XML 39 R20.htm IDEA: XBRL DOCUMENT v3.24.0.1
Short-Term Borrowings and Long-Term Debt
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Short-term Borrowings and Long-Term Debt Short-Term Borrowings and Long-Term Debt
Short-Term Borrowings
Details of carrying amounts of short-term borrowings were as follows:
(in millions)
Borrowing LimitDecember 31, 2023December 31, 2022
Maturity DateInterest rate (%)
September 2024
(1)
$23 $— $— 
January 2024 - December 20242.10–5.70283 282 176 
Total principal short-term borrowings$306 $282 $176 
Less: unamortized discounts— (1)
Total short-term borrowings$282 $175 
Weighted-average interest rates3.49 %4.27 %
(1)The interest rate is based on an average of AAA rated financial bonds rate in Korea plus 1.35%.
Our short-term borrowings generally include lines of credit and loan facilities with financial institutions to be drawn upon for general operating purposes.
Long-Term Debt
Details of carrying amounts of long-term debt were as follows:
(in millions)
Maturity DateBorrowing LimitDecember 31, 2023December 31, 2022
Description
Interest rate (%)
Revolving Credit Facility
Feb 2024
(2)
$1,000 $— $— 
Revolving Credit Agreement
Nov 2024
CD interest rate (91 days) + 2.30
124 — — 
August 2021 Term Loan(1)
Aug 20243.16155 155 158 
April 2023 Term Loan(1)
Apr 20266.76178 178 — 
March 2022 Term Loan(1)
Mar 20274.26310 310 316 
Other Term Loan Facilities(1)
Aug 2024 - Nov 20263.68-6.0092 92 196 
Total principal long-term debt$1,859 $735 $670 
Less: current portion of long-term debt(203)(129)
Less: unamortized discounts(3)(3)
Total long-term debt$529 $538 
(1)At December 31, 2023, we had pledged up to $882 million of land and buildings as collateral against long-term loan facilities.
(2)Borrowings under the 2021 revolving credit facility bear interest, at our option, at a rate per annum equal to (i) a base rate equal to the highest of (A) the prime rate, (B) the higher of the federal funds rate or a composite overnight bank borrowing rate plus 0.50%, or (C) an adjusted Term Secured Overnight Financing Rate (SOFR) for a one-month interest period plus 1.00% or (ii) an adjusted Term SOFR plus a margin equal to 1.00%.
Revolving Credit Agreement
In October 2022, we entered into a two-year Revolving Credit Agreement with a borrowing limit of $124 million that bears interest at the average of 91-day CD interest rate plus 2.30%. The Revolving Credit Agreement is secured by $508 million of inventories.
Revolving Credit Facility
In January 2024, our senior unsecured credit facility (“the Revolving Credit Facility”) was amended to extend the maturity date to February 2026 and to bring the aggregate principal amount to $875 million. The Revolving Credit Facility continues to provide us the right to request incremental commitments up to $1.25 billion, subject to customary conditions.
The Revolving Credit Facility contains customary affirmative and negative covenants, including certain financial covenants. The Revolving Credit Facility is guaranteed on a senior unsecured basis by all our material restricted subsidiaries, subject to customary exceptions.
The Revolving Credit Facility and Revolving Credit Agreement both contain financial covenants that require us to maintain certain maximum net leverage ratios and minimum liquidity amounts.
Term Loan Facility Agreements
In April 2023, we entered into a new three-year term loan facility agreement to borrow $178 million to finance the purchase of a fulfillment center and land. We pledged up to $214 million of certain land and buildings as collateral. The loan bears interest at a fixed rate of 6.76%.
We were in compliance with the covenants for each of our borrowings and debt agreements as of December 31, 2023 and 2022.
Future principal payments for long-term debt as of December 31, 2023 were as follows:
(in millions)
Long-term debt
2024$203 
2025— 
2026222 
2027310 
2028— 
Thereafter— 
Total$735