, 19,938,089 shares issued and outstanding as of March 31, 2023 and December 31, 2022 | |||
WeWork Inc. shareholders' equity (deficit): | |||
Common stock | $ 0 | $ 0 | |
[1]See Note 19 for disclosure of related party amounts. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Allowance for doubtful accounts | $ 9 | $ 13 |
Other assets, related parties | 345 | 384 |
Long-term debt, net, related parties | $ 1,900 | $ 1,650 |
Preferred stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Treasury stock (in shares) | 2,944,212 | 2,944,212 |
Class A common stock | ||
Common stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 1,500,000,000 | 1,500,000,000 |
Common stock, issued (in shares) | 714,308,465 | 711,106,961 |
Common stock, outstanding (in shares) | 711,364,253 | 708,162,749 |
Class C common stock | ||
Common stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 25,041,666 | 25,041,666 |
Common stock, issued (in shares) | 19,938,089 | 19,938,089 |
Common stock, outstanding (in shares) | 19,938,089 | 19,938,089 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Income Statement [Abstract] | |||
Revenue | [1] | $ 849,000 | $ 765,000 |
Expenses: | |||
Location operating expenses—cost of revenue (exclusive of depreciation and amortization of $141 and $158 for the three months ended March 31, 2023 and 2022, respectively, shown separately below) | 724,000 | 736,000 | |
Pre-opening location expenses | 7,000 | 47,000 | |
Selling, general and administrative expenses | 155,000 | 208,000 | |
Restructuring and other related (gains) costs | (58,000) | (130,000) | |
Impairment expense/(gain on sale) | 77,000 | 91,000 | |
Depreciation and amortization | 148,000 | 171,000 | |
Total expenses | [1] | 1,053,000 | 1,123,000 |
Loss from operations | (204,000) | (358,000) | |
Interest and other income (expenses), net: | |||
Income (loss) from equity method and other investments | (2,000) | 6,000 | |
Interest expense | [1] | (131,000) | (113,000) |
Interest income | 4,000 | 1,000 | |
Foreign currency gain (loss) | 31,000 | (44,000) | |
Gain (loss) from change in fair value of warrant liabilities | 0 | 3,000 | |
Total interest and other income (expenses), net | (98,000) | (147,000) | |
Pre-tax loss | (302,000) | (505,000) | |
Income tax benefit (provision) | 3,000 | 1,000 | |
Net loss | (299,000) | (504,000) | |
Net loss attributable to noncontrolling interests: | |||
Redeemable noncontrolling interests — mezzanine | 6,000 | 21,000 | |
Noncontrolling interest — equity | 29,000 | 48,000 | |
Net loss attributable to WeWork Inc. | $ (264,000) | $ (435,000) | |
Net loss per share attributable to Class A common stockholders (see Note 17): | |||
Basic (in usd per share) | $ (0.34) | $ (0.57) | |
Diluted (in usd per share) | $ (0.34) | $ (0.57) | |
Weighted-average shares used to compute net loss per share attributable to Class A and Class B common stockholders, basic (in shares) | 766,258,253 | 759,676,860 | |
Weighted-average shares used to compute net loss per share attributable to Class A and Class B common stockholders, diluted (in shares) | 766,258,253 | 759,676,860 | |
[1]See Note 19 for disclosure of related party amounts. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Cost of revenue, depreciation and amortization | $ 141 | $ 158 |
Interest expense, related parties | $ 80 | $ 90 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (299) | $ (504) |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments, net of tax of none for the three months ended March 31, 2023, and 2022 | (32) | 30 |
Unrealized (loss) gain on available-for-sale securities, net of tax of none for the three months ended March 31, 2023, and 2022 | 0 | 2 |
Other comprehensive income (loss), net of tax | (32) | 32 |
Comprehensive loss | (331) | (472) |
Net loss attributable to noncontrolling interests | 35 | 69 |
Other comprehensive (income) loss attributable to noncontrolling interests | 0 | 7 |
Comprehensive loss attributable to WeWork Inc. | $ (296) | $ (396) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustments, tax | $ 0 | $ 0 |
Unrealized (loss) gain on available-for-sale securities, tax | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN CONVERTIBLE PREFERRED STOCK, NONCONTROLLING INTERESTS AND EQUITY - USD ($) $ in Millions | Total | Class A common stock | Class C common stock | Common Stock Class A common stock | Common Stock Class C common stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Noncontrolling Interests |
Redeemable noncontrolling interest, balance at Dec. 31, 2021 | $ 36 | |||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||
Issuance of noncontrolling interests | (2) | |||||||||
Net loss | (21) | |||||||||
Other comprehensive income (loss), net of tax | 2 | |||||||||
Redeemable noncontrolling interest, balance at Mar. 31, 2022 | 15 | |||||||||
Balance (in shares) at Dec. 31, 2021 | 705,016,923 | 19,938,089 | ||||||||
Balance at Dec. 31, 2021 | (1,449) | $ 0 | $ 0 | $ (29) | $ 12,321 | $ (31) | $ (14,143) | $ 433 | ||
Treasury stock balance (in shares) at Dec. 31, 2021 | (2,944,212) | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock-based compensation | 13 | 13 | ||||||||
Exercise of stock options (in shares) | 695,388 | |||||||||
Exercise of stock options | 2 | 2 | ||||||||
Issuance of common stock for settlement of vested RSUs (in shares) | 1,844,201 | |||||||||
Issuance of common stock in connection with Acquisition (in shares) | 489,071 | |||||||||
Issuance of common stock in connection with Acquisition | 3 | 3 | ||||||||
Fair value of equity classified contingent consideration | 1 | 1 | ||||||||
Transactions with principal shareholder | 9 | 9 | ||||||||
Shares withheld related to net share settlement (in shares) | (147,558) | |||||||||
Shares withheld related to net share settlement | (1) | (1) | ||||||||
Net income (loss) | (483) | (435) | (48) | |||||||
Other comprehensive income (loss), net of tax | 30 | 39 | (9) | |||||||
Other (in shares) | (371) | |||||||||
Balance (in shares) at Mar. 31, 2022 | 707,897,654 | 19,938,089 | ||||||||
Balance at Mar. 31, 2022 | (1,875) | $ 0 | $ 0 | $ (29) | 12,348 | 8 | (14,578) | 376 | ||
Treasury stock balance (in shares) at Mar. 31, 2022 | (2,944,212) | |||||||||
Redeemable noncontrolling interest, balance at Dec. 31, 2022 | (20) | |||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||
Net loss | (6) | |||||||||
Other comprehensive income (loss), net of tax | 2 | |||||||||
Redeemable noncontrolling interest, balance at Mar. 31, 2023 | (24) | |||||||||
Balance (in shares) at Dec. 31, 2022 | 708,162,749 | 19,938,089 | 711,106,961 | 19,938,089 | ||||||
Balance at Dec. 31, 2022 | $ (3,435) | $ 0 | $ 0 | $ (29) | 12,387 | 149 | (16,177) | 235 | ||
Treasury stock balance (in shares) at Dec. 31, 2022 | (2,944,212) | (2,944,212) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock-based compensation | $ 3 | 3 | ||||||||
Exercise of stock options (in shares) | 276 | |||||||||
Issuance of common stock for settlement of vested RSUs (in shares) | 3,404,930 | |||||||||
Issuance of common stock in connection with Acquisition (in shares) | 155,586 | |||||||||
Shares withheld related to net share settlement (in shares) | (359,288) | |||||||||
Net income (loss) | (293) | (264) | (29) | |||||||
Other comprehensive income (loss), net of tax | (34) | (32) | (2) | |||||||
Other | (3) | (3) | ||||||||
Balance (in shares) at Mar. 31, 2023 | 711,364,253 | 19,938,089 | 714,308,465 | 19,938,089 | ||||||
Balance at Mar. 31, 2023 | $ (3,762) | $ 0 | $ 0 | $ (29) | $ 12,390 | $ 117 | $ (16,441) | $ 201 | ||
Treasury stock balance (in shares) at Mar. 31, 2023 | (2,944,212) | (2,944,212) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows from Operating Activities: | ||||
Net loss | $ (299,000) | $ (504,000) | ||
Adjustments to reconcile net loss to net cash from operating activities: | ||||
Depreciation and amortization | 148,000 | 171,000 | ||
Impairment expense/(gain on sale) | 77,000 | 91,000 | ||
Stock-based compensation expense | 3,000 | 13,000 | ||
Non-cash interest expense | 51,000 | 53,000 | ||
Foreign currency (gain) loss | (31,000) | 44,000 | ||
Other non-cash operating expenses | 4,000 | (10,000) | ||
Changes in operating assets and liabilities: | ||||
Operating lease right-of-use assets | 817,000 | 347,000 | ||
Current and long-term lease obligations | (1,004,000) | (470,000) | ||
Accounts receivable and accrued revenue | 2,000 | 29,000 | ||
Other assets | (33,000) | (40,000) | ||
Accounts payable and accrued expenses | (12,000) | (63,000) | ||
Deferred revenue | (24,000) | 3,000 | ||
Other liabilities | 17,000 | (2,000) | ||
Net cash provided by (used in) operating activities | (284,000) | (338,000) | $ (700,000) | $ (1,900,000) |
Cash Flows from Investing Activities: | ||||
Purchases of property, equipment and capitalized software | (59,000) | (74,000) | ||
Other investing | (2,000) | (14,000) | ||
Net cash provided by (used in) investing activities | (61,000) | (88,000) | ||
Cash Flows from Financing Activities: | ||||
Proceeds from issuance of debt | 723,000 | 0 | ||
Repayments of debt | (351,000) | (1,000) | ||
Additions to members’ service retainers | 92,000 | 99,000 | ||
Refunds of members’ service retainers | (99,000) | (75,000) | ||
Other financing | (12,000) | (1,000) | ||
Net cash provided by (used in) financing activities | 353,000 | 22,000 | ||
Effects of exchange rate changes on cash, cash equivalents and restricted cash | (1,000) | (1,000) | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | 7,000 | (405,000) | ||
Cash, cash equivalents and restricted cash—Beginning of period | 299,000 | 935,000 | 935,000 | |
Cash, cash equivalents and restricted cash—End of period | 306,000 | 530,000 | 299,000 | 935,000 |
Cash, cash equivalents and restricted cash, including cash held for sale | ||||
Cash and cash equivalents | 224,000 | 519,000 | 287,000 | |
Restricted cash - current (Note 7) | 71,000 | 0 | 0 | |
Cash and cash equivalents held for sale (Note 7) | 7,000 | 0 | 7,000 | |
Restricted cash (Note 10) | 4,000 | 11,000 | 5,000 | |
Cash, cash equivalents and restricted cash, including cash held for sale | $ 306,000 | $ 530,000 | $ 299,000 | $ 935,000 |
Organization and Business
Organization and Business | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | Note 1. Organization and Business WeWork Inc.'s core global business offering integrates space, community, services and technology in 781 locations, including 617 Consolidated Locations, around the world as of March 2023. The Company's membership offerings are designed to accommodate its members' distinct space needs. WeWork provides its members the optionality to choose from a dedicated desk, a private office or a fully customized floor with the flexibility to choose the type of membership that works for them on a monthly subscription basis, through a multi-year membership agreement or on a pay-as-you-go basis. The Company’s operations are headquartered in New York. WeWork Companies Inc. was founded in 2010. The We Company was incorporated under the laws of the state of Delaware in April 2019 as a direct wholly-owned subsidiary of WeWork Companies Inc. As a result of various legal entity reorganization transactions undertaken in July 2019, The We Company became the holding company of the Company's business, and the then-stockholders of WeWork Companies Inc. became the stockholders of The We Company. WeWork Companies Inc. is the predecessor of The We Company for financial reporting purposes. Effective October 14, 2020, The We Company changed its legal name to WeWork Inc. ("Legacy WeWork"). On October 20, 2021 (the “Closing Date”), the Company (which was formerly known as BowX Acquisition Corp. (“Legacy BowX”)) consummated its previously announced business combination pursuant to that certain Agreement and Plan of Merger, dated as of March 25, 2021 (the “Merger Agreement”), by and among Legacy BowX, a subsidiary of Legacy BowX, and Legacy WeWork. As contemplated by the Merger Agreement, (1) the subsidiary of Legacy BowX merged with and into Legacy WeWork, with Legacy WeWork surviving as a wholly owned subsidiary of Legacy BowX, and (2) immediately thereafter, Legacy WeWork merged with and into another subsidiary of Legacy BowX (such mergers and collectively with the other transactions described in the Merger Agreement, the “Business Combination”). In connection with the closing of the Business Combination, Legacy BowX changed its name to WeWork Inc., resulting in WeWork Inc. becoming a publicly traded company. Unless the context indicates otherwise, references in this Form 10-Q to (A) “WeWork”, “the Company,” “we,” “us” and “our” are to the business of WeWork Inc., a Delaware corporation, and its consolidated subsidiaries following the closing of the Business Combination and to (B) “Legacy WeWork” are to WeWork Inc. and its consolidated subsidiaries prior to the closing of the Business Combination. “Legacy BowX” refers to BowX Acquisition Corp. prior to the Business Combination. The Company 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 (the "Issuer"). The Company, through the WeWork Partnership and WeWork Companies LLC, holds all the assets held by WeWork Companies Inc. prior to the July 2019 legal entity reorganization and is subject to all the liabilities to which WeWork Companies Inc. was subject prior to the 2019 legal entity reorganization. All references to "SBG" are references to SoftBank Group Corp. or a controlled affiliate or subsidiary thereof, but, unless the context otherwise requires, such references do not include SVF Endurance (Cayman) Limited ("SVFE"), the SoftBank Vision Fund (AIV M1) L.P. ("SoftBank Vision Fund") or the SoftBank Vision Fund II-2 L.P. ("SVF II"). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation — The accompanying unaudited Condensed Consolidated Financial Statements and notes to the unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial reporting. In accordance with such rules and regulations, certain information and accompanying note disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted, although the Company believes the disclosures included herein are adequate to make the information presented not misleading. In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements reflect all normal recurring adjustments, which are considered necessary for the fair presentation of the financial position of the Company at March 31, 2023 and the results of operations for the interim periods presented. The operating results for the periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2022, included in WeWork Inc.'s Form 10-K for the year ended December 31, 2022 (the "2022 Form 10-K"). Other than the changes described below, no material changes have been made to the Company's significant accounting policies disclosed in Note 2, Summary of Significant Accounting Policies , in its 2022 Form 10-K filed on March 29, 2023. Certain terms not otherwise defined in this Form 10-Q have the meanings specified in the 2022 Form 10-K. The Company operates as a single operating segment. See Note 20 for further discussion on the Company's segment reporting. The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of the Company, its majority‑owned subsidiaries and variable interest entities ("VIEs") for which the Company is the primary beneficiary. All intercompany accounts and transactions have been eliminated in consolidation. The Company is required to consolidate entities deemed to be VIEs in which the Company is the primary beneficiary. The Company is considered to be the primary beneficiary of a VIE when the Company has (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses or receive benefits that could potentially be significant to the VIE. JapanCo, LatamCo, WeCap Manager, and WeCap Holdings Partnership (each as defined in Note 8) are the Company's only consolidated VIEs as of March 31, 2023. See Note 8 for discussion of the consolidated VIE transactions during the three months ended March 31, 2023 and 2022. See Note 9 for discussion of the Company’s non-consolidated VIEs. Liquidity and Going Concern — The accompanying unaudited Condensed Consolidated Financial Statements are prepared in accordance with U.S. GAAP applicable to a going concern. This presentation contemplates the realization of assets and the satisfaction of liabilities in the normal course of business and does not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of the uncertainties described below. Pursuant to ASC 250-40, Presentation of Financial Statements — Going Concern (“ASC 250-40”) , management must evaluate whether there are conditions and events, considered in aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for one year after the date that these Condensed Consolidated Financial Statements are issued. In accordance with ASC 250-40, management’s analysis can only include the potential mitigating impact of management’s plans that have not been fully implemented as of the issuance date if (a) it is probable that management’s plans will be effectively implemented on a timely basis, and (b) it is probable that the plans, when implemented, will alleviate the relevant conditions or events that raise substantial doubt about the Company’s ability to continue as a going concern. Evaluation in conjunction with the issuance of the March 31, 2023 unaudited Condensed Consolidated Financial Statements The Company has incurred net losses of $0.3 billion, $2.3 billion, $4.6 billion, and $3.8 billion, for the three months ended March 31, 2023 and the years ended December 31, 2022, 2021, and 2020, respectively, and negative cash flow from operating activities of $0.3 billion, $0.7 billion, $1.9 billion, and $0.9 billion, respectively. As of March 31, 2023, the Company had $224 million in cash and cash equivalents, including $43 million held at its consolidated VIEs, and a $250 million commitment under the Secured NPA. In April 2023, the Company issued $50 million of previously committed Secured Notes to SVF Il leaving $200 million of remaining commitment under the Secured NPA. Our losses and projected cash needs, combined with our current liquidity level, initially raised substantial doubt about the Company’s ability to continue as a going concern. Management’s plan to improve the Company’s liquidity and successfully mitigate the substantial doubt includes (1) restructuring existing debt and raising additional capital and, (2) taking additional operational restructuring actions furthering the plan that commenced following a change in leadership in 2020. Debt restructuring and capital raising In March 2023, the Company entered into certain contractually committed comprehensive recapitalization transactions (defined as the "Transactions" and as further described in Note 21, "Subsequent Events") with an Ad Hoc Group of our bondholders, SBG and affiliates, and a third-party investor. On May 5, 2023, the Transactions closed increasing our net liquidity by over $515 million , prior to transaction costs, through: • $975 million increase in net liquidity from issuance of and commitments to issue new first lien notes, including (i) $500 million of New First Lien Notes (as defined below) sold, (ii) up to $175 million of Third Party Investor Delayed Draw Notes (as defined below) committed from a third-party investor, and (iii) up to $300 million of SoftBank Delayed Draw Notes (as defined below) commitment from SVF II; • $40 million increase in net liquidity from issuance of 35 million shares of Class A Common Stock in a private placement to a third party investor at a purchase price of $1.15 per share; and • $500 million decrease in net liquidity from the repayment of the $300 million Secured Notes sold to SVF II as of the close of the Transactions and cancellation of the remaining $200 million commitment from SVF II under the Secured NPA. The Transactions also cancelled or converted approximately $1.5 billion of total debt through equitization or discounted exchanges of our 5.00% Senior Notes and 7.875% Senior Notes and extended certain debt maturities from 2025 to 2027 as more fully described in Note 21, "Subsequent Events." Operational restructuring plans The Company has been executing a strategic plan to transform our business over the last three years. The Company will continue to execute our operational restructuring program in 2023 and take additional actions to further this strategic plan which to date has included robust expense management efforts, material real estate portfolio optimization and the exit of non-core businesses, contributing to an improvement in our net loss from operations of $4.3 billion for the year ended December 31, 2020 to $1.6 billion for the year ended December 31, 2022. The Company's net loss from operations also improved 43% from $0.4 billion to $0.2 billion , during the three months ended March 31, 2022 and 2023, respectively. The operational restructuring and expense management efforts also contributed to a decrease of our net loss from operations as a percentage of revenue from (127)% for the year ended December 31, 2020, to (49)% for the year ended December 31, 2022, and (24)% for the three months ended March 31, 2023. Management's plans over the next twelve months include the further reduction of gross capital expenditures and other SG&A cost saving measures. In addition, the Company will continue to assess our real estate portfolio to amend or exit unfavorable leases or underperforming locations, and negotiate rent reductions. Management believes that the expected impact on our liquidity and cash flows resulting from the Transactions and the operational initiatives outlined above are sufficient to enable the Company to meet its obligations for at least twelve months from the issuance date and alleviate the conditions that initially raised substantial doubt about the Company's ability to continue as a going concern. Use of Estimates — The preparation of the unaudited Condensed Consolidated Financial Statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amount of revenues and expenses during the reporting periods. Estimates inherent in the current financial reporting process inevitably involve assumptions about future events. Actual results could differ from those estimates. This includes the net operating income assumptions in the Company's long-lived asset impairment testing, the timing of capital expenditures and fair value measurement changes for assets and liabilities that the Company measures at fair value and its assessment of its ability to continue to meet its obligations as they come due. The Company's net operating assumptions and liquidity forecasts are based upon continued execution of its operational restructuring program and also includes management's best estimate of the currently evolving macroeconomic landscape, including a potential economic recession, rising interest rates, inflation, and the slower than expected recovery in certain markets from the impact of the COVID-19 pandemic. These factors may continue to have an impact on WeWork's business and its liquidity needs; however, the extent to which the Company's future results and liquidity needs are further affected will largely depend on the delays in location openings, our members' renewal of their membership agreements, the effect on demand for WeWork memberships, any permanent shifts in working from home and the Company's ongoing lease negotiations with its landlords, among others. WeWork believes continued execution of its operational restructuring program and its current liquidity position will be sufficient to help it alleviate the continued near-term uncertainty and meet near-term requirements. Its assessment assumes a continued growth in its revenues and occupancy. If the Company does not experience a continued recovery consistent with its projected timing, additional capital sources may be required, the timing and source of which are uncertain. There is no assurance the Company will be successful in securing additional sources of financing if and when needed. Reclassifications — Certain reclassifications have been made to prior years' financial information to conform to the current year presentation. This includes the inclusion of 5.00% Senior Notes in Long-term debt, net, and the inclusion of Warrant liabilities, net in Other liabilities for all periods presented on the Condensed Consolidated Balance Sheets. Income Taxes — The Company calculates its quarterly income tax provision pursuant to Accounting Standard Codification ("ASC") 740-270, Income Taxes — Interim Reporting, which provides that a Company cannot recognize a tax benefit in its annual effective tax rate for any jurisdiction with a pre-tax book loss and full valuation allowance (“excluded jurisdictions”). For the three months ended March 31, 2023 and 2022, the Company recorded an income tax benefit of $3 million and $1 million, respectively, resulting in effective tax rates of (0.99)% and (0.20)%, respectively. As of March 31, 2023 and December 31, 2022, the Company had net deferred income tax assets of $9 million and $2 million, respectively, which were included within other assets on the accompanying Condensed Consolidated Balance Sheets. The Company analyzed its various tax positions and did not identify any material uncertain tax positions for the three months ended March 31, 2023 and 2022. |
Supplemental Disclosure of Cash
Supplemental Disclosure of Cash Flow Information | 3 Months Ended |
Mar. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Supplemental Disclosure of Cash Flow Information | Note 3. Supplemental Disclosure of Cash Flow Information Three Months Ended March 31, (Amounts in millions) 2023 2022 Supplemental Cash Flow Disclosures: Cash paid during the period for interest (net of capitalized interest of none during 2023 and 2022) $ 69 $ 46 Cash received for operating lease incentives — tenant improvement allowances 27 43 Other non-cash operating expenses: Provision for allowance for doubtful accounts 2 (1) (Income) loss from equity method and other investments 2 (6) Change in fair value of financial instruments — (3) Other non-cash operating expenses 4 (10) Other investing: Change in security deposits with landlords — (1) Contributions to investments — (5) Distributions from investments — 1 Cash used for acquisitions, net of cash acquired — (9) Deconsolidation of South Africa, net of cash received (2) — Other investing (2) (14) Other financing: Principal payments for property and equipment acquired under finance leases (2) (1) Debt and equity issuance costs (9) — Proceeds from exercise of stock options and warrants 1 — Taxes paid on withholding shares (1) — Payments for contingent consideration and holdback of acquisition proceeds (1) — Other financing (12) (1) Supplemental Disclosure of Non-cash Investing & Financing Activities: Property and equipment included in accounts payable and accrued expenses 52 101 Transfer of assets to held for sale, net 112 43 Transfer of liabilities related to assets held for sale, net 101 — Additional ASC 842 Supplemental Disclosures Three Months Ended March 31, (Amounts in millions) 2023 2022 Cash paid for fixed operating lease costs included in the measurement of lease obligations in operating activities $ 540 $ 541 Cash paid for interest relating to finance leases in operating activities 1 1 Cash paid for principal relating to finance leases in financing activities 2 1 Right-of-use assets obtained in exchange for operating lease obligations, net of modifications and terminations (883) (352) |
Restructuring, Impairments and
Restructuring, Impairments and Gains on Sale | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Impairments and Gains on Sale | Note 4. Restructuring, Impairments and Gains on Sale In September 2019, the Company initiated an operational restructuring program that included a change in executive leadership and plans for cost reductions that aim to improve the Company's operating performance. Since 2019, the Company has made significant progress toward its operational restructuring goals including divesting or winding down various non-core operations not directly related to its core space-as-a-service offering, significant reductions in costs associated with selling, general and administrative expenses, and improvements to its operating performance through efforts in right-sizing its real estate portfolio to better match supply with demand in certain markets. During the three months ended March 31, 2023, the Company terminated leases associated with a total of 24 previously opened locations, including 3 locations associated with sale of our net assets in WeWork South Africa (Pty) Ltd and no pre-open locations compared to 13 previously opened locations and 2 pre-open locations terminated during the three months ended March 31, 2022, bringing the total terminations since the beginning of the restructuring to 276. In conjunction with the efforts to right-size its real estate portfolio, since 2019 the Company has also successfully amended over 540 leases for a combination of partial terminations to reduce its leased space, rent reductions, rent deferrals, offsets for tenant improvement allowances and other strategic changes. These amendments and full and partial lease terminations have resulted in an estimated reduction of approximately $11.6 billion in total future undiscounted fixed minimum lease cost payments that were scheduled to be paid over the life of the original executed lease agreements, including changes to the obligations of WeWork South Africa (Pty) Ltd. ("South Africa") which occurred during the period it was consolidated. The deconsolidation of South Africa in March 2023 also resulted in a decline of approximately $21 million in our consolidated total future undiscounted fixed minimum lease cost payments based on the future obligations that existed just prior to the deconsolidation. Over 40 of these amendments were executed during the three months ended March 31, 2023, reducing the total future undiscounted fixed minimum lease cost payments by an estimated $0.9 billion. The Company anticipates that there may be additional impairment, restructuring and related costs during 2023, consisting primarily of lease termination charges, other exit costs and costs related to ceased use buildings, as the Company is still in the process of finalizing its operational restructuring plans. Management is continuing to evaluate the Company's real estate portfolio in connection with its ongoing restructuring efforts and expects to exit additional leases. Restructuring and other related (gains) costs totaled $(58) million and $(130) million during the three months ended March 31, 2023 and 2022, respectively. The details of these net charges are as follows: Three Months Ended March 31, (Amounts in millions) 2023 2022 Employee terminations $ 7 $ 2 Ceased use buildings 31 16 Gains on lease terminations, net (107) (154) Other, net 11 6 Total $ (58) $ (130) As of March 31, 2023 and December 31, 2022, net restructuring liabilities totaled approximately $112 million and $53 million, respectively, including $92 million and $47 million, respectively, in accounts payable and accrued expenses and, $22 million and $9 million, respectively, in other liabilities, net of $2 million and $3 million, respectively, in receivables from landlords in connection with lease terminations, included in other current assets in the Condensed Consolidated Balance Sheets. A reconciliation of the beginning and ending restructuring liability balances is as follows: Three Months Ended March 31, Year Ended December 31, (Amounts in millions) 2023 2022 Restructuring liability — Balance at beginning of period $ 53 $ 79 Restructuring and other related (gains) costs expensed during the period (58) (200) Cash payments of restructuring liabilities, net (1) (48) (213) Non-cash impact — primarily asset and liability write-offs and stock-based compensation 165 387 Restructuring liability — Balance at end of period (2) $ 112 $ 53 (1) Includes cash payments received from landlords for terminated leases of none and $22 million for the three months ended March 31, 2023 and the year ended December 31, 2022, respectively. (2) Includes leases termination fees of $56 million and $25 million included in accounts payables and accrued expenses and $22 million and $9 million in other liabilities as of March 31, 2023 and December 31, 2022, respectively. In connection with the operational restructuring program and related changes in the Company's leasing plans and planned or completed disposition or wind down of certain non-core operations and projects, the Company has also recorded various other non-routine write-offs, impairments and gains on sale of goodwill, intangibles and various other long-lived assets. During the three months ended March 31, 2023 and 2022, the Company also performed its quarterly impairment assessment for long-lived assets. As a result of macroeconomic events such as the COVID-19 pandemic and the ongoing conflict between Russia and Ukraine and the resulting declines in revenue and operating income experienced by certain locations as of March 31, 2023 and 2022, WeWork identified certain assets whose carrying value was now deemed to have been partially impaired. The Company evaluated its estimates and assumptions related to its locations’ future performance and performed a comprehensive review of its locations’ long-lived assets for impairment, including both property and equipment and operating lease right-of-use assets, at an individual location level. Key assumptions used in estimating the fair value of WeWork's location assets in connection with the Company's impairment analyses are revenue growth, lease costs, market rental rates, changes in local real estate markets in which we operate, inflation, and the overall economics of the real estate industry. The Company's assumptions account for the estimated impact of the COVID-19 pandemic and the ongoing conflict between Russia and Ukraine. During the three months ended March 31, 2023 and 2022, the Company recorded $15 million and $35 million , respectively, in impairments, primarily as a result of decreases in projected cash flows primarily attributable to the impact of COVID-19. Non-routine gains and impairment charges totaled $77 million and $91 million during the three months ended March 31, 2023 and 2022, respectively, and are included on a net basis as impairment expense/(gain on sale) in the accompanying Condensed Consolidated Statements of Operations. The details of these net charges are as follows: Three Months Ended March 31, (Amounts in millions) 2023 2022 Impairment and write-off of long-lived assets associated with restructuring $ 71 $ 56 Impairment expense, other 15 35 Impairment of assets held for sale 3 — Gain on sale of assets (12) — Total $ 77 $ 91 |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Note 5. Acquisitions In March 2022, the Company acquired 100% of the equity of Common Desk Inc. ("Common Desk") for a total consideration of $21 million. Common Desk is a Dallas-based coworking operator with 23 locations in Texas and North Carolina, that operates a majority of its locations under asset-light management agreements with landlords. At closing, the Company transferred to the owners of Common Desk $10 million in cash and $3 million fair value of 489,071 shares of its Class A common stock of the Company. The remaining consideration included a holdback of $3 million payable in cash and contingent consideration payable in 760,969 shares of Class A common stock with a fair value of $5 million at closing. During the three months ended March 31, 2023, the Company released $1 million of the holdback payable in cash and 155,586 shares of Class A common stock with a value of $0.1 million. As of March 31, 2023, no remaining cash consideration was included in other liabilities. As of March 31, 2023, $1 million of contingent consideration payable in Class A common stock was included in additional paid-in capital on the accompanying Condensed Consolidated Balance Sheets. The Company determined the fair value of the contingent consideration based on the likelihood of reaching set milestones. Each period, the contingent consideration will be remeasured to fair market value through the Condensed Consolidated Statements of Operations. During the three months ended March 31, 2023 and 2022, the Company recorded a loss of none and $1 million, respectively, included in selling, general and administrative expenses on the accompanying Condensed Consolidated Statements of Operations. The allocation of the total acquisition consideration during the three months ended March 31, 2022 is estimated as follows: 2022 (Amounts in millions) Acquisitions Cash and cash equivalents $ 1 Property and equipment 2 Goodwill 10 Finite-lived intangible assets 12 Lease right-of-use assets, net 2 Deferred tax liability (4) Lease obligation, net (2) Total consideration $ 21 There were no acquisitions during the three months ended March 31, 2023. During the three months ended March 31, 2023 and 2022 the Company incurred acquisition transaction costs of none and $0.04 million included in selling, general and administrative expenses in its Condensed Consolidated Statements of Operations. |
