|
þ
|
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
For the Quarterly Period Ended June 30, 2016
|
or
|
||
¨
|
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
For the transition period from to
|
Delaware
(State of incorporation)
|
|
|
|
23-1722724
(I.R.S. Employer
Identification Number)
|
Large accelerated filer
þ
|
Accelerated filer
o
|
Non-accelerated filer
o
|
Smaller reporting company
o
|
(Do not check if a smaller reporting company)
|
|
|
|
Page
|
|
||
|
||
|
||
|
||
|
||
|
||
|
For the Three Months Ended
June 30, |
|
For the Six Months Ended
June 30, |
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(In thousands, except per share data)
|
||||||||||||||
Net sales
|
$
|
917,326
|
|
|
$
|
736,722
|
|
|
$
|
1,786,008
|
|
|
$
|
1,479,597
|
|
Cost of sales
|
785,720
|
|
|
621,624
|
|
|
1,531,518
|
|
|
1,229,552
|
|
||||
Gross profit
|
131,606
|
|
|
115,098
|
|
|
254,490
|
|
|
250,045
|
|
||||
Selling, general and administrative
|
70,896
|
|
|
56,435
|
|
|
144,531
|
|
|
119,377
|
|
||||
Research and development
|
30,168
|
|
|
20,020
|
|
|
57,323
|
|
|
38,046
|
|
||||
Total operating expenses
|
101,064
|
|
|
76,455
|
|
|
201,854
|
|
|
157,423
|
|
||||
Operating income
|
30,542
|
|
|
38,643
|
|
|
52,636
|
|
|
92,622
|
|
||||
Interest expense
|
20,816
|
|
|
22,845
|
|
|
37,008
|
|
|
46,622
|
|
||||
Interest expense, related party
|
1,242
|
|
|
1,242
|
|
|
2,484
|
|
|
2,484
|
|
||||
Other (income) expense, net
|
(242
|
)
|
|
7,290
|
|
|
2,950
|
|
|
6,792
|
|
||||
Total other expense, net
|
21,816
|
|
|
31,377
|
|
|
42,442
|
|
|
55,898
|
|
||||
Income before taxes and equity in earnings of unconsolidated affiliate
|
8,726
|
|
|
7,266
|
|
|
10,194
|
|
|
36,724
|
|
||||
Income tax expense
|
3,360
|
|
|
4,631
|
|
|
5,233
|
|
|
10,630
|
|
||||
Income before equity in earnings of unconsolidated affiliate
|
5,366
|
|
|
2,635
|
|
|
4,961
|
|
|
26,094
|
|
||||
Equity in earnings of J-Devices
|
—
|
|
|
5,315
|
|
|
—
|
|
|
9,370
|
|
||||
Net income
|
5,366
|
|
|
7,950
|
|
|
4,961
|
|
|
35,464
|
|
||||
Net income attributable to non-controlling interests
|
(653
|
)
|
|
(623
|
)
|
|
(1,123
|
)
|
|
(1,539
|
)
|
||||
Net income attributable to Amkor
|
$
|
4,713
|
|
|
$
|
7,327
|
|
|
$
|
3,838
|
|
|
$
|
33,925
|
|
Net income attributable to Amkor per common share:
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
$
|
0.02
|
|
|
$
|
0.03
|
|
|
$
|
0.02
|
|
|
$
|
0.14
|
|
Diluted
|
$
|
0.02
|
|
|
$
|
0.03
|
|
|
$
|
0.02
|
|
|
$
|
0.14
|
|
Shares used in computing per common share amounts:
|
|
|
|
|
|
|
|
|
|||||||
Basic
|
237,090
|
|
|
236,840
|
|
|
237,058
|
|
|
236,774
|
|
||||
Diluted
|
237,434
|
|
|
237,321
|
|
|
237,297
|
|
|
237,366
|
|
|
For the Three Months Ended
June 30, |
|
For the Six Months Ended
June 30, |
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(In thousands)
|
||||||||||||||
Net income
|
$
|
5,366
|
|
|
$
|
7,950
|
|
|
$
|
4,961
|
|
|
$
|
35,464
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
||||||||
Adjustments to unrealized components of defined benefit pension plans, net of tax
|
23
|
|
|
22
|
|
|
47
|
|
|
44
|
|
||||
Foreign currency translation
|
26,955
|
|
|
10
|
|
|
46,278
|
|
|
(112
|
)
|
||||
Equity interest in J-Devices' other comprehensive loss, net of tax
|
—
|
|
|
(5,245
|
)
|
|
—
|
|
|
(3,885
|
)
|
||||
Total other comprehensive income (loss)
|
26,978
|
|
|
(5,213
|
)
|
|
46,325
|
|
|
(3,953
|
)
|
||||
Comprehensive income
|
32,344
|
|
|
2,737
|
|
|
51,286
|
|
|
31,511
|
|
||||
Comprehensive income attributable to non-controlling interests
|
(653
|
)
|
|
(623
|
)
|
|
(1,123
|
)
|
|
(1,539
|
)
|
||||
Comprehensive income attributable to Amkor
|
$
|
31,691
|
|
|
$
|
2,114
|
|
|
$
|
50,163
|
|
|
$
|
29,972
|
|
|
June 30,
2016 |
|
December 31,
2015 |
||||
|
(In thousands, except per share data)
|
||||||
ASSETS
|
|||||||
Current assets:
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
499,320
|
|
|
$
|
523,172
|
|
Restricted cash
|
2,000
|
|
|
2,000
|
|
||
Accounts receivable, net of allowances
