review debt securities short-term for impairment. unrealized loss determine decline fair value below amortized cost due to credit-related factors recovery cost. consider market value less than cost failure issuer payments rating credit-related factors credit loss. 2023 2022 allowance credit-related losses investments.


Assets Liabilities Measured Recorded


value financial assets liabilities December 1 2023 Value Measurements Reporting Date Prices Assets Cash equivalents Money market funds Time deposits Short-term investments Asset-backed securities Corporate debt. Treasury Prepaid expenses current assets Foreign currency derivatives Deferred compensation plan assets Liabilities Accrued expenses Foreign currency derivatives


value financial assets liabilities December 2 2022 Value Measurements Prices Assets Cash equivalents Corporate debt securities Money market funds Time deposits Short-term investments Asset-backed securities Corporate debt Foreign government securities Municipal securities. Treasury Prepaid expenses assets Foreign currency derivatives Deferred compensation plan Liabilities Accrued expenses Foreign currency derivatives


Note 4 financial instruments.


fixed income-sale debt securities high quality investment diverse issuers credit rating AA-. value independent matrix pricing market approach methodologies discounted cash flow methodologies. Inputs quoted prices benchmark yields issuer spreads interest rates. Treasury swap curves. categorize income securities Level 2. prices fair values.


values money market funds deposits deferred compensation based prices markets measurement.


-counter derivatives valued pricing discounted cash exchange interest rate.


assets liabilities values carrying values.


Liabilities Measured Nonrecurring


senior notes $3. 39 billion December 1 2023 Level 2. 17.


derivatives offset foreign currency interest rate risk cash flows assets liabilities. trading.


netting arrangements credit risk net settlement. offset fair value. enter collateral security agreements cash collateral value. Collateral posted prepaid expenses assets received accrued expenses Consolidated Balance Sheets.


. Dollars currencies. exchange revenue expenses. 12 months. December 1 2023 2022 cash flow hedges $2. 83 billion $2. 43 billion Euros Indian Rupees British Pounds Japanese Yen Dollars.


June 2019 Treasury agreements. Treasury rates $1 billion future debt issuance. instruments hedged settled 2020. incurred loss amortized interest expense debt due February 1, 2030. Note 17.


December 1 2023 losses foreign exchange contracts 18 $9 million revenue 12. gains $1 million foreign exchange contracts expenses 12 months. losses Treasury lock agreements $5 million interest expense 12.


hedge accounting relationships documented inception effective future cash flows. record changes value hedges income Consolidated Balance Sheets until forecasted transaction occurs. affects earnings reclassify gain loss foreign currency revenue expense Treasury lock cash flow hedge to revenue operating expense interest expense. transaction reclassify gain loss hedge same income hedged. evaluate hedge effectiveness. hedge changes fair value recorded same income line item hedged item.


2023 2022 2021 no gains losses hedges.


derivatives hedging foreign currency contracts assets liabilities non-functional currencies. changes fair value recorded Consolidated Statements Income. Changes assets liabilities offset by related contracts.


December 1, 2023 foreign currency contracts $998 million Euros Indian Rupees British Pounds Australian Dollars. December 2, 2022 $814 million Euros Pounds Rupees. derivatives 180 days.


derivatives prepaid expenses current assets liability accrued expenses Consolidated Balance Sheets. derivative instruments December 1 2023 2022 millions Value Asset Liability hedging instruments Foreign exchange option contracts forward contracts not Foreign exchange forward contracts Total derivatives


Gains derivative instruments tax Statements 2023 2022 2021 millions Derivatives cash flow hedging relationships option contracts forward contracts


effects derivative instruments Statements Income 2023 2022 2021 millions Statement Classification cash flow hedging relationships exchange option contracts Net gain OCI income contracts Net gain income expenses lock Net gain reclassified income expense hedging relationships Foreign exchange forward contracts income


Property equipment December 2023 2022 Computers,352 Buildings improvements Leasehold improvements Furniture fixtures Land Capital projects,761 Accumulated depreciation amortization


2023 2021 $235 $189 $207 million.


Property equipment December 1 2023 2 2022 millions Americas United States Americas EMEA APAC Property equipment


Goodwill millions Media Experience Advertising Goodwill December 3 2021,731,668 Acquisitions Foreign currency Balances December 2 2022,889,500,787 Balances December 1 2023,890,805


intangibles net December 1 2023 2 2022 millions Amount Amortization Customer contracts relationships#1,204 Purchased technology Trademarks(172(54) intangibles net#2,586(1,498)#1,088,700(1,251)


Amortization $375 $405 $354 million 2023 2021. $207 $236 $181 million sales.


intangibles amortized 3 14 years. December 1, 2023 expense five years millions 2024 2025 2026 2027 2028 expense


capitalized research development indefinite until completion abandonment.


expenses December 1 2023 2022 millions bonuses compensation benefits corporate marketing taxes Refund liabilities expenses#1,942


business royalties hosting fees liabilities.


Income before taxes 2023 2022 2021 millions Domestic Foreign,334,050 before taxes#6,799


income taxes 2023 2022 2021 millions federal,198 Foreign State local####926####691 Deferred federal Foreign State local deferred####192 income taxes,371#1,252#883


income tax differed. rate 21% millions Tax expense. rate,198 Tax credits non-U. S. operations Tax settlements State tax expense federal benefit Stock-based compensation Provision income taxes,371#883


tax deferred tax 2023 2022 Deferred tax assets expenses Intangible assets Credit carryforwards Reserves accruals lease liabilities Stock compensation loss Benefits deferred tax assets,117,779 Valuation allowance,377 liabilities Acquired intangible assets Prepaid expenses lease Depreciation amortization deferred tax liabilities


Deferred tax assets liabilities reporting operating loss tax credit carryforwards.


December 1, 2023 state loss tax credit carryforwards $446 million $352 million. federal tax credit carryforwards $80 million. tax credits expire 2024 2040. annual reduced valuation allowance. net realized.


realizability deferred tax assets management determined assets foreign jurisdictions. offset valuation allowance. December 1, 2023 valuation allowance $405 million state credits. fiscal 2023 increase $3 million.


repatriate foreign earnings exempt taxes. December 1, 2023 foreign earnings reinvested deferred tax liability.


2023 2022 changes unrecognized tax benefits millions####2023#321#289 increases decreases) increases current####53 Lapse statute limitations(14) Tax settlements(13)) Foreign exchange gains losses balance##501#321


policy interest penalties tax positions. December 1 2023 2 2022 combined accrued interest penalties long-term taxes.


file federal state local income tax returns globally major jurisdictions Ireland California United States. subject to examination domestic foreign tax authorities 2019 earliest open examination jurisdictions. assess outcomes adjustments. tax estimates reasonable assurance final determination financial position.


timing resolution income tax examinations uncertain tax payments audit settlement process. cause fluctuations tax assets liabilities. next 12 months audits conclude statutes limitations expire. resolution unrecognized tax benefits decrease $60 million next 12 months.


Adobe. 401(k) Retirement Savings Plan U. employees. employees contribute 65% salary IRS limits. matched 50% first 6% compensation. contributed $85 million $76 million $64 million 2023 2022 2021. change practices.


Adobe Inc. Deferred Compensation Plan unfunded non-qualified executives defer annual compensation. Participants contribute 75% base salary 100% compensation commissions bonuses. Board Directors defer directors’ fees elect cash benefit distributions. defer equity awards. payment benefits three years after plan year. cash distributions sum


fifteen-year installments. equity elections lump sum.


deferred compensation invested mutual funds recorded assets Balance Sheets gains losses. Undistributed compensation long liabilities.


1 2023 2022 $206 million $160 million. deferred compensation $222 million $178 million.


stock-based compensation attract incentives officers directors interests. Restricted Stock Units Performance Share Programs


grant stock units performance share awards 2019 Equity Incentive Plan. four years. Compensation Committee.


2023 reserved 64. million shares 2019 Plan 34. million.


Performance Share Programs stockholder value award potential talented. ECC approves terms award calculation methodology. 2023 approved Performance Share Program.


Shares 2023 2022 Performance Share Programs earned stockholder return three-year revenue financial metrics three one-year. weighted 50% achievement determined. Shares awarded until targets defined.


Shares 2021 Performance Share Program stockholder return three-year.


share awards 2023 2022 2021 Programs cliff-vest three-year anniversary vesting ECC certification final performance period contingent service. earn 0% 200% target shares.


December 1 2023 shares 2021 unvested.


Employee Stock Purchase Plan allows purchase common stock discount payroll deductions. twenty-four-month periods four six-month purchase periods. purchase shares 85% market value stock.


market value common stock purchase lower offering participants rolled offering reset price twenty-four month period.


ESPP continue until earlier termination Board Directors shares issued.


December 1 2023 reserved. million shares ESPP. million future.


vesting restricted stock units performance shares purchase ESPP treasury stock. common stock. dilution stock repurchase program. Note 14.


compensation measured grant date value.


restricted stock units valued fair market grant. performance share awards stockholder return Monte Carlo Simulation model. revenue metrics fair market value.


Black-Scholes option pricing model ESPP purchase rights. stock price assumptions variables. stock price volatility employee stock option behaviors risk-free interest rate dividends.


stock unit activity 2023 Shares millions Average Grant Date Value Value millions Contractual Life Beginning balance. Awarded.#376. Released. Forfeited. Ending balance.#418. Expected vest.,276.


value closing stock December 2023 $612.


units 2023 2022 2021 $376. $457. 96 $504. 69. $1. 71 $1. 30. 83 billion.


