Table of Contents WEWORK COMPANIES INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2019 (UNAUDITED) ASC 606 Transition Disclosures The impact of adopting ASC 606 for the six months ended June 30, 2019 was an increase to revenue of approximately $0.9 million. Contract Balances The following table provides information about contract assets and deferred revenue from contracts with customers recognized in accordance with ASC 606: December 31, June 30, (Amounts in thousands) 2018 2019 Contract assets (included in accounts receivable and accrued revenue, net) $ 13,621 $ 30,972 Contract assets (included in other current assets) $ 8,453 $ 17,772 Contract assets (included in other assets) $ 11,340 $ 16,445 Deferred revenue $ (101,926) $(135,132) Revenue recognized during the six months ended June 30, 2019, which was included in deferred revenue as of January 1, 2019, was $89.3 million. Remaining Performance Obligations and Total Committed Revenue Backlog The following table presents 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 June 30, 2019, that will be recognized as revenue in future periods, over the life of the customer contracts, in accordance with either ASC 606 or ASC 842: Total Committed ASC 606 ASC 842 Revenue (1) (Amounts in thousands) Revenue Revenue Backlog Remaining 2019 $ 1,110,946 $137,219 $1,248,165 2020 1,119,959 236,480 1,356,439 2021 505,285 156,272 661,557 2022 233,668 92,733 326,401 2023 142,262 58,845 201,107 2024 and beyond 148,156 10,078 158,234 Total $3,260,276 $691,627 $3,951,903 (1) Total non-cancelable contractual commitments, net of discounts, remaining under agreements entered into as of June 30, 2019, which we expect will be recognized as revenue subsequent to such date. The combination of the remaining performance obligation to be recognized as revenue under ASC 606 plus the remaining contract value of the Company’s member contracts that qualify as leases is comparable to what the Company refers to as “Committed Revenue Backlog”. The Company has excluded from these amounts contracts with variable consideration where revenue is recognized using the right to invoice practical expedient. F-87