SEC Filing | Amkor Technology

View:

amkr-20220331

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 Ended	March 31, 2022
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)

Delaware

23-1722724

(State of incorporation)

(I.R.S. Employer
Identification Number)

2045 East Innovation Circle

Tempe, AZ 85284

(Address of principal executive offices and zip code)

(480) 821-5000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Stock, $0.001 par value	AMKR	The 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 April 29, 2022 was 244,779,154.

QUARTERLY REPORT ON FORM 10-Q

For the Quarter Ended March 31, 2022

TABLE OF CONTENTS


		Page
PART I. Financial Information
Item 1.	Financial Statements (unaudited)	2
	Consolidated Statements of Income - Three Months Ended March 31, 2022 and 2021	2
	Consolidated Statements of Comprehensive Income - Three Months Ended March 31, 2022 and 2021	3
	Consolidated Balance Sheets - March 31, 2022 and December 31, 2021	4
	Consolidated Statements of Stockholders’ Equity - Three Months Ended March 31, 2022 and 2021	5
	Condensed Consolidated Statements of Cash Flows - Three Months Ended March 31, 2022 and 2021	6
	Notes to Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	25
Item 4.	Controls and Procedures	27

PART II. Other Information
Item 1.	Legal Proceedings	28
Item 1A.	Risk Factors	28
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	46
Item 3.	Defaults Upon Senior Securities	46
Item 4.	Mine Safety Disclosures	46
Item 5.	Other Information	46
Item 6.	Exhibits	47
Signatures		49

Forward-Looking Statements

This Quarterly Report on Form 10-Q (this “Form 10-Q”) 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 2022, including expenditures in support of our announced expansion into Vietnam and our 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 Covid-19 pandemic on our operations, financial results and supply chain, (5) the focus of our research and development activities, (6) the anticipated impact of 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 restrictive covenants in the indentures and agreements governing our current and future indebtedness, (12) expected contributions to foreign pension plans and potential future conversion of our unfunded severance plan in Korea to 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) the effect of foreign currency exchange rate exposure on our financial results, (15) the volatility of the trading price of our common stock, (16) changes to our internal controls related to integration of acquired operations and implementation of an enterprise resource planning system, (17) our efforts to enlarge our customer base in certain geographic areas and markets, (18) demand for advanced packages in mobile and automotive devices and our technology leadership and potential growth in this market, (19) projects to install or integrate new information technology systems or upgrade our existing systems, (20) our expected revenue recognition, (21) the anticipated schedule for our new manufacturing facility in Vietnam and (22) other statements that are not historical facts. You are cautioned not to place undue reliance on forward-looking statements, which are often characterized by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” or “intend,” by

-1-

QUARTERLY REPORT ON FORM 10-Q

For the Quarter Ended March 31, 2022

TABLE OF CONTENTS

the negative of these terms or other comparable terminology or by discussions of strategy, plans or intentions. All forward-looking statements in this Form 10-Q are made based on our current expectations, forecasts, estimates and assumptions. 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 Part II, Item 1A and other sections of this Form 10-Q, in our Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 Form 10-K”) and from time to time in our other reports filed with or furnished to the Securities and Exchange Commission (“SEC”). You should carefully consider the trends, risks and uncertainties described in this Form 10-Q, the 2021 Form 10-K, and other reports filed with or furnished to the SEC before making any investment decision with respect to our securities. If any of the following trends, risks or uncertainties actually occurs or continues, our business, financial condition or operating results could be materially and adversely affected, the trading prices of our securities could decline, and you could lose part or all of your investment. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement. We assume no obligation to update such information, except as may be required by law.