Performance share activity 2023 Shares millions Average Grant Date Fair Value Value millions Contractual Life outstanding balance. Awarded. Released. Forfeited. outstanding balance. Expected vest.


2023 63% 2020 Performance Share Program ECC quarter.


2023 2022 2021 $437. $402. 24 $325. 24. total $39 million $192 million $212 million.


Employees purchased. million $286. 31,. million $333. 92. $294. 15 2023 2022 2021. intrinsic value $185 million $73 million $256 million. difference market value price.


fiscal 2023 rollover ESPP incremental expense twenty-four-month Consolidated Statements Income.


recognize compensation costs restricted stock units forfeitures service vesting. based value common stock date grant.


costs performance share awards stockholder return recognized net estimated forfeitures performance longer. revenue-based financial metrics recognized net forfeitures expected assessed periodically until certification ECC.


estimate forfeitures grant revise differ. use historical data record stock compensation expected vest.


December 2023 $2. 87 billion unrecognized compensation cost forfeitures non awards recognized. 24 years.


stock-based compensation costs Statements Income 2023 2022 2021 millions revenue#115#70 development marketing administrative#1,718#1,440#1,090


2021 tax stock compensation $299 $291 $395 million.


income activity net taxes 2023 millions 2, 2022 Decrease 1, 2023 gains losses securities(41)) gains losses hedging instruments(31)(26) foreign currency translation adjustments income net taxes(26)


Reclassification adjustments losses securities.


adjustments gains foreign currency hedges revenue expenses Treasury lock hedges interest expense.


Taxes income immaterial fiscal years.


stock repurchase program minimize dilution repurchase market agreements parties. December 2020 Board repurchase $15 billion common stock 2024.


2023 2022 accelerated share repurchase agreements institutions prepayments $1. 4 billion $2. 4 billion. deliver shares remaining settlement. average purchase price share determined Volume Weighted Average Price discount.


2023 2022 2021 stock repurchase agreements large financial institutions provided prepayments $3 billion $4. 15 billion $3. 95 billion. institutions deliver shares monthly determined contracts trading days VWAP discount.


2023 repurchased 11. 5 million shares 7. $429. 65 4. million $348. 46 ASR. repurchased 15. 7 million 10. 4 million $375. 03 5. 3 million $451. 55 ASR. repurchased 7. 2 million $536. 17.


2023 2022 2021 prepayments treasury stock shares delivered December excluded net income share. 2023 $354 million prepayment stock repurchase agreement.


1, 2023 accelerated share repurchase institution prepayment $2 billion 2. 5 million shares 75% prepayment. $2 billion $150 million 2020 authority.


net income per share computed average common shares excluding unvested stock units performance awards. Diluted income shares shares unvested units purchase rights performance share awards treasury stock method. Performance awards.


table basic diluted net income share 2023 2022 2021 millions data Net income,428 Shares basic income. Dilutive shares stock plans programs. diluted income. Basic net income share. Diluted net income share. Anti-dilutive common shares.


purchase obligations. table-cancellable obligations five years December 1, 2023 contracts hosting data center services millions Year Obligations 2024 2025 2026 2027 2028


2023 executed purchase obligations $2. 3 billion 2028.


royalty commitments licensing. expense dollar amount percentage revenue. recorded $246 million $228 million $202 million 2023 2022 2021.


provide indemnifications varying scope to customers channel partners against intellectual property infringement products subject to claims. costs not significant unable estimate maximum impact future results.


permitted Delaware law agreements indemnify officers directors for events serving. indemnification covers events lifetime. maximum future payments unlimited director officer insurance coverage reduces exposure future amounts paid. estimated fair value agreements insurance minimal.


subject to legal proceedings claims intellectual property commercial employment business. disputes include speculative claims damages. consider claims quarterly GAAP assess potential losses. evaluate disclosure requirements accrue financial statements. reviewed discussed with Audit Committee Board Directors.


provision for liability probable loss estimated. provisions reviewed quarterly adjusted impacts negotiations settlements rulings advice legal information events. December 1, 2023 accrued provisions for legal liabilities probable estimable not material to financial statements. no disclosure required claim possibility loss exceeding loss estimate immaterial.


legal costs expensed. unpredictable. believe valid defenses matters. possible financial position results cash flows affected unfavorable resolution proceedings.


June 2022 cooperating Federal Trade Commission Civil Investigative Demand disclosure subscription cancellation practices Restore Online Shoppers’ Confidence Act. November 2023 FTC asserted authority consent negotiations settlement. engaging discussion FTC. defense costs penalties financial results operations. no assurance settlement. remedies compliance requirements affect business financial results. unable estimate financial loss investigation.


October 20, 2023 action Pembroke Pines Firefighters Police Officers Pension Fund. Adobe. Case. 1:23-cv-09260 filed. Southern District New York Adobe officers defendants. purchasers stock July 23, 2021 September 15 2022 statements Adobe competition false misleading. seeks damages attorneys’ fees costs relief.


November 16, 2023 shareholder Shah. Narayen Case. 1:23-cv-01315 filed. District Delaware Adobe. January 3, 2024 second Gervat. Narayen Case. 1:24-cv-00006 filed. Delaware Adobe. current former officers Board Directors defendants Adobe defendant. breach fiduciary duty unjust enrichment waste assets violations 10 Securities Exchange Act 1934 damages attorney’s fees costs disgorgement profits payments benefits improvements corporate governance procedures.


dispute allegations wrongdoing Securities Action Derivative Actions intend defend. complexity uncertain proceedings unable estimate possible financial loss resolve settle Derivative Actions.


disputes third-party intellectual property rights including patent rights subject to claims negotiations complex litigation. disputes costly disruptive attention management technical personnel.


defended past prevail ongoing future. Third-party intellectual property disputes liabilities royalty licensing unfavorable prevent licensing products services injunctions sale cause disruptions operations satisfy indemnification commitments license service agreements.


borrowings December 1 2023 2 2022 millions Date Interest Rate. 70% 2023 2020. 92%. 90% 2025. 07%. 25% 2015 2025. 67%. 15% 2027. 26%. 30% 2030. 69%,300 debt,650,150 Current debt discount issuance costs long,634,629 current debt unamortized discount


issued $1 billion notes 2025. issuance costs amortized. payable semi-annually February August 1.


issued $500 million 2023 2025 $850 million 2027 $1. 30 billion 2030. proceeds $3. 14 billion repayment debt 2020. discount costs amortized interest expense. payable semi-annually February 1 August 1.


quarter 2023 $500 million notes February 1.


senior notes unsecured unsubordinated indebtedness. redeem make-whole premium. change control repurchase equal 101% principal plus accrued interest repurchase. financial covenants grant liens sale leaseback transactions allowances.


January 2023 delayed term loan agreement senior unsecured loan $3. 5 billion partially funding purchase acquisition Figma fees expenses. single drawing closing Figma acquisition


March 15 2024. Term Loan two years no principal amortization. prepaid terminated premium penalty. interest Secured Overnight Financing Rate adjusted daily SOFR base rate. Base federal funds rate. 50% agent’s prime rate term SOFR 1.%. margin. 750% to 1. 250%. base rate.% to. 250%. commitment fees payable quarterly. 040% to. 100% per annum.


Term Loan representations warranties covenants default indemnification Revolving. December 1, 2023 no borrowings.


December 1 2023 Figma merger. Term Loan Credit Agreement terminated. Note 3 Statements Figma.


June 2022 entered credit agreement five-year $1. 5 billion unsecured credit facility replaced previous five-year $1 billion October 2018 Revolving Credit. loans Adobe subsidiaries additional borrowers. obtain additional $500 million maximum commitment $2 billion. loans bear interest term SOFR adjusted daily SOFR alternative currency rate base rate federal funds rate. 50% agent’s prime rate term SOFR 1.%. margin SOFR currency based debt ratings ranges 0. 460% to 0. 900%. facility fees payable commitments quarterly 0. 040% to 0. 100% per annum. reduce commitment. Adobe subsidiaries borrow prepay re-borrow.


Revolving Credit Agreement representations warranties covenants default indemnification lenders. covenants indebtedness merger.


facility amounts due payable maturity date unless commitments terminated earlier default maturity date extended agreement lenders.


borrowings Revolving Credit Agreement.


September 2023 established commercial paper program unsecured $3 billion maturities 397 days. proceeds purposes working capital expenditures acquisitions stock repurchases refinancing. December 1, 2023 no borrowings.


facilities data centers 2032. land 2091. residual value guarantees variable payment restrictive covenants.


lease expense $117 $121 $119 2023 2022 2021. recognized Consolidated Statements Income. costs net sublease income.


cash flow 2023 2022 2021 leases millions paid lease liabilities#97#107#116-of-use assets lease liabilities#32#59#60


term discount rate December 1 2023 6. 50%.


December 1, 2023 maturities lease liabilities millions Year Leases lease liabilities#484 Imputed interest value lease liabilities


binding lease payments December 1, 2023.


