þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the Quarterly Period Ended June 30, 2018 | ||
or | ||
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from to |
Delaware (State of incorporation) | 23-1722724 (I.R.S. Employer Identification Number) |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o | Emerging growth company o |
(Do not check if a smaller reporting company) |
Page | ||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Net sales | $ | 1,065,684 | $ | 1,008,385 | $ | 2,091,003 | $ | 1,907,669 | |||||||
Cost of sales | 895,967 | 831,769 | 1,763,515 | 1,594,819 | |||||||||||
Gross profit | 169,717 | 176,616 | 327,488 | 312,850 | |||||||||||
Selling, general and administrative | 74,700 | 67,785 | 155,423 | 144,067 | |||||||||||
Research and development | 41,076 | 44,281 | 82,005 | 85,849 | |||||||||||
Gain on sale of real estate | — | (108,109 | ) | — | (108,109 | ) | |||||||||
Total operating expenses | 115,776 | 3,957 | 237,428 | 121,807 | |||||||||||
Operating income | 53,941 | 172,659 | 90,060 | 191,043 | |||||||||||
Interest expense | 21,127 | 22,158 | 41,138 | 43,412 | |||||||||||
Interest expense, related party | — | 293 | — | 1,535 | |||||||||||
Other (income) expense, net | (11,001 | ) | (3,288 | ) | (7,569 | ) | 7,893 | ||||||||
Total other expense, net | 10,126 | 19,163 | 33,569 | 52,840 | |||||||||||
Income before taxes | 43,815 | 153,496 | 56,491 | 138,203 | |||||||||||
Income tax expense | 10,631 | 33,466 | 13,112 | 32,141 | |||||||||||
Net income | 33,184 | 120,030 | 43,379 | 106,062 | |||||||||||
Net income attributable to non-controlling interests | (593 | ) | (1,017 | ) | (1,244 | ) | (1,835 | ) | |||||||
Net income attributable to Amkor | $ | 32,591 | $ | 119,013 | $ | 42,135 | $ | 104,227 | |||||||
Net income attributable to Amkor per common share: | |||||||||||||||
Basic | $ | 0.14 | $ | 0.50 | $ | 0.18 | $ | 0.44 | |||||||
Diluted | $ | 0.14 | $ | 0.50 | $ | 0.18 | $ | 0.44 | |||||||
Shares used in computing per common share amounts: | |||||||||||||||
Basic | 239,351 | 238,863 | 239,283 | 238,774 | |||||||||||
Diluted | 239,804 | 239,679 | 239,805 | 239,601 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In thousands) | |||||||||||||||
Net income | $ | 33,184 | $ | 120,030 | $ | 43,379 | $ | 106,062 | |||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Adjustments to unrealized components of defined benefit pension plans | (42 | ) | 18 | (81 | ) | 248 | |||||||||
Foreign currency translation | (11,144 | ) | (833 | ) | 3,947 | 12,753 | |||||||||
Total other comprehensive income (loss) | (11,186 | ) | (815 | ) | 3,866 | 13,001 | |||||||||
Comprehensive income | 21,998 | 119,215 | 47,245 | 119,063 | |||||||||||
Comprehensive income attributable to non-controlling interests | (593 | ) | (1,017 | ) | (1,244 | ) | (1,835 | ) | |||||||
Comprehensive income attributable to Amkor | $ | 21,405 | $ | 118,198 | $ | 46,001 | $ | 117,228 |
June 30, 2018 | December 31, 2017 | ||||||
(In thousands, except per share data) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 380,262 | $ | 596,364 | |||
Restricted cash | 2,000 | 2,000 | |||||
Accounts receivable, net of allowances | 795,750 | 798,264 | |||||
Inventories | 243,019 | 213,649 | |||||
Other current assets | 37,148 | 33,727 | |||||
Total current assets | 1,458,179 | 1,644,004 | |||||
Property, plant and equipment, net | 2,754,960 | 2,695,065 | |||||
Goodwill | 25,472 | 25,036 | |||||
Restricted cash | 3,503 | 4,487 | |||||
Other assets | 139,567 | 139,796 | |||||
Total assets | $ | 4,381,681 | $ | 4,508,388 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Short-term borrowings and current portion of long-term debt | $ | 115,057 | $ | 123,848 | |||
Trade accounts payable | 553,475 | 569,085 | |||||
Capital expenditures payable | 238,772 | 294,258 | |||||
Accrued expenses | 254,348 | 330,868 | |||||
Total current liabilities | 1,161,652 | 1,318,059 | |||||
Long-term debt | 1,214,535 | 1,240,581 | |||||
Pension and severance obligations | 184,072 | 182,216 | |||||
Other non-current liabilities | 51,264 | 47,823 | |||||
Total liabilities | 2,611,523 | 2,788,679 | |||||
Commitments and contingencies (Note 16) | |||||||
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; 285,322 and 285,129 shares issued; and 239,366 and 239,184 shares outstanding in 2018 and 2017, respectively | 285 | 285 | |||||
Additional paid-in capital | 1,906,936 | 1,903,357 | |||||
Retained earnings (accumulated deficit) | 28,232 | (13,903 | ) | ||||
Accumulated other comprehensive income (loss) | 26,385 | 22,519 | |||||
Treasury stock, at cost, 45,956 and 45,945 shares, in 2018 and 2017, respectively | (216,087 | ) | (215,982 | ) | |||
Total Amkor stockholders’ equity | 1,745,751 | 1,696,276 | |||||
Non-controlling interests in subsidiaries | 24,407 | 23,433 | |||||
Total equity | 1,770,158 | 1,719,709 | |||||
Total liabilities and equity | $ | 4,381,681 | $ | 4,508,388 |
For the Six Months Ended June 30, | |||||||
2018 | 2017 | ||||||
(In thousands) | |||||||
Cash flows from operating activities: | |||||||
Net income | $ | 43,379 | $ | 106,062 | |||
Depreciation and amortization | 285,515 | 287,068 | |||||
Gain on sale of real estate | — | (108,109 | ) | ||||
Other operating activities and non-cash items | (3,239 | ) | (4,659 | ) | |||
Changes in assets and liabilities | (119,276 | ) | (80,403 | ) | |||
Net cash provided by operating activities | 206,379 | 199,959 | |||||
Cash flows from investing activities: | |||||||
Payments for property, plant and equipment | (389,568 | ) | (271,651 | ) | |||
Proceeds from sale of property, plant and equipment | 603 | 130,962 | |||||
Acquisition of business, net of cash acquired | — | (43,771 | ) | ||||
Other investing activities | 2,647 | (2,117 | ) | ||||
Net cash used in investing activities | (386,318 | ) | (186,577 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from revolving credit facilities | — | 75,000 | |||||
Proceeds from short-term debt | 7,264 | 41,228 | |||||
Payments of short-term debt | (31,546 | ) | (32,110 | ) | |||
Proceeds from issuance of long-term debt | 64,000 | 215,086 | |||||
Payments of long-term debt | (77,015 | ) | (207,653 | ) | |||
Payment of deferred consideration for purchase of facility | — | (3,890 | ) | ||||
Payments of capital lease obligations | (1,689 | ) | (2,665 | ) | |||
Other financing activities | 492 | 561 | |||||
Net cash provided by (used in) financing activities | (38,494 | ) | 85,557 | ||||
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash | 1,347 | 9,418 | |||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (217,086 | ) | 108,357 | ||||
Cash, cash equivalents and restricted cash, beginning of period | 602,851 | 555,495 | |||||
Cash, cash equivalents and restricted cash, end of period | $ | 385,765 | $ | 663,852 | |||
Non-cash investing and financing activities: | |||||||
Property, plant and equipment included in capital expenditures payable | $ | 239,460 | $ | 233,084 | |||
Equipment acquired through capital lease | $ | 6,477 | $ | 929 |
• | We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. |
• | We do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. |
• | We exclude sales, use, value-added and similar taxes from the transaction price, without performing a jurisdiction-by-jurisdiction assessment. |
For the Three Months Ended June 30, 2017 | |||||||||||
As Previously Reported | New Accounting Pronouncement Adjustment | As Adjusted | |||||||||
(In thousands, except per share data) | |||||||||||
Income Statement: | |||||||||||
Net sales | $ | 989,447 | $ | 18,938 | $ | 1,008,385 | |||||
Cost of sales | 817,212 | 14,557 | 831,769 | ||||||||
Gross profit | 172,235 | 4,381 | 176,616 | ||||||||
Income tax expense | 32,573 | 893 | 33,466 | ||||||||
Net income | 116,459 | 3,571 | 120,030 | ||||||||
Net income attributable to Amkor | 115,507 | 3,506 | 119,013 | ||||||||
Net income attributable to Amkor per common share - diluted | 0.48 | 0.02 | 0.50 |
For the Six Months Ended June 30, 2017 | |||||||||||
As Previously Reported | New Accounting Pronouncement Adjustment | As Adjusted | |||||||||
(In thousands, except per share data) | |||||||||||
Income Statement: | |||||||||||
Net sales | $ | 1,903,047 | $ | 4,622 | $ | 1,907,669 | |||||
Cost of sales | 1,587,906 | 6,913 | 1,594,819 | ||||||||
Gross profit | 315,141 | (2,291 | ) | 312,850 | |||||||
Income tax expense | 33,012 | (871 | ) | 32,141 | |||||||
Net income | 107,315 | (1,253 | ) | 106,062 | |||||||
Net income attributable to Amkor | 105,501 | (1,274 | ) | 104,227 | |||||||
Net income attributable to Amkor per common share - diluted | 0.44 | — | 0.44 |
December 31, 2017 | |||||||||||
As Previously Reported | New Accounting Pronouncement Adjustment | As Adjusted | |||||||||
(In thousands) | |||||||||||
Balance Sheet: | |||||||||||
Accounts receivable, net | $ | 692,287 | $ | 105,977 | $ | 798,264 | |||||
Inventories | 326,492 | (112,843 | ) | 213,649 | |||||||
Other assets | 146,051 | (6,255 | ) | 139,796 | |||||||
Accrued expenses | 374,598 | (43,730 | ) | 330,868 | |||||||
Other non-current liabilities | 46,144 | 1,679 | 47,823 | ||||||||
Accumulated deficit (1) | (42,851 | ) | 28,948 | (13,903 | ) |
(1) | The adjustment to accumulated deficit includes the 2017 and 2016 net income impact for the adoption of Topic 606 of $2.8 million and $11.3 million, respectively. The adjustment also includes the cumulative impact to our 2016 beginning accumulated deficit of $14.8 million. |
– | A contract with a customer has been identified |
– | All performance obligations within the customer contract have been identified |
– | The transaction price attributable to the contract has been determined and allocated to each performance obligation, and |
– | The performance obligations have been determined to be satisfied. Performance obligations are deemed to be satisfied when, or as, control of services has been transferred to the customer. |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In thousands) | (In thousands) | ||||||||||||||
Advanced products (1) | $ | 496,241 | $ | 445,100 | $ | 971,993 | $ | 820,967 | |||||||
Mainstream products (2) | 569,443 | 563,285 | 1,119,010 | 1,086,702 | |||||||||||
Total net sales | $ | 1,065,684 | $ | 1,008,385 | $ | 2,091,003 | $ | 1,907,669 |
