Other Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2023

Related party amounts are reported in the following financial statement line items:


	June 30,		December 31,
(Amounts in millions)	2023		2022
Assets
Current assets:

Accounts receivable and accrued revenue	$	4	$	3

Prepaid expenses	1		1
Other current assets	—		—
Total current assets	5		4






Other assets(1)	75		384
Total assets	$	80	$	388
Liabilities
Current liabilities:
Accounts payable and accrued expenses	$	58	$	86



Deferred revenue	8		2
Current lease obligations	22		13

Other current liabilities	26		2
Total current liabilities	114		103
Long-term lease obligations	279		286
Long-term debt(2)	458		1,650



Other liabilities	15		32

Total liabilities	$	866	$	2,071

(1) In connection with the 2023 Debt Restructuring Transactions, $241 million of unamortized deferred financing costs previously included as a component of other assets were recognized in the net premium included as a component of long-term debt, net of accumulated amortization.

(2) As of June 30, 2023, related party debt had a par value of $458 million and a premium, net of $499 million.


	Three Months Ended June 30,				Six Months Ended June 30,
(Amounts in millions)	2023		2022		2023		2022
Revenue	$	10	$	17	$	21	$	30
Expenses:
Total expenses	12		16		24		35
Interest expense	44		132		124		222

The lease activity for the three and six months ended June 30, 2023 and 2022 for these leases were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(Amounts in millions)	2023		2022		2023		2022
Mr. Neumann
Operating Lease Agreements:
Lease cost expense	$	—	$	—	$	—	$	1
Contractual obligation	—		—		—		1

Finance Lease Agreement:
Interest expense	$	1	$	1	$	1	$	1
Contractual obligation	—		—		1		1

WeCap Investment Group
Operating Lease Agreements:
Lease cost expense	$	10	$	14	$	21	$	31
Contractual obligation	8		9		16		21
Tenant incentives received	—		—		—		5

The Company's aggregate undiscounted fixed minimum lease cost payments and tenant lease incentive receivables for these leases as of June 30, 2023 were as follows:


	Future Minimum Lease Cost(1)		Tenant Lease Receivable
(Amounts in millions)
Mr. Neumann

Finance lease agreement	$	9	$	—
WeCap Investment Group
Operating lease agreements	$	483	$	4

(1)The future minimum lease cost payments under these leases are inclusive of escalation clauses and exclusive of contingent rent payments.

During the three and six months ended June 30, 2023 and 2022, the Company earned additional revenue for the sale of memberships and various other services provided and recognized expenses from related parties as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(Amounts in millions)	2023		2022		2023		2022
Revenue:
SBG(1)	$	6	$	10	$	14	$	21
Other related parties(2)	2		4		3		7


Expenses:
SBG(1)	$	1	$	2	$	2	$	3
Other related parties(2)	1		0		1		—

(1)SBG is a principal stockholder with representation on the Company's Board. SBG and its affiliates utilized WeWork space and services resulting in revenue. Additionally, the Company also agreed to reimburse SBG for all fees and expenses incurred in connection with the SoftBank Transactions in an aggregate amount up to $50 million. In February 2022, in connection with the Company's contribution of its business in Costa Rica to LatamCo (as discussed in Note 8), SBG waived its right to be reimbursed by the Company for $7 million of these obligations. During the three and six months ended June 30, 2023 and the year ended December 31, 2022, the Company made no additional payments on these obligations to SBG. As of both June 30, 2023 and December 31, 2022, accounts payable and accrued expenses included $8 million payable to SBG related primarily to these reimbursement obligations.

(2)These related parties have significant influence over the Company through representation on the Company's Board or are vendors in which the Company has an equity method investment or other related party relationship.