Document
00010471272019Q3FALSE--12-3100010471272019-01-012019-09-30xbrli:shares00010471272019-10-25iso4217:USD00010471272019-07-012019-09-3000010471272018-07-012018-09-3000010471272018-01-012018-09-30iso4217:USDxbrli:shares00010471272019-09-3000010471272018-12-310001047127us-gaap:CommonStockMember2019-06-300001047127us-gaap:AdditionalPaidInCapitalMember2019-06-300001047127us-gaap:RetainedEarningsMember2019-06-300001047127us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-300001047127us-gaap:TreasuryStockMember2019-06-300001047127us-gaap:ParentMember2019-06-300001047127us-gaap:NoncontrollingInterestMember2019-06-3000010471272019-06-300001047127us-gaap:RetainedEarningsMember2019-07-012019-09-300001047127us-gaap:ParentMember2019-07-012019-09-300001047127us-gaap:NoncontrollingInterestMember2019-07-012019-09-300001047127us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-07-012019-09-300001047127us-gaap:TreasuryStockMember2019-07-012019-09-300001047127us-gaap:CommonStockMember2019-07-012019-09-300001047127us-gaap:AdditionalPaidInCapitalMember2019-07-012019-09-300001047127us-gaap:CommonStockMember2019-09-300001047127us-gaap:AdditionalPaidInCapitalMember2019-09-300001047127us-gaap:RetainedEarningsMember2019-09-300001047127us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-09-300001047127us-gaap:TreasuryStockMember2019-09-300001047127us-gaap:ParentMember2019-09-300001047127us-gaap:NoncontrollingInterestMember2019-09-300001047127us-gaap:CommonStockMember2018-12-310001047127us-gaap:AdditionalPaidInCapitalMember2018-12-310001047127us-gaap:RetainedEarningsMember2018-12-310001047127us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310001047127us-gaap:TreasuryStockMember2018-12-310001047127us-gaap:ParentMember2018-12-310001047127us-gaap:NoncontrollingInterestMember2018-12-310001047127us-gaap:RetainedEarningsMember2019-01-012019-09-300001047127us-gaap:ParentMember2019-01-012019-09-300001047127us-gaap:NoncontrollingInterestMember2019-01-012019-09-300001047127us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-09-300001047127us-gaap:TreasuryStockMember2019-01-012019-09-300001047127us-gaap:CommonStockMember2019-01-012019-09-300001047127us-gaap:AdditionalPaidInCapitalMember2019-01-012019-09-300001047127us-gaap:CommonStockMember2018-06-300001047127us-gaap:AdditionalPaidInCapitalMember2018-06-300001047127us-gaap:RetainedEarningsMember2018-06-300001047127us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-06-300001047127us-gaap:TreasuryStockMember2018-06-300001047127us-gaap:ParentMember2018-06-300001047127us-gaap:NoncontrollingInterestMember2018-06-3000010471272018-06-300001047127us-gaap:RetainedEarningsMember2018-07-012018-09-300001047127us-gaap:ParentMember2018-07-012018-09-300001047127us-gaap:NoncontrollingInterestMember2018-07-012018-09-300001047127us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-07-012018-09-300001047127us-gaap:TreasuryStockMember2018-07-012018-09-300001047127us-gaap:CommonStockMember2018-07-012018-09-300001047127us-gaap:AdditionalPaidInCapitalMember2018-07-012018-09-300001047127us-gaap:CommonStockMember2018-09-300001047127us-gaap:AdditionalPaidInCapitalMember2018-09-300001047127us-gaap:RetainedEarningsMember2018-09-300001047127us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-09-300001047127us-gaap:TreasuryStockMember2018-09-300001047127us-gaap:ParentMember2018-09-300001047127us-gaap:NoncontrollingInterestMember2018-09-3000010471272018-09-300001047127us-gaap:CommonStockMember2017-12-310001047127us-gaap:AdditionalPaidInCapitalMember2017-12-310001047127us-gaap:RetainedEarningsMember2017-12-310001047127us-gaap:AccumulatedOtherComprehensiveIncomeMember2017-12-310001047127us-gaap:TreasuryStockMember2017-12-310001047127us-gaap:ParentMember2017-12-310001047127us-gaap:NoncontrollingInterestMember2017-12-3100010471272017-12-310001047127us-gaap:RetainedEarningsMember2018-01-012018-09-300001047127us-gaap:ParentMember2018-01-012018-09-300001047127us-gaap:NoncontrollingInterestMember2018-01-012018-09-300001047127us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-01-012018-09-300001047127us-gaap:TreasuryStockMember2018-01-012018-09-300001047127us-gaap:CommonStockMember