Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 24, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 000-29472 | |
Entity Registrant Name | AMKOR TECHNOLOGY, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 23-1722724 | |
Entity Address, Address Line One | 2045 East Innovation Circle | |
Entity Address, City or Town | Tempe | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85284 | |
City Area Code | 480 | |
Local Phone Number | 821-5000 | |
Entity Filer Category | Large Accelerated Filer | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | AMKR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 241,149,312 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001047127 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Net sales | $ 1,152,616 | $ 894,964 |
Cost of sales | 963,708 | 774,203 |
Gross profit | 188,908 | 120,761 |
Selling, general and administrative | 72,582 | 71,587 |
Research and development | 32,253 | 35,754 |
Total operating expenses | 104,835 | 107,341 |
Operating income | 84,073 | 13,420 |
Interest expense | 17,045 | 19,273 |
Other (income) expense, net | (2,315) | (4,565) |
Total other expense, net | 14,730 | 14,708 |
Income (loss) before taxes | 69,343 | (1,288) |
Income tax expense | 4,846 | 21,380 |
Net income (loss) | 64,497 | (22,668) |
Net income attributable to non-controlling interests | (608) | (211) |
Net income (loss) attributable to Amkor | $ 63,889 | $ (22,879) |
Net income (loss) attributable to Amkor per common share: | ||
Basic (in dollars per share) | $ 0.27 | $ (0.10) |
Diluted (in dollars per share) | $ 0.26 | $ (0.10) |
Shares used in computing per common share amounts: | ||
Basic (in shares) | 240,919 | 239,414 |
Diluted (in shares) | 241,333 | 239,414 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 64,497 | $ (22,668) |
Other comprehensive income (loss), net of tax: | ||
Adjustments to net unrealized gains (losses) on available-for-sale debt investments | 108 | 0 |
Adjustments to unrealized components of defined benefit pension plans | 11 | (132) |
Foreign currency translation | 475 | (2,224) |
Total other comprehensive income (loss) | 594 | (2,356) |
Comprehensive income (loss) | 65,091 | (25,024) |
Comprehensive income attributable to non-controlling interests | (608) | (211) |
Comprehensive income (loss) attributable to Amkor | $ 64,483 | $ (25,235) |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 941,447 | $ 894,948 |
Restricted cash | 610 | 610 |
Short-term investments (amortized cost of $58,139 in 2020) | 58,263 | 6,348 |
Accounts receivable, net of allowances | 880,629 | 850,753 |
Inventories | 238,201 | 220,602 |
Other current assets | 34,553 | 28,272 |
Total current assets | 2,153,703 | 2,001,533 |
Property, plant and equipment, net | 2,367,746 | 2,404,850 |
Operating lease right of use assets | 147,985 | 148,549 |
Goodwill | 26,235 | 25,976 |
Restricted cash | 3,267 | 2,974 |
Other assets | 112,701 | 111,733 |
Total assets | 4,811,637 | 4,695,615 |
Current liabilities: | ||
Short-term borrowings and current portion of long-term debt | 141,521 | 144,479 |
Trade accounts payable | 562,633 | 571,054 |
Capital expenditures payable | 107,131 | 77,044 |
Accrued expenses | 236,464 | 267,226 |
Total current liabilities | 1,047,749 | 1,059,803 |
Long-term debt | 1,371,501 | 1,305,755 |
Pension and severance obligations | 178,084 | 176,971 |
Long-term operating lease liabilities | 89,733 | 91,107 |
Other non-current liabilities | 65,945 | 71,740 |
Total liabilities | 2,753,012 | 2,705,376 |
Commitments and contingencies (Note 14) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value, 10,000 shares authorized, designated Series A, none issued | 0 | 0 |
Common stock, $0.001 par value, 500,000 shares authorized; 287,093 and 286,877 shares issued; and 241,016 and 240,805 shares outstanding in 2020 and 2019, respectively | 287 | 287 |
Additional paid-in capital | 1,931,088 | 1,927,739 |
Retained earnings | 297,966 | 234,077 |
Accumulated other comprehensive income (loss) | 19,709 | 19,115 |
Treasury stock, at cost, 46,077 and 46,072 shares, in 2020 and 2019, respectively | (217,533) | (217,479) |
Total Amkor stockholders’ equity | 2,031,517 | 1,963,739 |
Non-controlling interests in subsidiaries | 27,108 | 26,500 |
Total equity | 2,058,625 | 1,990,239 |
Total liabilities and equity | $ 4,811,637 | $ 4,695,615 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Short term investments amortized cost | $ 58,139 | |
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 | 287,093,000 | 286,877,000 |
Common stock, shares outstanding | 241,016,000 | 240,805,000 |
Treasury stock, shares | 46,077,000 | 46,072,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Total Amkor Stockholders' Equity | Common Stock | Additional Paid- In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Noncontrolling Interest in Subsidiaries |
Balance at beginning of period, shares at Dec. 31, 2018 | 285,352 | |||||||
Balance at beginning of period, shares at Dec. 31, 2018 | (45,967) | |||||||
Balance at beginning of period at Dec. 31, 2018 | $ 1,855,900 | $ 1,830,540 | $ 285 | $ 1,909,425 | $ 113,189 | $ 23,812 | $ (216,171) | $ 25,360 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (22,668) | (22,879) | (22,879) | 211 | ||||
Other comprehensive income (loss) | (2,356) | (2,356) | (2,356) | |||||
Treasury stock acquired through surrender of shares for tax withholding, shares | (5) | |||||||
Treasury stock acquired through surrender of shares for tax withholding | (48) | (48) | $ (48) | |||||
Issuance of stock through share-based compensation plans, shares | 78 | |||||||
Issuance of stock through share-based compensation plans | 286 | 286 | $ 0 | 286 | ||||
Share-based compensation | 1,468 | 1,468 | 1,468 | |||||
Balance at end of period, shares at Mar. 31, 2019 | 285,430 | |||||||
Balance at end of period, shares at Mar. 31, 2019 | (45,972) | |||||||
Balance at end of period at Mar. 31, 2019 | $ 1,832,582 | 1,807,011 | $ 285 | 1,911,179 | 90,310 | 21,456 | $ (216,219) | 25,571 |
Balance at beginning of period, shares at Dec. 31, 2019 | 286,877 | 286,877 | ||||||
Balance at beginning of period, shares at Dec. 31, 2019 | (46,072) | (46,072) | ||||||
Balance at beginning of period at Dec. 31, 2019 | $ 1,990,239 | 1,963,739 | $ 287 | 1,927,739 | 234,077 | 19,115 | $ (217,479) | 26,500 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 64,497 | 63,889 | 63,889 | 608 | ||||
Other comprehensive income (loss) | 594 | 594 | 594 | |||||
Treasury stock acquired through surrender of shares for tax withholding, shares | (5) | |||||||
Treasury stock acquired through surrender of shares for tax withholding | (54) | (54) | $ (54) | |||||
Issuance of stock through share-based compensation plans, shares | 216 | |||||||
Issuance of stock through share-based compensation plans | 1,519 | 1,519 | 1,519 | |||||
Share-based compensation | $ 1,830 | 1,830 | 1,830 | |||||
Balance at end of period, shares at Mar. 31, 2020 | 287,093 | 287,093 | ||||||
Balance at end of period, shares at Mar. 31, 2020 | (46,077) | (46,077) | ||||||
Balance at end of period at Mar. 31, 2020 | $ 2,058,625 | $ 2,031,517 | $ 287 | $ 1,931,088 | $ 297,966 | $ 19,709 | $ (217,533) | $ 27,108 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 64,497 | $ (22,668) |
Depreciation and amortization | 123,657 | 135,835 |
Other operating activities and non-cash items | 8,287 | 15,928 |
Changes in assets and liabilities | (99,852) | (77,038) |
Net cash provided by operating activities | 96,589 | 52,057 |
Cash flows from investing activities: | ||
Payments for property, plant and equipment | (55,888) | (203,216) |
Proceeds from sale of property, plant and equipment | 1,887 | 180 |
Proceeds from insurance recovery for property, plant and equipment | 0 | 1,538 |
Payments for short-term investments | (55,754) | 0 |
Other investing activities | 5,163 | (569) |
Net cash used in investing activities | (104,592) | (202,067) |
Cash flows from financing activities: | ||
Proceeds from revolving credit facilities | 201,000 | 0 |
Proceeds from short-term debt | 14,086 | 29,781 |
Payments of short-term debt | (9,409) | (10,588) |
Proceeds from issuance of long-term debt | 24,000 | 572,375 |
Payments of long-term debt | (172,336) | (63,636) |
Payments of finance lease obligations | (2,355) | (1,376) |
Other financing activities | 109 | (2,848) |
Net cash provided by financing activities | 55,095 | 523,708 |
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash | (300) | (829) |
Net increase in cash, cash equivalents and restricted cash | 46,792 | 372,869 |
Cash, cash equivalents and restricted cash, beginning of period | 898,532 | 688,051 |
Cash, cash equivalents and restricted cash, end of period | 945,324 | 1,060,920 |
Non-cash investing and financing activities: | ||
Property, plant and equipment included in capital expenditures payable | $ 107,344 | $ 124,547 |
Interim Financial Statements