Prepaid Expenses
Prepaid Expenses | 3 Months Ended |
Mar. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses | Note 6. Prepaid Expenses Prepaid expenses consists of the following: (Amounts in millions) March 31, 2023 December 31, 2022 Prepaid member referral fees and deferred sales incentive compensation (Note 14) $ 51 $ 55 Prepaid lease costs 30 32 Prepaid income taxes 28 31 Prepaid software 21 13 Other prepaid expenses 9 7 Total prepaid expenses $ 139 $ 138 |
Other Current Assets
Other Current Assets | 3 Months Ended |
Mar. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | Note 7. Other Current Assets Other current assets consists of the following: (Amounts in millions) March 31, 2023 December 31, 2022 Assets held for sale (includes $7 cash) $ 164 $ 52 Restricted cash 71 — Deposits held by landlords 38 13 Net receivable for value added tax (“VAT”) 30 40 Straight-line revenue receivable 22 24 Other current assets 43 26 Total other current assets $ 368 $ 155 During the year ended December 31, 2022, management had committed to a strategy of disposition for the net assets of its operations in Russia, the United Arab Emirates, and South Africa. The related assets and liabilities are included as a component of other current assets and other current liabilities, respectively, in the accompanying Condensed Consolidated Balance Sheets as of December 31, 2022. During the three months ended March 31, 2023, the Company sold the net assets of its operations in South Africa. The purchaser assumed the obligations of our South Africa locations and entered into a franchise agreement with the Company. The Company recognized a gain on the sale of South Africa of $12 million, including a $4 million transfer of cumulative translation adjustment, included as a component impairment/(gain on sale) in the accompanying Condensed Consolidated Statements of Operations. During the three months ended March 31, 2023, management had committed to a strategy of disposition for the sale of net assets in Costa Rica and Peru. As of March 31, 2023, the assets and liabilities of Russia, the United Arab Emirates, Costa Rica and Peru are included as a component of other current assets and other current liabilities, respectively, in the the accompanying Condensed Consolidated Balance Sheets. |
Consolidated VIEs and Noncontro
Consolidated VIEs and Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidated VIEs and Noncontrolling Interests | Note 8. Consolidated VIEs and Noncontrolling Interests As of March 31, 2023 and 2022, JapanCo, LatamCo, WeCap Manager, and WeCap Holdings Partnership are the Company's only consolidated VIEs. The Company is considered to be the primary beneficiary as we have the power to direct the activities of the VIEs that most significantly impact the VIEs’ economic performance and the right to receive benefits that could potentially be significant to the VIEs. As a result, these entities remain consolidated subsidiaries of the Company and the interests owned by the other investors and the net income or loss and comprehensive income or loss attributable to the other investors are reflected as redeemable noncontrolling interests and noncontrolling interests on WeWork's Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Comprehensive Loss, respectively. The following table includes selected condensed consolidated financial information as of March 31, 2023 and December 31, 2022 of the Company's consolidated VIEs, as included in its Condensed Consolidated Financial Statements, in each case, after intercompany eliminations. March 31, 2023 December 31, 2022 (Amounts in millions) SBG JVs (1) Other VIEs (2) SBG JVs (1) Other VIEs (2) Consolidated VIE Balance Sheets information: Cash and cash equivalents $ 36 $ 7 $ 55 $ 6 Property and equipment, net 469 — 498 — Restricted cash 3 — 3 — Total assets 2,241 11 2,299 10 Long-term debt, net 5 — 3 — Total liabilities 2,146 1 2,176 3 Redeemable stock issued by VIEs 80 — 80 — Total net assets (3) 15 10 43 7 The following tables include selected condensed consolidated financial information for the three months ended March 31, 2023 and 2022, of the Company's consolidated VIEs, as included in its Condensed Consolidated Financial Statements, for the periods they were considered VIEs and in each case, after intercompany eliminations. Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 (Amounts in millions) SBG JVs (1) Other VIEs (2) SBG JVs (1) Other VIEs (2) Consolidated VIE Statements of Operations information: Total revenue $ 119 $ 2 $ 98 $ 3 Net income (loss) (29) (1) (71) — Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 (Amounts in millions) SBG JVs (1) Other VIEs (2) SBG JVs (1) Other VIEs (2) Consolidated VIE Statements of Cash Flows information: Net cash provided by (used in) operating activities $ (23) $ (4) $ (40) $ (1) Net cash used in investing activities (5) — (7) — Net cash provided by (used in) financing activities 8 4 6 1 (1) The “SBG JVs” include JapanCo and LatamCo as of and for the periods that each represented a consolidated VIE. The consent of an affiliate of SoftBank Group Capital Limited is required for any dividends to be distributed by JapanCo and LatamCo. As a result, any net assets of JapanCo and LatamCo would be considered restricted net assets to the Company as of March 31, 2023. The net assets of the SBG JVs include membership interest in JapanCo issued to affiliates of SBG with liquidation preferences totaling $500 million as of March 31, 2023 and December 31, 2022 and ordinary shares in LatamCo totaling $80 million as of March 31, 2023 and December 31, 2022 that are redeemable upon the occurrence of event that is not solely within the control of the company. After reducing the net assets of the SBG JVs by the liquidation preference associated with such membership interest and redeemable ordinary shares, the remaining net assets of the SBG JVs are negative as of March 31, 2023 and December 31, 2022. (2) For the three months ended March 31, 2023 and 2022, "Other VIEs" includes WeCap Manager and WeCap Holdings Partnership. (3) Total net assets represents total assets less total liabilities and redeemable stock issued by VIEs after the total assets and total liabilities have both been reduced to remove amounts that eliminate in consolidation. The assets of consolidated VIEs will be used first to settle obligations of the applicable VIE. Remaining assets may then be distributed to the VIEs' owners, including the Company, subject to the liquidation preferences of certain noncontrolling interest holders and any other preferential distribution provisions contained within the operating agreements of the relevant VIEs. Other than the restrictions relating to the Company’s SBG JVs as discussed in (1) above, third-party approval for the distribution of available net assets is not required for the Company’s Other VIEs as of March 31, 2023. See Note 18 for a discussion of additional restrictions on the net assets of WeWork Companies LLC. WeWork Partnership On October 21, 2021, Mr. Neumann converted 19,896,032 vested WeWork Partnership Profits Interest Units into WeWork Partnership Class A common units. On the date of the conversion notice, the distribution threshold of Mr. Neumann’s vested profits interest units was $10.38, and the catch-up base amount was $0.00 for a conversion fair value of $234 million. The Company recorded the conversion as a noncontrolling interest on its Condensed Consolidated Balance Sheets at the conversion fair value. On December 31, 2021, Mr. Neumann transferred all of his WeWork Partnership Class A Common Units to NAM WWC Holdings, LLC, which is Mr. Neumann’s affiliated investment vehicle. During the three months ended March 31, 2023 and 2022, NAM WWC Holdings, LLC owned 2.71% and 2.73%, respectively, of the WeWork Partnership and the Company allocated a loss of $7 million and $11 million for the three months ended March 31, 2023 and 2022, respectively, which was based on the relative ownership interests of Class A common unit holders in the WeWork Partnership in the Company’s Condensed Consolidated Statements of Operations. JapanCo During 2017, a consolidated subsidiary of the Company (“JapanCo”) entered into an agreement with an affiliate of SBG for the sale of a 50.0% membership interest in JapanCo for an aggregate contribution of $500 million which was funded over a period of time. In April 2022, JapanCo received additional contributions from the members, including an additional contribution of $31 million from affiliates of SBG resulting in no change in ownership interest of JapanCo. In accordance with ASC 810, it was determined that the combined interest of the Company and its related party, the affiliate of SBG, are the primary beneficiary of JapanCo. The Company was also determined to be the related party that is most closely associated to JapanCo as the activities that most significantly impact JapanCo's economic performance are aligned with those of the Company. As long as the investors remain shareholders of JapanCo, JapanCo will be the exclusive operator of the Company’s WeWork branded space-as-a-service businesses in Japan. LatamCo During September 2021, a consolidated subsidiary of the Company (“LatamCo”) entered into an agreement with SoftBank Latin America ("SBLA"), an affiliate of SBG, for the sale of 71.0% interest (with up to 49.9% voting power) in LatamCo for an aggregate contribution of $80 million funded through equity and secured promissory notes, in exchange for ordinary shares of LatamCo. As of December 31, 2021, LatamCo received the total contributions totaling $80 million. It was determined that the combined interest of the Company and SBLA, the affiliate of SBG, are the primary beneficiaries of LatamCo. The Company was also determined to be the related party that is most closely associated to LatamCo as the activities that most significantly impact LatamCo's economic performance are aligned with those of the Company. Due to the sell-out rights discussed below, the portion of consolidated equity attributable to the SBLA’s interests in LatamCo are reflected as redeemable noncontrolling interests within the mezzanine section of the accompanying Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022. Upon formation of LatamCo, the Company contributed its businesses in Argentina, Mexico, Brazil, Colombia and Chile (collectively, the "Greater Latin American territory"), committed and funded $13 million to LatamCo, and remains as guarantor on certain lease obligations, in exchange for ordinary shares of LatamCo. Pursuant to the terms of the agreement, the Company was liable up to $27 million for costs related to the termination of certain leases within the first 12 months of the agreement, as of September 30, 2022, the Company had incurred $13 million of termination costs. In September 2022, the Company entered into an amended agreement removing the remaining liability for costs related to the termination of certain leases. Pursuant to the terms of the amended agreement, the Company is liable for the monthly reimbursements of certain real estate operating lease costs on certain leases through the end of their lease term, the remaining liability is approximately $30 million as of March 31, 2023. The longest lease term extends through 2034. Pursuant to the terms of the agreement, an additional $60 million may be received by LatamCo from the exercise of SBLA's call options during the first and second year of operations. Further, SBLA maintains sell-out rights based on the performance of LatamCo, exercisable between September 1, 2025 and August 31, 2026, and the Company holds subsequent buy-out rights exercisable between September 1, 2027 and August 31, 2028. The stock associated with SBLA’s sell-out rights was initially recorded based on the fair value at the time of issuance. While SBLA’s ownership interest is not currently redeemable, based on management’s consideration of LatamCo’s expected future operating cash flows, it is not probable at March 31, 2023 that SBLA’s interest will become redeemable. The Company will accrete changes in the carrying value of the noncontrolling interest (redemption value) from the date that it becomes probable that the interest will become redeemable to the earliest redemption date, through an adjustment to additional paid-in capital. In February 2022, a fully owned subsidiary of the Company contributed its business in Costa Rica, transferring 100% interest to LatamCo, and granted LatamCo the exclusive right to operate the Company’s business in Costa Rica under the WeWork brand, in exchange for a waiver by SBG, an affiliate of SBLA, of its right to be reimbursed by the Company for $7 million of the remaining reimbursement obligation in connection with the SoftBank Transactions (as discussed in Note 19). Upon the contribution of its business in Costa Rica, Costa Rica is considered as part of the Greater Latin American territory. Provided that certain investors remain shareholders of LatamCo, LatamCo will be the exclusive operator of the Company’s businesses in the Greater Latin American territory. WeCap Manager WeWork Capital Advisors LLC (the "WeCap Manager") is a majority-owned subsidiary of the Company and its controlled affiliates. The WeCap Manager is also 20% owned by another investor and its affiliates (other than the WeCap Manager) (together with the Company, the “Sponsor Group”), a global alternative asset management firm with assets under management across its private equity and real estate platforms. The portion of consolidated equity attributable to the outside investor's interest in the WeCap Manager is reflected as a noncontrolling interest in the equity section of the accompanying Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022. The WeCap Manager earns customary management fees, subject to provisions of the governing documents of the WeCap Manager relating to funding of losses incurred by the WeCap Manager. During the three months ended March 31, 2023 and 2022, the WeCap Manager recognized $2 million and $3 million, respectively, in management fee income, which is classified as other revenue as a component of the Company's total revenue on the accompanying Condensed Consolidated Statements of Operations. WeCap Holdings Partnership WeCap Manager and the Sponsor Group (collectively, "WeCap Investment Group") also includes the Company's general partner interests in WPI Fund, ARK Master Fund, and included its investment in DSQ prior to its sale in September 2022, held through a limited partnership (the "WeCap Holdings Partnership"). The Company consolidates the WeCap Holdings Partnership. Net carried interest distributions earned in respect of the WeCap Investment Group from its investments are distributable to the Company, indirectly through the WeCap Holdings Partnership, based on percentages that vary by the WeCap Investment Group vehicle and range from a 50% to 85% share to the Company of total net carried interest distributions received by the WeCap Holdings Partnership (after a profit participation allocation to certain personnel associated with the WeCap Manager). The portion of consolidated equity attributable to outside investor's interest in the WeCap Holdings Partnership is reflected as a noncontrolling interests in the equity section of the accompanying Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022. |
Equity Method and Other Investm
Equity Method and Other Investments | 3 Months Ended |
Mar. 31, 2023 | |
Investments, All Other Investments [Abstract] | |
Equity Method and Other Investments | Note 9. Equity Method and Other Investments The Company's investments consist of the following: March 31, 2023 December 31, 2022 (Amounts in millions, except percentages) Carrying Cost Percentage Carrying Investee Investment Type Value Basis Ownership Value IndiaCo (1) Equity method investment $ 30 $ 105 27.5% $ 29 WPI Fund (2) Equity method investment 21 36 8.0% 25 Investments held by WeCap Holdings Partnership (3) Equity method investments 4 5 Various 4 ChinaCo (4) Equity method investment — 29 19.7% — Other (5) Various 5 6 Various 5 Total equity method and other investments $ 60 $ 181 $ 63 (1) In June 2020, the Company entered into an agreement with WeWork India Management Private Limited (“IndiaCo”), an affiliate of Embassy Property Developments Private Limited (“Embassy”), to subscribe for new convertible debentures to be issued by IndiaCo in an aggregate principal amount of $100 million (the "2020 Debentures"). During June 2020, $85 million of the principal had been funded, with the remaining $15 million funded in April 2021. The 2020 Debentures earned interest at a coupon rate of 12.5% per annum for the 18-month period beginning in June 2020 which then was reduced to 0.001% per annum and have a maximum term of 10 years. The 2020 Debentures are convertible into equity at the Company’s option after 18 months from June 2020 or upon mutual agreement between the Company, IndiaCo, and Embassy. During the three months ended March 31, 2023 and 2022, the Company recorded a credit loss valuation allowance on its investments in IndiaCo totaling none and $1 million, respectively, included in Income (loss) from equity method and other investments. During the three months ended March 31, 2023 and 2022 , the Company recorded none and $2 million, respectively, in unrealized gain (loss) on available-for-sale securities included in other comprehensive income, net of tax. In January 2022, the Company converted the 2020 Debentures and other convertible debentures into 12,397,510 and 3,375,000 common shares of IndiaCo, respectively, representing an ownership interest in IndiaCo of approximately 27.5%. In December 2022, the Company pledged 8,467,347 of its shares of IndiaCo, representing 14.7% of the securities issued by IndiaCo on a fully diluted basis, as collateral for IndiaCo to enter into a debenture trust deed. As of March 31, 2023 and December 31, 2022, the carrying value of the investment included $0.3 million and $0.4 million, respectively, for the unamortized guarantee. See Note 13 for details regarding the IndiaCo share pledge. IndiaCo constructs and operates workspace locations in India using WeWork’s branding, advice and sales model. Per the terms of an agreement the Company also receives a management fee from IndiaCo. The Company recorded $2 million and $2 million of management fee income from IndiaCo during the three months ended March 31, 2023 and 2022 , respectively. Management fee income is included within service revenue as a component of total revenue in the accompanying Condensed Consolidated Statements of Operations. (2) In addition to the general partner interest in the WPI Fund (as discussed and defined below) held by WeCap Holdings Partnership, a wholly owned subsidiary of the WeCap Investment Group also owns an 8% limited partner interest in the WPI Fund. (3) As discussed in Note 8, the following investments are investments held by WeCap Holdings Partnership, which are accounted for by the WeCap Holdings Partnership as equity method investments: • "WPI Fund" — a real estate investment fund in which WeCap Holdings Partnership holds the 0.5% general partner interest. The WPI Fund’s focus is acquiring, developing and managing office assets with current or expected vacancy suitable for WeWork occupancy, currently primarily focusing on opportunities in North America and Europe. • "ARK Master Fund" — an investment fund in which WeCap Holdings Partnership is the general partner and holds a limited partner interest totaling 2% of the fund's invested capital. ARK Master Fund invests in real estate and real estate-related investments that it expects could benefit from the Company’s occupancy or involvement or the involvement of the limited partners of the ARK Master Fund. (4) In October 2020, the Company deconsolidated ChinaCo and its retained 21.6% ordinary share equity method investment was recorded at a fair value of $26 million plus capitalized legal cost for a total initial cost basis and carrying value as of December 31, 2020 of $29 million. Pursuant to ASC 323-10-35-20, the Company discontinued applying the equity method on the ChinaCo investment when the carrying amount was reduced to zero in the first quarter of 2021. The Company will resume application of the equity method if, during the period the equity method was suspended, the Company's share of unrecognized net income exceeds the Company's share of unrecognized net losses. The Company's remaining interest was diluted down to 19.7% in connection with the Second Investment Closing on September 29, 2021. See Note 19 for details regarding various related party fees payable by ChinaCo to the Company. (5) The Company holds various other investments as of March 31, 2023 and December 31, 2022. In February 2022, the Company purchased shares of Upflex Inc. ("Upflex") Series A Preferred Stock for a total purchase price of $5 million, representing approximately 5.38% ownership on a fully diluted basis. Upflex is a coworking aggregator and global flexible workplace startup. As of March 31, 2023, the WPI Fund, ARK Master Fund, IndiaCo, ChinaCo and certain other entities in which the Company has or WeCap Holdings Partnership have invested are unconsolidated VIEs. In all cases, neither the Company nor the WeCap Holdings Partnership is the primary beneficiary, as neither the Company nor the WeCap Holdings Partnership have both the power to direct the activities of the entity that most significantly impact the entity’s economic performance and exposure to benefits or losses that could potentially be significant to the VIE. None of the debt held by these investments is recourse to either the Company or the WeCap Holdings Partnership, except the $3 million in lease guarantees provided to landlords of ChinaCo by the Company, and the IndiaCo share pledge, both as described in Note 19. The Company's maximum loss is limited to the amount of its net investment in these VIEs, the $3 million in ChinaCo lease guarantees, the fair value of the IndiaCo shares pledged determined to be lesser of (a) the IndiaCo debentures obtained and (b) the fair value of proceeds on the sale of 8,467,347 shares pledged of IndiaCo, and the unfunded commitments discussed below. The Company recorded its share of gain (loss) related to its equity method and other investments in the Condensed Consolidated Statements of Operations as follows: Three Months Ended March 31, (Amounts in millions) 2023 2022 Income (loss) from equity method investments $ (2) $ 6 No allowance or unrealized gains or losses had been recorded as of March 31, 2023 or March 31, 2022. The table below provides a summary of contributions made to and distributions received from the Company's investments: Three Months Ended March 31, (Amounts in millions) 2023 2022 Contributions made to investments $ — $ 5 Distributions received from investments $ — $ 1 |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Note 10. Other Assets Other non-current assets consists of the following: (Amounts in millions) March 31, 2023 December 31, 2022 Deferred financing costs, net (Note 12): Deferred financing costs, net — SoftBank Senior Unsecured Notes Warrant (1) $ 248 $ 275 Deferred financing costs, net — 2020 LC Facility Warrant and LC Warrant issued to SBG (1) 66 74 Deferred financing costs, net — Other SoftBank Debt Financing Costs paid or payable to SBG (1) 31 35 Deferred financing costs, net — Other SoftBank Debt Financing Costs paid or payable to third parties (1) 22 23 Deferred financing costs, net — Other paid or payable to third parties 38 — Total deferred financing costs, net (1) 405 407 Other assets: Security deposits with landlords 207 210 Restricted cash 4 5 Long-term receivable for value added tax 44 55 Straight-line revenue receivable 33 36 Other long-term prepaid expenses and other assets 30 27 Total other assets $ 723 $ 740 (1) Amounts are net of accumulated amortization totaling $623 million and $581 million as of March 31, 2023 and December 31, 2022, respectively. See Note 12 for amortization incurred during the period. |
Other Current Liabilities
Other Current Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Note 11. Other Current Liabilities Other current liabilities consists of the following: (Amounts in millions) March 31, 2023 December 31, 2022 Liabilities held for sale (See Note 7) $ 184 $ 83 Refunds payable to former members 57 45 Current portion of long-term debt (See Note 12) 22 22 Other current liabilities 32 22 Total other current liabilities $ 295 $ 172 |
Long-Term Debt, Net, SoftBank D
Long-Term Debt, Net, SoftBank Debt Financing and Interest Expense | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt, Net, SoftBank Debt Financing and Interest Expense | Note 12. Long-Term Debt, Net, SoftBank Debt Financing and Interest Expense Long-term debt, net consists of the following: Maturity Interest March 31, December 31, (Amounts in millions, except percentages) 5.000% Senior Notes: Outstanding principal balance 2025 5.000% $ 2,200 $ 2,200 7.875% Senior Notes: Outstanding principal balance 2025 7.875% 669 669 Less: unamortized debt issuance costs (6) (7) Total 7.875% Senior Notes, net 663 662 Junior LC Tranche (Note 18): Outstanding principal balance (1) 2025 14.628% 470 350 Less: unamortized debt issuance costs (12) (7) Total Junior LC Tranche, net 458 343 Secured Notes: Outstanding principal balance 2025 7.500% 250 — Other Loans: Outstanding principal balance 2023 - 2026 3.3% - 20.6% 27 25 Less: current portion of Other Loans (See Note 11) (22) (22) Total non-current portion Other Loans, net 5 3 Total long-term debt, net $ 3,576 $ 3,208 (1) As of March 31, 2023, the reimbursement obligations under the Junior LC Tranche bear interest at the Term SOFR Rate with a floor of 0.75%, plus 9.90%. 7.875% Senior Notes — In April 2018, the Company issued $702 million in aggregate principal amount of unsecured senior notes due 2025 (the “7.875% Senior Notes”) at a 7.875% interest rate in a private offering pursuant to Rule 144A and Regulation S under the Securities Act. The Company's gross proceeds of $702 million from the issuance of the 7.875% Senior Notes were recorded net of debt issuance costs of $17 million. During 2019, the Company repurchased $33 million in aggregate principal amount of the 7.875% Senior Notes. The debt issuance costs are deferred and will be amortized into interest expense over the term of the 7.875% Senior Notes using the effective interest method. Interest on the 7.875% Senior Notes accrues and is payable in cash semi-annually in arrears on May 1 and November 1 of each year. The Company may redeem the 7.875% Senior Notes, in whole or in part, at any time prior to maturity, subject to certain make-whole premiums. The 7.875% Senior Notes mature on May 1, 2025 at 100% of par. No 7.875% Senior Notes were repurchased during the year ended December 31, 2022 or the three months ended March 31, 2023. As of March 31, 2023 and December 31, 2022, $669 million in aggregate principal amount remains outstanding. Upon the occurrence of certain change of control triggering events, the Company may be required to repurchase the 7.875% Senior Notes at a price equal to 101% of their principal amount, plus accrued and unpaid interest through the date of repurchase. The 7.875% Senior Notes contain certain restrictive covenants that limit the Company's ability to create certain liens, to enter into certain affiliated transactions and to consolidate or merge with, or convey, transfer or lease all or substantially all of its assets, subject to important qualifications and exceptions. The 7.875% Senior Notes (i) rank equally in right of payment with the 5.00% Senior Notes (as defined below), any payment obligations under the Credit Agreement (as defined below) and the Secured Notes (as defined below) and any existing and future senior indebtedness of the Company, (ii) are senior in right of payment to any existing and future subordinated obligations of the Company, and (iii) are effectively subordinated to all secured indebtedness of the Company (including obligations under the Credit Agreement and the Secured Notes discussed in Note 18) to the extent of the value of the collateral securing such indebtedness, and are structurally subordinated to all liabilities of any subsidiary that does not guarantee the 7.875% Senior Notes. The 7.875% Senior Notes are unconditionally guaranteed on a senior basis by each of our subsidiaries that guarantees obligations under the Credit Agreement or certain other indebtedness of the Company as a guarantor, including the 5.00% Senior Notes and the Secured Notes. As of March 31, 2023, each restricted subsidiary that guaranteed obligations under the Credit Agreement, the 5.00% Senior Notes and the Secured Notes discussed in Note 18 also guaranteed the 7.875% Senior Notes. Subsequent to the July 2019 legal entity reorganization, WeWork Companies LLC and WW Co-Obligor Inc. (together, the "Issuers") are co-obligors of the 7.875% Senior Notes, which notes are also fully and unconditionally guaranteed by WeWork Inc. WeWork Inc. and the other subsidiaries that sit above WeWork Companies LLC in our legal structure are holding companies that conduct substantially all of their business operations through WeWork Companies LLC. As of March 31, 2023, based on the covenants and other restrictions of the 7.875% 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. See “Supplementary Information — Condensed Consolidating Balance Sheet” for additional details regarding the net assets of WeWork Companies LLC. The indenture that governs the 7.875% Senior Notes (the "Unsecured Indenture") restricts us from incurring indebtedness or liens or making certain investments or distributions, subject to a number of exceptions. Certain of these exceptions included in the Unsecured Indenture are subject to us having Minimum Growth-Adjusted EBITDA (as defined in the Unsecured Indenture) for the most recent four consecutive fiscal quarters. For incurrences in fiscal years ending December 31, 2022-2025, the Minimum Growth-Adjusted EBITDA required for the immediately preceding four consecutive fiscal quarters is $2.0 billion. For the four quarters ended December 31, 2022 and for the quarter ended March 31, 2023, the Company's Minimum Growth-Adjusted EBITDA, as calculated in accordance with the Unsecured Indenture, was less than the $2 billion requirement effective as of January 1, 2022. As a result, the Company was restricted in its ability to incur certain new indebtedness in certain circumstances, unless such Minimum Growth-Adjusted EBITDA increases above the threshold required. The restrictions of the Unsecured Indenture do not impact our ability to access the unfunded commitments pursuant to the Secured NPA. Other Loans — As of March 31, 2023 and December 31, 2022, the Company had various other loans (the “Other Loans”) with outstanding principal amounts of $27 million and $25 million, respectively, and interest rates ranging from 3.3% and 20.6%, respectively. During the three months ended March 31, 2023 and the year ended December 31, 2022, the Company repaid $1 million and $6 million, respectively, of principal and recorded no loss on extinguishment of debt in connection with the prepayment of principal of Other Loans. SoftBank Debt Financing — In October 2019, in connection with the SoftBank Transactions, the Company entered into an agreement with SBG for additional financing (the "SoftBank Debt Financing"). The agreement included a commitment from SBG for the provision of (i) $1.1 billion in senior secured debt in the form of senior secured notes or a first lien term loan facility (the "SoftBank Senior Secured Notes"), (ii) $2.2 billion of 5.00% Senior Notes with associated warrants issued to SBG to purchase 71,541,399 shares of the Company’s Series H-3 Convertible Preferred Stock or Series H-4 Convertible Preferred Stock at an exercise price of $0.01 per share and (iii) credit support for a $1.75 billion letter of credit facility (the "2020 LC Facility") with associated warrants issued to SoftBank Obligor to purchase 35,770,699 shares of the Company’s Series H-3 Convertible Preferred Stock or Series H-4 Convertible Preferred Stock at an exercise price of $0.01 per share. In December 2021, in connection with the LC Facility Extension, the Company issued to SBG a warrant (the "LC Warrant") to purchase 11,923,567 shares of Class A common stock at a price per share equal to $0.01. In March 2022, the LC Warrant was transferred to SVF II WW (DE) LLC. Secured Notes The funding of the $1.1 billion of SoftBank Senior Secured Notes originally contemplated per the Master Transaction Agreement was contingent on the completion of the 2020 Tender Offer. The 2020 Tender Offer was not completed, therefore the SoftBank Senior Secured Notes was also considered terminated in April 2020. In August 2020, the Issuers entered into a Master Senior Secured Notes Note Purchase Agreement (the "Master Senior Secured Notes Note Purchase Agreement") for up to an aggregate principal amount of $1.1 billion of senior secured debt in the form of 12.50% senior secured notes. In March 2021, the Issuer and StarBright WW LP, an affiliate of SoftBank ("the Notes Purchaser") agreed to amend and restate the terms of the Master Senior Secured Notes Note Purchase Agreement that governs the SoftBank Senior Secured Notes allowing the Company to borrow up to an aggregate principal amount of $550 million of senior secured debt in the form of 7.50% senior secured notes. In October 2021, the Issuers and the Notes Purchaser entered into the Amended and Restated Master Senior Secured Notes Note Purchase Agreement (as amended, waived or otherwise modified from time to time, the "Secured NPA") for up to an aggregate principal amount of $550 million of senior secured debt in the form of 7.50% senior secured notes (the "Secured Notes"). Entry into the Secured NPA superseded and terminated the Master Senior Secured Notes Note Purchase Agreement and the letter agreement pursuant to which the Company would enter into the Secured NPA. In December 2021, the Issuers and the Notes Purchaser entered into an amendment to the Secured NPA pursuant to which the Notes Purchaser agreed to extend its commitment to purchase up to an aggregate principal amount of $500 million of Secured Notes that may be issued by the Issuers under the Secured NPA from February 12, 2023 to February 12, 2024. In November 2022, the Issuers, the Notes Purchaser and SVF II, entered into a second amendment to the Secured NPA pursuant to which, among other things and subject to the terms and conditions set forth therein, (i) the Commitment, Draw Period (each as defined in the Secured NPA), and maturity date of the Secured Notes were extended from February 12, 2024 to March 15, 2025 (such period from February 12, 2024 to March 15, 2025, the “Second Extension Period”), (ii) the maximum aggregate principal amount of Secured Notes subject to the Commitment or that may be issued and outstanding at any time was reduced to $500 million , subject to potential additional reductions to approximately $446 million during the Second Extension Period to take into account interest that may accrue and be payable in-kind during such period, (iii) the interest per annum payable on the Secured Notes outstanding during all or a portion of the Second Extension Period will increase from 7.50% to 11.00% during such period and such interest shall be payable in-kind during such period by increasing the principal amount of the Secured Notes then outstanding, (iv) the Notes Purchaser assigned its rights and obligations under the Secured NPA to SVF II and (v) the Company agreed to pay SVF II a commitment fee of $10 million. The Company has the ability to draw the Secured Notes under the Secured NPA until March 15, 2025. During the three months ended March 31, 2023, the Issuers issued and sold $250 million of Secured Notes to SVF II under the Secured NPA. As of March 31, 2023 and December 31, 2022, $250 million and none of Secured Notes were outstanding, respectively. Following the entry into the Transaction Support Agreement (as defined herein) in March 2023, the Company may draw upon the remaining $250 million in aggregate principal of Secured Notes, each draw subject to the terms of the Secured NPA, subject to the