What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2023-02-22 compared with 2022-02-18 · 122 added, 133 removed, 1163 unchanged (18% of the section changed)

13 unchanged sentences

We have audited the accompanying consolidated balance sheets of Amkor Technology, Inc.

and its subsidiaries (the “Company”) as of December 31, 2021 and 2020, and the related consolidated statements of income, of comprehensive income, of stockholders’ equity and of cash flows for each of the three years in the period ended December 31, 2021, including the related notes and schedule of valuation and qualifying accounts for each of the three years in the period ended December 31, 2021 appearing under Item 8 (collectively referred to as the “consolidated financial statements”).

and its subsidiaries (the “Company”) as of December 31, 2022 and 2021, and the related consolidated statements of income, of comprehensive income, of stockholders’ equity and of cash flows for each of the three years in the period ended December 31, 2022, including the related notes and financial statement schedule of valuation and qualifying accounts for each of the three years in the period ended December 31, 2022 appearing under Item 8 (collectively referred to as the “consolidated financial statements”).

We also have audited the Company’s internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

136 unchanged sentences

In Capital Retained Earnings Accumulated

Deficit) Accumulated

Comprehensive

12 unchanged sentences

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 )

31 unchanged sentences

Loss on debt retirement 464 — 3,042

Loss (gain) on disposal of fixed assets, net ( 1,446 ) ( 2,821 ) ( 4,477 )

Gain on disposal of fixed assets, net ( 2,807 ) ( 1,446 ) ( 2,821 )

Share-based compensation 13,562 10,970 8,030

35 unchanged sentences

Other financing activities ( 1,572 ) ( 2,548 ) ( 1,770 )

Net cash (used in) provided by financing activities ( 30,102 ) ( 333,719 ) 108,250

Net cash provided by (used in) financing activities 55,597 ( 30,102 ) ( 333,719 )

Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash ( 16,299 ) ( 17,990 ) 6,056

Net (decrease) increase in cash, cash equivalents and restricted cash 129,324 ( 196,335 ) 210,481

Net increase (decrease) in cash, cash equivalents and restricted cash 130,885 129,324 ( 196,335 )

Cash, cash equivalents and restricted cash, beginning of period 831,521 702,197 898,532

23 unchanged sentences

• Designing and developing innovative packaging and test technologies;

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

• 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;

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

• Collaborating with customers, foundries, OEMs and equipment and material suppliers;

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

• Providing a geographically diverse operating base;

• Developing a competitive cost structure through disciplined capital investment.

1 unchanged sentence

Our Consolidated Financial Statements include the accounts of Amkor Technology, Inc.

and our subsidiaries (“Amkor”).

and its subsidiaries.

Our Consolidated Financial Statements reflect the elimination of all significant inter-company accounts and transactions.

6 unchanged sentences

As a result, actual results could differ materially from these estimates and assumptions, including the impact of Covid-19 and any deterioration in the global business and economic environment.

Certain prior year amounts have been reclassified to conform to current year presentation.

Consolidation of Variable Interest Entities

19 unchanged sentences

Assets and liabilities denominated in a currency other than the functional currency are remeasured into the functional currency prior to translation into U.S.

dollars, and the resulting transaction exchange gains or losses are included in other expense (income) in the period in which they occur.

dollars, and the resulting transaction exchange gains or losses are included in other (income) expense, net in the period in which they occur.

Risks and Concentrations

4 unchanged sentences

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

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

Direct sales to our two largest customers accounted for 20.6 % and 10.1 % of our net sales for the year ended December 31, 2022.

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.

3 unchanged sentences

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 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.

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

Our short-term investments are primarily in direct obligations of the U.S.

Government or its agencies, corporate bonds, asset backed securities, commercial paper, municipal bonds, and other foreign government obligations and funds.

At December 31, 2022, 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.

money market funds and commercial paper.

Contingencies and Litigation

12 unchanged sentences

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

money market funds.

money market funds and commercial paper.