|
579,794
|
|
|
526,143
|
|
||
Inventories
|
251,627
|
|
|
238,205
|
|
||
Other current assets
|
29,786
|
|
|
27,960
|
|
||
Total current assets
|
1,362,527
|
|
|
1,317,480
|
|
||
Property, plant and equipment, net
|
2,625,123
|
|
|
2,579,017
|
|
||
Goodwill
|
27,417
|
|
|
23,409
|
|
||
Restricted cash
|
2,320
|
|
|
2,176
|
|
||
Other assets
|
103,461
|
|
|
104,346
|
|
||
Total assets
|
$
|
4,120,848
|
|
|
$
|
4,026,428
|
|
LIABILITIES AND EQUITY
|
|||||||
Current liabilities:
|
|
|
|
|
|
||
Short-term borrowings and current portion of long-term debt
|
$
|
96,215
|
|
|
$
|
76,770
|
|
Trade accounts payable
|
465,113
|
|
|
434,222
|
|
||
Capital expenditures payable
|
174,758
|
|
|
242,980
|
|
||
Accrued expenses
|
300,758
|
|
|
264,212
|
|
||
Total current liabilities
|
1,036,844
|
|
|
1,018,184
|
|
||
Long-term debt
|
1,465,504
|
|
|
1,435,269
|
|
||
Long-term debt, related party
|
75,000
|
|
|
75,000
|
|
||
Pension and severance obligations
|
180,608
|
|
|
167,197
|
|
||
Other non-current liabilities
|
92,892
|
|
|
113,242
|
|
||
Total liabilities
|
2,850,848
|
|
|
2,808,892
|
|
||
Commitments and contingencies (Note 16)
|
|
|
|
|
|
||
Stockholders’ equity:
|
|
|
|
|
|
||
Preferred stock, $0.001 par value, 10,000 shares authorized, designated Series A, none issued
|
—
|
|
|
—
|
|
||
Common stock, $0.001 par value, 500,000 shares authorized, 282,902 and 282,724 shares issued, and 237,141 and 237,005 shares outstanding, in 2016 and 2015, respectively
|
283
|
|
|
283
|
|
||
Additional paid-in capital
|
1,885,278
|
|
|
1,883,592
|
|
||
Accumulated deficit
|
(463,909
|
)
|
|
(467,747
|
)
|
||
Accumulated other comprehensive income (loss)
|
44,241
|
|
|
(2,084
|
)
|
||
Treasury stock, at cost, 45,761 and 45,719 shares in 2016 and 2015, respectively
|
(213,996
|
)
|
|
(213,758
|
)
|
||
Total Amkor stockholders’ equity
|
1,251,897
|
|
|
1,200,286
|
|
||
Non-controlling interests in subsidiaries
|
18,103
|
|
|
17,250
|
|
||
Total equity
|
1,270,000
|
|
|
1,217,536
|
|
||
Total liabilities and equity
|
$
|
4,120,848
|
|
|
$
|
4,026,428
|
|
|
For the Six Months Ended
June 30, |
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||
Net income
|
$
|
4,961
|
|
|
$
|
35,464
|
|
Depreciation and amortization
|
275,241
|
|
|
248,716
|
|
||
Loss on debt retirement
|
—
|
|
|
2,530
|
|
||
Other operating activities and non-cash items
|
(6,177
|
)
|
|
(9,745
|
)
|
||
Changes in assets and liabilities
|
(826
|
)
|
|
(48,684
|
)
|
||
Net cash provided by operating activities
|
273,199
|
|
|
228,281
|
|
||
Cash flows from investing activities:
|
|
|
|
|
|
||
Payments for property, plant and equipment
|
(355,974
|
)
|
|
(194,360
|
)
|
||
Proceeds from sale of property, plant and equipment
|
593
|
|
|
4,069
|
|
||
Cash received on sale of subsidiary to J-Devices, net
|
—
|
|
|
8,355
|
|
||
Investment in J-Devices
|
—
|
|
|
(12,908
|
)
|
||
Other investing activities
|
(974
|
)
|
|
(1,315
|
)
|
||
Net cash used in investing activities
|
(356,355
|
)
|
|
(196,159
|
)
|
||
Cash flows from financing activities:
|
|
|
|
|
|
||
Borrowings under revolving credit facilities
|
115,000
|
|
|
180,000
|
|
||
Payments under revolving credit facilities
|
(100,000
|
)
|
|
(30,000
|
)
|
||
Borrowings under short-term debt
|
24,630
|
|
|
—
|
|
||
Payments of short-term debt
|
(23,035
|
)
|
|
—
|
|
||
Proceeds from issuance of long-term debt
|
34,000
|
|
|
340,000
|
|
||
Payments of long-term debt
|
(8,582
|
)
|
|
(530,000
|
)
|
||
Payments for debt issuance costs
|
(156
|
)
|
|
—
|
|
||
Payments for capital lease obligations
|
(887
|
)
|
|
—
|
|
||
Proceeds from the issuance of stock through share-based compensation plans
|
60
|
|
|
656
|
|
||
Payments of tax withholding for restricted shares
|
(238
|
)
|
|
(427
|
)
|
||
Payments of subsidiary dividends to non-controlling interests
|
(270
|
)
|
|
—
|
|
||
Net cash provided by (used in) financing activities
|
40,522
|
|
|
(39,771
|
)
|
||
Effect of exchange rate fluctuations on cash and cash equivalents
|
