Short-term Borrowings and Long-term Debt

6 Months Ended

Jun. 30, 2026

Debt Disclosure [Abstract]

Short-term Borrowings and Long-term Debt

Short-term Borrowings and Long-term Debt

Short-term Borrowings

Revolving Credit Facility

The Revolving Credit Facility provides for syndicated, unsecured revolving loans with a total borrowing capacity of up to $1.5 billion. Borrowings under the Revolving Credit Facility bear interest at a rate per annum equal to the applicable benchmark rate, including but not limited to Term SOFR, plus an applicable margin ranging from 0.75% to 1.25%. The Revolving Credit Facility contains customary affirmative and negative covenants, including certain financial covenants. During the six months ended June 30, 2026, we borrowed $750 million under the Revolving Credit Facility for general operating purposes and $750 million was outstanding as of June 30, 2026 and is included in “Short-term borrowings”.

Other Credit Facilities

In June 2026, certain of our Korean subsidiaries entered into new unsecured revolving credit facilities with maturity dates in June 2027 and amended an existing credit arrangement with a maturity date in April 2027. The facilities are available for general working capital purposes and provide for aggregate borrowing capacity of approximately $193 million. Borrowings bear interest at floating rates ranging from the Korean certificate of deposit rate plus 1.20% to plus 1.50%. These revolving credit facilities contain customary terms and conditions, including certain affirmative and negative covenants. As of June 30, 2026, there were no amounts outstanding under any of these facilities. During the six months ended June 30, 2026, certain other subsidiaries entered into various unsecured borrowings under other revolving credit facilities, the majority of which mature within twelve months. These credit facilities contain customary affirmative and negative covenants, including certain financial covenants.

Under all other credit facilities, total borrowing capacity at June 30, 2026 was $1.6 billion and aggregate outstanding borrowings totaled $1.2 billion with a weighted average interest rate of 2.89%.

Long-term Debt

Our long-term debt is recorded at amortized cost. The fair value is estimated using Level 2 inputs based on our current interest rates for similar types of borrowing arrangements. The carrying amount of long-term debt approximates its fair value as of June 30, 2026 and December 31, 2025 due primarily to the interest rates approximating market interest rates.

We were in compliance with the financial covenants for each of our borrowings and debt agreements as of June 30, 2026.