Restricted Cash

34 unchanged sentences

We lease certain machinery and equipment, office space, and manufacturing facilities.

Effective January 1, 2019, we adopted the requirements of the Financial Accounting Standards Board Accounting Standards Codification 842, Leases, using the modified transition approach without restating the comparative period financial statements or disclosures.

Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term.

8 unchanged sentences

The balance of goodwill in our Consolidated Balance Sheets reflects adjustments for foreign currency translation.

Other assets consist principally of deferred tax assets, refundable security deposits and non-current prepaid taxes.

We use foreign exchange forward contracts to manage exposure to foreign exchange risk which are generally settled monthly.

Other assets consist principally of deferred tax assets, refundable security deposits and advanced payments to vendors.

We use foreign exchange forward contracts, generally settled monthly, to manage a portion of our exposure to foreign exchange risk.

The derivatives are recorded at the fair value either in other current assets or accrued expenses, with the associated gains and losses charged to other (income) expense, net in the period in which they occur.

47 unchanged sentences

Research and development expenses include costs attributable to the conduct of research and development programs primarily related to the development of new package designs or technologies and improving the efficiency and capabilities of our existing production processes.

Such costs include salaries, payroll taxes, employee benefit costs, materials, supplies, depreciation and maintenance of research equipment, services provided by outside contractors and the allocable portions of facility costs such as rent, utilities, insurance, repairs and maintenance, depreciation and general support services.

Such costs include labor, materials, supplies, depreciation and maintenance of research equipment, services provided by outside contractors and the allocable portions of facility costs such as rent, utilities, insurance, repairs and maintenance, depreciation and general support services.

Costs associated with research and development are expensed as incurred.

Income taxes are accounted for using the asset and liability method.

Under this method, deferred income tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis as well as for net operating loss and tax credit carryforwards.

Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which these temporary differences are expected to be recovered or settled.

29 unchanged sentences

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.

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

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

27 unchanged sentences

Outstanding at December 31, 2021

Granted 180 19.39

3,026 $ 10.34

Exercised ( 587 ) 9.60

10 unchanged sentences

For the Year Ended December 31,

2021 2020 2019

Expected life (in years) 6.7 5.6

6 unchanged sentences

Restricted shares

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.

In addition, provided that the restricted shares have not been forfeited earlier, under the terms and conditions of the applicable award agreements 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.

8 unchanged sentences

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.

From time to time, and pursuant to the 2021 Plan, we grant time-vested restricted stock units (“RSUs”) to our non-employee directors and certain employees and performance-vested restricted stock units (“PSUs”) to certain employees.

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

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

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

award agreement.

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.

PSUs generally vest in one installment after a two-year period such that any earned 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.

Generally for PSUs, 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.

18 unchanged sentences

Total other (income) expense, net $ ( 18,309 ) $ ( 3,141 ) $ 6,395

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

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

5 unchanged sentences

Income before taxes $ 856,932 $ 715,066 $ 386,682

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

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

11 unchanged sentences

Income tax expense $ 89,890 $ 69,459 $ 46,183

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

The reconciliation between the U.S.

federal statutory income tax rate of 21% for 2021, 2020 and 2019 and our income tax expense is as follows:

federal statutory income tax rate of 21% and our effective tax rate is as follows:

For the Year Ended December 31,

2022 2021 (1) 2020 (1)

(In thousands)

federal statutory income tax rate 21.0 % 21.0 % 21.0 %

State taxes, net of federal benefit 2,513 346 293

Foreign income taxed at different rates ( 12.0 ) ( 9.5 ) ( 7.2 )

Foreign exchange (loss) gain 2.2 ( 2.3 ) 1.7

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

Change in valuation allowance ( 2.4 ) 0.1 ( 4.0 )

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

Income tax credits generated ( 6.1 ) ( 5.1 ) ( 5.6 )

1 unchanged sentence

Foreign derived intangible income ( 0.9 ) ( 1.1 ) ( 1.6 )

Expiration of net operating losses and credits 45 144 3,084

Settlements and changes in uncertain tax positions ( 0.2 ) 0.8 1.8

1 unchanged sentence

Income tax expense 10.5 % 9.7 % 11.9 %

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.