18,782
|
|
|
—
|
|
||
Net decrease in cash and cash equivalents
|
(23,852
|
)
|
|
(7,649
|
)
|
||
Cash and cash equivalents, beginning of period
|
523,172
|
|
|
449,946
|
|
||
Cash and cash equivalents, end of period
|
$
|
499,320
|
|
|
$
|
442,297
|
|
Non cash investing and financing activities:
|
|
|
|
||||
Property, plant and equipment included in capital expenditures payable
|
$
|
174,758
|
|
|
$
|
210,319
|
|
|
Initial Allocation
|
|
Adjustments
|
|
Revised Allocation
|
||||||
|
(In thousands)
|
||||||||||
Fair value of consideration transferred:
|
|
|
|
|
|
||||||
Cash
|
$
|
105,391
|
|
|
$
|
—
|
|
|
$
|
105,391
|
|
Fair value of our previously held equity interest in J-Devices
|
167,684
|
|
|
(7,597
|
)
|
|
160,087
|
|
|||
Total
|
$
|
273,075
|
|
|
$
|
(7,597
|
)
|
|
$
|
265,478
|
|
|
|
|
|
|
|
||||||
Recognized amounts of identifiable assets acquired and liabilities assumed:
|
|
|
|
|
|
||||||
Cash
|
$
|
127,968
|
|
|
$
|
—
|
|
|
$
|
127,968
|
|
Accounts receivable
|
180,177
|
|
|
—
|
|
|
180,177
|
|
|||
Inventory
|
42,502
|
|
|
—
|
|
|
42,502
|
|
|||
Other current assets
|
2,363
|
|
|
—
|
|
|
2,363
|
|
|||
Property, plant and equipment
|
230,319
|
|
|
—
|
|
|
230,319
|
|
|||
Other assets
|
9,268
|
|
|
—
|
|
|
9,268
|
|
|||
Short-term borrowings and current portion of long-term debt
|
(36,770
|
)
|
|
—
|
|
|
(36,770
|
)
|
|||
Other current liabilities
|
(251,405
|
)
|
|
—
|
|
|
(251,405
|
)
|
|||
Long-term debt
|
(18,885
|
)
|
|
—
|
|
|
(18,885
|
)
|
|||
Pension obligations
|
(22,250
|
)
|
|
—
|
|
|
(22,250
|
)
|
|||
Other non-current liabilities
|
(9,655
|
)
|
|
(11,563
|
)
|
|
(21,218
|
)
|
|||
Total identifiable net assets
|
253,632
|
|
|
(11,563
|
)
|
|
242,069
|
|
|||
Goodwill
|
19,443
|
|
|
3,966
|
|
|
23,409
|
|
|||
Total
|
$
|
273,075
|
|
|
$
|
(7,597
|
)
|
|
$
|
265,478
|
|
|
For the Three Months Ended
June 30, |
|
For the Six Months Ended
June 30, |
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(In thousands)
|
||||||||||||||
Share-based compensation expense
|
$
|
821
|
|
|
$
|
878
|
|
|
$
|
1,626
|
|
|
$
|
2,248
|
|
|
Number of
Shares
(In thousands)
|
|
Weighted Average
Exercise Price
Per Share
|
|
Weighted Average
Remaining
Contractual
Term (Years)
|
|
Aggregate
Intrinsic
Value
(In thousands)
|
|||||
Outstanding at December 31, 2015
|
3,727
|
|
|
$
|
6.49
|
|
|
|
|
|
|
|
Granted
|
340
|
|
|
5.04
|
|
|
|
|
|
|
||
Exercised
|
(14
|
)
|
|
4.28
|
|
|
|
|
|
|
||
Forfeited or expired
|
(239
|
)
|
|
6.91
|
|
|
|
|
|
|
||
Outstanding at June 30, 2016
|
3,814
|
|
|
$
|
6.35
|
|
|
6.06
|
|
$
|
2,743
|
|
Fully vested at June 30, 2016 and expected to vest thereafter
|
3,780
|
|
|
$
|
6.35
|
|
|
6.04
|
|
$
|
2,718
|
|
Exercisable at June 30, 2016
|
2,735
|
|
|
$
|
6.74
|
|
|
5.15
|
|
$
|
1,860
|
|
|
For the Three Months Ended
June 30, |
For the Six Months Ended
June 30, |
||||||||||||
|
2016
|
|
2015
|
2016
|
|
2015
|
||||||||
Expected life (in years)
|
7.6
|
|
|
5.5
|
|
6.7
|
|
|
5.7
|
|
||||
Risk-free interest rate
|
1.7
|
%
|
|
1.8
|
%
|
1.6
|
%
|
|
1.8
|
%
|
||||
Volatility
|
56
|
%
|
|
43
|
%
|
49
|
%
|
|
46
|
%
|
||||
Dividend yield
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
||||
Weighted average grant date fair value per option granted
|
$
|
3.32
|
|
|
$
|
2.83
|
|
$
|
2.56
|
|
|
$
|
3.48
|
|
|
Number of
Shares
(In thousands)
|
|
Weighted
Average
Grant-Date
Fair Value
(Per share)
|
|||
Non-vested at December 31, 2015
|
385
|
|
|
$
|
4.78
|
|
Awards granted
|
50
|
|
|
5.66
|
|
|
Awards vested
|
(165
|
)
|
|
5.06
|
|
|
Awards forfeited
|
(3
|
)
|
|
4.43
|
|
|
Non-vested at June 30, 2016
|
267
|
|
|
$
|
4.77
|
|
|
For the Three Months Ended
June 30, |
|
For the Six Months Ended
June 30, |
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(In thousands)
|
||||||||||||||
Interest income
|
$
|
(295
|
)
|
|
$
|
(690
|
)
|
|
$
|
(699
|
)
|
|
$
|
(1,673
|
)
|
Foreign currency (gain) loss, net
|
759
|
|
|
(1,459
|
)
|
|
4,382
|
|
|
(1,252
|
)
|
||||
Loss on debt retirement
|
—
|
|
|
9,349
|
|
|
—
|
|
|
9,560
|
