Table of Contents WEWORK COMPANIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2018 As of December 31, 2018, the Creator Fund, WeWork Waller Creek, ChinaCo, JapanCo and PacificCo are the Company’s only consolidated VIEs. The Company is considered to be the primary beneficiary as we have the power to direct the activities of the VIEs that most significantly impact the VIEs’ economic performance and the right to receive benefits that could potentially be significant to the VIEs. As a result, these entities remain consolidated subsidiaries of the Company and the interests owned by the other investors and the net income or loss and comprehensive income or loss attributable to the other investors are reflected as redeemable noncontrolling interests and noncontrolling interests on our consolidated balance sheets, consolidated statements of operations, and consolidated statements of comprehensive loss, respectively. The following table includes selected consolidated financial information of our consolidated VIEs as of December 31, 2017 and 2018 and for the years ended December 31, 2017 and 2018, as included in our consolidated financial statements, and in each case after intercompany eliminations. The Company did not have consolidated VIEs during the year ended December 31, 2016. December 31, 2017 December 31, 2018 Asia (1) (1) (2) (Amounts in thousands) JVs Other VIEs Asia JVs Other VIEs Consolidated VIE balance sheet information: Cash and cash equivalents $727,278 $ — $ 813,818 $ 12,210 Property and equipment, net 91,798 — 491,801 — Restricted cash 19,999 — 74,846 — Total assets 935,780 — 2,023,329 46,549 Long-term debt, net — — 9,795 — Total liabilities 92,653 — 597,685 83 Redeemable stock issued by VIEs 900,000 — 1,599,157 3,160 (3) Total net assets (56,873) — (173,513) 43,306 Year Ended December 31, 2017 Year Ended December 31, 2018 (1) (1) (2) (Amounts in thousands) Asia JVs Other VIEs Asia JVs Other VIEs Consolidated VIE statement of operations information: Net loss $ (58,652) $ — $ (373,776) $ (146) Consolidated VIE cash flow information: Net cash used in operating activities (34,179) — (120,831) (71) Net cash used in investing activities (98,190) — (516,814) (23,601) Net cash provided by financing activities 910,634 — 763,229 47,905 (1) The “Asia JVs” include ChinaCo, JapanCo and PacificCo. JapanCo and PacificCo are prohibited from declaring dividends without the approval of an affiliate of SoftBank Group Capital Limited. As a result, any net assets of JapanCo and PacificCo would be considered restricted net assets to WeWork Companies Inc. In addition, certain subsidiaries of ChinaCo are incorporated in China and are subject to laws and regulations of the People’s Republic of China (“PRC”). As a result of local PRC laws and restrictions, assets held by ChinaCo may not be freely transferable to the United States. The net assets of the Asia JVs include preferred stock issued to affiliates of SoftBank and other investors that includes liquidation preferences totaling $900.0 million and $1.6 billion as of both December 31, 2017 and 2018, and is redeemable upon the occurrence of an event that is not solely within the control of the Company. After reducing the net assets of each Asia JV by the liquidation preference associated with the redeemable stock issued, the remaining net assets of each Asia JV is negative. The initial issuance price equals the liquidation preference for each share issued as of December 31, 2017 and 2018. (2) The “Other VIEs” includes all other consolidated VIEs, other than the Asia JVs discussed separately in (1) and include the Creator Fund and WeWork Waller Creek. (3) Total net assets represents total assets less total liabilities and redeemable stock issued by VIEs after the total assets and total liabilities have both been reduced to remove amounts that eliminate in consolidation. The assets of consolidated VIEs will be used first to settle obligations of the VIE. Remaining assets may then be distributed to the VIEs’ owners, including the Company, subject to the liquidation preferences of certain noncontrolling interest holders and any other preferential distribution provisions contained within the operating agreements of the F-28