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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, 2020
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 23, 2020 was 242,446,149.




QUARTERLY REPORT ON FORM 10-Q
For the Quarter Ended September 30, 2020

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 2020 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 impact of the novel coronavirus disease, or Covid-19, pandemic on our operations and financial results, (5) the focus of our research and development activities, (6) the anticipated impact of the Tax Cuts and Jobs Act (the “Tax Act”) and tax law changes in the jurisdictions in which we operate, (7) 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, (8) the creation or release of valuation allowances related to taxes in the future, (9) our repurchase or repayment of outstanding debt, (10) payment of dividends, (11) compliance with our covenants, (12) expected contributions to foreign pension plans and potential future conversion of our unfunded severance plan in Korea into a defined contribution plan, (13) liability for unrecognized tax benefits and the potential impact of our unrecognized tax benefits on our effective tax rate, (14) expected timing of and charges related to restructuring activities, (15) the effect of foreign currency exchange rate exposure on our financial results, (16) the volatility of the trading price of our common stock, (17) changes to our internal controls related to integration of acquired operations and implementation of an enterprise resource planning system, (18) our efforts to enlarge our customer base in certain geographic areas and markets, (19) demand for advanced packages in mobile and automotive devices and our technology leadership and potential growth in this market, (20) projects to install and integrate new information technology systems or upgrade our existing systems and (21) 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.

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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,
2020201920202019
(In thousands, except per share data)
Net sales$1,354,023 $1,083,917 $3,679,548 $2,874,186 
Cost of sales1,112,938 901,677 3,057,235 2,447,731 
Gross profit241,085 182,240 622,313 426,455 
Selling, general and administrative77,781 70,458 224,623 206,803 
Research and development35,835 32,927 99,624 104,867 
Total operating expenses113,616 103,385 324,247 311,670 
Operating income127,469 78,855 298,066 114,785 
Interest expense16,404 16,988 49,461 54,914 
Other (income) expense, net2,415 (1,760)1,567 641 
Total other expense, net18,819 15,228 51,028 55,555 
Income before taxes108,650 63,627 247,038 59,230 
Income tax expense15,753 9,141 33,504 36,418 
Net income92,897 54,486 213,534 22,812 
Net income attributable to non-controlling interests(746)(416)(2,070)(1,071)
Net income attributable to Amkor$92,151 $54,070 $211,464 $21,741 
Net income attributable to Amkor per common share:  
Basic$0.38 $0.23 $0.88 $0.09 
Diluted$0.38 $0.23 $0.87 $0.09 
Shares used in computing per common share amounts: 
Basic241,675 239,586 241,232 239,503 
Diluted242,592 239,937 241,937 239,858 
The accompanying notes are an integral part of these statements.

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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,
2020201920202019
(In thousands)
Net income$92,897 $54,486 $213,534 $22,812 
Other comprehensive income (loss), net of tax:
Adjustments to net unrealized gains (losses) on available-for-sale debt investments
(165) 193  
Adjustments to unrealized components of defined benefit pension plans11 (125)34 (314)
Foreign currency translation4,191 51 3,967 3,745 
Total other comprehensive income (loss)4,037 (74)4,194 3,431 
Comprehensive income96,934 54,412 217,728 26,243 
Comprehensive income attributable to non-controlling interests(746)(416)(2,070)(1,071)
Comprehensive income attributable to Amkor$96,188 $53,996 $215,658 $25,172 
The accompanying notes are an integral part of these statements.

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Table of Contents

AMKOR TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)

September 30, 2020December 31, 2019
(In thousands, except per share data)
ASSETS
Current assets:  
Cash and cash equivalents$566,745 $894,948 
Restricted cash945 610 
Short-term investments (amortized cost of $355,939 in 2020)
356,150 6,348 
Accounts receivable, net of allowances990,637 850,753 
Inventories299,830 220,602 
Other current assets54,264 28,272 
Total current assets2,268,571 2,001,533 
Property, plant and equipment, net2,560,195 2,404,850 
Operating lease right of use assets 149,727 148,549 
Goodwill26,747 25,976 
Restricted cash3,087 2,974 
Other assets128,293 111,733 
Total assets$5,136,620 $4,695,615 
LIABILITIES AND EQUITY
Current liabilities:  
Short-term borrowings and current portion of long-term debt$136,526 $144,479 
Trade accounts payable611,965 571,054 
Capital expenditures payable328,171 77,044 
Accrued expenses298,708 267,226 
Total current liabilities1,375,370 1,059,803 
Long-term debt1,182,573 1,305,755 
Pension and severance obligations175,941 176,971 
Long-term operating lease liabilities88,257 91,107 
Other non-current liabilities91,742 71,740 
Total liabilities2,913,883 2,705,376 
Commitments and contingencies (Note 14)
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; 288,043 and 286,877 shares issued; and 241,955 and 240,805 shares outstanding in 2020 and 2019, respectively
288 287 
Additional paid-in capital1,943,140 1,927,739 
Retained earnings445,541 234,077 
Accumulated other comprehensive income (loss)23,309 19,115 
Treasury stock, at cost, 46,088 and 46,072 shares, in 2020 and 2019, respectively
(217,660)(217,479)
Total Amkor stockholders’ equity2,194,618 1,963,739 
Non-controlling interests in subsidiaries28,119 26,500 
Total equity2,222,737 1,990,239 
Total liabilities and equity$5,136,620 $4,695,615 
The accompanying notes are an integral part of these statements.

