What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2022-02-18 compared with 2021-02-19 · 215 added, 190 removed, 1081 unchanged (27% of the section changed)

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We present the information required by Item 8 of Form 10-K here in the following order:

Report of Independent Registered Public Accounting Firm

Report of Independent Registered Public Accounting Firm (PCAOB ID 238 )

Consolidated Statements of Income — Years ended December 31, 2021, 2020 and 2019

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Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Change in Accounting Principle

As discussed in Note 1 to the consolidated financial statements, the Company changed the manner in which it accounts for leases in 2019.

Basis for Opinions

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Restricted cash 962 1,007

Short-term investments (amortized cost of $ 133,744 in 2020)

Short-term investments (amortized cost of $ 251,959 and $ 133,744 , respectively)

251,530 133,769

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Capital expenditures payable 210,875 181,339

Short-term operating lease liability 64,233 49,748

Accrued expenses 422,892 299,459

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Share-based compensation — — 8,030 — — — — 8,030 — 8,030

Cash dividends declared ($ 0.04 per common share)

— — — ( 9,713 ) — — — ( 9,713 ) — ( 9,713 )

Subsidiary dividends to noncontrolling interests — — — — — — — — ( 601 ) ( 601 )

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Share-based compensation — — 10,970 — — — — 10,970 — 10,970

Cash dividends declared — — — ( 9,713 ) — — — ( 9,713 ) — ( 9,713 )

Cash dividends declared ($ 0.17 per common share)

— — — ( 41,558 ) — — — ( 41,558 ) — ( 41,558 )

Subsidiary dividends to noncontrolling interests — — — — — — — — ( 602 ) ( 602 )

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Other, net 13,752 ( 779 ) 4,394

Changes in assets and liabilities, net of acquisitions:

Changes in assets and liabilities:

Accounts receivable ( 298,854 ) ( 106,693 ) ( 124,140 )

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Proceeds from insurance recovery for property, plant and equipment 104 — 1,538

Proceeds from foreign exchange forward contracts 16,608 49,226 13,550

Payments for foreign exchange forward contracts ( 69,835 ) ( 14,031 ) ( 15,593 )

Payments for short-term investments ( 414,208 ) ( 535,368 ) ( 5,935 )

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Proceeds from maturities of short-term investments 204,679 159,015 6,469

Proceeds from foreign exchange forward contracts 49,226 13,550 6,754

Payments for foreign exchange forward contracts ( 14,031 ) ( 15,593 ) ( 5,864 )

Other investing activities 8,122 4,574 ( 202 )

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Proceeds from issuance of stock through share-based compensation plans 12,787 17,611 11,405

Payment of dividends ( 51,213 ) — —

Other financing activities ( 2,548 ) ( 1,770 ) ( 1,001 )

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Amkor is one of the world’s leading providers of outsourced semiconductor packaging and test services.

Amkor pioneered the outsourcing of semiconductor packaging and test services through a predecessor corporation in 1968, and over the years we have built a leading position by:

Amkor was a pioneer in the outsourcing of semiconductor packaging and test services, and over the years we have built a leading position by:

• Designing and developing innovative packaging and test technologies;

• Offering a broad portfolio of cost-effective solutions and services;

• Focusing on strategic end markets that offer solid growth potential;

• Cultivating long-standing relationships with our customers, which include many of the world’s leading semiconductor companies;

• Collaborating with customers, original equipment manufacturers (“OEMs”) and equipment and material suppliers;

• Developing a competitive cost structure with disciplined capital investment;

• Collaborating with customers, foundries, original equipment manufacturers (“OEMs”) and equipment and material suppliers;

• Building expertise in high-volume manufacturing processes and developing a reputation for high quality and solid execution;

• Providing a geographically diverse operating base, with research and development, engineering support and production capabilities at various facilities in China, Japan, Korea, Malaysia, the Philippines, Portugal and Taiwan.

• Providing a geographically diverse operating base;

• Focusing on strategic end markets that offer solid growth potential;

• Developing a competitive cost structure through disciplined capital investment.

Basis of Presentation

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generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.

On an ongoing basis, we evaluate our estimates, including those related to acquisitions, revenue recognition, income taxes, inventory, long lived assets and contingencies.

On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, income taxes, inventory and long lived assets.

These estimates are based on management’s best knowledge of current events, historical experience, actions that we may undertake in the future and on various other assumptions that are believed to be reasonable under the circumstances.

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As of December 31, 2021, the combined book value of the assets and liabilities associated with these Philippine realty corporations included in our Consolidated Balance Sheet was $ 17.2 million and $ 0.1 million, respectively.

The impact of consolidating these variable interest entities on our Consolidated Statements of Income was not significant, and other than our lease payments, we have not provided any significant assistance or other financial support to these variable

The creditors of the Philippine realty corporations have no recourse to our general credit.

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

interest entities for the years ended December 31, 2020, 2019 or 2018.

The creditors of the Philippine realty corporations have no recourse to our general credit.

Foreign Currency Translation

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Income and expenses are translated into U.S.

dollars at average exchange rates in effect during the period.

dollars at the daily exchange rate.

The resulting translation adjustments are reported as a component of accumulated other comprehensive income in the stockholders’ equity section of the balance sheet.

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A significant portion of our revenues is concentrated with a small group of customers (Note 18).

Direct sales to our largest customer increased during 2020 and accounted for 14.5 % of our net revenue for the year ended December 31, 2020.

Direct sales to our largest customer accounted for 13.7 % of our net revenue for the year ended December 31, 2021.

The loss of a significant customer, a business combination among customers, a reduction in orders or decrease in price from a significant customer or disruption in any of our significant strategic partnerships or other commercial arrangements could have a material adverse effect on our business, liquidity, results of operations, financial condition and cash flows.

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We have historically mitigated our credit risk with respect to cash and cash equivalents through diversification of our holdings into various high quality money market funds and bank deposit accounts.

Our short-term investments are principally investments in debt securities with maximum duration of twelve months and ranges from AAA to BBB rated financial instruments.

Our short-term investments are primarily in direct obligation of the US Government or its agencies, corporate bonds, asset backed securities, commercial paper, and municipal bonds.

At December 31, 2020, our cash and cash equivalents were maintained in various U.S.