(1) | Advanced products include flip chip and wafer-level processing and related test services |
(2) | Mainstream products include wirebond packaging and related test services |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Communications (smartphones, tablets, handheld devices) | 42 | % | 40 | % | 42 | % | 39 | % | |||
Automotive, industrial and other (driver assist, infotainment, safety, performance) | 26 | % | 27 | % | 26 | % | 28 | % | |||
Computing (datacenter, infrastructure, PC/laptop, storage) | 19 | % | 19 | % | 19 | % | 19 | % | |||
Consumer (set-top boxes, televisions, connected home, personal electronics, visual imaging) | 13 | % | 14 | % | 13 | % | 14 | % | |||
Total net sales | 100 | % | 100 | % | 100 | % | 100 | % |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In thousands) | |||||||||||||||
Interest income | $ | (955 | ) | $ | (955 | ) | $ | (1,943 | ) | $ | (1,466 | ) | |||
Foreign currency (gain) loss, net | (7,110 | ) | (2,252 | ) | (2,397 | ) | 9,132 | ||||||||
Other | (2,936 | ) | (81 | ) | (3,229 | ) | 227 | ||||||||
Other (income) expense, net | $ | (11,001 | ) | $ | (3,288 | ) | $ | (7,569 | ) | $ | 7,893 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Net income attributable to Amkor common stockholders | $ | 32,591 | $ | 119,013 | $ | 42,135 | $ | 104,227 | |||||||
Weighted-average number of common shares outstanding — basic | 239,351 | 238,863 | 239,283 | 238,774 | |||||||||||
Effect of dilutive securities: | |||||||||||||||
Stock options and restricted share awards | 453 | 816 | 522 | 827 | |||||||||||
Weighted-average number of common shares outstanding — diluted | 239,804 | 239,679 | 239,805 | 239,601 | |||||||||||
Net income attributable to Amkor per common share: | |||||||||||||||
Basic | $ | 0.14 | $ | 0.50 | $ | 0.18 | $ | 0.44 | |||||||
Diluted | 0.14 | 0.50 | 0.18 | 0.44 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
(In thousands) | |||||||||||
Stock options and restricted share awards | 3,644 | 3,193 | 3,524 | 3,473 |
Attributable to Amkor | Attributable to Non-controlling Interests | Total | |||||||||
(In thousands) | |||||||||||
Equity at December 31, 2017 | $ | 1,696,276 | $ | 23,433 | $ | 1,719,709 | |||||
Net income | 42,135 | 1,244 | 43,379 | ||||||||
Other comprehensive income (loss) | 3,866 | — | 3,866 | ||||||||
Issuance of stock through employee share-based compensation plans | 1,023 | — | 1,023 | ||||||||
Treasury stock acquired through surrender of shares for tax withholding | (105 | ) | — | (105 | ) | ||||||
Share-based compensation | 2,556 | — | 2,556 | ||||||||
Subsidiary dividends paid to non-controlling interests | — | (270 | ) | (270 | ) | ||||||
Equity at June 30, 2018 | $ | 1,745,751 | $ | 24,407 | $ | 1,770,158 |
Attributable to Amkor | Attributable to Non-controlling Interests | Total | |||||||||
(In thousands) | |||||||||||
Equity at December 31, 2016 | $ | 1,409,692 | $ | 19,825 | $ | 1,429,517 | |||||
Net income | 104,227 | 1,835 | 106,062 | ||||||||
Other comprehensive income (loss) | 13,001 | — | 13,001 | ||||||||
Issuance of stock through employee share-based compensation plans | 2,365 | — | 2,365 | ||||||||
Treasury stock acquired through surrender of shares for tax withholding | (1,378 | ) | — | (1,378 | ) | ||||||
Share-based compensation | 2,516 | — | 2,516 | ||||||||
Subsidiary dividends paid to non-controlling interests | — | (270 | ) | (270 | ) | ||||||
Equity at June 30, 2017 | $ | 1,530,423 | $ | 21,390 | $ | 1,551,813 |
Defined Benefit Pension | Foreign Currency Translation | Total | |||||||||
(In thousands) | |||||||||||
Accumulated other comprehensive income (loss) at December 31, 2017 | $ | 6,303 | $ | 16,216 | $ | 22,519 | |||||
Other comprehensive income (loss) before reclassifications | — | 3,947 | 3,947 | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (81 | ) | — | (81 | ) | ||||||
Other comprehensive income (loss) | (81 | ) | 3,947 | 3,866 | |||||||
Accumulated other comprehensive income (loss) at June 30, 2018 | $ | 6,222 | $ | 20,163 | $ | 26,385 |
Defined Benefit Pension | Foreign Currency Translation | Total | |||||||||
(In thousands) | |||||||||||
Accumulated other comprehensive income (loss) at December 31, 2016 | $ | 1,138 | $ | 5,124 | $ | 6,262 | |||||
Other comprehensive income (loss) before reclassifications | — | 12,753 | 12,753 | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 248 | — | 248 | ||||||||
Other comprehensive income (loss) | 248 | 12,753 | 13,001 | ||||||||
Accumulated other comprehensive income (loss) at June 30, 2017 | $ | 1,386 | $ | 17,877 | $ | 19,263 |
June 30, 2018 | December 31, 2017 | ||||||
(In thousands) | |||||||
Land | $ | 225,493 | $ | 224,894 | |||
Land use rights | 26,845 | 26,845 | |||||
Buildings and improvements | 1,496,683 | 1,384,846 | |||||
Machinery and equipment | 5,131,573 | 4,938,291 | |||||
Software and computer equipment | 206,219 | 200,500 | |||||
Furniture, fixtures and other equipment | 16,664 | 15,722 | |||||
Construction in progress | 57,334 | 104,910 | |||||
Total property, plant and equipment | 7,160,811 | 6,896,008 | |||||
Accumulated depreciation and amortization | (4,405,851 | ) | (4,200,943 | ) | |||
Total property, plant and equipment, net | $ | 2,754,960 | $ | 2,695,065 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In thousands) | |||||||||||||||
Depreciation expense | $ | 142,497 | $ | 144,839 | $ | 284,502 | $ | 286,295 |
June 30, 2018 | December 31, 2017 | ||||||
(In thousands) | |||||||
Payroll and benefits | $ | 113,990 | $ | 134,785 | |||
Income taxes payable | 23,658 | 56,664 | |||||
Accrued settlement costs | 19,212 | 37,783 | |||||
Deferred revenue and customer advances | 16,724 | 14,740 | |||||
Accrued severance plan obligations | 14,937 | 15,190 | |||||
Accrued interest | 11,728 | 11,873 | |||||
Other accrued expenses | 54,099 | 59,833 | |||||
Total accrued expenses | $ | 254,348 | $ | 330,868 |
June 30, 2018 | December 31, 2017 | ||||||
(In thousands) | |||||||
Debt of Amkor Technology, Inc.: | |||||||
Senior secured credit facilities: | |||||||
$200 million revolving credit facility, LIBOR plus 1.25%-1.75%, due December 2019 (1) | $ | — | $ | — | |||
Senior notes: | |||||||
6.625% Senior notes, due June 2021 (2) | 200,000 | 200,000 | |||||
6.375% Senior notes, due October 2022 | 524,971 | 524,971 | |||||
Debt of subsidiaries: | |||||||
Amkor Technology Korea, Inc.: | |||||||
$75 million revolving credit facility, foreign currency funding-linked base rate plus 1.60%, due September 2018 (3) | 75,000 | 75,000 | |||||
Term loan, LIBOR plus 2.70%, due December 2019 | — | 55,000 | |||||
Term loan, foreign currency funding-linked base rate plus 1.32%, due May 2020 | 141,000 | 150,000 | |||||
Term loan, fixed rate at 3.70%, due May 2020 | 120,000 | 120,000 | |||||
Term loan, fund floating rate plus 1.60%, due June 2020 (4) | 150,000 | 86,000 | |||||
J-Devices Corporation: | |||||||
Short-term term loans, variable rate (5) | 7,223 | 30,455 | |||||
Term loans, fixed rate at 0.53%, due April 2018 | — | 6,744 | |||||
Term loan, fixed rate at 0.86%, due June 2022 | 36,114 | 39,933 | |||||
Term loan, fixed rate at 0.60%, due July 2022 | 7,674 | 8,430 | |||||
Other: | |||||||
Revolving credit facility, TAIFX plus a bank-determined spread, due November 2020 (Taiwan) (6) | 20,000 | 20,000 | |||||
Term loan, LIBOR plus 1.80%, due December 2019 (China) | 48,500 | 49,000 | |||||
1,330,482 | 1,365,533 | ||||||
Less: Unamortized premium and deferred debt costs, net | (890 | ) | (1,104 | ) | |||
Less: Short-term borrowings and current portion of long-term debt | (115,057 | ) | (123,848 | ) | |||
Long-term debt | $ | 1,214,535 | $ | 1,240,581 |
(1) | As of June 30, 2018, we had availability of $199.5 million under a senior secured revolving credit facility, after reduction of $0.5 million of outstanding standby letters of credit. In July 2018, this credit facility was terminated and replaced by a new facility entered into by Amkor Technology Singapore Holding Pte, Ltd. and guaranteed by Amkor Technology, Inc. This new credit facility has availability up to $250.0 million, a letter of credit sub-limit facility of $15.0 million and a termination date of July 2023. The availability for this revolving credit facility is limited to a percentage of the amount of eligible accounts receivable. |
(2) | In July 2018, we issued a redemption notice for all $200 million of our 6.625% Senior Notes due 2021 ("Notes"). The note redemption is scheduled for completion in August 2018. In accordance with the terms of the indenture governing the Notes, the redemption price will be 100% of the principal amount of the Notes plus accrued and unpaid interest. The redemption of the Notes will be funded with proceeds from our ¥26.0 billion (approximately US$230 million) term loan agreement entered into in July 2018 by J-Devices Corporation and guaranteed by Amkor |
(3) | In June 2018, we extended our $75.0 million credit facility from June 2018 to September 2018. Principal is payable at maturity. Interest is due monthly in arrears, at a foreign currency funding-linked base rate plus 1.60% (4.66% as of June 30, 2018). |
(4) | In May 2015, we entered into a term loan agreement pursuant to which we may borrow up to $150.0 million for capital expenditures. Principal is payable at maturity. Interest is payable quarterly in arrears, at a fund floating rate plus 1.60% (4.27% as of June 30, 2018). In the second quarter of 2018, we borrowed $64.0 million on this facility and repaid other Amkor Technology Korea, Inc. term loans with earlier maturity dates. |
(5) | We entered into various short-term term loans which mature semiannually. Principal and interest is payable in monthly installments. Interest as of June 30, 2018 is at TIBOR plus 0.15%. As of June 30, 2018, $9.0 million was available to be drawn. |
(6) | In November 2015, we entered into a $39.0 million revolving credit facility. Principal is payable at maturity. Interest is payable monthly, at TAIFX plus a bank determined spread (3.75% as of June 30, 2018). As of June 30, 2018, $19.0 million was available to be drawn. |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In thousands) | |||||||||||||||
Service cost | $ | 8,299 | $ | 8,430 | $ | 16,715 | $ | 16,770 | |||||||
Interest cost | 1,226 | 1,013 | 2,469 | 2,020 | |||||||||||