Interim Financial Statements | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 , and for the three months ended March 31, 2020 and 2019 , are unaudited, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). The December 31, 2019 Consolidated Balance Sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S.”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. In our opinion, these financial statements include all adjustments (consisting only of normal recurring adjustments) necessary for the fair statement of the results for the interim periods. These financial statements should be read in conjunction with the financial statements included in our Annual Report for the year ended December 31, 2019 , filed on Form 10-K with the SEC on February 19, 2020. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for the full year. Unless the context otherwise requires, all references to “Amkor,” “we,” “us,” “our” or the “company” are to Amkor Technology, Inc. and our subsidiaries. Certain prior year amounts have been reclassified to conform to current year presentation. Use of Estimates. The Consolidated Financial Statements have been prepared in conformity with U.S. GAAP, using management’s best estimates and judgments where appropriate. These estimates and judgments affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ materially from these estimates and judgments, including the impact of Covid-19 and any worsening of the global business and economic environment. Goodwill. The balance of goodwill in our Consolidated Balance Sheets reflects adjustments for foreign currency translation. Unbilled Receivables . Total unbilled receivables as of March 31, 2020 and December 31, 2019 were $131.3 million and $125.4 million , respectively. |
Net Sales by Product Group and
Net Sales by Product Group and End Market | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Net Sales by Product Group and End Market | Net Sales by Product Group and End Market Net sales by product group consist of the following: For the Three Months Ended March 31, 2020 2019 (In thousands) Advanced products (1) $ 705,158 $ 422,446 Mainstream products (2) 447,458 472,518 Total net sales $ 1,152,616 $ 894,964 (1) Advanced products include flip chip and wafer-level processing and related test services. (2) Mainstream products include wirebond packaging and related test services. Net sales by end market consist of the following : For the Three Months Ended March 31, 2020 2019 Communications (handheld devices, smartphones, tablets) 38 % 38 % Consumer (connected home, set-top boxes, televisions, visual imaging, wearables) 24 % 14 % Automotive, industrial and other (driver assist, infotainment, performance, safety) 23 % 28 % Computing (datacenter, infrastructure, PC/laptop, storage) 15 % 20 % Total net sales 100 % 100 % |
Other Income and Expense
Other Income and Expense | 3 Months Ended |
Mar. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Other Income and Expense | Other Income and Expense Other income and expense consists of the following: For the Three Months Ended March 31, 2020 2019 (In thousands) Interest income $ (2,258 ) $ (2,064 ) Foreign currency (gain) loss, net (229 ) (2,013 ) Loss on debt retirement 428 — Other (256 ) (488 ) Other (income) expense, net $ (2,315 ) $ (4,565 ) |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense of $4.8 million for the three months ended March 31, 2020 reflects income taxes, foreign withholding taxes and minimum taxes. ASC 740 generally requires we provide for income taxes during interim periods based on the estimated annual effective tax rate (“AETR”) for the full year. For the three months ended March 31, 2020, we have excluded a jurisdiction from the AETR calculation and used a discrete method to calculate the income tax provision for that jurisdiction. We believe inclusion of this jurisdiction in the AETR calculation is impractical at this time given that normal deviations in the projected pre-tax net income (loss) would result in a disproportionate and unreliable annual effective tax rate under the AETR method. We monitor on an ongoing basis our ability to utilize our deferred tax assets and whether there is a need for a related valuation allowance. In evaluating our ability to recover our deferred tax assets in the jurisdictions from which they arise, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies and results of recent operations. We maintain a valuation allowance on certain U.S. and foreign deferred tax assets. Such valuation allowances are released as the related tax benefits are realized or when sufficient evidence exists to conclude that it is more likely than not that the deferred tax assets will be realized. Unrecognized tax benefits represent reserves for potential tax deficiencies or reductions in tax benefits that could result from federal, state or foreign tax audits. Gross unrecognized tax benefits decreased from $26.2 million at December 31, 2019 to $23.1 million as of March 31, 2020 , primarily due to the lapse of statutes of limitations in foreign jurisdictions. All of our unrecognized tax benefits would reduce our effective tax rate if recognized. Our unrecognized tax benefits are subject to change for effective settlement of examinations, changes in the recognition threshold of tax positions, the expiration of statutes of limitations and other factors. We have tax returns that are open to examination in various jurisdictions for tax years 2012-2019. The open years contain matters that could be subject to differing interpretations of applicable tax laws and regulations related to the amount and/or timing of income, deductions and tax credits. There can be no assurance that the outcome of the examinations will be favorable. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
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: For the Three Months Ended March 31, 2020 2019 (In thousands, except per share data) Net income (loss) attributable to Amkor common stockholders $ 63,889 $ (22,879 ) Weighted-average number of common shares outstanding - basic 240,919 239,414 Effect of dilutive securities: Stock options and restricted share awards 414 — Weighted-average number of common shares outstanding - diluted 241,333 239,414 Net income (loss) attributable to Amkor per common share: Basic $ 0.27 $ (0.10 ) Diluted 0.26 (0.10 ) The following table summarizes the potential shares of common stock that were excluded from diluted EPS because the effect of including these potential shares was anti-dilutive: For the Three Months Ended March 31, 2020 2019 (In thousands) Stock options and restricted share awards 4,321 7,123 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss), net of tax, consist of the following: Unrealized Gains (Losses) on Available-for-Sale Debt Investments Defined Benefit Pension (1) Foreign Currency Translation Total (In thousands) Accumulated other comprehensive income (loss) at December 31, 2019 $ — $ (4,820 ) $ 23,935 $ 19,115 Other comprehensive income (loss) before reclassifications 108 — 475 583 Amounts reclassified from accumulated other comprehensive income (loss) — 11 — 11 Other comprehensive income (loss) 108 11 475 594 Accumulated other comprehensive income (loss) at March 31, 2020 $ 108 $ (4,809 ) $ 24,410 $ 19,709 Defined Benefit Pension (1) Foreign Currency Translation Total (In thousands) Accumulated other comprehensive income (loss) at December 31, 2018 $ 2,659 $ 21,153 $ 23,812 Other comprehensive income (loss) before reclassifications — (2,224 ) $ (2,224 ) Amounts reclassified from accumulated other comprehensive income (loss) (132 ) — $ (132 ) Other comprehensive income (loss) (132 ) (2,224 ) (2,356 ) Accumulated other comprehensive income (loss) at March 31, 2019 $ 2,527 $ 18,929 $ 21,456 (1) Amounts reclassified out of accumulated other comprehensive income (loss) are included as a component of net periodic pension cost ( Note 12 ) or other (income) expense, net. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments We classify our short-term investments in fixed income securities as available-for-sale debt investments, except for one foreign government security classified as held-to-maturity. The held-to-maturity debt security matured in the first quarter ended March 31, 2020 . All of our available-for-sale debt investments as of March 31, 2020 will be available to fund current operations and are recorded at fair value ( Note 13 ). Unrealized gains and losses on our available-for-sale debt investments are included as a separate component of accumulated other comprehensive income (loss), net of tax. Realized gains and losses on our available-for-sale debt investments and declines in value judged to be an impairment are included in other (income) expense, net. The cost of short-term investments matured or sold is based on the average cost method. In determining if and when a decline in value below the adjusted cost of our available-for-sale debt investments is an impairment, we evaluate on an ongoing basis the market conditions, trends of earnings, financial condition, credit ratings, any underlying collateral and other key measures for our short-term investments. An impairment is considered if (i) we have the intent to sell the security, (ii) it is more likely than not that we will be required to sell the security before recovery of the entire amortized cost basis or (iii) we do not expect to recover the entire amortized cost basis of the security. If impairment is considered on condition (i) or (ii) above, the entire difference between the amortized cost and the fair value of the debt security is recognized in earnings. If an impairment is