Non-operating income 2023 2022 2021 millions Interest expense Investment gains gains losses Unrealized gains gains Other income net Interest income#269#61$#17 Foreign exchange gains losses fixed income investments income#246 Non-operating income net#149(90)(97)


Consolidated Statements Control


audited balance sheets Adobe Inc. subsidiaries December 1 2023 2, 2022 statements income stockholders’ equity cash flows 1 2023. audited control financial reporting 2023 Internal Control Integrated Framework Sponsoring Treadway Commission.


consolidated financial statements present financial position Company December 1 2023 2 2022 results operations cash flows 2023. accounting principles. Company maintained internal control financial reporting 1 2023 Internal Control – Integrated Framework (2013) Commission.


management responsible for consolidated financial statements internal control assessment Annual Report Internal Control Financial Reporting. opinion consolidated financial statements internal control audits. public accounting firm Accounting Oversight Board independent. federal securities laws rules Securities and Exchange Commission PCAOB.


conducted audits PCAOB. standards require plan assurance consolidated financial statements free misstatement error fraud internal control.


audits of consolidated financial statements included risks misstatement error or fraud. examining evidence amounts disclosures. accounting principles estimates management presentation. audit of internal control over financial reporting included understanding risk material weakness testing design effectiveness control risk. other procedures necessary. audits provide reasonable basis for opinions.


internal control over financial reporting assurance reliability financial reporting preparation financial statements for accounting principles. includes policies procedures maintenance records transactions dispositions assets assurance transactions recorded necessary preparation financial statements receipts expenditures with authorizations management directors assurance prevention of unauthorized acquisition use disposition assets financial statements.


limitations internal control financial reporting prevent misstatements. projections effectiveness future risk controls compliance policies deteriorate.


critical audit matter is from current period audit of consolidated financial statements communicated to audit committee relates to accounts disclosures material challenging complex judgments. communication alter our opinion on financial statements not providing separate opinion.


Note 1 financial statements cloud services software licenses Creative Cloud Document Cloud. cloud services licenses not distinct subscription single performance obligation.


performance obligations cloud software critical audit. subjective auditor judgment Creative Cloud Document Cloud benefit integration cloud services on-premise licenses.


primary procedures audit. evaluated design tested effectiveness internal control performance obligations. read Creative Cloud Document Cloud subscription agreements terms conditions. participated product demonstrations interviews product engineering department functionalities promise Creative customers. evaluated features functionalities subscription on-premise-device software connected Adobe cloud benefit.


served auditor.


DISAGREEMENTS DISCLOSURE


management evaluated Chief Financial disclosure controls procedures December 1, 2023. concluded disclosure controls procedures Rules 13a-15(e 15d-15(e) Securities Exchange Act 1934 effective assurance information Annual Report Form 10-K recorded processed summarized reported SEC’s rules regulations accumulated communicated to management timely decisions.


management Chief Executive Financial Officer disclosure controls internal control financial reporting prevent errors fraud. control system reasonable not assurance objectives. design resource constraints benefits relative to costs. limitations no evaluation absolute assurance issues fraud Adobe detected.


management internal control financial reporting Rule 13a-15(f) Securities Exchange Act 1934. assessed December 1, 2023. used criteria Internal Control - Integrated Framework (2013) Treadway Commission. concluded effective.


KPMG LLP audited statements 10-K issued attestation report control reporting.


no changes in control financial reporting quarter ended December 1, 2023.


information Item 10 Form 10-K 2024 Proxy Statement filed SEC Company’s 2024 Annual Meeting Stockholders incorporated. filed SEC 120 days after fiscal year. executive officers Part I Item 1 report.


Item 11 10-K 2024 Proxy Statement.


SECURITY OWNERSHIP STOCKHOLDER


Item 12 10-K 2024 Proxy Statement.


Item 13 10-K 2024 Proxy Statement.


Item 14 10-K 2024 Proxy Statement.


. Financial Statements. Consolidated Financial Statements Part II Item 8 Form 10-K. Exhibit Number Description Date File No. Plan Merger September 15 2022 Adobe. Figma. Saratoga Merger. Fortis Advisors. Certificate Incorporation Adobe. Amendment Restated Certificate Adobe. Restated Bylaws. Common Stock Certificate. Indenture January 25 2010 Adobe Wells Bank. Global Note Adobe. 700% Notes due 2023. 900% Notes 2025. 150% 2027. 300% Notes 2030 Officer’s Certificate terms Notes. Global Note.250% Notes 2025 Officer’s Certificate. Adobe’s Common Stock. Employee Stock Purchase Plan/21. Equity Incentive Plan. RSU Grant Notice Agreement 2003 Equity Incentive Plan. Restricted Stock Unit Grant Notice Agreement 2003. Equity Incentive Plan/23. Performance Share Program Equity Incentive/21. 2021 Performance Share Award Grant Notice Agreement 2021 Share Program 2019 Equity Incentive Plan/21. Performance Share Program Equity Incentive. Performance Share Program Equity Incentive Plan amended/23.Exhibit Date File. 3F 2022 Performance Share Award Grant Notice Agreement 2019 Equity Incentive Plan. Restricted Stock Unit Grant Notice Agreement Incentive Plan awards January 15 2021/26/19. Performance Share Program/23. 2023 Performance Share Award Grant Notice Agreement Equity Incentive Plan/23. 3J Restricted Stock Unit Grant Notice Agreement Plan awards January 15 2021/21. Non Director Grant Restricted Stock Unit Notice Agreement 2019 Equity Incentive Plan/23. Restricted Stock Unit Grant awards January 24 2023/23.Agreement Adobe Shantanu Narayen December 5 2014. Indemnity Agreement. Deferred Compensation Plan Amended Restated. One Adobe Plan. Agreement June 30 2022 Company subsidiaries Bank America. lenders. Inc. 2023 Executive Severance Plan Change Control/23. Executive Annual Incentive Plan/23. 2024 Non-Employee Director Compensation Policy/23. Support Agreement September 15 2022 Adobe. Key Stockholders. Loan Credit Agreement January 19, 2023 Company Bank of America. other lenders./23.Exhibit Number Date File. Commercial Paper Dealer Agreement Company Dealer./23. Agreement December 17, 2023 Adobe. Saratoga Merger. II Figma./23. Registrant. Accounting Firm KPMG LLP. Attorney Annual Report Form 10-K. Chief Executive Officer Rule 13a-14 Securities Exchange Act 1934. Chief Financial Officer Rule 13a-14 Exchange Act. Rule 13a-14 Exchange Act. Chief Financial Officer Rule 13a-14 Inc. Incentive Compensation Recovery Policy. XBRL Instance Interactive Data File XBRL tags XBRL. XBRL Taxonomy Extension Schema.XBRL Calculation. Labels. Presentation. Definition 104 Page Interactive Data File Inline XBRL Exhibit 101


Management compensatory.


certifications Exhibits 32. 2 Annual Report Form 10-K not filed Securities Exchange Commission incorporated Adobe. Securities Act 1933 Act 1934 Form 10-K incorporation.


Section 13 Securities Exchange Act 1934 registrant report signed undersigned. DANIEL DURN Financial Officer Vice President Finance Services Operations


KNOW PERSONS PRESENTS each person signature below Shantanu Narayen Daniel Durn lawful attorneys agents capacities sign amendments report file exhibits documents Securities Exchange Commission ratifying confirming attorneys-in agent do.


Securities Exchange Act 1934 report signed registrant capacities dates. SHANTANU NARAYEN 16, 2024 Board Directors Chief Executive Officer DANIEL DURN Financial Officer Executive Vice President Finance Technology Services Operations GARFIELD Vice President Chief Accounting Officer FRANK CALDERONI 16 CRISTIANO AMON 16 Signature AMY BANSE 16 2024 BRETT BIGGS MELANIE BOULDEN LAURA DESMOND SPENCER NEUMANN KATHLEEN OBERG DHEERAJ PANDEY DAVID RICKS DAN


trademarks Adobe. Form 10-K Acrobat Sign Audition Campaign Experience Express Firefly Fonts Fresco Premiere Scan Sensei Stock Target Effects. Illustrator Optimizer Lightroom Marketo Photoshop PostScript Premiere Designer Modeler Painter Sampler Stager


created next generation experience retail. investing long term customer centricity delivering superior experience lower cost retail standards. efforts building end-to-end technology infrastructure innovation culture expectations


committed delivering “wow” experience customers. drives operations standards retail experience. reimagined Rocket Delivery service Korea Same-Day Delivery. Orders.-Day Delivery. free one-day delivery nationwide 365 days. •Frictionless Returns. tap button leave item outside door pickup. Refunds initiated.


Rocket Delivery Rocket WOW shipping returns 30 days delivery groceries Rocket Fresh discounts Coupang Eats content streaming Coupang Play. success network.


January 2024 acquired Farfetch luxury connects best boutiques brands.


Small Coupang essential business growth win-win model. 75% Coupang merchants SMEs nationwide fulfillment logistics infrastructure millions. supported SMEs marketing logistics customer service. SMEs Private Label Brands high products affordable prices. launched Rocket Overseas Taiwan SME growth Korea no additional effort cost.


merchants sell Coupang improve experiences demand generation. fulfillment logistics Coupang merchants logistics service.


offerings suppliers merchants applications.


compete with retailers suppliers distributors manufacturers producers search engines social networks portals goods retail merchant services grocery on food delivery fulfillment logistics online advertising streaming entertainment financial services companies credit card issuers payment platforms. Coupang, Inc. Form 10-K##4


operating results fluctuate seasonal economic cycles spend attract retain customers.


global team one-of-a-kind experience millions customers. aim. largest private sector South Korea employ 78,000 employees December 31, 2023. direct employment model competitive wages training safety programs benefits empowers “wow” experiences.


employees frontline logistics health safety wellness priority. investments health safety initiatives safety record Korean logistics. include Coupang Care first paid health promotion program logistics. well success business impact customers.


patents trademarks copyrights secrets license agreements confidentiality non-disclosure invention rights.


trademark rights name registrations marks Korea United States Taiwan jurisdictions. registered domain names. variations.


control access proprietary technology confidential information internal controls contractual protections employees contractors customers partners. confidentiality invention assignment agreements employees consultants contractors development intellectual property. agreements third parties limit access disclosure. control terms service.


design logos “Coupang registered trademarks service marks Form 10-K our affiliates’. Form property owners.