Our short-term investments are principally investments in debt securities with maximum duration of eighteen months and ranges from AAA to BBB rated financial instruments.

Our short-term investments are primarily in direct obligations of the US Government or its agencies, corporate bonds, asset backed securities, commercial paper, and municipal bonds.

At December 31, 2021, our cash and cash equivalents were primarily maintained in various U.S.

and foreign bank operating and time deposit accounts and invested in U.S.

money market funds.

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

Contingencies and Litigation

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We accrue for a loss contingency, including legal proceedings, lawsuits, pending claims and other legal matters, when we conclude that the likelihood of a loss is probable and the amount of the loss can be reasonably estimated.

When the reasonable estimate of the loss is within a range of amounts, and no amount in the range constitutes a better estimate than any other amount, we accrue for the amount at the low end of the range.

When the reasonable estimate of the loss is within a range of amounts, and no amount in the range constitutes a better estimate than any other amount, we

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

accrue for the amount at the low end of the range.

We adjust our accruals from time to time as we receive additional information, but the loss we incur may be significantly greater than or less than the amount we have accrued.

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We consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.

Our cash and cash equivalents are maintained in various U.S.

Our cash and cash equivalents are primarily maintained in various U.S.

and foreign bank operating and time deposit accounts and invested in U.S.

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Cost is principally determined by standard cost or the weighted moving average method, both of which approximate actual cost.

We review and set our standard costs as needed, but at a minimum on an annual basis.

We review and set our standard costs as needed, but at a minimum on a quarterly basis.

We reduce the carrying value of our inventories for the cost of inventory we estimate is excess and obsolete based on the age of our inventories.

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As of December 31, 2021 and December 31, 2020, the short-term portion of the liability was $ 117.7 million and $ 30.3 million, respectively.

The remainder of the December 31, 2021 contract liability balance is expected to be recognized in revenue over the next 1 - 3 years.

Revenue recognized during the year that was included in the contract liability balance at the beginning of the period was $ 29.0 million, $ 14.1 million, and $ 16.4 million, for 2021, 2020 and 2019, respectively.

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In evaluating our ability to recover our deferred tax assets in the jurisdictions from which they arise, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies and recent results of operations.

For most of our U.S.

and foreign deferred tax assets, we consider it more likely than not that we will have sufficient taxable income to allow us to realize these deferred tax assets.

With exception of a certain foreign jurisdiction and select U.S.

and foreign carryforwards, we consider it more likely than not that we will have sufficient taxable income to allow us to realize these deferred tax assets.

However, in the event taxable income falls short of current expectations, we may need to establish a valuation allowance against such deferred tax assets.

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Share-Based Compensation Plans

Our share-based compensation is measured at fair value and expensed over the service period (generally the vesting period).

For the years ended December 31, 2021, 2020 and 2019, we recognized share-based compensation of $ 11.0 million, $ 8.0 million and $ 6.9 million, respectively, primarily in selling, general and administrative expenses.

The amount of compensation expense to be recognized is adjusted for an estimated forfeiture rate which is based on historical data.

For the years ended December 31, 2020, 2019 and 2018, we recognized share-based compensation attributable to stock options and restricted shares of $ 8.0 million, $ 6.9 million and $ 5.0 million, respectively, primarily in selling, general and administrative expenses.

The corresponding deferred income tax benefits for stock options or restricted shares is $ 1.3 million, $ 1.3 million and $ 1.0 million for 2020, 2019 and 2018 respectively.

Equity Incentive Plan

The corresponding deferred income tax benefits are $ 1.4 million, $ 1.3 million and $ 1.3 million for 2021, 2020 and 2019 respectively.

Equity Incentive Plans

Second Amended and Restated 2007 Equity Incentive Plan.

The Second Amended and Restated 2007 Equity Incentive Plan, (the “2007 Plan”) provides for the grant of the following types of incentive awards:

(i) stock options, (ii) restricted stock, (iii) restricted stock units, (iv) stock appreciation rights, (v) performance units and performance shares and (vi) other stock or cash awards.

Those eligible for awards include employees, directors and consultants who provide

The Second Amended and Restated 2007 Equity Incentive Plan (as amended, the “2007 Plan”) provided for the grant of the following types of incentive awards:

(i) stock options;

(ii) restricted stock;

(iii) restricted stock units;

(iv) stock appreciation rights;

(v) performance units and performance

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

services to Amkor and its subsidiaries.

The 2007 Plan is effective through 2027 and can be terminated at the discretion of the Board of Directors.

There were originally 17.0 million shares of our common stock reserved for issuance under the 2007 Plan and at December 31, 2020 there were 2.9 million shares available for grant.

and (vi) other stock or cash awards.

Those eligible for awards included employees, directors and consultants who provide services to Amkor and its subsidiaries.

There were originally 17.0 million shares of our common stock reserved for issuance under the 2007 Plan.

No awards have been or will be granted under the 2007 Plan after the effective date of the 2021 Plan (as defined below), but all outstanding awards under the 2007 Plan will continue in full force and effect, subject to their original terms.

2021 Equity Incentive Plan.

On May 18, 2021, at our 2021 Annual Meeting of Stockholders (the “2021 Annual Meeting”), our stockholders approved the Amkor Technology, Inc.

2021 Equity Incentive Plan (the “2021 Plan”) to replace the 2007 Plan.

The 2021 Plan provides for the grant of the following types of incentive awards:

(i) stock options;

(ii) restricted stock;

(iii) restricted stock units;

(iv) stock appreciation rights;

(v) performance units and performance shares;

and (vi) other stock or cash awards.

Those eligible for awards include employees, directors and consultants who provide services to Amkor and its subsidiaries.

The number of shares authorized and available for issuance under the 2021 Plan is 23,100,000 shares, reduced for certain awards granted under the 2007 Plan after December 31, 2020, but before May 18, 2021.

There were originally 22.8 million shares of our common stock reserved for issuance under the 2021 Plan, and at December 31, 2021, there were 22.6 million shares available for grant under the 2021 Plan.