considered based on condition (iii), the amount representing credit losses will be recognized in earnings and as an allowance for credit losses, and the amount relating to all other factors will be recognized in other comprehensive income. The following table summarizes our cash equivalents and available-for-sale debt investments: March 31, 2020 Fair Value Level Amortized Cost Gross Unrealized Gains Gross Unrealized Losses (1) Total Fair Value Level 1 Level 2 (In thousands) Cash equivalents $ 351,965 $ 16 $ (11 ) $ 351,970 $ 314,676 $ 37,294 Short-term investments: Asset-backed securities 6,064 19 (5 ) 6,078 — 6,078 Commercial paper 1,986 — — 1,986 — 1,986 Corporate bonds 25,297 111 (42 ) 25,366 — 25,366 Municipal bonds 2,762 7 — 2,769 — 2,769 U.S. government agency bonds 7,482 12 (1 ) 7,493 — 7,493 U.S. government bonds 13,991 23 — 14,014 14,014 — Variable rate demand notes 557 — — 557 — 557 Total (2) (3) $ 410,104 $ 188 $ (59 ) $ 410,233 $ 328,690 $ 81,543 (1) All unrealized losses have been in a continuous loss position for less than 12 months. We do not intend to sell the investments in an unrealized loss position, and it is not more likely than not that we will be required to sell these investments before recovery of their amortized cost bases. (2) We have available-for-sale debt investments of $ 6.1 million with contractual maturities from 1 year to 5 years . Expected maturities can differ from contractual maturities because the issuers may have the right to call or prepay obligations without call or prepayment penalties, and we view our available-for-sale debt investments as available for current operations. (3) In April 2020, we increased our available-for-sale debt investments by $130.0 million . The following table summarizes our debt investments as of December 31, 2019: December 31, 2019 (In thousands) Cash equivalent money market funds (Level 1) (1) $ 384,474 Short-term investment government bond (Level 2) (2) 6,348 (1) The cash equivalent money market funds (Level 1) at December 31, 2019 have been corrected to include $286.7 million of cash equivalents that were excluded in previously reported amounts. There was no change to total cash and cash equivalents reported on our consolidated balance sheet. We determined this was immaterial to the prior period but have presented the balance as revised for comparability. (2) The fair market value of the security is $6.3 million |
Factoring of Accounts Receivabl
Factoring of Accounts Receivable | 3 Months Ended |
Mar. 31, 2020 | |
Factoring of Accounts Receivable [Abstract] | |
Factoring of Accounts Receivable | Factoring of Accounts Receivable For certain accounts receivable, 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 months ended March 31, 2020 and 2019, we sold receivables totaling $170.5 million and $155.7 million , net of discounts and fees of $1.0 million and $1.2 million , respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant And Equipment | Property, Plant and Equipment Property, plant and equipment consist of the following: March 31, December 31, 2019 (In thousands) Land $ 220,076 $ 219,785 Buildings and improvements 1,575,352 1,571,653 Machinery and equipment 5,335,424 5,303,729 Finance lease assets 34,401 34,158 Software and computer equipment 222,459 220,264 Furniture, fixtures and other equipment 19,844 19,740 Construction in progress 24,618 12,593 Total property, plant and equipment 7,432,174 7,381,922 Accumulated depreciation and amortization (5,064,428 ) (4,977,072 ) Total property, plant and equipment, net $ 2,367,746 $ 2,404,850 The following table summarizes our depreciation expense: For the Three Months Ended March 31, 2020 2019 (In thousands) Depreciation expense $ 123,501 $ 135,493 |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consist of the following: March 31, December 31, (In thousands) Payroll and benefits $ 90,561 $ 115,693 Short-term operating lease liabilities 42,082 40,972 Income taxes payable 18,587 11,661 Deferred revenue and customer advances 13,881 16,177 Accrued severance plan obligations 11,192 13,408 Short-term finance lease liabilities 9,168 9,121 Accrued interest 3,629 11,638 Other accrued expenses 47,364 48,556 Total accrued expenses $ 236,464 $ 267,226 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Following is a summary of short-term borrowings and long-term debt: March 31, December 31, (In thousands) Debt of Amkor Technology, Inc.: Senior notes: 6.625% Senior notes, due September 2027 $ 525,000 $ 525,000 Debt of subsidiaries: Amkor Technology Korea, Inc. (8): $30 million revolving credit facility, LIBOR plus the applicable bank rate (1) 15,000 — Term loan, fund floating rate plus 1.60%, due June 2020 (2) — 24,000 Term loan, applicable bank rate plus 2.03%, due July 2022 40,000 40,000 Term loan, applicable bank rate plus 2.03%, due September 2022 (3) 60,000 60,000 Term loan, LIBOR plus 2.56%, due December 2023 (4) 80,000 200,000 Term loan, applicable bank rate plus 1.98%, due December 2028 (2) 90,000 66,000 Amkor Technology Japan, Inc.: Short-term term loans, variable rate (5) 12,005 7,071 Term loan, fixed rate at 0.86%, due June 2022 20,923 23,018 Term loan, fixed rate at 0.60%, due July 2022 4,649 5,064 Term loan, fixed rate at 1.30%, due July 2023 169,239 179,541 Term loan, fixed rate at 1.35%, due December 2024 (4) 251,767 262,407 Amkor Assembly & Test (Shanghai) Co., Ltd.: Term loan, LIBOR plus 1.60%, due March 2022 29,000 29,000 Term loan, LIBOR Plus 1.40%, due March 2022 19,250 19,250 Other: $250 million senior secured revolving credit facility, LIBOR plus 1.25%-1.75%, due July 2023 (Singapore) (6) 150,000 — Revolving credit facility, TAIFX plus the applicable bank rate, due December 2024 (Taiwan) (7) 56,000 20,000 1,522,833 1,460,351 Less: Unamortized discount and deferred debt costs, net (9,811 ) (10,117 ) Less: Short-term borrowings and current portion of long-term debt (141,521 ) (144,479 ) Long-term debt $ 1,371,501 $ 1,305,755 (1) In October 2019, we renewed our revolving credit facility agreement with availability of $30.0 million . Interest is payable monthly in arrears ( 2.97% as of March 31, 2020 ). In March 2020, we borrowed $15.0 million with the principal due in September 2020. As of March 31, 2020 , $15.0 million was available to be drawn. In April 2020, we borrowed the remaining $15.0 million with the principal due in October 2020. (2) 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 in June 2020. Interest is payable quarterly in arrears, at a fund floating rate plus 1.60% . During the three months ended March 31, 2020 , we repaid the full $24.0 million outstanding on this term loan using the proceeds from our term loan due December 2028. (3) In July 2019, we entered into a $140.0 million term loan due September 2022. Principal is payable at maturity and interest is payable quarterly in arrears ( 3.59% as of March 31, 2020 ). As of March 31, 2020 , $80.0 million was available to be drawn. In April 2020, we borrowed an additional $40.0 million . (4) In January 2020, we used proceeds from our term loan due December 2024 to repay $120.0 million of our term loan due December 2023. (5) We entered into various short-term term loans which mature semiannually. Principal and interest are payable in monthly installments. Interest as of March 31, 2020 is at TIBOR plus 0.10% to 0.20% (weighted average of 0.21% as of March 31, 2020 ). As of March 31, 2020 , $6.5 million was available to be drawn. (6) In July 2018, our subsidiary, Amkor Technology Singapore Holding Pte, Ltd., entered into a $250.0 million senior secured revolving credit facility, which is guaranteed by Amkor Technology, Inc. The availability for our revolving credit facility is based on the amount of eligible accounts receivable. Principal is payable at maturity. Interest is payable monthly at LIBOR plus 1.25% to 1.75% ( 2.85% as of March 31, 2020 ). As of March 31, 2020 , $100.0 million was available to be drawn. (7) In December 2019, we entered into a $56.0 million revolving credit facility. Interest is payable monthly at TAIFX plus the applicable bank rate ( 3.41% as of March 31, 2020 ). In December 2019, we borrowed $20.0 million with the principal payable at maturity of the facility in December 2024. In the first quarter of 2020, we borrowed the remaining $36.0 million . In April 2020, we repaid $36.0 million of the revolving credit facility and immediately borrowed $36.0 million under the same agreement at a lower interest rate, with the principal payable in December 2024, based on incurring a certain level of qualified eligible transactions. (8) In April 2020, we entered into a term loan agreement pursuant to which we may borrow up to KRW ₩150.0 billion (approximately US $123 million ). Principal is payable at maturity and the variable interest is payable monthly. We immediately borrowed $123.0 million at an interest rate of 2.87% . Certain of our foreign debt is collateralized by the land, buildings, equipment and accounts receivable in the respective locations. The carrying value of all collateral exceeds the carrying amount of the collateralized 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. and Amkor Technology Singapore Holding Pte, Ltd. guarantee 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 March 31, 2020 . |
Pension Plans
