What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2024-02-16 compared with 2023-02-22 · 120 added, 149 removed, 1136 unchanged (19% of the section changed)

6 unchanged sentences

Consolidated Statements of Stockholders’ Equity — Years ended December 31, 2023 , 2022 and 2021

Consolidated Statements of Cash Flows — Years December 31, 202 2 , 202 1 and 20 20

Consolidated Statements of Cash Flows — Years ended December 31, 2023 , 2022 and 2021

Notes to Consolidated Financial Statements

98 unchanged sentences

Cash and cash equivalents $ 1,119,818 $ 959,072

Restricted cash — 962

Short-term investments (amortized cost of $ 474,663 and $ 283,641 , respectively)

90 unchanged sentences

Deferred income taxes 13,394 ( 11,623 ) 10,676

Loss on debt retirement 464 — 3,042

Gain on disposal of fixed assets, net ( 2,200 ) ( 2,807 ) ( 1,446 )

16 unchanged sentences

Proceeds from sale of property, plant and equipment 8,444 3,148 3,157

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

Proceeds from foreign exchange forward contracts 44,013 33,578 16,608

15 unchanged sentences

Proceeds from issuance of stock through share-based compensation plans 3,562 5,635 12,787

Payment of dividends ( 55,116 ) ( 51,213 ) —

Payments of dividends ( 74,686 ) ( 55,116 ) ( 51,213 )

Other financing activities ( 4,472 ) ( 1,572 ) ( 2,548 )

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

Net cash (used in) provided by financing activities ( 149,207 ) 55,597 ( 30,102 )

Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash ( 10,692 ) ( 16,299 ) ( 17,990 )

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

Net increase in cash, cash equivalents and restricted cash 158,211 130,885 129,324

Cash, cash equivalents and restricted cash, beginning of period 962,406 831,521 702,197

22 unchanged sentences

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;

• Designing and developing innovative packaging and test technologies focused on advanced packaging solutions in high growth markets, including artificial intelligence;

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

2 unchanged sentences

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

• Providing a geographically diverse operating base;

• Providing a geographically diverse operating base with manufacturing facilities in multiple countries across Asia and in Europe;

• Developing a competitive cost structure through disciplined capital investment.

9 unchanged sentences

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.

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.

As a result, actual results could differ materially from these estimates and assumptions, including the impact of 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

26 unchanged sentences

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

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.

Direct sales to our largest customer accounted for 27.7 % of our net sales for the year ended December 31, 2023.

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.

4 unchanged sentences

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.

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

Government or its agencies, asset-backed securities and commercial paper.

At December 31, 2023, 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 and commercial paper.

and foreign bank operating and time deposit accounts and invested in various available-for-sale debt investments.

See Note 6 for further discussion regarding our available-for-sale debt investments.

Contingencies and Litigation

11 unchanged sentences

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.

money market funds and commercial paper.

and foreign bank operating and time deposit accounts and invested in various available-for-sale debt investments.

See Note 6 for further discussion regarding our available-for-sale debt investments.

Restricted Cash

Restricted cash, current, consists of short-term cash equivalents used to collateralize our daily banking services.

Restricted cash, non-current, mainly consists of collateral to fulfill foreign trade compliance requirements.

Restricted cash, non-current, mainly consists of collateral to fulfill utility requirements.

Generally, we classify our short-term investments in fixed income securities as available-for-sale debt investments.

37 unchanged sentences

Certain leases also include options to purchase the leased property.

Total long-term finance lease liabilities as of December 31, 2023 and December 31, 2022 were $ 47.8 million and $ 54.8 million, respectively.

Goodwill is recorded when the cost of an acquisition exceeds the fair value of the net tangible and identifiable intangible assets acquired.

6 unchanged sentences

We do not apply hedge accounting to the derivatives.

Gains and losses recognized on our derivatives are classified as operating activities and are included within other, net in our Consolidated Statements of Cash Flows.

See Note 15 for further discussion about the derivatives.

48 unchanged sentences

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 carryforwards (“NOLs”) 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.

3 unchanged sentences

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.

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

With the 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.

3 unchanged sentences

See Note 4 for further discussion regarding unrecognized income tax benefits.

Recently Issued Standards

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures (“ASU 2023-09”).