following schedule: (i) a draw request of $50 million which may be made no earlier than April 1, 2023; (ii) a subsequent draw request of no more than $75 million which may be made no earlier than May 1, 2023; (iii) another subsequent draw request of no more than $75 million which may be made no earlier than June 1, 2023; and if applicable, (iv) a draw request of $50 million thereafter. In April 2023, the Issuers issued and sold $50 million of Secured Notes to SVF II under the Secured NPA. 5.00% Senior Notes To formalize SBG's October 2019 commitment to provide WeWork Companies LLC with up to $2.2 billion of unsecured debt, on December 27, 2019, the Issuers and the Notes Purchaser, entered into a Master Senior Unsecured Notes Note Purchase Agreement (as amended, waived or otherwise modified from time to time, the “Unsecured NPA”), pursuant to which the Notes Purchaser agreed to purchase from the Issuers up to $2.2 billion of 5.00% Senior Notes due 2025 (the "5.00% Senior Notes"). Starting on July 10, 2020, the Issuers issued and sold $2.2 billion of 5.00% Senior Notes in multiple closings to the Notes Purchaser. The 5.00% Senior Notes will mature on July 10, 2025 and bear interest at 5.00% per annum, payable semi-annually in cash. However, because the associated warrants obligated the Company to issue shares in the future, the implied interest rate upon closing was approximately 11.69%. Pursuant to the Unsecured NPA, the Notes Purchaser may notify the Issuer that it intends to engage an investment bank or investment banks to offer and sell all or a portion of the 5.00% Senior Notes outstanding to third-party investors in a private placement. On December 16, 2021, following the Notes Purchaser's exercise of its resale rights under the Unsecured NPA, the Issuers amended and restated the Original Unsecured Indenture (as so amended, the A&R Unsecured Indenture") to subdivide the 5.00% Senior Notes into two series, one of which consisted of $550 million in aggregate principal amount of 5.00% Senior Notes due 2025, Series II (the "5.00% Senior Notes, Series II"), and the other consisted of the remaining $1.65 billion in aggregate principal amount of 5.00% Senior Notes due 2025, Series I (the "5.00% Senior Notes, Series I"), and the Notes Purchaser (through certain initial purchasers) resold the 5.00% Senior Notes, Series II, to qualified investors in a private offering exempt from registration under the Securities Act. The 5.00% Senior Notes, Series I, remain held by the Notes Purchaser. The A&R Unsecured Indenture contains negative covenants that are substantially similar to those included in the Unsecured Indenture, as further described above. As of March 31, 2023, an aggregate principal amount of $2.2 billion of 5.00% Senior Notes were issued and none remained available for draw. The aggregate principal amount of $2.2 billion are included as a component of long-term debt, net on the Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022. SoftBank Debt Financing Costs due to SBG In connection with the 5.00% Senior Notes, the warrants issued to SoftBank Obligor in December 2019 to purchase 71,541,399 shares of the Company’s Series H-3 Convertible Preferred Stock or Series H-4 Convertible Preferred Stock at an exercise price of $0.01 per share (the "SoftBank Senior Unsecured Notes Warrant"), were valued at $569 million at issuance and capitalized as a deferred financing cost and included, net of accumulated amortization, as a component of other assets on the accompanying Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022. This asset will be amortized into interest expense over the five year life of the 5.00% Senior Notes. In connection with the agreement by SoftBank Obligor to provide credit support for the 2020 LC Facility, the warrants issued to SoftBank Obligor in December 2019 to purchase 35,770,699 shares of the Company’s Series H-3 Convertible Preferred Stock or Series H-4 Convertible Preferred Stock at an exercise price of $0.01 per share (the "2020 LC Facility Warrant"), were valued at $284 million at issuance and capitalized as a deferred financing cost and included, net of accumulated amortization, as a component of other assets on the accompanying Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022. This asset was initially amortized into interest expense from February 10, 2020 through February 10, 2023, and was extended through February 9, 2024 in connection LC Facility Extension (as defined in Note 18). The warrants issued to SoftBank Obligor in December 2021 to purchase 11,923,567 shares of Class A common stock at an exercise price equal to $0.01 per share, were issued in connection with the LC Facility Extension (the "LC Warrant"), were valued at $102 million at issuance and capitalized as a deferred financing cost and included, net of accumulated amortization, as a component of other assets on the accompanying Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022. This asset will be amortized into interest expense from December 6, 2021 through February 9, 2024, the remaining life of the extended 2020 LC Facility. In May 2022, WeWork Companies LLC entered into an amendment to the Credit Agreement (as discussed in Note 18) pursuant to which, among other things, the existing 2020 LC Facility was amended and subdivided into the $1.25 billion Senior LC Tranche, which was then scheduled to automatically decrease to $1.05 billion in February 2023 and terminate in February 2024, and a $350 million Junior LC Tranche which was then scheduled to terminate in November 2023 (both as defined in Note 18). In December 2022, the Company entered into a further amendment to the Credit Agreement (as discussed in Note 18) pursuant to which, among other things, (i) the termination date of the existing Senior LC Tranche was extended to March 14, 2025, and (ii) the Senior LC Tranche was reduced to $1.1 billion, with a further decrease to $930 million on February 10, 2023. The amendments to the Credit Agreement were accounted for under ASC 470-50, Debt - Modifications and Extinguishments , whereby the unamortized deferred financing costs associated with all creditors under the Senior LC Tranche will be expensed in proportion to each creditor’s reduction in borrowing capacity. The remaining unamortized costs will be amortized over the term of the amended facility. In connection with the amendments to the Credit Agreement, $14 million of related costs were capitalized as a deferred financing cost and included, net of accumulated amortization, as a component of other assets on the accompanying Condensed Consolidated Balance Sheets as of March 31, 2023. In February 2023, the Company entered into a further amendment to the Credit Agreement (as discussed in Note 18) pursuant to which, among other things, the Junior LC Tranche was increased to $470 million and extended to terminate in March 2025, and the Senior LC Tranche was increased from $930 million to $960 million. The Company also agreed to reimburse SBG for all fees and expenses incurred in connection with the SoftBank Transactions in an aggregate amount up to $50 million of which $35 million were paid as of December 31, 2021. During the three months ended March 31, 2022, SBG waived its right to be reimbursed for $7 million of the remaining obligation. During the three months ended March 31, 2023 and 2022 the Company made no additional payments on these obligations to SBG. As of March 31, 2023 and December 31, 2022, $8 million and $8 million, respectively, were included as a component of accounts payable and accrued expenses on the accompanying Condensed Consolidated Balance Sheets. In 2019, the Company allocated $20 million of the total costs as deferred financing costs included, net of accumulated amortization within other assets on the Condensed Consolidated Balance Sheets which will be amortized into interest expense over the life of the debt facility to which it was allocated. SoftBank Debt Financing Costs due to Third Parties As of March 31, 2023 and December 31, 2022, the Company had capitalized a total of $22 million and $23 million, respectively, in net debt issuance costs paid or payable to third parties associated with the SoftBank Debt Financing and related amendments which will be amortized over a three Principal Maturities — Combined aggregate principal payments for current and long-term debt as of March 31, 2023 are as follows: (Amounts in millions) Long-term debt 5.00% Senior Notes Total Long-Term Debt and SoftBank Debt Financing Remainder of 2023 $ 16 $ — $ 16 2024 9 — 9 2025 1,390 2,200 3,590 2026 1 — 1 2027 — — — 2028 and beyond — — — Total minimum payments $ 1,416 $ 2,200 $ 3,616 Interest Expense — The Company recorded the following Interest expense in the Condensed Consolidated Statements of Operations: Three Months Ended March 31, (Amounts in millions) 2023 2022 Interest expense on long-term debt and SoftBank debt financing: 2020 LC Facility and LC Debt Facility (Note 18) $ 29 $ 17 5.00% Senior Notes 28 28 7.875% Senior Notes 13 13 Extinguishment of debt expense 10 — Secured Notes 5 — Other 2 2 Total interest expense on long-term debt 87 60 Deferred financing costs amortization (Note 10): SoftBank unsecured deferred financing costs 27 27 SoftBank LC deferred financing costs 14 24 Secured Notes deferred financing costs 1 — Other debt financing costs 2 2 Total deferred financing costs amortization 44 53 Total interest expense $ 131 $ 113 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 13. Fair Value Measurements Recurring Fair Value Measurements The Company’s assets and liabilities measured at fair value on a recurring basis consisted of the following: March 31, 2023 (Amounts in millions) Level 1 Level 2 Level 3 Total Assets: Cash equivalents — money market funds and time deposits $ 21 $ — $ — $ 21 Total assets measured at fair value $ 21 $ — $ — $ 21 Liabilities: Warrant liabilities, net $ — $ 1 $ — $ 1 Other liabilities - contingent consideration relating to acquisitions payable in cash — — — — Total liabilities measured at fair value $ — $ 1 $ — $ 1 December 31, 2022 (Amounts in millions) Level 1 Level 2 Level 3 Total Assets: Cash equivalents — money market funds and time deposits $ 27 $ — $ — $ 27 Total assets measured at fair value $ 27 $ — $ — $ 27 Liabilities: Warrant Liabilities, net $ — $ 1 $ — $ 1 Other liabilities - contingent consideration relating to acquisitions payable in cash — — 1 1 Total liabilities measured at fair value $ — $ 1 $ 1 $ 2 The tables below provide a summary of the changes in assets and liabilities recorded at fair value and classified as Level 3: Three Months Ended March 31, Year Ended (Amounts in millions) 2023 2022 Assets: Balance at beginning of period $ — $ 34 Credit loss valuation allowance included in income (loss) from equity method and other investments — (1) Accrued interest collected — (3) Foreign currency translation (losses) gain included in other comprehensive income — 3 Conversion of available-for-sale securities to equity method investment (Note 9) — (33) Balance at end of period $ — $ — Three Months Ended March 31, 2023 (Amounts in millions) Balance at Beginning of Period Additions Reclassification Settlements Change in Fair Value Balance at End of Period Liabilities: Other current liabilities - contingent consideration relating to acquisitions payable in common stock $ — $ — $ — $ — $ — $ — Other current liabilities - contingent consideration relating to acquisitions payable in cash — — 1 (1) — — Other liabilities - contingent consideration relating to acquisitions payable in cash 1 — (1) — — — Total $ 1 $ — $ — $ (1) $ — $ — Year Ended December 31, 2022 (Amounts in millions) Balance at Beginning of Period Additions Settlements Change in Fair Value Balance at End of Period Liabilities: Other current liabilities - contingent consideration relating to acquisitions payable in common stock $ — $ 3 $ (1) $ (2) $ — Other current liabilities - contingent consideration relating to acquisitions payable in cash — 2 (2) — — Other liabilities - contingent consideration relating to acquisitions payable in cash — 1 — — 1 Total $ — $ 6 $ (3) $ (2) $ 1 The total Gain (loss) from change in fair value of warrant liabilities included in the Condensed Consolidated Statements of Operations are as follows: Three Months Ended March 31, (Amounts in millions) 2023 2022 Selling, general and administrative expenses: Level 3 liabilities $ — $ 1 Gain (loss) from change in fair value of warrant liabilities: Level 2 liabilities $ — $ 3 The valuation techniques and significant unobservable inputs used in the recurring fair value measurements categorized within Level 3 of the fair value hierarchy are as follows: March 31, 2023 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) Level 3 Liabilities: Other current liabilities - contingent consideration relating to acquisitions $ — Probability weighted cash flow Probability adjustment 100% Other liabilities - contingent consideration relating to acquisitions $ — Probability weighted cash flow Probability adjustment 100% December 31, 2022 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) Level 3 Liabilities: Other current liabilities - contingent consideration relating to acquisitions $ — Probability weighted cash flow Probability adjustment 100% Other liabilities - contingent consideration relating to acquisitions $ 1 Probability weighted cash flow Probability adjustment 100% Other liabilities - IndiaCo share pledge $ — Discounted cash flow Risk-adjusted discount rate 12.3% Due to the inherent uncertainty in the valuation process, the estimate of fair value of the Company’s assets and liabilities may differ from values that would have been used had a ready market for the securities existed. Nonrecurring Fair Value Measurements Non-financial assets and liabilities measured at fair value in the Condensed Consolidated Financial Statements on a nonrecurring basis consist of certain investments, goodwill, intangibles and other long-lived assets on which impairment adjustments were required to be recorded during the period and assets and related liabilities held for sale which, if applicable, are measured at the lower of their carrying value or fair value less any costs to sell. As of March 31, 2023, assets held for sale totaling $164 million and liabilities held for sale totaling $184 million are included in other current assets and other current liabilities, respectively, on the accompanying Condensed Consolidated Balance Sheets. As of December 31, 2022, assets held for sale totaling $52 million and liabilities held for sale totaling $83 million are included in other current assets and other current liabilities, respectively, on the accompanying Condensed Consolidated Balance Sheets. During the three months ended March 31, 2023 and 2022, there were $3 million and none, respectively, of impairment charges recorded related to assets and liabilities classified as held for sale, determined to be Level 2 within the fair value hierarchy based primarily on respective contracts of sale. The Company recorded impairment charges and other write-offs of certain other long-lived assets, impairing such assets to a carrying value of zero, for impairment charges totaling $52 million and $80 million during the three months ended March 31, 2023 and 2022, respectively. During the three months ended March 31, 2023, the Company also recorded impairment charges totaling $25 million relating to right-of-use assets and property and equipment with an as adjusted remaining carrying value totaling $400 million as of March 31, 2023, valued based on Level 3 inputs representing market rent data for the market the right-of-use assets are located in. In December 2022, the Company pledged 8,467,347 of its shares of IndiaCo, representing 14.7% of the securities issued by IndiaCo on a fully diluted basis, as collateral for IndiaCo to enter into a debenture trust deed to borrow up to INR 5.5 billion (approximately $66.5 million as of December 31, 2022). The Company has recognized this share pledge at fair value in accordance with ASC 460 - Guarantees , and determined it to be a Level 3 within the fair value hierarchy based on discounted cash flows. As of March 31, 2023 and December 31, 2022, the Company guaranty has a fair value of $0.3 million and $0.4 million, respectively and is included as a component of other liabilities on the accompanying Condensed Consolidated Balance Sheets. Other Fair Value Disclosures The estimated fair value of the Company’s accounts receivable, accounts payable, and accrued expenses approximate their carrying values due to their short maturity periods. As of March 31, 2023, the estimated fair value of the Company’s 7.875% Senior Notes, excluding unamortized debt issuance costs, was approximately $369 million based on recent trading activity (Level 1). For the remainder of the Company's long-term debt, the carrying value approximated the fair value as of March 31, 2023. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Note 14. Revenue Recognition Disaggregation of Revenue The following table provides disaggregated detail of the Company's revenue by major source for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, (Amounts in millions) 2023 2022 ASC 606 membership and service revenue $ 567 $ 522 ASC 842 rental and service revenue 277 225 Total membership and service revenue 844 747 Other revenue (1) 5 18 Total revenue $ 849 $ 765 (1) During the three months ended March 31, 2023 and 2022, the Company recognized cost of revenue in the amount of $1 million and $13 million, respectively, in connection with the Company's former Powered by We on-site office design, development and management solutions and costs of providing various other products and services not directly related to the Company’s core space-as-a-service offerings, included in selling, general and administrative expenses on the Condensed Consolidated Statements of Operations. Contract Balances The following table provides information about contract assets and deferred revenue from contracts with customers recognized in accordance with ASC 606: March 31, December 31, (Amounts in millions) 2023 2022 Contract assets (included in Accounts receivable and accrued revenue, net) $ — $ 1 Contract assets (included in Other current assets) 8 7 Contract assets (included in Other assets) 15 17 Deferred revenue (42) (51) Revenue recognized in accordance with ASC 606 during the three months ended March 31, 2023 and 2022 included in Deferred revenue as of January 1 of the respective years was $21 million and $19 million, respectively. Assets Recognized from the Costs to Obtain a Contract with a Customer Prepaid member referral fees and deferred sales incentive compensation were included in the following financial statement line items on the accompanying Condensed Consolidated Balance Sheets: March 31, December 31, (Amounts in millions) 2023 2022 Prepaid expenses $ 51 $ 55 Other assets 17 21 The amortization of these costs is included as a component of selling, general and administrative expenses in the accompanying Condensed Consolidated Statements of Operations. Three Months Ended March 31, (Amounts in millions) 2023 2022 Amortization of capitalized costs to obtain a contract with a customer $ 24 $ 21 Allowance for Credit Loss The following table provides a summary of changes of the allowance for credit loss for the three months ended March 31, 2023 and the year ended December 31, 2022: March 31, December 31, (Amounts in millions) 2023 2022 Balance at beginning of period $ 13 $ 63 Provision charged to expense 2 4 Write-offs (3) (19) Changes for member collectability uncertainty (1) (3) (33) Effect of foreign currency exchange rate changes — (2) Balance at end of period $ 9 $ 13 (1) Commencing in 2020, the Company actively monitored its accounts receivable balances in response to COVID-19 and also ceased recording revenue on certain existing contracts where collectability is not probable. As of March 31, 2023, the Company determined collectability was not probable and did not recognize revenue totaling approximately $4 million on such contracts, net of recoveries and write-offs since 2020, the beginning of the COVID-19 pandemic. Remaining Performance Obligations The aggregate amount of the transaction price allocated to the Company's remaining performance obligations that represent contracted customer revenues that have not yet been recognized as revenue as of March 31, 2023, that will be recognized as revenue in future periods over the life of the customer contracts in accordance with ASC 606 was over $1.5 billion. Over half of the remaining performance obligation as of March 31, 2023 is scheduled to be recognized as revenue within the next twelve months, with the remaining to be recognized over the remaining life of the customer contracts, the longest of which extends through 2032. Approximate future minimum lease cash flows to be received over the next five years and thereafter for non-cancelable membership agreements accounted for as leases in accordance with ASC 842 in effect at March 31, 2023 are as follows: (Amounts in millions) ASC 842 Revenue 2023 $ 433 2024 293 2025 136 2026 46 2027 25 2028 and beyond 24 Total $ 957 The combination of the remaining performance obligation to be recognized as revenue under ASC 606 plus the remaining future minimum lease cash flows of the Company’s member contracts that qualify as leases is comparable to what the Company has historically referred to as “Committed Revenue Backlog”, which totaled over $2.5 billion as of March 31, 2023 and December 31, 2022. The Company has excluded |
Leasing Arrangements
Leasing Arrangements | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leasing Arrangements | Note 15. Leasing Arrangements The components of total real estate operating lease cost for leases recorded under ASC 842 are as follows : Three Months Ended March 31, 2023 Reported in: Selling, Restructuring Location Pre-opening General and and Other (Amounts in millions) Operating Expenses Location Expenses Administrative Expenses Related (Gains) Costs Total Lease cost contractually paid or payable for the period $ 618 $ 5 $ 3 $ 31 $ 657 Non-cash GAAP straight-line lease cost 21 2 — 3 26 Amortization of lease incentives (65) (1) — (3) (69) Total real estate operating lease cost $ 574 $ 6 $ 3 $ 31 $ 614 Early termination fees and related (gain)/loss $ — $ — $ — $ (107) $ (107) Three Months Ended March 31, 2022 Reported in: Selling, Location Pre-opening General and Restructuring (Amounts in millions) Operating Expenses Location Expenses Administrative Expenses and Other Related Costs Total Lease cost contractually paid or payable for the period $ 624 $ 33 $ 5 $ 12 $ 674 Non-cash GAAP straight-line lease cost 30 16 — 4 50 Amortization of lease incentives (70) (5) (1) (1) (77) Total real estate operating lease cost $ 584 $ 44 $ 4 $ 15 $ 647 Early termination fees and related (gain)/loss $ — $ — $ — $ (154) $ (154) The Company's total ASC 842 operating lease costs include both fixed and variable components as follows: Three Months Ended March 31, 2023 Reported in: Selling, Restructuring Location Pre-opening General and and Other (Amounts in millions) Operating Expenses Location Expenses Administrative Expenses Related (Gains) Costs Total Fixed real estate lease costs $ 467 $ 6 $ 3 $ 30 $ 506 Fixed equipment and other lease costs — — — — — Total fixed lease costs $ 467 $ 6 $ 3 $ 30 $ 506 Variable real estate lease costs $ 107 $ — $ — $ 1 $ 108 Variable equipment and other lease costs — — — — — Total variable lease costs $ 107 $ — $ — $ 1 $ 108 Three Months Ended March 31, 2022 Reported in: Selling, Location Pre-opening General and Restructuring (Amounts in millions) Operating Expenses Location Expenses Administrative Expenses and Other Related Costs Total Fixed real estate lease costs $ 482 $ 38 $ 4 $ 14 $ 538 Fixed equipment and other lease costs — — — — — Total fixed lease costs $ 482 $ 38 $ 4 $ 14 $ 538 Variable real estate lease costs $ 102 $ 6 $ — $ 1 $ 109 Variable equipment and other lease costs 1 — — — 1 Total variable lease costs $ 103 $ 6 $ — $ 1 $ 110 The Company also has certain leases accounted for as finance leases. Total lease costs for finance leases are as follows: Three Months Ended March 31, (Amounts in millions) 2023 2022 Depreciation and amortization $ 1 $ 1 Interest expense 1 1 Total $ 2 $ 2 The below table presents the lease related assets and liabilities recorded on the accompanying Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022, as recorded in accordance with ASC 842: March 31, December 31, (Amounts in millions) Balance Sheet Captions 2023 2022 Assets: Operating lease right-of-use assets Lease right-of-use assets, net $ 10,399 $ 11,243 Finance lease right-of-use assets (1) Property and equipment, net 35 46 Total leased assets $ 10,434 $ 11,289 Liabilities: Current liabilities Operating lease liabilities Current lease obligations $ 914 $ 931 Finance lease liabilities Current lease obligations 4 5 Total current liabilities 918 936 Non-current liabilities Operating lease obligations Long-term lease obligations 14,545 15,565 Finance lease obligations Long-term lease obligations 19 33 Total non-current liabilities 14,564 15,598 Total lease obligations $ 15,482 $ 16,534 (1) Finance lease right-of-use assets are recorded net of accumulated amortizati on of $27 million and $26 million as of March 31, 2023 and December 31, 2022, respectively. The weighted average remaining lease term and weighted average discount rate for operating and finance leases as of March 31, 2023 and December 31, 2022 were as follows: March 31, 2023 December 31, 2022 Operating Finance Operating Finance Weighted average remaining lease term (in years) 11 6 12 8 Weighted average discount rate percentage 10.0 % 8.0 % 9.3 % 7.5 % The Company's aggregate annual lease obligations relating to non-cancelable finance and operating leases in possession as of March 31, 2023 as presented in accordance with ASC 842: Finance Operating (Amounts in millions) Leases Leases Total Remainder of 2023 $ 5 $ 1,745 $ 1,750 2024 6 2,297 2,303 2025 5 2,333 2,338 2026 5 2,354 2,359 2027 4 2,348 2,352 2028 and beyond 8 15,121 15,129 Total undiscounted fixed minimum lease cost payments 33 26,198 26,231 Less: Amount representing lease incentive receivables, net (1) — (147) (147) Less: Amount representing interest (10) (10,423) (10,433) Present value of future lease payments 23 15,628 15,651 Less: Obligations classified as held for sale — (169) (169) Less: Current portion of lease obligation (4) (914) (918) Total long-term lease obligation $ 19 $ 14,545 $ 14,564 (1) Lease incentive receivables primarily represent amounts expected to be received by the Company relating to payments for leasehold improvements that are reimbursable pursuant to lease provisions with relevant landlords and receivables for broker commissions earned for negotiating certain of the Company’s leases. Lease incentive receivables are presented net of deferred tenant incentives for contingent lease arrangements of $48 million as of March 31, 2023 The future undiscounted fixed minimum lease cost payments for the leases presented above exclude approximately an additional $432 million relating to executed non-cancelable leases that the Company has not yet taken possession of as of March 31, 2023. See Note 14 for details on non-cancellable membership agreements recognized in accordance with ASC 842. |
Leasing Arrangements | Note 15. Leasing Arrangements The components of total real estate operating lease cost for leases recorded under ASC 842 are as follows : Three Months Ended March 31, 2023 Reported in: Selling, Restructuring Location Pre-opening General and and Other (Amounts in millions) Operating Expenses Location Expenses Administrative Expenses Related (Gains) Costs Total Lease cost contractually paid or payable for the period $ 618 $ 5 $ 3 $ 31 $ 657 Non-cash GAAP straight-line lease cost 21 2 — 3 26 Amortization of lease incentives (65) (1) — (3) (69) Total real estate operating lease cost $ 574 $ 6 $ 3 $ 31 $ 614 Early termination fees and related (gain)/loss $ — $ — $ — $ (107) $ (107) Three Months Ended March 31, 2022 Reported in: Selling, Location Pre-opening General and Restructuring (Amounts in millions) Operating Expenses Location Expenses Administrative Expenses and Other Related Costs Total Lease cost contractually paid or payable for the period $ 624 $ 33 $ 5 $ 12 $ 674 Non-cash GAAP straight-line lease cost 30 16 — 4 50 Amortization of lease incentives (70) (5) (1) (1) (77) Total real estate operating lease cost $ 584 $ 44 $ 4 $ 15 $ 647 Early termination fees and related (gain)/loss $ — $ — $ — $ (154) $ (154) The Company's total ASC 842 operating lease costs include both fixed and variable components as follows: Three Months Ended March 31, 2023 Reported in: Selling, Restructuring Location Pre-opening General and and Other (Amounts in millions) Operating Expenses Location Expenses Administrative Expenses Related (Gains) Costs Total Fixed real estate lease costs $ 467 $ 6 $ 3 $ 30 $ 506 Fixed equipment and other lease costs — — — — — Total fixed lease costs $ 467 $ 6 $ 3 $ 30 $ 506 Variable real estate lease costs $ 107 $ — $ — $ 1 $ 108 Variable equipment and other lease costs — — — — — Total variable lease costs $ 107 $ — $ — $ 1 $ 108 Three Months Ended March 31, 2022 Reported in: Selling, Location Pre-opening General and Restructuring (Amounts in millions) Operating Expenses Location Expenses Administrative Expenses and Other Related Costs Total Fixed real estate lease costs $ 482 $ 38 $ 4 $ 14 $ 538 Fixed equipment and other lease costs — — — — — Total fixed lease costs $ 482 $ 38 $ 4 $ 14 $ 538 Variable real estate lease costs $ 102 $ 6 $ — $ 1 $ 109 Variable equipment and other lease costs 1 — — — 1 Total variable lease costs $ 103 $ 6 $ — $ 1 $ 110 The Company also has certain leases accounted for as finance leases. Total lease costs for finance leases are as follows: Three Months Ended March 31, (Amounts in millions) 2023 2022 Depreciation and amortization $ 1 $ 1 Interest expense 1 1 Total $ 2 $ 2 The below table presents the lease related assets and liabilities recorded on the accompanying Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022, as recorded in accordance with ASC 842: March 31, December 31, (Amounts in millions) Balance Sheet Captions 2023 2022 Assets: Operating lease right-of-use assets Lease right-of-use assets, net $ 10,399 $ 11,243 Finance lease right-of-use assets (1) Property and equipment, net 35 46 Total leased assets $ 10,434 $ 11,289 Liabilities: Current liabilities Operating lease liabilities Current lease obligations $ 914 $ 931 Finance lease liabilities Current lease obligations 4 5 Total current liabilities 918 936 Non-current liabilities Operating lease obligations Long-term lease obligations 14,545 15,565 Finance lease obligations Long-term lease obligations 19 33 Total non-current liabilities 14,564 15,598 Total lease obligations $ 15,482 $ 16,534 (1) Finance lease right-of-use assets are recorded net of accumulated amortizati on of $27 million and $26 million as of March 31, 2023 and December 31, 2022, respectively. The weighted average remaining lease term and weighted average discount rate for operating and finance leases as of March 31, 2023 and December 31, 2022 were as follows: March 31, 2023 December 31, 2022 Operating Finance Operating Finance Weighted average remaining lease term (in years) 11 6 12 8 Weighted average discount rate percentage 10.0 % 8.0 % 9.3 % 7.5 % The Company's aggregate annual lease obligations relating to non-cancelable finance and operating leases in possession as of March 31, 2023 as presented in accordance with ASC 842: Finance Operating (Amounts in millions) Leases Leases Total Remainder of 2023 $ 5 $ 1,745 $ 1,750 2024 6 2,297 2,303 2025 5 2,333 2,338 2026 5 2,354 2,359 2027 4 2,348 2,352 2028 and beyond 8 15,121 15,129 Total undiscounted fixed minimum lease cost payments 33 26,198 26,231 Less: Amount representing lease incentive receivables, net (1) — (147) (147) Less: Amount representing interest (10) (10,423) (10,433) Present value of future lease payments 23 15,628 15,651 Less: Obligations classified as held for sale — (169) (169) Less: Current portion of lease obligation (4) (914) (918) Total long-term lease obligation $ 19 $ 14,545 $ 14,564 (1) Lease incentive receivables primarily represent amounts expected to be received by the Company relating to payments for leasehold improvements that are reimbursable pursuant to lease provisions with relevant landlords and receivables for broker commissions earned for negotiating certain of the Company’s leases. Lease incentive receivables are presented net of deferred tenant incentives for contingent lease arrangements of $48 million as of March 31, 2023 The future undiscounted fixed minimum lease cost payments for the leases presented above exclude approximately an additional $432 million relating to executed non-cancelable leases that the Company has not yet taken possession of as of March 31, 2023. See Note 14 for details on non-cancellable membership agreements recognized in accordance with ASC 842. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 16. Stock-Based Compensation Stock‑Based Compensation Expense - The stock-based compensation expense related to employees and non-employee directors recognized for the following instruments and transactions are as follows: Three Months Ended March 31, (Amounts in millions) 2023 2022 Service-based restricted stock units $ 7 $ 8 Service-based vesting stock options (1) 1 3 Service, performance and market-based vesting restricted stock units (2) (2) 2 Service, performance and market-based vesting stock options (2) (3) — Total $ 3 $ 13 (1) Includes $0.1 million of stock-based compensation expense recognized during the three months ended March 31, 2023 for service-based option awards granted by the LatamCo subsidiary in 2022 under the 2022 LatamCo ESOP. (2) Includes a reversal of stock-based compensation expense previously recorded of $2 million and $3 million for unvested RSUs and unvested options, respectively, that were forfeited during the three months ended March 31, 2023, and a reversal of stock-based compensation expense previously recorded of $2 million for unvested options that were forfeited during the three months ended March 31, 2022. The stock-based compensation expense related to employees and non-employee directors are reported in the following financial statement line items: Three Months Ended March 31, (Amounts in millions) 2023 2022 Location operating expenses $ 1 $ 2 Selling, general and administrative expenses 2 11 Total stock-based compensation expense $ 3 $ 13 During the three months ended March 31, 2023, the Company granted 24 million service-based restricted stock units to employees which vest in three equal installments over a period of three years, subject to the employee's continued employment with the company. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Note 17. Net Loss Per Share We compute net loss per share attributable to common stock under the two-class method required for multiple classes of common stock and participating securities. Accordingly, based on voting, liquidation and dividend rights, the Class A common stock share in our net losses. Although the shares of Class C common stock are a non-economic interest and do not share in our net losses, they are considered dilutive shares of Class A common stock because such shares can be exchanged into shares of Class A common stock. If the shares of Class C common stock correspond to WeWork Partnership Class A common units, the shares of Class C common stock (together with the corresponding WeWork Partnership Class A common units) can be exchanged for (at the Company's election) shares of Class A common stock on a one-for-one basis, or cash of an equivalent value. If the shares of Class C common stock correspond to WeWork Partnerships Profits Interests Units and the value of the WeWork Partnership has increased above the applicable aggregate distribution threshold of the Units, the shares of Class C common stock (together with the corresponding WeWork Partnerships Profits Interests Units) can be exchanged for (at the Company's election) a number of shares of Class A common stock based on the value of a share of Class A common stock on the exchange date to the applicable per-unit distribution threshold, or cash of an equivalent value. Accordingly, only the Class A common stock share in the Company's net losses. Basic net loss per share is computed by dividing net loss attributable to WeWork Inc. attributable to its Class A common stockholders by the weighted-average number of shares of its Class A common stock outstanding during the period. As of March 31, 2023, the warrants held by SoftBank and SoftBank affiliates are exercisable at any time for nominal consideration, therefore, the shares issuable upon the exercise of the warrants are considered outstanding for the purpose of calculating basic and diluted net loss per share attributable to common stockholders. Accordingly, the calculation of weighted-average common shares outstanding includes 55,672,898 shares issuable upon exercise of the warrants for the three months ended March 31, 2023. For the computation of diluted net loss per share, net loss per share attributable to common stockholders for basic net loss per share is adjusted by the effect of dilutive securities, including awards under the Company's equity compensation plans. Diluted net loss per share attributable to common stockholders is computed by dividing the resulting net loss attributable to WeWork Inc. attributable to its Class A common stockholders by the weighted-average number of fully diluted common shares outstanding. In the three months ended March 31, 2023 and 2022, the Company's potential dilutive shares were not included in the computation of diluted net loss per share as the effect of including these shares in the computation would have been anti-dilutive. The numerators and denominators of the basic and diluted net loss per share computations for WeWork's common stock are calculated as follows for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, (Amounts in millions, except share and per share amounts) 2023 2022 Numerator: Net loss attributed to WeWork Inc. $ (264) $ (435) Net loss attributable to Class A Common Stockholders - basic $ (264) $ (435) Net loss attributable to Class A Common Stockholders - diluted $ (264) $ (435) Denominator: Basic shares: Weighted-average shares - Basic 766,258,253 759,676,860 Diluted shares: Weighted-average shares - Diluted 766,258,253 759,676,860 Net loss per share attributable to Class A Common Stockholders: Basic $ (0.34) $ (0.57) Diluted $ (0.34) $ (0.57) The following potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive, or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the period. These amounts represent the number of instruments outstanding at the end of each respective period. Three Months Ended March 31, 2023 2022 RSUs 32,226,017 18,580,989 Warrants 23,877,777 23,877,787 Partnership Units 19,896,032 19,896,032 Stock options 10,086,548 17,301,513 Contingent shares (1) 275,713 — WeWork Partnerships Profits Interest Units 42,057 42,057 (1) The three months ended March 31, 2023 included contingently issuable common stock in connection with our acquisition of Common Desk. See Note 5 for additional information on the Common Desk acquisition. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 18. Commitments and Contingencies Prior Credit Facilities and Standalone LC Arrangements — In November 2015, the Company amended and restated its existing credit facility (the "2019 Credit Facility") to provide up to $650 million in revolving loans and letters of credit, subject to certain financial and other covenants. At various points during 2016 through 2019, the Company executed amendments to the credit agreement governing the 2019 Credit Facility which amended certain of the financial and other covenants. In November 2017 and as later amended, the Company entered into a new letter of credit facility (the "2019 LC Facility") pursuant to the letter of credit reimbursement agreement that provided an additional $500 million in availability of standby letters of credit. In May 2019, the Company entered into an additional letter of credit reimbursement agreement that provided for an additional $200 million in availability of standby letters of credit. In conjunction with the availability of the 2020 LC Facility (described below), the 2019 Credit Facility and the 2019 LC Facility were terminated in February 2020. As of March 31, 2023 and December 31, 2022, $6 million remains outstanding in a letter of credit issued under the 2019 LC Facility and is secured by a new letter of credit issued under the Senior LC Tranche. The Company has also entered into various other letter of credit arrangements, the purpose of which is to guarantee payment under certain leases entered into by JapanCo and other fully owned subsidiaries. There was $3 million and $3 million of standby letters of credit outstanding under these other arrangements that are secured by $3 million and $3 million of restricted cash at March 31, 2023 and December 31, 2022, respectively. Credit Agreement and Reimbursement Agreement — On December 27, 2019, WeWork Companies LLC entered into the Credit Agreement (as amended, waived or otherwise modified from time to time, the "Credit Agreement"). The Credit Agreement initially provided for a $1.75 billion senior secured letter of credit reimbursement facility (the "2020 LC Facility"), which was made available on February 10, 2020, for the support of WeWork Companies LLC's or its subsidiaries' obligations. As described further below, in May 2022, the existing 2020 LC Facility was amended and subdivided into a $1.25 billion senior tranche letter of credit facility (the "Senior LC Tranche"), which was then scheduled to automatically decrease to $1.05 billion in February 2023 and terminate in February 2024, and a $350 million junior tranche letter of credit facility (the "Junior LC Tranche"), which was then scheduled to terminate in November 2023. In December 2022, the Credit Agreement was further amended to, among other things, (i) extend the termination date of the existing Senior LC Tranche to March 14, 2025, and (ii) reduce the Senior LC Tranche to $1.1 billion, with a further decrease to $930 million on February 10, 2023. In February 2023, WeWork Companies LLC entered into a further amendment to the Credit Agreement pursuant to which, among other things, the Junior LC Tranche was increased to $470 million, and extended to terminate in March 2025, and the Senior LC Tranche was increased from $930 million to $960 million. As of March 31, 2023, $1.0 billion of standby letters of credit were outstanding and undrawn under the Senior LC Tranche, with no additional letters of credit available to be issued thereunder. The $1.0 billion of outstanding standby letters of credit include $48 million standby letters of credit secured by $71 million of cash collateral that has been posted and included in restricted cash as a component of other current assets in the accompanying Condensed Consolidated Balance Sheets as of March 31, 2023. On March 25, 2021, the Company and SBG entered into a letter agreement (the “Credit Support Letter”) pursuant to which SBG committed to consent to an extension of the termination date of the 2020 LC Facility from February 10, 2023 to no later than February 10, 2024 (the "LC Facility Extension"), subject to the terms and conditions set forth therein. In November 2021, the parties amended the Credit Support Letter (as so amended, the “Amended Credit Support Letter”), pursuant to which SBG agreed to consent to a reduction of the total commitment under the 2020 LC Facility from $1.75 billion to $1.25 billion starting on February 10, 2023 and to an extension of the commitment under the Senior Secured NPA for up to $500 million from February 12, 2023 to February 12, 2024. On May 10, 2022, the Company and the other parties thereto entered into the Fourth Amendment to the Credit Agreement (the "Fourth Amendment to the Credit Agreement") pursuant to which the then existing facilities under the Credit Agreement were amended and subdivided into a $1.25 billion Senior LC Tranche, which was scheduled to decrease to $1.05 billion in February 2023, and the $350 million Junior LC Tranche. The letter of credit under the Junior LC Tranche was issued and drawn for the benefit of WeWork Companies LLC in full upon effectiveness of the Fourth Amendment to the Credit Agreement. At the time of entry into the Fourth Amendment to the Credit Agreement, the termination date of the Junior LC Tranche was November 30, 2023 and the termination date of the Senior LC Tranche was February 9, 2024. Following the entry into the Fourth Amendment to the Credit Agreement, the reimbursement obligations under the Junior LC Tranche bore interest at the Term SOFR Rate (as defined in the Credit Agreement), with a floor of 0.75%, plus 6.50%, with an option to convert all or a portion of the outstanding obligations to the ABR (as defined in the Fourth Amendment to the Credit Agreement) plus 5.50% on or after August 10, 2022. As a result of the Fourth Amendment to the Credit Agreement, the reimbursement obligations under the Junior LC Tranche were voluntarily repayable at any time, subject to a prepayment fee such that the minimum return to the letter of credit participants under the Junior LC Tranche on the Junior LC Tranche reimbursement obligations was an amount equal to the sum of 6.50% (the Applicable Margin of the Junior LC Tranche reimbursement obligations) and 2.00% of the total principal amount of the Junior LC Tranche reimbursement obligations, as set forth in the Fourth Amendment to the Credit Agreement. Obligations of WeWork Companies LLC and its restricted subsidiaries under the Junior LC Tranche are subordinated in right of payment to the obligations under the Senior LC Tranche to the extent of the value of the collateral securing such obligations. In December 2022, the Company and the other parties thereto entered into the Fifth Amendment to the Credit Agreement (the "Fifth Amendment to the Credit Agreement") to, among other things, (i) extend the termination date of the Senior LC Tranche to March 14, 2025, (ii) replace SBG with SVF II as an obligor with respect to the Senior LC Tranche and (iii) reduce the Senior LC Tranche to $1.1 billion, with a subsequent automatic decrease to $930 million on February 10, 2023. The reimbursement obligations under the Senior LC Tranche were amended to an amount equal to the sum of (i) 6.00% - 6.75%, based on the relevant Rating Level Period (as defined in the Fifth Amendment to the Credit Agreement), and (ii) 2.00% of the total principal amount of the Senior LC Tranche reimbursement obligations, as set forth in the Fifth Amendment to the Credit Agreement. The Fifth Amendment to the Credit Agreement provided for the resignation of SBG as the obligor and assumption by SVF II of all of SBG's obligations with respect to the Senior LC Tranche. The Fifth Amendment to the Credit Agreement provided that the total senior letter of credit tranche commitments may be increased to an amount not to exceed $1.25 billion until February 10, 2023 and $1.05 billion thereafter with additional commitments. The Fifth Amendment to the Credit Agreement also provides that if letter of credit reimbursements under the senior letter of credit tranche are made by SVF II, the commitments in respect of the senior letter of credit tranche will be reduced by a corresponding amount. In February 2023, the Company and the other parties thereto entered into the Sixth Amendment to the Credit Agreement. Pursuant to the Sixth Amendment to the Credit Agreement, among other things, (i) additional commitments were received or obtained from ONEIM Fund I LP ("Incoming Junior LC Tranche Participant"), increasing the Junior LC Tranche by $120 million to $470 million, (ii) the termination date of the Junior LC Tranche was extended from November 30, 2023 to March 7, 2025, (iii) the interest margin applicable to the Junior LC Tranche was increased from 6.50% to 9.90% for reimbursement obligations, and (iv) the Senior LC Tranche was increased from $930 million to $960 million. The Company recognized the Sixth Amendment to the Credit Agreement under ASC 470 as an extinguishment of the original $350 million reimbursement obligation with the exiting creditors paid in full, and a new issuance of a $470 million reimbursement obligation to the new creditors, including the Incoming Junior Tranche Participant. The $470 million Junior LC tranche was drawn in full for the benefit of WeWork Companies LLC upon effectiveness of the Sixth Amendment to the Credit Agreement. The reimbursement obligations under the Junior LC Tranche remain voluntarily repayable at any time, subject to a prepayment fee in connection with prepayments made during the 18 months following the date of the Sixth Amendment to the Credit Agreement, in the amount of the net present value of interest that would have accrued on such amounts prepaid from the prepayment date to the date that is 18 months following the date of the Sixth Amendment to the Credit Agreement, discounted by the Federal Funds Effective Rate (as defined in the Credit Agreement). During the three months ended March 31, 2023 and 2022, the Company recognized $13 million and none, respectively, in interest expense in connection with the Junior LC Tranche. During the three months ended March 31, 2023, the Company recognized $10 million of extinguishment of debt expense in connection with the Sixth Amendment to the Credit Agreement including a $7 million write-off of unamortized deferred financing costs and a $3 million prepayment premium, included as a component of interest expense in the Condensed Consolidated Statement of Operations. The Company's gross proceeds of $470 million from the issuance of the Junior LC Tranche were recorded net of unamortized debt issuance costs of $12 million in long term debt, net on the accompanying Condensed Consolidated Balance Sheets as of March 31, 2023. The letter of credit facilities under the Credit Agreement are guaranteed by substantially all of the domestic wholly-owned subsidiaries of WeWork Companies LLC (collectively, the “Guarantors”) and are secured by substantially all the assets of WeWork Companies LLC and the Guarantors, in each case, subject to customary exceptions, with the obligations under the Junior LC Tranche subordinated to the obligations under the Senior LC Tranche to extent of the value of the collateral securing such obligations. The Credit Agreement and related documentation contain customary reimbursement provisions, representations, warranties, events of default and affirmative covenants (including with respect to cash management) for letter of credit facilities of this type. The negative covenants applicable to WeWork Companies LLC and its Restricted Subsidiaries (as defined in the Credit Agreement) are limited to cash management requirements and restrictions on liens (subject to exceptions substantially consistent with the indenture governing the 7.875% Senior Notes), changes in line of business, incurrence of "layering" indebtedness, and disposition of all or substantially all of the assets of WeWork Companies LLC. Certain of our outstanding letters of credit under the Senior LC Tranche include annual renewal provisions under which the issuing banks can elect not to renew a letter of credit if the next annual renewal extends the LC period beyond March 14, 2025, the current termination date of the Senior LC Tranche. If a letter of credit is not renewed, the landlord may elect to draw the existing letter of credit before it expires, in which case either WeWork or SVF II would be obligated to repay the issuing bank immediately (after application of any Cash Collateral as defined in and pursuant to the terms of the Credit Agreement). The Company intends to extend the maturity of the Senior LC Tranche such that there are no material payments under these renewal provisions. The Company has not yet agreed to any final terms for any such extension and its execution and terms are uncertain and subject to change. The Company cannot give any assurances that any such extension will be completed on acceptable terms, or at all. The reimbursement obligations under the Junior LC Tranche (i) are secured, and therefore effectively senior in right of payment with the 7.875% Senior Notes, the 5.00% Senior Notes, and any existing and future senior unsecured indebtedness of the Company, (ii) are senior in right of payment to any existing and future subordinated obligations of the Company, and (iii) rank equally in right of payment with all secured indebtedness of the Company (other than the obligations under the Senior LC Tranche, to which the reimbursement obligations under the Junior LC Tranche are subordinated to the extent of the value of the collateral securing such obligations), including the Secured Notes, and are structurally subordinated to all liabilities of any subsidiary that does not guarantee the 2020 LC Facility. As the Company is also obligated to issue shares to SBG in the future upon exercise of the 2020 LC Facility Warrant, with such warrant valued at issuance at $284 million (as discussed in Note 12), the implied interest rate for the Company on the 2020 LC Facility at issuance, assuming the full commitment is drawn, is approximately 12.47%. The Reimbursement Agreement In connection with entry into the Credit Agreement, WeWork Companies LLC also entered into a reimbursement agreement, dated as of February 10, 2020 (as amended, the "Company/SBG Reimbursement Agreement"), with SBG pursuant to which (i) SBG agreed to pay substantially all of the fees and expenses payable in connection with the Credit Agreement, (ii) the Company agreed to reimburse SBG for certain of such fees and expenses (including fronting fees up to an amount of 0.125% on the undrawn and unexpired amount of the letters of credit, plus any fronting fees in excess of 0.415% on the undrawn and unexpired amount of the letters of credit) as well as to pay SBG a fee of 5.475% on the amount of all outstanding letters of credit and (iii) the Guarantors agreed to guarantee the obligations of WeWork Companies LLC under the Company/SBG Reimbursement Agreement. In December 2021, the Company/SBG Reimbursement Agreement was amended following the entry into the Amended Credit Support Letter to, among other things, change the fees payable by WeWork Companies LLC to SBG to (i) 2.875% of the face amount of letters of credit issued under the Credit Agreement (drawn and undrawn), payable quarterly in arrears, plus (ii) the amount of any issuance fees payable on the outstanding amounts under the Credit Agreement, which as of December 31, 2021, was equal to 2.6% of the face amount of letters of credit issued under the Senior LC Facility (drawn and undrawn). In May 2022, in connection with the Fourth Amendment to the Credit Agreement, the Company/SBG Reimbursement Agreement was amended to clarify that the payment obligations of certain fees and expenses in respect of the Junior LC Tranche related to the Fourth Amendment to the Credit Agreement are the responsibility of the Company and not SBG, as described above. In December 2022, the Company, SBG and SVF II entered into an Amended and Restated Reimbursement Agreement (as further amended or otherwise modified from time to time, the "A&R Reimbursement Agreement"), which amended and restated the Company/SBG Reimbursement Agreement, to, among other things, (i) substitute SVF II instead of SBG with respect to the Senior LC Tranche, (ii) retain SBG's role with respect to the Junior LC Tranche and (iii) amend the fees payable by the Company such that no fees will be owed to SVF II in respect of the senior letter of credit issued through February 10, 2024 and thereafter fees will accrue at 7.045% of the face amount of the Senior LC Tranche, compounding quarterly and payable at the earlier of March 14, 2025 and termination or acceleration of the Senior LC Tranche. In February 2023, the Company, SBG and SVF II entered into the First Amendment to the A&R Reimbursement Agreement to, among other things, substitute SVF II instead of SBG with respect to the Junior LC Tranche and adjust the Company's reimbursement rights and obligations to each party accordingly. In addition the amendment modified the fees payable by the Company under the A&R Reimbursement Agreement, such that no fee would be owed to SVF II in respect of the Junior LC Tranche through November 30, 2023 and thereafter fees would accrue at 6.5% of the aggregate reimbursement obligations thereunder, compounding quarterly and payable at the earlier of March 7, 2025 and termination or acceleration of the Junior LC Tranche. During the three months ended March 31, 2023 and 2022, the Company recognized $16 million and $17 million, respectively, in interest expense in connection with amounts payable to SBG pursuant to the Company/SBG Reimbursement Agreement. LC Debt Facility — In May 2021, the Company entered into a loan agreement with a third party to raise up to $350 million of cash secured by one or more letters of credit issued pursuant to the 2020 LC Facility (the “LC Debt Facility”). The third party has the ability to issue a series of discount notes to investors of varying short term (one- to six- month) maturities and made a matching discount loan to the Company. The Company will pay the 5.475% issuance fee on the letter of credit, the 0.125% fronting fee on the letter of credit and the interest on the discount note which will be set with each note issuance. In September 2021, the Company repaid the initial LC Debt Facility and accrued interest totaling $350 million and entered into a new LC Debt Facility. In October 2021, the Company repaid the second LC Debt Facility and accrued interest totaling $350 million. As of December 31, 2022, there were no borrowings outstanding under the LC Debt Facility. The LC Debt Facility expired in February 2023. In May 2021, the Company had capitalized a total of $0.5 million in debt issuance costs, as the nonrefundable engagement fee, which was fully amortized as of March 31, 2023. Such costs were capitalized as deferred financing costs and included as a component of other assets, net of accumulated amortization totaling $0.5 million as of December 31, 2022, on the accompanying condensed consolidated balance sheet. During the three months ended March 31, 2023 and 2022, the Company recorded none and $0.1 million, respectively, of interest expense relating to the amortization of these costs. Construction Commitments — In the ordinary course of its business, the Company enters into certain agreements to purchase construction and related contracting services related to the build-outs of the Company’s operating locations that are enforceable and legally binding, and that specify all significant terms and the approximate timing of the purchase transaction. The Company’s purchase orders are based on current needs and are fulfilled by the vendors as needed in accordance with the Company’s construction schedule. As of March 31, 2023 and December 31, 2022, the Company had issued approximately $41 million and $60 million, respectively, in such outstanding construction commitments. Legal Matters — The Company has in the past been, is currently and expects to continue in the future to be a party to or involved in pre-litigation disputes, individual actions, putative class actions or other collective actions, U.S. and foreign government regulatory inquiries and investigations and various other legal proceedings arising in the normal course of its business, including with members, employees, landlords and other commercial partners, securityholders, third-party license holders, competitors, government agencies and regulatory agencies, among others. The Company reviews its litigation-related reserves regularly and, in accordance with GAAP, sets reserves where a loss is probable and estimable. The Company adjusts these reserves as appropriate; however, due to the unpredictable nature and timing of litigation, the ultimate loss associated with a given matter could significantly exceed the litigation reserve currently set by the Company. Given the information it has as of today, management believes that none of these matters will have a material effect on the consolidated financial position, results of operations or cash flows of the Company. As of March 31, 2023, the Company is also party to several litigation matters and regulatory matters not in the ordinary course of business. Some of these more significant matters are described below. Management intends to vigorously defend these cases and cooperate with regulators in these matters; however, there is a reasonable possibility that the Company could be unsuccessful in defending these claims and could incur losses. It is not currently possible to estimate a range of reasonably possible loss above the aggregated reserves. Regulatory Matters Since October 2019, the Company has been responding to subpoenas and document requests issued by certain federal and state authorities investigating the Company’s disclosures to investors and employees regarding the Company’s valuation and financial condition, and certain related party transactions. On November 26, 2019, the U.S. Securities and Exchange Commission issued a subpoena seeking documents and information concerning these topics, and has interviewed witnesses, in connection with a non-public investigation styled In the Matter of The We Company (HO-13870). On January 29, 2020, the United States Attorney’s Office for the Southern District of New York issued a voluntary document request concerning these topics and has interviewed witnesses. On October 11, 2019, the New York State Attorney General’s Office issued a document request concerning these topics and has examined witnesses. On February 12, 2020, the California Attorney General’s Office issued a subpoena concerning these topics. By letter dated November 3, 2022, the U.S. Securities and Exchange Commission informed the Company that it has concluded its investigation and that it did not intend to recommend any enforcement action against the Company. The Company is cooperating with the remaining investigations. Asset Retirement Obligations — As of March 31, 2023 and December 31, 2022, the Company had asset retirement obligations of $235 million and $230 million, respectively. The current portion of asset retirement obligations are included within other current liabilities and the non-current portion are included within other liabilities on the accompanying Condensed Consolidated Balance Sheets. Asset retirement obligations include the following activity during the three months ended March 31, 2023 and year ended December 31, 2022: Three Months Ended March 31, Year Ended December 31, (Amounts in millions) 2023 2022 Balance at beginning of period $ 230 $ 220 Liabilities incurred in the current period — 20 Liabilities settled in the current period (5) (10) Accretion of liability 5 16 Revisions in estimated cash flows 7 — Effect of foreign currency exchange rate changes (2) (16) Balance at end of period 235 230 Less: Current portion of asset retirement obligations (2) (2) Total non-current portion of asset retirement obligations $ 233 $ 228 |
Other Related Party Transaction
Other Related Party Transactions | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Other Related Party Transactions | Note 19. Other Related Party Transactions Related party amounts are reported in the following financial statement line items: March 31, December 31, (Amounts in millions) 2023 2022 Assets Current assets: Accounts receivable and accrued revenue $ 9 $ 3 Prepaid expenses 1 1 Other current assets — — Total current assets 10 4 Other assets 345 384 Total assets $ 355 $ 388 Liabilities Current liabilities: Accounts payable and accrued expenses $ 79 $ 86 Deferred revenue 5 2 Current lease obligations 18 13 Other current liabilities 12 2 Total current liabilities 114 103 Long-term lease obligations 287 286 Long-term debt 1,900 1,650 Other liabilities 32 32 Total liabilities $ 2,333 $ 2,071 Three Months Ended March 31, (Amounts in millions) 2023 2022 Revenue $ 11 $ 16 Expenses: Total expenses 12 19 Interest expense 80 90 International Joint Ventures and Strategic Partnerships In January 2022, the Company converted the 2020 Debentures and other convertible debentures (as discussed and defined in Note 9) into 12,397,510 and 3,375,000 common shares of IndiaCo, respectively, representing an ownership interest in IndiaCo of approximately 27.5%. The carrying value of the Company's ownership interest in IndiaCo is accounted for as an equity method investment and is considered a related party upon conversion. In December 2022, the Company pledged 8,467,347 of its shares of IndiaCo, representing 14.7% of the securities issued by IndiaCo on a fully diluted basis, as collateral for IndiaCo to enter into a debenture trust deed to borrow up to INR 5.5 billion (approximately $66.5 million as of March 31, 2023). The Company has recognized this share pledge at a fair value of $0.3 million and is included as a component of other liabilities on the accompanying Condensed Consolidated Balance Sheets. See Note 13 for details on the fair value of the share pledge. IndiaCo constructs and operates workspace locations in India using WeWork’s branding, advice, and sales model. Per the terms of an agreement, the Company will also receive a management fee from IndiaCo. During the three months ended March 31, 2023 and 2022, the Company recorded $2 million and $2 million of management fee income from IndiaCo, respectively. Subsequent to the ChinaCo Deconsolidation, the Company is entitled to an annual management fee of 4% of net revenues beginning on the later of 2022 or the first fiscal year following the Initial Investment Closing in which EBIT of ChinaCo is positive (the "ChinaCo Management Fee"). The Company is also entitled to an additional $1 million in fees in connection with data migration and application integration services that were performed over a six month period beginning on October 2, 2020. These data migration and application integration fees are only payable on the first date the ChinaCo Management Fee becomes payable, and is recognized in Accounts receivable and accrued revenue on the Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022. Subsequent to the ChinaCo Deconsolidation, the Company has also continued to provide a guarantee to certain landlords of ChinaCo, guaranteeing total lease obligations up to $3 million as of March 31, 2023. The Company is entitled to a fee totaling approximately $0.1 million per year for providing such guarantees, until such guarantees are extinguished. During the three months ended March 31, 2023 and 2022, the Company did not record any fee income for services provided to ChinaCo, included within service revenue as a component of total revenue in the accompanying Condensed Consolidated Statements of Operations. All amounts earned from ChinaCo prior to the ChinaCo Deconsolidation are eliminated in consolidation. Real Estate Transactions The Company has several operating lease agreements for space in buildings owned by an entity in which the Company has an equity method investment through WeCap Investment Group. In September 2022, the WeCap Holdings Partnership sold its investment in DSQ. As a result, subsequent to the sale the operating lease obligations related to DSQ are no longer with a related party. The Company has also entered into three separate operating lease agreements and one finance lease agreement for space in buildings that are partially owned by Mr. Neumann. Another shareholder of the Company is also a partial owner of the building in which the Company holds the finance lease. As of December 31, 2022, the Company had terminated all operating lease agreements in buildings that are partially owned by Mr. Neumann. In February 2022, the remaining operating lease agreement in a building that is partially owned by Mr. Neumann was formally terminated upon receiving the necessary ordinary course approvals. The negotiations for the termination occurred in the ordinary course and on arms' length terms. The terms of termination included the tenant entity’s release of $0.6 million in unpaid tenant improvement allowances that had been held in escrow in exchange for the forgiveness of certain tenant responsibilities under the lease and the landlord entity’s forgiveness of the remaining rent amounts then owed. The lease activity for the three months ended March 31, 2023 and 2022 for these leases are as follows: Three Months Ended March 31, (Amounts in millions) 2023 2022 Mr. Neumann Operating Lease Agreements: Lease cost expense $ — $ 1 Contractual obligation — 1 Finance Lease Agreement: Contractual obligation 1 1 WeCap Investment Group Operating Lease Agreements: Lease cost expense $ 11 $ 17 Contractual obligation 8 12 Tenant incentives received — 5 The Company's aggregate undiscounted fixed minimum lease cost payments and tenant lease incentive receivables for these leases as of March 31, 2023 are as follows: Future Minimum Lease Cost (1) Tenant Lease Receivable (Amounts in millions) Mr. Neumann Finance lease agreement $ 10 $ — WeCap Investment Group Operating lease agreements $ 588 $ 27 (1) The future minimum lease cost payments under these leases are inclusive of escalation clauses and exclusive of contingent rent payments. Membership and Service Agreements During the three months ended March 31, 2023 and 2022, the Company earned additional revenue for the sale of memberships and various other services provided and recognized expenses from related parties as follows: Three Months Ended March 31, (Amounts in millions) 2023 2022 Revenue: SBG (1) $ 8 $ 11 Other related parties (2) 1 3 Expenses: SBG (1) $ 1 $ 1 (1) SBG is a principal stockholder with representation on the Company's Board. SBG and its affiliates utilized WeWork space and services resulting in revenue. Additionally, the Company also agreed to reimburse SBG for all fees and expenses incurred in connection with the SoftBank Transactions in an aggregate amount up to $50 million. In February 2022, in connection with the Company's contribution of its business in Costa Rica to LatamCo (as discussed in Note 8), SBG waived its right to be reimbursed by the Company for $7 million of these obligations. During the three months ended March 31, 2023 and 2022, the Company made no additional payments on these obligations to SBG. As of March 31, 2023 and December 31, 2022, accounts payable and accrued expenses included $8 million payable to SBG related primarily to these reimbursement obligations. (2) These related parties have significant influence over the Company through representation on the Company's Board or are vendors in which the Company has an equity method investment or other related party relationship. |
Segment Disclosures and Concent
