Table of Contents WEWORK COMPANIES INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2019 (UNAUDITED) (1) Common area maintenance charges and real estate taxes, or “tenancy costs” are a non-lease component as defined in ASC 842. We have elected to not separate non-lease components in the determination of our lease obligation and therefore the costs associated with common area maintenance charges and real estate taxes billed in addition to our base rent, where applicable, have been included as a component of our total operating lease costs in 2019. For comparability purposes, we have presented incremental common area maintenance charges and real estate taxes collectively, “tenancy costs”, contractually paid or payable, shown as a component of the total operating lease cost in all periods presented. The components of total real estate operating lease cost for leases recorded under ASC 842 are as follows: Six Months Ended June 30, 2019 Reported in: Growth and Location Pre-opening Other General & New Market Operating Location Operating Administrative Development (Amounts in thousands) Expenses Expenses Expenses Expenses Expenses Total Lease cost contractually paid or payable for the period $707,075 $ 45,306 $ 3,714 $ 17,900 $ 944 $ 774,939 Non-cash GAAP straight-line lease cost 198,124 218,759 (41) 6,865 231 423,938 Amortization of lease incentives (69,399) (18,628) — (2,011) (6) (90,044) Total real estate operating lease cost $835,800 $ 245,437 $ 3,673 $ 22,754 $ 1,169 $1,108,833 The Company’s total operating lease costs include both fixed and variable components as follows: Six Months Ended June 30, 2019 Reported in: Growth and Location Pre-opening Other General & New Market Operating Location Operating Administrative Development (Amounts in thousands) Expenses Expenses Expenses Expenses Expenses Total Fixed real estate lease costs $694,240 $ 230,740 $ 3,568 $ 21,018 $ 1,116 $950,682 Fixed equipment and other lease costs 1,679 — — 444 448 2,571 Total fixed lease costs $695,919 $ 230,740 $ 3,568 $ 21,462 $ 1,564 $953,253 Variable real estate lease costs $141,560 $ 14,697 $ 105 $ 1,736 $ 53 $158,151 Variable equipment and other lease costs 479 — — — — 479 Total variable lease costs $142,039 $ 14,697 $ 105 $ 1,736 $ 53 $158,630 F-91