ASU 2023-09 requires disclosure of additional income tax information, primarily related to effective tax rate reconciliation and income taxes paid.

ASU 2023-09 is effective for annual periods beginning after December 15, 2024.

Early adoption is permitted.

Adoption of this ASU should be applied on a prospective basis, but retrospective application is permitted.

We are currently evaluating the impact of this new standard on our financial statements, which is expected to result in enhanced disclosures.

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

Share-Based Compensation Plans

9 unchanged sentences

(iv) stock appreciation rights;

(v) performance units and performance

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

(v) performance units and performance shares;

and (vi) other stock or cash awards.

26 unchanged sentences

The dividend yield is based on the annualized declared quarterly dividend rate divided by our closing stock price at the date of the grant.

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

The following table summarizes our stock option activity for the year ended December 31, 2023:

15 unchanged sentences

1,973 $ 10.51 4.93 years $ 44,903

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:

For the Year Ended December 31,

Expected life (in years) 6.7 5.6

Risk-free interest rate 1.3 % 0.3 %

Volatility 54 % 52 %

Dividend yield 0.8 % 0.3 %

Weighted-average grant date fair value per option granted $ 9.54 $ 5.79

Total unrecognized compensation expense from stock options was $ 0.3 million as of December 31, 2023, which is expected to be recognized over a weighted-average period of approximately 0.79 years beginning January 1, 2024.

12 unchanged sentences

Non-vested at December 31, 2023

Total unrecognized compensation expense from restricted shares was $ 1.3 million as of December 31, 2022, which is expected to be recognized over a weighted-average period of approximately 0.6 years beginning January 1, 2023.

For the year ended December 31, 2023, the total fair value of our vested restricted shares was $ 2.9 million, respectively.

Restricted stock units

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 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.

RSUs generally vest in four equal installments over a four-year period such that 100% of the RSUs will become vested

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

on the fourth anniversary of the award, subject to the recipient’s continued employment with us on the applicable vesting dates.

In some circumstances, we have granted RSUs subject to different vesting conditions, including RSUs that vest in full in a single installment.

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.

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.

In some circumstances, we have granted PSUs subject to different vesting conditions, including PSUs that vest in full upon the achievement of performance goals other than Cumulative Basic EPS.

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, 2022:

The following table summarizes our RSU and PSU activity:

(In thousands) Weighted- average

4 unchanged sentences

Non-vested at December 31, 2021

Awards granted 531 22.29

Awards vested ( 22 ) 22.23

Awards forfeited ( 57 ) 22.63

Non-vested at December 31, 2022

Awards granted 1,049 26.72

Awards vested ( 464 ) 22.19

Awards forfeited ( 16 ) 25.24

Non-vested at December 31, 2023

1,307 $ 25.87

Total unrecognized compensation expense from RSUs and PSUs was $ 12.1 million as of December 31, 2023, which is expected to be recognized over a weighted-average period of approximately 1.3 years beginning January 1, 2024.

For the years ended December 31, 2023 and 2022, the total fair value of our vested RSUs and PSUs were $ 11.6 million and $ 0.5 million, respectively.

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

Other Income and Expense

15 unchanged sentences

Income before taxes $ 443,841 $ 856,932 $ 715,066

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 $ 81,710 $ 89,890 $ 69,459

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

The reconciliation between the U.S.

12 unchanged sentences

Income tax expense 18.4 % 10.5 % 9.7 %

(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.

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

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.

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

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 2028.

We recognized $ 18.6 million, $ 84.5 million and $ 56.7 million in tax benefits as a result of the conditional reduced tax rates in 2023, 2022 and 2021, respectively.

The benefit of the conditional reduced tax rates on diluted earnings per share was approximately $ 0.08 , $ 0.34 and $ 0.23 for 2023, 2022 and 2021, respectively.