Expected return on plan assets | (1,417 | ) | (1,133 | ) | (2,859 | ) | (2,261 | ) | |||||||
Amortization of prior service cost | — | — | — | 31 | |||||||||||
Recognized actuarial (gain) loss | (42 | ) | 22 | (77 | ) | 44 | |||||||||
Net periodic pension cost | $ | 8,066 | $ | 8,332 | $ | 16,248 | $ | 16,604 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In thousands) | |||||||||||||||
Defined contribution expense | $ | 3,017 | $ | 2,581 | $ | 7,013 | $ | 5,779 |
June 30, 2018 | December 31, 2017 | ||||||
(In thousands) | |||||||
Cash equivalent money market funds (Level 1) | $ | 75,167 | $ | 121,627 | |||
Restricted cash money market funds (Level 1) | 2,000 | 2,000 |
June 30, 2018 | December 31, 2017 | ||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||
(In thousands) | |||||||||||||||
Senior notes (Level 1) | $ | 736,693 | $ | 724,081 | $ | 745,943 | $ | 723,867 | |||||||
Revolving credit facilities and term loans (Level 2) | 603,645 | 605,511 | 639,689 | 640,562 | |||||||||||
Total debt | $ | 1,340,338 | $ | 1,329,592 | $ | 1,385,632 | $ | 1,364,429 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Net sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||
Materials | 38.9 | % | 35.3 | % | 37.9 | % | 35.4 | % | |||
Labor | 16.0 | % | 16.4 | % | 16.8 | % | 16.5 | % | |||
Other manufacturing costs | 29.2 | % | 30.8 | % | 29.6 | % | 31.7 | % | |||
Gross margin | 15.9 | % | 17.5 | % | 15.7 | % | 16.4 | % | |||
Operating income | 5.1 | % | 17.1 | % | 4.3 | % | 10.0 | % | |||
Net income attributable to Amkor | 3.1 | % | 11.8 | % | 2.0 | % | 5.5 | % |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||
2018 | 2017 | Change | 2018 | 2017 | Change | ||||||||||||||||||||||||
(In thousands, except percentages) | |||||||||||||||||||||||||||||
Net sales | $ | 1,065,684 | $ | 1,008,385 | $ | 57,299 | 5.7 | % | $ | 2,091,003 | $ | 1,907,669 | $ | 183,334 | 9.6 | % |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2018 | 2017 | Change | 2018 | 2017 | Change | ||||||||||||||||||
(In thousands, except percentages) | |||||||||||||||||||||||
Gross profit | $ | 169,717 | $ | 176,616 | $ | (6,899 | ) | $ | 327,488 | $ | 312,850 | $ | 14,638 | ||||||||||
Gross margin | 15.9 | % | 17.5 | % | (1.6 | )% | 15.7 | % | 16.4 | % | (0.7 | )% |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||
2018 | 2017 | Change | 2018 | 2017 | Change | ||||||||||||||||||||||||
(In thousands, except percentages) | |||||||||||||||||||||||||||||
Selling, general and administrative | $ | 74,700 | $ | 67,785 | $ | 6,915 | 10.2 | % | $ | 155,423 | $ | 144,067 | $ | 11,356 | 7.9 | % |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||
2018 | 2017 | Change | 2018 | 2017 | Change | ||||||||||||||||||||||||
(In thousands, except percentages) | |||||||||||||||||||||||||||||
Research and development | $ | 41,076 | $ | 44,281 | $ | (3,205 | ) | (7.2 | )% | $ | 82,005 | $ | 85,849 | $ | (3,844 | ) | (4.5 | )% |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||
2018 | 2017 | Change | 2018 | 2017 | Change | ||||||||||||||||||||||||
(In thousands, except percentages) | |||||||||||||||||||||||||||||
Interest expense, including related party | $ | 21,127 | $ | 22,451 | $ | (1,324 | ) | (5.9 | )% | $ | 41,138 | $ | 44,947 | $ | (3,809 | ) | (8.5 | )% | |||||||||||
Foreign currency (gain) loss, net | (7,110 | ) | (2,252 | ) | (4,858 | ) | >100% | (2,397 | ) | 9,132 | (11,529 | ) | >(100)% | ||||||||||||||||
Other (income) expense, net | (3,891 | ) | (1,036 | ) | (2,855 | ) | >100% | (5,172 | ) | (1,239 | ) | (3,933 | ) | >100% | |||||||||||||||
Total other expense, net | $ | 10,126 | $ | 19,163 | $ | (9,037 | ) | (47.2 | )% | $ | 33,569 | $ | 52,840 | $ | (19,271 | ) | (36.5 | )% |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2018 | 2017 | Change | 2018 | 2017 | Change | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Income tax expense | $ | 10,631 | $ | 33,466 | $ | (22,835 | ) | $ | 13,112 | $ | 32,141 | $ | (19,029 | ) |
For the Six Months Ended June 30, | |||||||
2018 | 2017 | ||||||
(In thousands) | |||||||
Operating activities | $ | 206,379 | $ | 199,959 | |||
Investing activities | (386,318 | ) | (186,577 | ) | |||
Financing activities | (38,494 | ) | 85,557 |
For the Six Months Ended June 30, | |||||||
2018 | 2017 | ||||||
(In thousands) | |||||||
Net cash provided by operating activities | $ | 206,379 | $ | 199,959 | |||
Payments for property, plant and equipment | (389,568 | ) | (271,651 | ) | |||
Proceeds from sale of property, plant and equipment | 603 | 130,962 | |||||
Free cash flow | $ | (182,586 | ) | $ | 59,270 |
Payments Due for Year Ending December 31, | |||||||||||||||||||||||||||
Total | 2018 - Remaining | 2019 | 2020 | 2021 | 2022 | Thereafter | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||
Total debt | $ | 1,330,482 | $ | 88,140 | $ | 109,834 | $ | 390,834 | $ | 210,834 | $ | 530,840 | $ | — | |||||||||||||
Scheduled interest payment obligations (1) | 227,947 | 34,479 | 66,282 | 53,501 | 40,199 | 33,486 | — | ||||||||||||||||||||
Purchase obligations (2) | 116,962 | 109,873 | 1,842 | 1,334 | 1,049 | 1,049 | 1,815 | ||||||||||||||||||||
Operating lease obligations | 104,695 | 14,022 | 25,309 | 16,067 | 11,487 | 8,548 | 29,262 | ||||||||||||||||||||
Severance obligations (3) | 145,285 | 7,469 | 13,351 | 12,029 | 10,864 | 9,793 | 91,779 | ||||||||||||||||||||
Settlement payments (4) | 19,375 | 19,375 | — | — | — | — | — | ||||||||||||||||||||
Total contractual obligations | $ | 1,944,746 | $ | 273,358 | $ | 216,618 | $ | 473,765 | $ | 274,433 | $ | 583,716 | $ | 122,856 |
(1) | Represents interest payment obligations calculated using stated coupon rates for fixed rate debt and interest rates applicable at June 30, 2018, for variable rate debt. |
(2) | Represents off-balance sheet purchase obligations for capital expenditures and long-term supply contracts outstanding at June 30, 2018. |
(3) | Represents estimated benefit payments for our Korean subsidiary severance plan. |
(4) | Represents settlement payments for patent license litigation. At June 30, 2018, the total obligation is $19.4 million of which $19.2 million is a current liability and $0.2 million will be imputed into interest over time. |
• | $53.5 million of net foreign pension plan obligations, for which the timing and actual amount of impact on our future cash flow is uncertain. |
• | $29.3 million net liability associated with unrecognized tax benefits. Due to the uncertainty regarding the amount and the timing of any future cash outflows associated with our unrecognized tax benefits, we are unable to reasonably estimate the amount and period of ultimate settlement, if any, with the various taxing authorities. |
2018 - Remaining | 2019 | 2020 | 2021 | 2022 | Total | Fair Value | |||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||
Fixed rate debt | $ | 5,417 | $ | 10,834 | $ | 130,834 | $ | 210,834 | $ | 530,840 | $ | 888,759 | $ | 898,496 | |||||||||||||
Average interest rate | 0.8 | % | 0.8 | % | 3.5 | % | 6.3 | % | 6.3 | % | 5.8 | % | |||||||||||||||
Variable rate debt | $ | 82,723 | $ | 99,000 | $ | 260,000 | $ | — | $ | — | $ | 441,723 | $ | 441,842 | |||||||||||||
Average interest rate | 4.3 | % | 4.5 | % | 4.4 | % | — | % | — | % | 4.4 | % | |||||||||||||||
Total debt | $ | 88,140 | $ | 109,834 | $ | 390,834 | $ | 210,834 | $ | 530,840 | $ | 1,330,482 | $ | 1,340,338 |
• | fluctuation in demand for semiconductors and conditions in the semiconductor industry generally, as well as by specific customers, such as inventory reductions by our customers impacting demand in key markets; |
• | our ability to achieve our major growth objectives, including: transitioning second-wave customers to advanced packages; expanding our sales to customers in Greater China and, in particular, in the mid-level and entry-level tiers of the mobile device market; and increasing our share of the automotive market; |
• | changes in our capacity and capacity utilization rates; |
• | changes in average selling prices which can occur quickly due to the absence of long-term agreements on price; |
• | changes in the mix of the semiconductor packaging and test services that we sell; |
• | the development, transition and ramp to high volume manufacture of more advanced silicon nodes and evolving wafer, packaging and test technologies, may cause production delays, lower manufacturing yields and supply constraints for new wafers and other materials; |
• | absence of backlog, the short-term nature of our customers’ commitments, double bookings by customers and deterioration in customer forecasts and the impact of these factors, including the possible delay, rescheduling and cancellation of large orders, or the timing and volume of orders relative to our production capacity; |
• | changes in costs, quality, availability and delivery times of raw materials, components and equipment; |
• | changes in labor costs to perform our services; |
• | wage inflation and fluctuations in commodity prices, including gold, copper and other precious metals; |
• | the timing of expenditures in anticipation of future orders; |
• | changes in effective tax rates; |
• | the availability and cost of financing; |
• | intellectual property transactions and disputes; |
• | high leverage and restrictive covenants; |
• | warranty and product liability claims and the impact of quality excursions and customer disputes and returns; |
• | costs associated with legal claims, indemnification obligations, judgments and settlements; |
• | international events, such as the United Kingdom's vote to leave the European Union, political instability, civil disturbances or environmental or natural events, such as earthquakes like the recent ones in Japan, that impact our operations; |
• | pandemic illnesses that may impact our labor force and our ability to travel; |
• | costs of acquisitions and divestitures and difficulties integrating acquisitions; |
• | our ability to attract and retain qualified personnel to support our global operations; |
• | fluctuations in interest rates and currency exchange rates; |
• | fluctuations in our manufacturing yields; |
• | our ability to penetrate new end markets or expand our business in existing end markets; |
• | dependence on key customers or concentration of customers in certain end markets, such as mobile communications and automotive and |