|
||||
Other (income) expense, net
|
(706
|
)
|
|
90
|
|
|
(733
|
)
|
|
157
|
|
||||
Total other (income) expense, net
|
$
|
(242
|
)
|
|
$
|
7,290
|
|
|
$
|
2,950
|
|
|
$
|
6,792
|
|
|
For the Three Months Ended
June 30, |
|
For the Six Months Ended
June 30, |
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(In thousands,
except per share data)
|
||||||||||||||
Net income attributable to Amkor
|
$
|
4,713
|
|
|
$
|
7,327
|
|
|
$
|
3,838
|
|
|
$
|
33,925
|
|
Income allocated to participating securities
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
(75
|
)
|
||||
Net income available to Amkor common stockholders
|
$
|
4,713
|
|
|
$
|
7,311
|
|
|
$
|
3,838
|
|
|
$
|
33,850
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding — basic
|
237,090
|
|
|
236,840
|
|
|
237,058
|
|
|
236,774
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Stock options and restricted share awards
|
344
|
|
|
481
|
|
|
239
|
|
|
592
|
|
||||
Weighted average shares outstanding — diluted
|
237,434
|
|
|
237,321
|
|
|
237,297
|
|
|
237,366
|
|
||||
Net income attributable to Amkor per common share:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
$
|
0.02
|
|
|
$
|
0.03
|
|
|
$
|
0.02
|
|
|
$
|
0.14
|
|
Diluted
|
0.02
|
|
|
0.03
|
|
|
0.02
|
|
|
0.14
|
|
|
Attributable
to Amkor
|
|
Attributable to
Non-controlling
Interests
|
|
Total
|
||||||
|
(In thousands)
|
||||||||||
Equity at December 31, 2015
|
$
|
1,200,286
|
|
|
$
|
17,250
|
|
|
$
|
1,217,536
|
|
Net income
|
3,838
|
|
|
1,123
|
|
|
4,961
|
|
|||
Other comprehensive income
|
46,325
|
|
|
—
|
|
|
46,325
|
|
|||
Issuance of stock through employee share-based compensation plans
|
60
|
|
|
—
|
|
|
60
|
|
|||
Treasury stock acquired through surrender of shares for tax withholding
|
(238
|
)
|
|
—
|
|
|
(238
|
)
|
|||
Share-based compensation
|
1,626
|
|
|
—
|
|
|
1,626
|
|
|||
Subsidiary dividends paid to non-controlling interests
|
—
|
|
|
(270
|
)
|
|
(270
|
)
|
|||
Equity at June 30, 2016
|
$
|
1,251,897
|
|
|
$
|
18,103
|
|
|
$
|
1,270,000
|
|
|
Attributable
to Amkor
|
|
Attributable to
Non-controlling
Interests
|
|
Total
|
||||||
|
(In thousands)
|
||||||||||
Equity at December 31, 2014
|
$
|
1,114,748
|
|
|
$
|
14,701
|
|
|
$
|
1,129,449
|
|
Net income
|
33,925
|
|
|
1,539
|
|
|
35,464
|
|
|||
Other comprehensive loss
|
(3,953
|
)
|
|
—
|
|
|
(3,953
|
)
|
|||
Issuance of stock through employee share-based compensation plans
|
656
|
|
|
—
|
|
|
656
|
|
|||
Treasury stock acquired through surrender of shares for tax withholding
|
(427
|
)
|
|
—
|
|
|
(427
|
)
|
|||
Share-based compensation
|
2,248
|
|
|
—
|
|
|
2,248
|
|
|||
Equity at June 30, 2015
|
$
|
1,147,197
|
|
|
$
|
16,240
|
|
|
$
|
1,163,437
|
|
|
Defined Benefit Pension
|
|
Foreign Currency Translation
|
|
Total
|
||||||
|
(In thousands)
|
||||||||||
Accumulated other comprehensive loss at
December 31, 2015 |
$
|
(1,425
|
)
|
|
$
|
(659
|
)
|
|
$
|
(2,084
|
)
|
Other comprehensive income before reclassifications
|
—
|
|
|
46,278
|
|
|
46,278
|
|
|||
Amounts reclassified from accumulated other comprehensive loss
|
47
|
|
|
—
|
|
|
47
|
|
|||
Other comprehensive income
|
47
|
|
|
46,278
|
|
|
46,325
|
|
|||
Accumulated other comprehensive income (loss) at
June 30, 2016 |
$
|
(1,378
|
)
|
|
$
|
45,619
|
|
|
$
|
44,241
|
|
|
Defined Benefit Pension
|
|
Foreign Currency Translation
|
|
Equity Interest in J-Devices' Other Comprehensive Income (Loss)
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
Accumulated other comprehensive loss at
December 31, 2014 |
$
|
(2,525
|
)
|
|
$
|
(513
|
)
|
|
$
|
(29,433
|
)
|
|
$
|
(32,471
|
)
|
Other comprehensive loss before reclassifications
|
—
|
|
|
(112
|
)
|
|
(3,885
|
)
|
|
(3,997
|
)
|
||||
Amounts reclassified from accumulated other comprehensive loss
|
44
|
|
|
—
|
|
|
—
|
|
|
44
|
|
||||
Other comprehensive income (loss)
|
44
|
|
|
(112
|
)
|
|
(3,885
|
)
|
|
(3,953
|
)
|
||||
Accumulated other comprehensive loss at
June 30, 2015 |
$
|
(2,481
|
)
|
|
$
|
(625
|
)
|
|
$
|
