WeWork's Net Operating Loss Carryforwards
As of December 31, 2021, WeWork possessed approximately $6.9 billion in U.S. federal NOLs and $6.6 billion in state NOLs. According to a company statement, these figures could offset the company's future federal and state taxable income.
WeWork Reduces Debt Amid Business Challenges
To conserve cash during mass layoffs impacting its business, WeWork secured deals last month to reduce debt by around $1.5 billion and prolong the maturity date of certain debts. The flexible-workspace provider has been affected by the ongoing economic uncertainty.
Adapting to an Evolving Workspace Landscape
WeWork, a company offering workstations, private offices, and customized floor plans, initially benefited from the pandemic-driven shift to flexible work arrangements outside traditional offices. However, the company is now preparing for the potential consequences of a likely economic downturn.
Tax Asset Preservation Plan Details
The Tax Asset Preservation Plan seeks to reduce the chances of an "ownership change" at WeWork by discouraging individuals or groups from acquiring beneficial ownership of 4.9% or more of the company's outstanding Class A common stock, the company explained.