-2-

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

AMKOR TECHNOLOGY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	For the Three Months Ended March 31,
	2022		2021
	(In thousands, except per share data)
Net sales	$	1,596,816	$	1,326,150
Cost of sales	1,271,486		1,060,616
Gross profit	325,330		265,534
Selling, general and administrative	76,959		76,768
Research and development	38,363		44,318

Total operating expenses	115,322		121,086
Operating income	210,008		144,448
Interest expense	14,148		12,673

Other (income) expense, net	(5,096)		89
Total other expense, net	9,052		12,762
Income before taxes	200,956		131,686
Income tax expense	29,728		11,667
Net income	171,228		120,019
Net income attributable to non-controlling interests	(565)		(210)
Net income attributable to Amkor	$	170,663	$	119,809

Net income attributable to Amkor per common share:
Basic	$	0.70	$	0.49
Diluted	$	0.69	$	0.49

Shares used in computing per common share amounts:
Basic	244,403		243,267
Diluted	246,000		245,129

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 March 31,
	2022		2021
	(In thousands)
Net income	$	171,228	$	120,019
Other comprehensive income (loss), net of tax:
Adjustments to net unrealized gains (losses) on available-for-sale debt investments	(1,077)		(32)
Adjustments to unrealized components of defined benefit pension plans	4		25
Foreign currency translation	(8,409)		(11,440)

Total other comprehensive income (loss)	(9,482)		(11,447)
Comprehensive income	161,746		108,572
Comprehensive income attributable to non-controlling interests	(565)		(210)
Comprehensive income attributable to Amkor	$	161,181	$	108,362

The accompanying notes are an integral part of these statements.

-3-

Table of Contents

AMKOR TECHNOLOGY, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)


	March 31, 2022		December 31, 2021
	(In thousands, except per share data)
ASSETS
Current assets:
Cash and cash equivalents	$	854,802	$	826,744
Restricted cash	637		962
Short-term investments (amortized cost of $308,591 and $251,959 in 2022 and 2021, respectively)	307,016		251,530
Accounts receivable, net of allowances	1,201,007		1,258,767
Inventories	516,437		484,959
Other current assets	59,656		33,601
Total current assets	2,939,555		2,856,563
Property, plant and equipment, net	2,938,742		2,871,058
Operating lease right of use assets	180,883		159,742
Goodwill	23,182		24,516
Restricted cash	3,692		3,815
Other assets	139,733		122,860
Total assets	$	6,225,787	$	6,038,554
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings and current portion of long-term debt	$	156,692	$	153,008
Trade accounts payable	753,279		828,727
Capital expenditures payable	267,598		210,875
Short-term operating lease liability	71,229		64,233
Accrued expenses	374,319		422,892
Total current liabilities	1,623,117		1,679,735
Long-term debt	1,087,408		984,988
Pension and severance obligations	116,138		120,472
Long-term operating lease liabilities	86,300		83,937
Other non-current liabilities	186,002		196,876
Total liabilities	3,098,965		3,066,008
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; 290,687 and 290,466 shares issued; and 244,532 and 244,315 shares outstanding in 2022 and 2021, respectively	291		290
Additional paid-in capital	1,982,113		1,977,134
Retained earnings	1,322,370		1,163,939
Accumulated other comprehensive income (loss)	10,496		19,978
Treasury stock, at cost, 46,155 and 46,151 shares in 2022 and 2021, respectively	(219,147)		(219,065)
Total Amkor stockholders’ equity	3,096,123		2,942,276
Non-controlling interests in subsidiaries	30,699		30,270
Total equity	3,126,822		2,972,546
Total liabilities and equity	$	6,225,787	$	6,038,554

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 Earnings		Accumulated Other Comprehensive Income (Loss)					Total Amkor Stockholders’ Equity		Noncontrolling Interest in Subsidiaries		Total Equity
	Common Stock									Treasury Stock
	Shares	Par Value								Shares	Cost
	(In thousands)
Balance at December 31, 2021	290,466	$	290	$	1,977,134	$	1,163,939	$	19,978	(46,151)	$	(219,065)	$	2,942,276	$	30,270	$	2,972,546
Net income	—	—		—		170,663		—		—	—		170,663		565		171,228
Other comprehensive income (loss)	—	—		—		—		(9,482)		—	—		(9,482)		—		(9,482)