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:

NOLs $ 49,846 $ 36,326

Income tax credits 92,368 93,257

Net operating loss carryforwards $ 33,679 $ 49,846

Tax credit carryforwards 88,147 92,368

Property, plant and equipment 21,387 15,328

32 unchanged sentences

Total valuation allowance $ 114,811 $ 101,869

Our NOLs are as follows:

Our net operating loss carryforwards are as follows:

2023 2022 Expiration

(In thousands)

Federal NOLs $ 13,003 $ 21,388 2023-2024

State NOLs 38,384 55,694 2023-2036

Foreign NOLs 240,740 155,323 2024-2036

federal net operating loss carryforwards $ 5,611 $ 13,003 2024

state net operating loss carryforwards 32,612 38,384 2024-2036

Foreign net operating loss carryforwards 196,636 240,740 2027-2031

At December 31, 2023 and 2022, a portion of our remaining U.S.

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.

federal net operating loss carryforwards 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 foreign net operating loss carryforwards that we do not expect to have sufficient taxable income to realize as of December 31, 2023 and 2022.

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

Current examinations include 2019-2022 Korean income tax returns, 2017-2021 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:

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The net decrease in our unrecognized tax benefits was $ 1.7 million from December 31, 2022 to December 31, 2023.

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

The decrease was primarily related to the lapse of statutes of limitations.

At December 31, 2023, all of our gross unrecognized tax benefits would reduce our effective tax rate, if recognized.

38 unchanged sentences

Money market funds 60,719 — — 60,719 60,719 —

Municipal bonds 1,001 — — 1,001 — 1,001

government bonds 2,996 — — 2,996 2,996 —

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

Total cash equivalents (2) 111,916 — — 111,916 63,715 48,201

4 unchanged sentences

Corporate bonds 251,671 432 ( 299 ) 251,804 — 251,804

Foreign government bonds 996 — ( 4 ) 992 — 992

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

Municipal bonds 364 — ( 2 ) 362 — 362

government agency bonds 13,200 — ( 9 ) 13,191 — 13,191

9 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 —

Municipal bonds 1,001 — — 1,001 — 1,001

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

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

US 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

After 1 year through 5 years 109,338 109,601

Asset-backed securities 65,478 65,626

Total $ 581,367 $ 581,573

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, 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.

Notes to Consolidated Financial Statements — (Continued)

As of December 31, 2023, the amortized cost and fair market value of our held-to-maturity government bonds (Level 1) maturing within a year were $ 5.2 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.

Factoring of Accounts Receivable

14 unchanged sentences

Total property, plant and equipment 9,971,780 9,371,331

Less accumulated depreciation and amortization ( 6,235,717 ) ( 5,770,658 )

Accumulated depreciation and amortization ( 6,672,335 ) ( 6,235,717 )

Total property, plant and equipment, net $ 3,299,445 $ 3,135,614

4 unchanged sentences

Depreciation expense $ 630,941 $ 612,105 $ 562,962

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.

In October 2023, we completed the first phase of construction for our Vietnam Facility and transferred $ 244.3 million from construction in progress to buildings and improvements.

AMKOR TECHNOLOGY, INC.

63 unchanged sentences

Amkor Technology Korea, Inc.:

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

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

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

Term loan, fixed rate at 2.12 %, due December 2028

2 unchanged sentences

Short-term term loans, variable rate (2) 5,098 4,042

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

Term loan, fixed rate at 1.30 %, due July 2023

Term loan, fixed rate at 1.35 %, due December 2024

40,414 86,943

7 unchanged sentences

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

Term loan, LIBOR plus 1.10 %, due March 2024

Term loans, SOFR plus 0.75 %, due March 2024 (4)

Term loans, SOFR plus 0.75 %, due June 2025 (4)

37,000 39,000

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

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

Term loans, SOFR plus 0.75 %, due 2025 (4)

57,500 59,500

Term loans, SOFR plus 1.40 %, due December 2026 (5)

Credit facility, TAIFX plus the applicable bank rate, due December 2024 (Taiwan) (6) — —

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

Senior secured revolving credit facility, applicable bank rate plus 1.75 %, due March 2027 (Singapore) (7)

1,209,785 1,239,772

5 unchanged sentences

As of December 31, 2023, ₩ 80.0 billion, or approximately $ 62 million, was available to be drawn.

(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

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.

(2) 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.

(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.

(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.

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

(4) In June 2023, Amkor Assembly & Test (Shanghai) Co.

amended all term loans to replace London Interbank Offered Rate (“LIBOR”) with a Secured Overnight Financing Rate (“SOFR”) plus 0.75 % annual base rate.

This contractual amendment is treated as a modification with no recognized gain or loss.