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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, 2020287,319 $287 $1,934,047 $353,390 $19,272 (46,083)$(217,592)$2,089,404 $27,524 $2,116,928 
Net income— — — 92,151 — — — 92,151 746 92,897 
Other comprehensive income (loss)— — — — 4,037 — — 4,037 — 4,037 
Treasury stock acquired through surrender of shares for tax withholding— — — — — (5)(68)(68)— (68)
Issuance of stock through share-based compensation plans724 1 6,953 — — — — 6,954 — 6,954 
Share-based compensation— — 2,140 — — — — 2,140 — 2,140 
Subsidiary dividends to noncontrolling interests— — — — — — — — (151)(151)
Balance at September 30, 2020288,043 $288 $1,943,140 $445,541 $23,309 (46,088)$(217,660)$2,194,618 $28,119 $2,222,737 
Balance at December 31, 2019286,877 $287 $1,927,739 $234,077 $19,115 (46,072)$(217,479)$1,963,739 $26,500 $1,990,239 
Net income— — — 211,464 — — — 211,464 2,070 213,534 
Other comprehensive income (loss)— — — — 4,194 — — 4,194 — 4,194 
Treasury stock acquired through surrender of shares for tax withholding— — — — — (16)(181)(181)— (181)
Issuance of stock through share-based compensation plans1,166 1 9,694 — — — — 9,695 — 9,695 
Share-based compensation— — 5,707 — — — — 5,707 — 5,707 
Subsidiary dividends to noncontrolling interests— — — — — — — — (451)(451)
Balance at September 30, 2020288,043 $288 $1,943,140 $445,541 $23,309 (46,088)$(217,660)$2,194,618 $28,119 $2,222,737 
The accompanying notes are an integral part of these statements.


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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.


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

For the Nine Months Ended September 30,
 20202019
 (In thousands)
Cash flows from operating activities:  
Net income$213,534 $22,812 
Depreciation and amortization377,722 398,013 
Other operating activities and non-cash items20,368 51,533 
Changes in assets and liabilities(177,576)(189,026)
Net cash provided by operating activities434,048 283,332 
Cash flows from investing activities:  
Payments for property, plant and equipment(275,531)(328,497)
Proceeds from sale of property, plant and equipment2,710 8,495 
Proceeds from insurance recovery for property, plant and equipment 1,538 
Payments for short-term investments(475,696)(5,935)
Proceeds from sale of short-term investments37,633  
Proceeds from maturities of short-term investments86,216 6,469 
Other investing activities13,331 (887)
Net cash used in investing activities(611,337)(318,817)
Cash flows from financing activities:  
Proceeds from revolving credit facilities312,000 172,700 
Payments of revolving credit facilities(332,000)(92,700)
Proceeds from short-term debt86,769 51,434 
Payments of short-term debt(76,004)(42,067)
Proceeds from issuance of long-term debt225,985 714,375 
Payments of long-term debt(370,426)(847,155)
Payments of finance lease obligations(7,193)(4,358)
Other financing activities7,707 (1,963)
Net cash used in financing activities(153,162)(49,734)
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash2,696 1,385 
Net decrease in cash, cash equivalents and restricted cash(327,755)(83,834)
Cash, cash equivalents and restricted cash, beginning of period898,532 688,051 
Cash, cash equivalents and restricted cash, end of period$570,777 $604,217 
Non-cash investing and financing activities:
Property, plant and equipment included in capital expenditures payable$328,354 $157,959 
The accompanying notes are an integral part of these statements.