Treasury stock acquired through surrender of shares for tax withholding	—	—		—		—		—		(4)	(82)		(82)		—		(82)
Issuance of stock through share-based compensation plans	221	1		1,482		—		—		—	—		1,483		—		1,483
Share-based compensation	—	—		3,497		—		—		—	—		3,497		—		3,497
Cash dividends declared ($0.05 per common share)	—	—		—		(12,232)		—		—	—		(12,232)		—		(12,232)
Subsidiary dividends to non-controlling interests	—	—		—		—		—		—	—		—		(136)		(136)
Balance at March 31, 2022	290,687	$	291	$	1,982,113	$	1,322,370	$	10,496	(46,155)	$	(219,147)	$	3,096,123	$	30,699	$	3,126,822


Balance at December 31, 2020	288,923	$	289	$	1,953,378	$	562,502	$	27,270	(46,094)	$	(217,740)	$	2,325,699	$	28,260	$	2,353,959
Net income	—	—		—		119,809		—		—	—		119,809		210		120,019
Other comprehensive income (loss)	—	—		—		—		(11,447)		—	—		(11,447)		—		(11,447)


Treasury stock acquired through surrender of shares for tax withholding	—	—		—		—		—		(57)	(1,321)		(1,321)		—		(1,321)
Issuance of stock through share-based compensation plans	942	1		8,560		—		—		—	—		8,561		—		8,561
Share-based compensation	—	—		2,393		—		—		—	—		2,393		—		2,393
Cash Dividends declared ($0.04 per common share)	—	—		—		(9,777)		—		—	—		(9,777)		—		(9,777)
Subsidiary dividends to non-controlling interests	—	—		—		—		—		—	—		—		(150)		(150)
Balance at March 31, 2021	289,865	$	290	$	1,964,331	$	672,534	$	15,823	(46,151)	$	(219,061)	$	2,433,917	$	28,320	$	2,462,237

The accompanying notes are an integral part of these statements.

-5-

Table of Contents

AMKOR TECHNOLOGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	For the Three Months Ended March 31,
	2022		2021
	(In thousands)
Cash flows from operating activities:
Net income	$	171,228	$	120,019
Depreciation and amortization	148,192		135,390


Other operating activities and non-cash items	11,061		2,370
Changes in assets and liabilities	(164,303)		(80,991)
Net cash provided by operating activities	166,178		176,788
Cash flows from investing activities:
Payments for property, plant and equipment	(158,154)		(110,351)
Proceeds from sale of property, plant and equipment	416		547

Proceeds from foreign exchange forward contracts	1,828		2,960
Payments for foreign exchange forward contracts	(29,803)		(28,306)
Payments for short-term investments	(125,693)		(92,879)
Proceeds from sale of short-term investments	4,246		19,838
Proceeds from maturities of short-term investments	66,694		43,790
Other investing activities	457		29
Net cash used in investing activities	(240,009)		(164,372)
Cash flows from financing activities:


Proceeds from short-term debt	18,112		3,679
Payments of short-term debt	(3,790)		(7,803)
Proceeds from issuance of long-term debt	150,000		50,000

Payments of long-term debt	(35,973)		(79,684)




Payments of finance lease obligations	(7,538)		(3,216)



Payments of dividends	(12,228)		(19,457)
Other financing activities	653		7,037
Net cash provided by (used in) financing activities	109,236		(49,444)
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash	(7,795)		(10,397)
Net increase (decrease) in cash, cash equivalents and restricted cash	27,610		(47,425)
Cash, cash equivalents and restricted cash, beginning of period	831,521		702,197
Cash, cash equivalents and restricted cash, end of period	$	859,131	$	654,772
Non-cash investing and financing activities:
Property, plant and equipment included in capital expenditures payable	$	268,146	$	273,971

Right of use assets acquired through finance lease liabilities	6,438		—
Right of use assets acquired through operating lease liabilities	27,246		8,109

The accompanying notes are an integral part of these statements.

