Coupang, Inc.CPNG

Coupang, Inc. Leases Disclosure

10-KFiled Feb 26, 20262 min read
Leases
We are obligated under operating leases primarily for vehicles, equipment, warehouses, data centers, office space, and other facilities that expire over the next ten years. These leases can contain renewal options. Because we are not reasonably certain to exercise these renewal options, or the renewal options are not solely within our discretion, the options are not considered in determining the lease term, and the associated potential option payments are excluded from expected minimum lease payments. Our leases generally do not include termination options for either party or restrictive financial or other covenants.
Our finance leases as of December 31, 2025 and 2024 were not material and are included in “Property and equipment, net”, on our consolidated balance sheets.
The components of operating lease cost were as follows:
(in millions)
202520242023
Operating lease cost$703 $595 $457 
Variable and short-term lease cost85 51 42 
Total operating lease cost $788 $646 $499 
Supplemental disclosure of cash flow information related to operating leases were as follows:
(in millions)
202520242023
Cash paid for the amount used to measure the operating lease liabilities$624 $572 $445 
Operating lease assets obtained in exchange for lease obligations$869 $878 $428 
Net increase to operating lease ROU assets resulting from remeasurements of lease obligations$324 $123 $133 
Amounts disclosed for ROU assets obtained in exchange for lease obligations include amounts added to the carrying amount of ROU assets resulting from lease modifications and reassessments, and new leases.
The assumptions used to value operating leases for the periods presented were as follows:
December 31, 2025December 31, 2024
Weighted-average remaining lease term5.9 years6.1 years
Weighted-average discount rate6.74 %7.62 %
As of December 31, 2025, we had entered into operating leases that have not commenced with future minimum lease payments of $689 million, that have not been recognized on our consolidated balance sheets. These leases have non-cancellable lease terms of 1 to 10 years.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 25, 2025
2023Feb 28, 2024
2022Mar 1, 2023
2021Mar 3, 2022

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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