(33,318
|
)
|
|
$
|
(36,424
|
)
|
|
June 30,
2016 |
|
December 31, 2015
|
||||
|
(In thousands)
|
||||||
Raw materials and purchased components
|
$
|
170,195
|
|
|
$
|
163,024
|
|
Work-in-process
|
81,432
|
|
|
75,181
|
|
||
Total inventories
|
$
|
251,627
|
|
|
$
|
238,205
|
|
|
June 30,
2016 |
|
December 31, 2015
|
||||
|
(In thousands)
|
||||||
Land
|
$
|
245,116
|
|
|
$
|
237,815
|
|
Land use rights
|
26,845
|
|
|
26,845
|
|
||
Buildings and improvements
|
1,033,875
|
|
|
1,010,201
|
|
||
Machinery and equipment
|
4,340,987
|
|
|
4,226,401
|
|
||
Software and computer equipment
|
204,683
|
|
|
197,266
|
|
||
Furniture, fixtures and other equipment
|
21,708
|
|
|
21,259
|
|
||
Construction in progress
|
434,891
|
|
|
352,607
|
|
||
Total property, plant and equipment
|
6,308,105
|
|
|
6,072,394
|
|
||
Less accumulated depreciation and amortization
|
(3,682,982
|
)
|
|
(3,493,377
|
)
|
||
Total property, plant and equipment, net
|
$
|
2,625,123
|
|
|
$
|
2,579,017
|
|
|
June 30,
2016 |
|
December 31,
2015 |
||||
|
(In thousands)
|
||||||
Payroll and benefits
|
$
|
121,421
|
|
|
$
|
95,011
|
|
Deferred revenue and customer advances
|
55,916
|
|
|
49,243
|
|
||
Accrued settlement costs
|
34,127
|
|
|
32,987
|
|
||
Income taxes payable
|
21,899
|
|
|
21,448
|
|
||
Accrued severance plan obligations
|
14,979
|
|
|
14,306
|
|
||
Accrued interest
|
13,054
|
|
|
12,920
|
|
||
Other accrued expenses
|
39,362
|
|
|
38,297
|
|
||
Total accrued expenses
|
$
|
300,758
|
|
|
$
|
264,212
|
|
|
June 30,
2016 |
|
December 31,
2015 |
||||
|
(In thousands)
|
||||||
Debt of Amkor Technology, Inc.:
|
|
|
|
|
|
||
Senior secured credit facilities:
|
|
|
|
|
|
||
$200 million revolving credit facility, LIBOR plus 1.25%-1.75%, due December 2019 (1)
|
$
|
100,000
|
|
|
$
|
100,000
|
|
Senior notes:
|
|
|
|
|
|
||
6.625% Senior notes, due June 2021, $75 million related party
|
400,000
|
|
|
400,000
|
|
||
6.375% Senior notes, due October 2022
|
524,971
|
|
|
525,000
|
|
||
Debt of subsidiaries:
|
|
|
|
|
|
||
Amkor Technology Korea, Inc.:
|
|
|
|
||||
$100 million revolving credit facility, foreign currency funding-linked base rate plus 1.60%, due June 2017 (2)
|
55,000
|
|
|
40,000
|
|
||
Term loan, LIBOR plus 2.60%, due May 2018
|
120,000
|
|
|
120,000
|
|
||
Term loan, LIBOR plus 2.70%, due December 2019
|
70,000
|
|
|
70,000
|
|
||
Term loan, foreign currency funding-linked base rate plus 1.35%, due May 2020
|
150,000
|
|
|
150,000
|
|
||
Term loan, foreign currency funding-linked base rate plus 1.35%, due May 2020
|
80,000
|
|
|
80,000
|
|
||
Term loan, fund floating rate plus 1.60%, due June 2020 (3)
|
64,000
|
|
|
40,000
|
|
||
J-Devices Corporation:
|
|
|
|
||||
Short-term term loans, variable rate (4)
|
25,267
|
|
|
15,582
|
|
||
Short-term term loans, fixed rate at 0.50%
|
—
|
|
|
5,808
|
|
||
Term loans, TIBOR plus 1.00%, due November 2016
|
1,215
|
|
|
2,800
|
|
||
Term loans, fixed rate at 0.53%, due April 2018
|
29,485
|
|
|
31,465
|
|
||
Amkor Technology Taiwan Ltd:
|
|
|
|
||||
Revolving credit facility, TAIFX plus a bank-determined spread, due November 2020 (5)
|
20,000
|
|
|
10,000
|
|
||
|
1,639,938
|
|
|
1,590,655
|
|
||
Less: Unamortized premium and deferred debt costs, net
|
(3,219
|
)
|
|
(3,616
|
)
|
||
Less: Short-term borrowings and current portion of long-term debt
|
(96,215
|
)
|
|
(76,770
|
)
|
||
Long-term debt (including related party)
|
$
|
1,540,504
|
|
|
$
|
1,510,269
|
|
(1)
|
Our
$200.0 million
senior secured revolving credit facility has a letter of credit sub-limit of
$25.0 million
. Principal is payable at maturity. Interest is payable monthly in arrears, at LIBOR plus
1.25%
to
1.75%
(
2.25%
as of
June 30, 2016
). As of
June 30, 2016
, the
borrowing base of our revolving credit facility is $176.0 million, which is adjusted based on the amount of our eligible accounts receivable
. Additionally, we had $
0.5 million
of standby letters of credit outstanding. As of
June 30, 2016
,
$75.5 million
was available to be drawn.