-6-

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 March 31, 2022, and for the three months ended March 31, 2022 and 2021, contained in this Form 10-Q (the “Consolidated Financial Statements”) are unaudited, pursuant to the rules and regulations of the SEC. The December 31, 2021 Consolidated Balance Sheet data contained in this Form 10-Q 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. GAAP”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to SEC rules and regulations. In our opinion, the Consolidated Financial Statements include all adjustments (consisting only of normal recurring adjustments) necessary for the fair statement of the results for the interim periods and should be read in conjunction with the financial statements included in the 2021 Form 10-K. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the full year ending December 31, 2022. Unless the context otherwise requires, all references to “Amkor,” “we,” “us” or “our” are to Amkor Technology, Inc. and its wholly and majority-owned 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, as a result of, for example, the impact of the Covid-19 pandemic and any worsening of the global business and economic environment.

Goodwill. The balance of goodwill in the Consolidated Balance Sheets contained in this Form 10-Q reflects adjustments for foreign currency translation.

Unbilled Receivables. Total unbilled receivables as of March 31, 2022 and December 31, 2021 were $220.4 million and $224.7 million, respectively.

Contract Liabilities. Contract liabilities were $175.1 million and $187.2 million as of March 31, 2022 and December 31, 2021, respectively. As of March 31, 2022 and December 31, 2021, the short-term portions of the liabilities were $112.8 million and $117.7 million, respectively. The remainder of the March 31, 2022 contract liability balance is expected to be recognized in revenue over the next 1-3 years. Revenue recognized during the three months ended March 31, 2022 and 2021 that was included in the contract liabilities balance at the beginning of the period was $28.9 million and $8.1 million, respectively.

2. Net Sales by Product Group and End Market

The following table presents our net sales by product group.


	For the Three Months Ended March 31,
	2022		2021
	(In thousands)
Advanced products (1)	$	1,156,508	$	920,655
Mainstream products (2)	440,308		405,495
Total net sales	$	1,596,816	$	1,326,150

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

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

-7-

Table of Contents

AMKOR TECHNOLOGY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

Net sales by end market consist of the following:


	For the Three Months Ended March 31,
	2022		2021
Communications (smart phones, tablets)	41	%	40	%
Automotive, industrial and other (ADAS, electrification, infotainment, safety)	21	%	22	%
Consumer (AR & gaming, connected home, home electronics, wearables)	19	%	21	%
Computing (data center, infrastructure, PC/laptop, storage)	19	%	17	%
Total net sales	100	%	100	%

3. Other Income and Expense

Other income and expense consist of the following:


	For the Three Months Ended March 31,
	2022		2021
	(In thousands)
Interest income	$	(603)	$	(279)
Foreign currency (gain) loss, net	(4,301)		619
Loss on debt retirement	97		—


Other	(289)		(251)
Other (income) expense, net	$	(5,096)	$	89

4. Income Taxes

Income tax expense of $29.7 million for the three months ended March 31, 2022 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.

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 decreased from $37.3 million as of December 31, 2021 to $36.7 million as of March 31, 2022, primarily due to settlement of examinations offset by increases related to income attribution. 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 2011-2021. 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.

-8-

Table of Contents

AMKOR TECHNOLOGY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

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, performance-vested restricted stock units, time-vested restricted stock units and unvested restricted shares.

The following table summarizes the computation of basic and diluted EPS:


	For the Three Months Ended March 31,
	2022		2021
	(In thousands, except per share data)
Net income attributable to Amkor common stockholders	$	170,663	$	119,809




Weighted-average number of common shares outstanding - basic	244,403		243,267
Effect of dilutive securities:
Share-based awards	1,597		1,862
Weighted-average number of common shares outstanding - diluted	246,000		245,129
Net income attributable to Amkor per common share:
Basic	$	0.70	$	0.49
Diluted	0.69		0.49

There were no anti-dilutive shares for the three months ended March 31, 2022 and 2021.