Segment Disclosures and Concentration | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Disclosures and Concentration | Note 20. Segment Disclosures and Concentration Operating segments are defined as components of an entity that engages in business activities from which it may earn revenues and incur expenses and has discrete financial information that is reviewed by the entity's chief operating decision maker ("CODM") to make decisions about how to allocate resources and assess performance. The Company operates in one operating segment as the Chief Executive Officer, who is our CODM, reviews financial information, assesses the performance of the Company and makes decisions about allocating resources on a consolidated basis. The Company’s revenues and total property and equipment, net, by country, are as follows: Three Months Ended March 31, (Amounts in millions) 2023 2022 Revenue: United States $ 351 $ 339 United Kingdom 135 118 Japan 54 50 Other foreign countries (1) 309 258 Total revenue $ 849 $ 765 March 31, December 31, (Amounts in millions) 2023 2022 Property and equipment: United States $ 2,091 $ 2,231 United Kingdom 550 551 Japan 240 253 Other foreign countries (1) 1,312 1,356 Total property and equipment, net $ 4,193 $ 4,391 (1) No individual countries exceed 10% of our revenues or property and equipment. The Company's concentration in specific cities magnifies the risk to the Company of localized economic conditions in those cities or the surrounding regions. The majority of the Company's revenue is earned from locations in the United States and United Kingdom. During the three months ended March 31, 2023 and 2022, approximately 41% and 45%, respectively, of the Company's revenue was earned in the United States and approximately 16% and 15%, respectively, of the Company's revenue was earned in the United Kingdom. The majority of the Company's 2023 revenue from locations in the United States was generated from locations in greater New York City, San Francisco, and Boston markets. In the United Kingdom, 87% of 2023 revenues and 88% of the Company's property and equipment, net are related to WeWork locations in the greater London area. In the United States, the Company generally uses metropolitan statistical areas (as defined by the United States Census Bureau) to define its greater metropolitan markets. The nearest equivalent is used internationally. During the three months ended March 31, 2023 and 2022 the Company had no single member that accounted for greater than 10% of the Company's total revenue. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 21. Subsequent Events These Condensed Consolidated Financial Statements include a discussion of material events, if any, which have occurred subsequent to March 31, 2023 (referred to as subsequent events) through the issuance of the Condensed Consolidated Financial Statements. Secured Notes In April 2023, the Issuers issued and sold $50 million of Secured Notes to SVF II under the Secured NPA. In May 2023, the Issuers repaid all of the $300 million outstanding Secured Notes in connection with the consummation of the Transactions. See Note 12 for additional details. Tax Asset Preservation Plan In April 2023, the Company entered into a Tax Asset Preservation Plan with Continental Stock Transfer & Trust Company, as rights agent (the “Tax Asset Preservation Plan”). The purpose of the Tax Asset Preservation Plan is to facilitate the Company’s ability to preserve its NOLs and its other tax attributes in order to be able to offset potential future income taxes for federal income tax purposes. In connection therewith, the Company’s board declared a dividend of (a) one Class A Right (a “Class A Right”) in respect of each share of Class A Common Stock of the Company and (b) one Class C Right (a “Class C Right” and together with the Class A Rights, the “Rights”) in respect of each share of Class C Common Stock of the Company. As further set forth in the Tax Asset Preservation Plan, each Class A Right initially represents the right for the holder to purchase from the Company, one ten-thousandth (a “Unit”) of a Class A Common Share for a purchase price equal to the quotient of (x) $8.00 divided by (y) ten thousand, and each Class C Right initially entitles its holder to purchase from the Company, one Unit of a Class C Common Share for a purchase price equal to the quotient of (x) $8.00 divided by (y) ten thousand, in each case, subject to adjustment pursuant to the terms of the Tax Asset Preservation Plan. The Rights are in all respects subject to and governed by the provisions of the Tax Asset Preservation Plan. The foregoing description of the Tax Asset Preservation Plan does not purport to be complete and is qualified in its entirety by reference to the Current Report on Form 8-K filed with the SEC on April 7, 2023, including the full text of the Tax Asset Preservation Plan, which is attached to such Current Report as Exhibit 4.1. Consummation of the Exchange Offers and Issuances and Sales of New Securities In March 2023, the Company and certain of its subsidiaries, including the Issuers, entered into a transaction support agreement (the “Transaction Support Agreement”), a backstop commitment agreement (the “Backstop Commitment Agreement”), a securities purchase and commitment agreement (the “SPA”) and certain other support agreements (collectively, the “Transactions Agreements”) relating to a series of contractually committed comprehensive Transactions (as defined below) with an ad hoc group (the “Ad Hoc Group”) of holders of 7.875% Senior Notes and 5.00% Senior Notes, Series II, SBG and certain affiliates thereof, a third party investor and certain other parties thereto, as applicable. The Transactions (as discussed and described below) decreased and extended the outstanding principal balance of the Company's total debt, excluding deferred financing costs as, as follows: March 31, 2023 Impact of Transactions Aggregate Principal Balance Immediately Following the Transactions (1) (Amounts in millions, except percentages) Maturity Interest Aggregate Principal Balance (1) 5.00% Senior Notes, Series I 2025 5.00% $ 1,650 $ (1,650) $ — 5.00% Senior Notes, Series II 2025 5.00% 550 (541) 9 7.875% Senior Notes 2025 7.875% 669 (505) 164 Secured Notes (2) 2025 7.500% 250 (250) — New First Lien Notes (3) 2027 15.00% — 525 525 New Second Lien Notes (3) 2027 11.00% — 687 687 New Third Lien Notes (3) 2027 12.00% — 23 23 New Second Lien Exchangeable Notes (3) 2027 11.00% — 188 188 New Third Lien Exchangeable Notes (3) 2027 12.00% — 270 270 Junior LC Tranche 2025 14.628% 470 — 470 Other Loans 2023 - 2026 3.3% - 20.6% 27 — 27 Total debt outstanding principal balance (1) $ 3,616 $ (1,253) $ 2,363 (1) Excludes deferred financing costs and other discounts or premiums. (2) Does not reflect $50 million of additional Secured Notes issued in April 2023 and repaid in May 2023 in connection with the consummation of the Transactions. (3) PIK interest (as described below) will accrue the day following the consummation of the Transactions. In April 2023, in connection with the Transactions, the Company obtained the approval by its stockholders at a special meeting to, among other things, adopt a certificate of amendment to the Company’s Second Amended and Restated Certificate of Incorporation (the “Charter Amendment”) to increase the total number of shares of Class A Common Stock that the Company will have authority to issue from 1,500,000,000 shares to 4,874,958,334 shares. Following such approval, the Company filed the Charter Amendment with the Secretary of State of the State of Delaware. In May 2023, in accordance with the Transactions Agreements, the following transactions were consummated (collectively, the “Transactions”): • The Issuers exchanged $505 million in aggregate principal amount of 7.875% Senior Notes and $541 million in aggregate principal amount of 5.00% Senior Notes, Series II, for (i) $687 million in aggregate principal amount of newly issued 11.00% Second Lien Senior Secured PIK Notes due 2027 (with interest per annum payable 5.00% in cash and 6.00% by increasing the outstanding principal amount thereof (“PIK”) of the Issuers (the “New Second Lien Notes”), (ii) $23 million in aggregate principal amount of newly issued 12.00% Third Lien Senior Secured PIK Notes due 2027 (with interest per annum payable in PIK only) of the Issuers (the “New Third Lien Notes”) and (iii) 250 million shares of Class A Common Stock of the Company, in connection with the consummation of the Issuers’ separate offers to exchange (the “Exchange Offers”). Following the consummation of the Exchange Offers, $164 million in aggregate principal amount of 7.875% Senior Notes and $9 million in aggregate principal amount of 5.00% Senior Notes, Series II, remain outstanding; • The Issuers issued and sold $500 million in aggregate principal amount of newly issued 15.00% First Lien Senior Secured PIK Notes due 2027, Series I (with interest per annum payable 7.00% in cash and 8.00% in PIK) (the “New First Lien Notes”), to certain holders who participated in the Exchange Offers. In addition, the Company issued $25 million in aggregate principal amount of New First Lien Notes to the members of the Ad Hoc Group party to the Backstop Commitment Agreement, as a backstop fee; • The Issuers and certain entities affiliated with SBG exchanged all of the $1.65 billion in aggregate principal amount of 5.00% Senior Notes, Series I, for (i) $188 million in aggregate principal amount of newly issued 11.00% Second Lien Senior Secured PIK Exchangeable Notes due 2027 (with interest per annum payable 5.00% in cash and 6.00% in PIK) of the Issuers (the “New Second Lien Exchangeable Notes”), (ii) $270 million in aggregate principal amount of newly issued 12.00% Third Lien Senior Secured PIK Exchangeable Notes due 2027 (with interest per annum payable in PIK only) of the Issuers (the “New Third Lien Exchangeable Notes”) and (iii) an aggregate of 1.1 billion shares of Class A Common Stock of the Company; • The Issuers redeemed $300 million in aggregate principal amount of Secured Notes, including $250 million issued as of March 31, 2023 and the $50 million issued in April 2023, and the Issuers and SVF II entered into a new Master First Lien Senior Secured PIK Notes Note Purchase Agreement (the “First Lien NPA”) pursuant to which the Issuers agreed to issue and sell, at their option, and SVF II agreed to purchase, from time to time and subject to the terms and conditions set forth therein, up to $300 million in aggregate principal amount of newly issued 15.00% First Lien Senior Secured PIK Notes due 2027, Series II (with interest per annum payable 7.00% in cash and 8.00% in PIK) (the “SoftBank Delayed Draw Notes”), having the same terms as, and issued under the same indenture as, the New First Lien Notes, but as a separate series. Pursuant to the First Lien NPA, SVF II is entitled to a 12.50% fee on up to $50 million in aggregate principal amount of SoftBank Delayed Draw Notes outstanding and held by SVF II in excess of $250 million in the form of additional SoftBank Delayed Draw Notes. In connection with the entry into the First Lien NPA, the Issuers and SVF II terminated SVF II’s existing $500 million commitment under the Secured NPA; and • The Company issued and sold 35 million shares of Class A Common Stock in a private placement at a purchase price of $1.15 per share for aggregate proceeds of $40 million to a third party investor pursuant to the SPA. In addition, pursuant to the SPA, the Issuers agreed to issue and sell, at their option, and the third party investor agreed to purchase, from time to time and subject to the terms and conditions set forth therein, up to $175 million in aggregate principal amount of newly issued 15.00% First Lien Senior Secured PIK Notes due 2027, Series III (with interest per annum payable 7.00% in cash and 8.00% in PIK) (the “Third Party Investor Delayed Draw Notes”), having the same terms as, and issued under the same indenture as, the New First Lien Notes and the SoftBank Delayed Draw Notes, but as a separate series. Pursuant to the SPA, the third party investor is entitled to a 12.50% fee on up to $50 million in aggregate principal amount of Third Party Investor Delayed Draw Notes outstanding and held by the third party investor in excess of $125 million in the form of additional Third Party Investor Delayed Draw Notes. Any draw request by the Issuers under the SoftBank Delayed Draw Notes and the Third Party Investor Delayed Draw Notes shall be made as follows: (i) the first $250 million under the SoftBank Delayed Draw Notes and the first $125 million under the Third Party Investor Delayed Draw Notes shall be drawn ratably; and (ii) the final $50 million |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The accompanying unaudited Condensed Consolidated Financial Statements and notes to the unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial reporting. In accordance with such rules and regulations, certain information and accompanying note disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted, although the Company believes the disclosures included herein are adequate to make the information presented not misleading. In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements reflect all normal recurring adjustments, which are considered necessary for the fair presentation of the financial position of the Company at March 31, 2023 and the results of operations for the interim periods presented. The operating results for the periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2022, included in WeWork Inc.'s Form 10-K for the year ended December 31, 2022 (the "2022 Form 10-K"). |
Segments | The Company operates as a single operating segment. |
Consolidation | The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of the Company, its majority‑owned subsidiaries and variable interest entities ("VIEs") for which the Company is the primary beneficiary. All intercompany accounts and transactions have been eliminated in consolidation. The Company is required to consolidate entities deemed to be VIEs in which the Company is the primary beneficiary. The Company is considered to be the primary beneficiary of a VIE when the Company has (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses or receive benefits that could potentially be significant to the VIE. |
Use of Estimates | Use of Estimates — The preparation of the unaudited Condensed Consolidated Financial Statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amount of revenues and expenses during the reporting periods. Estimates inherent in the current financial reporting process inevitably involve assumptions about future events. Actual results could differ from those estimates. This includes the net operating income assumptions in the Company's long-lived asset impairment testing, the timing of capital expenditures and fair value measurement changes for assets and liabilities that the Company measures at fair value and its assessment of its ability to continue to meet its obligations as they come due. The Company's net operating assumptions and liquidity forecasts are based upon continued execution of its operational restructuring program and also includes management's best estimate of the currently evolving macroeconomic landscape, including a potential economic recession, rising interest rates, inflation, and the slower than expected recovery in certain markets from the impact of the COVID-19 pandemic. These factors may continue to have an impact on WeWork's business and its liquidity needs; however, the extent to which the Company's future results and liquidity needs are further affected will largely depend on the delays in location openings, our members' renewal of their membership agreements, the effect on demand for WeWork memberships, any permanent shifts in working from home and the Company's ongoing lease negotiations with its landlords, among others. WeWork believes continued execution of its operational restructuring program and its current liquidity position will be sufficient to help it alleviate the continued near-term uncertainty and meet near-term requirements. Its assessment assumes a continued growth in its revenues and occupancy. If the Company does not experience a continued recovery consistent with its projected timing, additional capital sources may be required, the timing and source of which are uncertain. There is no assurance the Company will be successful in securing additional sources of financing if and when needed. |
Reclassifications | Reclassifications — Certain reclassifications have been made to prior years' financial information to conform to the current year presentation. This includes the inclusion of 5.00% Senior Notes in Long-term debt, net, and the inclusion of Warrant liabilities, net in Other liabilities for all periods presented on the Condensed Consolidated Balance Sheets. |
Income Taxes | Income Taxes — The Company calculates its quarterly income tax provision pursuant to Accounting Standard Codification ("ASC") 740-270, Income Taxes — Interim Reporting, which provides that a Company cannot recognize a tax benefit in its annual effective tax rate for any jurisdiction with a pre-tax book loss and full valuation allowance (“excluded jurisdictions”). For the three months ended March 31, 2023 and 2022, the Company recorded an income tax benefit of $3 million and $1 million, respectively, resulting in effective tax rates of (0.99)% and (0.20)%, respectively. As of March 31, 2023 and December 31, 2022, the Company had net deferred income tax assets of $9 million and $2 million, respectively, which were included within other assets on the accompanying Condensed Consolidated Balance Sheets. The Company analyzed its various tax positions and did not identify any material uncertain tax positions for the three months ended March 31, 2023 and 2022. |
Supplemental Disclosure of Ca_2
Supplemental Disclosure of Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Supplemental cash flow information | Three Months Ended March 31, (Amounts in millions) 2023 2022 Supplemental Cash Flow Disclosures: Cash paid during the period for interest (net of capitalized interest of none during 2023 and 2022) $ 69 $ 46 Cash received for operating lease incentives — tenant improvement allowances 27 43 Other non-cash operating expenses: Provision for allowance for doubtful accounts 2 (1) (Income) loss from equity method and other investments 2 (6) Change in fair value of financial instruments — (3) Other non-cash operating expenses 4 (10) Other investing: Change in security deposits with landlords — (1) Contributions to investments — (5) Distributions from investments — 1 Cash used for acquisitions, net of cash acquired — (9) Deconsolidation of South Africa, net of cash received (2) — Other investing (2) (14) Other financing: Principal payments for property and equipment acquired under finance leases (2) (1) Debt and equity issuance costs (9) — Proceeds from exercise of stock options and warrants 1 — Taxes paid on withholding shares (1) — Payments for contingent consideration and holdback of acquisition proceeds (1) — Other financing (12) (1) Supplemental Disclosure of Non-cash Investing & Financing Activities: Property and equipment included in accounts payable and accrued expenses 52 101 Transfer of assets to held for sale, net 112 43 Transfer of liabilities related to assets held for sale, net 101 — Additional ASC 842 Supplemental Disclosures Three Months Ended March 31, (Amounts in millions) 2023 2022 Cash paid for fixed operating lease costs included in the measurement of lease obligations in operating activities $ 540 $ 541 Cash paid for interest relating to finance leases in operating activities 1 1 Cash paid for principal relating to finance leases in financing activities 2 1 Right-of-use assets obtained in exchange for operating lease obligations, net of modifications and terminations (883) (352) |
Restructuring, Impairments an_2
Restructuring, Impairments and Gains on Sale (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Details of restructuring and other related costs | The details of these net charges are as follows: Three Months Ended March 31, (Amounts in millions) 2023 2022 Employee terminations $ 7 $ 2 Ceased use buildings 31 16 Gains on lease terminations, net (107) (154) Other, net 11 6 Total $ (58) $ (130) |
Reconciliation of beginning and ending restructuring liability balances | A reconciliation of the beginning and ending restructuring liability balances is as follows: Three Months Ended March 31, Year Ended December 31, (Amounts in millions) 2023 2022 Restructuring liability — Balance at beginning of period $ 53 $ 79 Restructuring and other related (gains) costs expensed during the period (58) (200) Cash payments of restructuring liabilities, net (1) (48) (213) Non-cash impact — primarily asset and liability write-offs and stock-based compensation 165 387 Restructuring liability — Balance at end of period (2) $ 112 $ 53 (1) Includes cash payments received from landlords for terminated leases of none and $22 million for the three months ended March 31, 2023 and the year ended December 31, 2022, respectively. (2) Includes leases termination fees of $56 million and $25 million included in accounts payables and accrued expenses and $22 million and $9 million in other liabilities as of March 31, 2023 and December 31, 2022, respectively. |
Non-routine gains and impairment charges | The details of these net charges are as follows: Three Months Ended March 31, (Amounts in millions) 2023 2022 Impairment and write-off of long-lived assets associated with restructuring $ 71 $ 56 Impairment expense, other 15 35 Impairment of assets held for sale 3 — Gain on sale of assets (12) — Total $ 77 $ 91 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Allocation of total acquisition consideration | The allocation of the total acquisition consideration during the three months ended March 31, 2022 is estimated as follows: 2022 (Amounts in millions) Acquisitions Cash and cash equivalents $ 1 Property and equipment 2 Goodwill 10 Finite-lived intangible assets 12 Lease right-of-use assets, net 2 Deferred tax liability (4) Lease obligation, net (2) Total consideration $ 21 |
Prepaid Expenses (Tables)
Prepaid Expenses (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid expenses | Prepaid expenses consists of the following: (Amounts in millions) March 31, 2023 December 31, 2022 Prepaid member referral fees and deferred sales incentive compensation (Note 14) $ 51 $ 55 Prepaid lease costs 30 32 Prepaid income taxes 28 31 Prepaid software 21 13 Other prepaid expenses 9 7 Total prepaid expenses $ 139 $ 138 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other current assets | Other current assets consists of the following: (Amounts in millions) March 31, 2023 December 31, 2022 Assets held for sale (includes $7 cash) $ 164 $ 52 Restricted cash 71 — Deposits held by landlords 38 13 Net receivable for value added tax (“VAT”) 30 40 Straight-line revenue receivable 22 24 Other current assets 43 26 Total other current assets $ 368 $ 155 |
Consolidated VIEs and Noncont_2
Consolidated VIEs and Noncontrolling Interests (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Information of consolidated VIEs | The following table includes selected condensed consolidated financial information as of March 31, 2023 and December 31, 2022 of the Company's consolidated VIEs, as included in its Condensed Consolidated Financial Statements, in each case, after intercompany eliminations. March 31, 2023 December 31, 2022 (Amounts in millions) SBG JVs (1) Other VIEs (2) SBG JVs (1) Other VIEs (2) Consolidated VIE Balance Sheets information: Cash and cash equivalents $ 36 $ 7 $ 55 $ 6 Property and equipment, net 469 — 498 — Restricted cash 3 — 3 — Total assets 2,241 11 2,299 10 Long-term debt, net 5 — 3 — Total liabilities 2,146 1 2,176 3 Redeemable stock issued by VIEs 80 — 80 — Total net assets (3) 15 10 43 7 The following tables include selected condensed consolidated financial information for the three months ended March 31, 2023 and 2022, of the Company's consolidated VIEs, as included in its Condensed Consolidated Financial Statements, for the periods they were considered VIEs and in each case, after intercompany eliminations. Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 (Amounts in millions) SBG JVs (1) Other VIEs (2) SBG JVs (1) Other VIEs (2) Consolidated VIE Statements of Operations information: Total revenue $ 119 $ 2 $ 98 $ 3 Net income (loss) (29) (1) (71) — Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 (Amounts in millions) SBG JVs (1) Other VIEs (2) SBG JVs (1) Other VIEs (2) Consolidated VIE Statements of Cash Flows information: Net cash provided by (used in) operating activities $ (23) $ (4) $ (40) $ (1) Net cash used in investing activities (5) — (7) — Net cash provided by (used in) financing activities 8 4 6 1 (1) The “SBG JVs” include JapanCo and LatamCo as of and for the periods that each represented a consolidated VIE. The consent of an affiliate of SoftBank Group Capital Limited is required for any dividends to be distributed by JapanCo and LatamCo. As a result, any net assets of JapanCo and LatamCo would be considered restricted net assets to the Company as of March 31, 2023. The net assets of the SBG JVs include membership interest in JapanCo issued to affiliates of SBG with liquidation preferences totaling $500 million as of March 31, 2023 and December 31, 2022 and ordinary shares in LatamCo totaling $80 million as of March 31, 2023 and December 31, 2022 that are redeemable upon the occurrence of event that is not solely within the control of the company. After reducing the net assets of the SBG JVs by the liquidation preference associated with such membership interest and redeemable ordinary shares, the remaining net assets of the SBG JVs are negative as of March 31, 2023 and December 31, 2022. (2) For the three months ended March 31, 2023 and 2022, "Other VIEs" includes WeCap Manager and WeCap Holdings Partnership. (3) Total net assets represents total assets less total liabilities and redeemable stock issued by VIEs after the total assets and total liabilities have both been reduced to remove amounts that eliminate in consolidation. |
Equity Method and Other Inves_2
Equity Method and Other Investments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investments, All Other Investments [Abstract] | |
Investments | The Company's investments consist of the following: March 31, 2023 December 31, 2022 (Amounts in millions, except percentages) Carrying Cost Percentage Carrying Investee Investment Type Value Basis Ownership Value IndiaCo (1) Equity method investment $ 30 $ 105 27.5% $ 29 WPI Fund (2) Equity method investment 21 36 8.0% 25 Investments held by WeCap Holdings Partnership (3) Equity method investments 4 5 Various 4 ChinaCo (4) Equity method investment — 29 19.7% — Other (5) Various 5 6 Various 5 Total equity method and other investments $ 60 $ 181 $ 63 (1) In June 2020, the Company entered into an agreement with WeWork India Management Private Limited (“IndiaCo”), an affiliate of Embassy Property Developments Private Limited (“Embassy”), to subscribe for new convertible debentures to be issued by IndiaCo in an aggregate principal amount of $100 million (the "2020 Debentures"). During June 2020, $85 million of the principal had been funded, with the remaining $15 million funded in April 2021. The 2020 Debentures earned interest at a coupon rate of 12.5% per annum for the 18-month period beginning in June 2020 which then was reduced to 0.001% per annum and have a maximum term of 10 years. The 2020 Debentures are convertible into equity at the Company’s option after 18 months from June 2020 or upon mutual agreement between the Company, IndiaCo, and Embassy. During the three months ended March 31, 2023 and 2022, the Company recorded a credit loss valuation allowance on its investments in IndiaCo totaling none and $1 million, respectively, included in Income (loss) from equity method and other investments. During the three months ended March 31, 2023 and 2022 , the Company recorded none and $2 million, respectively, in unrealized gain (loss) on available-for-sale securities included in other comprehensive income, net of tax. In January 2022, the Company converted the 2020 Debentures and other convertible debentures into 12,397,510 and 3,375,000 common shares of IndiaCo, respectively, representing an ownership interest in IndiaCo of approximately 27.5%. In December 2022, the Company pledged 8,467,347 of its shares of IndiaCo, representing 14.7% of the securities issued by IndiaCo on a fully diluted basis, as collateral for IndiaCo to enter into a debenture trust deed. As of March 31, 2023 and December 31, 2022, the carrying value of the investment included $0.3 million and $0.4 million, respectively, for the unamortized guarantee. See Note 13 for details regarding the IndiaCo share pledge. IndiaCo constructs and operates workspace locations in India using WeWork’s branding, advice and sales model. Per the terms of an agreement the Company also receives a management fee from IndiaCo. The Company recorded $2 million and $2 million of management fee income from IndiaCo during the three months ended March 31, 2023 and 2022 , respectively. Management fee income is included within service revenue as a component of total revenue in the accompanying Condensed Consolidated Statements of Operations. (2) In addition to the general partner interest in the WPI Fund (as discussed and defined below) held by WeCap Holdings Partnership, a wholly owned subsidiary of the WeCap Investment Group also owns an 8% limited partner interest in the WPI Fund. (3) As discussed in Note 8, the following investments are investments held by WeCap Holdings Partnership, which are accounted for by the WeCap Holdings Partnership as equity method investments: • "WPI Fund" — a real estate investment fund in which WeCap Holdings Partnership holds the 0.5% general partner interest. The WPI Fund’s focus is acquiring, developing and managing office assets with current or expected vacancy suitable for WeWork occupancy, currently primarily focusing on opportunities in North America and Europe. • "ARK Master Fund" — an investment fund in which WeCap Holdings Partnership is the general partner and holds a limited partner interest totaling 2% of the fund's invested capital. ARK Master Fund invests in real estate and real estate-related investments that it expects could benefit from the Company’s occupancy or involvement or the involvement of the limited partners of the ARK Master Fund. (4) In October 2020, the Company deconsolidated ChinaCo and its retained 21.6% ordinary share equity method investment was recorded at a fair value of $26 million plus capitalized legal cost for a total initial cost basis and carrying value as of December 31, 2020 of $29 million. Pursuant to ASC 323-10-35-20, the Company discontinued applying the equity method on the ChinaCo investment when the carrying amount was reduced to zero in the first quarter of 2021. The Company will resume application of the equity method if, during the period the equity method was suspended, the Company's share of unrecognized net income exceeds the Company's share of unrecognized net losses. The Company's remaining interest was diluted down to 19.7% in connection with the Second Investment Closing on September 29, 2021. See Note 19 for details regarding various related party fees payable by ChinaCo to the Company. (5) The Company holds various other investments as of March 31, 2023 and December 31, 2022. In February 2022, the Company purchased shares of Upflex Inc. ("Upflex") Series A Preferred Stock for a total purchase price of $5 million, representing approximately 5.38% ownership on a fully diluted basis. Upflex is a coworking aggregator and global flexible workplace startup. The Company recorded its share of gain (loss) related to its equity method and other investments in the Condensed Consolidated Statements of Operations as follows: Three Months Ended March 31, (Amounts in millions) 2023 2022 Income (loss) from equity method investments $ (2) $ 6 The table below provides a summary of contributions made to and distributions received from the Company's investments: Three Months Ended March 31, (Amounts in millions) 2023 2022 Contributions made to investments $ — $ 5 Distributions received from investments $ — $ 1 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other non-current assets | Other non-current assets consists of the following: (Amounts in millions) March 31, 2023 December 31, 2022 Deferred financing costs, net (Note 12): Deferred financing costs, net — SoftBank Senior Unsecured Notes Warrant (1) $ 248 $ 275 Deferred financing costs, net — 2020 LC Facility Warrant and LC Warrant issued to SBG (1) 66 74 Deferred financing costs, net — Other SoftBank Debt Financing Costs paid or payable to SBG (1) 31 35 Deferred financing costs, net — Other SoftBank Debt Financing Costs paid or payable to third parties (1) 22 23 Deferred financing costs, net — Other paid or payable to third parties 38 — Total deferred financing costs, net (1) 405 407 Other assets: Security deposits with landlords 207 210 Restricted cash 4 5 Long-term receivable for value added tax 44 55 Straight-line revenue receivable 33 36 Other long-term prepaid expenses and other assets 30 27 Total other assets $ 723 $ 740 (1) Amounts are net of accumulated amortization totaling $623 million and $581 million as of March 31, 2023 and December 31, 2022, respectively. See Note 12 for amortization incurred during the period. |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Other current liabilities | Other current liabilities consists of the following: (Amounts in millions) March 31, 2023 December 31, 2022 Liabilities held for sale (See Note 7) $ 184 $ 83 Refunds payable to former members 57 45 Current portion of long-term debt (See Note 12) 22 22 Other current liabilities 32 22 Total other current liabilities $ 295 $ 172 |
Long-Term Debt, Net, SoftBank_2
Long-Term Debt, Net, SoftBank Debt Financing and Interest Expense (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-term debt, net | Long-term debt, net consists of the following: Maturity Interest March 31, December 31, (Amounts in millions, except percentages) 5.000% Senior Notes: Outstanding principal balance 2025 5.000% $ 2,200 $ 2,200 7.875% Senior Notes: Outstanding principal balance 2025 7.875% 669 669 Less: unamortized debt issuance costs (6) (7) Total 7.875% Senior Notes, net 663 662 Junior LC Tranche (Note 18): Outstanding principal balance (1) 2025 14.628% 470 350 Less: unamortized debt issuance costs (12) (7) Total Junior LC Tranche, net 458 343 Secured Notes: Outstanding principal balance 2025 7.500% 250 — Other Loans: Outstanding principal balance 2023 - 2026 3.3% - 20.6% 27 25 Less: current portion of Other Loans (See Note 11) (22) (22) Total non-current portion Other Loans, net 5 3 Total long-term debt, net $ 3,576 $ 3,208 (1) As of March 31, 2023, the reimbursement obligations under the Junior LC Tranche bear interest at the Term SOFR Rate with a floor of 0.75%, plus 9.90%. March 31, 2023 Impact of Transactions Aggregate Principal Balance Immediately Following the Transactions (1) (Amounts in millions, except percentages) Maturity Interest Aggregate Principal Balance (1) 5.00% Senior Notes, Series I 2025 5.00% $ 1,650 $ (1,650) $ — 5.00% Senior Notes, Series II 2025 5.00% 550 (541) 9 7.875% Senior Notes 2025 7.875% 669 (505) 164 Secured Notes (2) 2025 7.500% 250 (250) — New First Lien Notes (3) 2027 15.00% — 525 525 New Second Lien Notes (3) 2027 11.00% — 687 687 New Third Lien Notes (3) 2027 12.00% — 23 23 New Second Lien Exchangeable Notes (3) 2027 11.00% — 188 188 New Third Lien Exchangeable Notes (3) 2027 12.00% — 270 270 Junior LC Tranche 2025 14.628% 470 — 470 Other Loans 2023 - 2026 3.3% - 20.6% 27 — 27 Total debt outstanding principal balance (1) $ 3,616 $ (1,253) $ 2,363 (1) Excludes deferred financing costs and other discounts or premiums. (2) Does not reflect $50 million of additional Secured Notes issued in April 2023 and repaid in May 2023 in connection with the consummation of the Transactions. |
Principal maturities | Combined aggregate principal payments for current and long-term debt as of March 31, 2023 are as follows: (Amounts in millions) Long-term debt 5.00% Senior Notes Total Long-Term Debt and SoftBank Debt Financing Remainder of 2023 $ 16 $ — $ 16 2024 9 — 9 2025 1,390 2,200 3,590 2026 1 — 1 2027 — — — 2028 and beyond — — — Total minimum payments $ 1,416 $ 2,200 $ 3,616 |
Interest expense | The Company recorded the following Interest expense in the Condensed Consolidated Statements of Operations: Three Months Ended March 31, (Amounts in millions) 2023 2022 Interest expense on long-term debt and SoftBank debt financing: 2020 LC Facility and LC Debt Facility (Note 18) $ 29 $ 17 5.00% Senior Notes 28 28 7.875% Senior Notes 13 13 Extinguishment of debt expense 10 — Secured Notes 5 — Other 2 2 Total interest expense on long-term debt 87 60 Deferred financing costs amortization (Note 10): SoftBank unsecured deferred financing costs 27 27 SoftBank LC deferred financing costs 14 24 Secured Notes deferred financing costs 1 — Other debt financing costs 2 2 Total deferred financing costs amortization 44 53 Total interest expense $ 131 $ 113 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value on a recurring basis | The Company’s assets and liabilities measured at fair value on a recurring basis consisted of the following: March 31, 2023 (Amounts in millions) Level 1 Level 2 Level 3 Total Assets: Cash equivalents — money market funds and time deposits $ 21 $ — $ — $ 21 Total assets measured at fair value $ 21 $ — $ — $ 21 Liabilities: Warrant liabilities, net $ — $ 1 $ — $ 1 Other liabilities - contingent consideration relating to acquisitions payable in cash — — — — Total liabilities measured at fair value $ — $ 1 $ — $ 1 December 31, 2022 (Amounts in millions) Level 1 Level 2 Level 3 Total Assets: Cash equivalents — money market funds and time deposits $ 27 $ — $ — $ 27 Total assets measured at fair value $ 27 $ — $ — $ 27 Liabilities: Warrant Liabilities, net $ — $ 1 $ — $ 1 Other liabilities - contingent consideration relating to acquisitions payable in cash — — 1 1 Total liabilities measured at fair value $ — $ 1 $ 1 $ 2 |
Assets recorded at fair value classified as Level 3 | The tables below provide a summary of the changes in assets and liabilities recorded at fair value and classified as Level 3: Three Months Ended March 31, Year Ended (Amounts in millions) 2023 2022 Assets: Balance at beginning of period $ — $ 34 Credit loss valuation allowance included in income (loss) from equity method and other investments — (1) Accrued interest collected — (3) Foreign currency translation (losses) gain included in other comprehensive income — 3 Conversion of available-for-sale securities to equity method investment (Note 9) — (33) Balance at end of period $ — $ — |