Pension Plans | 3 Months Ended |
Mar. 31, 2020 | |
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: For the Three Months Ended March 31, 2020 2019 (In thousands) Service cost $ 7,536 $ 7,977 Interest cost 1,247 1,324 Expected return on plan assets (1,374 ) (1,618 ) Recognized actuarial gain 14 (94 ) Net periodic pension cost $ 7,423 $ 7,589 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: For the Three Months Ended March 31, 2020 2019 (In thousands) Defined contribution expense $ 4,816 $ 4,405 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
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 restricted cash money market funds and short-term investments, including investments classified as cash equivalents. 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. Short-term investments, including money market funds ( Note 7 ), are valued as follows: • Level 1: using quoted market prices in active markets for identical assets. • Level 2: using quoted market prices for similar instruments or non-binding market prices that are corroborated by observable market data. We use inputs such as actual trade data, benchmark yields, broker/dealer quotes, and other similar data, which are obtained from quoted market prices, and independent pricing vendors to determine the fair value of these assets and liabilities. Our derivative financial instruments are valued using quoted market prices for similar assets. Counterparties to these derivative contracts are highly rated financial institutions. 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: March 31, 2020 December 31, 2019 Fair Value Carrying Value Fair Value Carrying Value (In thousands) Senior notes (Level 1) $ 488,701 $ 519,355 $ 576,875 $ 519,211 Revolving credit facilities and term loans (Level 2) 980,901 993,667 940,756 931,023 Total debt $ 1,469,602 $ 1,513,022 $ 1,517,631 $ 1,450,234 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
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
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. |
Restructuring and Other Exit Ac
Restructuring and Other Exit Activities | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Exit Activities | Restructuring and Other Exit Activities As part of our ongoing efforts to improve our manufacturing operations and manage costs, we regularly evaluate our staffing levels and facility requirements compared to business needs. The following table summarizes our exit activities associated with these efforts. “Charges” represents the initial charge related to the exit activity. “Cash Payments” consists of the utilization of “Charges.” “Non-cash Amounts” consists of translation adjustments. Japan Consolidation Activities During the three months ended March 31, 2020 , we recorded restructuring charges of $1.9 million associated with our Japan footprint consolidation efforts. We recorded these charges to selling, general and administrative expenses within the Consolidated Statements of Income. All amounts accrued at March 31, 2020 are classified as current liabilities. We expect to complete our restructuring actions in the first half of fiscal 2021. Facility Costs (1) Employee Other Exit Costs (2) Total (In thousands) Accrual at December 31, 2019 $ 2,196 $ 271 $ 174 $ 2,641 Charges 1,310 30 579 1,919 Cash Payments (2,482 ) (300 ) (660 ) (3,442 ) Non-cash Amounts (12 ) (1 ) (2 ) (15 ) Accrual at March 31, 2020 $ 1,012 $ — $ 91 $ 1,103 Total cumulative charges incurred to date $ 5,809 $ 2,740 $ 1,325 $ 9,874 Estimated additional charges to be incurred $ 11,000 $ 5,000 $ 3,000 $ 19,000 (1) Facility costs primarily consist of equipment relocation costs directly resulting from the restructuring actions. (2) Other exit costs primarily consist of employee relocation and training costs directly resulting from the restructuring actions. |
Interim Financial Statements (P
Interim Financial Statements (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation. The Consolidated Financial Statements and related disclosures as of March 31, 2020 , and for the three months ended March 31, 2020 and 2019 , are unaudited, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). The December 31, 2019 Consolidated Balance Sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S.”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. In our opinion, these financial statements include all adjustments (consisting only of normal recurring adjustments) necessary for the fair statement of the results for the interim periods. These financial statements should be read in conjunction with the financial statements included in our Annual Report for the year ended December 31, 2019 , filed on Form 10-K with the SEC on February 19, 2020. The results of operations for the three months ended March 31, 2020 |
Reclassifications | Certain prior year amounts have been reclassified to conform to current year presentation. |
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, including the impact of Covid-19 and any worsening of the global business and economic environment. |
Goodwill | Goodwill. |
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. We maintain a valuation allowance on certain U.S. and foreign deferred tax assets. Such valuation allowances are released as the related tax benefits are realized or when sufficient evidence exists to conclude that it is more likely than not that the deferred tax assets will be realized. |
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. |
Net Sales by Product Group an_2
Net Sales by Product Group and End Market (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Net sales by product group and end market | Net sales by product group consist of the following: For the Three Months Ended March 31, 2020 2019 (In thousands) Advanced products (1) $ 705,158 $ 422,446 Mainstream products (2) 447,458 472,518 Total net sales $ 1,152,616 $ 894,964 (1) Advanced products include flip chip and wafer-level processing and related test services. (2) Mainstream products include wirebond packaging and related test services. Net sales by end market consist of the following : For the Three Months Ended March 31, 2020 2019 Communications (handheld devices, smartphones, tablets) 38 % 38 % Consumer (connected home, set-top boxes, televisions, visual imaging, wearables) 24 % 14 % Automotive, industrial and other (driver assist, infotainment, performance, safety) 23 % 28 % Computing (datacenter, infrastructure, PC/laptop, storage) 15 % 20 % Total net sales 100 % 100 % |
Other Income and Expense (Table
Other Income and Expense (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of other income and expense | Other income and expense consists of the following: For the Three Months Ended March 31, 2020 2019 (In thousands) Interest income $ (2,258 ) $ (2,064 ) Foreign currency (gain) loss, net (229 ) (2,013 ) Loss on debt retirement 428 — Other (256 ) (488 ) Other (income) expense, net $ (2,315 ) $ (4,565 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings per share | The following table summarizes the computation of basic and diluted EPS: For the Three Months Ended March 31, 2020 2019 (In thousands, except per share data) Net income (loss) attributable to Amkor common stockholders $ 63,889 $ (22,879 ) Weighted-average number of common shares outstanding - basic 240,919 239,414 Effect of dilutive securities: Stock options and restricted share awards 414 — Weighted-average number of common shares outstanding - diluted 241,333 239,414 Net income (loss) attributable to Amkor per common share: Basic $ 0.27 $ (0.10 ) Diluted 0.26 (0.10 ) |
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: For the Three Months Ended March 31, 2020 2019 (In thousands) Stock options and restricted share awards 4,321 7,123 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Changes in accumulated other comprehensive income (loss), net of tax | Changes in accumulated other comprehensive income (loss), net of tax, consist of the following: Unrealized Gains (Losses) on Available-for-Sale Debt Investments Defined Benefit Pension (1) Foreign Currency Translation Total (In thousands) Accumulated other comprehensive income (loss) at December 31, 2019 $ — $ (4,820 ) $ 23,935 $ 19,115 Other comprehensive income (loss) before reclassifications 108 — 475 583 Amounts reclassified from accumulated other comprehensive income (loss) — 11 — 11 Other comprehensive income (loss) 108 11 475 594 Accumulated other comprehensive income (loss) at March 31, 2020 $ 108 $ (4,809 ) $ 24,410 $ 19,709 Defined Benefit Pension (1) Foreign Currency Translation Total (In thousands) Accumulated other comprehensive income (loss) at December 31, 2018 $ 2,659 $ 21,153 $ 23,812 Other comprehensive income (loss) before reclassifications — (2,224 ) $ (2,224 ) Amounts reclassified from accumulated other comprehensive income (loss) (132 ) — $ (132 ) Other comprehensive income (loss) (132 ) (2,224 ) (2,356 ) Accumulated other comprehensive income (loss) at March 31, 2019 $ 2,527 $ 18,929 $ 21,456 (1) Amounts reclassified out of accumulated other comprehensive income (loss) are included as a component of net periodic pension cost ( Note 12 ) or other (income) expense, net. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Cash Equivalents and Available-for-Sale Debt Investments | The following table summarizes our cash equivalents and available-for-sale debt investments: March 31, 2020 Fair Value Level Amortized Cost Gross Unrealized Gains Gross Unrealized Losses (1) Total Fair Value Level 1 Level 2 (In thousands) Cash equivalents $ 351,965 $ 16 $ (11 ) $ 351,970 $ 314,676 $ 37,294 Short-term investments: Asset-backed securities 6,064 19 (5 ) 6,078 — 6,078 Commercial paper 1,986 — — 1,986 — 1,986 Corporate bonds 25,297 111 (42 ) 25,366 — 25,366 Municipal bonds 2,762 7 — 2,769 — 2,769 U.S. government agency bonds 7,482 12 (1 ) 7,493 — 7,493 U.S. government bonds 13,991 23 — 14,014 14,014 — Variable rate demand notes 557 — — 557 — 557 Total (2) (3) $ 410,104 $ 188 $ (59 ) $ 410,233 $ 328,690 $ 81,543 (1) All unrealized losses have been in a continuous loss position for less than 12 months. We do not intend to sell the investments in an unrealized loss position, and it is not more likely than not that we will be required to sell these investments before recovery of their amortized cost bases. (2) We have available-for-sale debt investments of $ 6.1 million with contractual maturities from 1 year to 5 years . Expected maturities can differ from contractual maturities because the issuers may have the right to call or prepay obligations without call or prepayment penalties, and we view our available-for-sale debt investments as available for current operations. (3) In April 2020, we increased our available-for-sale debt investments by $130.0 million |
Summary of Debt Securities Available-for-sale | The following table summarizes our cash equivalents and available-for-sale debt investments: March 31, 2020 Fair Value Level Amortized Cost Gross Unrealized Gains Gross Unrealized Losses (1) Total Fair Value Level 1 Level 2 (In thousands) Cash equivalents $ 351,965 $ 16 $ (11 ) $ 351,970 $ 314,676 $ 37,294 Short-term investments: Asset-backed securities 6,064 19 (5 ) 6,078 — 6,078 Commercial paper 1,986 — — 1,986 — 1,986 Corporate bonds 25,297 111 (42 ) 25,366 — 25,366 Municipal bonds 2,762 7 — 2,769 — 2,769 U.S. government agency bonds 7,482 12 (1 ) 7,493 — 7,493 U.S. government bonds 13,991 23 — 14,014 14,014 — Variable rate demand notes 557 — — 557 — 557 Total (2) (3) $ 410,104 $ 188 $ (59 ) $ 410,233 $ 328,690 $ 81,543 (1) All unrealized losses have been in a continuous loss position for less than 12 months. We do not intend to sell the investments in an unrealized loss position, and it is not more likely than not that we will be required to sell these investments before recovery of their amortized cost bases. (2) We have available-for-sale debt investments of $ 6.1 million with contractual maturities from 1 year to 5 years . Expected maturities can differ from contractual maturities because the issuers may have the right to call or prepay obligations without call or prepayment penalties, and we view our available-for-sale debt investments as available for current operations. (3) In April 2020, we increased our available-for-sale debt investments by $130.0 million |
Schedule of Cash and Cash Equivalents | The following table summarizes our cash equivalents and available-for-sale debt investments: March 31, 2020 Fair Value Level Amortized Cost Gross Unrealized Gains Gross Unrealized Losses (1) Total Fair Value Level 1 Level 2 (In thousands) Cash equivalents $ 351,965 $ 16 $ (11 ) $ 351,970 $ 314,676 $ 37,294 Short-term investments: Asset-backed securities 6,064 19 (5 ) 6,078 — 6,078 Commercial paper 1,986 — — 1,986 — 1,986 Corporate bonds 25,297 111 (42 ) 25,366 — 25,366 Municipal bonds 2,762 7 — 2,769 — 2,769 U.S. government agency bonds 7,482 12 (1 ) 7,493 — 7,493 U.S. government bonds 13,991 23 — 14,014 14,014 — Variable rate demand notes 557 — — 557 — 557 Total (2) (3) $ 410,104 $ 188 $ (59 ) $ 410,233 $ 328,690 $ 81,543 (1) All unrealized losses have been in a continuous loss position for less than 12 months. We do not intend to sell the investments in an unrealized loss position, and it is not more likely than not that we will be required to sell these investments before recovery of their amortized cost bases. (2) We have available-for-sale debt investments of $ 6.1 million with contractual maturities from 1 year to 5 years . Expected maturities can differ from contractual maturities because the issuers may have the right to call or prepay obligations without call or prepayment penalties, and we view our available-for-sale debt investments as available for current operations. (3) In April 2020, we increased our available-for-sale debt investments by $130.0 million |
Valuation of money market funds | The following table summarizes our debt investments as of December 31, 2019: December 31, 2019 (In thousands) Cash equivalent money market funds (Level 1) (1) $ 384,474 Short-term investment government bond (Level 2) (2) 6,348 (1) The cash equivalent money market funds (Level 1) at December 31, 2019 have been corrected to include $286.7 million of cash equivalents that were excluded in previously reported amounts. There was no change to total cash and cash equivalents reported on our consolidated balance sheet. We determined this was immaterial to the prior period but have presented the balance as revised for comparability. (2) The fair market value of the security is $6.3 million |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of property, plant and equipment and depreciation expense | Property, plant and equipment consist of the following: March 31, December 31, 2019 (In thousands) Land $ 220,076 $ 219,785 Buildings and improvements 1,575,352 1,571,653 Machinery and equipment 5,335,424 5,303,729 Finance lease assets 34,401 34,158 Software and computer equipment 222,459 220,264 Furniture, fixtures and other equipment 19,844 19,740 Construction in progress 24,618 12,593 Total property, plant and equipment 7,432,174 7,381,922 Accumulated depreciation and amortization (5,064,428 ) (4,977,072 ) Total property, plant and equipment, net $ 2,367,746 $ 2,404,850 The following table summarizes our depreciation expense: For the Three Months Ended March 31, 2020 2019 (In thousands) Depreciation expense $ 123,501 $ 135,493 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Payables and Accruals [Abstract] | |
Summary of accrued expenses | Accrued expenses consist of the following: March 31, December 31, (In thousands) Payroll and benefits $ 90,561 $ 115,693 Short-term operating lease liabilities 42,082 40,972 Income taxes payable 18,587 11,661 Deferred revenue and customer advances 13,881 16,177 Accrued severance plan obligations 11,192 13,408 Short-term finance lease liabilities 9,168 9,121 Accrued interest 3,629 11,638 Other accrued expenses 47,364 48,556 Total accrued expenses $ 236,464 $ 267,226 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Summary of short-term borrowings and long-term debt | Following is a summary of short-term borrowings and long-term debt: March 31, December 31, (In thousands) Debt of Amkor Technology, Inc.: Senior notes: 6.625% Senior notes, due September 2027 $ 525,000 $ 525,000 Debt of subsidiaries: Amkor Technology Korea, Inc. (8): $30 million revolving credit facility, LIBOR plus the applicable bank rate (1) 15,000 — Term loan, fund floating rate plus 1.60%, due June 2020 (2) — 24,000 Term loan, applicable bank rate plus 2.03%, due July 2022 40,000 40,000 Term loan, applicable bank rate plus 2.03%, due September 2022 (3) 60,000 60,000 Term loan, LIBOR plus 2.56%, due December 2023 (4) 80,000 200,000 Term loan, applicable bank rate plus 1.98%, due December 2028 (2) 90,000 66,000 Amkor Technology Japan, Inc.: Short-term term loans, variable rate (5) 12,005 7,071 Term loan, fixed rate at 0.86%, due June 2022 20,923 23,018 Term loan, fixed rate at 0.60%, due July 2022 4,649 5,064 Term loan, fixed rate at 1.30%, due July 2023 169,239 179,541 Term loan, fixed rate at 1.35%, due December 2024 (4) 251,767 262,407 Amkor Assembly & Test (Shanghai) Co., Ltd.: Term loan, LIBOR plus 1.60%, due March 2022 29,000 29,000 Term loan, LIBOR Plus 1.40%, due March 2022 19,250 19,250 Other: $250 million senior secured revolving credit facility, LIBOR plus 1.25%-1.75%, due July 2023 (Singapore) (6) 150,000 — Revolving credit facility, TAIFX plus the applicable bank rate, due December 2024 (Taiwan) (7) 56,000 20,000 1,522,833 1,460,351 Less: Unamortized discount and deferred debt costs, net (9,811 ) (10,117 ) Less: Short-term borrowings and current portion of long-term debt (141,521 ) (144,479 ) Long-term debt $ 1,371,501 $ 1,305,755 (1) In October 2019, we renewed our revolving credit facility agreement with availability of $30.0 million . Interest is payable monthly in arrears ( 2.97% as of March 31, 2020 ). In March 2020, we borrowed $15.0 million with the principal due in September 2020. As of March 31, 2020 , $15.0 million was available to be drawn. In April 2020, we borrowed the remaining $15.0 million with the principal due in October 2020. (2) 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 in June 2020. Interest is payable quarterly in arrears, at a fund floating rate plus 1.60% . During the three months ended March 31, 2020 , we repaid the full $24.0 million outstanding on this term loan using the proceeds from our term loan due December 2028. (3) In July 2019, we entered into a $140.0 million term loan