(1) Prior year amounts were reclassified and presented to conform with current year presentation.

In 2022, we reversed $ 17.8 million of valuation allowance recorded against U.S.

foreign tax credit carryforwards previously projected to expire unused due to the limitations to utilize the credits under current tax law.

In 2020, we reversed $ 12.4 million of valuation allowance recorded against our interest expense carryforward previously projected to expire unused due to the limitation to deduct interest expense under current tax law.

Realization of these carryforwards is dependent on generating sufficient taxable income to overcome the foreign tax credit and interest limitation provisions, respectively.

Although utilization of these carryforwards 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 respective valuation allowances are no longer needed, resulting in the reversal of these valuation allowances.

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.

The benefit of the tax holidays on diluted earnings per share was approximately $ 0.23 , $ 0.11 and $ 0.06 for 2021, 2020 and 2019, respectively.

The most significant tax rate impact is in Singapore where we have been granted a conditional reduced tax rate that expires at the end of 2023, excluding potential renewal subject to certain conditions and commitments.

We recognized $ 84.5 million, $ 56.7 million and $ 27.6 million in tax benefits as a result of the conditional reduced tax rates

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

in 2022, 2021 and 2020, respectively.

The benefit of the conditional reduced tax rates on diluted earnings per share was approximately $ 0.34 , $ 0.23 and $ 0.11 for 2022, 2021 and 2020, respectively.

The following is a summary of the components of our deferred tax assets and liabilities:

1 unchanged sentence

Deferred tax assets:

Net operating loss carryforwards $ 36,326 $ 24,791

NOLs $ 49,846 $ 36,326

Income tax credits 92,368 93,257

4 unchanged sentences

Unrealized foreign exchange loss 8,018 11,409

Revenue Recognition 1,564 —

Operating lease liabilities 26,955 27,446

26 unchanged sentences

Total valuation allowance $ 101,869 $ 122,357

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

Our NOLs are as follows:

2022 2021 Expiration

4 unchanged sentences

At December 31, 2022 and 2021, a portion of our remaining U.S.

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.

federal NOL was reserved with a valuation allowance due to ownership change limitations from a prior year acquisition as well as certain state NOLs expected to expire unused.

Also, we have a valuation allowance against a foreign NOL that we do not expect to have sufficient taxable income to realize as of December 31, 2022 and 2021.

Our tax credit carryforwards are as follows:

22 unchanged sentences

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.

Current examinations include 2015-2020 Malaysia income tax returns and 2021 Philippine income tax return.

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

9 unchanged sentences

Balance at December 31 $ 33,253 $ 37,293 $ 32,598

The net increase in our unrecognized tax benefits was $ 4.7 million from December 31, 2020 to December 31, 2021.

The increase was primarily related to income attribution offset by decreases from the lapse of statutes of limitations.

The net decrease in our unrecognized tax benefits was $ 4.0 million from December 31, 2021 to December 31, 2022.

The decrease was primarily related to income attribution, settlements and the lapse of statutes of limitations.

At December 31, 2022, 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 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.

It is reasonably possible that unrecognized tax benefits related to income attribution will decrease in the next 12 months by up to $ 1.9 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 $ 24.7 million as of December 31, 2022 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 unrecognized tax benefits presented in the table above also include positions that have reduced deferred tax assets by $ 8.6 million.

The balance of accrued and unpaid interest and penalties is $ 4.9 million and $ 5.5 million as of December 31, 2022 and 2021, respectively, and is included as a component of other non-current liabilities in connection with our unrecognized tax benefits.