Liabilities recorded at fair value classified as Level 3 | The tables below provide a summary of the changes in assets and liabilities recorded at fair value and classified as Level 3: Three Months Ended March 31, 2023 (Amounts in millions) Balance at Beginning of Period Additions Reclassification Settlements Change in Fair Value Balance at End of Period Liabilities: Other current liabilities - contingent consideration relating to acquisitions payable in common stock $ — $ — $ — $ — $ — $ — Other current liabilities - contingent consideration relating to acquisitions payable in cash — — 1 (1) — — Other liabilities - contingent consideration relating to acquisitions payable in cash 1 — (1) — — — Total $ 1 $ — $ — $ (1) $ — $ — Year Ended December 31, 2022 (Amounts in millions) Balance at Beginning of Period Additions Settlements Change in Fair Value Balance at End of Period Liabilities: Other current liabilities - contingent consideration relating to acquisitions payable in common stock $ — $ 3 $ (1) $ (2) $ — Other current liabilities - contingent consideration relating to acquisitions payable in cash — 2 (2) — — Other liabilities - contingent consideration relating to acquisitions payable in cash — 1 — — 1 Total $ — $ 6 $ (3) $ (2) $ 1 |
Change in fair value and unrealized gains (losses) | The total Gain (loss) from change in fair value of warrant liabilities included in the Condensed Consolidated Statements of Operations are as follows: Three Months Ended March 31, (Amounts in millions) 2023 2022 Selling, general and administrative expenses: Level 3 liabilities $ — $ 1 Gain (loss) from change in fair value of warrant liabilities: Level 2 liabilities $ — $ 3 |
Valuation techniques and significant unobservable inputs | The valuation techniques and significant unobservable inputs used in the recurring fair value measurements categorized within Level 3 of the fair value hierarchy are as follows: March 31, 2023 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) Level 3 Liabilities: Other current liabilities - contingent consideration relating to acquisitions $ — Probability weighted cash flow Probability adjustment 100% Other liabilities - contingent consideration relating to acquisitions $ — Probability weighted cash flow Probability adjustment 100% December 31, 2022 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) Level 3 Liabilities: Other current liabilities - contingent consideration relating to acquisitions $ — Probability weighted cash flow Probability adjustment 100% Other liabilities - contingent consideration relating to acquisitions $ 1 Probability weighted cash flow Probability adjustment 100% Other liabilities - IndiaCo share pledge $ — Discounted cash flow Risk-adjusted discount rate 12.3% |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregated detail of revenue | The following table provides disaggregated detail of the Company's revenue by major source for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, (Amounts in millions) 2023 2022 ASC 606 membership and service revenue $ 567 $ 522 ASC 842 rental and service revenue 277 225 Total membership and service revenue 844 747 Other revenue (1) 5 18 Total revenue $ 849 $ 765 |
Contract assets and deferred revenue | The following table provides information about contract assets and deferred revenue from contracts with customers recognized in accordance with ASC 606: March 31, December 31, (Amounts in millions) 2023 2022 Contract assets (included in Accounts receivable and accrued revenue, net) $ — $ 1 Contract assets (included in Other current assets) 8 7 Contract assets (included in Other assets) 15 17 Deferred revenue (42) (51) Prepaid member referral fees and deferred sales incentive compensation were included in the following financial statement line items on the accompanying Condensed Consolidated Balance Sheets: March 31, December 31, (Amounts in millions) 2023 2022 Prepaid expenses $ 51 $ 55 Other assets 17 21 The amortization of these costs is included as a component of selling, general and administrative expenses in the accompanying Condensed Consolidated Statements of Operations. Three Months Ended March 31, (Amounts in millions) 2023 2022 Amortization of capitalized costs to obtain a contract with a customer $ 24 $ 21 |
Allowance for credit loss | The following table provides a summary of changes of the allowance for credit loss for the three months ended March 31, 2023 and the year ended December 31, 2022: March 31, December 31, (Amounts in millions) 2023 2022 Balance at beginning of period $ 13 $ 63 Provision charged to expense 2 4 Write-offs (3) (19) Changes for member collectability uncertainty (1) (3) (33) Effect of foreign currency exchange rate changes — (2) Balance at end of period $ 9 $ 13 |
Future minimum lease cash flows | Approximate future minimum lease cash flows to be received over the next five years and thereafter for non-cancelable membership agreements accounted for as leases in accordance with ASC 842 in effect at March 31, 2023 are as follows: (Amounts in millions) ASC 842 Revenue 2023 $ 433 2024 293 2025 136 2026 46 2027 25 2028 and beyond 24 Total $ 957 |
Leasing Arrangements (Tables)
Leasing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Lease costs, weighted average remaining lease term and weighted average discount rate | The components of total real estate operating lease cost for leases recorded under ASC 842 are as follows : Three Months Ended March 31, 2023 Reported in: Selling, Restructuring Location Pre-opening General and and Other (Amounts in millions) Operating Expenses Location Expenses Administrative Expenses Related (Gains) Costs Total Lease cost contractually paid or payable for the period $ 618 $ 5 $ 3 $ 31 $ 657 Non-cash GAAP straight-line lease cost 21 2 — 3 26 Amortization of lease incentives (65) (1) — (3) (69) Total real estate operating lease cost $ 574 $ 6 $ 3 $ 31 $ 614 Early termination fees and related (gain)/loss $ — $ — $ — $ (107) $ (107) Three Months Ended March 31, 2022 Reported in: Selling, Location Pre-opening General and Restructuring (Amounts in millions) Operating Expenses Location Expenses Administrative Expenses and Other Related Costs Total Lease cost contractually paid or payable for the period $ 624 $ 33 $ 5 $ 12 $ 674 Non-cash GAAP straight-line lease cost 30 16 — 4 50 Amortization of lease incentives (70) (5) (1) (1) (77) Total real estate operating lease cost $ 584 $ 44 $ 4 $ 15 $ 647 Early termination fees and related (gain)/loss $ — $ — $ — $ (154) $ (154) The Company's total ASC 842 operating lease costs include both fixed and variable components as follows: Three Months Ended March 31, 2023 Reported in: Selling, Restructuring Location Pre-opening General and and Other (Amounts in millions) Operating Expenses Location Expenses Administrative Expenses Related (Gains) Costs Total Fixed real estate lease costs $ 467 $ 6 $ 3 $ 30 $ 506 Fixed equipment and other lease costs — — — — — Total fixed lease costs $ 467 $ 6 $ 3 $ 30 $ 506 Variable real estate lease costs $ 107 $ — $ — $ 1 $ 108 Variable equipment and other lease costs — — — — — Total variable lease costs $ 107 $ — $ — $ 1 $ 108 Three Months Ended March 31, 2022 Reported in: Selling, Location Pre-opening General and Restructuring (Amounts in millions) Operating Expenses Location Expenses Administrative Expenses and Other Related Costs Total Fixed real estate lease costs $ 482 $ 38 $ 4 $ 14 $ 538 Fixed equipment and other lease costs — — — — — Total fixed lease costs $ 482 $ 38 $ 4 $ 14 $ 538 Variable real estate lease costs $ 102 $ 6 $ — $ 1 $ 109 Variable equipment and other lease costs 1 — — — 1 Total variable lease costs $ 103 $ 6 $ — $ 1 $ 110 The Company also has certain leases accounted for as finance leases. Total lease costs for finance leases are as follows: Three Months Ended March 31, (Amounts in millions) 2023 2022 Depreciation and amortization $ 1 $ 1 Interest expense 1 1 Total $ 2 $ 2 March 31, 2023 December 31, 2022 Operating Finance Operating Finance Weighted average remaining lease term (in years) 11 6 12 8 Weighted average discount rate percentage 10.0 % 8.0 % 9.3 % 7.5 % |
Assets and liabilities | The below table presents the lease related assets and liabilities recorded on the accompanying Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022, as recorded in accordance with ASC 842: March 31, December 31, (Amounts in millions) Balance Sheet Captions 2023 2022 Assets: Operating lease right-of-use assets Lease right-of-use assets, net $ 10,399 $ 11,243 Finance lease right-of-use assets (1) Property and equipment, net 35 46 Total leased assets $ 10,434 $ 11,289 Liabilities: Current liabilities Operating lease liabilities Current lease obligations $ 914 $ 931 Finance lease liabilities Current lease obligations 4 5 Total current liabilities 918 936 Non-current liabilities Operating lease obligations Long-term lease obligations 14,545 15,565 Finance lease obligations Long-term lease obligations 19 33 Total non-current liabilities 14,564 15,598 Total lease obligations $ 15,482 $ 16,534 (1) Finance lease right-of-use assets are recorded net of accumulated amortizati on of $27 million and $26 million as of March 31, 2023 and December 31, 2022, respectively. |
Annual lease obligations - finance leases | The Company's aggregate annual lease obligations relating to non-cancelable finance and operating leases in possession as of March 31, 2023 as presented in accordance with ASC 842: Finance Operating (Amounts in millions) Leases Leases Total Remainder of 2023 $ 5 $ 1,745 $ 1,750 2024 6 2,297 2,303 2025 5 2,333 2,338 2026 5 2,354 2,359 2027 4 2,348 2,352 2028 and beyond 8 15,121 15,129 Total undiscounted fixed minimum lease cost payments 33 26,198 26,231 Less: Amount representing lease incentive receivables, net (1) — (147) (147) Less: Amount representing interest (10) (10,423) (10,433) Present value of future lease payments 23 15,628 15,651 Less: Obligations classified as held for sale — (169) (169) Less: Current portion of lease obligation (4) (914) (918) Total long-term lease obligation $ 19 $ 14,545 $ 14,564 (1) Lease incentive receivables primarily represent amounts expected to be received by the Company relating to payments for leasehold improvements that are reimbursable pursuant to lease provisions with relevant landlords and receivables for broker commissions earned for negotiating certain of the Company’s leases. Lease incentive receivables are presented net of deferred tenant incentives for contingent lease arrangements of $48 million as of March 31, 2023 |
Annual lease obligations - operating leases | The Company's aggregate annual lease obligations relating to non-cancelable finance and operating leases in possession as of March 31, 2023 as presented in accordance with ASC 842: Finance Operating (Amounts in millions) Leases Leases Total Remainder of 2023 $ 5 $ 1,745 $ 1,750 2024 6 2,297 2,303 2025 5 2,333 2,338 2026 5 2,354 2,359 2027 4 2,348 2,352 2028 and beyond 8 15,121 15,129 Total undiscounted fixed minimum lease cost payments 33 26,198 26,231 Less: Amount representing lease incentive receivables, net (1) — (147) (147) Less: Amount representing interest (10) (10,423) (10,433) Present value of future lease payments 23 15,628 15,651 Less: Obligations classified as held for sale — (169) (169) Less: Current portion of lease obligation (4) (914) (918) Total long-term lease obligation $ 19 $ 14,545 $ 14,564 (1) Lease incentive receivables primarily represent amounts expected to be received by the Company relating to payments for leasehold improvements that are reimbursable pursuant to lease provisions with relevant landlords and receivables for broker commissions earned for negotiating certain of the Company’s leases. Lease incentive receivables are presented net of deferred tenant incentives for contingent lease arrangements of $48 million as of March 31, 2023 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based compensation expense | The stock-based compensation expense related to employees and non-employee directors recognized for the following instruments and transactions are as follows: Three Months Ended March 31, (Amounts in millions) 2023 2022 Service-based restricted stock units $ 7 $ 8 Service-based vesting stock options (1) 1 3 Service, performance and market-based vesting restricted stock units (2) (2) 2 Service, performance and market-based vesting stock options (2) (3) — Total $ 3 $ 13 (1) Includes $0.1 million of stock-based compensation expense recognized during the three months ended March 31, 2023 for service-based option awards granted by the LatamCo subsidiary in 2022 under the 2022 LatamCo ESOP. (2) Includes a reversal of stock-based compensation expense previously recorded of $2 million and $3 million for unvested RSUs and unvested options, respectively, that were forfeited during the three months ended March 31, 2023, and a reversal of stock-based compensation expense previously recorded of $2 million for unvested options that were forfeited during the three months ended March 31, 2022. The stock-based compensation expense related to employees and non-employee directors are reported in the following financial statement line items: Three Months Ended March 31, (Amounts in millions) 2023 2022 Location operating expenses $ 1 $ 2 Selling, general and administrative expenses 2 11 Total stock-based compensation expense $ 3 $ 13 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Loss Per Share Computations | The numerators and denominators of the basic and diluted net loss per share computations for WeWork's common stock are calculated as follows for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, (Amounts in millions, except share and per share amounts) 2023 2022 Numerator: Net loss attributed to WeWork Inc. $ (264) $ (435) Net loss attributable to Class A Common Stockholders - basic $ (264) $ (435) Net loss attributable to Class A Common Stockholders - diluted $ (264) $ (435) Denominator: Basic shares: Weighted-average shares - Basic 766,258,253 759,676,860 Diluted shares: Weighted-average shares - Diluted 766,258,253 759,676,860 Net loss per share attributable to Class A Common Stockholders: Basic $ (0.34) $ (0.57) Diluted $ (0.34) $ (0.57) |
Potentially Dilutive Shares | The following potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive, or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the period. These amounts represent the number of instruments outstanding at the end of each respective period. Three Months Ended March 31, 2023 2022 RSUs 32,226,017 18,580,989 Warrants 23,877,777 23,877,787 Partnership Units 19,896,032 19,896,032 Stock options 10,086,548 17,301,513 Contingent shares (1) 275,713 — WeWork Partnerships Profits Interest Units 42,057 42,057 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Asset retirement obligations | Asset retirement obligations include the following activity during the three months ended March 31, 2023 and year ended December 31, 2022: Three Months Ended March 31, Year Ended December 31, (Amounts in millions) 2023 2022 Balance at beginning of period $ 230 $ 220 Liabilities incurred in the current period — 20 Liabilities settled in the current period (5) (10) Accretion of liability 5 16 Revisions in estimated cash flows 7 — Effect of foreign currency exchange rate changes (2) (16) Balance at end of period 235 230 Less: Current portion of asset retirement obligations (2) (2) Total non-current portion of asset retirement obligations $ 233 $ 228 |
Other Related Party Transacti_2
Other Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Related party amounts are reported in the following financial statement line items: March 31, December 31, (Amounts in millions) 2023 2022 Assets Current assets: Accounts receivable and accrued revenue $ 9 $ 3 Prepaid expenses 1 1 Other current assets — — Total current assets 10 4 Other assets 345 384 Total assets $ 355 $ 388 Liabilities Current liabilities: Accounts payable and accrued expenses $ 79 $ 86 Deferred revenue 5 2 Current lease obligations 18 13 Other current liabilities 12 2 Total current liabilities 114 103 Long-term lease obligations 287 286 Long-term debt 1,900 1,650 Other liabilities 32 32 Total liabilities $ 2,333 $ 2,071 Three Months Ended March 31, (Amounts in millions) 2023 2022 Revenue $ 11 $ 16 Expenses: Total expenses 12 19 Interest expense 80 90 The lease activity for the three months ended March 31, 2023 and 2022 for these leases are as follows: Three Months Ended March 31, (Amounts in millions) 2023 2022 Mr. Neumann Operating Lease Agreements: Lease cost expense $ — $ 1 Contractual obligation — 1 Finance Lease Agreement: Contractual obligation 1 1 WeCap Investment Group Operating Lease Agreements: Lease cost expense $ 11 $ 17 Contractual obligation 8 12 Tenant incentives received — 5 The Company's aggregate undiscounted fixed minimum lease cost payments and tenant lease incentive receivables for these leases as of March 31, 2023 are as follows: Future Minimum Lease Cost (1) Tenant Lease Receivable (Amounts in millions) Mr. Neumann Finance lease agreement $ 10 $ — WeCap Investment Group Operating lease agreements $ 588 $ 27 (1) The future minimum lease cost payments under these leases are inclusive of escalation clauses and exclusive of contingent rent payments. During the three months ended March 31, 2023 and 2022, the Company earned additional revenue for the sale of memberships and various other services provided and recognized expenses from related parties as follows: Three Months Ended March 31, (Amounts in millions) 2023 2022 Revenue: SBG (1) $ 8 $ 11 Other related parties (2) 1 3 Expenses: SBG (1) $ 1 $ 1 (1) SBG is a principal stockholder with representation on the Company's Board. SBG and its affiliates utilized WeWork space and services resulting in revenue. Additionally, the Company also agreed to reimburse SBG for all fees and expenses incurred in connection with the SoftBank Transactions in an aggregate amount up to $50 million. In February 2022, in connection with the Company's contribution of its business in Costa Rica to LatamCo (as discussed in Note 8), SBG waived its right to be reimbursed by the Company for $7 million of these obligations. During the three months ended March 31, 2023 and 2022, the Company made no additional payments on these obligations to SBG. As of March 31, 2023 and December 31, 2022, accounts payable and accrued expenses included $8 million payable to SBG related primarily to these reimbursement obligations. (2) These related parties have significant influence over the Company through representation on the Company's Board or are vendors in which the Company has an equity method investment or other related party relationship. |
Segment Disclosures and Conce_2
Segment Disclosures and Concentration (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Revenues by country | Three Months Ended March 31, (Amounts in millions) 2023 2022 Revenue: United States $ 351 $ 339 United Kingdom 135 118 Japan 54 50 Other foreign countries (1) 309 258 Total revenue $ 849 $ 765 |
Property and equipment by country | March 31, December 31, (Amounts in millions) 2023 2022 Property and equipment: United States $ 2,091 $ 2,231 United Kingdom 550 551 Japan 240 253 Other foreign countries (1) 1,312 1,356 Total property and equipment, net $ 4,193 $ 4,391 (1) No individual countries exceed 10% of our revenues or property and equipment. |
Subsequent Events (Tables)
Subsequent Events (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Long-term debt, net | Long-term debt, net consists of the following: Maturity Interest March 31, December 31, (Amounts in millions, except percentages) 5.000% Senior Notes: Outstanding principal balance 2025 5.000% $ 2,200 $ 2,200 7.875% Senior Notes: Outstanding principal balance 2025 7.875% 669 669 Less: unamortized debt issuance costs (6) (7) Total 7.875% Senior Notes, net 663 662 Junior LC Tranche (Note 18): Outstanding principal balance (1) 2025 14.628% 470 350 Less: unamortized debt issuance costs (12) (7) Total Junior LC Tranche, net 458 343 Secured Notes: Outstanding principal balance 2025 7.500% 250 — Other Loans: Outstanding principal balance 2023 - 2026 3.3% - 20.6% 27 25 Less: current portion of Other Loans (See Note 11) (22) (22) Total non-current portion Other Loans, net 5 3 Total long-term debt, net $ 3,576 $ 3,208 (1) As of March 31, 2023, the reimbursement obligations under the Junior LC Tranche bear interest at the Term SOFR Rate with a floor of 0.75%, plus 9.90%. March 31, 2023 Impact of Transactions Aggregate Principal Balance Immediately Following the Transactions (1) (Amounts in millions, except percentages) Maturity Interest Aggregate Principal Balance (1) 5.00% Senior Notes, Series I 2025 5.00% $ 1,650 $ (1,650) $ — 5.00% Senior Notes, Series II 2025 5.00% 550 (541) 9 7.875% Senior Notes 2025 7.875% 669 (505) 164 Secured Notes (2) 2025 7.500% 250 (250) — New First Lien Notes (3) 2027 15.00% — 525 525 New Second Lien Notes (3) 2027 11.00% — 687 687 New Third Lien Notes (3) 2027 12.00% — 23 23 New Second Lien Exchangeable Notes (3) 2027 11.00% — 188 188 New Third Lien Exchangeable Notes (3) 2027 12.00% — 270 270 Junior LC Tranche 2025 14.628% 470 — 470 Other Loans 2023 - 2026 3.3% - 20.6% 27 — 27 Total debt outstanding principal balance (1) $ 3,616 $ (1,253) $ 2,363 (1) Excludes deferred financing costs and other discounts or premiums. (2) Does not reflect $50 million of additional Secured Notes issued in April 2023 and repaid in May 2023 in connection with the consummation of the Transactions. |
Organization and Business (Deta
Organization and Business (Details) | Mar. 31, 2023 location |
Noncontrolling Interest [Line Items] | |
Number of locations | 781 |
Number of consolidated locations | 617 |
WeWork Companies LLC | WeWork Partnership | |
Noncontrolling Interest [Line Items] | |
Controlling interest ownership | 100% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
May 05, 2023 USD ($) $ / shares shares | Mar. 31, 2023 USD ($) segment | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Apr. 30, 2023 USD ($) | Nov. 30, 2022 | Oct. 31, 2021 USD ($) | Mar. 31, 2021 USD ($) | Jul. 10, 2020 USD ($) | Oct. 31, 2019 USD ($) | Apr. 30, 2018 USD ($) | |
Accounting Policies [Line Items] | ||||||||||||||
Number of operating segments | segment | 1 | |||||||||||||
Net losses | $ 264 | $ 435 | $ 2,300 | $ 4,600 | $ 3,800 | |||||||||
Negative cash flow from operating activities | 284 | 338 | 700 | 1,900 | 900 | |||||||||
Cash and cash equivalents | 224 | 519 | 287 | |||||||||||
Net loss from operations | $ 204 | 358 | $ 1,600 | $ 4,300 | ||||||||||
Improvement in net loss from operations, percentage | 43% | |||||||||||||
Net loss from operations as a percentage of revenue | (24.00%) | (49.00%) | (127.00%) | |||||||||||
Income tax benefit | $ 3 | $ 1 | ||||||||||||
Effective tax rate | (0.99%) | (0.20%) | ||||||||||||
Net deferred income tax assets | $ 9 | $ 2 | ||||||||||||
Consolidated VIEs | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Cash and cash equivalents | $ 43 | |||||||||||||
Subsequent Event | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Increase in net liquidity | $ 515 | |||||||||||||
Repayment, cancellation or conversion of debt | 1,500 | |||||||||||||
Subsequent Event | Class A common stock | Private Placement | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Gross proceeds | $ 40 | |||||||||||||
Stock sold (in shares) | shares | 35 | |||||||||||||
Stock sold, stock price (in usd per share) | $ / shares | $ 1.15 | |||||||||||||
Senior unsecured notes | Affiliated Entity | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Aggregate principal amount | $ 2,200 | $ 2,200 | ||||||||||||
Interest rate | 5% | 5% | ||||||||||||
Senior Notes | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Aggregate principal amount | $ 702 | |||||||||||||
Repayment of debt | $ 33 | |||||||||||||
Interest rate | 7.875% | |||||||||||||
Senior Notes | First Lien Senior Secured PIK Notes Series I | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Interest rate | 15% | |||||||||||||
Senior Notes | Subsequent Event | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Repayment, cancellation or conversion of debt | $ 505 | |||||||||||||
Repayment of debt | 250 | |||||||||||||
Senior Notes | Subsequent Event | New First Lien Notes | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Aggregate principal amount | 975 | |||||||||||||
Senior Notes | Subsequent Event | First Lien Senior Secured PIK Notes Series I | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Aggregate principal amount | $ 500 | |||||||||||||
Interest rate | 15% | |||||||||||||
Senior Notes | Subsequent Event | First Lien Senior Secured PIK Notes Due 2027, Series III | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Aggregate principal amount | $ 175 | |||||||||||||
Interest rate | 15% | |||||||||||||
Senior Notes | Subsequent Event | First Lien Senior Secured PIK Notes Due 2027, Series II | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Aggregate principal amount | $ 300 | |||||||||||||
Interest rate | 15% | |||||||||||||
Senior Notes | Affiliated Entity | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Remaining availability | $ 250 | |||||||||||||
Aggregate principal amount | $ 250 | $ 500 | $ 550 | $ 550 | ||||||||||
Interest rate | 11% | 7.50% | 7.50% | |||||||||||
Senior Notes | Affiliated Entity | Subsequent Event | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Remaining availability | $ 200 | |||||||||||||
Aggregate principal amount | $ 50 | |||||||||||||
Repayment, cancellation or conversion of debt | $ 500 | |||||||||||||
Repayment of debt | $ 300 |
Supplemental Disclosure of Ca_3
Supplemental Disclosure of Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Supplemental Cash Flow Disclosures: | |||
Capitalized interest | $ 0 | $ 0 | |
Cash paid during the period for interest (net of capitalized interest of none during 2023 and 2022) | 69,000 | 46,000 | |
Cash received for operating lease incentives — tenant improvement allowances | 27,000 | 43,000 | |
Other non-cash operating expenses: | |||
Provision for allowance for doubtful accounts | 2,000 | (1,000) | $ 4,000 |
(Income) loss from equity method and other investments | 2,000 | (6,000) | |
Change in fair value of financial instruments | 0 | (3,000) | |
Other non-cash operating expenses | 4,000 | (10,000) | |
Other investing: | |||
Change in security deposits with landlords | 0 | (1,000) | |
Contributions to investments | 0 | (5,000) | |
Distributions from investments | 0 | 1,000 | |
Cash used for acquisitions, net of cash acquired | 0 | (9,000) | |
Deconsolidation of cash of ChinaCo, net of cash received | (2,000) | 0 | |
Other investing | (2,000) | (14,000) | |
Other financing: | |||
Principal payments for property and equipment acquired under finance leases | (2,000) | (1,000) | |
Debt and equity issuance costs | (9,000) | 0 | |
Proceeds from exercise of stock options and warrants | 1,000 | 0 | |
Taxes paid on withholding shares | (1,000) | 0 | |
Payments for contingent consideration and holdback of acquisition proceeds | (1,000) | 0 | |
Other financing | (12,000) | (1,000) | |
Supplemental Disclosure of Non-cash Investing & Financing Activities: | |||
Property and equipment included in accounts payable and accrued expenses | 52,000 | 101,000 | |
Transfer of assets to held for sale, net | 112,000 | 43,000 | |
Transfer of liabilities related to assets held for sale, net | 101,000 | 0 | |
Additional ASC 842 Supplemental Disclosures | |||
Cash paid for fixed operating lease costs included in the measurement of lease obligations in operating activities | 540,000 | 541,000 | |
Cash paid for interest relating to finance leases in operating activities | 1,000 | 1,000 | |
Cash paid for principal relating to finance leases in financing activities | 2,000 | 1,000 | |
Right-of-use assets obtained in exchange for operating lease obligations, net of modifications and terminations | $ (883,000) | $ (352,000) |
Restructuring, Impairments an_3
Restructuring, Impairments and Gains on Sale - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 USD ($) lease | Mar. 31, 2023 USD ($) lease location | Mar. 31, 2022 USD ($) location | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Leases terminated, open locations | location | 24 | 13 | |||
Leases terminated, business disposals | location | 3 | ||||
Leases terminated, pre-open locations | location | 0 | 2 | |||
Leases terminated, cumulative | lease | 276 | 276 | |||
Leases amended, cumulative | lease | 540 | 540 | |||
Leases amended, reduction in future undiscounted fixed minimum lease cost payments, cumulative | $ 11,600,000 | $ 11,600,000 | |||
Deconsolidation, decrease in future undiscounted fixed minimum lease cost payments | 21,000 | ||||
Leases amended | lease | 40 | ||||
Leases amended, reduction in future undiscounted fixed minimum lease cost payments | $ 900,000 | ||||
Restructuring and other related (gains) costs | (58,000) | $ (130,000) | $ (200,000) | ||
Restructuring liabilities | 112,000 | 112,000 | 53,000 | $ 79,000 | |
Receivables from landlords | 2,000 | 2,000 | 3,000 | ||
Impairment expense, other | 15,000 | 35,000 | |||
Non-routine gains and impairment charges | 77,000 | $ 91,000 | |||
Accounts payable and accrued expenses | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring liabilities | 92,000 | 92,000 | 47,000 | ||
Other liabilities, net | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring liabilities | $ 22,000 | $ 22,000 | $ 9,000 |
Restructuring, Impairments an_4
Restructuring, Impairments and Gains on Sale - Detail of Restructuring and Other Related Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | |||
Employee terminations | $ 7 | $ 2 | |
Ceased use buildings | 31 | 16 | |
Gains on lease terminations, net | (107) | (154) | |
Other, net | 11 | 6 | |
Total | (58) | (130) | $ (200) |
Restructuring and other related (gains) costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Gains on lease terminations, net | $ (107) | $ (154) |
Restructuring, Impairments an_5
Restructuring, Impairments and Gains on Sale - Restructuring Liability (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring liability balance | $ 53 | $ 79 | $ 79 |
Restructuring and other related (gains) costs expensed during the period | (58) | (130) | (200) |
Cash payments of restructuring liabilities, net | (48) | (213) | |
Non-cash impact — primarily asset and liability write-offs and stock-based compensation | 165 | 387 | |
Restructuring liability balance | 112 | 53 | |
Cash payments received from landlord for terminated leases | 0 | $ 22 | |
Leases termination fees | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring liability, current | 56 | 25 | |
Restructuring liability, noncurrent | $ 22 | $ 9 |
Restructuring, Impairments an_6
Restructuring, Impairments and Gains on Sale - Gains and Impairment Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | ||
Impairment and write-off of long-lived assets associated with restructuring | $ 71,000 | $ 56,000 |
Impairment expense, other | 15,000 | 35,000 |
Impairment of assets held for sale | 3,000 | 0 |
Gain on sale of assets | (12,000) | 0 |
Total | $ 77,000 | $ 91,000 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2022 USD ($) location shares | Mar. 31, 2023 USD ($) shares | Mar. 31, 2022 USD ($) shares | |
Business Acquisition [Line Items] | |||
Transaction costs | $ 0 | $ 40 | |
Class A common stock | Common Stock | |||
Business Acquisition [Line Items] | |||
Issuance of common stock in connection with Acquisition (in shares) | shares | 155,586 | 489,071 | |
Common Desk | |||
Business Acquisition [Line Items] | |||
Percentage of equity acquired | 100% | 100% | |
Total consideration | $ 21,000 | ||
Number of locations acquired | location | 23 | ||
Cash consideration | $ 10,000 | ||
Contingent consideration payable, liability | 3,000 | $ 3,000 | |
Gain (loss) on contingent consideration | $ 0 | (1,000) | |
Common Desk | Contingent Consideration, Cash Payout | |||
Business Acquisition [Line Items] | |||
Gain (loss) on contingent consideration | (1,000) | ||
Common Desk | Contingent Consideration, Equity Payout | |||
Business Acquisition [Line Items] | |||
Gain (loss) on contingent consideration | $ 100 | ||
Equity consideration, shares released (in shares) | shares | 155,586 | ||
Common Desk | Other liabilities, net | |||
Business Acquisition [Line Items] | |||
Consideration payable | $ 0 | ||
Common Desk | Class A common stock | |||
Business Acquisition [Line Items] | |||
Equity consideration | $ 3,000 | ||
Contingent consideration payable, equity (in shares) | shares | 760,969 | ||
Contingent consideration payable, fair value of equity | $ 5,000 | $ 5,000 | |
Contingent consideration payable, equity | $ 1,000 |
Acquisitions - Allocation of Ac
Acquisitions - Allocation of Acquisition Consideration (Details) - Common Desk $ in Millions | Mar. 31, 2022 USD ($) |
Business Acquisition [Line Items] | |
Cash and cash equivalents | $ 1 |
Property and equipment | 2 |
Goodwill | 10 |
Finite-lived intangible assets | 12 |
Lease right-of-use assets, net | 2 |
Deferred tax liability | (4) |
Lease obligation, net | (2) |
Total consideration | $ 21 |
Prepaid Expenses (Details)
Prepaid Expenses (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Prepaid member referral fees and deferred sales incentive compensation (Note 14) | $ 51 | $ 55 | |
Prepaid lease costs | 30 | 32 | |
Prepaid income taxes | 28 | 31 | |
Prepaid software | 21 | 13 | |
Other prepaid expenses | 9 | 7 | |
Total prepaid expenses | [1] | $ 139 | $ 138 |
[1]See Note 19 for disclosure of related party amounts. |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||
Assets held for sale (includes $7 cash) | $ 164 | $ 52 | ||
Restricted cash | 71 | 0 | $ 0 | |
Deposits held by landlords | 38 | 13 | ||
Net receivable for value added tax (“VAT”) | 30 | 40 | ||
Straight-line revenue receivable | 22 | 24 | ||
Other current assets | 43 | 26 | ||
Total other current assets | [1] | 368 | 155 | |
Cash and cash equivalents held for sale (Note 7) | 7 | $ 7 | $ 0 | |
Gain on disposal of business | 12 | |||
Gain on disposal of business, cumulative translation adjustment | $ 4 | |||
[1]See Note 19 for disclosure of related party amounts. |
Consolidated VIEs and Noncont_3
Consolidated VIEs and Noncontrolling Interests - Balance Sheets (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | |
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | $ 224 | $ 287 | $ 519 | |
Property and equipment, net | 4,193 | 4,391 | ||
Total assets | 16,949 | 17,863 | ||
Long-term debt, net | [1] | 3,576 | 3,208 | |
Total liabilities | 20,735 | 21,318 | ||
Consolidated VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 43 | |||
Consolidated VIEs | SBG JVs | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 36 | 55 | ||
Property and equipment, net | 469 | 498 | ||
Restricted cash | 3 | 3 | ||
Total assets | 2,241 | 2,299 | ||
Long-term debt, net | 5 | 3 | ||
Total liabilities | 2,146 | 2,176 | ||
Redeemable stock issued by VIEs | 80 | 80 | ||
Total net assets | 15 | 43 | ||
Preferred stock liquidation preference | 500 | 500 | ||
Consolidated VIEs | Other VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 7 | 6 | ||
Property and equipment, net | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Total assets | 11 | 10 | ||
Long-term debt, net | 0 | 0 | ||
Total liabilities | 1 | 3 | ||
Redeemable stock issued by VIEs | 0 | 0 | ||
Total net assets | $ 10 | $ 7 | ||
[1]See Note 19 for disclosure of related party amounts. |
Consolidated VIEs and Noncont_4
Consolidated VIEs and Noncontrolling Interests - Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | ||
Variable Interest Entity [Line Items] | ||||
Total revenue | [1] | $ 849 | $ 765 | |
Net income (loss) | (299) | (504) | ||
Consolidated VIEs | SBG JVs | ||||
Variable Interest Entity [Line Items] | ||||
Total revenue | 119 | 98 | ||
Net income (loss) | (29) | (71) | ||
Preferred stock liquidation preference | 500 | $ 500 | ||
Consolidated VIEs | Other VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Total revenue | 2 | 3 | ||
Net income (loss) | $ (1) | $ 0 | ||
[1]See Note 19 for disclosure of related party amounts. |
Consolidated VIEs and Noncont_5
Consolidated VIEs and Noncontrolling Interests - Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | |||||
Net cash provided by (used in) operating activities | $ (284) | $ (338) | $ (700) | $ (1,900) | $ (900) |
Net cash used in investing activities | (61) | (88) | |||
Net cash provided by (used in) financing activities | 353 | 22 | |||
Consolidated VIEs | SBG JVs | |||||
Variable Interest Entity [Line Items] | |||||
Net cash provided by (used in) operating activities | (23) | (40) | |||
Net cash used in investing activities | (5) | (7) | |||
Net cash provided by (used in) financing activities | 8 | 6 | |||