Stock options

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Outstanding at December 31, 2021

4,366 $ 9.70 7.47 $ 23,391

3,026 $ 10.34 6.69 years $ 43,735

Fully vested at December 31, 2021 and expected to vest thereafter

4,245 $ 9.66 7.43 $ 22,877

2,972 $ 10.30 6.66 years $ 43,049

Exercisable at December 31, 2021

2,197 $ 8.92 6.41 $ 13,407

1,880 $ 9.10 5.87 years $ 29,502

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

The following assumptions were used to calculate the weighted-average fair values of the options granted:

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Total unrecognized compensation expense from stock options was $ 4.7 million as of December 31, 2021, which is expected to be recognized over a weighted-average period of approximately 1.4 years beginning January 1, 2022.

The total intrinsic value of options exercised during fiscal years 2021, 2020, and 2019 was $ 17.7 million, $ 8.2 million, and $ 6.9 million, respectively.

Restricted shares

We grant restricted shares to directors and employees under the 2007 Plan.

Restricted shares granted to directors vest on the earlier of the one year anniversary of the grant date or the date of the next annual meeting of stockholders.

Generally, other restricted shares vest ratably over three years , with 8.33 % of the shares vesting in equal quarterly

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

installments such that 100 % of the shares will become vested on the third anniversary of the award, subject to the recipient’s continued employment with us on the applicable vesting dates.

During the year ended December 31, 2021, we granted restricted shares under both the 2007 Plan (with respect to grants made prior to the effective date of the 2021 Plan) and the 2021 Plan (with respect to grants made after its effective date).

Restricted shares granted to our non-employee directors vest on the earlier of the one year anniversary of the grant date or the date of the annual meeting of stockholders immediately following the grant date, subject to the recipient’s continued service as a director of Amkor on the applicable vesting date.

Generally, other restricted shares vest ratably over three years , with 8.33 % of the shares vesting in equal quarterly installments such that 100 % of the shares will become vested on the third anniversary of the award, subject to the recipient’s continued employment with us on the applicable vesting date.

In addition, provided that the restricted shares have not been forfeited earlier, for certain grants, the restricted shares will vest upon the recipient’s death or disability, or upon a change in control of Amkor.

The value of the restricted shares is determined based on the fair market value of the underlying shares on the date of the grant and is recognized ratably over the vesting period.

Upon vesting of restricted stock awards, we may issue new shares of common or treasury stock.

The following table summarizes our restricted share activity for the year ended December 31, 2021:

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Non-vested at December 31, 2021

Total unrecognized compensation cost from restricted shares was $ 4.7 million as of December 31, 2020, which is expected to be recognized over a weighted-average period of approximately 2.2 years beginning January 1, 2021.

Total unrecognized compensation expense from restricted shares was $ 3.7 million as of December 31, 2021, which is expected to be recognized over a weighted-average period of approximately 1.5 years beginning January 1, 2022.

Restricted stock units

During the year ended December 31, 2021, but prior to the effective date of the 2021 Plan, we granted time-vested restricted stock units (“RSUs”) and performance-vested restricted stock units (“PSUs”) to certain employees under the 2007 Plan.

Additionally, during year ended December 31, 2021, we granted RSUs to an employee under the 2021 Plan.

RSUs generally vest in four equal installments over a four-year period such that 100% of the RSUs will become vested on the fourth anniversary of the award, subject to the recipient’s continued employment with us on the applicable vesting dates.

In addition, provided that the RSUs have not been forfeited earlier, they will generally vest upon the recipient’s death or disability, or upon a change in control of Amkor, in accordance with the terms and conditions of the applicable

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

award agreement.

The value of the RSUs is determined based on the fair market value of the underlying shares on the date of the grant, reduced by the present value of dividends or dividend equivalent rights expected to be paid on our common stock prior to vesting, and is recognized ratably over the vesting period.

PSUs generally vest in one installment after a two-year period such that 100% of the PSUs will become vested within 90 days of the second anniversary of the award, subject to the recipient’s continued employment with us on the applicable vesting date.

For PSUs granted in 2021, the number of shares of our common stock to be received at vesting will range from 0% to 200% of the target grant amount based on Cumulative Basic EPS (as defined in the applicable award agreement) over a two-year performance measurement period.

In addition, provided the PSUs have not been forfeited earlier, the PSUs will generally vest upon the recipient’s retirement, death or disability, or upon a change of control of Amkor, in accordance with the terms and conditions of the applicable award agreement.

The value of the PSUs is initially determined based on the fair market value of the underlying shares on the date of the grant, reduced by the present value of dividends expected to be paid on our common stock prior to vesting, and is recognized over the vesting period.

The following table summarizes our RSU and PSU activity for the year ended December 31, 2021:

(In thousands) Weighted- average

Non-vested at December 31, 2020

Awards granted 295 22.48

Awards vested — —

Awards forfeited ( 9 ) 22.58

Non-vested at December 31, 2021

Total unrecognized compensation expense from RSUs and PSUs was $ 5.5 million as of December 31, 2021, which is expected to be recognized over a weighted-average period of approximately 1.9 years beginning January 1, 2022.

Other Income and Expense

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Total other (income) expense, net $ ( 3,141 ) $ 6,395 $ 1,773

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

Geographic sources of income (loss) before taxes are as follows:

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Income before taxes $ 715,066 $ 386,682 $ 159,810

The provision for income taxes includes current federal, state and foreign taxes payable and those deferred because of temporary differences between the financial statement and the tax bases of assets and liabilities.

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

The components of the provision (benefit) for income taxes are as follows:

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Income tax expense $ 69,459 $ 46,183 $ 37,182

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

The reconciliation between the U.S.

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Foreign exchange (loss) gain ( 16,194 ) 6,710 84

Excess tax benefits related to share-based compensation ( 2,055 ) ( 142 ) ( 315 )

Change in valuation allowance 1,047 ( 15,624 ) 18,374

Adjustments related to prior years ( 1,819 ) ( 2,433 ) ( 2,875 )

tax reform (the Tax Act) — — 22,284

Income tax credits generated ( 36,401 ) ( 21,525 ) ( 9,006 )

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Income tax expense $ 69,459 $ 46,183 $ 37,182

The change in valuation allowance for 2020, 2019 and 2018 is primarily the result of changes in our ability to realize net operating loss, tax credit, and other carryforwards.

As a result of certain capital investments, export commitments and employment levels, income from operations in Korea, Malaysia, the Philippines and Singapore was subject to reduced income tax rates and, in some cases, was exempt from income taxes.