|
(2)
|
In June 2012, we entered into a
$41.0 million
revolving credit facility. In March 2016, we increased the facility to
$100.0 million
. In June 2016, we amended the maturity date to June 2017. Principal is payable at maturity. Interest is due monthly in arrears, at a foreign currency funding-linked base rate plus
1.60%
(
3.03%
as of
June 30, 2016
). As of
June 30, 2016
,
$45.0 million
was available to be drawn.
|
(3)
|
In May 2015, we entered into a term loan agreement pursuant to which we may borrow up to
$150.0 million
through November 2016 for capital expenditures. Principal is payable at maturity. Interest is payable quarterly in arrears, at a fund floating rate plus
1.60%
(
2.53%
as of
June 30, 2016
). At
June 30, 2016
,
$86.0 million
was available to be borrowed.
|
(4)
|
We entered into various short-term term loans which mature semi-annually. Interest is paid monthly, at TIBOR plus
0.30%
to
0.38%
(weighted average of
0.35%
as of
June 30, 2016
). Principal is payable in monthly installments. As of
June 30, 2016
,
$5.3 million
was available to be drawn.
|
(5)
|
In November 2015, we entered into a
$39.0 million
revolving credit facility. Principal is payable at maturity. Interest is due monthly, at TAIFX plus a bank determined spread (
1.74%
as of
June 30, 2016
). As of
June 30, 2016
,
$19.0 million
was available to be drawn.
|
|
For the Three Months Ended
June 30, |
|
For the Six Months Ended
June 30, |
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(In thousands)
|
||||||||||||||
Service cost
|
$
|
8,490
|
|
|
$
|
1,209
|
|
|
$
|
16,660
|
|
|
$
|
2,428
|
|
Interest cost
|
924
|
|
|
760
|
|
|
1,828
|
|
|
1,526
|
|
||||
Expected return on plan assets
|
(956
|
)
|
|
(850
|
)
|
|
(1,903
|
)
|
|
(1,706
|
)
|
||||
Amortization of prior service cost
|
8
|
|
|
8
|
|
|
17
|
|
|
17
|
|
||||
Recognized actuarial loss
|
23
|
|
|
25
|
|
|
47
|
|
|
46
|
|
||||
Net periodic pension cost
|
$
|
8,489
|
|
|
$
|
1,152
|
|
|
$
|
16,649
|
|
|
$
|
2,311
|
|
|
For the Three Months Ended
June 30, |
|
For the Six Months Ended
June 30, |
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(In thousands)
|
||||||||||||||
Defined contribution expense
|
$
|
2,231
|
|
|
$
|
2,230
|
|
|
$
|
5,166
|
|
|
$
|
5,124
|
|
|
June 30,
2016 |
|
December 31,
2015 |
||||
|
(In thousands)
|
||||||
Cash equivalent money market funds (Level 1)
|
$
|
129,072
|
|
|
$
|
81,473
|
|
Restricted cash money market funds (Level 1)
|
2,000
|
|
|
2,000
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||||||||||
|
Fair
Value
|
|
Carrying
Value
|
|
Fair
Value
|
|
Carrying
Value
|
||||||||
|
(In thousands)
|
||||||||||||||
Senior notes (Level 1)
|
$
|
919,771
|
|
|
$
|
921,752
|
|
|
$
|
902,563
|
|
|
$
|
921,384
|
|
Revolving credit facilities and term loans (Level 2)
|
702,696
|
|
|
714,967
|
|
|
664,085
|
|
|
665,655
|
|
||||
Total debt
|
$
|
1,622,467
|
|
|
$
|
1,636,719
|
|
|
$
|
1,566,648
|
|
|
$
|
1,587,039
|
|
|
December 31, 2015
|
||||||||||
|
As Reported
|
|
Adjustments
|
|
As Revised
|
||||||
|
(In thousands)
|
||||||||||
Goodwill
|
$
|
19,443
|
|
|
$
|
3,966
|
|
|
$
|
23,409
|
|
Total assets
|
4,022,462
|
|
|
3,966
|
|
|
4,026,428
|
|
|||
Other non-current liabilities
|
101,679
|
|
|
11,563
|
|
|
113,242
|
|
|||
Total liabilities
|
2,797,329
|
|
|
11,563
|
|
|
2,808,892
|
|
|||
Accumulated deficit
|
(460,150
|
)
|
|
(7,597
|
)
|
|
(467,747
|
)
|
|||
Total Amkor stockholders’ equity
|
1,207,883
|
|
|
(7,597
|
)
|
|
1,200,286
|
|
|||
Total equity
|
1,225,133
|
|
|
(7,597
|
)
|
|
1,217,536
|
|
|||
Total liabilities and equity
|