Government regulation business. subject to national laws standards regulations Korea U. S. Taiwan China jurisdictions. laws central business interactions customers suppliers merchants. fair trade competition labor employment privacy data protection intellectual property consumer protection import export. regulations complex varying interpretations application judicial decisions.


risk factors Part. Laws Regulation Intellectual Form 10-K.


corporate website. aboutcoupang. investor relations. not incorporated part Form 10-K. relations reports Securities Exchange Commission corporate governance Code Business Conduct Ethics press releases.


Measured fatalities. Coupang.


annual 10-K quarterly 10-Q current 8-K proxy amendments Sections 13 14 15(d Securities Exchange Act 1934. SEC website. reports proxy statements Coupang issuers.


announce business financial information investor relations website filings SEC webcasts press releases conference calls social media. communicate investors public company products issues. information material information. encourage investors review information.


updates channels investor relations page. Coupang. Form 10-K


Investing Class A common stock high risk. consider risks uncertainties information Annual Report Form 10-K “Special Note Forward-Looking “Management’s Discussion Analysis Financial Condition Results consolidated financial statements notes before investment decision. risks uncertainties not. business financial condition results operations prospects affected factors companies globally. risks immaterial affect business financial condition results prospects price Class common stock investment.


business faces risks. Farfetch’s business risks acquisition exposure risks. factors summary principal Class A common stock.risks described in “Risk Factors” section results operations fluctuate difficult predict below expectations manage growth workforce operations new business initiatives business evolving forgo short-term financial performance for long-term growth difficult to evaluate future prospects predict results revenue growth rate history of net losses generate revenues profitability lose services senior management team execute business strategy face intense competition could lose market share if pandemics affect business operations communities operations subject to Korean law Korean affiliates’ officers criminally liable for operations subject to fair trade labor employment workplace safety laws regulations affect operations financial performance costs penalties reputation •harm to Coupang brand brands marks reputation if manufacturers distributors use unethical illegal business practices counterfeit fraudulent products protocols inadequatesanctions penalties acquisition Farfetch creates risk to business financial condition results interruptions delays apps websites errors design faults limited capacity reduced demand processing delays loss customers suppliers merchants failure protect apps websites networks systems security confidential information reputation brand sanctions failure comply with privacy laws customer expectations reputation Coupang, Inc. Form rely on Coupang Pay payment processing. If services limited business expansion geographies challenges risks relations global conflicts affect economies demand dual class structure common stock voting control with. Bom Kim. transactions corporate governance.


history net losses fiscal year may incur losses profitability affect business financial condition prospects.


2023 net losses $. billion $(1. billion 2022 2021 deficit $(4. 4) billion December 31, 2023. profitability profitability. costs expenses increase affect results. intend spend increase customer base merchandise services marketing broaden operations develop fulfillment centers hire employees develop technology infrastructure. increased costs affect expenses. initiatives revenue new unproven failure affect business financial condition prospects.


expect invest longer initiatives impact shorter-term results. expensive encounter technological development delays. face increased compliance costs growth expansion customer base. efforts grow business cost increase revenue expenses profitability.


incur losses risks unforeseen expenses difficulties delays unknown events. achieve profitability value business price Class A common stock decline.


limited history business future prospects revenue growth risks challenges.


limited history evolving business difficult future prospects risks challenges. launched website 2010 mobile application 2011, business markets evolved. forecast future limited subject risks uncertainties growth. rely on financial performance future. factors contribute decline growth rate market saturation increased competition slowing demand global conditions difficulty capitalizing growth opportunities maturation. growth rate declines perceptions price share Class A common stock decline.


consider business prospects risks uncertainties. include •attract new customers higher rates •retain customers motivate purchases •encourage expand categories merchandise services Coupang, Inc. Form 10-K##8 •retain expand network suppliers merchants •manage fulfillment logistics infrastructure deliver orders on time expectations •increase awareness brand protect reputation •respond changes Internet mobile devices challenges competitors •expand business geographies •avoid interruptions develop technology fulfillment infrastructure usage new features •hire integrate motivate retain qualified personnel.


fail address risks uncertainties challenges “Risk Factors” business financial condition results affected.


limited historical financial data business predictions future revenue expenses results may not accurate longer operating history rapidly evolving. encountered future risks uncertainties growing companies limited histories regulated industries fixed expenses. If assumptions incorrect results could differ from expectations business financial condition prospects affected. failure to predict revenue control expenses affect results price per share Class A common stock decline.


experience fluctuations.


revenue results may fluctuate reasons beyond control. include “Risk attract retain increase sales satisfy demands offer merchandise services terms manage inventory fulfill orders competitive stores apps websites services success growth expansion merchandise supplier returns fast free delivery value benefits affecting reputation brand image awareness operations future growth terms timing costs expansion upgrades infrastructure outcomes legal proceedings regulatory investigations damages relief liability sanctions fines suspensions revocations penalties technology content fulfillment temporary costs labor energy packing supplies not resale in laws regulations regulatory practices enforcement countries Coupang, Inc.Form 10-K##9 spyware viruses phishing spam denial service data theft intrusions outages disasters extreme catastrophic epidemics pandemics geopolitical issues terrorist attacks labor disputes macroeconomic conditions.


Fluctuations revenues results operations expectations price Class A common stock decline. revenue growth growth rates decrease. revenue results depend on demand products economic business conditions. softening demand preferences weakening economies affect revenue growth rate business financial condition results prospects price Class A common stock.


fail identify respond customer preferences spending patterns expand products obtain offer appropriate categories products relationship demand products services affected demand decrease affect business financial condition results prospects.


future business performance depends on demand for goods services. popularity products apparel beauty food electronics vary to availability value seasonality societal trends. decline demand affect revenue. surge in demand inflate volume infrastructure throughput capacity. trends cause fluctuations in results. failure to identify consumer preferences spending patterns keep inventory grow Rocket WOW membership program obtain categories products affect relationship demand.


ability identify manage sourcing relationships with stable suppliers acquire products timely cost-efficient critical business. changes failure sourcing relationships affect business financial condition results.


offer customers private-label products apps websites. Selling private-label products subjects risks product liability recalls liability commercial relationships liability incidents failure protect intellectual property third parties harm to reputation brand image other risks private-label products.


unable implement major strategic initiatives maintain improve market position affected.


strategy market position initiatives brand expanding customer base high-quality merchandise services attractive prices customer satisfaction loyalty Rocket WOW membership product offerings apps websites developing personalization tools.


implementing initiatives. unable implement maintain improve market position Coupang, Inc. ##2023 Form 10-K#


competitive position brand reputation affect business financial results.


Farfetch risk business financial.


December 18 2023 acquisition Farfetch Holdings luxury fashion.


January 2024 completed acquisition Farfetch. entails risks disrupt plans benefits sales growth opportunities challenges operating unknown claims limited contractual remedies insurance coverage regulatory risks effect relationships suppliers customers boutiques competitors brand loss management focus businesses risks economic political market factors changes financial markets interest rates foreign exchange rates inflation governmental measures adverse effects market price securities operating results other risks filings SEC. Farfetch internal control financial reporting. risk deficiencies material weakness. annual report Form 20-F Farfetch material weakness internal control financial reporting.


Farfetch investment expenses headcount executive resources ensure. incur accounting charges. credit facilities restrict invest difficult realize benefits. fail operate realize benefits failure adverse effects business financial condition results impairment charges.


fail manage growth business financial results.


experienced growth since expect strategic initiatives. growth management resources. manage growth implement operational plans strategies improve infrastructure train manage employee contractor base.


years increased employee headcount growth business expect continue increase. growth integrate develop motivate new employees corporate culture. intend investments expand sales technology personnel challenging competition.


growth expansion business merchandise services demands management employees. engagement produce apps websites communicate via email mobile communications text. growth may require resources increasing workforce not cost.


manage retraction business. consumer preferences decisions discontinue investments. decisions require reorganize reassign employees. Korean law employment contracts not terminable unless “employer”. employment labor-related claims common. regulations other jurisdictions applicable. fail manage retractions reorganize employees goals employee morale productivity retention suffer business financial condition results operations.


revenue depends payment. failure grow apps websites business revenue. Coupang, Inc. ##2023 Form 10-K


need relationships strategic partners websites online service providers third business. increased complexity managing execution problems revenue margins.


current systems procedures personnel third relationships future operations. failure manage growth relationships affect business financial results.


expansion fulfillment logistics infrastructure business financial results harmed.


believe fulfillment logistics infrastructure vehicles proprietary technology essential success. operate Korea maintain United States Taiwan. developing infrastructure increase storage reduce delivery times improve workflow.


expand operate fulfillment logistics infrastructure delays could experience excess insufficient capacity increase costs charges adverse impacts. end-to-end logistics infrastructure last-mile delivery key competitive advantage. delivery negatively affected introduction competitors legislation legal rulings regulation service business financial condition results operations affected.


fulfillment logistics capacity problems fulfilling delivering orders customers delays harm reputation relationship.


designed built purchased leased our fulfillment logistics infrastructure third-party delivery resources. specific needs business. If add capabilities new offerings change mix merchandise complex operating challenging. Failure to address challenges could purchases affect reputation business financial condition results operations.


anticipate need fulfillment logistics capacity business. assure locate facilities acceptable terms expansion plans. secure facilities control expenses business financial condition results affected.


grow faster exceed fulfillment logistics capacity problems fulfilling delivering orders customers delays purchases harm reputation relationship increase capital expenditures shorter demand financial resources require additional capital. risk factor require additional capital growth not available acceptable terms.


expand fulfillment logistics capacity facilities recruit retain employees Coupang Flex partners Eats Delivery Partners workers no assurance facilities procure personnel. future delays increased costs pandemics endemics disasters extreme weather catastrophic events.


expenses investments fulfillment logistics capacity fixed expansion additional. expect higher capital expenditures business. expenses investments expected sales may. factors affect business financial condition results. Coupang, Inc. Form 10-K##12


operate competitive industry current future competitors negative impact success business.


industry operate competitive expect competition increase. compete with online offline companies traditional discount warehouses home-shopping. Internet mobile networks provide new competitive channels goods services. compete two markets attract customers merchants apps websites. Customers alternatives merchants channels. expect competition intensify. Online offline businesses compete competitors include resources large user communities-established brands. make pricing service marketing decisions acquisitions dissatisfaction reduce activity apps affect results.


face increased competitive pressure online offline. competitive norm service retailers increased to improved customer experience ease lower shipping costs faster times favorable return policies. businesses may offer services. change offerings demands compete larger businesses business financial condition results affected.