We recorded a valuation allowance against our interest expense carryforward due to the limitation of deductibility of interest expense under current tax law.

Realization of the carryforward is dependent on generating sufficient taxable income to overcome the interest limitation provisions.

Although utilization of this carryforward is not assured, in light of our current earnings and recent estimates of future taxable income, management believes sufficient positive evidence existed to conclude that the valuation allowance is no longer needed and reversed the $ 12.4 million valuation allowance in 2020.

As a result of certain capital investments, export commitments and employment levels, income from operations in Korea, the Philippines and Singapore was subject to reduced income tax rates and, in some cases, was exempt from income taxes.

We recognized $ 56.7 million, $ 27.6 million and $ 14.7 million in tax benefits as a result of the tax holidays in 2021, 2020 and 2019, respectively.

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Total valuation allowance $ 122,357 $ 121,310

We had recorded a valuation allowance against our interest expense carryforward as a result of the limitation of deductibility of interest expense contained in the Tax Act.

Realization of the carryforward is dependent on generating sufficient taxable income to overcome the interest limitation provisions.

Although utilization of this carryforward is not assured, in light of our current earnings and recent estimates of future taxable income, management believes sufficient positive evidence exists to conclude that the valuation allowance is no longer needed and reversed the $ 12.4 million valuation allowance in 2020.

Our net operating loss carryforwards (“NOLs”) are as follows:

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federal net operating loss carryforward was reserved with a valuation allowance due to ownership change limitations from a prior year acquisition as well as certain state net operating loss carryforwards expected to expire unused.

Also, we have a valuation allowance against a foreign net operating loss carryforward that we do not expect to have sufficient taxable income to realize as of December 31, 2021 and 2020.

Our tax credit carryforwards are as follows:

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and foreign tax credit carryforwards were reserved with a valuation allowance for the amount expected to expire unused.

Due to the changes in the Tax Act, distributions of cash to the U.S.

Distributions of cash to the U.S.

as dividends generally will not be subject to U.S.

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These earnings could become subject to foreign withholding tax if they are remitted as dividends.

We estimate that repatriation of these foreign earnings would generate withholding taxes and state income taxes of approximately $ 119.1 million.

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

For the year ended December 31, 2021, we estimate that repatriation of these foreign earnings would generate withholding taxes and state income taxes of approximately $ 132.0 million.

We operate in and file income tax returns in various U.S.

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Our unrecognized tax benefits are subject to change as examinations of specific tax years are completed in the respective jurisdictions.

In certain circumstances where we elect to appeal the results of an examination, we may be required to make tax assessment payments to proceed with the administrative appeal process.

Current examinations include our 2012, 2013 and 2018 Philippine income tax returns and our 2018 Singapore income tax return.

In certain circumstances where we elect to appeal the results of an

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

examination, we may be required to make tax assessment payments to proceed with the administrative appeal process.

Current examinations include 2017-2020 Japan income tax returns, 2015-2020 Malaysia income tax returns, 2018-2020 Philippine income tax returns and our 2016 and 2018 Singapore income tax returns.

A reconciliation of the beginning and ending gross amount of unrecognized tax benefits is as follows:

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At December 31, 2021, all of our gross unrecognized tax benefits would reduce our effective tax rate, if recognized.

It is reasonably possible that unrecognized tax benefits related to entity classification and withholding taxes will decrease in the next 12 months by up to $ 7.1 million due to the lapse of statutes of limitations in foreign jurisdictions.

The liability related to our unrecognized tax benefits is $ 28.3 million as of December 31, 2020 and is reported as a component of other non-current liabilities.

It is reasonably possible that unrecognized tax benefits related to income attribution and withholding taxes will decrease in the next 12 months by up to $ 0.9 million due to the lapse of statutes of limitations in foreign jurisdictions.

The liability related to our unrecognized tax benefits, before interest and penalties, is $ 32.9 million as of December 31, 2021 and is reported as a component of other non-current liabilities.

The unrecognized tax benefits presented in the table above also include positions that have reduced deferred tax assets.

The balance of accrued and unpaid interest and penalties is $ 4.7 million as of December 31, 2020 and is included as a component of other non-current liabilities in connection with our unrecognized tax benefits.

The balance of accrued and unpaid interest and penalties is $ 5.5 million and $ 4.7 million as of December 31, 2021 and 2020, respectively, and is included as a component of other non-current liabilities in connection with our unrecognized tax benefits.

Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income attributable to Amkor common stockholders by the weighted-average number of common shares outstanding during the period.

The weighted-average number of common shares outstanding includes restricted shares held by retirement eligible recipients and is reduced for treasury stock.

Diluted EPS is computed on the basis of the weighted-average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period.

Dilutive potential common shares include outstanding stock options and unvested restricted shares.

The weighted-average number of common shares outstanding is reduced for treasury stock.

Diluted EPS is computed based on the weighted-average number of common shares outstanding plus the effect of dilutive potential common shares outstanding during the period.

Dilutive potential common shares include outstanding stock options, PSUs, RSUs and unvested restricted shares.

AMKOR TECHNOLOGY, INC.

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(In thousands, except per share data)

Net income available to Amkor common stockholders $ 338,138 $ 120,888 $ 127,092

Weighted-average shares outstanding — basic 241,509 239,725 239,329

Net income attributable to Amkor common stockholders $ 642,995 $ 338,138 $ 120,888

Weighted-average number of common shares outstanding — basic 243,878 241,509 239,725

Effect of dilutive securities:

Stock options and restricted share awards 739 397 412

Weighted-average shares outstanding — diluted 242,248 240,122 239,741

Share-based awards 1,826 739 397

Weighted-average number of common shares outstanding — diluted 245,704 242,248 240,122

Net income attributable to Amkor per common share:

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(In thousands)

Stock options and restricted share awards 2,412 5,379 3,662

Share-based awards 112 2,412 5,379

AMKOR TECHNOLOGY, INC.