4,022,462
|
|
|
3,966
|
|
|
4,026,428
|
|
|
For the Three Months Ended
June 30, 2015 |
|
For the Six Months Ended
June 30, 2015 |
||||||||||||||||||||
|
As Reported
|
|
Adjustments
|
|
As Revised
|
|
As Reported
|
|
Adjustments
|
|
As Revised
|
||||||||||||
|
(In thousands, except per share data)
|
||||||||||||||||||||||
Equity in earnings of J-Devices
|
$
|
7,566
|
|
|
$
|
(2,251
|
)
|
|
$
|
5,315
|
|
|
$
|
13,804
|
|
|
$
|
(4,434
|
)
|
|
$
|
9,370
|
|
Net income
|
10,201
|
|
|
(2,251
|
)
|
|
7,950
|
|
|
39,898
|
|
|
(4,434
|
)
|
|
35,464
|
|
||||||
Net income attributable to Amkor
|
9,578
|
|
|
(2,251
|
)
|
|
7,327
|
|
|
38,359
|
|
|
(4,434
|
)
|
|
33,925
|
|
||||||
Net income attributable to Amkor per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
$
|
0.04
|
|
|
$
|
(0.01
|
)
|
|
$
|
0.03
|
|
|
$
|
0.16
|
|
|
$
|
(0.02
|
)
|
|
$
|
0.14
|
|
Diluted
|
0.04
|
|
|
(0.01
|
)
|
|
0.03
|
|
|
0.16
|
|
|
(0.02
|
)
|
|
0.14
|
|
|
For the Three Months Ended
June 30, 2015 |
|
For the Six Months Ended
June 30, 2015 |
||||||||||||||||||||
|
As Reported
|
|
Adjustments
|
|
As Revised
|
|
As Reported
|
|
Adjustments
|
|
As Revised
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Net income
|
$
|
10,201
|
|
|
$
|
(2,251
|
)
|
|
$
|
7,950
|
|
|
$
|
39,898
|
|
|
$
|
(4,434
|
)
|
|
$
|
35,464
|
|
Equity interest in J-Devices' other comprehensive loss, net of tax
|
(5,388
|
)
|
|
143
|
|
|
(5,245
|
)
|
|
(4,050
|
)
|
|
165
|
|
|
(3,885
|
)
|
||||||
Total other comprehensive loss
|
(5,356
|
)
|
|
143
|
|
|
(5,213
|
)
|
|
(4,118
|
)
|
|
165
|
|
|
(3,953
|
)
|
||||||
Comprehensive income
|
4,845
|
|
|
(2,108
|
)
|
|
2,737
|
|
|
35,780
|
|
|
(4,269
|
)
|
|
31,511
|
|
||||||
Comprehensive income attributable to Amkor
|
4,222
|
|
|
(2,108
|
)
|
|
2,114
|
|
|
34,241
|
|
|
(4,269
|
)
|
|
29,972
|
|
|
For the Three Months Ended March 31, 2016
|
||||||||||
|
As Reported
|
|
Adjustments
|
|
As Revised
|
||||||
|
(In thousands)
|
||||||||||
Foreign currency translation
|
$
|
19,864
|
|
|
$
|
(541
|
)
|
|
$
|
19,323
|
|
Total other comprehensive income
|
19,888
|
|
|
(541
|
)
|
|
19,347
|
|
|||
Comprehensive income
|
19,483
|
|
|
(541
|
)
|
|
18,942
|
|
|||
Comprehensive income attributable to Amkor
|
19,013
|
|
|
(541
|
)
|
|
18,472
|
|
|
For Six Months Ended June 30, 2015
|
||||||||||
|
As Reported
|
|
Adjustments
|
|
As Revised
|
||||||
|
(In thousands)
|
||||||||||
Net income
|
$
|
39,898
|
|
|
$
|
(4,434
|
)
|
|
$
|
35,464
|
|
Other operating activities and non-cash items
|
(14,179
|
)
|
|
4,434
|
|
|
(9,745
|
)
|
|
For the Three Months Ended
June 30, |
|
For the Six Months Ended
June 30, |
||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Net sales
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Materials
|
37.7
|
%
|
|
37.2
|
%
|
|
37.6
|
%
|
|
36.9
|
%
|
Labor
|
16.0
|
%
|
|
15.7
|
%
|
|
16.1
|
%
|
|
14.9
|
%
|
Other manufacturing costs
|
32.0
|
%
|
|
31.5
|
%
|
|
32.1
|
%
|
|
31.3
|
%
|
Gross margin
|
14.3
|
%
|
|
15.6
|
%
|
|
14.2
|
%
|
|
16.9
|
%
|
Operating income
|
3.3
|
%
|
|
5.2
|
%
|
|
2.9
|
%
|
|
6.3
|
%
|
Net income attributable to Amkor (1)
|
0.5
|
%
|
|
1.0
|
%
|
|
0.2
|
%
|
|
2.3
|
%
|
(1)
|
In the second quarter of 2016, we identified an error in the provision for income taxes in the financial statements for J-Devices for the periods beginning in 2012 through the fourth quarter of 2015. We have revised our previously issued consolidated financial statements to correct our equity in earnings for J-Devices during the impacted periods. Please see Note 1 and Note 17 for additional information.