2018-01-012018-09-300001047127us-gaap:AdditionalPaidInCapitalMember2018-01-012018-09-300001047127amkr:AdvancedProductsMember2019-07-012019-09-300001047127amkr:AdvancedProductsMember2018-07-012018-09-300001047127amkr:AdvancedProductsMember2019-01-012019-09-300001047127amkr:AdvancedProductsMember2018-01-012018-09-300001047127amkr:MainstreamProductsMember2019-07-012019-09-300001047127amkr:MainstreamProductsMember2018-07-012018-09-300001047127amkr:MainstreamProductsMember2019-01-012019-09-300001047127amkr:MainstreamProductsMember2018-01-012018-09-30xbrli:pure0001047127amkr:SalesChannelCommunicationsMemberus-gaap:RevenueFromContractWithCustomerMemberamkr:DistributionChannelConcentrationRiskMember2019-07-012019-09-300001047127amkr:SalesChannelCommunicationsMemberus-gaap:RevenueFromContractWithCustomerMemberamkr:DistributionChannelConcentrationRiskMember2018-07-012018-09-300001047127amkr:SalesChannelCommunicationsMemberus-gaap:RevenueFromContractWithCustomerMemberamkr:DistributionChannelConcentrationRiskMember2019-01-012019-09-300001047127amkr:SalesChannelCommunicationsMemberus-gaap:RevenueFromContractWithCustomerMemberamkr:DistributionChannelConcentrationRiskMember2018-01-012018-09-300001047127us-gaap:RevenueFromContractWithCustomerMemberamkr:DistributionChannelConcentrationRiskMemberamkr:SalesChannelAutomotiveIndustrialAndOtherMember2019-07-012019-09-300001047127us-gaap:RevenueFromContractWithCustomerMemberamkr:DistributionChannelConcentrationRiskMemberamkr:SalesChannelAutomotiveIndustrialAndOtherMember2018-07-012018-09-300001047127us-gaap:RevenueFromContractWithCustomerMemberamkr:DistributionChannelConcentrationRiskMemberamkr:SalesChannelAutomotiveIndustrialAndOtherMember2019-01-012019-09-300001047127us-gaap:RevenueFromContractWithCustomerMemberamkr:DistributionChannelConcentrationRiskMemberamkr:SalesChannelAutomotiveIndustrialAndOtherMember2018-01-012018-09-300001047127amkr:SalesChannelComputingMemberus-gaap:RevenueFromContractWithCustomerMemberamkr:DistributionChannelConcentrationRiskMember2019-07-012019-09-300001047127amkr:SalesChannelComputingMemberus-gaap:RevenueFromContractWithCustomerMemberamkr:DistributionChannelConcentrationRiskMember2018-07-012018-09-300001047127amkr:SalesChannelComputingMemberus-gaap:RevenueFromContractWithCustomerMemberamkr:DistributionChannelConcentrationRiskMember2019-01-012019-09-300001047127amkr:SalesChannelComputingMemberus-gaap:RevenueFromContractWithCustomerMemberamkr:DistributionChannelConcentrationRiskMember2018-01-012018-09-300001047127us-gaap:RevenueFromContractWithCustomerMemberus-gaap:SalesChannelDirectlyToConsumerMemberamkr:DistributionChannelConcentrationRiskMember2019-07-012019-09-300001047127us-gaap:RevenueFromContractWithCustomerMemberus-gaap:SalesChannelDirectlyToConsumerMemberamkr:DistributionChannelConcentrationRiskMember2018-07-012018-09-300001047127us-gaap:RevenueFromContractWithCustomerMemberus-gaap:SalesChannelDirectlyToConsumerMemberamkr:DistributionChannelConcentrationRiskMember2019-01-012019-09-300001047127us-gaap:RevenueFromContractWithCustomerMemberus-gaap:SalesChannelDirectlyToConsumerMemberamkr:DistributionChannelConcentrationRiskMember2018-01-012018-09-300001047127amkr:StockOptionsAndRestrictedSharesMember2019-07-012019-09-300001047127amkr:StockOptionsAndRestrictedSharesMember2018-07-012018-09-300001047127amkr:StockOptionsAndRestrictedSharesMember2019-01-012019-09-300001047127amkr:StockOptionsAndRestrictedSharesMember2018-01-012018-09-300001047127us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2018-12-310001047127us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2018-12-310001047127us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2019-01-012019-09-300001047127us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2019-01-012019-09-300001047127us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2019-09-300001047127us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2019-09-300001047127us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2017-12-310001047127us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2017-12-310001047127us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2018-01-012018-09-300001047127us