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Cash equivalents

Commercial paper 5,499 — — 5,499 — 5,499

Corporate bonds 4,921 — ( 5 ) 4,916 — 4,916

Money market funds 269,251 — — 269,251 269,251 —

Municipal bonds 500 — — 500 — 500

government bonds 4,000 — — 4,000 4,000 —

Total cash equivalents (2) 284,171 — ( 5 ) 284,166 273,251 10,915

Short-term investments

Asset-backed securities 12,915 1 ( 11 ) 12,905 — 12,905

Certificate of deposits 12,076 — — 12,076 12,076 —

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Corporate bonds 179,235 1 ( 410 ) 178,826 — 178,826

Foreign government bonds 458 — ( 1 ) 457 — 457

Municipal bonds 8,418 1 ( 2 ) 8,417 — 8,417

government bonds 2,966 — ( 8 ) 2,958 2,958 —

Variable rate demand notes 500 — — 500 — 500

Total short-term investments 247,259 3 ( 432 ) 246,830 15,034 231,796

Total $ 531,430 $ 3 $ ( 437 ) $ 530,996 $ 288,285 $ 242,711

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

December 31, 2020

Fair Value Level

Amortized Cost Gross Unrealized Gains Gross Unrealized Losses (1) Total Fair Value Level 1 Level 2

(In thousands)

Cash equivalents

Certificate of deposits $ 976 $ — $ — $ 976 $ 976 $ —

Commercial paper 5,293 — — 5,293 — 5,293

Corporate bonds 1,744 — — 1,744 — 1,744

Money market funds 138,290 — — 138,290 138,290 —

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We do not intend to sell the investments in an unrealized loss position, and we do not believe it is more likely than not that we will be required to sell these investments before recovery of their amortized cost bases.

(2) During the year ended December 31, 2020, we sold cash equivalent investments for proceeds of $ 27.1 million and realized no gain or loss on such sales.

(3) In January 2021, we increased our available-for-sale debt investments by approximately $ 60 million.

(2) During the years ended December 31, 2021 and 2020, we sold cash equivalent investments for proceeds of $ 12.8 million and $ 27.1 million, respectively, and realized no gain or loss on such sales.

The following table summarizes the contractual maturities of our cash equivalents and available-for-sale debt investments as of December 31, 2021:

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After 5 years through 10 years 123 123

After 10 years $ 1,328 $ 1,327

Total $ 531,430 $ 530,996

Actual maturities can differ from contractual maturities due to various factors including whether the issuers have the right to call or prepay obligations without call or prepayment penalties, and we view our available-for-sale debt investments as available for current operations.

As of December 31, 2021 and December 31, 2020, the amortized cost and fair market value of our held-to-maturity government bonds (Level 1) maturing within a year were $ 4.7 million.

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

As of December 31, 2020, the amortized cost and the fair market value of our held-to-maturity government bond (Level 1) maturing within a year is $ 4.7 million.

The following table summarizes our debt investments as of December 31, 2019:

December 31, 2019

(In thousands)

Cash equivalent money market funds (Level 1) (1) $ 384,474

Short-term investment government bond (Level 2) (2) 6,348

(1) The cash equivalent money market funds (Level 1) at December 31, 2019 have been corrected to include $ 286.7 million of cash equivalents that were excluded in previously reported amounts.

There was no change to total cash and cash equivalents reported on our consolidated balance sheet.

We determined this was immaterial to the prior period but have presented the balance as revised for comparability.

(2) The fair market value of the security is $ 6.3 million.

Factoring of Accounts Receivable

For certain accounts receivable, we use non-recourse factoring arrangements with third-party financial institutions to manage our working capital and cash flows.

Under this program, we sell receivables to a financial institution for cash at a discount to the face amount.

Under these arrangements, we sell receivables to a financial institution for cash at a discount to the face amount.

As part of the factoring arrangements, we perform certain collection and administrative functions for the receivables sold.

13 unchanged sentences

Total property, plant and equipment, net $ 2,871,058 $ 2,566,002

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

The following table summarizes our depreciation expense:

3 unchanged sentences

Depreciation expense $ 562,962 $ 509,770 $ 522,011

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

The components of lease expense were as follows:

For the Year Ended December 31,

2021 2020 2019

(In thousands)

7 unchanged sentences

Net lease cost $ 95,539 $ 72,884 $ 62,075

Rent expense was $ 43.6 million for the year ended December 31, 2018.

Other information related to leases was as follows:

For the Year Ended December 31,

2021 2020 2019

Supplemental Cash Flows Information (in thousands)

29 unchanged sentences

Payroll and benefits $ 150,883 $ 143,383

Short-term operating lease liability 49,748 40,972

Deferred revenue and customer advances 117,741 30,269

1 unchanged sentence

Short-term finance lease liability 30,919 12,634

Accrued severance plan obligations (Note 12)

10,837 13,408

Accrued interest 10,789 10,767

Accrued severance plan obligations (Note 12)

Other accrued expenses 65,409 64,967

8 unchanged sentences

$ 525,000 $ 525,000

Other 2,039 —

Debt of subsidiaries:

1 unchanged sentence

$ 30 million revolving credit facility, applicable bank rate plus 1.11 % (1)

Term loan, fund floating rate plus 1.60 %, due June 2020

Term loan, fixed rate at 1.80 %, due May 2021 (2)

Term loan, applicable bank rate plus 2.03 %, due July 2022

Term loan, applicable bank rate plus 2.03 %, due September 2022 (3)

Term loan, applicable bank rate plus 1.77 %, due April 2023

Term loan, LIBOR plus 2.56 %, due December 2023

47,064 51,541

Term loan, fixed rate at 1.85 %, due April 2024 (2)

Term loan, applicable bank rate plus 1.98 %, due December 2028 (3)

50,000 50,000

Term loan, fixed rate at 2.12 %, due December 2028 (4)

Amkor Technology Japan, Inc.:

1 unchanged sentence

Term loan, fixed rate at 0.86 %, due June 2022

14,528 23,018

Term loan, fixed rate at 0.60 %, due July 2022

4 unchanged sentences

Term loan, fixed rate at 1.20 %, due December 2025

75,773 105,569

Term loan, fixed rate at 1.23 %, due December 2026 (6)

Amkor Assembly & Test (Shanghai) Co., Ltd.:

Term loan, LIBOR plus 1.60 %, due March 2022

28,000 29,000

Term loan, LIBOR plus 1.40 %, due March 2022

18,250 19,250

Term loan, LIBOR plus 1.10 %, due March 2024 (7)

$ 250 million senior secured revolving credit facility, LIBOR plus 1.25 %- 1.75 %, due July 2023 (Singapore) (8)

5 unchanged sentences

(1) In October 2021, we renewed this revolving credit facility agreement for a one-year term with availability of $ 30.0 million.

