Table of Contents WEWORK COMPANIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2018 Note 11. Deferred Rent The deferred rent liability includes the following activity during the years ended December 31, 2017 and 2018: December 31, (Amounts in thousands) 2017 2018 Balance at beginning of period $ 900,731 $ 1,674,730 Additions relating to lease incentives 535,123 819,042 Adjustments for impact of straight-lining of rent 272,927 542,842 Amortization of lease incentives (53,864) (93,835) Effect of foreign currency exchange rate changes 19,813 (39,998) Total at end of period 1,674,730 2,902,781 Less: Current portion of deferred rent (38,143) (71,034) Total long-term deferred rent at end of period $ 1,636,587 $ 2,831,747 See Note 17 for further details regarding the Company’s rent expense and leasing arrangements. Note 12. Long-Term Debt, Net Long-term debt, net consists of the following: December 31, (Amounts in thousands, except percentages) Maturity Year Interest Rate 2018 Senior notes: 2025 7.875% Outstanding principal balance $ 702,000 Less: Unamortized debt issuance costs (16,222) Total senior notes, net 685,778 Other Loans: 2021 - 2026 2.5% - 6.2% Outstanding principal balance 65,742 Less: Current portion of Other Loans (2,706) Total non-current portion Other Loans, net 63,036 Total Long-Term Debt, Net $ 748,814 Senior Notes — In April 2018, the Company issued $702 million in aggregate principal amount of unsecured senior notes due 2025 (the “senior notes”) at a 7.875% interest rate in a private offering pursuant to Rule 144A under the Securities Act and Regulation S under the Securities Act. The Company’s gross proceeds of $702.0 million, from the issuance of the senior notes, were recorded net of debt issuance costs of $17.4 million. The debt issuance costs are deferred and will be amortized into interest expense over the term of the senior notes using the effective interest method. Interest on the senior notes accrues from April 30, 2018, the issue date of the senior notes, and is payable in cash semi-annually in arrears on May 1 and November 1 of each year. The Company may redeem the senior notes, in whole or in part, at any time prior to maturity, subject to certain make-whole premiums. The senior notes mature on May 1, 2025 at 100% of par. F-35