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2018-01-012018-09-300001047127us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2018-09-300001047127us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2018-09-300001047127amkr:TotalFactoredMember2019-07-012019-09-300001047127amkr:TotalFactoredMember2019-01-012019-09-300001047127amkr:FactoringFeesMember2019-07-012019-09-300001047127amkr:FactoringFeesMember2019-01-012019-09-300001047127amkr:TotalFactoredMember2018-07-012018-09-300001047127amkr:TotalFactoredMember2018-01-012018-09-300001047127amkr:FactoringFeesMember2018-07-012018-09-300001047127amkr:FactoringFeesMember2018-01-012018-09-300001047127us-gaap:LandMember2019-09-300001047127us-gaap:LandMember2018-12-310001047127us-gaap:UseRightsMember2019-09-300001047127us-gaap:UseRightsMember2018-12-310001047127us-gaap:BuildingAndBuildingImprovementsMember2019-09-300001047127us-gaap:BuildingAndBuildingImprovementsMember2018-12-310001047127us-gaap:MachineryAndEquipmentMember2019-09-300001047127us-gaap:MachineryAndEquipmentMember2018-12-310001047127amkr:FinanceLeasedAssetsMember2019-09-300001047127amkr:FinanceLeasedAssetsMember2018-12-310001047127amkr:SoftwareAndComputerEquipmentMember2019-09-300001047127amkr:SoftwareAndComputerEquipmentMember2018-12-310001047127us-gaap:FurnitureAndFixturesMember2019-09-300001047127us-gaap:FurnitureAndFixturesMember2018-12-310001047127us-gaap:ConstructionInProgressMember2019-09-300001047127us-gaap:ConstructionInProgressMember2018-12-310001047127srt:MinimumMember2019-01-012019-09-300001047127srt:MaximumMember2019-01-012019-09-300001047127amkr:SeniorNotesDueOctober2022Memberus-gaap:SeniorNotesMember2019-09-300001047127amkr:SeniorNotesDueOctober2022Memberus-gaap:SeniorNotesMember2018-12-310001047127us-gaap:SeniorNotesMemberamkr:SeniorNotesDueSeptember2027Member2019-09-300001047127us-gaap:SeniorNotesMemberamkr:SeniorNotesDueSeptember2027Member2018-12-310001047127amkr:RevolvingCreditFacilityDueOctober2020Memberamkr:SubsidiaryTermLoansMembercountry:KR2019-09-300001047127amkr:SubsidiaryTermLoansMemberamkr:RevolvingCreditFacilityDueOctober2019Membercountry:KR2019-09-300001047127amkr:SubsidiaryTermLoansMemberamkr:RevolvingCreditFacilityDueOctober2019Membercountry:KR2018-12-310001047127amkr:SubsidiaryTermLoansMemberamkr:FixedRateTermLoanDueMay2020Membercountry:KR2019-09-300001047127amkr:SubsidiaryTermLoansMemberamkr:FixedRateTermLoanDueMay2020Membercountry:KR2018-12-310001047127amkr:SubsidiaryTermLoansMemberamkr:TermLoanDueJune2020Memberamkr:FundFloatingRateMembercountry:KR2019-01-012019-09-300001047127amkr:SubsidiaryTermLoansMemberamkr:TermLoanDueJune2020Membercountry:KR2019-09-300001047127amkr:SubsidiaryTermLoansMemberamkr:TermLoanDueJune2020Membercountry:KR2018-12-310001047127amkr:SubsidiaryTermLoansMemberamkr:TermLoanDueJuly2022Memberamkr:ApplicableBankRateMembercountry:KR2019-01-012019-09-300001047127amkr:SubsidiaryTermLoansMemberamkr:TermLoanDueJuly2022Membercountry:KR2019-09-300001047127amkr:SubsidiaryTermLoansMemberamkr:TermLoanDueJuly2022Membercountry:KR2018-12-310001047127amkr:SubsidiaryTermLoansMemberamkr:ApplicableBankRateMemberamkr:TermLoanDueSeptember2022Membercountry:KR2019-01-012019-09-300001047127amkr:SubsidiaryTermLoansMemberamkr:TermLoanDueSeptember2022Membercountry:KR2019-09-300001047127amkr:SubsidiaryTermLoansMemberamkr:TermLoanDueSeptember2022Membercountry:KR2018-12-310001047127us-gaap:LondonInterbankOfferedRateLIBORMemberamkr:SubsidiaryTermLoansMemberamkr:TermLoanDueDecember2023Membercountry:KR2019-01-012019-09-300001047127amkr:SubsidiaryTermLoansMemberamkr:TermLoanDueDecember2023Membercountry:KR2019-09-300001047127amkr:SubsidiaryTermLoansMemberamkr:TermLoanDueDecember2023Membercountry:KR2018-12-310001047127amkr:SubsidiaryTermLoansMemberamkr:ApplicableBankRateMemberamkr:TermLoanDueDecember2028Membercountry:KR2019-01-012019-09-300001047127amkr:SubsidiaryTermLoansMemberamkr:TermLoanDueDecember2028Membercountry:KR2019-09-300001047127amkr:SubsidiaryTermLoansMemberamkr:TermLoanDueDecember2028Membercountry:KR2018-12-310001047127country:JPamkr:SubsidiaryTermLoansMemberamkr:ShorttermtermloanvariablerateMember2019-09-300001047127country:JPamkr:SubsidiaryTermLoansMemberamkr:ShorttermtermloanvariablerateMember2018-12-310001047127country:JPamkr:SubsidiaryTermLoansMemberamkr:TermLoanDueJune2022Member2019-09-300001047127country:JPamkr:SubsidiaryTermLoansMemberamkr:TermLoanDueJune2022Member2018-12-310001047127country:JPamkr:SubsidiaryTermLoansMemberamkr:TermLoanFixedRateat0.60DueJuly2022Member2019-09-300001047127country:JPamkr:SubsidiaryTermLoansMemberamkr:TermLoanFixedRateat0.60DueJuly2022Member2018-12-310001047127country:JPamkr:SubsidiaryTermLoansMemberamkr:TermLoanFixedRateat1.30DueJuly2023Member2019-09-300001047127country:JPamkr:SubsidiaryTermLoansMemberamkr:TermLoanFixedRateat1.30DueJuly2023Member2018-12-310001047127us-gaap:LondonInterbankOfferedRateLIBORMemberamkr:TermLoanLIBORplus1.80dueDecember2019Membercountry:CN2019-01-012019-09-300001047127amkr:TermLoanLIBORplus1.80dueDecember2019Membercountry:CN2019-09-300001047127amkr:TermLoanLIBORplus1.80dueDecember2019Membercountry:CN2018-12-310001047127us-gaap:LondonInterbankOfferedRateLIBORMembercountry:CNamkr:TermLoanLIBORplus1.60dueMarch2022Member2019-01-012019-09-300001047127country:CNamkr:TermLoanLIBORplus1.60dueMarch2022Member2019-09-300001047127country:CNamkr:TermLoanLIBORplus1.60dueMarch2022Member2018-12-310001047127us-gaap:LondonInterbankOfferedRateLIBORMembercountry:CNamkr:TermLoanLIBORplus1.40dueMarch2022Member2019-01-012019-09-300001047127country:CNamkr:TermLoanLIBORplus1.40dueMarch2022Member2019-09-300001047127country:CNamkr:TermLoanLIBORplus1.40dueMarch2022Member2018-12-310001047127us-gaap:RevolvingCreditFacilityMemberamkr:SeniorSecuredRevolvingCreditFacilitydueJuly2023Membercountry:SGus-gaap:LineOfCreditMember2019-09-300001047127us-gaap:RevolvingCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMemberamkr:SeniorSecuredRevolvingCreditFacilitydueJuly2023Membercountry:SGus-gaap:LineOfCreditMembersrt:MinimumMember2019-01-012019-09-300001047127us-gaap:RevolvingCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMemberamkr:SeniorSecuredRevolvingCreditFacilitydueJuly2023Membercountry:SGus-gaap:LineOfCreditMembersrt:MaximumMember2019-01-012019-09-300001047127us-gaap:RevolvingCreditFacilityMemberamkr:SeniorSecuredRevolvingCreditFacilitydueJuly2023Memberus-gaap:LineOfCreditMember2019-09-300001047127us-gaap:RevolvingCreditFacilityMemberamkr:SeniorSecuredRevolvingCreditFacilitydueJuly2023Memberus-gaap:LineOfCreditMember2018-12-310001047127us-gaap:RevolvingCreditFacilityMembercountry:TWamkr:RevolvingcreditfacilitydueNovember2020Memberus-gaap:LineOfCreditMember2019-09-300001047127us-gaap:RevolvingCreditFacilityMembercountry:TWamkr:RevolvingcreditfacilitydueNovember2020Memberus-gaap:LineOfCreditMember2018-12-310001047127amkr:SeniorNotesDueOctober2022Memberus-gaap:SeniorNotesMember2019-04-300001047127amkr:SeniorNotesDueOctober2022Memberus-gaap:SeniorNotesMember2019-04-012019-04-300001047127us-gaap:SeniorNotesMemberamkr:SeniorNotesDueSeptember2027Member2019-03-310001047127amkr:RevolvingCreditFacilityDueOctober2020Memberamkr:SubsidiaryTermLoansMembercountry:KR2018-10-310001047127amkr:SubsidiaryTermLoansMemberamkr:FixedRateTermLoanDueMay2020Membercountry:KR2017-05-300001047127amkr:SubsidiaryTermLoansMemberamkr:FixedRateTermLoanDueMay2020Membercountry:KR2019-01-012019-09-300001047127amkr:SubsidiaryTermLoansMemberamkr:TermLoanDueJune2020Membercountry:KR2015-05-310001047127amkr:SubsidiaryTermLoansMemberamkr:TermLoanDueJune2020Memberamkr:FundFloatingRateMembercountry:KR2015-05-012015-05-310001047127amkr:SubsidiaryTermLoansMemberamkr:TermLoanDueJune2020Membercountry:KR2019-01-012019-09-30amkr:loan0001047127amkr:SubsidiaryTermLoansMemberamkr:ApplicableBankRateMembercountry:KR2019-07-310001047127amkr:SubsidiaryTermLoansMemberamkr:ApplicableBankRateMembercountry:KR2019-07-012019-07-310001047127amkr:SubsidiaryTermLoansMemberamkr:TermLoanDueJuly2022Membercountry:KR2019-07-310001047127amkr:SubsidiaryTermLoansMemberamkr:TermLoanDueSeptember2022Membercountry:KR2019-09-012019-09-300001047127amkr:SubsidiaryTermLoansMemberamkr:TermLoanDueDecember2028Membercountry:KR2019-03-310001047127amkr:SubsidiaryTermLoansMemberamkr:TermLoanDueDecember2028Membercountry:KR2019-01-012019-09-300001047127amkr:SubsidiaryTermLoansMemberamkr:ApplicableBankRateMemberamkr:TermLoanDueDecember2028Membercountry:KR2018-12-012018-12-310001047127country:JPamkr:TokyoInterbankOfferedRateTIBORMemberamkr:SubsidiaryTermLoansMemberamkr:ShorttermtermloanvariablerateMembersrt:MinimumMember2019-01-012019-09-300001047127country:JPamkr:TokyoInterbankOfferedRateTIBORMemberamkr:SubsidiaryTermLoansMemberamkr:ShorttermtermloanvariablerateMembersrt:MaximumMember2019-01-012019-09-300001047127country:JPsrt:WeightedAverageMemberamkr:SubsidiaryTermLoansMemberamkr:ShorttermtermloanvariablerateMember2019-09-300001047127amkr:TermLoanLIBORplus1.80dueDecember2019Membercountry:CN2017-03-310001047127amkr:TermLoanLIBORplus1.80dueDecember2019Membercountry:CN2016-12-012016-12-310001047127us-gaap:LondonInterbankOfferedRateLIBORMemberamkr:TermLoanLIBORplus1.80dueDecember2019Membercountry:CN2016-12-012016-12-310001047127amkr:TermLoanLIBORplus1.80dueDecember2019Membercountry:CN2019-01-012019-09-300001047127country:CNamkr:TermLoanLIBORplus1.60dueMarch2022Member2019-03-310001047127country:CNamkr:TermLoanLIBORplus1.60dueMarch2022Member2019-03-012019-03-310001047127us-gaap:LondonInterbankOfferedRateLIBORMembercountry:CNamkr:TermLoanLIBORplus1.60dueMarch2022Member2019-03-012019-03-310001047127amkr:SubsidiaryTermLoansMembercountry:CNamkr:AmkorAssemblyTestShanghaiCo.Ltd.TermLoanMember2019-04-300001047127amkr:SubsidiaryTermLoansMembercountry:CNamkr:AmkorAssemblyTestShanghaiCo.Ltd.TermLoanMember2019-04-012019-04-300001047127us-gaap:LondonInterbankOfferedRateLIBORMemberamkr:SubsidiaryTermLoansMembercountry:CNamkr:AmkorAssemblyTestShanghaiCo.Ltd.TermLoanMember2019-04-012019-04-300001047127amkr:SubsidiaryTermLoansMembercountry:CNamkr:AmkorAssemblyTestShanghaiCo.Ltd.TermLoanMember2019-09-300001047127us-gaap:RevolvingCreditFacilityMemberamkr:SeniorSecuredRevolvingCreditFacilitydueJuly2023Memberus-gaap:LineOfCreditMember2018-07-310001047127us-gaap:RevolvingCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMemberamkr:SeniorSecuredRevolvingCreditFacilitydueJuly2023Memberus-gaap:LineOfCreditMembersrt:MinimumMember2018-07-012018-07-310001047127us-gaap:RevolvingCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMemberamkr:SeniorSecuredRevolvingCreditFacilitydueJuly2023Memberus-gaap:LineOfCreditMembersrt:MaximumMember2018-07-012018-07-310001047127us-gaap:RevolvingCreditFacilityMemberamkr:SeniorSecuredRevolvingCreditFacilitydueJuly2023Memberus-gaap:LineOfCreditMember2019-09-012019-09-300001047127us-gaap:RevolvingCreditFacilityMemberamkr:SeniorSecuredRevolvingCreditFacilitydueJuly2023Memberus-gaap:SubsequentEventMemberus-gaap:LineOfCreditMember2019-10-012019-10-310001047127us-gaap:RevolvingCreditFacilityMembercountry:TWamkr:RevolvingcreditfacilitydueNovember2020Memberus-gaap:LineOfCreditMember2015-11-300001047127us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001047127us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001047127us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Memberus-gaap:SeniorNotesMember2019-09-300001047127us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SeniorNotesMember2019-09-300001047127us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Memberus-gaap:SeniorNotesMember2018-12-310001047127us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SeniorNotesMember2018-12-310001047127us-gaap:EstimateOfFairValueFairValueDisclosureMemberamkr:SubsidiaryTermLoansandRevolvingCreditFacilitiesMemberus-gaap:FairValueInputsLevel2Member2019-09-300001047127us-gaap:CarryingReportedAmountFairValueDisclosureMemberamkr:SubsidiaryTermLoansandRevolvingCreditFacilitiesMember2019-09-300001047127us-gaap:EstimateOfFairValueFairValueDisclosureMemberamkr:SubsidiaryTermLoansandRevolvingCreditFacilitiesMemberus-gaap:FairValueInputsLevel2Member2018-12-310001047127us-gaap:CarryingReportedAmountFairValueDisclosureMemberamkr:SubsidiaryTermLoansandRevolvingCreditFacilitiesMember2018-12-310001047127us-gaap:EstimateOfFairValueFairValueDisclosureMember2019-09-300001047127us-gaap:CarryingReportedAmountFairValueDisclosureMember2019-09-300001047127us-gaap:EstimateOfFairValueFairValueDisclosureMember2018-12-310001047127us-gaap:CarryingReportedAmountFairValueDisclosureMember2018-12-31



UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549
Form 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period EndedSeptember 30, 2019
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from          to          
Commission File Number 000-29472
AMKOR TECHNOLOGY, INC.
(Exact name of registrant as specified in its charter)
Delaware23-1722724
(State of incorporation)(I.R.S. Employer
Identification Number)
2045 East Innovation Circle
Tempe, AZ 85284
(Address of principal executive offices and zip code)
(480821-5000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Common Stock, $0.001 par valueAMKRThe NASDAQ Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934, during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to filing requirements for the past 90 days.  Yes   No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes   No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer

Accelerated filer

Non-accelerated filer 

Smaller reporting company Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes   No
The number of outstanding shares of the registrant’s Common Stock as of October 25, 2019 was 239,783,075.






QUARTERLY REPORT ON FORM 10-Q
For the Quarter Ended September 30, 2019

TABLE OF CONTENTS
Page

This report contains forward-looking statements within the meaning of the federal securities laws, including but not limited to statements regarding (1) the amount, timing and focus of our expected capital investments in 2019 including expenditures in support of advanced packaging and test equipment, (2) our ability to fund our operating activities and financial requirements for the next twelve months, (3) the effect of changes in revenue levels and capacity utilization on our gross margin, (4) the focus of our research and development activities, (5) the anticipated impact of the Tax Cuts and Jobs Act (the “Tax Act”) on our taxes, (6) the grant and expiration of tax holidays in jurisdictions in which we operate and expectations regarding our effective tax rate and the availability of tax incentives, (7) the creation or release of valuation allowances related to taxes in the future, (8) our repurchase or repayment of outstanding debt, (9) payment of dividends, (10) compliance with our debt covenants, (11) expected contributions to foreign pension plans, (12) liability for unrecognized tax benefits and the potential impact of our unrecognized tax benefits on our effective tax rate, (13) the effect of foreign currency exchange rate exposure on our financial results, (14) the volatility of the trading price of our common stock, (15) changes to our internal controls related to integration of acquired operations and implementation of an enterprise resource planning system, (16) our efforts to enlarge our customer base in certain geographic areas and markets, (17) demand for advanced packages in mobile and automotive devices and our technology leadership and potential growth in this market, and (18) other statements that are not historical facts. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” “intend” or the negative of these terms or other comparable terminology. Because such statements include risks and uncertainties, actual results may differ materially from those anticipated in such forward-looking statements as a result of various factors, including those set forth in the following report as well as in Part II, Item 1A of this Quarterly Report on Form 10-Q.


-1-

Table of Contents

PART I. FINANCIAL INFORMATION
Item 1.  Financial Statements

AMKOR TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
For the Three Months Ended September 30,For the Nine Months Ended September 30,
2019201820192018
(In thousands, except per share data)
Net sales$1,083,917  $1,144,192  $2,874,186  $3,235,195  
Cost of sales901,677  943,485  2,447,731  2,707,000  
Gross profit182,240  200,707  426,455  528,195  
Selling, general and administrative70,458  70,463  206,803  225,886  
Research and development32,927  37,541  104,867  119,546  
Total operating expenses103,385  108,004  311,670  345,432  
Operating income78,855  92,703  114,785  182,763  
Interest expense16,988  19,770  54,914  60,908  
Other (income) expense, net(1,760) 1,315  641  (6,254) 
Total other expense, net15,228  21,085  55,555  54,654  
Income before taxes63,627  71,618  59,230  128,109  
Income tax expense9,141  14,326  36,418  27,438  
Net income54,486  57,292  22,812  100,671  
Net income attributable to non-controlling interests(416) (630) (1,071) (1,874) 
Net income attributable to Amkor$54,070  $56,662  $21,741  $98,797  
Net income attributable to Amkor per common share:  
Basic$0.23  $0.24  $0.09  $0.41  
Diluted$0.23  $0.24  $0.09  $0.41  
Shares used in computing per common share amounts: 
Basic239,586  239,370  239,503  239,312  
Diluted239,937  239,766  239,858  239,783  

The accompanying notes are an integral part of these statements.


-2-

Table of Contents

AMKOR TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)

For the Three Months Ended September 30,For the Nine Months Ended September 30,
2019201820192018
(In thousands)
Net income$54,486  $57,292  $22,812  $100,671  
Other comprehensive income (loss), net of tax:
Adjustments to unrealized components of defined benefit pension plans(125) (45) (314) (126) 
Foreign currency translation51  (6,611) 3,745  (2,664) 
Total other comprehensive income (loss)(74) (6,656) 3,431  (2,790) 
Comprehensive income54,412  50,636  26,243  97,881  
Comprehensive income attributable to non-controlling interests(416) (630) (1,071) (1,874) 
Comprehensive income attributable to Amkor$53,996  $50,006  $25,172  $96,007  

The accompanying notes are an integral part of these statements.


-3-

Table of Contents

AMKOR TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)

September 30, 2019December 31, 2018
(In thousands, except per share data)
ASSETS
Current assets:  
Cash and cash equivalents$598,753  $681,569  
Restricted cash2,590  2,589  
Accounts receivable, net of allowances803,104  724,456  
Inventories216,663  230,589  
Other current assets41,891  32,005  
Total current assets1,663,001  1,671,208  
Property, plant and equipment, net2,466,067  2,650,448  
Operating lease right of use asset 141,467    
Goodwill26,104  25,720  
Restricted cash2,874  3,893  
Other assets106,417  144,178  
Total assets$4,405,930  $4,495,447  
LIABILITIES AND EQUITY
Current liabilities:  
Short-term borrowings and current portion of long-term debt$102,952  $114,579  
Trade accounts payable477,900  530,398  
Capital expenditures payable157,527  255,237  
Accrued expenses253,876  258,209  
Total current liabilities992,255  1,158,423  
Long-term debt1,195,005  1,217,732  
Pension and severance obligations178,530  184,321  
Long-term operating lease liability85,094    
Other non-current liabilities67,426  79,071  
Total liabilities2,518,310  2,639,547  
Commitments and contingencies (Note 15)
Stockholders’ equity:  
Preferred stock, $0.001 par value, 10,000 shares authorized, designated Series A, none issued
    
Common stock, $0.001 par value, 500,000 shares authorized; 285,607 and 285,352 shares issued; and 239,624 and 239,385 shares outstanding in 2019 and 2018, respectively
286  285  
Additional paid-in capital1,915,481  1,909,425  
Retained earnings134,930  113,189  
Accumulated other comprehensive income (loss)27,243  23,812  
Treasury stock, at cost, 45,983 and 45,967 shares, in 2019 and 2018, respectively
(216,301) (216,171) 
Total Amkor stockholders’ equity1,861,639  1,830,540  
Non-controlling interests in subsidiaries25,981  25,360  
Total equity1,887,620  1,855,900  
Total liabilities and equity$4,405,930  $4,495,447  
The accompanying notes are an integral part of these statements.