Principal is payable at maturity, six months after draw of funds, and interest is payable monthly in arrears.

During the year ended December 31, 2020, we borrowed $ 60.0 million and repaid the full $ 60.0 million.

Principal is payable at maturity or six months after draw of funds, whichever is sooner, and interest is payable monthly in arrears.

As of December 31, 2021, $ 30.0 million was available to be drawn.

1 unchanged sentence

Notes to Consolidated Financial Statements — (Continued)

(2) In May 2020, we entered into a KRW ₩ 60 billion term loan agreement with the option to re-borrow the funds through May 2021.

Principal is payable at maturity and interest is payable monthly in arrears, at a fixed rate of 1.80 %.

During the year ended December 31, 2020, we borrowed and repaid ₩ 60 billion ($ 48.4 million).

(2) In April 2021, we entered into a ₩ 80.0 billion term loan agreement with the option to borrow and re-borrow the funds up to six times per year through April 2024.

Principal is payable at maturity, and interest is payable monthly.

During the year ended December 31, 2021, we borrowed and repaid $ 138.6 million.

As of December 31, 2021, ₩ 80.0 billion, or approximately $ 67 million, was available to be drawn.

(3) In July 2019, we entered into a $ 140.0 million term loan due September 2022.

Principal is payable at maturity, and interest is payable quarterly in arrears.

During the year ended December 31, 2020, we borrowed $ 80.0 million available under this loan and repaid the full $ 140.0 million.

(4) In April 2020, we borrowed KRW ₩ 150 billion (US$ 122.0 million) under a new term loan due April 2023.

Principal is payable at maturity and interest is payable monthly in arrears.

During the year ended December 31, 2020, we repaid KRW ₩ 94 billion ($ 86.0 million).

(3) In December 2018, we entered into a term loan agreement pursuant to which we may borrow up to $ 90.0 million for capital expenditures.

Principal is payable in semiannual installments and interest is payable quarterly in arrears (fixed at a weighted average of 3.88 % as of December 31, 2021).

(4) In October 2021, we entered into a term loan agreement with availability of $ 200.0 million.

Principal is payable in semiannual installments after a three-year grace period from the date of the first drawdown, which occurred in December 2021.

Interest is payable quarterly.

During the year ended December 31, 2021, we borrowed $ 50.0 million.

As of December 31, 2021, $ 150.0 million was available to be drawn.

In February 2022, we borrowed an additional $ 50.0 million under this agreement.

(5) We entered into various short-term term loans which mature semiannually.

2 unchanged sentences

(6) In December 2021, we borrowed ¥ 13.1 billion (US$ 115.0 million) under a new term loan agreement due December 2026, guaranteed by Amkor Technology, Inc.

and our subsidiary, Amkor Technology Singapore Holding Pte, Ltd.

and our subsidiary, ATSH.

Principal is due in 20 equal, quarterly installments plus accrued interest, through maturity.

(8) In July 2018, our subsidiary, Amkor Technology Singapore Holding Pte, Ltd., entered into a $ 250.0 million senior secured revolving credit facility, which is guaranteed by Amkor Technology, Inc.

(7) In March 2021, we entered into a borrowing arrangement which includes a $ 20.0 million term loan and a $ 30.0 million term loan.

For each term loan, principal is payable in semiannual installments of $ 0.5 million, with the remaining balance due at maturity.

Interest is payable quarterly.

We immediately borrowed $ 50.0 million to repay the term loans due March 2022.

(8) In July 2018, our subsidiary, ATSH, entered into a $ 250.0 million senior secured revolving credit facility, which is guaranteed by Amkor Technology, Inc.

The availability for our revolving credit facility is based on the amount of eligible accounts receivable.

Principal is payable at maturity.

During the year ended December 31, 2020, we borrowed and repaid $ 150.0 million.

As of December 31, 2021, $ 250.0 million was available to be drawn.

(9) In December 2019, we entered into a $ 56.0 million borrowing arrangement.

This arrangement includes a $ 20.0 million term loan and a $ 36.0 million revolving credit facility.

During the year ended December 31, 2020, we borrowed $ 72.0 million and repaid $ 92.0 million.

As of December 31, 2020, $ 36.0 million was available to be drawn.

(9) In December 2019, our subsidiary, Amkor Technology Taiwan, Ltd., entered into a $ 56.0 million borrowing arrangement.

This arrangement included a $ 20.0 million term loan and a $ 36.0 million revolving credit facility.

As of December 31, 2021, $ 36.0 million was available for future borrowings under such credit facility.

Certain of our foreign debt is collateralized by the land, buildings, equipment and accounts receivable in the respective locations.

The carrying value of all collateral exceeds the carrying amount of the collateralized debt.

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

Interest Rates

1 unchanged sentence

Refer to the table above for the interest rates on our fixed-rate debt and to the table below for the interest rates on our variable-rate debt.

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

Amkor Technology Korea, Inc.:

Term loan, fund floating rate plus 1.60 %, due June 2020

Term loan, applicable bank rate plus 1.77 %, due April 2023

Term loan, LIBOR plus 2.56 %, due December 2023

2.86 % 2.40 %

Amkor Technology Japan, Inc:

2 unchanged sentences

Term loan, LIBOR plus 1.60 %, due March 2022

1.83 % 3.53 %

Term loan, LIBOR Plus 1.40 %, due March 2022

1.63 % 3.30 %

Amkor Technology Taiwan Ltd.:

Revolving credit facility, TAIFX plus the applicable bank rate, due December 2024 — 3.35 %

Term loan, LIBOR plus 1.10 %, due March 2024

Compliance with Debt Covenants

2 unchanged sentences

From time to time, Amkor Technology, Inc.

and Amkor Technology Singapore Holding Pte, Ltd.

guarantee certain debt of our subsidiaries.

and certain of our subsidiaries guarantee certain debt of our other subsidiaries.