Competitors devote marketing aggressive pricing offline shopping websites mobile applications systems. faster efficiently new technologies increase pressures efficient lower-cost services.


competitors control products services important including credit card interchange Internet search mobile operating systems. could better shopping experience apps websites change pricing availability terms service competitive offerings. unable operational changes face higher costs barriers lose customers business financial condition results.


manufacturers may limit cease distribution online apps websites. contractual obligations government regulation prohibit retailers goods services. enforce minimum resale price maintenance arrangements prevent selling apps websites Internet drive prices competitive. policies laws regulations sales force merchants limit selling products apps websites affect loss market share value brand.


competitors have competitive advantages longer histories experience better brand recognition popular locations greater negotiating leverage established supply relationships greater financial marketing resources. marketing brand name business improve infrastructure. inability address competitive pressures business financial condition results.


dependent on management qualified personnel unable attract retain motivate employees business harmed.


success depends services executive officers key management team employees. changes in management team employees from hiring departure. could terminate employment prior notice. loss of failure team to work execute strategy affect business financial condition results operations. Coupang, Inc. ##2023 Form 10-K##13


hire employees business operations expansion. future success depends on recruit train integrate motivate retain qualified personnel. industry high demand competition assure retain qualified staff employees objectives. efforts require time expense attention new hires require training time full productivity. focus developing motivating retaining best employees at-will employees may terminate. employees affected undue turnover.


fail identify recruit integrate strategic personnel business financial condition results. loss senior management team key personnel delay business objectives harm customer relationships. invest cash equity attract retain employees realize returns. prospective employees consider value equity awards. perceived value declines affect recruit retain employees. retain motivate current personnel add retain employees achieve strategic objectives business financial condition results.


culture critical success if maintain culture business.


believe culture customer beginning end decision critical success. face challenges culture potential failure attract retain employees expansion geographies competitive pressures vision values integration new personnel businesses acquisitions acquisition Farfetch. culture business financial condition results affected.


Health epidemics adverse business.


business operations health epidemics impacting geographies communities suppliers.


Health epidemics COVID-19 supply chain disruptions constraints logistics labor costs modification operations adjustments services technology responses.


impact health epidemic depends on factors outside control including severity duration macroeconomic factors economic uncertainty unemployment inflation labor markets •unknown consequences on business performance investment pandemic impact governmental restrictions long-term impact •disruption volatility financial credit markets pace recovery.


expansion geographies offerings increase expose challenges risks.


expanded consumer electronics food grocery financial services private-label brands apparel streaming content travel export import Taiwan. Expansion risks investments. familiarity markets Coupang. Form 10-K


lack customer data new difficult anticipate demand preferences. misjudge demand profitability new market. difficult inspect quality handling storage delivery new. experience higher return rates complaints liability claims harm brand reputation results. need price aggressively market share new categories. difficult achieve profitability new categories profit margin lower affect business financial condition results. assure recoup investments new categories.


harm brand affect business financial results.


recognition brand customers merchants suppliers workforce contributed growth business. Maintaining critical business competitiveness. concerns labor employment disputes consumer protection safety supplier relationships environmental sustainability cybersecurity data security legal risks scrutiny. attention worker safety occupational health regulatory media scrutiny. changes services policies objections public customers suppliers merchants. customer dissatisfaction government inquiries harm brand reputation. social media negative brand events.


perception non-authentic counterfeit defective goods sold apps websites satisfactory customer service damage reputation diminish value brand undermine trust. unable maintain reputation enhance brand recognition increase awareness apps websites products services difficult maintain grow customer base business financial condition results affected.


subject risks sourcing manufacturing.


sales on goods Korea. import operations subject to customs requirements. countries products may quotas duties tariffs restrictions imports modify restrictions. Changes in Korea China United States foreign policies impact business. Imports foreign currency variation increase cost sales. Adverse changes import costs restrictions failure harm business.


operations subject international trade agreements regulations business setting quotas products imported.


import products affected by conditions ports transportation warehousing capacity labor disputes severe weather increased security requirements Korea. delay alternative ports disruption. alternatives available higher costs business financial condition results operations.


import goods impacted trade regulations future customs tariffs quotas maintain diverse deliver impact future revenue growth. Coupang, Inc. ##2023 Form 10-K


operate changing industry business model difficult evaluate business prospects. innovate fail adapt changes business financial condition results affected.


retail industry changing regulatory standards shifting consumer demands. business model evaluating products services. future results uncertain risks growth. changing technology artificial mobile applications products services media entertainment content user-generated changing consumer demands trends. competitors developing personalized search online shopping marketing communications social networking entertainment logistics services. financial performance depends retail trends anticipate customer preferences seasonal trends spending.


invest resources in technology infrastructure research development enhance business operations explore new growth strategies geographies introduce-quality products services. If offer new merchandise services not accepted make fewer sales revenue fall short brand reputation incur expenses not offset by revenue. investments in new categories markets future revenue. If launch new category geography requires investment attract suppliers merchants merchandise revenue grows slowly lower profit results impacted. Expansion strain management operational resources. face competition retailers. difficult differentiate customers considerations. profitability of new lower generate sufficient revenue recoup investments.


investments in innovations technologies increase competitiveness generate financial returns adopting technologies. by regulatory scrutiny. changes industry re-evaluate business model adopt changes long-term strategies plans.


encountered past future risks uncertainties growing companies evolving industries increasing regulation. assumptions business incorrect change address results operations differ expectations business financial condition results affected.


failure to innovate adapt changes effect business financial condition results. innovate may fail realize benefits reduced revenue.


fail retain suppliers add new supply high-quality compliant merchandise timely business financial condition results affected.


depend attract retain merchants high-quality attractive prices keep engaged apps websites. attract retain suppliers owned-inventory selection. continue attract retain increase revenue achieve profitability.


experience supplier merchant attrition decrease volume selection merchandise loss customers competitors. new suppliers purchase merchandise quantities alternative lesser quality expensive. new merchants not offer same selection value. disputes with suppliers merchants quality control policies penalties cause cease business. complaints negative impact brand reputation. Coupang, Inc. ##2023 Form 10-K##16


supplier merchant attrition attract new revenue results. inability purchase merchandise source new suppliers business financial condition results operations.


increase revenue impact.


advertising revenue depends on effective tools for advertisers. New advertising formats impact customer satisfaction sales. advertising market new concepts technology incur additional costs products tools. time resources investment. changes to advertising policies data privacy practices other privacy practices affect advertising harm business. If products tools not received by revenue sales affected.


Inventory risks affect.


exposed to inventory risks affect seasonality new launches cycles pricing defective products demand spending tastes spoilage shrinkage. predict trends overstocking understocking lower sales missed opportunities markdowns business. new product difficult selection forecast demand inventory risk effect business financial condition.


seasonality quarterly results strain.


experienced seasonal fluctuations higher Chuseok Lunar New Year Christmas. holidays lunar sales quarterly. expect seasonal trends results variable. difficult predict fluctuations revenue. Analysis Financial Condition Results Operations. failure stock products fulfillment logistics capacity affect results. overstock inventory markdowns-offs commitment costs lower margins higher labor costs financial performance.


fulfillment costs promotions split-shipments changes arrangements delivery high order volume.


many customers access apps websites increased demand experience interruptions unavailable prevent orders reduce volume goods results. staff fulfillment logistics network delivery partners customer service centers during peak periods impact seasonal peak demand. Risks fulfillment logistics infrastructure expansion business financial condition results. magnified holiday seasons.


expand operations new geographies present challenges affect business.


December 31, 2023 operations United States South Korea Taiwan Singapore China Japan India. expand operations geographies Farfetch Acquisition January 30, 2024 operations Europe Middle East. expansions risks challenges affect business. expansion global luxury goods space Farfetch management resources local cultures business practices laws regulations policies. difficult customer demand. companies not benefit first-to-market advantages. generating revenue business financial condition results affected. Coupang, Inc. ##2023 Form 10-K##17


Acquisitions investments partnerships alliances divert disrupt dilute value affect financial results.


success expand products grow business changing technologies customer demands competitive pressures. complementary businesses organic growth. acquisition candidates difficult time-consuming costly complete acquisitions. completed acquisition Farfetch integrate acquired business.face risks acquisitions acquisition affect financial condition incur charges assume debt liabilities cause adverse tax consequences unfavorable accounting treatment to claims disputes generate financial return costs expenses encounter difficulties unforeseen expenditures integrating business technologies data security products personnel accounting operations company key personnel work disrupt business divert resources increase expenses distract management customer purchases due uncertainty service encounter difficulties selling utilizing acquired products services use cash for acquisitions uses incur debt restrictions financial maintenance covenants issue equity securities stockholders earnings per share decrease losses per increase.


risks adverse effect business financial condition results.


business depends online commerce acceptance customers.