• | restructuring charges, asset write-offs and impairments. |
• | changes in consumer demand resulting from deteriorating conditions in local economies; |
• | laws, rules, regulations and policies imposed by U.S. or foreign governments, such as tariffs, customs, duties and other restrictive trade barriers, national security, data privacy and cybersecurity, antitrust and competition, tax, currency and banking, labor, environmental, health and safety, and in particular the recent increase in tariffs, customs, duties and other restrictive trade barriers considered or adopted by U.S. and foreign governments; |
• | laws, rules, regulations and policies within China and other countries that may favor domestic companies over non-domestic companies, including customer- or government-supported efforts to promote the development and growth of local competitors; |
• | the payment of dividends and other payments by non-U.S. subsidiaries may be subject to prohibitions, limitations or taxes in local jurisdictions; |
• | fluctuations in currency exchange rates, particularly the dollar/yen exchange rate for J-Devices; |
• | political and social conditions, and the potential for civil unrest, terrorism or other hostilities; |
• | disruptions or delays in shipments caused by customs brokers or government agencies; |
• | difficulties in attracting and retaining qualified personnel and managing foreign operations, including foreign labor disruptions; |
• | difficulty in enforcing contractual rights and protecting our intellectual property rights; |
• | potentially adverse tax consequences resulting from tax laws in the U.S. and in foreign jurisdictions in which we operate and |
• | local business and cultural factors that differ from our normal standards and practices, including business practices that we are prohibited from engaging in by the Foreign Corrupt Practices Act and other anti-corruption laws and regulations. |
• | their desire to realize higher utilization of their existing packaging and test capacity, especially during downturns in the semiconductor industry; |
• | their unwillingness to disclose proprietary technology; |
• | their possession of more advanced packaging and test technologies and |
• | the guaranteed availability of their own packaging and test capacity. |
• | make it more difficult for us to satisfy our obligations with respect to our indebtedness, including our obligations under our indentures to purchase notes tendered as a result of a change in control of Amkor; |
• | increase our vulnerability to general adverse economic and industry conditions; |
• | limit our ability to fund future working capital, capital expenditures, research and development and other business opportunities, including joint ventures and acquisitions; |
• | require us to dedicate a substantial portion of our cash flow from operations to service payments of interest and principal on our debt, thereby reducing the availability of our cash flow to fund future working capital, capital expenditures, research and development expenditures and other general corporate requirements; |
• | increase the volatility of the price of our common stock; |
• | limit our flexibility to react to changes in our business and the industry in which we operate; |
• | place us at a competitive disadvantage to any of our competitors that have less debt; |
• | limit, along with the financial and other restrictive covenants in our indebtedness, among other things, our ability to borrow additional funds; |
• | limit our ability to refinance our existing indebtedness, particularly during periods of adverse credit market conditions when refinancing indebtedness may not be available under interest rates and other terms acceptable to us or at all and |
• | increase our cost of borrowing. |
• | we may face delays in the design and implementation of the system; |
• | the cost of the systems may exceed our plans and expectations and |
• | disruptions resulting from the implementation or integration of the systems may impact our ability to process transactions and delay shipments to customers, impact our results of operations or financial condition or harm our control environment. |
• | increasing the scope, geographic diversity and complexity of our operations; |
• | conforming an acquired company's standards, practices, systems and controls with our operations; |
• | increasing complexity from combining recent acquisitions of an acquired business; |
• | unexpected losses of key employees or customers of an acquired business; other difficulties in the assimilation of acquired operations, technologies or products and |
• | diversion of management and other resources from other parts of our operations and adverse effects on existing business relationships with customers. |
• | use a significant portion of our available cash; |
• | issue equity securities, which may dilute the ownership of current stockholders; |
• | incur substantial debt; |
• | incur or assume known or unknown contingent liabilities and |
• | incur large, immediate accounting write offs and face antitrust or other regulatory inquiries or actions. |
• | our future financial condition, results of operations and cash flows; |
• | general market conditions for financing; |
• | volatility in fixed income, credit and equity markets and |
• | economic, political and other global conditions. |
• | discontinue the use of certain processes or cease to provide the services at issue, which could curtail our business; |
• | pay substantial damages; |
• | develop non-infringing technologies, which may not be feasible or |
• | acquire licenses to such technology, which may not be available on commercially reasonable terms or at all. |
• | contaminants in the manufacturing environment; |
• | human error; |
• | equipment malfunction; |
• | changing processes to address environmental requirements; |
• | defective raw materials or |
• | defective plating services. |
Period | Total Number of Shares Purchased (a) | Average Price Paid Per Share ($) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (b) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs ($) (b) | ||||||||||
April 1 - April 30 | — | $ | — | — | $ | 91,586,032 | ||||||||
May 1 - May 31 | 5,425 | 9.18 | — | 91,586,032 | ||||||||||
June 1 - June 30 | — | — | — | 91,586,032 | ||||||||||
Total | 5,425 | $ | 9.18 | — |
(a) | Represents shares of common stock surrendered to us to satisfy tax withholding obligations associated with the vesting of restricted shares issued to employees. |
(b) | Our Board of Directors previously authorized the repurchase of up to $300.0 million of our common stock, $150.0 million in August 2011 and $150.0 million in February 2012, exclusive of any fees, commissions or other expenses. For the three months ended June 30, 2018, we made no common stock purchases, and at June 30, 2018, approximately $91.6 million was available pursuant to the stock repurchase program. |
By: | /s/ Megan Faust | |
Megan Faust | ||
Corporate Vice President and | ||
Chief Financial Officer |
Incorporated by Reference | Filed Herewith | |||||||||||
Exhibit Number | Exhibit Description | Form | Period Ending | Exhibit | Filing Date | |||||||
X | ||||||||||||
X | ||||||||||||
X | ||||||||||||
101.INS | XBRL Instance Document | X | ||||||||||
101.SCH | XBRL Taxonomy Extension Schema Document | X | ||||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | X | ||||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | X | ||||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | X | ||||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | X |
1. | I have reviewed this Quarterly Report on Form 10-Q of Amkor Technology, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting. |
/s/ Stephen D. Kelley | |
Stephen D. Kelley | |
President and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Amkor Technology, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting. |
/s/ Megan Faust | |
Megan Faust | |
Corporate Vice President and Chief Financial Officer |
/s/ Stephen D. Kelley | |
Stephen D. Kelley | |
President and Chief Executive Officer |
/s/ Megan Faust | |
Megan Faust | |
Corporate Vice President and Chief Financial Officer |
Document and Entity Information Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jul. 27, 2018 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | AMKOR TECHNOLOGY, INC. | |
Entity Central Index Key | 0001047127 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 239,538,384 |
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Income Statement [Abstract] | ||||
Net sales | $ 1,065,684 | $ 1,008,385 | $ 2,091,003 | $ 1,907,669 |
Cost of sales | 895,967 | 831,769 | 1,763,515 | 1,594,819 |
Gross profit | 169,717 | 176,616 | 327,488 | 312,850 |
Selling, general and administrative | 74,700 | 67,785 | 155,423 | 144,067 |
Research and development | 41,076 | 44,281 | 82,005 | 85,849 |
Gain on sale of real estate | 0 | (108,109) | 0 | (108,109) |
Total operating expenses | 115,776 | 3,957 | 237,428 | 121,807 |
Operating income | 53,941 | 172,659 | 90,060 | 191,043 |
Interest expense | 21,127 | 22,158 | 41,138 | 43,412 |
Interest expense, related party | 0 | 293 | 0 | 1,535 |
Other (income) expense, net | (11,001) | (3,288) | (7,569) | 7,893 |
Total other expense, net | 10,126 | 19,163 | 33,569 | 52,840 |
Income before taxes | 43,815 | 153,496 | 56,491 | 138,203 |
Income tax expense | 10,631 | 33,466 | 13,112 | 32,141 |
Net income | 33,184 | 120,030 | 43,379 | 106,062 |
Net income attributable to non-controlling interests | (593) | (1,017) | (1,244) | (1,835) |
Net income attributable to Amkor | $ 32,591 | $ 119,013 | $ 42,135 | $ 104,227 |
Net income attributable to Amkor per common share: | ||||
Basic (in dollars per share) | $ 0.14 | $ 0.50 | $ 0.18 | $ 0.44 |
Diluted (in dollars per share) | $ 0.14 | $ 0.50 | $ 0.18 | $ 0.44 |
Shares used in computing per common share amounts: | ||||
Basic (in shares) | 239,351 | 238,863 | 239,283 | 238,774 |
Diluted (in shares) | 239,804 | 239,679 | 239,805 | 239,601 |
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 33,184 | $ 120,030 | $ 43,379 | $ 106,062 |
Other comprehensive income (loss), net of tax: | ||||
Adjustments to unrealized components of defined benefit pension plans | (42) | 18 | (81) | 248 |