The agreements governing our indebtedness contain affirmative and negative covenants which restrict our ability to pay dividends and could restrict our operations.

These restrictions are determined in part by calculations based upon cumulative net income or, in the case of our Singapore Revolver, borrowing availability, and do not currently have a material impact on our ability to make dividend payments or stock repurchases.

These restrictions are determined in part by our covenant compliance and on calculations based upon cumulative net income or, in the case of our Singapore Revolver, borrowing availability and do not currently have a material impact on our ability to make dividend payments or stock repurchases.

We were in compliance with all debt covenants at December 31, 2021 and 2020.

30 unchanged sentences

Non-current portion of accrued severance plan obligations $ 65,013 $ 87,167 $ 113,978

(1) In 2020, some employees accepted our offer to convert their Korean severance plan participation to a defined contribution plan.

(1) In 2020 and 2021, some employees accepted our offer to convert their Korean severance plan participation to a defined contribution plan.

AMKOR TECHNOLOGY, INC.

25 unchanged sentences

Funded status of the Plans at December 31 $ ( 43,175 ) $ ( 67,298 )

(1) In 2020, some employees accepted our offer to convert their defined benefit pension plan participation to a defined contribution plan.

(1) In 2020 and 2021, some employees accepted our offer to convert their defined benefit pension plan participation to a defined contribution plan.

(In thousands)

35 unchanged sentences

Expected return on plan assets ( 5,600 ) ( 5,506 ) ( 6,412 )

Amortization of prior service cost — — 6

Recognized actuarial (gain) loss 128 56 ( 374 )

Net periodic pension cost 25,336 29,378 29,813

Curtailment (gain) loss ( 954 ) — —

Settlement (gain) loss ( 743 ) 62 ( 210 )

36 unchanged sentences

Government bonds 7,536 — 7,536 6,571 — 6,571

Corporate bonds 369 — 369 — — —

Treasury notes 8,559 — 8,559 8,069 — 8,069

6 unchanged sentences

Total fair value of pension plan assets $ 95,550 $ 61,462 $ 157,012 $ 94,972 $ 60,239 $ 155,211

(1) In the current year, plan assets were categorized at the fund level rather than the underlying individual investment of the fund.

Prior year amounts were reclassified to conform to current year presentation.

The Taiwan retirement fund category of our plan assets represents accounts that our subsidiaries in Taiwan have in a government labor retirement fund in the custody of the Bank of Taiwan.

5 unchanged sentences

(In thousands)

2021 $ 13,482

2027 to 2031 113,825

4 unchanged sentences

Notes to Consolidated Financial Statements — (Continued)

In October 2020, we announced that our Board of Directors approved the initiation of a regular quarterly cash dividend on our common stock.

The first quarterly dividend of $ 0.04 per share, representing an initial dividend payment of $ 9.7 million in the aggregate, was paid on January 7, 2021 to stockholders of record as of December 18, 2020 .

In October 2020, our Board of Directors approved the initiation of a regular quarterly cash dividend on our common stock.

Each quarter since the adoption of this dividend policy the Company has declared and paid a quarterly dividend.

In November 2021, our Board of Directors approved a 25% increase to our quarterly dividend, increasing to $ 0.05 per share.

Accumulated Other Comprehensive Income (Loss)

22 unchanged sentences

(In thousands)

Japanese Yen $ 465,192 $ 1,279 Other current assets $ 391,643 $ 2,225 Other current assets

Korean Won 161,612 190 Other current assets 74,076 86 Other current assets

Philippine Peso 10,974 ( 7 ) Accrued expenses — — N/A

Japanese yen $ 396,946 $ ( 901 ) Accrued expenses $ 465,192 $ 1,279 Other current assets

Korean won 125,321 ( 492 ) Accrued Expenses 161,612 190 Other current assets

Philippine peso 4,001 7 Other Current Assets 10,974 ( 7 ) Accrued expenses

Total forward contracts $ 526,268 $ ( 1,386 ) $ 637,778 $ 1,462

For the years ended December 31, 2020, 2019 and 2018, the derivatives resulted in a net gain of $ 35.9 million, $ 0.1 million and $ 2.5 million respectively, which were offset by the foreign currency losses associated with the underlying net liabilities.

For the year ended December 31, 2021, the derivatives resulted in a net loss of $ 58.8 million, which was offset by the foreign currency gains associated with the underlying net assets or liabilities.

For the years ended December 31, 2020 and 2019, the derivatives resulted in a net gain of $ 35.9 million and $ 0.1 million respectively, which were offset by the foreign currency losses associated with the underlying net liabilities.

Fair Value Measurements

4 unchanged sentences

and Level 3, defined as unobservable inputs that are not corroborated by market data.

For our Level 2 short-term investments, including money market funds (Note 6), we use inputs such as actual trade data, benchmark yields, broker/dealer quotes, and other similar data, obtained from quoted market prices and independent pricing vendors, to determine the fair value of these assets and liabilities.

For our Level 2 short-term investments, we consider factors such as actual trade data, benchmark yields, broker/dealer quotes, and other similar data obtained from quoted market prices and independent pricing vendors to determine the fair value of these assets and liabilities.

The fair values of cash, accounts receivable, trade accounts payable, capital expenditures payable, and certain other current assets and accrued expenses approximate carrying values because of their short-term nature.

The carrying value of certain other non-current assets and liabilities approximates fair value.

Our assets and liabilities recorded at fair value on a recurring basis include cash equivalent money market funds and restricted cash money market funds.

We also review goodwill for impairment annually during the fourth quarter of each year.

Our assets and liabilities recorded at fair value on a recurring basis include restricted cash money market funds and short-term investments, including investments classified as cash equivalents.

Cash equivalent money market funds and restricted cash money market funds are invested in U.S.

2 unchanged sentences

No restrictions have been imposed on us regarding withdrawal of balances with respect to our cash equivalents as a result of liquidity or other credit market issues affecting the money market funds we invest in or the counterparty financial institutions holding our deposits.

Our derivative financial instruments (Note 15) are valued using quoted market prices for similar assets.

Our derivative financial instruments are valued using quoted market prices for similar assets.

Counterparties to these derivative contracts are highly rated financial institutions.

We also measure certain assets and liabilities, including property, plant and equipment, operating lease right of use assets and goodwill, at fair value on a nonrecurring basis.