Online commerce developing. future revenue depends on customers suppliers merchants advertisers accepting Internet financial transactions. grow customer base suppliers must new mobile devices. service interruptions prevent apps orders discourage customers harm. no control over costs telecommunications operators. business depends on network mobile infrastructure data center providers technology. interruptions delays errors design faults limited capacity reduced demand processing delays loss of customers suppliers.


Acceptance use Internet critical growth challenges business financial condition results operations.


mobile solutions apps websites marketplaces decline.


Purchases mobile devices increased. suppliers merchants mobile apps websites. unable deliver rewarding experience business suffer. Coupang, Inc. ##2023 Form 10-K##18


new devices operating systems problems developing supporting applications. supporting devices time.


success mobile applications harmed by factors outside control •actions by providers download stores •unfavorable treatment •increased costs •changes in operating systems degrade functionality preferential treatment to competitive products.


merchants customers difficulty accessing using apps websites not business financial condition results operations affected.


Failure fraudulent activities apps losses harm business diminish customer confidence.


face risks fraudulent activities apps websites receive complaints customers goods fraudulent merchants payment manufacturers intellectual property infringed.


implemented measures detect fraudulent activities combat bad experiences increase satisfaction reporting higher-risk activities evaluating merchants history restricting suspending assure fraudulent transactions satisfaction. need evolve fraudulent activities. failure loss trust. additional measures affect offerings create friction experience.


rely Coupang Pay payment processing business. services limited restricted curtailed degraded unavailable business affected.


Coupang Pay digital provides convenient payment processing. services critical to business. rely on convenience ease use. If quality declines attractiveness.


Coupang Pay subject to risks affect payment processing services including •dissatisfaction with services lower use •increasing competition •changes to rules payment systems •breach of privacy negative publicity liability •service outages system failures failure to scale transaction volumes •increasing costs fees revenue •negative news media coverage Coupang Pay data security privacy •failure to manage customer funds loss to fraud security breaches technical errors.


Coupang services regulated. laws rules regulations online mobile payment services. expands international legal risks Coupang, Inc. ##2023 Form 10-K#19


. failure Coupang Pay comply with laws regulations orders fines penalties lawsuits compliance licensure requirements lose licenses increase regulatory scrutiny divert time attention restrict operations friction force changes practices remediation delay transactions product launches improvements. harm reputation damage brands business affect results financial condition.


food energy labor costs affect.


inflation food costs labor benefit rental costs energy costs increased operating costs suppliers independent contractors. factors affecting suppliers contractors beyond control. increased costs cause less time seek alternative sources income. pass costs prices order volume cease operations.


rely merchants experience.


marketplace provides small medium-sized access Korea. products convenience business opportunity. policies protect merchants customers. control merchants third. merchants provide fulfillment delivery orders.


small customers complain experience merchants. customers report received items purchased not represented questions. customer service resources process complaints guarantee resolve all concerns. identify merchants unable fulfill orders expectations.


Negative publicity complaints enforcement action against merchants could reduce attract retain damage reputation. perception responsiveness support inadequate results. reimburse customers recover funds. focus enhancing customer service efforts may unsuccessful disappointed not return.


processing orders delivery harm merchants. Service interruptions delivery delays caused by beyond control transportation disruptions natural disasters inclement weather terrorism health crises political unrest. disruptions negative experiences harm reputation brand. negative experience business financial condition results affected.


program increase expenses.


customer satisfaction program protects from fraudulent transactions items ordered different descriptions. risk loss specific to customers transactions impacted by modifications regulatory requirements. Increases expenses changes impact business. Coupang, Inc. Form 10-K


subject to payment-related risks processors unwilling provide services impose onerous requirements increase fees business financial condition results affected.


accept payments including credit debit cards money transfers Coupang Pay. certain pay bank interchange fees. fees increase operating costs affect results. use third parties payment processing services. business if unwilling provide services. subject to payment card association rules certification requirements rules electronic funds transfers. fail subject to fines transaction fees lose ability accept credit card payments online payments business harmed. payment gateways indemnify liability fraudulent transactions excessive right accept credit cards. business financial condition results.


business mobile infrastructure providers technology. interruptions delays apps errors faults capacity reduced demand delays loss customers suppliers merchants.


key strategy generate high volume traffic on apps websites. reputation customers dependent upon reliable performance apps websites network infrastructure. customer base information grow need increasing network capacity computing power. spent expect on data centers equipment network infrastructure traffic. operation complex could result in operational failures. traffic exceeds capacity network infrastructure customer base grows may incur additional costs network infrastructure. Interruptions delays due to failures viruses break-ins errors design faults could affect security availability apps websites prevent. sustained performance issues reduce attractiveness products services. costs complexities expanding upgrading systems may prevent meeting demand. reduce customer satisfaction.


depend on development maintenance Internet mobile infrastructure. includes reliable speed data capacity security development complementary products. use rely services third parties telecommunications credit card processors outages interruptions. Failures telecommunications interrupt phone support denial-of-service attacks prevent apps websites. third-party credit card processors process online payments orders. business financial condition results affected if Internet telecommunications infrastructure compromised.


offer products apps websites centers Amazon Web Services cloud infrastructure. rely Internet depend operation Internet servers hardware software network infrastructure. operations protecting virtual cloud infrastructure AWS configuration interconnection specifications information third-party. no physical access control services AWS switch. AWS service disruption damage reputation liability customers harm business. incur costs switching alternative cloud services. Damage interruptions harm business. negative publicity reputation impact use apps websites. Coupang, Inc. ##2023 Form 10-K#21


AWS enables us access service offerings varying amounts sizes across multiple regions. provides cloud infrastructure services agreement until terminated. terminate agreement two years’ notice. 30 days’ notice subject to escalation notice if material breach agreement uncured 30 days use security risk third party impacting AWS’ systems subjecting affiliates liability not cured AWS use policy licensing terms restrictions fail resolve dispute payment fees disputed amount not paid within escalation period AWS must efforts complete dispute resolution before terminating agreement comply with law orders. AWS may discontinue service offering 12 months’ prior notice not obligated notice if discontinuation necessary address emergency threat security integrity respond claims loss license rights property comply with law requests government entity.AWS agrees discontinuation us not other customers. Termination suspension AWS agreement service harm access data centers host apps websites similar terms AWS.


rely on e-mail bandwidth Internet mobile networks apps websites. damage failure third-party centers providers apps. lose data miss order deadlines decreased sales overhead costs excess inventory product shortages. arrangements with data centers providers terminated affect business financial condition results. little control over providers increases vulnerability to problems. additional expense new facilities technology services support. failure centers capacity requirements apps websites.


performance reliability availability apps websites systems technology infrastructure critical to reputation customers service. revenue depends on customers apps volume orders. Unavailability reduced order fulfillment sold affect perception brand. slowdown failure apps technology infrastructure harm business reputation.


disaster power loss telecommunications failure data loss computer virus terrorism cyberattack vandalism sabotage war close third-party data centers facilities without notice interruptions apps websites. disaster pandemic blackout Internet connection slowdown delay operations.


hardware data servers offsite data center equipment headquarters. infrastructure systems vulnerable damage war floods fires power loss telecommunications failures human error. limited disaster recovery arrangements preparations third data centers. disaster recovery data redundancy plans inadequate business interruption insurance losses. business financial condition results affected. Coupang, Inc. Form 10-K


business catastrophic.


business infrastructure vulnerable to damage catastrophic occurrences earthquakes floods fires extreme weather power loss telecommunication failures criminal acts sabotage violence vandalism misconduct war civil unrest terrorist attacks geopolitical events disease pandemics. June 2021 fire at Deokpyeong fulfillment center damage delayed delivery. Korean corporate offices data centers seismic activity. disaster problems cloud providers disruptions outages performance quality problems. plans business disaster business.


frequency intensity weather climate change likelihood disasters damage business interruption. long-term impacts change physical transition regulatory costs widespread unpredictable. impacts physical temperature changes heating cooling costs extreme weather production flooding storms buildings inventory. transition risks energy commodity prices macroeconomic consumer spending confidence perception regulatory requirements higher compliance risk operational costs increased insurance costs.


require capital growth business not available acceptable terms.


funded operations since through equity debt financings revenue business. operations cash operations growth. intend continue investments development apps websites expansion commercial offerings require additional funds. need funding for marketing expenses sales resources features marketplace improve infrastructure acquire businesses technologies. need future equity debt financings. Additional financing available terms favorable. financing ability develop apps websites growth financial condition results.


additional debt future restrict conduct operations. raise capital additional equity securities rights senior Class A common stock. decision capital considerations control predict estimate timing future debt equity financings terms.


face risks.


investment policies strategies short long-term investments. include obligations certificates deposit banks funds government securities. subject market interest rate credit liquidity risks market volatility. not insured against loss principal. redeem less than par value. decline value delay suspension operations liquidity financial condition.


credit agreements affect flexibility.


party senior unsecured credit facility credit agreements. limit debt investments restricted payments prepayments indebtedness Coupang,. Form 10-K liens fundamental changes dispositions equity interests.