due September 2022. Principal is payable at maturity and interest is payable quarterly in arrears ( 3.59% as of March 31, 2020 ). As of March 31, 2020 , $80.0 million was available to be drawn. In April 2020, we borrowed an additional $40.0 million . (4) In January 2020, we used proceeds from our term loan due December 2024 to repay $120.0 million of our term loan due December 2023. (5) We entered into various short-term term loans which mature semiannually. Principal and interest are payable in monthly installments. Interest as of March 31, 2020 is at TIBOR plus 0.10% to 0.20% (weighted average of 0.21% as of March 31, 2020 ). As of March 31, 2020 , $6.5 million was available to be drawn. (6) In July 2018, our subsidiary, Amkor Technology Singapore Holding Pte, Ltd., entered into a $250.0 million senior secured revolving credit facility, which is guaranteed by Amkor Technology, Inc. The availability for our revolving credit facility is based on the amount of eligible accounts receivable. Principal is payable at maturity. Interest is payable monthly at LIBOR plus 1.25% to 1.75% ( 2.85% as of March 31, 2020 ). As of March 31, 2020 , $100.0 million was available to be drawn. (7) In December 2019, we entered into a $56.0 million revolving credit facility. Interest is payable monthly at TAIFX plus the applicable bank rate ( 3.41% as of March 31, 2020 ). In December 2019, we borrowed $20.0 million with the principal payable at maturity of the facility in December 2024. In the first quarter of 2020, we borrowed the remaining $36.0 million . In April 2020, we repaid $36.0 million of the revolving credit facility and immediately borrowed $36.0 million under the same agreement at a lower interest rate, with the principal payable in December 2024, based on incurring a certain level of qualified eligible transactions. (8) In April 2020, we entered into a term loan agreement pursuant to which we may borrow up to KRW ₩150.0 billion (approximately US $123 million ). Principal is payable at maturity and the variable interest is payable monthly. We immediately borrowed $123.0 million at an interest rate of 2.87% |
Pension Plans (Tables)
Pension Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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: For the Three Months Ended March 31, 2020 2019 (In thousands) Service cost $ 7,536 $ 7,977 Interest cost 1,247 1,324 Expected return on plan assets (1,374 ) (1,618 ) Recognized actuarial gain 14 (94 ) Net periodic pension cost $ 7,423 $ 7,589 |
Summary of defined contribution expense | The following table summarizes our defined contribution expense: For the Three Months Ended March 31, 2020 2019 (In thousands) Defined contribution expense $ 4,816 $ 4,405 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
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: March 31, 2020 December 31, 2019 Fair Value Carrying Value Fair Value Carrying Value (In thousands) Senior notes (Level 1) $ 488,701 $ 519,355 $ 576,875 $ 519,211 Revolving credit facilities and term loans (Level 2) 980,901 993,667 940,756 931,023 Total debt $ 1,469,602 $ 1,513,022 $ 1,517,631 $ 1,450,234 |
Restructuring and Other Exit _2
Restructuring and Other Exit Activities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Summary of Exit Activities | Facility Costs (1) Employee Other Exit Costs (2) Total (In thousands) Accrual at December 31, 2019 $ 2,196 $ 271 $ 174 $ 2,641 Charges 1,310 30 579 1,919 Cash Payments (2,482 ) (300 ) (660 ) (3,442 ) Non-cash Amounts (12 ) (1 ) (2 ) (15 ) Accrual at March 31, 2020 $ 1,012 $ — $ 91 $ 1,103 Total cumulative charges incurred to date $ 5,809 $ 2,740 $ 1,325 $ 9,874 Estimated additional charges to be incurred $ 11,000 $ 5,000 $ 3,000 $ 19,000 (1) Facility costs primarily consist of equipment relocation costs directly resulting from the restructuring actions. (2) Other exit costs primarily consist of employee relocation and training costs directly resulting from the restructuring actions. |
Interim Financial Statements (D
Interim Financial Statements (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Unbilled receivables | $ 131.3 | $ 125.4 |
Net Sales by Product Group an_3
Net Sales by Product Group and End Market - Product Group (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Net sales by product group | $ 1,152,616 | $ 894,964 |
Advanced products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales by product group | 705,158 | 422,446 |
Mainstream products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales by product group | $ 447,458 | $ 472,518 |
Net Sales by Product Group an_4
Net Sales by Product Group and End Market - End Market (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Total net sales | 100.00% | 100.00% |
Revenue from Contract with Customer | End Market | Communications (handheld devices, smartphones, tablets) | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 38.00% | 38.00% |
Revenue from Contract with Customer | End Market | Consumer (connected home, set-top boxes, televisions, visual imaging, wearables) | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 24.00% | 14.00% |
Revenue from Contract with Customer | End Market | Automotive, industrial and other (driver assist, infotainment, performance, safety) | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 23.00% | 28.00% |
Revenue from Contract with Customer | End Market | Computing (datacenter, infrastructure, PC/laptop, storage) | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 15.00% | 20.00% |
Other Income and Expense (Detai
Other Income and Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | ||
Interest income | $ (2,258) | $ (2,064) |
Foreign currency (gain) loss, net | (229) | (2,013) |
Loss on debt retirement | 428 | 0 |
Other | (256) | (488) |
Other (income) expense, net | $ (2,315) | $ (4,565) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 4,846 | $ 21,380 | |
Gross unrecognized tax benefits | $ 23,100 | $ 26,200 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net income (loss) attributable to Amkor common stockholders | $ 63,889 | $ (22,879) |
Weighted-average number of common shares outstanding - basic | 240,919 | 239,414 |
Effect of dilutive securities: | ||
Stock options and restricted share awards (in shares) | 414 | 0 |
Weighted-average number of common shares outstanding - diluted | 241,333 | 239,414 |
Net income (loss) attributable to Amkor per common share: | ||
Basic (in dollars per share) | $ 0.27 | $ (0.10) |
Diluted (in dollars per share) | $ 0.26 | $ (0.10) |
Earnings Per Share - Potential
Earnings Per Share - Potential Shares of Common Stock Excluded from Diluted EPS (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Stock options and restricted share awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options and restricted share awards | 4,321 | 7,123 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | $ 1,990,239 | $ 1,855,900 |
Other comprehensive income (loss) before reclassifications | 583 | (2,224) |
Amounts reclassified from accumulated other comprehensive income (loss) | 11 | (132) |
Total other comprehensive income (loss) | 594 | (2,356) |
Balance at end of period | 2,058,625 | 1,832,582 |
Unrealized Gains (Losses) on Short-term Investments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | 0 | |
Other comprehensive income (loss) before reclassifications | 108 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | |
Total other comprehensive income (loss) | 108 | |
Balance at end of period | 108 | |
Defined Benefit Pension | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (4,820) | 2,659 |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 11 | (132) |
Total other comprehensive income (loss) | 11 | (132) |
Balance at end of period | (4,809) | 2,527 |
Foreign Currency Translation | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | 23,935 | 21,153 |
Other comprehensive income (loss) before reclassifications | 475 | (2,224) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 |
Total other comprehensive income (loss) | 475 | (2,224) |
Balance at end of period | 24,410 | 18,929 |
Total | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | 19,115 | 23,812 |
Total other comprehensive income (loss) | 594 | (2,356) |
Balance at end of period | $ 19,709 | $ 21,456 |
Investments - Summary of Short
Investments - Summary of Short term Investments (Details) - USD ($) $ in Thousands | 1 Months Ended | |
Apr. 30, 2020 | Mar. 31, 2020 | |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 410,104 | |
Gross Unrealized Gains | 188 | |
Gross Unrealized Losses | (59) | |
Total Fair Value | 410,233 | |
Available-for-sale investments | 6,100 | |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 6,064 | |
Gross Unrealized Gains | 19 | |
Gross Unrealized Losses | (5) | |
Total Fair Value | 6,078 | |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,762 | |
Gross Unrealized Gains | 7 | |
Gross Unrealized Losses | 0 | |
Total Fair Value | 2,769 | |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,986 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Total Fair Value | 1,986 | |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 25,297 | |
Gross Unrealized Gains | 111 | |
Gross Unrealized Losses | (42) | |
Total Fair Value | 25,366 | |