Consolidated VIEs | Other VIEs | |||||
Variable Interest Entity [Line Items] | |||||
Net cash provided by (used in) operating activities | (4) | (1) | |||
Net cash used in investing activities | 0 | 0 | |||
Net cash provided by (used in) financing activities | $ 4 | $ 1 |
Consolidated VIEs and Noncont_6
Consolidated VIEs and Noncontrolling Interests - WeWork Partnership (Details) - Chief Executive Officer - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Oct. 21, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Variable Interest Entity [Line Items] | ||||
Conversion to common stock (in shares) | 19,896,032 | |||
Distribution threshold (in usd per share) | $ 10.38 | |||
Catch-up base amount (in usd per share) | $ 0 | |||
Conversion to common stock | $ 234 | |||
Net loss allocated to shareholder | $ 7 | $ 11 | ||
WeWork Partnership | ||||
Variable Interest Entity [Line Items] | ||||
Noncontrolling interest ownership | 2.71% | 2.73% |
Consolidated VIEs and Noncont_7
Consolidated VIEs and Noncontrolling Interests - JapanCo (Details) - USD ($) $ in Millions | 1 Months Ended | 72 Months Ended | |
Apr. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | |||
Payments to noncontrolling interests | $ 31 | ||
JapanCo | |||
Variable Interest Entity [Line Items] | |||
Noncontrolling interest ownership | 50% | ||
Affiliate of SBG | JapanCo | |||
Variable Interest Entity [Line Items] | |||
Payments to noncontrolling interests | $ 500 |
Consolidated VIEs and Noncont_8
Consolidated VIEs and Noncontrolling Interests - LatamCo (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Dec. 31, 2021 | Apr. 30, 2022 | Feb. 28, 2022 | Sep. 30, 2021 | Aug. 31, 2026 | Mar. 31, 2023 | Dec. 31, 2022 | |
Variable Interest Entity [Line Items] | |||||||
Payments to noncontrolling interests | $ 31 | ||||||
LatamCo | |||||||
Variable Interest Entity [Line Items] | |||||||
Obligation for cost of termination of certain leases within first 12 months of agreement | $ 27 | ||||||
Termination costs, cumulative | $ 13 | ||||||
Liability for monthly reimbursements | $ 30 | ||||||
Percentage interest in business transferred | 100% | ||||||
Joint venture, reimbursement payable waived | $ 7 | ||||||
Forecast | LatamCo | |||||||
Variable Interest Entity [Line Items] | |||||||
Proceeds from exercise of call options | $ 60 | ||||||
Commitment To Fund | |||||||
Variable Interest Entity [Line Items] | |||||||
Commitment | $ 18 | ||||||
Commitment To Fund | LatamCo | |||||||
Variable Interest Entity [Line Items] | |||||||
Commitment | 13 | ||||||
Affiliate of SBG | LatamCo | |||||||
Variable Interest Entity [Line Items] | |||||||
Payments to noncontrolling interests | $ 80 | $ 80 | |||||
LatamCo | Affiliate of SBG | |||||||
Variable Interest Entity [Line Items] | |||||||
Controlling interest ownership | 71% | ||||||
Voting percentage | 49.90% |
Consolidated VIEs and Noncont_9
Consolidated VIEs and Noncontrolling Interests - WeCap Manager and WeCap Holdings Partnership (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
WeCap Manager | ||
Variable Interest Entity [Line Items] | ||
Management fee income | $ 2 | $ 3 |
WeCap Manager | ||
Variable Interest Entity [Line Items] | ||
Noncontrolling interest ownership | 20% | |
WeCap Investment Group | Minimum | ||
Variable Interest Entity [Line Items] | ||
Controlling interest ownership | 50% | |
WeCap Investment Group | Maximum | ||
Variable Interest Entity [Line Items] | ||
Controlling interest ownership | 85% |
Equity Method and Other Inves_3
Equity Method and Other Investments - Investments (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |||||||||
Feb. 28, 2022 | Jan. 31, 2022 | Apr. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Sep. 29, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Oct. 31, 2020 | |
Schedule Of Equity Method And Other Investments [Line Items] | |||||||||||
Total equity method and other investments, carrying value | $ 60 | $ 63 | |||||||||
Total equity method and other investments, cost basis | 181 | ||||||||||
IndiaCo | |||||||||||
Schedule Of Equity Method And Other Investments [Line Items] | |||||||||||
Management fee income | 2 | $ 2 | |||||||||
IndiaCo | |||||||||||
Schedule Of Equity Method And Other Investments [Line Items] | |||||||||||
Equity method investment, carrying value | 30 | $ 29 | |||||||||
Equity method investment, cost basis | 105 | ||||||||||
Ownership percentage | 27.50% | ||||||||||
Credit loss | 0 | 1 | |||||||||
Unrealized gain (loss) on available-for-sale securities | 0 | $ 2 | |||||||||
Guaranty, shares pledged (in shares) | 8,467,347 | ||||||||||
Guaranty, shares pledged, percentage | 14.70% | ||||||||||
Guarantees | $ 0.3 | $ 0.4 | |||||||||
IndiaCo | 2020 Debentures | |||||||||||
Schedule Of Equity Method And Other Investments [Line Items] | |||||||||||
Convertible notes receivable | $ 100 | ||||||||||
Payments for notes receivable | $ 15 | $ 85 | |||||||||
Notes receivable, term | 10 years | ||||||||||
Notes receivable, conversion period | 18 months | ||||||||||
Conversion of notes receivable to investment (in shares) | 12,397,510 | ||||||||||
IndiaCo | Other Convertible Debentures | |||||||||||
Schedule Of Equity Method And Other Investments [Line Items] | |||||||||||
Conversion of notes receivable to investment (in shares) | 3,375,000 | ||||||||||
IndiaCo | Interest Rate Period One | 2020 Debentures | |||||||||||
Schedule Of Equity Method And Other Investments [Line Items] | |||||||||||
Note receivable interest rate | 12.50% | ||||||||||
Notes receivable, interest payment period | 18 months | ||||||||||
IndiaCo | Interest Rate Period Two | 2020 Debentures | |||||||||||
Schedule Of Equity Method And Other Investments [Line Items] | |||||||||||
Note receivable interest rate | 0.001% | ||||||||||
WPI Fund | |||||||||||
Schedule Of Equity Method And Other Investments [Line Items] | |||||||||||
Equity method investment, carrying value | $ 21 | 25 | |||||||||
Equity method investment, cost basis | $ 36 | ||||||||||
Ownership percentage | 8% | ||||||||||
WPI Fund | WeCap Holdings Partnership | General partner | |||||||||||
Schedule Of Equity Method And Other Investments [Line Items] | |||||||||||
Ownership percentage | 0.50% | ||||||||||
WPI Fund | Wholly Owned Subsidiary of WeCap Investment Group | Limited partner | |||||||||||
Schedule Of Equity Method And Other Investments [Line Items] | |||||||||||
Ownership percentage | 8% | ||||||||||
Investments held by WeCap Holdings Partnership | |||||||||||
Schedule Of Equity Method And Other Investments [Line Items] | |||||||||||
Equity method investment, carrying value | $ 4 | 4 | |||||||||
Equity method investment, cost basis | 5 | ||||||||||
ChinaCo | |||||||||||
Schedule Of Equity Method And Other Investments [Line Items] | |||||||||||
Equity method investment, carrying value | 0 | 0 | $ 0 | $ 29 | $ 26 | ||||||
Equity method investment, cost basis | $ 29 | ||||||||||
Ownership percentage | 19.70% | 19.70% | 21.60% | ||||||||
Other | |||||||||||
Schedule Of Equity Method And Other Investments [Line Items] | |||||||||||
Various, carrying value | $ 5 | $ 5 | |||||||||
Various, cost basis | $ 6 | ||||||||||
ARK Master Fund | WeCap Holdings Partnership | General and Limited Partner | |||||||||||
Schedule Of Equity Method And Other Investments [Line Items] | |||||||||||
Ownership percentage | 2% | ||||||||||
Upflex | |||||||||||
Schedule Of Equity Method And Other Investments [Line Items] | |||||||||||
Purchase price of investment | $ 5 | ||||||||||
Other investment ownership percentage | 5.38% |
Equity Method and Other Inves_4
Equity Method and Other Investments - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Schedule Of Equity Method And Other Investments [Line Items] | |||
Credit loss valuation allowance for available-for-sale debt securities | $ 0 | $ 0 | |
Unrealized gain (loss) on available-for-sale debt securities | 0 | $ 0 | |
IndiaCo | |||
Schedule Of Equity Method And Other Investments [Line Items] | |||
Guarantees | 0.3 | $ 0.4 | |
Guaranty, shares pledged (in shares) | 8,467,347 | ||
ChinaCo | Affiliated Entity | |||
Schedule Of Equity Method And Other Investments [Line Items] | |||
Guarantees | 3 | ||
Commitment To Fund | |||
Schedule Of Equity Method And Other Investments [Line Items] | |||
Commitment | $ 18 |
Equity Method and Other Inves_5
Equity Method and Other Investments - Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Investments, All Other Investments [Abstract] | ||
Income (loss) from equity method investments | $ (2) | $ 6 |
Equity Method and Other Inves_6
Equity Method and Other Investments - Contributions and Distributions (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Investments, All Other Investments [Abstract] | ||
Contributions to investments | $ 0 | $ 5 |
Distributions received from investments | $ 0 | $ 1 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | |
Debt Instrument [Line Items] | ||||
Deferred financing costs, net | $ 405 | $ 407 | ||
Security deposits with landlords | 207 | 210 | ||
Restricted cash | 4 | 5 | $ 11 | |
Long-term receivable for value added tax | 44 | 55 | ||
Straight-line revenue receivable | 33 | 36 | ||
Other long-term prepaid expenses and other assets | 30 | 27 | ||
Total other assets | [1] | 723 | 740 | |
Deferred financing costs, accumulated amortization | 623 | 581 | ||
SoftBank Senior Unsecured Notes Warrant | ||||
Debt Instrument [Line Items] | ||||
Deferred financing costs, net | 248 | 275 | ||
2020 LC Facility | ||||
Debt Instrument [Line Items] | ||||
Deferred financing costs, net | 66 | 74 | ||
SoftBank Other Debt Payable To SBG | ||||
Debt Instrument [Line Items] | ||||
Deferred financing costs, net | 31 | 35 | ||
SoftBank Other Debt Payable To Third Parties | ||||
Debt Instrument [Line Items] | ||||
Deferred financing costs, net | 22 | 23 | ||
Other paid or payable to third parties | ||||
Debt Instrument [Line Items] | ||||
Deferred financing costs, net | $ 38 | $ 0 | ||
[1]See Note 19 for disclosure of related party amounts. |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |||
Liabilities held for sale (See Note 7) | $ 184 | $ 83 | |
Refunds payable to former members | 57 | 45 | |
Current portion of long-term debt (See Note 12) | 22 | 22 | |
Other current liabilities | 32 | 22 | |
Total other current liabilities | [1] | $ 295 | $ 172 |
[1]See Note 19 for disclosure of related party amounts. |
Long-Term Debt, Net, SoftBank_3
Long-Term Debt, Net, SoftBank Debt Financing and Interest Expense (Details) - USD ($) $ in Thousands | 1 Months Ended | |||||||||
May 10, 2022 | Feb. 28, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Nov. 30, 2022 | Oct. 31, 2021 | Mar. 31, 2021 | Aug. 31, 2020 | Oct. 31, 2019 | ||
Debt Instrument [Line Items] | ||||||||||
Outstanding principal balance | $ 3,616,000 | |||||||||
Less: current portion | (22,000) | $ (22,000) | ||||||||
Long-term debt, net | [1] | 3,576,000 | 3,208,000 | |||||||
Senior unsecured notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Outstanding principal balance | $ 2,200,000 | |||||||||
Senior unsecured notes | Affiliated Entity | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 5% | 5% | ||||||||
Outstanding principal balance | $ 2,200,000 | 2,200,000 | ||||||||
Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 7.875% | |||||||||
Outstanding principal balance | $ 669,000 | 669,000 | ||||||||
Less: unamortized debt issuance costs | (6,000) | (7,000) | ||||||||
Long-term debt, net | $ 663,000 | 662,000 | ||||||||
Senior Notes | Affiliated Entity | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 11% | 7.50% | 7.50% | |||||||
Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 14.628% | |||||||||
Outstanding principal balance | $ 470,000 | 350,000 | ||||||||
Less: unamortized debt issuance costs | (12,000) | (7,000) | ||||||||
Long-term debt, net | $ 458,000 | 343,000 | ||||||||
Line of Credit | Junior Letter of Credit Tranche | 2020 Credit Facility | SOFR rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Floor interest rate | 0.75% | |||||||||
Basis spread on variable interest rate | 6.50% | 9.90% | ||||||||
Secured Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 7.50% | |||||||||
Outstanding principal balance | $ 250,000 | 0 | ||||||||
Secured Notes | Affiliated Entity | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 12.50% | |||||||||
Other Loans | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Outstanding principal balance | 27,000 | 25,000 | ||||||||
Less: current portion | (22,000) | (22,000) | ||||||||
Long-term debt, net | $ 5,000 | $ 3,000 | ||||||||
Other Loans | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 3.30% | 20.60% | ||||||||
Other Loans | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 20.60% | |||||||||
[1]See Note 19 for disclosure of related party amounts. |
Long-Term Debt, Net, SoftBank_4
Long-Term Debt, Net, SoftBank Debt Financing and Interest Expense - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 48 Months Ended | |||||||||||||||||||
Jan. 10, 2024 | May 05, 2023 | Feb. 28, 2022 | Apr. 30, 2018 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2019 | Dec. 31, 2025 | Feb. 12, 2024 | Apr. 30, 2023 | Feb. 28, 2023 | Feb. 10, 2023 | Nov. 30, 2022 | May 31, 2022 | Dec. 31, 2021 | Dec. 16, 2021 | Oct. 31, 2021 | Mar. 31, 2021 | Aug. 31, 2020 | Jul. 10, 2020 | Dec. 27, 2019 | Oct. 31, 2019 | |
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt issuance costs | $ 14,000,000 | ||||||||||||||||||||||
Outstanding principal balance | $ 3,616,000,000 | ||||||||||||||||||||||
Loss on extinguishment of debt | 10,000,000 | $ 0 | |||||||||||||||||||||
Warrants | 1,000,000 | $ 1,000,000 | |||||||||||||||||||||
Fees reimbursed, cumulative | $ 35,000,000 | ||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Outstanding principal balance | $ 2,363,000,000 | ||||||||||||||||||||||
LatamCo | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Joint venture, reimbursement payable waived | $ 7,000,000 | ||||||||||||||||||||||
LC Warrant | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Shares to be issued upon exercise of warrants (in shares) | 11,923,567 | ||||||||||||||||||||||
Warrants, exercise price (in usd per share) | $ 0.01 | ||||||||||||||||||||||
Warrants | $ 102,000,000 | ||||||||||||||||||||||
Affiliated Entity | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt issuance costs | 22,000,000 | 23,000,000 | |||||||||||||||||||||
Fee reimbursement liability, maximum | $ 50,000,000 | ||||||||||||||||||||||
Fee reimbursement liability | $ 8,000,000 | 8,000,000 | |||||||||||||||||||||
Deferred financing costs, net | 20,000,000 | ||||||||||||||||||||||
Affiliated Entity | Letter of Credit | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt issuance costs | $ 284,000,000 | ||||||||||||||||||||||
Warrants, exercise price (in usd per share) | $ 0.01 | ||||||||||||||||||||||
Availability | $ 1,750,000,000 | ||||||||||||||||||||||
Affiliated Entity | SoftBank Unsecured Notes Warrants | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Shares to be issued upon exercise of warrants (in shares) | 71,541,399 | ||||||||||||||||||||||
Warrants, exercise price (in usd per share) | $ 0.01 | ||||||||||||||||||||||
Affiliated Entity | 2020 LC Facility Warrant | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Shares to be issued upon exercise of warrants (in shares) | 35,770,699 | ||||||||||||||||||||||
Minimum | Affiliated Entity | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt issuance costs, amortization period | 3 years | ||||||||||||||||||||||
Maximum | Affiliated Entity | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt issuance costs, amortization period | 5 years | ||||||||||||||||||||||
Secured Notes | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Interest rate | 7.50% | ||||||||||||||||||||||
Outstanding principal balance | $ 250,000,000 | 0 | |||||||||||||||||||||
Secured Notes | Subsequent Event | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Outstanding principal balance | 0 | ||||||||||||||||||||||
Secured Notes | Affiliated Entity | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Interest rate | 12.50% | ||||||||||||||||||||||
Aggregate principal amount | $ 1,100,000,000 | $ 1,100,000,000 | |||||||||||||||||||||
Senior unsecured notes | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Outstanding principal balance | $ 2,200,000,000 | ||||||||||||||||||||||
Senior unsecured notes | Affiliated Entity | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Interest rate | 5% | 5% | |||||||||||||||||||||
Aggregate principal amount | $ 2,200,000,000 | $ 2,200,000,000 | |||||||||||||||||||||
Debt issuance costs | $ 569,000,000 | ||||||||||||||||||||||
Outstanding principal balance | $ 2,200,000,000 | 2,200,000,000 | |||||||||||||||||||||
Implied interest rate | 11.69% | ||||||||||||||||||||||
Term | 5 years | ||||||||||||||||||||||
Senior unsecured notes | Affiliated Entity | Subsequent Event | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt | 9,000,000 | ||||||||||||||||||||||
Senior unsecured notes | Affiliated Entity | Debt Instrument Tranche One | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Interest rate | 5% | ||||||||||||||||||||||
Aggregate principal amount | $ 550,000,000 | ||||||||||||||||||||||
Senior unsecured notes | Affiliated Entity | Debt Instrument Tranche Two | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Interest rate | 5% | ||||||||||||||||||||||
Aggregate principal amount | $ 1,650,000,000 | ||||||||||||||||||||||
Senior Notes | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Interest rate | 7.875% | ||||||||||||||||||||||
Aggregate principal amount | $ 702,000,000 | ||||||||||||||||||||||
Debt issuance costs | $ 17,000,000 | ||||||||||||||||||||||
Repayment of debt | $ 33,000,000 | ||||||||||||||||||||||
Redemption price percentage | 100% | ||||||||||||||||||||||
Redemption price percentage, change of control triggering events | 101% | ||||||||||||||||||||||
Outstanding principal balance | $ 669,000,000 | 669,000,000 | |||||||||||||||||||||
Senior Notes | Subsequent Event | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Repayment of debt | 250,000,000 | ||||||||||||||||||||||
Outstanding principal balance | 164,000,000 | ||||||||||||||||||||||
Long-term debt | 164,000,000 | ||||||||||||||||||||||
Senior Notes | Affiliated Entity | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Interest rate | 11% | 7.50% | 7.50% | ||||||||||||||||||||
Aggregate principal amount | 250,000,000 | $ 500,000,000 | $ 550,000,000 | $ 550,000,000 | |||||||||||||||||||
Maximum amount outstanding | $ 500,000,000 | ||||||||||||||||||||||
Long-term debt | 250,000,000 | 0 | |||||||||||||||||||||
Remaining availability | 250,000,000 | ||||||||||||||||||||||
Senior Notes | Affiliated Entity | Subsequent Event | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Aggregate principal amount | $ 50,000,000 | ||||||||||||||||||||||
Repayment of debt | 300,000,000 | ||||||||||||||||||||||
Remaining availability | $ 200,000,000 | ||||||||||||||||||||||
Senior Notes | Affiliated Entity | Debt Instrument Issuance Period One | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Remaining availability | 50,000,000 | ||||||||||||||||||||||
Senior Notes | Affiliated Entity | Debt Instrument Issuance Period Two | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Remaining availability | 75,000,000 | ||||||||||||||||||||||
Senior Notes | Affiliated Entity | Debt Instrument Issuance Period Three | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Remaining availability | 75,000,000 | ||||||||||||||||||||||
Senior Notes | Affiliated Entity | Debt Instrument Issuance Period Four | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Remaining availability | $ 50,000,000 | ||||||||||||||||||||||
Senior Notes | Forecast | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Minimum Growth-Adjusted EBITDA | $ 2,000,000,000 | ||||||||||||||||||||||
Senior Notes | Forecast | Affiliated Entity | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Maximum amount outstanding | $ 446,000,000 | ||||||||||||||||||||||
Commitment fee | $ 10,000,000 | ||||||||||||||||||||||
Line of Credit | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Interest rate | 14.628% | ||||||||||||||||||||||
Outstanding principal balance | $ 470,000,000 | 350,000,000 | |||||||||||||||||||||
Line of Credit | Subsequent Event | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Outstanding principal balance | 470,000,000 | ||||||||||||||||||||||
Line of Credit | Senior Letter of Credit Tranche | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Availability | $ 930,000,000 | ||||||||||||||||||||||
Line of Credit | 2020 Credit Facility | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Availability | 1,100,000,000 | $ 1,750,000,000 | |||||||||||||||||||||
Implied interest rate | 12.47% | ||||||||||||||||||||||
Line of Credit | 2020 Credit Facility | Senior Letter of Credit Tranche | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Availability | $ 960,000,000 | $ 1,050,000,000 | 1,250,000,000 | ||||||||||||||||||||
Line of Credit | 2020 Credit Facility | Junior Letter of Credit Tranche | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Loss on extinguishment of debt | $ 10,000,000 | ||||||||||||||||||||||
Availability | $ 470,000,000 | $ 350,000,000 | |||||||||||||||||||||
Other Loans | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Repayment of debt | 1,000,000 | 6,000,000 | |||||||||||||||||||||
Outstanding principal balance | 27,000,000 | $ 25,000,000 | |||||||||||||||||||||
Loss on extinguishment of debt | $ 0 | $ 0 | |||||||||||||||||||||
Other Loans | Subsequent Event | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Outstanding principal balance | $ 27,000,000 | ||||||||||||||||||||||
Other Loans | Minimum | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Interest rate | 3.30% | 20.60% | |||||||||||||||||||||
Other Loans | Maximum | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Interest rate | 20.60% |
Long-Term Debt, Net, SoftBank_5
Long-Term Debt, Net, SoftBank Debt Financing and Interest Expense - Principal Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Oct. 31, 2019 |
Debt Instrument [Line Items] | |||
Total minimum payments | $ 3,616,000 | ||
Long-term debt | |||
Debt Instrument [Line Items] | |||
Remainder of 2023 | 16,000 | ||
2024 | 9,000 | ||
2025 | 1,390,000 | ||
2026 | 1,000 | ||
2027 | 0 | ||
2028 and beyond | 0 | ||
Total minimum payments | 1,416,000 | ||
Unsecured notes payable | |||
Debt Instrument [Line Items] | |||
Remainder of 2023 | 0 | ||
2024 | 0 | ||
2025 | 2,200,000 | ||
2026 | 0 | ||
2027 | 0 | ||
2028 and beyond | 0 | ||
Total minimum payments | $ 2,200,000 | ||
Unsecured notes payable | Affiliated Entity | |||
Debt Instrument [Line Items] | |||
Interest rate | 5% | 5% | |
Total minimum payments | $ 2,200,000 | $ 2,200,000 | |
Total Long-Term Debt and SoftBank Debt Financing | |||
Debt Instrument [Line Items] | |||
Remainder of 2023 | 16,000 | ||
2024 | 9,000 | ||
2025 | 3,590,000 | ||
2026 | 1,000 | ||
2027 | 0 | ||
2028 and beyond | 0 | ||
Total minimum payments | $ 3,616,000 |
Long-Term Debt, Net, SoftBank_6
Long-Term Debt, Net, SoftBank Debt Financing and Interest Expense - Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |||||||
Mar. 31, 2023 | Mar. 31, 2022 | Nov. 30, 2022 | Oct. 31, 2021 | Mar. 31, 2021 | Aug. 31, 2020 | Oct. 31, 2019 | ||
Debt Instrument [Line Items] | ||||||||
Loss on extinguishment of debt | $ 10 | $ 0 | ||||||
Total interest expense on long-term debt | 87 | 60 | ||||||
Amortization of debt issuance costs | 44 | 53 | ||||||
Total interest expense | [1] | $ 131 | 113 | |||||
Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 14.628% | |||||||
Interest expense, excluding amortization | $ 29 | 17 | ||||||
Amortization of debt issuance costs | 14 | 24 | ||||||
Unsecured debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest expense, excluding amortization | 28 | 28 | ||||||
Amortization of debt issuance costs | $ 27 | 27 | ||||||
Unsecured debt | Affiliated Entity | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 5% | 5% | ||||||
Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 7.875% | |||||||
Interest expense, excluding amortization | $ 13 | 13 | ||||||
Senior Notes | Affiliated Entity | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 11% | 7.50% | 7.50% | |||||
Secured Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 7.50% | |||||||
Interest expense, excluding amortization | $ 5 | 0 | ||||||
Amortization of debt issuance costs | 1 | 0 | ||||||
Secured Notes | Affiliated Entity | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 12.50% | |||||||
Other | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest expense, excluding amortization | 2 | 2 | ||||||
Loss on extinguishment of debt | 0 | 0 | ||||||
Amortization of debt issuance costs | $ 2 | $ 2 | ||||||
[1]See Note 19 for disclosure of related party amounts. |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents — money market funds and time deposits | $ 21 | $ 27 |
Total assets measured at fair value | 21 | 27 |
Warrant liabilities, net | 1 | 1 |
Other liabilities - contingent consideration relating to acquisitions payable in cash | 0 | 1 |
Total liabilities measured at fair value | 1 | 2 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents — money market funds and time deposits | 21 | 27 |
Total assets measured at fair value | 21 | 27 |
Warrant liabilities, net | 0 | 0 |
Other liabilities - contingent consideration relating to acquisitions payable in cash | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents — money market funds and time deposits | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Warrant liabilities, net | 1 | 1 |
Other liabilities - contingent consideration relating to acquisitions payable in cash | 0 | 0 |
Total liabilities measured at fair value | 1 | 1 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents — money market funds and time deposits | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Warrant liabilities, net | 0 | 0 |
Other liabilities - contingent consideration relating to acquisitions payable in cash | 0 | 1 |
Total liabilities measured at fair value | $ 0 | $ 1 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Classified as Level 3 (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 0 | $ 34 |
Credit loss valuation allowance included in income (loss) from equity method and other investments | 0 | (1) |
Accrued interest collected | 0 | (3) |
Foreign currency translation (losses) gain included in other comprehensive income | 0 | 3 |
Conversion of available-for-sale securities to equity method investment (Note 9) | 0 | (33) |
Balance at end of period | $ 0 | $ 0 |
Fair Value Measurements - Liabi
Fair Value Measurements - Liabilities Classified as Level 3 (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at Beginning of Period | $ 1,000 | $ 0 |
Additions | 0 | 6,000 |
Reclassification | 0 | |
Settlements | (1,000) | (3,000) |
Change in Fair Value | 0 | (2,000) |
Balance at End of Period | 0 | 1,000 |
Other current liabilities - contingent consideration relating to acquisitions payable in common stock | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at Beginning of Period | 0 | 0 |
Additions | 0 | 3,000 |
Reclassification | 0 | |
Settlements | 0 | (1,000) |
Change in Fair Value | 0 | (2,000) |
Balance at End of Period | 0 | 0 |
Other current liabilities - contingent consideration relating to acquisitions payable in cash | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at Beginning of Period | 0 | 0 |
Additions | 0 | 2,000 |
Reclassification | 1,000 | |
Settlements | (1,000) | (2,000) |
Change in Fair Value | 0 | 0 |
Balance at End of Period | 0 | 0 |
Other liabilities - contingent consideration relating to acquisitions payable in cash | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at Beginning of Period | 1,000 | 0 |
Additions | 0 | 1,000 |
Reclassification | (1,000) | |
Settlements | 0 | 0 |
Change in Fair Value | 0 | 0 |
Balance at End of Period | $ 0 | $ 1,000 |
Fair Value Measurements - Chang
Fair Value Measurements - Change in Fair Value (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Gain (loss) from change in fair value | $ 0 | $ 2 | |
Gain (loss) from change in fair value of warrant liabilities: | 0 | $ 3 | |
Fair Value, Inputs, Level 2 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Gain (loss) from change in fair value of warrant liabilities: | 0 | 3 | |
Fair Value, Inputs, Level 3 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Gain (loss) from change in fair value | $ 0 | $ 1 | |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general and administrative expenses | Selling, general and administrative expenses |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation Techniques and Significant Unobservable Inputs (Details) - Fair Value, Inputs, Level 3 $ in Millions | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other current liabilities - contingent consideration relating to acquisitions | $ 0 | $ 0 |
Other liabilities - contingent consideration relating to acquisitions | $ 0 | 1 |
Other liabilities - IndiaCo share pledge | $ 0 | |
Probability weighted cash flow | Probability adjustment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other current liabilities - contingent consideration relating to acquisitions, measurement input | 1 | 1 |
Other liabilities - contingent consideration relating to acquisitions, measurement input | 1 | 1 |
Discounted cash flow | Risk-adjusted discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other liabilities - IndiaCo share pledge, measurement input (in usd per share) | 0.123 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Millions, ₨ in Billions | 3 Months Ended | |||
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) shares | Dec. 31, 2022 INR (₨) shares | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets held for sale | $ 164 | $ 52 | ||
Liabilities held for sale | 184 | 83 | ||
Impairment of assets held for sale | 3 | $ 0 | ||
Property and equipment, net | 4,193 | $ 4,391 | ||
Debt, fair value | $ 369 | |||
Senior Notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest rate | 7.875% | |||
IndiaCo | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Guaranty, shares pledged (in shares) | shares | 8,467,347 | 8,467,347 | ||
Guaranty, shares pledged, percentage | 14.70% | 14.70% | ||
Guaranty, shares pledged, value | $ 66.5 | ₨ 5.5 | ||
Guarantees | $ 0.3 | $ 0.4 | ||
Fair Value, Inputs, Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-lived assets | 0 | |||
Impairment of long-lived assets | 52 | $ 80 | ||
Impairment of right-of-use assets and property and equipment | 25 | |||
Property and equipment, net | $ 400 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Detail of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Revenue from Contract with Customer [Abstract] | |||
ASC 606 membership and service revenue | $ 567 | $ 522 | |
ASC 842 rental and service revenue | 277 | 225 | |
Total membership and service revenue | 844 | 747 | |
Other revenue | 5 | 18 | |
Total revenue | [1] | 849 | 765 |
Cost of goods sold | $ 1 | $ 13 | |
[1]See Note 19 for disclosure of related party amounts. |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Revenue recognized | $ 21 | $ 19 | |
Remaining performance obligations | 1,500 | ||
Committed revenue backlog | $ 2,500 | $ 2,500 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |||
Disaggregation of Revenue [Line Items] | |||
Remaining performance obligation, percentage (more than) | 50% | ||
Remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue Recognition - Contract
Revenue Recognition - Contract Assets and Deferred Revenue (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets (included in Accounts receivable and accrued revenue, net) | $ 0 | $ 1 |
Contract assets (included in Other current assets) | 8 | 7 |
Contract assets (included in Other assets) | 15 | 17 |
Deferred revenue | $ (42) | $ (51) |
Revenue Recognition - Prepaid M
Revenue Recognition - Prepaid Member Referral Fees and Deferred Sale Incentive Compensation (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Prepaid expenses | $ 51 | $ 55 |
Other assets | $ 17 | $ 21 |
Revenue Recognition - Amortizat
Revenue Recognition - Amortization of Contract Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Amortization of capitalized costs to obtain a contract with a customer | $ 24 | $ 21 |
Revenue Recognition - Allowance
Revenue Recognition - Allowance For Credit Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 39 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Mar. 31, 2023 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | $ 13 | $ 63 | $ 63 | |
Provision charged to expense | 2 | $ (1) | 4 | |
Write-offs | (3) | (19) | ||
Changes for member collectability uncertainty | (3) | (33) | ||
Effect of foreign currency exchange rate changes | 0 | (2) | ||
Balance at end of period | $ 9 | $ 13 | $ 9 | |
Revenue not recognized, COVID-19 | $ 4 |
Revenue Recognition - Future Mi
Revenue Recognition - Future Minimum Lease Cash Flows (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Revenue from Contract with Customer [Abstract] | |
2023 | $ 433 |
2024 | 293 |
2025 | 136 |
2026 | 46 |
2027 | 25 |
2028 and beyond | 24 |
Total | $ 957 |
Leasing Arrangements - Operatin
Leasing Arrangements - Operating Lease Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Lessee, Lease, Description [Line Items] | ||
Lease cost contractually paid or payable for the period | $ 657 | $ 674 |
Non-cash GAAP straight-line lease cost | 26 | 50 |
Amortization of lease incentives | (69) | (77) |
Total real estate operating lease cost | 614 | 647 |
Early termination fees and related (gain)/loss | (107) | (154) |
Location operating expenses | ||
Lessee, Lease, Description [Line Items] | ||
Lease cost contractually paid or payable for the period | 618 | 624 |
Non-cash GAAP straight-line lease cost | 21 | 30 |
Amortization of lease incentives | (65) | (70) |
Total real estate operating lease cost | 574 | 584 |
Early termination fees and related (gain)/loss | 0 | 0 |
Pre-opening Location Expenses | ||
Lessee, Lease, Description [Line Items] | ||
Lease cost contractually paid or payable for the period | 5 | 33 |
Non-cash GAAP straight-line lease cost | 2 | 16 |
Amortization of lease incentives | (1) | (5) |
Total real estate operating lease cost | 6 | 44 |
Early termination fees and related (gain)/loss | 0 | 0 |
Selling, general and administrative expenses | ||
Lessee, Lease, Description [Line Items] | ||
Lease cost contractually paid or payable for the period | 3 | 5 |
Non-cash GAAP straight-line lease cost | 0 | 0 |
Amortization of lease incentives | 0 | (1) |
Total real estate operating lease cost | 3 | 4 |
Early termination fees and related (gain)/loss | 0 | 0 |
Restructuring and other related (gains) costs | ||
Lessee, Lease, Description [Line Items] | ||
Lease cost contractually paid or payable for the period | 31 | 12 |
Non-cash GAAP straight-line lease cost | 3 | 4 |
Amortization of lease incentives | (3) | (1) |
Total real estate operating lease cost | 31 | 15 |
Early termination fees and related (gain)/loss | $ (107) | $ (154) |
Leasing Arrangements - Operat_2
Leasing Arrangements - Operating Lease Costs - Fixed and Variable (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Lessee, Lease, Description [Line Items] | ||
Fixed real estate lease costs | $ 506 | $ 538 |
Fixed equipment and other lease costs | 0 | 0 |
Total fixed lease costs | 506 | 538 |
Variable real estate lease costs | 108 | 109 |
Variable equipment and other lease costs | 0 | 1 |
Total variable lease costs | 108 | 110 |
Location operating expenses | ||
Lessee, Lease, Description [Line Items] | ||
Fixed real estate lease costs | 467 | 482 |
Fixed equipment and other lease costs | 0 | 0 |
Total fixed lease costs | 467 | 482 |
Variable real estate lease costs | 107 | 102 |
Variable equipment and other lease costs | 0 | 1 |
Total variable lease costs | 107 | 103 |
Pre-opening Location Expenses | ||
Lessee, Lease, Description [Line Items] | ||
Fixed real estate lease costs | 6 | 38 |
Fixed equipment and other lease costs | 0 | 0 |
Total fixed lease costs | 6 | 38 |
Variable real estate lease costs | 0 | 6 |
Variable equipment and other lease costs | 0 | 0 |
Total variable lease costs | 0 | 6 |
Selling, general and administrative expenses | ||
Lessee, Lease, Description [Line Items] | ||
Fixed real estate lease costs | 3 | 4 |
Fixed equipment and other lease costs | 0 | 0 |
Total fixed lease costs | 3 | 4 |
Variable real estate lease costs | 0 | 0 |
Variable equipment and other lease costs | 0 | 0 |
Total variable lease costs | 0 | 0 |
Restructuring and other related (gains) costs | ||
Lessee, Lease, Description [Line Items] | ||