We also measure certain assets and liabilities, including property, plant and equipment and goodwill, at fair value on a nonrecurring basis.

AMKOR TECHNOLOGY, INC.

20 unchanged sentences

Our evaluation of the potential impact of these claims and legal proceedings on our business, liquidity, results of operations, financial condition or cash flows could change in the future.

Settlement of Patent License Litigation

Under the terms of a January 2015 patent license litigation settlement, Amkor agreed to pay a total of $ 155.0 million in 16 equal quarterly recurring payments commencing in the first quarter of 2015 and continuing through the fourth quarter of 2018.

At December 31, 2020 and 2019, we had no remaining liability under this settlement agreement.

Purchase Commitments

5 unchanged sentences

We have concluded that we have a single operating segment based on the following:

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

• We are managed under a functionally-based organizational structure with the head of each function reporting directly to the CODM;

3 unchanged sentences

We also have centralized sales and administrative functions.

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

In 2021, we began reporting memory net sales in Advanced Products.

Previously, memory net sales were reported in Mainstream Products.

Prior year amounts were reclassified to conform to current year presentation.

Net sales by product group consist of the following:

10 unchanged sentences

2021 2020 2019

Communications (handheld devices, smartphones, tablets) 41 % 38 % 44 %

Consumer (connected home, set-top boxes, televisions, visual imaging, wearables) 24 % 18 % 12 %

Automotive, industrial and other (driver assist, infotainment, performance, safety) 20 % 27 % 26 %

Computing (datacenter, infrastructure, PC/laptop, storage)

15 % 17 % 18 %

Communications (smart phones, tablets) 41 % 41 % 38 %

Consumer (AR & gaming, connected home, home electronics, wearables) 22 % 24 % 18 %

Automotive and Industrial (ADAS, electrification, infotainment, safety) 21 % 20 % 27 %

Computing (datacenter, infrastructure, PC/laptops, storage) 16 % 15 % 17 %

Total net sales 100 % 100 % 100 %

9 unchanged sentences

Total net sales $ 6,138,329 $ 5,050,589 $ 4,052,650

In 2020, one customer accounted for 14.5 % of total net sales and another customer accounted for 10.2 % of net sales in 2018.

In 2021 and 2020, one customer accounted for 13.7 % and 14.5 % of total net sales, respectively.

No single customer accounted for more than 10% of net sales in 2019.

18 unchanged sentences

“Charges” represents the initial charge related to the exit activity.

“Cash Payments” consists of the utilization of “Charges.” “Non-cash Amounts” consists of translation adjustments.

“Cash Payments” consists of the utilization of “Charges.” “Non-cash Amounts” consists of asset impairment and translation adjustments.

Japan Consolidation Activities

1 unchanged sentence

We recorded these charges to selling, general and administrative expenses within the Consolidated Statements of Income.

All amounts accrued at December 31, 2020 are classified as current liabilities.

We expect to complete these restructuring actions in the first half of fiscal 2021.

We completed these restructuring actions in the second quarter of 2021.

Facility Costs (1) Employee Separation Costs Other Exit Costs (2) Total

5 unchanged sentences

Accrual at December 31, 2020 $ 4,365 $ 1,759 $ 219 $ 6,343

Charges 2,077 496 360 $ 2,933

Cash Payments ( 5,733 ) ( 2,253 ) ( 578 ) $ ( 8,564 )

Non-cash Amounts ( 709 ) ( 2 ) ( 1 ) ( 712 )

Accrual at December 31, 2021 $ — $ — $ — $ —

Total cumulative charges incurred to date $ 16,255 $ 8,754 $ 3,884 $ 28,893

Estimated additional charges to be incurred — — — $ —

$ 3,640 $ 275 $ 151 $ 4,066

(1) Facility costs primarily consist of equipment relocation costs directly resulting from the restructuring actions.

(2) Other exit costs primarily consist of employee relocation and training costs directly resulting from the restructuring actions.

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

Quarterly Results (unaudited)

The following table sets forth our consolidated unaudited financial data for the last eight quarters ended December 31, 2020.

We believe that we have included all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of our selected quarterly data.

The calculation of basic and diluted per share amounts for each quarter is based on the weighted-average shares outstanding for that period;

consequently, the sum of the quarters may not necessarily be equal to the full year basic and diluted net income per share.

For the Quarter Ended

Dec 31, 2020 (a) Sept 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 (b) Sept 30, 2019 Jun 30, 2019 (c) Mar 31, 2019 (d)

(In thousands, except per share data)

Net sales $ 1,371,041 $ 1,354,023 $ 1,172,909 $ 1,152,616 $ 1,178,464 $ 1,083,917 $ 895,305 $ 894,964

Gross profit 278,501 241,085 192,320 188,908 222,984 182,240 123,454 120,761

Operating income 159,179 127,469 86,524 84,073 118,385 78,855 22,510 13,420

Income tax expense 12,679 15,753 12,905 4,846 764 9,141 5,897 21,380

Net income (loss) 126,965 92,897 56,140 64,497 99,816 54,486 ( 9,006 ) ( 22,668 )

Net income (loss) attributable to Amkor 126,674 92,151 55,424 63,889 99,147 54,070 ( 9,450 ) ( 22,879 )

Net income (loss) attributable to Amkor per common share:

Basic $ 0.52 $ 0.38 $ 0.23 $ 0.27 $ 0.41 $ 0.23 $ ( 0.04 ) $ ( 0.10 )

Diluted $ 0.52 $ 0.38 $ 0.23 $ 0.26 $ 0.41 $ 0.23 $ ( 0.04 ) $ ( 0.10 )

(a) In the fourth quarter of 2020, we recorded a $ 20.2 million discrete tax benefit from the recognition of deferred tax assets we expect to utilize in future years.

(b) In the fourth quarter of 2019, we recorded a $ 3.8 million discrete income tax benefit, primarily related to changes in the valuation of certain deferred tax assets.

(c) In the second quarter of 2019, we incurred an $ 8.4 million charge related to the early redemption of our 2022 Notes.

(d) In the first quarter of 2019, we recorded a $ 14.9 million non-cash discrete income tax charge to reduce the value of certain deferred tax assets.

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS

8 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data