U.S. government agency bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,482 | |
Gross Unrealized Gains | 12 | |
Gross Unrealized Losses | (1) | |
Total Fair Value | 7,493 | |
U.S. government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 13,991 | |
Gross Unrealized Gains | 23 | |
Gross Unrealized Losses | 0 | |
Total Fair Value | 14,014 | |
Variable rate demand notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 557 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Total Fair Value | 557 | |
Cash equivalents | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 351,965 | |
Gross Unrealized Gains | 16 | |
Gross Unrealized Losses | (11) | |
Total Fair Value | 351,970 | |
Level 1 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cash equivalents | 314,676 | |
Total | 328,690 | |
Level 1 | Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total Fair Value | 0 | |
Level 1 | Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total Fair Value | 0 | |
Level 1 | Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total Fair Value | 0 | |
Level 1 | Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total Fair Value | 0 | |
Level 1 | U.S. government agency bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total Fair Value | 0 | |
Level 1 | U.S. government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total Fair Value | 14,014 | |
Level 1 | Variable rate demand notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total Fair Value | 0 | |
Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cash equivalents | 37,294 | |
Total | 81,543 | |
Level 2 | Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total Fair Value | 6,078 | |
Level 2 | Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total Fair Value | 2,769 | |
Level 2 | Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total Fair Value | 1,986 | |
Level 2 | Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total Fair Value | 25,366 | |
Level 2 | U.S. government agency bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total Fair Value | 7,493 | |
Level 2 | U.S. government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total Fair Value | 0 | |
Level 2 | Variable rate demand notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total Fair Value | $ 557 | |
Subsequent Event | ||
Debt Securities, Available-for-sale [Line Items] | ||
Increase in available-for-sale debt investments | $ 130,000 |
Investments - Valuation of Mone
Investments - Valuation of Money Market Funds (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Short-term investment government bond | $ 410,233 | |
Level 1 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cash equivalent money market funds | 314,676 | |
Level 2 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cash equivalent money market funds | 37,294 | |
U.S. government bonds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Short-term investment government bond | 14,014 | |
U.S. government bonds | Level 1 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Short-term investment government bond | 14,014 | |
U.S. government bonds | Level 2 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Short-term investment government bond | $ 0 | |
U.S. government bonds | Fair Value, Recurring | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Short-term investment government bond | $ 6,300 | |
U.S. government bonds | Fair Value, Recurring | Level 2 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Short-term investment government bond | 6,348 | |
Money Market Funds | Fair Value, Recurring | Level 1 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cash equivalent money market funds | 384,474 | |
Money Market Funds | Fair Value, Recurring | Level 1 | Revision of Prior Period, Adjustment | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cash equivalent money market funds | $ 286,700 |
Factoring of Accounts Receiva_2
Factoring of Accounts Receivable (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Total Factored | ||
Factoring of Accounts Receivable [Line Items] | ||
Accounts receivable sold | $ 170.5 | $ 155.7 |
Discounts and Fees | ||
Factoring of Accounts Receivable [Line Items] | ||
Accounts receivable sold | $ 1 | $ 1.2 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Finance lease assets | $ 34,401 | $ 34,158 |
Total property, plant and equipment | 7,432,174 | 7,381,922 |
Accumulated depreciation and amortization | (5,064,428) | (4,977,072) |
Total property, plant and equipment, net | 2,367,746 | 2,404,850 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 220,076 | 219,785 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 1,575,352 | 1,571,653 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 5,335,424 | 5,303,729 |
Software and computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 222,459 | 220,264 |
Furniture, fixtures and other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 19,844 | 19,740 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 24,618 | $ 12,593 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Summary of Depreciation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 123,501 | $ 135,493 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Payroll and benefits | $ 90,561 | $ 115,693 |
Short-term operating lease liabilities | 42,082 | 40,972 |
Income taxes payable | 18,587 | 11,661 |
Deferred revenue and customer advances | 13,881 | 16,177 |
Accrued severance plan obligations | 11,192 | 13,408 |
Short-term finance lease liabilities | 9,168 | 9,121 |
Accrued interest | 3,629 | 11,638 |
Other accrued expenses | 47,364 | 48,556 |
Total accrued expenses | $ 236,464 | $ 267,226 |
Debt (Details)
Debt (Details) ₩ in Billions | 1 Months Ended | 3 Months Ended | |||||||||
Apr. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Jan. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jul. 31, 2018USD ($) | May 31, 2015USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Apr. 30, 2020KRW (₩) | Oct. 31, 2019USD ($) | Jul. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |||||||||||
Long-term Debt | $ 1,522,833,000 | $ 1,460,351,000 | $ 1,522,833,000 | ||||||||
Less: Unamortized discount and deferred debt costs, net | (9,811,000) | (10,117,000) | (9,811,000) | ||||||||
Less: Short-term borrowings and current portion of long-term debt | (141,521,000) | (144,479,000) | (141,521,000) | ||||||||
Long-term debt | 1,371,501,000 | 1,305,755,000 | 1,371,501,000 | ||||||||
Proceeds from revolving credit facilities | 201,000,000 | $ 0 | |||||||||
Payments of long-term debt | $ 172,336,000 | $ 63,636,000 | |||||||||
Term loan, LIBOR plus 1.60%, due March 2022 | China | LIBOR | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate (as a percent) | 1.60% | ||||||||||
Term Loan, LIBOR plus 1.40% due March 2022 | China | LIBOR | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate (as a percent) | 1.40% | ||||||||||
Senior Notes | 6.625% Senior notes, due September 2027 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt | $ 525,000,000 | 525,000,000 | $ 525,000,000 | ||||||||
Stated interest rate (as a percent) | 6.625% | 6.625% | |||||||||
Line of Credit | Revolving Credit Facility | Korea | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt | $ 15,000,000 | 0 | $ 15,000,000 | ||||||||
Credit facility, borrowing capacity | $ 30,000,000 | $ 30,000,000 | $ 30,000,000 | ||||||||
Interest rate at period end (as a percent) | 2.97% | 2.97% | |||||||||
Proceeds from revolving credit facilities | $ 15,000,000 | ||||||||||
Unused borrowing capacity | $ 15,000,000 | $ 15,000,000 | |||||||||
Line of Credit | Revolving Credit Facility | Korea | Subsequent Event | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from revolving credit facilities | $ 15,000,000 | ||||||||||
Line of Credit | $250 million senior secured revolving credit facility, LIBOR plus 1.25%-1.75%, due July 2023 (Singapore) | Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facility, borrowing capacity | $ 250,000,000 | ||||||||||
Interest rate at period end (as a percent) | 2.85% | 2.85% | |||||||||
Remaining borrowing capacity | $ 100,000,000 | $ 100,000,000 | |||||||||
Line of Credit | $250 million senior secured revolving credit facility, LIBOR plus 1.25%-1.75%, due July 2023 (Singapore) | Revolving Credit Facility | LIBOR | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate (as a percent) | 1.25% | ||||||||||
Line of Credit | $250 million senior secured revolving credit facility, LIBOR plus 1.25%-1.75%, due July 2023 (Singapore) | Revolving Credit Facility | LIBOR | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate (as a percent) | 1.75% | ||||||||||
Line of Credit | $250 million senior secured revolving credit facility, LIBOR plus 1.25%-1.75%, due July 2023 (Singapore) | Revolving Credit Facility | Singapore | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt | 150,000,000 | 0 | 150,000,000 | ||||||||
Credit facility, borrowing capacity | 250,000,000 | $ 250,000,000 | |||||||||
Line of Credit | $250 million senior secured revolving credit facility, LIBOR plus 1.25%-1.75%, due July 2023 (Singapore) | Revolving Credit Facility | Singapore | LIBOR | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate (as a percent) | 1.25% | ||||||||||
