Table of Contents WEWORK COMPANIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2018 The tables below provide a summary of the changes in assets and liabilities recorded at fair value and classified as Level 3: Year Ended December 31, (Amounts in thousands) 2017 2018 Assets: Balance at beginning of period $ 5,372 $ 6,032 Purchases 5,345 63 (1) Issuance of forward contract 94,629 — (1) Redemption of forward contract (94,629) — Fair value adjustment included in income (loss) from equity method and other investments (6,120) — Conversions — (177) Accrued interest income 217 382 Foreign currency translation gains (losses) included in other comprehensive income 1,218 (176) Foreign currency gain (loss) included in net income — (805) Balance at end of period $ 6,032 $ 5,319 Year Ended December 31, (Amounts in thousands) 2017 2018 Liabilities: Balance at beginning of period $ — $ — (2) Additions to contingent consideration liabilities relating to acquisitions — 107,712 (2) Settlements of contingent consideration liabilities through issuance of ChinaCo stock — (43,958) Change in fair value of contingent consideration liabilities payable in stock included in growth and new market (2) development expenses — 80,633 Change in fair value of contingent consideration liabilities payable in cash included in growth and new market (2) development expenses — (4,194) (3) Additions to embedded redemption derivative — 178,784 (3) Change in fair value of embedded redemption derivative — 97,587 Foreign currency translation gains (losses) included in other comprehensive income — 138 Balance at end of period $ — $ 416,702 (1) See Note 19 for further details on the Tranche Right. (2) See Note 6 for further details on the contingent consideration and the related acquisitions. (3) See Note 13 for further details on the embedded redemption derivative. During the year ended December 31, 2018, there were no unrealized gains or (losses) relating to Level 3 assets held as of December 31, 2018. During the year ended December 31, 2018, there were unrealized losses of $97.6 million included in interest expense and $76.4 million of unrealized losses included in growth and new market development expenses relating to Level 3 liabilities held as of December 31, 2018. F-39