Coupang (CPNG) Q1 2026 10-Q, period ending March 31, 2026, shows a consolidated balance sheet with total assets of $17.4B and total liabilities of $13.5B, producing GAAP stockholders' equity of $3.9B. Under a liquidation lens, recovery to equity is deeply negative. The MFFAIS latest cash liquidation value (CLV) of negative $5.9B and liquid liquidation value (LLV) of negative $5.5B reflect the standard asymmetry: liabilities are carried at face while assets absorb haircuts. Key structural features driving the deficit: (1) Cash of $6.3B recovers at par but is substantially offset by $9.6B in current liabilities at face, including $5.97B in accounts payable, $1.67B in short-term borrowings (including $750M drawn on the Revolving Credit Facility in Q1 2026 for general operating purposes and $928M under other unsecured credit facilities), $557M in current operating lease liabilities, and $840M in other current liabilities. (2) Inventory of $2.0B receives a 60% haircut, recovering approximately $1.2B against full face claim. (3) PP&E net of $3.6B recovers at 50-70%, yielding roughly $1.8-2.5B — the balance sheet is heavily weighted toward operating fulfillment infrastructure that would trade at distressed-asset values in a wind-down. (4) Operating lease ROU assets of $2.8B receive a 0% recovery under the liquidation lens, while corresponding operating lease liabilities of $3.1B ($557M current plus $2.55B noncurrent) remain at face — this single item contributes materially to the negative equity recovery. (5) Intangibles of $178M and goodwill (not separately tagged but implied in the OLV spread vs. LLV) recover at 0%. (6) Deferred tax assets of $597M are assigned 0% liquidation value given uncertainty of realization, consistent with the filing's own disclosure that an additional valuation allowance against US deferred tax assets may be required within 12 months. Since the prior filing (2025 10-K, period end December 31, 2025), the material change is the draw of $750M on the new five-year Revolving Credit Facility, classified in short-term borrowings, which increased the short-term debt stack materially. Stockholders' equity declined from $4.6B at December 31, 2025 to $3.9B at March 31, 2026, driven by the Q1 net loss of $266M (vs. net income of $114M in Q1 2025), a $159M AOCI charge (primarily $160M FX translation loss on KRW-denominated net assets), and $391M in share repurchases. The November 2025 data incident's customer compensation program ($1.2B voucher program, primarily redeemed Q1 2026) is reflected as revenue reductions in the income statement; the filing does not separately tag or balance-sheet-accrue a distinct contingent liability for the incident in XBRL, though regulatory enforcement and litigation exposure is disclosed in MD&A as unquantified contingent risk.
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