Line of Credit | $250 million senior secured revolving credit facility, LIBOR plus 1.25%-1.75%, due July 2023 (Singapore) | Revolving Credit Facility | Singapore | LIBOR | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate (as a percent) | 1.75% | ||||||||||
Line of Credit | Revolving credit facility, TAIFX plus the applicable bank rate, due December 2024 (Taiwan) | Revolving Credit Facility | Taiwan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt | $ 56,000,000 | 20,000,000 | $ 56,000,000 | ||||||||
Credit facility, borrowing capacity | 56,000,000 | ||||||||||
Interest rate at period end (as a percent) | 3.41% | 3.41% | |||||||||
Proceeds from revolving credit facilities | 20,000,000 | $ 36,000,000 | |||||||||
Line of Credit | Revolving credit facility, TAIFX plus the applicable bank rate, due December 2024 (Taiwan) | Revolving Credit Facility | Taiwan | Subsequent Event | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from revolving credit facilities | 36,000,000 | ||||||||||
Repayments of revolving credit facilities | 36,000,000 | ||||||||||
Subsidiary Term Loans | Term loan, fund floating rate plus 1.60%, due June 2020 | Korea | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt | $ 0 | 24,000,000 | 0 | ||||||||
Face amount of debt | $ 150,000,000 | ||||||||||
Payments of long-term debt | $ 24,000,000 | ||||||||||
Subsidiary Term Loans | Term loan, fund floating rate plus 1.60%, due June 2020 | Korea | Fund Floating Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate (as a percent) | 1.60% | 1.60% | |||||||||
Subsidiary Term Loans | Term loan, applicable bank rate plus 2.03%, due July 2022 | Korea | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt | 40,000,000 | 40,000,000 | $ 40,000,000 | ||||||||
Subsidiary Term Loans | Term loan, applicable bank rate plus 2.03%, due July 2022 | Korea | Applicable Bank Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate (as a percent) | 2.03% | ||||||||||
Subsidiary Term Loans | Term loan, applicable bank rate plus 2.03%, due September 2022 | Korea | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt | $ 60,000,000 | 60,000,000 | $ 60,000,000 | ||||||||
Interest rate at period end (as a percent) | 3.59% | 3.59% | |||||||||
Unused borrowing capacity | $ 80,000,000 | $ 80,000,000 | |||||||||
Face amount of debt | $ 140,000,000 | ||||||||||
Subsidiary Term Loans | Term loan, applicable bank rate plus 2.03%, due September 2022 | Korea | Subsequent Event | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from issuance of long-term debt | $ 40,000,000 | ||||||||||
Subsidiary Term Loans | Term loan, applicable bank rate plus 2.03%, due September 2022 | Korea | Applicable Bank Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate (as a percent) | 2.03% | ||||||||||
Subsidiary Term Loans | Term loan, LIBOR plus 2.56%, due December 2023 | Korea | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt | 80,000,000 | 200,000,000 | $ 80,000,000 | ||||||||
Subsidiary Term Loans | Term loan, LIBOR plus 2.56%, due December 2023 | Korea | LIBOR | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate (as a percent) | 2.56% | ||||||||||
Subsidiary Term Loans | Term loan, LIBOR plus 2.56%, due December 2023 | Japan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Payments of long-term debt | $ 120,000,000 | ||||||||||
Subsidiary Term Loans | Term loan, applicable bank rate plus 1.98%, due December 2028 | Korea | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt | 90,000,000 | 66,000,000 | $ 90,000,000 | ||||||||
Subsidiary Term Loans | Term loan, applicable bank rate plus 1.98%, due December 2028 | Korea | Applicable Bank Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate (as a percent) | 1.98% | ||||||||||
Subsidiary Term Loans | Short-term term loans, variable rate | Japan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt | 12,005,000 | 7,071,000 | $ 12,005,000 | ||||||||
Unused borrowing capacity | $ 6,500,000 | $ 6,500,000 | |||||||||
Subsidiary Term Loans | Short-term term loans, variable rate | Japan | Weighted Average | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Weighted average interest rate (as a percent) | 0.21% | 0.21% | |||||||||
Subsidiary Term Loans | Short-term term loans, variable rate | Japan | TIBOR | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate (as a percent) | 0.10% | ||||||||||
Subsidiary Term Loans | Short-term term loans, variable rate | Japan | TIBOR | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate (as a percent) | 0.20% | ||||||||||
Subsidiary Term Loans | Term loan, fixed rate at 0.86%, due June 2022 | Japan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt | $ 20,923,000 | 23,018,000 | $ 20,923,000 | ||||||||
Stated interest rate (as a percent) | 0.86% | 0.86% | |||||||||
Subsidiary Term Loans | Term loan, fixed rate at 0.60%, due July 2022 | Japan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt | $ 4,649,000 | 5,064,000 | $ 4,649,000 | ||||||||
Stated interest rate (as a percent) | 0.60% | 0.60% | |||||||||
Subsidiary Term Loans | Term loan, fixed rate at 1.30%, due July 2023 | Japan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt | $ 169,239,000 | 179,541,000 | $ 169,239,000 | ||||||||
Stated interest rate (as a percent) | 1.30% | 1.30% | |||||||||
Subsidiary Term Loans | Term loan, fixed rate at 1.35%, due December 2024 | Japan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt | $ 251,767,000 | 262,407,000 | $ 251,767,000 | ||||||||
Stated interest rate (as a percent) | 1.35% | 1.35% | |||||||||
Proceeds from issuance of long-term debt | $ 120,000,000 | ||||||||||
Subsidiary Term Loans | Term loan, LIBOR plus 1.60%, due March 2022 | China | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt | $ 29,000,000 | 29,000,000 | $ 29,000,000 | ||||||||
Subsidiary Term Loans | Term Loan, LIBOR plus 1.40% due March 2022 | China | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt | $ 19,250,000 | $ 19,250,000 | $ 19,250,000 | ||||||||
Subsidiary Term Loans | Term loan, entered in April 2020 | Korea | Subsequent Event | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate at period end (as a percent) | 2.87% | 2.87% | |||||||||
Face amount of debt | $ 123,000,000 | ₩ 150 | |||||||||
Proceeds from issuance of long-term debt | $ 123,000,000 |
Pension Plans - Components of N
Pension Plans - Components of Net Periodic Pension Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 7,536 | $ 7,977 |
Interest cost | 1,247 | 1,324 |
Expected return on plan assets | (1,374) | (1,618) |
Recognized actuarial gain | 14 | (94) |
Net periodic pension cost | $ 7,423 | $ 7,589 |
Pension Plans - Summary of Defi
Pension Plans - Summary of Defined Contribution Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Retirement Benefits [Abstract] | ||
Defined contribution expense | $ 4,816 | $ 4,405 |
Fair Value Measurements - Instr
Fair Value Measurements - Instruments Not Recorded on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total debt | $ 1,469,602 | $ 1,517,631 |
Fair Value | Senior notes | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total debt | 488,701 | 576,875 |
Fair Value | Revolving credit facilities and term loans | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total debt | 980,901 | 940,756 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total debt | 1,513,022 | 1,450,234 |
Carrying Value | Senior notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total debt | 519,355 | 519,211 |
Carrying Value | Revolving credit facilities and term loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total debt | $ 993,667 | $ 931,023 |
Restructuring and Other Exit _3
Restructuring and Other Exit Activities - Narrative (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Charges | $ 1,919 |
Japan Consolidation Activities | |
Restructuring Cost and Reserve [Line Items] | |
Charges | $ 1,900 |
Restructuring and Other Exit _4
Restructuring and Other Exit Activities - Exit Activities (Details) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Restructuring Reserve [Roll Forward] | |
Accrual, beginning balance | $ 2,641,000 |
Charges | 1,919,000 |
Cash Payments | (3,442,000) |
Non-cash Amounts | (15,000) |
Accrual, ending balance | 1,103,000 |
Total cumulative charges incurred to date | 9,874,000 |
Estimated additional charges to be incurred | 19,000,000 |
Facility and Other Exit Costs | |
Restructuring Reserve [Roll Forward] | |
Accrual, beginning balance | 2,196,000 |
Charges | 1,310,000 |
Cash Payments | (2,482,000) |
Non-cash Amounts | (12,000) |
Accrual, ending balance | 1,012,000 |
Total cumulative charges incurred to date | 5,809,000 |
Estimated additional charges to be incurred | 11,000,000 |
Employee Separation Costs | |
Restructuring Reserve [Roll Forward] | |
Accrual, beginning balance | 271,000 |
Charges | 30,000 |
Cash Payments | (300,000) |
Non-cash Amounts | (1,000) |
Accrual, ending balance | 0 |
Total cumulative charges incurred to date | 2,740,000 |
Estimated additional charges to be incurred | 5,000,000 |
Other Restructuring [Member] | |
Restructuring Reserve [Roll Forward] | |
Accrual, beginning balance | 174,000 |
Charges | 579,000 |
Cash Payments | (660,000) |
Non-cash Amounts | (2,000) |
Accrual, ending balance | 91,000 |
Total cumulative charges incurred to date | 1,325,000 |
Estimated additional charges to be incurred | $ 3,000,000 |