-4-

Table of Contents

AMKOR TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
Additional Paid-
In Capital
Retained EarningsAccumulated
Other
Comprehensive
Income (Loss)
Total Amkor
Stockholders’
Equity
Noncontrolling
Interest in
Subsidiaries
Total
Equity
Common StockTreasury Stock
SharesPar ValueSharesCost
(In thousands)
Balance at June 30, 2019285,510  $285  $1,913,103  $80,860  $27,317  (45,978) $(216,254) $1,805,311  $25,865  $1,831,176  
Net income—  —  —  54,070  —  —  —  54,070  416  54,486  
Other comprehensive income (loss)—  —  —  —  (74) —  —  (74) —  (74) 
Treasury stock acquired through surrender of shares for tax withholding—  —  —  —  —  (5) (47) (47) —  (47) 
Issuance of stock through share-based compensation plans97  1  434  —  —  —  —  435  —  435  
Share-based compensation—  —  1,944  —  —  —  —  1,944  —  1,944  
Subsidiary dividends to noncontrolling interests—  —  —  —  —  —  —  —  (300) (300) 
Balance at September 30, 2019285,607  $286  $1,915,481  $134,930  $27,243  (45,983) $(216,301) $1,861,639  $25,981  $1,887,620  
Balance at December 31, 2018285,352  $285  $1,909,425  $113,189  $23,812  (45,967) $(216,171) $1,830,540  $25,360  $1,855,900  
Net income—  —  —  21,741  —  —  —  21,741  1,071  22,812  
Other comprehensive income (loss)—  —  —  —  3,431  —  —  3,431  —  3,431  
Treasury stock acquired through surrender of shares for tax withholding—  —  —  —  —  (16) (130) (130) —  (130) 
Issuance of stock through share-based compensation plans255  1  870  —  —  —  —  871  —  871  
Share-based compensation—  —  5,186  —  —  —  —  5,186  —  5,186  
Subsidiary dividends to noncontrolling interests—  —  —  —  —  —  —  —  (450) (450) 
Balance at September 30, 2019285,607  $286  $1,915,481  $134,930  $27,243  (45,983) $(216,301) $1,861,639  $25,981  $1,887,620  

The accompanying notes are an integral part of these statements.

-5-


Table of Contents

AMKOR TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
Additional Paid-
In Capital
Retained Earnings (Accumulated
Deficit)
Accumulated
Other
Comprehensive
Income (Loss)
Total Amkor
Stockholders’
Equity
Noncontrolling
Interest in
Subsidiaries
Total
Equity
Common StockTreasury Stock
SharesPar ValueSharesCost
(In thousands)
Balance at June 30, 2018285,322  $285  $1,906,936  $28,232  $26,385  (45,956) $(216,087) $1,745,751  $24,407  $1,770,158  
Net income—  —  —  56,662  —  —  —  56,662  630  57,292  
Other comprehensive income (loss)—  —  —  —  (6,656) —  —  (6,656) —  (6,656) 
Treasury stock acquired through surrender of shares for tax withholding—  —  —  —  —  (5) (48) (48) —  (48) 
Issuance of stock through share-based compensation plans13  —    —  —  —  —  —  —  —  
Share-based compensation—  —  1,235  —  —  —  —  1,235  —  1,235  
Subsidiary dividends to noncontrolling interests—  —  —  —  —  —  —  —  (140) (140) 
Balance at September 30, 2018285,335  $285  $1,908,171  $84,894  $19,729  (45,961) $(216,135) $1,796,944  $24,897  $1,821,841  
Balance at December 31, 2017285,129  $285  $1,903,357  $(13,903) $22,519  (45,945) $(215,982) $1,696,276  $23,433  $1,719,709  
Net income—  —  —  98,797  —  —  —  98,797  1,874  100,671  
Other comprehensive income (loss)—  —  —  —  (2,790) —  —  (2,790) —  (2,790) 
Treasury stock acquired through surrender of shares for tax withholding—  —  —  —  —  (16) (153) (153) —  (153) 
Issuance of stock through share-based compensation plans206  —  1,023  —  —  —  —  1,023  —  1,023  
Share-based compensation—  —  3,791  —  —  —  —  3,791  —  3,791  
Subsidiary dividends to noncontrolling interests—  —  —  —  —  —  —  —  (410) (410) 
Balance at September 30, 2018285,335  $285  $1,908,171  $84,894  $19,729  (45,961) $(216,135) $1,796,944  $24,897  $1,821,841  

The accompanying notes are an integral part of these statements.



