Table of Contents WEWORK COMPANIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2018 Year Ended December 31, 2017 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 Rent contractually paid or payable $ 347,305 $ 6,973 $ 317 $ 4,409 $ — $ 359,004 Adjustments for impact of straight-lining of rent 162,313 108,285 — 2,329 — 272,927 Amortization of lease incentives (51,097) (2,407) — (360) — (53,864) Total rent expense $ 458,521 $ 112,851 $ 317 $ 6,378 $ — $ 578,067 Year Ended December 31, 2018 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 Rent contractually paid or payable $ 672,421 $ 51,334 $ 4,112 $ 14,325 $ 277 $ 742,469 Adjustments for impact of straight-lining of rent 268,125 268,593 36 5,209 879 542,842 Amortization of lease incentives (88,867) (3,759) — (1,208) (1) (93,835) Total rent expense $ 851,679 $ 316,168 $ 4,148 $ 18,326 $ 1,155 $ 1,191,476 Note 18. Income Taxes U.S. Income Tax Reform The Tax Cuts and Jobs Act (the “Tax Act”) was enacted on December 22, 2017 and introduced significant changes to U.S. income tax law. Effective in 2018, the Tax Act reduced the U.S. corporate statutory tax rate from 35% to 21%, allowed for immediate expensing of certain qualified capital property, and eliminated the net operating loss carryback but allowed for indefinite net operating loss carryforwards that can reduce up to 80% of taxable income. In addition, the Tax Act imposed a one-time mandatory tax on previously deferred foreign earnings and created a new limitation on the deductibility of interest expense. The US Treasury issued several proposed regulations supplementing the Tax Act in 2018, including further guidance clarifying the calculation of the mandatory tax on previously unrepatriated earnings, interest expense limitations under Internal Revenue Code (“IRC”) Section 163(j), application of the existing foreign tax credit rules, and expanding details for application of the base erosion tax on affiliate payments. Accounting for the income tax effects of the Tax Act requires significant judgments and estimates in the interpretation and calculation of the provisions of the Tax Act. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, we made reasonable estimates of the effects of the Tax Act in our financial statements for the year ended December 31, 2017, as permitted under Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act, which was also included in ASU No. 2018-05, Income Taxes (Topic 740), Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (“SAB 118”). As a result of the Tax Act, the Company recorded a U.S. deferred tax benefit of $7.0 million for the year ended December 31, 2017. The U.S. deferred tax benefit consisted of a $3.2 million deferred tax benefit related to the F-42