31 unchanged sentences

Cash equivalents

Asset-backed securities $ 25 $ — $ — $ 25 $ — $ 25

Commercial paper 69,101 — — 69,101 — 69,101

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

Money market funds 97,650 — — 97,650 97,650 —

1 unchanged sentence

government bonds 10,767 1 — 10,768 10,768 —

government agency bonds 16,982 3 — 16,985 — 16,985

Total cash equivalents (2) 195,526 4 — 195,530 108,418 87,112

5 unchanged sentences

Foreign government bonds 996 — ( 4 ) 992 — 992

Mortgage-backed securities 696 — ( 2 ) 694 — 694

Municipal bonds 364 — ( 2 ) 362 — 362

government agency bonds 735 — ( 1 ) 734 — 734

government bonds 6,704 1 ( 20 ) 6,685 6,685 —

Variable rate demand notes 500 — — 500 — 500

Total short-term investments 279,268 15 ( 1,692 ) 277,591 24,047 253,544

7 unchanged sentences

Cash equivalents

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

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

2 unchanged sentences

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

4 unchanged sentences

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 agency bonds 8,415 3 — 8,418 — 8,418

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

4 unchanged sentences

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 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.

(2) During the years ended December 31, 2022, 2021, and 2020 we sold cash equivalent investments for proceeds of $ 29.6 million, $ 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, 2022:

2 unchanged sentences

After 1 year through 5 years 59,296 58,808

After 5 years through 10 years 123 123

After 10 years $ 1,328 $ 1,327

Total $ 474,794 $ 473,121

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.

As of December 31, 2022, the amortized cost and fair market value of our held-to-maturity government bonds (Level 1) maturing within a year were $ 4.4 million and $ 4.3 million, respectively.

As of December 31, 2021 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.

4 unchanged sentences

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

For the year ended December 31, 2021 and 2020, we sold accounts receivable totaling $ 464.4 million and $ 499.3 million, net of discounts and fees of $ 1.2 million and $ 2.9 million, respectively.

For the years ended December 31, 2022 and 2021, we sold accounts receivable totaling $ 386.5 million and $ 464.4 million, net of discounts and fees of $ 1.1 million and $ 1.2 million, respectively.

Property, Plant and Equipment

4 unchanged sentences

Machinery and equipment 6,757,652 6,277,684

Finance lease machinery and equipment 105,294 40,856

Finance lease assets 165,122 105,294

Furniture, fixtures and other equipment 23,240 22,125

9 unchanged sentences

Depreciation expense $ 612,105 $ 562,962 $ 509,770

During 2022, we began construction of a new manufacturing facility in Bac Ninh, Vietnam and incurred costs of $ 79.6 million, including capitalized interest of $ 0.7 million.

AMKOR TECHNOLOGY, INC.

47 unchanged sentences

Deferred revenue and customer advances 81,459 117,741

Income taxes payable 38,957 26,602

Short-term finance lease liability 56,570 30,919

Income taxes payable 50,685 38,957

Accrued interest 10,878 10,789

12 unchanged sentences

Amkor Technology Korea, Inc.:

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

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

47,064 51,541

Term loan, fixed rate at 1.85 %, due April 2024 (1)

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

50,000 50,000

Term loan, fixed rate at 2.12 %, due December 2028 (2)

200,000 50,000

Amkor Technology Japan, Inc.:

9 unchanged sentences

Term loan, fixed rate at 1.23 %, due December 2026

79,927 113,834

Term loan, fixed rate at 1.59 %, due December 2027 (4)

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

Term loan, LIBOR plus 1.10 %, due March 2024

Term loan, LIBOR plus 1.40 %, due March 2022

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)

46,000 48,000

Term loans, LIBOR plus 0.80 %, due June 2025 (5)

Term loans, LIBOR plus 0.75 %, due 2025 (6)

Credit facility, TAIFX plus the applicable bank rate, due December 2024 (Taiwan) (7) — —

$ 600.0 million senior secured revolving credit facility, applicable bank rate plus 1.75 %, due March 2027 (Singapore) (8)

1,239,772 1,146,775

2 unchanged sentences

Long-term debt $ 1,088,521 $ 984,988

(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 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.