Foreign currency translation | (11,144) | (833) | 3,947 | 12,753 |
Total other comprehensive income (loss) | (11,186) | (815) | 3,866 | 13,001 |
Comprehensive income | 21,998 | 119,215 | 47,245 | 119,063 |
Comprehensive income attributable to non-controlling interests | (593) | (1,017) | (1,244) | (1,835) |
Comprehensive income attributable to Amkor | $ 21,405 | $ 118,198 | $ 46,001 | $ 117,228 |
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Stockholders’ equity: | ||
Preferred stock designated Series A, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock designated Series A, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock designated Series A, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 285,322,000 | 285,129,000 |
Common stock, shares outstanding | 239,366,000 | 239,184,000 |
Treasury stock, shares | 45,956,000 | 45,945,000 |
Interim Financial Statements |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interim Financial Statements | Interim Financial Statements Basis of Presentation. The Consolidated Financial Statements and related disclosures as of June 30, 2018, and for the three and six months ended June 30, 2018 and 2017, are unaudited, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). The December 31, 2017, 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, 2017, filed on Form 10-K with the SEC on February 23, 2018. The results of operations for the three and six months ended June 30, 2018, 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. Effective January 1, 2018, we adopted Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606), using the full retrospective transition method as discussed in Note 2. All amounts and disclosures set forth in this Form 10-Q reflect these changes. On May 22, 2017, we completed the purchase of Nanium, S.A. ("Nanium"). Nanium's financial results have been included in our Consolidated Financial Statements from the date of acquisition (Note 4). 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. |
New Accounting Standards |
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Accounting Changes and Error Corrections [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Accounting Standards | New Accounting Standards Recently Adopted Standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which was subsequently amended and clarified. The standard is based on the principle that revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, including significant judgments and changes in judgments. The standard permits the use of either full retrospective or modified retrospective methods of adoption. Effective January 1, 2018, we adopted the requirements of Topic 606 using the full retrospective transition method. The new standard resulted in a change to the timing of revenue recognition, whereby revenue is recognized "over time" as services are performed rather than at a "point in time", generally upon shipment. The new standard also resulted in an increase in accounts receivables, net and a related decrease in inventories and deferred revenues. In accordance with Topic 606, we applied the following principles in connection with the adoption of the new standard:
The adoption of the standard impacted our previously reported results as follows:
The adoption of the standard had no impact on cash provided by or used in operating, investing, or financing activities on our consolidated cash flow statements. In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. ASU 2017-07 requires that the service cost component of net periodic pension costs be presented in the same line item as other compensation costs and all other components of net periodic pension costs be presented in the statement of income as nonoperating expenses. ASU 2017-07 is effective for reporting periods beginning after December 15, 2017 and applied retrospectively. We adopted ASU 2017-07 on January 1, 2018 and estimated the impact on the prior comparative period information presented in the consolidated financial statements applying the principles permitted by the standard. For the three and six months ended June 30, 2017, the retrospective application resulted in a $(0.1) million and $0.2 million reclassification of pension costs from operating income to other (income) expense, net in the Consolidated Statements of Income for the respective periods. Refer to Note 14 for additional information. Recently Issued Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which was subsequently amended and clarified. ASU 2016-02 requires a dual approach for lease accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability. For finance leases the lessee would recognize interest expense and amortization of the right-of-use asset, and for operating leases the lessee would recognize a straight-line lease expense. ASU 2016-02 is effective for reporting periods beginning after December 15, 2018 and requires either a modified retrospective transition approach with application in all comparative periods presented, or an alternative transition method, which permits a company to use its effective date as the date of initial application without restating comparative period financial statements. Early adoption is permitted. We are currently evaluating the impact that this guidance may have on our financial statements and disclosure, and have not yet selected a transition method. |
Significant Accounting Policies |
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Jun. 30, 2018 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Significant Accounting Policies | Significant Accounting Policies Our significant accounting policies are detailed in Note 1 to our Consolidated Financial Statements in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2017. Significant changes to our accounting policies as a result of adopting Topic 606 are discussed below: Revenue Recognition. We recognize revenue, net of sales, use, value-added and other similar taxes, after the following:
Our packaging and test services are our performance obligations to our customers. Our packaging services include wafer bump, probe and assembly. We provide packaging and test services to our customers either individually or as part of a combined offering. In a combined offering, we account for the individual services separately if they are determined to be distinct. We determine a service to be distinct if it is separately identifiable from other services in the combined offering and if a customer can benefit from the unique service on its own or with other resources that are readily available to the customer. The consideration, including variable consideration, is allocated between the distinct services in a combined offering based upon the stand-alone selling prices of the individual services. Our services involve a high degree of specialization which are unique based on the design and purpose of the customer’s wafers. Accordingly, our negotiated pricing reflects the customized nature of our services and represents a customer-specific stand-alone selling price. We recognize revenue as services are rendered, which generally occurs over the course of two to three weeks. Services are generally billed at completion of each individual packaging or test service or in some instances at the completion of all services in a combined offering. We recognize revenue over time as services are rendered because our services create or enhance the customer’s wafer. We utilize an input method (cost incurred plus estimated margin) to determine the amount of revenue to recognize for in-process, but incomplete customer orders at a reporting date. During the period of providing our services, we generally do not control or take ownership of customers' wafers, nor do we include the cost of the wafer in our cost calculations. We believe that a cost-based input method is the most appropriate manner to measure how we satisfy our performance obligations to customers because the effort and costs incurred to package and/or test customer wafers are not linear over the duration of these services. Shipping and handling costs are accounted for as a cost to fulfill our performance obligations to customers. Accordingly, we record customer payments of shipping and handling costs as a component of net sales, and the costs incurred for shipping and handling are then charged to cost of sales. Unbilled Receivables. Unbilled receivables are revenues that have been recognized for performance obligations that have been satisfied, or partially satisfied, in advance of billing the customer. Revenue may be recognized in advance of billing as our contracts provide us with an unconditional right to consideration for work that is performed. Total unbilled receivables as of June 30, 2018 and December 31, 2017 were $106.6 million and $101.9 million, respectively. These amounts are included in accounts receivable, net of allowances in our Consolidated Balance Sheets. Inventories. Inventories consist of raw materials and purchased components, and are stated at the lower of cost and net realizable value. Cost is principally determined by standard cost or the weighted moving average method, both of which approximate actual cost. We review and set our standard costs as needed, but at a minimum on an annual basis. We reduce the carrying value of our inventories for the cost of inventory we estimate is excess and obsolete based on the age of our inventories. When a determination is made that the inventory will not be utilized in production or is not saleable, it is written-off. |
Acquisition |
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Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition On May 22, 2017, we completed the purchase of 100% of the shares of Nanium, a provider of wafer-level fan-out semiconductor packaging solutions. We allocated the purchase price to the assets acquired and liabilities assumed based on their estimated fair values on the date of acquisition. We did not record goodwill as a result of the acquisition. |
Net Sales by Product Group and End Market |
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Net Sales by Product Group and End Market | Net Sales by Product Group and End Market The following table presents net sales by product group:
The following table presents net sales by end market:
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Other Income and Expense |
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Other Income and Expense | Other Income and Expense Other income and expense consists of the following:
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Income Taxes |
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Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In December 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was signed into law. Accounting Standards Codification ("ASC") 740, Income Taxes, requires companies to recognize the effect of tax law changes in the period of enactment even though the effective date for most provisions is for tax years beginning after December 31, 2017. Given the significance of the Tax Act, the SEC staff issued Staff Accounting Bulletin No. 118, which allows registrants to record provisional amounts during a one year “measurement period” similar to that used when accounting for business combinations. However, the measurement period is deemed to have ended earlier when the registrant has obtained, prepared and analyzed the information necessary to finalize its accounting. During the measurement period, impacts of the law are expected to be recorded at the time a reasonable estimate for all or a portion of the effects can be made, and provisional amounts can be recognized and adjusted as information becomes available, prepared or analyzed. We have reported provisional amounts for the income tax effects of the Tax Act for which the accounting is incomplete, but a reasonable estimate could be determined in our financial statements for the year ended December 31, 2017. There were no specific impacts of the Tax Act that could not be reasonably estimated. Our estimate of the impact of the Tax Act may be adjusted throughout the allowable measurement period. We have not completed the accounting for any of the income tax effects of the Tax Act during the six months ended June 30, 2018 as we continue to collect additional information, prepare and analyze the information and evaluate any regulatory guidance or clarifications. We have not made adjustments to the provisional amounts reported for the year ended December 31, 2017, nor have we concluded on any accounting policy elections. Changes to our provisional estimates and further analysis could impact our judgments, elections and assertions. Income tax expense of $13.1 million for the six months ended June 30, 2018 reflects income taxes of our various operations, including foreign withholding taxes and minimum taxes. Income tax expense also reflects income taxed in foreign jurisdictions where we benefit from tax holidays. 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. Except for deferred tax assets in Portugal, we consider it more likely than not that we will have sufficient taxable income to allow us to realize most of our foreign deferred tax assets. We maintain a valuation allowance on a portion of our U.S. net deferred tax assets, for net operating loss carryforwards not expected to be realized due to Global Intangible Low-Taxed Income ("GILTI") and foreign tax credit carryforwards expected to expire unused. 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 $27.2 million at December 31, 2017, to $24.8 million as of June 30, 2018. 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 statues of limitations and other factors. Tax return examinations involve uncertainties, and there can be no assurance that the outcome of examinations will be favorable. |
Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | 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:
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:
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Equity and Accumulated Other Comprehensive Income (Loss) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity and Accumulated Other Comprehensive Income (Loss) | Equity and Accumulated Other Comprehensive Income (Loss) Changes in equity consist of the following:
Changes in accumulated other comprehensive income (loss), net of tax, consist of the following:
Amounts reclassified out of accumulated other comprehensive income (loss) are included as a component of net periodic pension cost (Note 14). |
Factoring of Accounts Receivable |
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Jun. 30, 2018 | |
Factoring of Accounts Receivable [Abstract] | |
Factoring of Accounts Receivable | Factoring of Accounts Receivable In certain foreign locations, we use non-recourse factoring arrangements with third-party financial institutions to manage our working capital and cash flows. Under this program, we sell receivables to a financial institution for cash at a discount to the face amount. As part of the factoring arrangements, we perform certain collection and administrative functions for the receivables sold. For the three and six months ended June 30, 2018, we sold accounts receivable totaling $203.1 million and $428.6 million, net of discounts and fees of $2.0 million and $3.8 million, respectively. For the three and six months ended June 30, 2017, we sold accounts receivable totaling $133.1 million and $265.2 million, net of discounts and fees of $0.8 million and $1.5 million, respectively. |
Property, Plant and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant And Equipment | Property, Plant and Equipment Property, plant and equipment consist of the following:
The following table summarizes our depreciation expense:
As part of our plan to consolidate factory operations in Korea, we sold the land and buildings comprising our K1 factory in May 2017 for $142.4 million. We received 10% of the sale price at signing in November 2016 and the balance at closing, at which time we recognized a pre-tax gain of $108.1 million. |
Accrued Expenses |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses | Accrued Expenses Accrued expenses consist of the following:
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Following is a summary of short-term borrowings and long-term debt:
Certain of our foreign debt is collateralized by the land, buildings and equipment in the respective locations. The carrying value of the collateral exceeds the carrying amount of the debt. The debt of Amkor Technology, Inc. is structurally subordinated in right of payment to all existing and future debt and other liabilities of our subsidiaries. From time to time, Amkor Technology, Inc. also guarantees certain debt of our subsidiaries. The agreements governing our indebtedness contain affirmative and negative covenants which restrict our ability to pay dividends and could restrict our operations. We have never paid a dividend to our stockholders and we do not have any present plans for doing so. We were in compliance with all debt covenants at June 30, 2018. |
Pension Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans | Pension Plans Foreign Defined Benefit Pension Plans Our subsidiaries in Japan, Korea, Malaysia, the Philippines and Taiwan sponsor defined benefit pension plans. Charges to expense are based upon actuarial analyses. The components of net periodic pension cost for these defined benefit pension plans are as follows:
The components of net periodic pension cost other than the service cost component are included in other (income) expense, net in our Consolidated Statements of Income. Defined Contribution Pension Plans We sponsor defined contribution pension plans in Korea, Malaysia, Taiwan and the U.S. The following table summarizes our defined contribution expense:
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The accounting framework for determining fair value includes a hierarchy for ranking the quality and reliability of the information used to measure fair value, which enables the reader of the financial statements to assess the inputs used to develop those measurements. The fair value hierarchy consists of three tiers as follows: Level 1, defined as quoted market prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, model-based valuation techniques for which all significant assumptions are observable in the market or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities and Level 3, defined as unobservable inputs that are not corroborated by market data. The fair values of cash, accounts receivable, trade accounts payable, capital expenditures payable, and certain other current assets and accrued expenses approximate carrying values because of their short-term nature. The carrying value of certain other non-current assets and liabilities approximates fair value. Our assets and liabilities recorded at fair value on a recurring basis include cash equivalent money market funds and restricted cash money market funds. We also review goodwill for impairment annually during the fourth quarter of each year. Cash equivalent money market funds and restricted cash money market funds are invested in U.S. money market funds and various U.S. and foreign bank operating and time deposit accounts, which are due on demand or carry a maturity date of less than three months when purchased. No restrictions have been imposed on us regarding withdrawal of balances with respect to our cash equivalents as a result of liquidity or other credit market issues affecting the money market funds we invest in or the counterparty financial institutions holding our deposits. Money market funds are valued using quoted market prices in active markets for identical assets. Recurring fair value measurements consist of the following:
We also measure certain assets and liabilities, including property, plant and equipment and goodwill, at fair value on a nonrecurring basis. We measure the fair value of our debt for disclosure purposes. The following table presents the fair value of financial instruments that are not recorded at fair value on a recurring basis:
The estimated fair value of our senior notes is based primarily on quoted market prices reported on or near the respective balance sheet dates. The estimated fair value of our revolving credit facilities and term loans is calculated using a discounted cash flow analysis, which utilizes market-based assumptions including forward interest rates adjusted for credit risk. |
Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We generally warrant that our services will be performed in a professional and workmanlike manner and in compliance with our customers' specifications. We accrue costs for known warranty issues. Historically, our warranty costs have been immaterial. Legal Proceedings We are involved in claims and legal proceedings and may become involved in other legal matters arising in the ordinary course of our business. We evaluate these claims and legal matters on a case-by-case basis to make a determination as to the impact, if any, on our business, liquidity, results of operations, financial condition or cash flows. Although the outcome of these matters is uncertain, we believe that the ultimate outcome of these claims and proceedings, individually and in the aggregate, will not have a material adverse impact to us. Our evaluation of the potential impact of these claims and legal proceedings on our business, liquidity, results of operations, financial condition or cash flows could change in the future. In accordance with the accounting guidance for loss contingencies, including legal proceedings, lawsuits, pending claims and other legal matters, we accrue for a loss contingency when we conclude that the likelihood of a loss is probable and the amount of the loss can be reasonably estimated. We adjust our accruals from time to time as we receive additional information, but the loss we incur may be significantly greater than or less than the amount we have accrued. We disclose loss contingencies if we believe they are material and there is at least a reasonable possibility that a loss has been incurred. Attorney fees related to legal matters are expensed as incurred. |
Interim Financial Statements (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation. The Consolidated Financial Statements and related disclosures as of June 30, 2018, and for the three and six months ended June 30, 2018 and 2017, are unaudited, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). The December 31, 2017, 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, 2017, filed on Form 10-K with the SEC on February 23, 2018. The results of operations for the three and six months ended June 30, 2018, 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. |
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Accounting Standards Update, Recently Adopted Standards and Recently Issued Standards | Effective January 1, 2018, we adopted Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606), using the full retrospective transition method as discussed in Note 2. All amounts and disclosures set forth in this Form 10-Q reflect these changes. Recently Adopted Standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which was subsequently amended and clarified. The standard is based on the principle that revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, including significant judgments and changes in judgments. The standard permits the use of either full retrospective or modified retrospective methods of adoption. Effective January 1, 2018, we adopted the requirements of Topic 606 using the full retrospective transition method. The new standard resulted in a change to the timing of revenue recognition, whereby revenue is recognized "over time" as services are performed rather than at a "point in time", generally upon shipment. The new standard also resulted in an increase in accounts receivables, net and a related decrease in inventories and deferred revenues. In accordance with Topic 606, we applied the following principles in connection with the adoption of the new standard:
The adoption of the standard impacted our previously reported results as follows:
The adoption of the standard had no impact on cash provided by or used in operating, investing, or financing activities on our consolidated cash flow statements. In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. ASU 2017-07 requires that the service cost component of net periodic pension costs be presented in the same line item as other compensation costs and all other components of net periodic pension costs be presented in the statement of income as nonoperating expenses. ASU 2017-07 is effective for reporting periods beginning after December 15, 2017 and applied retrospectively. We adopted ASU 2017-07 on January 1, 2018 and estimated the impact on the prior comparative period information presented in the consolidated financial statements applying the principles permitted by the standard. For the three and six months ended June 30, 2017, the retrospective application resulted in a $(0.1) million and $0.2 million reclassification of pension costs from operating income to other (income) expense, net in the Consolidated Statements of Income for the respective periods. Refer to Note 14 for additional information. Recently Issued Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which was subsequently amended and clarified. ASU 2016-02 requires a dual approach for lease accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability. For finance leases the lessee would recognize interest expense and amortization of the right-of-use asset, and for operating leases the lessee would recognize a straight-line lease expense. ASU 2016-02 is effective for reporting periods beginning after December 15, 2018 and requires either a modified retrospective transition approach with application in all comparative periods presented, or an alternative transition method, which permits a company to use its effective date as the date of initial application without restating comparative period financial statements. Early adoption is permitted. We are currently evaluating the impact that this guidance may have on our financial statements and disclosure, and have not yet selected a transition method. |
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Use of Estimates | 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. |
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Goodwill | Goodwill. The balance of goodwill in our Consolidated Balance Sheets reflects adjustments for foreign currency translation. |
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Revenue Recognition | Revenue Recognition. We recognize revenue, net of sales, use, value-added and other similar taxes, after the following:
Our packaging and test services are our performance obligations to our customers. Our packaging services include wafer bump, probe and assembly. We provide packaging and test services to our customers either individually or as part of a combined offering. In a combined offering, we account for the individual services separately if they are determined to be distinct. We determine a service to be distinct if it is separately identifiable from other services in the combined offering and if a customer can benefit from the unique service on its own or with other resources that are readily available to the customer. The consideration, including variable consideration, is allocated between the distinct services in a combined offering based upon the stand-alone selling prices of the individual services. Our services involve a high degree of specialization which are unique based on the design and purpose of the customer’s wafers. Accordingly, our negotiated pricing reflects the customized nature of our services and represents a customer-specific stand-alone selling price. We recognize revenue as services are rendered, which generally occurs over the course of two to three weeks. Services are generally billed at completion of each individual packaging or test service or in some instances at the completion of all services in a combined offering. We recognize revenue over time as services are rendered because our services create or enhance the customer’s wafer. We utilize an input method (cost incurred plus estimated margin) to determine the amount of revenue to recognize for in-process, but incomplete customer orders at a reporting date. During the period of providing our services, we generally do not control or take ownership of customers' wafers, nor do we include the cost of the wafer in our cost calculations. We believe that a cost-based input method is the most appropriate manner to measure how we satisfy our performance obligations to customers because the effort and costs incurred to package and/or test customer wafers are not linear over the duration of these services. Shipping and handling costs are accounted for as a cost to fulfill our performance obligations to customers. Accordingly, we record customer payments of shipping and handling costs as a component of net sales, and the costs incurred for shipping and handling are then charged to cost of sales. |
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Unbilled Receivables | Unbilled Receivables. Unbilled receivables are revenues that have been recognized for performance obligations that have been satisfied, or partially satisfied, in advance of billing the customer. Revenue may be recognized in advance of billing as our contracts provide us with an unconditional right to consideration for work that is performed. Total unbilled receivables as of June 30, 2018 and December 31, 2017 were $106.6 million and $101.9 million, respectively. These amounts are included in accounts receivable, net of allowances in our Consolidated Balance Sheets. |
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Inventories | Inventories. Inventories consist of raw materials and purchased components, and are stated at the lower of cost and net realizable value. Cost is principally determined by standard cost or the weighted moving average method, both of which approximate actual cost. We review and set our standard costs as needed, but at a minimum on an annual basis. We reduce the carrying value of our inventories for the cost of inventory we estimate is excess and obsolete based on the age of our inventories. When a determination is made that the inventory will not be utilized in production or is not saleable, it is written-off. |