-6-


Table of Contents

AMKOR TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

For the Nine Months Ended September 30,
 20192018
 (In thousands)
Cash flows from operating activities:  
Net income$22,812  $100,671  
Depreciation and amortization398,013  429,181  
Other operating activities and non-cash items51,533  (2,006) 
Changes in assets and liabilities(189,026) (100,628) 
Net cash provided by operating activities283,332  427,218  
Cash flows from investing activities:  
Payments for property, plant and equipment(328,497) (478,036) 
Proceeds from sale of property, plant and equipment8,495  1,606  
Proceeds from insurance recovery for property, plant and equipment1,538    
Other investing activities(353) 3,160  
Net cash used in investing activities(318,817) (473,270) 
Cash flows from financing activities:  
Proceeds from revolving credit facilities172,700    
Payments of revolving credit facilities(92,700) (75,000) 
Proceeds from short-term debt51,434  23,341  
Payments of short-term debt(42,067) (35,125) 
Proceeds from issuance of long-term debt714,375  372,226  
Payments of long-term debt(847,155) (279,697) 
Payments of finance lease obligations(4,358) (2,669) 
Other financing activities(1,963) (2,482) 
Net cash provided by (used in) financing activities(49,734) 594  
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash1,385  (3,273) 
Net decrease in cash, cash equivalents and restricted cash(83,834) (48,731) 
Cash, cash equivalents and restricted cash, beginning of period688,051  602,851  
Cash, cash equivalents and restricted cash, end of period$604,217  $554,120  
Non-cash investing and financing activities:
Property, plant and equipment included in capital expenditures payable$157,959  $254,244  
Right of use assets acquired through finance lease liabilities7,628  13,272  
Right of use assets acquired through operating lease liabilities42,217    

The accompanying notes are an integral part of these statements.


-7-

Table of Contents

AMKOR TECHNOLOGY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

1. Interim Financial Statements

Basis of Presentation. The Consolidated Financial Statements and related disclosures as of September 30, 2019, and for the three and nine months ended September 30, 2019 and 2018, are unaudited, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). The December 31, 2018 Consolidated Balance Sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S.”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. In our opinion, these financial statements include all adjustments (consisting only of normal recurring adjustments) necessary for the fair statement of the results for the interim periods. These financial statements should be read in conjunction with the financial statements included in our Annual Report for the year ended December 31, 2018, filed on Form 10-K with the SEC on February 22, 2019. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the full year. Unless the context otherwise requires, all references to “Amkor,” “we,” “us,” “our” or the “company” are to Amkor Technology, Inc. and our subsidiaries.

Use of Estimates. The Consolidated Financial Statements have been prepared in conformity with U.S. GAAP, using management’s best estimates and judgments where appropriate. These estimates and judgments affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ materially from these estimates and judgments.

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

Unbilled Receivables. Total unbilled receivables as of September 30, 2019 and December 31, 2018 were $109.7 million and $89.3 million, respectively.

2. New Accounting Standards

Recently Adopted Standards

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which was subsequently amended and clarified. Topic 842 requires a dual approach for lease accounting under which a lessee would account for leases as finance leases or operating leases. The standard also requires the lessee to recognize a right-of-use asset and a corresponding lease liability for both finance leases and operating leases. For finance leases, the lessee recognizes interest expense and amortization of the right-of-use asset, and for operating leases, the lessee recognizes a straight-line lease expense. The standard permits the use of two alternative transition approaches, either with application in all comparative periods presented or with application beginning with the effective date without restating comparative period financial statements.

Effective January 1, 2019, we adopted the requirements of Topic 842 using the modified transition approach without restating the comparative period financial statements. The new standard resulted in increases in our operating lease right of use asset, accrued expenses and long-term operating lease liability account balances to record our operating leases on our Consolidated Balance Sheet. The new standard also resulted in additional disclosures for our operating and finance leases (Note 10). In accordance with Topic 842, we applied practical expedients permitted under the transition guidance, which allowed us to not:
Reassess whether any existing contracts are or contain a lease,
Reassess the lease classification for any existing contracts,
Reassess initial direct costs for any existing leases, and
Separate non-lease components from lease components and instead to account for them as a single lease component for all asset classes.


-8-

Table of Contents

AMKOR TECHNOLOGY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Unaudited)


3. Net Sales by Product Group and End Market

Net sales by product group consist of the following:
For the Three Months Ended September 30,For the Nine Months Ended September 30,
2019201820192018
(In thousands)
Advanced products (1)$588,975  $582,165  $1,444,059  $1,554,158  
Mainstream products (2)494,942  562,027  1,430,127  1,681,037  
Total net sales$1,083,917  $1,144,192  $2,874,186  $3,235,195  

(1)Advanced products include flip chip and wafer-level processing and related test services.
(2)Mainstream products include wirebond packaging and related test services.

Net sales by end market consist of the following:
For the Three Months Ended September 30,For the Nine Months Ended September 30,
2019201820192018
Communications (handheld devices, smartphones, tablets)41 %47 %39 %44 %
Automotive, industrial and other (driver assist, infotainment, performance, safety)
26 %25 %28 %26 %
Computing (datacenter, infrastructure, PC/laptop, storage)
15 %17 %17 %18 %
Consumer (connected home, set-top boxes, televisions, visual imaging, wearables)
18 %11 %16 %12 %
Total net sales100 %100 %