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

(1) In April 2021, we entered into a ₩ 80 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, 2022, ₩ 80.0 billion, or approximately $ 63 million, was available to be drawn.

(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).

(2) 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.

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

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

in December 2021.

Interest is payable quarterly.

During the year ended December 31, 2022, we borrowed $ 150.0 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.

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

4 unchanged sentences

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

(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.

(5) In June 2022, we borrowed $ 40.0 million under two $ 20.0 million term loans.

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.

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

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

(6) In August 2022 and September 2022, we borrowed $ 60.0 million under two $ 30.0 million term loans with each maturing in three years .

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.

(7) In December 2019, ATT entered into a $ 56.0 million borrowing arrangement (the “ATT Loan”).

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

In March 2022, in connection with our entry into the 2022 Singapore Revolver, the ATT Loan was amended to reduce the availability of the revolving credit facility from $ 36.0 million to $ 15.0 million.

As of December 31, 2022, $ 15.0 million was available for future borrowings under such credit facility.

(8) In July 2018, ATSH entered into a $ 250.0 million senior secured revolving credit facility.

In March 2022, this agreement was terminated and replaced with the 2022 Singapore Revolver.

The 2022 Singapore Revolver is guaranteed by Amkor Technology, Inc., ATT and AATT.

The maximum borrowing capacity under the 2022 Singapore Revolver is limited to a base amount equal to the lesser of:

(1) $ 600.0 million;

and (2) $ 250.0 million plus a variable amount equal to 37.5 % of our consolidated accounts receivable balance.

As of December 31, 2022, $ 600.0 million was available for future borrowings under the 2022 Singapore Revolver.

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)

As of December 31, 2022 the collateralized debt balance was $ 681.0 million, of which $ 376.4 million of assets were pledged as collateral.

Interest Rates

3 unchanged sentences

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

2.86 % 2.40 %

Amkor Technology Japan, Inc:

2 unchanged sentences

Term loan, LIBOR plus 1.10 %, due March 2024

Term loan, LIBOR Plus 1.40 %, due March 2022

Term loan, LIBOR plus 1.10 %, due March 2024

5.83 % 1.31 %

Term loans, LIBOR plus 0.80 % due June 2025

Term loans, LIBOR plus 0.75 %, due 2025

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

Compliance with Debt Covenants

1 unchanged sentence

is structurally subordinated in right of payment to all existing and future debt and other liabilities of our subsidiaries.

From time to time, Amkor Technology, Inc.

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

From time to time, Amkor Technology, Inc., ATT, AATT and ATSH guarantee certain debt of our 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 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.

These restrictions are determined in part by calculations based upon cumulative net income 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, 2022 and 2021.

4 unchanged sentences

Total debt $ 1,239,772

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

Pension and Severance Plans

9 unchanged sentences

Existing employees at that time were given the option of choosing either a defined benefit pension plan or a defined contribution plan for their future benefits and new employees since that date are enrolled in a defined contribution plan.

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

The changes to the balance of our accrued severance plan obligations are as follows:

For the Year Ended December 31,

2021 2020 2019

(In thousands)

8 unchanged sentences

Non-current portion of accrued severance plan obligations $ 48,743 $ 65,013

(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.

Notes to Consolidated Financial Statements — (Continued)

Foreign Defined Benefit Pension Plans

23 unchanged sentences

Funded status of the Plans at December 31 $ ( 32,422 ) $ ( 43,175 )

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

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

(In thousands)

4 unchanged sentences

The accumulated benefit obligation as of December 31, 2022 and 2021 was $ 125.6 million and $ 151.7 million, respectively.

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

The following table summarizes, by component, the change in accumulated other comprehensive income (loss), net of tax related to our Plans:

19 unchanged sentences

Aggregate fair value of plan assets 20,740 24,365

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

The following table summarizes total pension expense:

12 unchanged sentences

The components of net periodic pension cost other than the service cost component are included in other (income) expense, net in our Consolidated Statements of Income.

