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Short-Term Borrowings and Long-Term Debt
 12 Months Ended
Dec. 31, 2024
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, 2024December 31, 2023
Maturity DateInterest rate (%)
January 2025 - December 20252.26–5.54$464 $331 $282 
April 2025 - June 2025
TAIBOR + 1.25%
199 151 — 
September 2025
(1)
10 — — 
Total principal short-term borrowings$673 $482 $282 
Less: unamortized discounts(3)— 
Total short-term borrowings$479 $282 
Weighted-average interest rates3.07 %3.49 %
(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.
Taiwan Revolving Credit Facility
In September 2024, a Taiwan subsidiary entered into a new five-year senior unsecured credit facility (the “Taiwan Revolving Credit Facility”) providing for revolving loans in an aggregate principal amount of up to $199 million. The Taiwan Revolving Credit Facility permits the borrower to obtain incremental commitments up to $296 million, subject to customary conditions. Borrowings under the Taiwan Revolving Credit Facility bear interest at a rate per annum equal to the Taipei Interbank Offered Rate (“TAIBOR”) plus 1.25%.
The Taiwan Revolving Credit Facility contains customary affirmative and negative covenants, including certain financial covenants. As of December 31, 2024, there was $151 million balance outstanding on the Taiwan Revolving Credit Facility.
Long-Term Debt
Details of carrying amounts of long-term debt were as follows:
(in millions)
Contractual
Borrowing LimitDecember 31, 2024December 31, 2023
Description
Maturity DateInterest rate (%)
April 2023 Term Loan(1)
Apr 20266.76$156 $156 $178 
Revolving Credit Facility
Feb 2026
(2)
875 — — 
March 2022 Term Loan(1)
Mar 20274.26273 273 310 
August 2021 Term Loan(1)
Aug 20274.90111 111 — 
Farfetch Term Loan
Oct 2027
SOFR
+6.25493 493 — 
Other Term Loan Facilities(1)
Apr 2025 - Nov 20263.78-4.4538 38 247 
Total principal long-term debt$1,946 $1,071 $735 
Less: current portion of long-term debt(66)(203)
Less: unamortized discounts(17)(3)
Total long-term debt$988 $529 
(1)At December 31, 2024, we had pledged up to $717 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 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 contains financial covenants that require us to maintain certain maximum net leverage ratios and minimum liquidity amounts.
Farfetch Term Loans
As part of the Farfetch Acquisition, our subsidiary assumed the then outstanding syndicated Term Loans (“Farfetch Term Loans”) under Farfetch’s existing credit agreement with certain banks and financial institutions of $575 million, inclusive of fees incurred and less $58 million we repurchased upon acquisition. Repayment of the Farfetch Term Loans is due in quarterly installments, of 0.25% of the original principal balance, payable on the last business day of each fiscal quarter. The Farfetch Term Loans mature in October 2027, and early payment is permitted. The Farfetch Term Loans bear interest at a rate equal to SOFR plus 6.25% per annum.
In January 2025, the Farfetch Term Loans were amended to (i) waive technical defaults that resulted from our restructuring actions related to Farfetch subsidiaries in Italy and (ii) require loan prepayment (not to exceed $125 million) from restricted cash proceeds received for Italian VAT receivables and the Limited Partnership in turn extended its commitment to provide the remaining $148 million cash contribution to the earlier of the loan repayment date or April 2028. Coupang, Inc. has not provided any security or guaranty of repayment of the Farfetch Term Loans and is not obligated to provide additional cash funding to Farfetch beyond its share of the Limited Partnership’s remaining commitment.
The Farfetch Term Loans contain customary affirmative covenants as well as customary negative covenants, including, but not limited to, restrictions on certain entities within Farfetch’s ability to incur additional debt, make investments, make distributions, dispose of assets, or enter into certain types of related party transactions. The Farfetch Term Loans are secured against specified assets of the Farfetch group and guaranteed by certain subsidiaries of Farfetch.
We were in compliance with the financial covenants for each of our borrowings and debt agreements as of December 31, 2024.
Future contractual principal payments for long-term debt as of December 31, 2024 were as follows:
(in millions)
Long-term debt
2025$71 
2026201 
2027799 
2028— 
2029— 
Thereafter— 
Total$1,071