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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, 2020, and for the three and nine months ended September 30, 2020 and 2019, are unaudited, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). The December 31, 2019 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, 2019, filed on Form 10-K with the SEC on February 19, 2020. The results of operations for the three and nine months ended September 30, 2020 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” or “our” are to Amkor Technology, Inc. and our subsidiaries. Certain prior year amounts have been reclassified to conform to current year presentation.
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, including the impact of Covid-19 and any worsening of the global business and economic environment.
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, 2020 and December 31, 2019 were $150.3 million and $125.4 million, respectively.
Contract Liability. The company often receives cash payments from customers in advance of the company’s performance. In such cases, we record deferred revenue until the performance obligation is satisfied, which represents a contract liability and is included in accrued expenses and other non-current liabilities in the consolidated balance sheets. These contract liabilities are classified as either current or long-term based on the timing of when the company expects to recognize revenue. Contract liabilities were $50.1 million and $17.5 million as of September 30, 2020 and December 31, 2019, respectively. As of September 30, 2020 and December 31, 2019, the short-term portion of the liability was $27.0 million and $16.2 million, respectively. Revenue recognized during the nine months ended September 30, 2020 and 2019 that was included in the contract liability balance at the beginning of the period was $12.5 million and $14.5 million, respectively.

2.    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,
2020201920202019
(In thousands)(In thousands)
Advanced products (1)$899,293 $588,975 $2,333,810 $1,444,059 
Mainstream products (2)454,730 494,942 1,345,738 1,430,127 
Total net sales$1,354,023 $1,083,917 $3,679,548 $2,874,186 
(1) Advanced products include flip chip and wafer-level processing and related test services.
(2) Mainstream products include wirebond packaging and related test services.

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


Net sales by end market consist of the following:
For the Three Months Ended September 30,For the Nine Months Ended September 30,
2020201920202019
Communications (handheld devices, smartphones, tablets)43 %41 %40 %39 %
Consumer (connected home, set-top boxes, televisions, visual imaging, wearables)
25 %18 %25 %16 %
Automotive, industrial and other (driver assist, infotainment, performance, safety)
17 %26 %20 %28 %
Computing (data center, infrastructure, PC/laptop, storage)
15 %15 %15 %17 %
Total net sales100 %100 %100 %100 %

3.    Other Income and Expense
Other income and expense consist of the following:
For the Three Months Ended September 30,For the Nine Months Ended September 30,
 2020201920202019
 (In thousands)
Interest income$(1,016)$(1,269)$(4,975)$(4,931)
Foreign currency (gain) loss, net3,069 (174)6,301 (1,581)
Loss on debt retirement491 179 919 8,535 
Other(129)(496)(678)(1,382)
Other (income) expense, net$2,415 $(1,760)$1,567 $641 

4.    Income Taxes
Income tax expense of $33.5 million for the nine months ended September 30, 2020 reflects income taxes, foreign withholding taxes and minimum taxes.
We monitor on an ongoing basis our ability to utilize our deferred tax assets and whether there is a need for a related valuation allowance. 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 results of recent operations.
We maintain a valuation allowance on certain U.S. and foreign deferred tax assets. Such valuation allowances are released as the related tax benefits are realized or when sufficient evidence exists to conclude that it is more likely than not that the deferred tax assets will be realized. We have recorded a valuation allowance against our interest expense carryforward as a result of the limitation of deductibility of interest expense contained in the Tax Act. Realization of the carryforward is dependent on generating sufficient taxable income to overcome the interest limitation provisions. Although utilization of this carryforward is not assured, in light of our current earnings and recent estimates of future taxable income, management believes there is a reasonable possibility that sufficient positive evidence may become available within the next 12 months to allow us to reach a conclusion that the valuation allowance will no longer be needed. Release of the valuation allowance would result in a decrease to income tax expense for the period the release is recorded.
Unrecognized tax benefits represent reserves for potential tax deficiencies or reductions in tax benefits that could result from federal, state or foreign tax audits. Gross unrecognized tax benefits increased from $26.2 million at December 31, 2019 to $30.0 million as of September 30, 2020, primarily due to increases related to income attribution, offset by

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


decreases from the lapse of statutes of limitations. All of our unrecognized tax benefits would reduce our effective tax rate if recognized. Our unrecognized tax benefits are subject to change for effective settlement of examinations, changes in the recognition threshold of tax positions, the expiration of statutes of limitations and other factors.
We have tax returns that are open to examination in various jurisdictions for tax years 2012-2019. The open years contain matters that could be subject to differing interpretations of applicable tax laws and regulations related to the amount and/or timing of income, deductions and tax credits. There can be no assurance that the outcome of the examinations will be favorable. In certain circumstances where we elect to appeal the results of an examination, we may be required to make tax assessment payments to proceed with the administrative appeal process.