revolving credit facility contains covenants financial ratios. provisions affect future financing business opportunities flexibility. restrictions affect business financial condition results. failure default lenders declare outstanding principal debt interest due payable. payment amounts accelerated assets insufficient repay stockholders experience loss investment. see “Management’s Discussion Analysis of Financial Condition Results Operations—Liquidity Capital Resources.


material weaknesses reported financial reporting remediated if fail manage future weaknesses could misstatement financial statements.


material weakness is in internal control financial reporting possibility misstatement financial statements prevented. need additional measures including system migration automation measures controls eliminate deficiencies. changes may distract officers employees require expenditures. If future weaknesses controls correct timely ability to record process summarize report financial information accurately periods U. S. Securities and Exchange Commission affected. failure investors confidence in financial reports market price Class A common stock to litigation investigations by New York Stock Exchange SEC Korean authorities regulatory authorities additional financial management resources affect business results.


public reporting company subject to rules SEC NYSE financial reporting. complete improvements timely effective affect investor confidence price per share Class A common stock decline.


public reporting company subject to rules regulations by SEC NYSE. rules require establish evaluate procedures internal control over financial reporting. Reporting obligations on financial management systems processes controls personnel. required to document test internal control Section 404 Sarbanes-Oxley Act management. independent accounting firm required attestation report on. If remediate deficiencies weaknesses subject to regulatory scrutiny loss public confidence reputation price Class A common stock could decline. if maintain adequate financial management personnel processes controls manage business report financial performance could decline. Coupang, Inc. ##2023 Form 10-K##24


public company strain resources divert attention affect board members.


public company subject to reporting Exchange Act corporate governance NYSE securities rules regulations. increase legal accounting financial compliance costs activities difficult time-consuming costly personnel systems resources. Exchange Act requires annual quarterly current reports business. complexity attention affect business financial condition results.


need hire more employees engage consultants increase operating expenses. changing laws regulations standards corporate governance public disclosure uncertainty compliance costs activities time-consuming. laws varying interpretations specificity application evolve. uncertainty higher costs disclosure governance. invested resources evolving laws regulations standards increased expenses diversion time from business to compliance.


changes legal landscape intend continue innovating expand new opportunities. present legal risks. new laws regulations standards differ regulatory initiate legal proceedings business harmed.


disclosure obligations public company business financial condition visible increased risk of litigation competitors third parties. If claims successful business financial condition results if time resources divert resources management affect business financial results. public company subject to heightened governmental scrutiny exacerbate risks.


unable recruit train retain labor costs business affected.


future success recruit train retain qualified personnel technical marketing infrastructure back office operational. industry high demand competition assurance attract qualified skilled employees strategic objectives.


fulfillment infrastructure requires workers positions higher average turnover. shortages labor supply increase labor costs difficult hire deploy. Failure hire retain fulfillment delivery personnel support underperformance disruption. Labor costs Korea increased heightened scrutiny workplace conditions. adjust operations economic conditions political climate business needs. adjustments not challenges improve financial performance.


failure infrastructure risks affect financial conditions operations.


subject fair trade labor employment health safety laws Korea operations financial performance.


workforce thousands contractors. subject laws labor employment hire employ manage train jurisdictions Korea. Coupang. Form 10-K


inspections disputes litigation labor employment laws.


laws operations adopted future. impact new laws failure affect business financial condition results.


Union business.


Constitution Korea provides rights collective bargaining action. workforce unions negotiating bargaining agreements. Unionization partners strikes work stoppages slowdowns business financial.


business accident health disruption.


fulfillment logistics processes last mile delivery regulation. Korean laws safety health obligations employer. Breach penalties criminal sanctions fines corrective orders. Korean Ministry Employment Labor work suspension machinery harmful conditions. breach civil liability. norms safe workplace illness accidents discontent.


maintain liability insurance consistent with industry practice coverage all claims losses accident safety incident delivery. June 2021 fire at Deokpyeong fulfillment center damage write-off 2021. business impacted delay delivery compensation damages. negative publicity workforce safety business prospects financial condition results.


special risks investing Korean companies restrictions government accounting corporate disclosure standards criminal liability officers affiliates.


subsidiary Coupang Corp. Korean. operate business cultural environment different. Foreign Exchange Transaction Act Korea government emergency circumstances disturbance investors approval Minister of Economy Finance capital markets transaction repatriating interest dividends sales proceeds Korean securities transactions. investors hold shares Class A common stock Coupang Corp. adverse risks impact business prospects financial condition results decline price per share.


subsidiaries Korea financial filing. subject disclosure regulators filings local standards. standards differ. GAAP.


Korean law executive officers liable for actions. complaints intellectual property breaches Korean laws. product-related claims investigated prosecuted as criminal offenses company executive officers defendants. risks change over time.


risks Korean affiliates’ executive officers named may criminal investigations. Korea executive officers named common no liability. If officers named criminal proceedings liable business financial condition results harmed. Coupang, Inc. ##2023 Form 10-K##26


Coupang. transactions subsidiaries Korean.


Coupang Corp. enters business relationships with subsidiaries affiliates Korean Fair Trade Commission undue financial support. fair trade laws administrative criminal fine surcharge actions adverse effect on business financial condition results operations.


Korean subsidiary Coupang Corp. Korean law disclosures corporate governance requirements.


Korean subsidiary Coupang Corp. companies designated business group oversight restrictions Korean Monopoly Regulation Fair Trade Act. designation corporate governance public disclosure requirements subsidiary entities executives. create costs compliance regulatory scrutiny risk penalties.


Coupang Corp. subject requirements restrictions Korean law act stockholders’ interest.


Korean law directors company Coupang Corp. fiduciary duty company stockholders. obligates directors duties for good company. if Coupang Corp. with Coupang, Inc. stockholders. act interest Coupang, Inc. stockholders. providing guarantees collateral Coupang. favor. without justifiable cause breach fiduciary duty.


Approval board Korean company required for transactions between director major stockholder company. intercompany transactions between us Coupang Corp. Korean subsidiary could arise directors act interest competing interests. operations conducted by Coupang Corp. occurrence. could affect business financial condition results.


Coupang. transactions Korean tax adverse consequences.


Korean tax law risk Coupang Corp. transactions with subsidiaries affiliates related challenged by authorities not arm’s-length basis. If determine transactions arm’s-length terms deduct include taxable income undue financial support adverse tax consequences affect business financial condition results operations.


regulating copyright patent Infringement Korean scrutiny sanctions fines affect business operations.


Korean government copyright patent infringement luxury brand merchandise. measures sanctions fines affect business. Coupang, Inc. Form 10-K#27


business affected Korean economy uncertainties spending patterns customers.


generated majority revenue from sales in Korea. future performance on economic growth. Adverse developments customer spending revenue growth. economic indicators shown mixed growth uncertainty tied to global economy. adverse volatility financial markets oil commodity prices inflationary pressures interest rates war conflicts terrorism disease outbreaks affected economy. liquidity credit concerns volatility value KRW USD stock prices fluctuated. declines Korea Composite Stock Price Index sales securities by foreign investors repatriation affect value KRW foreign currency reserves companies raise capital. future deterioration affect business financial condition results.


developments impact economy include •declines customer confidence consumer disposable income slowdown spending higher unemployment •adverse conditions important export markets Taiwan China United States Europe Japan emerging market economies deteriorating trade relations uncertainties exit European Union foreign currency reserve commodity prices exchange rates interest rates inflation stock markets •increased sovereign default risk adverse effects global financial markets •investigations Korean business groups misconduct rise household debt delinquencies credit defaults retail emergence Chinese economy relocation manufacturing slowdown growth economy impact free trade agreements labor unrest changes prices Korean real estate decrease tax revenue increase expenditures fiscal stimulus unemployment compensation programs increased budget deficit •financial problems restructuring Korean conglomerates companies suppliers •loss investor confidencecorporate accounting governance issues Korean conglomerates social expenditures aging population economic productivity declining population war geopolitical uncertainty risk attacks severe health epidemics economic diplomatic relations partners allies territorial trade disputes Coupang, Inc. ##2023 Form 10-K##28 •political uncertainty strife tensions oil Middle East North Africa disruption global supply oil increase price North Korea United States tensions Russia adverse effects global supply oil financial markets disasters impact trading partners financial regulations.


exchange rates currency losses.


value KRW currencies USD fluctuated affected political economic conditions. difficult predict market forces. government policy interest rate increases Federal exchange rate.


revenue costs in KRW Chinese Renminbi financial assets in KRW debt in USD. holding company receive dividends loans distributions on equity subsidiaries in Korea. fluctuations in value KRW affect liquidity cash flows. depreciation KRW against USD cost fuel equipment cost servicing debt. significant depreciation KRW against USD results operations. convert KRW into USD for repaying USD debt stock repurchases dividends depreciation negative USD amount. USD into KRW appreciation KRW USD adverse KRW amount.


North Korea business financial results price Class A stock.


Relations North fluctuated. Tension increase events. heightened security concerns North nuclear ballistic missile programs hostile military actions.


economy faces challenges pressures. Since April 2018 held bilateral meetings peace denuclearization peninsula. resumed missile testing tensions outlook uncertain.


tensions North Korean leadership crisis military hostilities. reconciliatory efforts peace talks alleviation sanctions reunification. assure future negotiations agreement North nuclear program tensions. increase tension military hostilities affect business financial condition results decline price Class A common stock.


proposals risks litigation regulation.


subject to changing laws regulations including Korea. KFTC new industries online platform companies. regulations apply Company. additional regulations retail online technology business financial condition results.


regulations consumer online shopping. Implementation business Coupang, Inc. Form 10-K#29


Act Punishment Serious Accidents. effective 2022. imposes enhanced liability criminal businesses managers individuals loss life workplace safety health risk prevention. criminal punishment public disclosure monetary damages damages five times damages. extends liability safety health general managers.


examples business changing regulations. proposals Korean subsidiary Coupang Corp. costs management time focus core business. affect business financial condition results operations.