Fixed real estate lease costs | 30 | 14 |
Fixed equipment and other lease costs | 0 | 0 |
Total fixed lease costs | 30 | 14 |
Variable real estate lease costs | 1 | 1 |
Variable equipment and other lease costs | 0 | 0 |
Total variable lease costs | $ 1 | $ 1 |
Leasing Arrangements - Finance
Leasing Arrangements - Finance Lease Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Depreciation and amortization | $ 1 | $ 1 |
Interest expense | 1 | 1 |
Total | $ 2 | $ 2 |
Leasing Arrangements - Assets a
Leasing Arrangements - Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | |
Assets: | |||
Operating lease right-of-use assets | $ 10,399 | $ 11,243 | |
Finance lease right-of-use assets, location | Property and equipment, net | Property and equipment, net | |
Finance lease right-of-use assets | $ 35 | $ 46 | |
Total leased assets | 10,434 | 11,289 | |
Current liabilities | |||
Operating lease liabilities | $ 914 | $ 931 | |
Operating lease liabilities location | Total current liabilities | Total current liabilities | |
Finance lease liabilities | $ 4 | $ 5 | |
Finance lease liabilities location | Total current liabilities | Total current liabilities | |
Total current liabilities | [1] | $ 918 | $ 936 |
Non-current liabilities | |||
Operating lease obligations | $ 14,545 | $ 15,565 | |
Operating lease obligations location | Total non-current liabilities | Total non-current liabilities | |
Finance lease obligations | $ 19 | $ 33 | |
Finance lease obligations location | Total non-current liabilities | Total non-current liabilities | |
Total non-current liabilities | [1] | $ 14,564 | $ 15,598 |
Total lease obligations | 15,482 | 16,534 | |
Finance lease right-of-use assets, accumulated amortization | $ 27 | $ 26 | |
[1]See Note 19 for disclosure of related party amounts. |
Leasing Arrangements - Weighted
Leasing Arrangements - Weighted Average Remaining Lease Term and Weighted Average Discount Rate (Details) | Mar. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Weighted average remaining lease term, operating lease | 11 years | 12 years |
Weighted average remaining lease term, finance lease | 6 years | 8 years |
Weighted average discount rate percentage, operating lease | 10% | 9.30% |
Weighted average discount rate percentage, finance lease | 8% | 7.50% |
Leasing Arrangements - Annual L
Leasing Arrangements - Annual Lease Obligations (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | |
Finance Leases | |||
Remainder of 2023 | $ 5 | ||
2024 | 6 | ||
2025 | 5 | ||
2026 | 5 | ||
2027 | 4 | ||
2028 and beyond | 8 | ||
Total undiscounted fixed minimum lease cost payments | 33 | ||
Less amount representing lease incentive receivables | 0 | ||
Less: Amount representing interest | (10) | ||
Present value of future lease payments | 23 | ||
Less: Obligations classified as held for sale | 0 | ||
Less: Current portion of lease obligation | (4) | $ (5) | |
Total long-term lease obligation | 19 | 33 | |
Operating Leases | |||
Remainder of 2023 | 1,745 | ||
2024 | 2,297 | ||
2025 | 2,333 | ||
2026 | 2,354 | ||
2027 | 2,348 | ||
2028 and beyond | 15,121 | ||
Total undiscounted fixed minimum lease cost payments | 26,198 | ||
Less amount representing lease incentive receivables | (147) | ||
Less: Amount representing interest | (10,423) | ||
Present value of future lease payments | 15,628 | ||
Less: Obligations classified as held for sale | (169) | ||
Less: Current portion of lease obligation | (914) | (931) | |
Total long-term lease obligation | 14,545 | 15,565 | |
Total | |||
Remainder of 2023 | 1,750 | ||
2024 | 2,303 | ||
2025 | 2,338 | ||
2026 | 2,359 | ||
2027 | 2,352 | ||
2028 and beyond | 15,129 | ||
Total undiscounted fixed minimum lease cost payments | 26,231 | ||
Less amount representing lease incentive receivables | (147) | ||
Less: Amount representing interest | (10,433) | ||
Total lease obligations | 15,651 | ||
Less: Obligations classified as held for sale | (169) | ||
Less: Current portion of lease obligation | [1] | (918) | (936) |
Total non-current liabilities | [1] | 14,564 | $ 15,598 |
Deferred tenant incentives for contingent lease arrangements | $ 48 | ||
[1]See Note 19 for disclosure of related party amounts. |
Leasing Arrangements - Narrativ
Leasing Arrangements - Narrative (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Leases [Abstract] | |
Future minimum lease cost payments for leases not yet taken possession | $ 432 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 3 | $ 13 |
Location operating expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 1 | 2 |
Selling, general and administrative expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 2 | 11 |
Service-based restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 7 | 8 |
Awards granted (in shares) | 24 | |
Award vesting period | 3 years | |
Service-based vesting stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 1 | 3 |
Service, performance and market-based vesting restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | (2) | 2 |
Service, performance and market-based vesting stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | (3) | 0 |
LatamCo awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 0.1 | |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expense recovery, forfeited awards | 2 | |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expense recovery, forfeited awards | $ 3 | $ 2 |
Net Loss Per Share - Narrative
Net Loss Per Share - Narrative (Details) | 3 Months Ended |
Mar. 31, 2023 shares | |
Earnings Per Share [Abstract] | |
Common stock exchange ratio | 1 |
Warrants included in weighted-average common shares outstanding calculation | 55,672,898 |
Net Loss Per Share - Basic and
Net Loss Per Share - Basic and Diluted Computations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | |||||
Net loss attributed to WeWork Inc. | $ (264,000) | $ (435,000) | $ (2,300,000) | $ (4,600,000) | $ (3,800,000) |
Net loss attributable to Class A Common Stockholders, basic | (264,000) | (435,000) | |||
Net loss attributable to Class A Common Stockholders, diluted | $ (264,000) | $ (435,000) | |||
Denominator: | |||||
Weighted-average shares - Basic (in shares) | 766,258,253 | 759,676,860 | |||
Weighted-average shares - Diluted (in shares) | 766,258,253 | 759,676,860 | |||
Net loss per share attributable to Class A Common Stockholders: | |||||
Basic (in usd per share) | $ (0.34) | $ (0.57) | |||
Diluted (in usd per share) | $ (0.34) | $ (0.57) |
Net Loss Per Share - Potentiall
Net Loss Per Share - Potentially Dilutive Shares (Details) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive shares (in shares) | 32,226,017 | 18,580,989 |
Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive shares (in shares) | 23,877,777 | 23,877,787 |
Partnership Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive shares (in shares) | 19,896,032 | 19,896,032 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive shares (in shares) | 10,086,548 | 17,301,513 |
Contingent shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive shares (in shares) | 275,713 | 0 |
WeWork Partnerships Profits Interest Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive shares (in shares) | 42,057 | 42,057 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Feb. 11, 2024 | Dec. 01, 2023 | May 10, 2022 | Dec. 27, 2019 | Feb. 28, 2023 | Dec. 31, 2021 | Oct. 31, 2021 | Sep. 30, 2021 | May 31, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2019 | Feb. 10, 2023 | Dec. 31, 2022 | Nov. 30, 2022 | May 31, 2022 | Nov. 30, 2021 | Mar. 31, 2021 | Oct. 31, 2019 | May 31, 2019 | Apr. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2015 | |
Other Commitments [Line Items] | |||||||||||||||||||||||
Loss on extinguishment of debt | $ 10,000,000 | $ 0 | |||||||||||||||||||||
Outstanding principal balance | 3,616,000,000 | ||||||||||||||||||||||
Related party warrant liability | $ 284,000,000 | ||||||||||||||||||||||
Debt issuance costs | $ 14,000,000 | ||||||||||||||||||||||
Amortization of debt issuance costs | 44,000,000 | 53,000,000 | |||||||||||||||||||||
Construction purchase commitments | 41,000,000 | $ 60,000,000 | |||||||||||||||||||||
Asset retirement obligations | $ 220,000,000 | 235,000,000 | 230,000,000 | 230,000,000 | |||||||||||||||||||
Affiliated Entity | |||||||||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||||||||
Debt issuance costs | 22,000,000 | 23,000,000 | |||||||||||||||||||||
Letter of Credit | Affiliated Entity | |||||||||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||||||||
Availability | $ 1,750,000,000 | ||||||||||||||||||||||
Debt issuance costs | $ 284,000,000 | ||||||||||||||||||||||
Line of Credit | |||||||||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||||||||
Outstanding principal balance | 470,000,000 | 350,000,000 | |||||||||||||||||||||
Debt issuance costs, net | $ 12,000,000 | 7,000,000 | |||||||||||||||||||||
Interest rate | 14.628% | ||||||||||||||||||||||
Amortization of debt issuance costs | $ 14,000,000 | 24,000,000 | |||||||||||||||||||||
Line of Credit | Senior Letter of Credit Tranche | |||||||||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||||||||
Availability | $ 930,000,000 | ||||||||||||||||||||||
Senior Notes | |||||||||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||||||||
Outstanding principal balance | 669,000,000 | 669,000,000 | |||||||||||||||||||||
Debt issuance costs, net | $ 6,000,000 | 7,000,000 | |||||||||||||||||||||
Interest rate | 7.875% | ||||||||||||||||||||||
Repayment of debt | 33,000,000 | ||||||||||||||||||||||
Debt issuance costs | $ 17,000,000 | ||||||||||||||||||||||
Senior Notes | Affiliated Entity | |||||||||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||||||||
Remaining availability | $ 250,000,000 | ||||||||||||||||||||||
Interest rate | 7.50% | 11% | 7.50% | ||||||||||||||||||||
Senior unsecured notes | |||||||||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||||||||
Outstanding principal balance | 2,200,000,000 | ||||||||||||||||||||||
Amortization of debt issuance costs | 27,000,000 | 27,000,000 | |||||||||||||||||||||
Senior unsecured notes | Affiliated Entity | |||||||||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||||||||
Outstanding principal balance | $ 2,200,000,000 | 2,200,000,000 | |||||||||||||||||||||
Interest rate | 5% | 5% | |||||||||||||||||||||
Implied interest rate | 11.69% | ||||||||||||||||||||||
Debt issuance costs | $ 569,000,000 | ||||||||||||||||||||||
2019 Credit Facility | Line of Credit | |||||||||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||||||||
Availability | $ 650,000,000 | ||||||||||||||||||||||
2019 Credit Facility | Line of Credit | Lease Agreements | |||||||||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||||||||
Letters of credit outstanding | $ 3,000,000 | 3,000,000 | |||||||||||||||||||||
Restricted cash | 3,000,000 | 3,000,000 | |||||||||||||||||||||
2019 Credit Facility | Line of Credit | Letter of Credit | |||||||||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||||||||
Availability | $ 200,000,000 | $ 500,000,000 | |||||||||||||||||||||
2020 Credit Facility | Line of Credit | |||||||||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||||||||
Availability | $ 1,750,000,000 | $ 1,100,000,000 | |||||||||||||||||||||
Letters of credit outstanding | 1,000,000,000 | ||||||||||||||||||||||
Restricted cash | 71,000,000 | ||||||||||||||||||||||
Undrawn letters of credit | $ 48,000,000 | ||||||||||||||||||||||
Reimbursement obligation, percent of principal amount | 2% | ||||||||||||||||||||||
Implied interest rate | 12.47% | ||||||||||||||||||||||
Fronting fee percentage | 0.125% | ||||||||||||||||||||||
Fronting fee percentage, excess | 0.415% | ||||||||||||||||||||||
Outstanding letters of credit fee percentage | 5.475% | 2.875% | |||||||||||||||||||||
Issuance fees payable on outstanding amounts percentage | 2.60% | ||||||||||||||||||||||
2020 Credit Facility | Line of Credit | Forecast | |||||||||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||||||||
Issuance fees payable on outstanding amounts percentage | 7.045% | 6.50% | |||||||||||||||||||||
2020 Credit Facility | Line of Credit | Minimum | |||||||||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||||||||
Reimbursement obligation, base percentage | 6% | ||||||||||||||||||||||
2020 Credit Facility | Line of Credit | Maximum | |||||||||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||||||||
Reimbursement obligation, base percentage | 6.75% | ||||||||||||||||||||||
2020 Credit Facility | Line of Credit | Letters Of Credit Securing 2019 LC Facility | |||||||||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||||||||
Letters of credit outstanding | $ 6,000,000 | $ 6,000,000 | |||||||||||||||||||||
2020 Credit Facility | Line of Credit | Senior Letter of Credit Tranche | |||||||||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||||||||
Availability | $ 960,000,000 | $ 1,050,000,000 | 1,250,000,000 | ||||||||||||||||||||
2020 Credit Facility | Line of Credit | Junior Letter of Credit Tranche | |||||||||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||||||||
Availability | 470,000,000 | $ 350,000,000 | |||||||||||||||||||||
Minimum return to participants, applicable margin rate | 6.50% | ||||||||||||||||||||||
Minimum return to participants, percent of principal | 2% | ||||||||||||||||||||||
Increase in maximum borrowing capacity | $ 120,000,000 | ||||||||||||||||||||||
Interest expense | 13,000,000 | 0 | |||||||||||||||||||||
Loss on extinguishment of debt | 10,000,000 | ||||||||||||||||||||||
Write off of debt issuance costs | 7,000,000 | ||||||||||||||||||||||
Prepayment premium | 3,000,000 | ||||||||||||||||||||||
2020 Credit Facility | Line of Credit | Junior Letter of Credit Tranche | SOFR rate | |||||||||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||||||||
Floor interest rate | 0.75% | ||||||||||||||||||||||
Basis spread on variable interest rate | 6.50% | 9.90% | |||||||||||||||||||||
2020 Credit Facility | Line of Credit | Junior Letter of Credit Tranche | Alternate Base Rate | |||||||||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||||||||
Basis spread on variable interest rate | 5.50% | ||||||||||||||||||||||
2020 Credit Facility | Letter of Credit | |||||||||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||||||||
Remaining availability | 0 | ||||||||||||||||||||||
2020 Credit Facility | Letter of Credit | Debt Scenario One | |||||||||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||||||||
Additional principal amount | 1,250,000,000 | ||||||||||||||||||||||
2020 Credit Facility | Letter of Credit | Debt Scenario Two | |||||||||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||||||||
Additional principal amount | 1,050,000,000 | ||||||||||||||||||||||
2020 Credit Facility, A&R NPA | Line of Credit | |||||||||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||||||||
Availability | $ 500,000,000 | ||||||||||||||||||||||
Senior Letter of Credit Tranche | Line of Credit | |||||||||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||||||||
Availability | $ 960,000,000 | ||||||||||||||||||||||
Company/SBG Reimbursement Agreement | |||||||||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||||||||
Interest expense | 16,000,000 | 17,000,000 | |||||||||||||||||||||
LC Debt Facility | |||||||||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||||||||
Debt issuance costs, net | 500,000 | ||||||||||||||||||||||
Loan payable | $ 350,000,000 | $ 0 | |||||||||||||||||||||
Issuance fee percentage | 5.475% | ||||||||||||||||||||||
Fronting fee percentage | 0.125% | ||||||||||||||||||||||
Repayment of debt | $ 350,000,000 | $ 350,000,000 | |||||||||||||||||||||
Debt issuance costs | $ 500,000 | ||||||||||||||||||||||
Amortization of debt issuance costs | $ 0 | $ 100,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Asset Retirement Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Balance at beginning of period | $ 230 | $ 220 |
Liabilities incurred in the current period | 0 | 20 |
Liabilities settled in the current period | (5) | (10) |
Accretion of liability | 5 | 16 |
Revisions in estimated cash flows | 7 | 0 |
Effect of foreign currency exchange rate changes | (2) | (16) |
Balance at end of period | 235 | 230 |
Less: Current portion of asset retirement obligations | (2) | (2) |
Total non-current portion of asset retirement obligations | $ 233 | $ 228 |
Other Related Party Transacti_3
Other Related Party Transactions - Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | Oct. 31, 2019 |
Current assets: | |||
Accounts receivable and accrued revenue | $ 9 | $ 3 | |
Prepaid expenses | 1 | 1 | |
Other current assets | 0 | 0 | |
Total current assets | 10 | 4 | |
Other assets | 345 | 384 | |
Total assets | 355 | 388 | |
Current liabilities: | |||
Accounts payable and accrued expenses | 79 | 86 | |
Deferred revenue | 5 | 2 | |
Current lease obligations | 18 | 13 | |
Other current liabilities | 12 | 2 | |
Total current liabilities | 114 | 103 | |
Long-term lease obligations | 287 | 286 | |
Long-term debt | 1,900 | 1,650 | |
Other liabilities | 32 | 32 | |
Total liabilities | 2,333 | 2,071 | |
Related Party Transaction [Line Items] | |||
Long-term debt | $ 1,900 | $ 1,650 | |
Senior unsecured notes | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Interest rate | 5% | 5% |
Other Related Party Transacti_4
Other Related Party Transactions - Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Related Party Transactions [Abstract] | ||
Revenue | $ 11 | $ 16 |
Expenses: | ||
Total expenses | 12 | 19 |
Interest expense | $ 80 | $ 90 |
Other Related Party Transacti_5
Other Related Party Transactions - International Joint Ventures and Strategic Partnerships (Details) $ in Millions, ₨ in Billions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Oct. 02, 2020 | Jan. 31, 2022 shares | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Apr. 02, 2021 USD ($) | Dec. 31, 2022 USD ($) shares | Dec. 31, 2022 INR (₨) shares | |
IndiaCo | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership percentage | 27.50% | ||||||
Guaranty, shares pledged (in shares) | shares | 8,467,347 | 8,467,347 | |||||
Guaranty, shares pledged, percentage | 14.70% | 14.70% | |||||
Guaranty, shares pledged, value | $ 66.5 | ₨ 5.5 | |||||
Guarantees | $ 0.3 | $ 0.4 | |||||
IndiaCo | 2020 Debentures | |||||||
Related Party Transaction [Line Items] | |||||||
Conversion of notes receivable to investment (in shares) | shares | 12,397,510 | ||||||
IndiaCo | Other Convertible Debentures | |||||||
Related Party Transaction [Line Items] | |||||||
Conversion of notes receivable to investment (in shares) | shares | 3,375,000 | ||||||
IndiaCo | |||||||
Related Party Transaction [Line Items] | |||||||
Management fee income | 2 | $ 2 | |||||
Affiliated Entity | |||||||
Related Party Transaction [Line Items] | |||||||
Agreement term | 6 months | ||||||
Affiliated Entity | ChinaCo | |||||||
Related Party Transaction [Line Items] | |||||||
Guarantees | 3 | ||||||
Annual management fee percent | 4% | ||||||
Information technology services | $ 1 | ||||||
Lease guaranty fee | $ 0.1 |
Other Related Party Transacti_6
Other Related Party Transactions - Real Estate Transactions (Details) $ in Millions | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2022 USD ($) | Mar. 31, 2023 USD ($) agreement | Mar. 31, 2022 USD ($) | |
Related Party Transaction [Line Items] | |||
Lease cost expense | $ 614 | $ 647 | |
Future minimum lease cost, finance lease | 33 | ||
Future minimum lease cost, operating lease | $ 26,198 | ||
Chief Executive Officer | |||
Related Party Transaction [Line Items] | |||
Number of operating lease agreements | agreement | 3 | ||
Number of finance lease agreements | agreement | 1 | ||
Lease termination, release of unpaid tenant improvement allowances held in escrow | $ 0.6 | ||
Lease cost expense | $ 0 | 1 | |
Contractual obligation | 0 | 1 | |
Finance lease, contractual obligation | 1 | 1 | |
Future minimum lease cost, finance lease | 10 | ||
Tenant lease receivable | 0 | ||
Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Lease cost expense | 11 | 17 | |
Contractual obligation | 8 | 12 | |
Tenant incentives received | 0 | $ 5 | |
Future minimum lease cost, operating lease | 588 | ||
Tenant lease receivable | $ 27 |
Other Related Party Transacti_7
Other Related Party Transactions - Membership and Service Agreements (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |||
Feb. 28, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||||
Revenue | $ 11 | $ 16 | |||
Total expenses | 12 | 19 | |||
LatamCo | |||||
Related Party Transaction [Line Items] | |||||
Joint venture, reimbursement payable waived | $ 7 | ||||
Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Fee reimbursement liability, maximum | $ 50 | ||||
Fee reimbursement liability | 8 | $ 8 | |||
Affiliated Entity | SBG | Membership and Service Agreements | |||||
Related Party Transaction [Line Items] | |||||
Revenue | 8 | 11 | |||
Total expenses | 1 | 1 | |||
Other Affiliates | Membership and Service Agreements | |||||
Related Party Transaction [Line Items] | |||||
Revenue | $ 1 | $ 3 |
Segment Disclosures and Conce_3
Segment Disclosures and Concentration - Revenues and Property and Equipment by Country (Details) $ in Millions | 3 Months Ended | |||
Mar. 31, 2023 USD ($) segment | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | ||
Segment Reporting [Abstract] | ||||
Number of operating segments | segment | 1 | |||
Segment Reporting Information [Line Items] | ||||
Total revenue | [1] | $ 849 | $ 765 | |
Total property and equipment, net | 4,193 | $ 4,391 | ||
United States | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 351 | 339 | ||
Total property and equipment, net | 2,091 | 2,231 | ||
United Kingdom | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 135 | 118 | ||
Total property and equipment, net | 550 | 551 | ||
Japan | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 54 | 50 | ||
Total property and equipment, net | 240 | 253 | ||
Other foreign countries | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 309 | $ 258 | ||
Total property and equipment, net | $ 1,312 | $ 1,356 | ||
[1]See Note 19 for disclosure of related party amounts. |
Segment Disclosures and Conce_4
Segment Disclosures and Concentration - Concentrations (Details) - Geographic concentration risk | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues | United States | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 41% | 45% |
Revenues | United Kingdom | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 16% | 15% |
Revenues | London | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 87% | |
Property and equipment | London | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 88% |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||||||||||
May 05, 2023 USD ($) $ / shares shares | Dec. 31, 2019 USD ($) | Apr. 30, 2023 USD ($) right $ / shares shares | Mar. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) shares | Nov. 30, 2022 | Dec. 31, 2021 USD ($) | Oct. 31, 2021 USD ($) | Mar. 31, 2021 USD ($) | Jul. 10, 2020 USD ($) | Oct. 31, 2019 USD ($) | Apr. 30, 2018 USD ($) | |
Class A common stock | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Common stock, authorized (in shares) | shares | 1,500,000,000 | 1,500,000,000 | ||||||||||
Class C common stock | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Common stock, authorized (in shares) | shares | 25,041,666 | 25,041,666 | ||||||||||
Senior Notes | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Aggregate principal amount | $ 702 | |||||||||||
Interest rate | 7.875% | |||||||||||
Repayment of debt | $ 33 | |||||||||||
Senior Notes | Second Lien Senior Secured PIK Notes | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 11% | |||||||||||
Senior Notes | Third Lien Senior Secured PIK Notes | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 12% | |||||||||||
Senior Notes | First Lien Senior Secured PIK Notes Series I | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 15% | |||||||||||
Senior Notes | Second Lien Senior Secured PIK Exchangeable Notes | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 11% | |||||||||||
Senior Notes | Third Lien Senior Secured PIK Exchangeable Notes | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 12% | |||||||||||
Senior Notes | Affiliated Entity | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Aggregate principal amount | $ 250 | $ 500 | $ 550 | $ 550 | ||||||||
Interest rate | 11% | 7.50% | 7.50% | |||||||||
Amount outstanding | $ 250 | $ 0 | ||||||||||
Senior unsecured notes | Affiliated Entity | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Aggregate principal amount | $ 2,200 | $ 2,200 | ||||||||||
Interest rate | 5% | 5% | ||||||||||
Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Exchange of debt | $ 1,500 | |||||||||||
Debt conversion, shares issued (in shares) | shares | 250,000,000 | |||||||||||
Subsequent Event | Class A common stock | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Dividend, number of rights | right | 1 | |||||||||||
Common stock purchase rights ratio | 0.0001 | |||||||||||
Common stock purchase right, purchase price (in usd per share) | $ / shares | $ 0.0008 | |||||||||||
Common stock, authorized (in shares) | shares | 4,874,958,334 | |||||||||||
Debt conversion, shares issued (in shares) | shares | 1,100,000,000 | |||||||||||
Subsequent Event | Class A common stock | Private Placement | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Stock sold (in shares) | shares | 35,000,000 | |||||||||||
Gross proceeds | $ 40 | |||||||||||
Stock sold, stock price (in usd per share) | $ / shares | $ 1.15 | |||||||||||
Subsequent Event | Class C common stock | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Dividend, number of rights | right | 1 | |||||||||||
Common stock purchase rights ratio | 1 | |||||||||||
Common stock purchase right, purchase price (in usd per share) | $ / shares | $ 0.0008 | |||||||||||
Subsequent Event | Senior Notes | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Exchange of debt | $ 505 | |||||||||||
Amount outstanding | 164 | |||||||||||
Repayment of debt | 250 | |||||||||||
Subsequent Event | Senior Notes | Second Lien Senior Secured PIK Notes | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Aggregate principal amount | $ 687 | |||||||||||
Interest rate | 11% | |||||||||||
Subsequent Event | Senior Notes | Second Lien Senior Secured PIK Notes | Cash | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 5% | |||||||||||
Subsequent Event | Senior Notes | Second Lien Senior Secured PIK Notes | PIK | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 6% | |||||||||||
Subsequent Event | Senior Notes | Third Lien Senior Secured PIK Notes | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Aggregate principal amount | $ 23 | |||||||||||
Interest rate | 12% | |||||||||||
Subsequent Event | Senior Notes | First Lien Senior Secured PIK Notes Series I | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Aggregate principal amount | $ 500 | |||||||||||
Interest rate | 15% | |||||||||||
Backstop fee | $ 25 | |||||||||||
Subsequent Event | Senior Notes | First Lien Senior Secured PIK Notes Series I | Cash | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 7% | |||||||||||
Subsequent Event | Senior Notes | First Lien Senior Secured PIK Notes Series I | PIK | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 8% | |||||||||||
Subsequent Event | Senior Notes | Second Lien Senior Secured PIK Exchangeable Notes | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Aggregate principal amount | $ 188 | |||||||||||
Interest rate | 11% | |||||||||||
Subsequent Event | Senior Notes | Second Lien Senior Secured PIK Exchangeable Notes | Cash | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 5% | |||||||||||
Subsequent Event | Senior Notes | Second Lien Senior Secured PIK Exchangeable Notes | PIK | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 6% | |||||||||||
Subsequent Event | Senior Notes | Third Lien Senior Secured PIK Exchangeable Notes | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Aggregate principal amount | $ 270 | |||||||||||
Interest rate | 12% | |||||||||||
Subsequent Event | Senior Notes | First Lien Senior Secured PIK Notes Due 2027, Series II | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Aggregate principal amount | $ 300 | |||||||||||
Interest rate | 15% | |||||||||||
Subsequent Event | Senior Notes | First Lien Senior Secured PIK Notes Due 2027, Series II | Cash | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 7% | |||||||||||
Subsequent Event | Senior Notes | First Lien Senior Secured PIK Notes Due 2027, Series II | PIK | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 8% | |||||||||||
Subsequent Event | Senior Notes | SoftBank Delayed Draw Notes | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Debt fee percentage of principal in excess of threshold | 12.50% | |||||||||||
Debt fee, principal threshold | $ 50 | |||||||||||
Debt fee for principal in excess of | 250 | |||||||||||
Debt issuance priority one | 250 | |||||||||||
Debt issuance priority three | 50 | |||||||||||
Subsequent Event | Senior Notes | First Lien Senior Secured PIK Notes Due 2027, Series III | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Aggregate principal amount | $ 175 | |||||||||||
Interest rate | 15% | |||||||||||
Debt fee percentage of principal in excess of threshold | 12.50% | |||||||||||
Debt fee, principal threshold | $ 50 | |||||||||||
Debt fee for principal in excess of | 125 | |||||||||||
Debt issuance priority two | 125 | |||||||||||
Debt issuance priority three | $ 50 | |||||||||||
Subsequent Event | Senior Notes | First Lien Senior Secured PIK Notes Due 2027, Series III | Cash | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 7% | |||||||||||
Subsequent Event | Senior Notes | First Lien Senior Secured PIK Notes Due 2027, Series III | PIK | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 8% | |||||||||||
Subsequent Event | Senior Notes | Affiliated Entity | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Aggregate principal amount | $ 50 | |||||||||||
Exchange of debt | $ 500 | |||||||||||
Repayment of debt | 300 | |||||||||||
Subsequent Event | Senior unsecured notes | Affiliated Entity | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Amount outstanding | 9 | |||||||||||
Subsequent Event | Senior unsecured notes | Affiliated Entity | Senior Notes, Series II | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Exchange of debt | 541 | |||||||||||
Subsequent Event | Senior unsecured notes | Affiliated Entity | Senior Notes, Series I | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Exchange of debt | $ 1,650 |
Subsequent Events - Debt (Detai
Subsequent Events - Debt (Details) - USD ($) $ in Thousands | May 05, 2023 | Apr. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Nov. 30, 2022 | Dec. 31, 2021 | Oct. 31, 2021 | Mar. 31, 2021 | Aug. 31, 2020 | Jul. 10, 2020 | Oct. 31, 2019 | Apr. 30, 2018 |
Subsequent Event [Line Items] | ||||||||||||
Outstanding principal balance | $ 3,616,000 | |||||||||||
Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Outstanding principal balance | $ 2,363,000 | |||||||||||
Impact of Transactions | (1,253,000) | |||||||||||
Senior unsecured notes | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Outstanding principal balance | $ 2,200,000 | |||||||||||
Senior unsecured notes | Affiliated Entity | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 5% | 5% | ||||||||||
Outstanding principal balance | $ 2,200,000 | $ 2,200,000 | ||||||||||
Aggregate principal amount | $ 2,200,000 | $ 2,200,000 | ||||||||||
Senior unsecured notes | Affiliated Entity | Senior Notes, Series I | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Outstanding principal balance | 1,650,000 | |||||||||||
Senior unsecured notes | Affiliated Entity | Senior Notes, Series I | Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Outstanding principal balance | 0 | |||||||||||
Impact of Transactions | (1,650,000) | |||||||||||
Senior unsecured notes | Affiliated Entity | Senior Notes, Series II | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Outstanding principal balance | $ 550,000 | |||||||||||
Senior unsecured notes | Affiliated Entity | Senior Notes, Series II | Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Outstanding principal balance | 9,000 | |||||||||||
Impact of Transactions | (541,000) | |||||||||||
Senior Notes | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 7.875% | |||||||||||
Outstanding principal balance | $ 669,000 | 669,000 | ||||||||||
Aggregate principal amount | $ 702,000 | |||||||||||
Senior Notes | Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Outstanding principal balance | 164,000 | |||||||||||
Impact of Transactions | $ (505,000) | |||||||||||
Senior Notes | First Lien Senior Secured PIK Notes Series I | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 15% | |||||||||||
Outstanding principal balance | $ 0 | |||||||||||
Senior Notes | First Lien Senior Secured PIK Notes Series I | Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 15% | |||||||||||
Outstanding principal balance | $ 525,000 | |||||||||||
Impact of Transactions | 525,000 | |||||||||||
Aggregate principal amount | $ 500,000 | |||||||||||
Senior Notes | Second Lien Senior Secured PIK Notes | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 11% | |||||||||||
Outstanding principal balance | $ 0 | |||||||||||
Senior Notes | Second Lien Senior Secured PIK Notes | Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 11% | |||||||||||
Outstanding principal balance | $ 687,000 | |||||||||||
Impact of Transactions | 687,000 | |||||||||||
Aggregate principal amount | $ 687,000 | |||||||||||
Senior Notes | Third Lien Senior Secured PIK Notes | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 12% | |||||||||||
Outstanding principal balance | $ 0 | |||||||||||
Senior Notes | Third Lien Senior Secured PIK Notes | Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 12% | |||||||||||
Outstanding principal balance | $ 23,000 | |||||||||||
Impact of Transactions | 23,000 | |||||||||||
Aggregate principal amount | $ 23,000 | |||||||||||
Senior Notes | Second Lien Senior Secured PIK Exchangeable Notes | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 11% | |||||||||||
Outstanding principal balance | $ 0 | |||||||||||
Senior Notes | Second Lien Senior Secured PIK Exchangeable Notes | Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 11% | |||||||||||
Outstanding principal balance | $ 188,000 | |||||||||||
Impact of Transactions | 188,000 | |||||||||||
Aggregate principal amount | $ 188,000 | |||||||||||
Senior Notes | Third Lien Senior Secured PIK Exchangeable Notes | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 12% | |||||||||||
Outstanding principal balance | $ 0 | |||||||||||
Senior Notes | Third Lien Senior Secured PIK Exchangeable Notes | Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 12% | |||||||||||
Outstanding principal balance | $ 270,000 | |||||||||||
Impact of Transactions | 270,000 | |||||||||||
Aggregate principal amount | 270,000 | |||||||||||
Senior Notes | Affiliated Entity | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 11% | 7.50% | 7.50% | |||||||||
Aggregate principal amount | $ 250,000 | $ 500,000 | $ 550,000 | $ 550,000 | ||||||||
Senior Notes | Affiliated Entity | Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Aggregate principal amount | $ 50,000 | |||||||||||
Secured Notes | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 7.50% | |||||||||||
Outstanding principal balance | $ 250,000 | 0 | ||||||||||
Secured Notes | Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Outstanding principal balance | 0 | |||||||||||
Impact of Transactions | (250,000) | |||||||||||
Secured Notes | Affiliated Entity | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 12.50% | |||||||||||
Aggregate principal amount | $ 1,100,000 | $ 1,100,000 | ||||||||||
Line of Credit | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 14.628% | |||||||||||
Outstanding principal balance | $ 470,000 | 350,000 | ||||||||||
Line of Credit | Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Outstanding principal balance | 470,000 | |||||||||||
Impact of Transactions | 0 | |||||||||||
Other Loans | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Outstanding principal balance | $ 27,000 | $ 25,000 | ||||||||||
Other Loans | Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Outstanding principal balance | 27,000 | |||||||||||
Impact of Transactions | $ 0 | |||||||||||
Other Loans | Minimum | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 3.30% | 20.60% | ||||||||||
Other Loans | Maximum | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate | 20.60% |