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

The following table summarizes the weighted-average assumptions used in computing the net periodic pension cost and projected benefit obligations:

55 unchanged sentences

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.

In November 2022, our Board of Directors approved a quarterly dividend of $ 0.075 per share, a 50 % increase from the rate set in November 2021.

Accumulated Other Comprehensive Income (Loss)

22 unchanged sentences

(In thousands)

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

Japanese yen $ 330,179 $ 6,284 Other current assets $ 396,946 $ ( 901 ) Accrued expenses

Korean won 65,927 333 Other current assets 125,321 ( 492 ) Accrued expenses

Philippine peso 3,085 ( 6 ) Accrued expenses 4,001 7 Other current assets

Taiwan dollar 28,763 ( 57 ) Accrued expenses — — N/A

Total forward contracts $ 427,954 $ 6,554 $ 526,268 $ ( 1,386 )

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.

For the years ended December 31, 2022 and 2021, the derivatives resulted in a net loss of $ 60.2 million and $ 58.8 million respectively, which were offset by the foreign currency gains associated with the underlying net assets or liabilities.

For the year ended December 31, 2020, the derivatives resulted in a net gain of $ 35.9 million, which was offset by the foreign currency losses associated with the underlying net liabilities.

Fair Value Measurements

18 unchanged sentences

We measure the fair value of our debt for disclosure purposes.

The following table presents the fair value of financial instruments that are not recorded at fair value on a recurring basis:

The following table presents the fair value of our debt:

December 31, 2022 December 31, 2021

16 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.

Purchase Commitments

In order to provide packaging and test services, we purchase materials under various long-term supply contracts.

Future minimum payments to be made under these contracts for the period 2022 through 2027 are $ 7.1 million.

Business Segments, Customer Concentrations and Geographic Information

9 unchanged sentences

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:

5 unchanged sentences

Total net sales $ 7,091,585 $ 6,138,329 $ 5,050,589

(1) Advanced Products include flip chip and wafer-level processing and related test services.

(2) Mainstream Products include wirebond packaging and related test services.

(1) Advanced Products include flip chip, memory and wafer-level processing and related test services.

(2) Mainstream Products include all other wirebond packaging and related test services.

Net sales by end market consist of the following :

1 unchanged sentence

2022 2021 2020

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

Communications (smartphones, tablets) 44 % 41 % 41 %

Automotive, industrial and other (ADAS, electrification, infotainment, safety) 20 % 21 % 20 %

Consumer (AR & gaming, connected home, home electronics, wearables) 20 % 22 % 24 %

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

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

Computing (data center, infrastructure, PC/laptop, storage) 16 % 16 % 15 %

Total net sales 100 % 100 % 100 %

3 unchanged sentences

(In thousands)

Japan $ 1,253,717 $ 1,152,641 $ 1,061,265

Europe, Middle East and Africa $ 1,084,853 $ 1,061,369 $ 848,301

Japan 1,132,121 1,253,717 1,152,641

Asia Pacific (excluding Japan) 1,017,246 999,591 672,563

2 unchanged sentences

Total net sales $ 7,091,585 $ 6,138,329 $ 5,050,589

In 2022, two customers accounted for 20.6 % and 10.1 % of total net sales, respectively.

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.

AMKOR TECHNOLOGY, INC.

9 unchanged sentences

Taiwan 261,449 264,540

Vietnam 79,630 —

Other foreign countries 583 694

14 unchanged sentences

Accrual at December 31, 2019 $ 2,196 $ 271 $ 174 $ 2,641

9,679 5,548 2,779 18,006

Charges 9,679 5,548 2,779 18,006

Cash Payments ( 7,536 ) ( 4,056 ) ( 2,731 ) ( 14,323 )

8 unchanged sentences

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

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

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

9 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