-9-

Table of Contents

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 Translation		Total
	(In thousands)
Accumulated other comprehensive income (loss) at December 31, 2021	$	(348)	$	5,616	$	14,710	$	19,978
Other comprehensive income (loss) before reclassifications	(1,087)		—		(8,409)		(9,496)
Amounts reclassified from accumulated other comprehensive income (loss)	10		4		—		14
Other comprehensive income (loss)	(1,077)		4		(8,409)		(9,482)
Accumulated other comprehensive income (loss) at March 31, 2022	$	(1,425)	$	5,620	$	6,301	$	10,496


	Unrealized Gains (Losses) on Available-for-Sale Debt Investments (1)		Defined Benefit Pension (2)		Foreign Currency Translation		Total
	(In thousands)
Accumulated other comprehensive income (loss) at December 31, 2020	$	21	$	(4,218)	$	31,467	$	27,270
Other comprehensive income (loss) before reclassifications	(59)		—		(11,440)		$	(11,499)
Amounts reclassified from accumulated other comprehensive income (loss)	27		25		—		$	52
Other comprehensive income (loss)	(32)		25		(11,440)		(11,447)
Accumulated other comprehensive income (loss) at March 31, 2021	$	(11)	$	(4,193)	$	20,027	$	15,823

(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).

-10-

Table of Contents

AMKOR TECHNOLOGY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

7. Investments

All of our available-for-sale debt investments as of March 31, 2022 are available to fund current operations and are recorded at fair value (Note 14).

The following table summarizes our cash equivalents and available-for-sale debt investments:


	March 31, 2022
									Fair Value Level
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses (1)		Total Fair Value		Level 1		Level 2
	(In thousands)
Cash equivalents


Commercial paper	$	53,513	$	—	$	—	$	53,513	$	—	$	53,513
Corporate bonds	12,686		4		(4)		12,686		—		12,686
Foreign government bonds	2,000		—		—		2,000		—		2,000
Money market funds	122,048		—		—		122,048		122,048		—

Municipal bonds	750		—		—		750		—		750
U.S. government bonds	13,298		—		—		13,298		13,298		—
U.S. government agency bonds	6,000		—		—		6,000		—		6,000
Total cash equivalents	210,295		4		(4)		210,295		135,346		74,949

Short-term investments
Asset-backed securities	20,503		1		(59)		20,445		—		20,445
Certificate of deposits	17,525		—		—		17,525		17,525		—
Commercial paper	24,736		—		—		24,736		—		24,736
Corporate bonds	229,958		3		(1,485)		228,476		—		228,476

Foreign government bonds	458		—		(3)		455		—		455
Municipal bonds	5,101		—		(5)		5,096		—		5,096

U.S. government bonds	5,164		—		(27)		5,137		5,137		—
Variable rate demand notes	500		—		—		500		—		500
Total short-term investments	303,945		4		(1,579)		302,370		22,662		279,708
Total	$	514,240	$	8	$	(1,583)	$	512,665	$	158,008	$	354,657

-11-

Table of Contents

AMKOR TECHNOLOGY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)


	December 31, 2021
									Fair Value Level
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses (1)		Total Fair Value		Level 1		Level 2
	(In thousands)
Cash equivalents


Commercial paper	$	5,499	$	—	$	—	$	5,499	$	—	$	5,499
Corporate bonds	4,921		—		(5)		4,916		—		4,916
Money market funds	269,251		—		—		269,251		269,251		—

Municipal bonds	500		—		—		500		—		500
U.S. government bonds	4,000		—		—		4,000		4,000		—
Total cash equivalents	284,171		—		(5)		284,166		273,251		10,915

Short-term investments
Asset-backed securities	12,915		1		(11)		12,905		—		12,905
Certificate of deposits	12,076		—		—		12,076		12,076		—
Commercial paper	30,691		—		—		30,691		—		30,691
Corporate bonds	179,235		1		(410)		178,826		—		178,826

Foreign government bonds	458		—		(1)		457		—		457
Municipal bonds	8,418		1		(2)		8,417		—		8,417
U.S. government bonds	2,966		—		(8)		2,958		2,958		—
Variable rate demand notes	500		—		—		500		—		500

Total short-term investments	247,259		3		(432)		246,830		15,034		231,796
Total	$	531,430	$	3	$	(437)	$	530,996	$	288,285	$	242,711

(1)All unrealized losses have been in a continuous loss position for less than 12 months. We do not intend to sell the investments in an unrealized loss position, and it is not more likely than not that we will be required to sell these investments before recovery of their amortized cost bases.