Coupang. incorporated enforce judgments outside.


Coupang Corp. incorporated Korea directors executive officers reside majority assets personal assets Korea. difficult for investors process United States enforce judgments U. S. civil liability federal state securities laws outside Korea. doubt enforceability in Korean courts. civil liabilities federal state securities laws.


delivery Coupang Eats Rocket Fresh liability illnesses.


Coupang Eats delivers food independent restaurants Rocket Fresh delivers fresh food. ready-to-eat fresh food presents risks food freshness cleanliness quality. food-borne illnesses impact reputation results. Food-borne illnesses food safety issues occurred global food could occur future. customer preferences by health concerns food Rocket Fresh. negative report demand decreased orders. decrease business financial condition results operations.


reliance on third-party food increases risk food-borne illness outside control. If customers ill could suspend Coupang Rocket Fresh businesses. food contamination to additional regulations.


delivery logistics partners exposes potential liability expenses legal claims business financial condition results operations.


face risks delivery services. use independent delivery partners food packages. Coupang Flex contracted Delivery Providers. Coupang Eats delivers food independent restaurants. Third parties assert claims safety incidents. Orders Rocket Delivery Coupang Eats delivered by drivers motor vehicles. may.


independent delivery partners contractors choose provide services at days times convenient free to hold jobs provide vehicle decide no long-term commitment. if classification challenged costs defending could material to business. reclassification change business model Coupang Eats service business financial condition results operations. Coupang, Inc. ##2023 Form 10-K##30


incurred expenses legal claims. frequency unpredictable. experience diversion management result costs investigate defend. claims affect business financial condition results.


suppliers safety intellectual property laws liability damage reputation business.


merchandise apps websites Korean laws. Failure suppliers provide laws product safety intellectual property liability damage increased enforcement legal costs.


merchandise subject recalls actions. recalls lost sales diverted resources harm reputation increased customer service legal expenses business financial condition results.


past fair trade actions false statements apps merchandise quality fined KFTC.


failure merchants laws liability damage reputation brand increased enforcement legal costs.


past subject-party lawsuits complaints suppliers’ merchants’ parallel importing allows merchandise brand Korea purchased valid source outside supply chain documented. assure defending claims.


received may communications alleging items infringe third-party copyrights trademarks names intellectual property rights. sought listings goods may listed held liable claiming. management team sales pirated counterfeited prohibited regulated faulty merchandise services items may listed sold apps subject lawsuits sanctions fines penalties affect business. “Risks Related to Intellectual accused infringing property rights.


regulation Internet retail mobile commerce evolving unfavorable affect business financial.


subject to business regulations Internet online retail mobile commerce. Existing proposed future regulations could change liabilities impede growth. involve taxes tariffs consumer protection competition antitrust privacy security anti-spam content protection electronic contracts gift cards. laws property ownership fair trade sales taxes consumer privacy apply Internet adopted Internet issues Internet retail mobile commerce. failure comply laws damage reputation business proceedings. reputation defense management increase costs decrease use apps monetary liability. liable to indemnify third parties from costs non-compliance.


failure protect apps websites networks confidential reputation brand business financial results.


business employs websites networks systems data customers merchants suppliers advertisers confidential proprietary. rely encryption authentication information. security breaches incidents result inadvertent use disclosure information access inadvertent exposure customer information App upgrade 2021 remediated hour. Coupang, Inc. ##2023 Form 10-K##31


websites networks systems subject to security threats hacking denial-of-service viruses malicious software ransomware break-ins phishing social engineering security breaches disruptions security information. risks extend to apps networks third services providers customers contractors business partners vendors. techniques unauthorized access change sophisticated known until launched difficulty detecting defending. increase frequency security threats expect. Geopolitical tensions Russia Ukraine adoption artificial heighten risk cyber security. breaches occur non-technical issues intentional inadvertent breaches employees commercial relationships. reputation brand business expend capital risk loss litigation regulatory action liability. attacks costs deploy personnel train third-party experts consultants.compromise breach security measures violate privacy data security laws financial exposure adverse publicity loss confidence business financial results.


subject to regulations privacy use confidential information including Korea’s Personal Information Protection Act China’s Personal Information Protection Act Act Promotion of Information Communications Network Utilization Protection Information Act Credit Information Act Korea sensitive personal information. PIPA requires consent use data prevent data breaches notify Personal Information Protection Commission data breach incidents within 24 hours. Failure to comply with PIPA to personal liability violators face penalties to imprisonment. strive to comply with PIPA privacy policies review update policies practices. rules complex evolving to risk of claims failure. failure to comply with policies could affect reputation brand business result in claims criminal against us. could hurt reputation brand business expenses distract management increase costs loss customers business financial condition results operations.


subject to data privacy laws collection use retention disclosure personal information California Consumer Privacy Act California Privacy Rights Act similar laws European Union General Data Protection Regulation. potential effects far-reaching modify data processing practices incur costs foreign jurisdictions changes business operations impact. privacy laws penalties noncompliance.


liable to indemnify third parties from costs non-compliance laws regulations obligations privacy consumer protection use disclosure data. legislative regulatory bodies expand change laws enact new rules privacy data protection consumer protection. changes force costs change business practices. growth strategy harm affect business financial condition results.


providers devices browsers implemented prevent cookies block tracking technologies third-party cookies tracking less effective. regulation cookies tracking advertising practices loss Coupang, Inc. ##2023 Form 10-K##32


services affect business financial results operations.


subject litigation audits inspections proceedings liability expenses harm.


claims audits inspections investigations legal proceedings employment labor classification pay hours benefits relations bargaining authorization worker safety intellectual property product safety injury privacy information security tax import exchange licenses permits food safety medical drugs financial services antitrust securities fair trade consumer protection environmental. operations Korea Antitrust Fair Trade.


Legal proceedings uncertain judgment ruling fine penalty relief adverse settlement reputation sanctions injunctions affect business financial condition. claims against time-consuming costly harmful management attention divert resources. contractual obligations indemnify incur legal expenses partners directors officers.


anti-corruption-money laundering laws penalties adverse consequences.


operate global business interactions with officials government agencies state-owned entities. subject to anti-bribery-money laundering laws countries. laws prohibit companies intermediaries promising improper payments to foreign officials political parties private-sector recipients obtaining business securing advantage. U. S. public companies maintain records internal accounting controls. foreign countries local custom practices prohibited by laws. face risks comply impose fines penalties business reputation financial condition.


implemented anti compliance program policies procedures training employees consultants contractors agents policies law. violation reputation business results prospects.


violation anti-corruption laundering whistleblower complaints media investigations loss export privileges sanctions reputation business financial performance. enforcement diversion defense costs fees.


subject trade sanctions violations liabilities penalties consequences.


subject to governmental economic trade sanctions laws regulations countries restrict transactions sale supply sourcing products with governments persons entities countries territories including target sanctions. may violate sanctions laws regulations. submit disclosures violations to authorities review.


economic trade sanctions laws administrative fines penalties remedial obligations. affected penalties business disruption reputational harm loss access markets. change laws enforcement Coupang, Inc. Form 10-K


government persons targeted regulations impact transactions harm business.


failure comply laws changes legal uncertainties affect business financial performance growth.


business financial performance by changes laws new Internet retail sales advertising consumer protection economic trade sanctions tax payments foreign exchange regulations banking data security network data protection privacy. regulatory authorities prevent suspend activities penalize requirements. Unfavorable changes decrease demand limit marketing affect margins increase costs liabilities.


increasing laws regulations Internet retail sales liability information taxes fees content privacy data security network advertising taxation third quality services consumer protection. growth online retail consumer protection laws aggressive enforcement burdens businesses.


law liability online service providers unsettled. Lawmakers could require changes business increased legal liability for online retailers providers. Unfavorable regulations laws decisions interpretations authorities could costs civil liability penalties increase cost change business practices damage reputation impede growth on operations.


results financial condition affected regulation costs.


business subject to laws regulations. stringent. increased costs pollution control liabilities noncompliance standards. New regulations storage transportation delivery impact operations costly. owner commercial real estate subject to liability under environmental laws for clean-up contamination. identified all contamination obligations responsible for additional contamination. possible material costs liabilities incurred damages property environment. Unfavorable changes failure increased costs laws affect financial condition.


climate change agreements legislation greenhouse emissions cap trade carbon taxes permitting fuel efficiency standards renewable energy requirements disclosures pressure stockholders ratings agencies third parties. regulatory requirements. measures costs restrictions capital expenditures waste energy reduction compliance costs workforce initiatives impact business financial condition. failure non-compliance loss business reputational impacts diluted market valuation customers talent. Coupang,. Form 10-K


protect intellectual property rights accused infringing.


protection intellectual property rights financial managerial operational resources. steps may not prevent third parties. current future patents trademarks rights may be challenged invalidated. pending patent trademark applications may granted. patent protection expensive time-consuming compensation damages limited. obtain all patent trademark applications reasonable cost timely. issued patents trademarks protect property legal standards case-by-case difficult to predict results litigation. others may develop acquire equivalent superior technology property rights. prevent third parties infringing violating. litigation expense efforts management personnel affect business financial condition results operations.


terms of use prohibit counterfeit infringing third intellectual property rights implemented measures exclude goods detect remove every item rights. received complaints alleging items apps websites infringe intellectual property rights could lead to disputes lawsuits.