(5) In December 2023, we entered into a $ 45.0 million 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.

(6) In March 2022, ATT amended an existing revolving credit facility to reduce the availability from $ 36.0 million to $ 15.0 million.

As of December 31, 2023, $ 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.

(7) In March 2022, ATSH entered into the 2022 Singapore Revolver, which 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.

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

As of December 31, 2023, $ 600.0 million was available for future borrowings under the 2022 Singapore Revolver.

4 unchanged sentences

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 Korea, Inc.:

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

Amkor Technology Japan, Inc:

1 unchanged sentence

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

Term loan, LIBOR plus 1.10 %, due March 2024

Term loans, SOFR plus 0.75 % due March 2024

Term loans, SOFR plus 0.75 % due June 2025

6.07 % 5.55 %

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)

Term loans, SOFR plus 0.75 %, due 2025

6.07 % 5.48 %

Term loans, SOFR plus 1.40 %, due December 2026

Compliance with Debt Covenants

5 unchanged sentences

We were in compliance with all debt covenants at December 31, 2023 and 2022.

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

(In thousands)

1 unchanged sentence

2024 $ 131,624

Thereafter 50,000

Total debt $ 1,209,785

10 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:

10 unchanged sentences

Non-current portion of accrued severance plan obligations $ 39,881 $ 48,743

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 $ ( 35,085 ) $ ( 32,422 )

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

(In thousands)

4 unchanged sentences

The accumulated benefit obligation as of December 31, 2023 and 2022 was $ 128.3 million and $ 125.6 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 21,304 20,740

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:

3 unchanged sentences

Discount rate for determining benefit obligations at December 31 3.8 % 4.2 % 2.6 %

Rate of compensation increase for determining net periodic

pension cost 3.7 % 3.7 % 3.7 %

Rate of compensation increase for determining benefit obligations

at December 31 3.6 % 3.7 % 3.7 %

Rate of compensation increase for determining net periodic pension cost 3.6 % 3.7 % 3.7 %

Rate of compensation increase for determining benefit obligations at December 31 3.7 % 3.6 % 3.7 %

Expected rate of return on plan assets for determining net periodic

71 unchanged sentences

(In thousands)

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

Japanese yen $ 279,027 $ 2,745 Other current assets $ 330,179 $ 6,284 Other current assets

Korean won 59,036 ( 97 ) Accrued expenses 65,927 333 Other current assets

Philippine peso 6,553 ( 20 ) Accrued expenses 3,085 ( 6 ) Accrued expenses

Singapore dollar 11,506 20 Other current assets — — N/A

Taiwan dollar 37,914 89 Other current assets 28,763 ( 57 ) Accrued expenses

Total forward contracts $ 394,036 $ 2,737 $ 427,954 $ 6,554

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.

For the years ended December 31, 2023, 2022 and 2021, the derivatives resulted in a net loss of $ 38.6 million, $ 60.2 million and $ 58.8 million, respectively, which were partially offset by the foreign currency gains associated with the underlying net assets or liabilities.

Fair Value Measurements

62 unchanged sentences

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

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

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

Consumer (AR & gaming, connected home, home electronics, wearables) 13 % 20 % 22 %

Total net sales 100 % 100 % 100 %

9 unchanged sentences

Total net sales $ 6,503,065 $ 7,091,585 $ 6,138,329

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

In 2023, 2022 and 2021 one customer accounted for 27.7 %, 20.6 % and 13.7 % of total net sales, respectively.

In 2022, a second customer accounted for 10.1 % of total net sales.

AMKOR TECHNOLOGY, INC.

14 unchanged sentences

Total property, plant and equipment, net $ 3,299,445 $ 3,135,614

Restructuring and Other Exit Activities

As part of our ongoing efforts to improve our manufacturing operations and manage costs, we regularly evaluate our staffing levels and facility requirements compared to business needs.

The following table summarizes our exit activities associated with these efforts.

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

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

Japan Consolidation Activities

During the year ended December 31, 2021, we recorded restructuring charges of $ 2.9 million associated with our Japan factory consolidation efforts.

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

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

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

(In thousands)

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

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

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

Non-cash Amounts 26 ( 4 ) ( 3 ) 19

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 — — — $ —

(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.

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