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Income 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. Except for deferred tax assets in Portugal, we consider it more likely than not that we will have sufficient taxable income to allow us to realize most of our foreign deferred tax assets. We maintain a valuation allowance on a portion of our U.S. net deferred tax assets, for net operating loss carryforwards not expected to be realized due to Global Intangible Low-Taxed Income ("GILTI") and foreign tax credit carryforwards expected to expire unused. 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. |
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Commitments and Contingencies | In accordance with the accounting guidance for loss contingencies, including legal proceedings, lawsuits, pending claims and other legal matters, we accrue for a loss contingency when we conclude that the likelihood of a loss is probable and the amount of the loss can be reasonably estimated. We adjust our accruals from time to time as we receive additional information, but the loss we incur may be significantly greater than or less than the amount we have accrued. We disclose loss contingencies if we believe they are material and there is at least a reasonable possibility that a loss has been incurred. Attorney fees related to legal matters are expensed as incurred. |
New Accounting Standards (Tables) |
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Accounting Changes and Error Corrections [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the impacted previously reported results | The adoption of the standard impacted our previously reported results as follows:
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Net Sales by Product Group and End Market (Tables) |
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales by product group and end market | The following table presents net sales by end market:
The following table presents net sales by product group:
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Other Income and Expense (Tables) |
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of other income and expense | Other income and expense consists of the following:
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Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of basic and diluted earnings per share | The following table summarizes the computation of basic and diluted EPS:
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Summary of potential shares of common stock excluded from diluted earnings per share | 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:
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Equity and Accumulated Other Comprehensive Income (Loss) (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in equity | Changes in equity consist of the following:
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Changes in accumulated other comprehensive income (loss), net of tax | Changes in accumulated other comprehensive income (loss), net of tax, consist of the following:
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Property, Plant and Equipment (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of property, plant and equipment and depreciation expense | Property, plant and equipment consist of the following:
The following table summarizes our depreciation expense:
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Accrued Expenses (Tables) |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of accrued expenses | Accrued expenses consist of the following:
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Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of short-term borrowings and long-term debt | Following is a summary of short-term borrowings and long-term debt:
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Pension Plans (Tables) |
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of net periodic pension cost | The components of net periodic pension cost for these defined benefit pension plans are as follows:
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Summary of defined contribution expense | The following table summarizes our defined contribution expense:
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Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recurring fair value measurements | Recurring fair value measurements consist of the following:
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Fair value of financial instruments that are not recorded at fair value on recurring basis | The following table presents the fair value of financial instruments that are not recorded at fair value on a recurring basis:
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New Accounting Standards - Compensation – Retirement Benefits (Topic 715) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating income | $ (53,941) | $ (172,659) | $ (90,060) | $ (191,043) |
Other (income) expense, net | $ 11,001 | 3,288 | $ 7,569 | (7,893) |
ASU 2017-07 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating income | (100) | 200 | ||
Other (income) expense, net | $ 100 | $ (200) |
Significant Accounting Policies (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Dec. 31, 2017 |
|
Disaggregation of Revenue [Line Items] | ||
Unbilled receivables | $ 106.6 | $ 101.9 |
Minimum | ||
Disaggregation of Revenue [Line Items] | ||
Course of recognition | 14 days | |
Maximum | ||
Disaggregation of Revenue [Line Items] | ||
Course of recognition | 21 days |
Acquisition (Details) |
May 22, 2017 |
---|---|
Nanium S.A. | |
Business Acquisition [Line Items] | |
Ownership interest acquired (as a percent) | 100.00% |
Net Sales by Product Group and End Market - Net Sales by Product Group (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Disaggregation of Revenue [Line Items] | ||||
Net sales by product group | $ 1,065,684 | $ 1,008,385 | $ 2,091,003 | $ 1,907,669 |
Advanced products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales by product group | 496,241 | 445,100 | 971,993 | 820,967 |
Mainstream products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales by product group | $ 569,443 | $ 563,285 | $ 1,119,010 | $ 1,086,702 |
Other Income and Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Other Income and Expenses [Abstract] | ||||
Interest income | $ (955) | $ (955) | $ (1,943) | $ (1,466) |
Foreign currency (gain) loss, net | (7,110) | (2,252) | (2,397) | 9,132 |
Other | (2,936) | (81) | (3,229) | 227 |
Other (income) expense, net | $ (11,001) | $ (3,288) | $ (7,569) | $ 7,893 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
|
Income Tax Disclosure [Abstract] | |||||
Income tax expense | $ 10,631 | $ 33,466 | $ 13,112 | $ 32,141 | |
Gross unrecognized tax benefits | $ 24,800 | $ 24,800 | $ 27,200 |
Earnings Per Share - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Earnings Per Share [Abstract] | ||||
Net income attributable to Amkor common stockholders | $ 32,591 | $ 119,013 | $ 42,135 | $ 104,227 |
Weighted-average number of common shares outstanding — basic | 239,351 | 238,863 | 239,283 | 238,774 |
Effect of dilutive securities: | ||||
Stock options and restricted share awards (in shares) | 453 | 816 | 522 | 827 |
Weighted-average number of common shares outstanding — diluted | 239,804 | 239,679 | 239,805 | 239,601 |
Net income attributable to Amkor per common share: | ||||
Basic (in dollars per share) | $ 0.14 | $ 0.50 | $ 0.18 | $ 0.44 |
Diluted (in dollars per share) | $ 0.14 | $ 0.50 | $ 0.18 | $ 0.44 |
Earnings Per Share - Summary of Potential Shares of Common Stock Excluded from Diluted EPS (Details) - shares shares in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Stock options and restricted share awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options and restricted share awards | 3,644 | 3,193 | 3,524 | 3,473 |
Factoring of Accounts Receivable (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Total Factored | ||||
Factoring of Accounts Receivable [Line Items] | ||||
Accounts receivable sold | $ 203.1 | $ 133.1 | $ 428.6 | $ 265.2 |
Discounts and Fees | ||||
Factoring of Accounts Receivable [Line Items] | ||||
Accounts receivable sold | $ 2.0 | $ 0.8 | $ 3.8 | $ 1.5 |
Property, Plant and Equipment - Summary of Depreciation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 142,497 | $ 144,839 | $ 284,502 | $ 286,295 |
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|---|
May 31, 2017 |
Nov. 30, 2016 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Property, Plant and Equipment [Line Items] | ||||||
Proceeds from sale of property, plant and equipment | $ 603 | $ 130,962 | ||||
Pre-tax gain at close | $ 0 | $ 108,109 | $ 0 | $ 108,109 | ||
Korea | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Proceeds from sale of property, plant and equipment | $ 142,400 | |||||
Percentage of proceeds received | 10.00% | |||||
Pre-tax gain at close | $ 108,100 |
Accrued Expenses (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Payables and Accruals [Abstract] | ||
Payroll and benefits | $ 113,990 | $ 134,785 |
Income taxes payable | 23,658 | 56,664 |
Accrued settlement costs | 19,212 | 37,783 |
Deferred revenue and customer advances | 16,724 | 14,740 |
Accrued severance plan obligations | 14,937 | 15,190 |
Accrued interest | 11,728 | 11,873 |
Other accrued expenses | 54,099 | 59,833 |
Total accrued expenses | $ 254,348 | $ 330,868 |
Pension Plans - Components of Net Periodic Pension Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Retirement Benefits [Abstract] | ||||
Service cost | $ 8,299 | $ 8,430 | $ 16,715 | $ 16,770 |
Interest cost | 1,226 | 1,013 | 2,469 | 2,020 |
Expected return on plan assets | (1,417) | (1,133) | (2,859) | (2,261) |
Amortization of prior service cost | 0 | 0 | 0 | 31 |
Recognized actuarial (gain) loss | (42) | 22 | (77) | 44 |
Net periodic pension cost | $ 8,066 | $ 8,332 | $ 16,248 | $ 16,604 |
Pension Plans - Summary of Defined Contribution Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Retirement Benefits [Abstract] | ||||
Defined contribution expense | $ 3,017 | $ 2,581 | $ 7,013 | $ 5,779 |
Fair Value Measurements - Recurring Fair Value Measurements (Details) - Recurring Fair Value Measurements - Level 1 - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalent money market funds | $ 75,167 | $ 121,627 |
Restricted cash money market funds | $ 2,000 | $ 2,000 |
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