Table of Contents WEWORK COMPANIES INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2019 (UNAUDITED) The future undiscounted fixed minimum lease cost payments for the non-cancelable leases presented above exclude an additional $13.1 billion relating to executed non-cancelable leases that have not yet commenced as of June 30, 2019. Note 5. Other Current Assets Other current assets consists of the following: December 31, June 30, (Amounts in thousands) 2018 2019 Net receivable for value added tax (“VAT”) $ 92,815 $ 111,873 Deposits on property and equipment 81,646 72,177 Acquisition deposits — 5,000 (1) Prepaid rent expense 71,357 — (1) Prepaid real estate taxes 14,293 — (1) Prepaid common area maintenance charges 7,075 — Prepaid member referral fees 49,735 59,448 Prepaid software 13,546 34,542 Other prepaid expenses and current assets 55,134 93,752 Total other current assets $ 385,601 $ 376,792 (1) Effective January 1, 2019, in connection with the adoption of ASC 842, prepaid rent, prepaid real estate taxes and prepaid common area maintenance charges are included as a component of the lease right-of-use asset on the accompanying condensed consolidated balance sheets. Note 6. Property and Equipment, Net Property and equipment, net, consists of the following: December 31, June 30, (Amounts in thousands) 2018 2019 Leasehold improvements $ 3,562,651 $4,484,712 (1) Finance lease assets 44,443 35,580 (2) Land — 356,473 Equipment 371,455 458,773 Furniture 423,346 546,442 (2) Construction in progress 538,384 1,651,856 Property and equipment 4,940,279 7,533,836 Less: accumulated depreciation (571,507) (804,409) Total property and equipment, net $ 4,368,772 $6,729,427 (1) In connection with the adoption of ASC 842, capital lease assets are now referred to as finance lease assets. (2) The land and construction in progress balances as of June 30, 2019 include the 2019 acquisition of a $852.8 million real estate development project by the 424 Fifth Venture, including $2.8 million of capitalized transaction costs, which was allocated $356.5 million to land and $496.3 million to construction in progress as described in Note 7. Depreciation expense for the six months ended June 30, 2018 and 2019 was $125.4 million and $234.1 million, respectively. F-94