5.    Earnings Per Share
Basic earnings per share (“EPS”) is computed by dividing net income attributable to Amkor common stockholders by the weighted-average number of common shares outstanding during the period. The weighted-average number of common shares outstanding is reduced for treasury stock.
Diluted EPS is computed based on the weighted-average number of common shares outstanding plus the effect of dilutive potential common shares outstanding during the period. Dilutive potential common shares include outstanding stock options and unvested restricted shares.
The following table summarizes the computation of basic and diluted EPS:
For the Three Months Ended September 30,For the Nine Months Ended September 30,
 2020201920202019
 (In thousands,
except per share data)
Net income attributable to Amkor common stockholders$92,151 $54,070 $211,464 $21,741 
Weighted-average number of common shares outstanding - basic241,675 239,586 241,232 239,503 
Effect of dilutive securities:    
Stock options and restricted share awards917 351 705 355 
Weighted-average number of common shares outstanding - diluted242,592 239,937 241,937 239,858 
Net income attributable to Amkor per common share:    
Basic$0.38 $0.23 $0.88 $0.09 
Diluted0.38 0.23 0.87 0.09 
The following table summarizes the potential shares of common stock that were excluded from diluted EPS because the effect of including these potential shares was anti-dilutive:
For the Three Months Ended September 30,For the Nine Months Ended September 30,
 2020201920202019
 (In thousands)
Stock options and restricted share awards858 6,347 2,943 6,487 


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


6.    Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive income (loss), net of tax, consist of the following:
Unrealized Gains (Losses) on Available-for-Sale Debt Investments (1)Defined Benefit Pension (2)Foreign Currency TranslationTotal
(In thousands)
Accumulated other comprehensive income (loss) at December 31, 2019$ $(4,820)$23,935 $19,115 
Other comprehensive income (loss) before reclassifications168  3,967 4,135 
Amounts reclassified from accumulated other comprehensive income (loss) 25 34  59 
Other comprehensive income (loss)193 34 3,967 4,194 
Accumulated other comprehensive income (loss) at September 30, 2020$193 $(4,786)$27,902 $23,309 
Defined Benefit Pension (2)Foreign Currency TranslationTotal
(In thousands)
Accumulated other comprehensive income (loss) at December 31, 2018$2,659 $21,153 $23,812 
Other comprehensive income (loss) before reclassifications 3,745 $3,745 
Amounts reclassified from accumulated other comprehensive income (loss)(314) $(314)
Other comprehensive income (loss)(314)3,745 3,431 
Accumulated other comprehensive income (loss) at September 30, 2019$2,345 $24,898 $27,243 
(1) Amounts reclassified out of accumulated other comprehensive income (loss) are included as other (income) expense, net (Note 3).
(2) Amounts reclassified out of accumulated other comprehensive income (loss) are included as a component of net periodic pension cost (Note 12) or other (income) expense, net (Note 3).

7.    Investments
We classify our short-term investments in fixed income securities as available-for-sale debt investments, except for one foreign government security classified as held-to-maturity and recorded at amortized cost. All of our available-for-sale debt investments as of September 30, 2020 are available to fund current operations and are recorded at fair value (Note 13). Unrealized gains and losses on our available-for-sale debt investments are included as a separate component of accumulated other comprehensive income (loss), net of tax. Realized gains and losses on our available-for-sale debt investments and declines in value judged to be an impairment are included in other (income) expense, net. The cost of short-term investments matured or sold is based on the average cost method.
In determining if and when a decline in value below the adjusted cost of our available-for-sale debt investments is an impairment, we evaluate on an ongoing basis the market conditions, trends of earnings, financial condition, credit ratings, any underlying collateral and other key measures for our short-term investments. An impairment is considered if (i) we have the intent to sell the security, (ii) it is more likely than not that we will be required to sell the security before recovery of the entire amortized cost basis or (iii) we do not expect to recover the entire amortized cost basis of the

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


security. If impairment is considered on condition (i) or (ii) above, the entire difference between the amortized cost and the fair value of the debt security is recognized in earnings. If impairment is considered based on condition (iii), the amount representing credit losses will be recognized in earnings and as an allowance for credit losses. The amount relating to all other factors will be recognized in other comprehensive income.
The following table summarizes our cash equivalents and available-for-sale debt investments:
September 30, 2020
Fair Value Level
Amortized CostGross Unrealized GainsGross Unrealized Losses (1)Total Fair ValueLevel 1Level 2
 (In thousands)
Cash equivalents
Certificate of deposits3,303   3,303 3,303  
Commercial paper8,000   8,000  8,000 
Corporate bonds13,856 27 (2)13,881  13,881 
Money market funds161,837   161,837 161,837  
Mortgage backed securities972