|
|
For the Three Months Ended
June 30, |
|
For the Six Months Ended
June 30, |
||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
||||||||||||||||||
|
(In thousands, except percentages)
|
||||||||||||||||||||||||||||
Net sales
|
$
|
917,326
|
|
|
$
|
736,722
|
|
|
$
|
180,604
|
|
|
24.5
|
%
|
|
$
|
1,786,008
|
|
|
$
|
1,479,597
|
|
|
$
|
306,411
|
|
|
20.7
|
%
|
|
For the Three Months Ended
June 30, |
|
For the Six Months Ended
June 30, |
||||||||||||||||||||
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
||||||||||||
|
(In thousands, except percentages)
|
||||||||||||||||||||||
Gross profit
|
$
|
131,606
|
|
|
$
|
115,098
|
|
|
$
|
16,508
|
|
|
$
|
254,490
|
|
|
$
|
250,045
|
|
|
$
|
4,445
|
|
Gross margin
|
14.3
|
%
|
|
15.6
|
%
|
|
(1.3
|
)%
|
|
14.2
|
%
|
|
16.9
|
%
|
|
(2.7
|
)%
|
|
For the Three Months Ended
June 30, |
|
For the Six Months Ended
June 30, |
||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
||||||||||||||||||
|
(In thousands, except percentages)
|
||||||||||||||||||||||||||||
Selling, general and administrative
|
$
|
70,896
|
|
|
$
|
56,435
|
|
|
$
|
14,461
|
|
|
25.6
|
%
|
|
$
|
144,531
|
|
|
$
|
119,377
|
|
|
$
|
25,154
|
|
|
21.1
|
%
|
|
For the Three Months Ended
June 30, |
|
For the Six Months Ended
June 30, |
||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
||||||||||||||||||
|
(In thousands, except percentages)
|
||||||||||||||||||||||||||||
Research and development
|
$
|
30,168
|
|
|
$
|
20,020
|
|
|
$
|
10,148
|
|
|
50.7
|
%
|
|
$
|
57,323
|
|
|
$
|
38,046
|
|
|
$
|
19,277
|
|
|
50.7
|
%
|
|
For the Three Months Ended
June 30, |
|
For the Six Months Ended
June 30, |
||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
||||||||||||||||||
|
(In thousands, except percentages)
|
||||||||||||||||||||||||||||
Interest expense, including related party
|
$
|
22,058
|
|
|
$
|
24,087
|
|
|
$
|
(2,029
|
)
|
|
(8.4
|
)%
|
|
$
|
39,492
|
|
|
$
|
49,106
|
|
|
$
|
(9,614
|
)
|
|
(19.6
|
)%
|
Foreign currency (gain) loss, net
|
759
|
|
|
(1,459
|
)
|
|
$
|
2,218
|
|
|
>(100)%
|
|
|
4,382
|
|
|
(1,252
|
)
|
|
$
|
5,634
|
|
|
>(100)%
|
|
||||
Other (income) expense, net
|
(1,001
|
)
|
|
8,749
|
|
|
(9,750
|
)
|
|
>(100)%
|
|
|
(1,432
|
)
|
|
8,044
|
|
|
(9,476
|
)
|
|
>(100)%
|
|
||||||
Total other expense, net
|
$
|
21,816
|
|
|
$
|
31,377
|
|
|
$
|
(9,561
|
)
|
|
(30.5
|
)%
|
|
$
|
42,442
|
|
|
$
|
55,898
|
|
|
$
|
(13,456
|
)
|
|
(24.1
|
)%
|
|
For the Three Months Ended
June 30, |
|
For the Six Months Ended
June 30, |
||||||||||||||||||||
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
||||||||||||
|
(In thousands, except percentages)
|
||||||||||||||||||||||
Income tax expense
|
$
|
3,360
|
|
|
$
|
4,631
|
|
|
$
|
(1,271
|
)
|
|
$
|
5,233
|
|
|
$
|
10,630
|
|
|
$
|
(5,397
|
)
|
|
For the Six Months Ended
June 30, |
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Operating activities
|
$
|
273,199
|
|
|
$
|
228,281
|
|
Investing activities
|
(356,355
|
)
|
|
(196,159
|
)
|
||
Financing activities
|
40,522
|
|
|
(39,771
|
)
|
|
For the Six Months Ended
June 30, |
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Net cash provided by operating activities
|
$
|
273,199
|
|
|
$
|
228,281
|
|
Payments for property, plant and equipment
|
(355,974
|
)
|
|
(194,360
|
)
|
||
Free cash flow
|
$
|
(82,775
|
)
|
|
$
|
33,921
|
|
|
|
|
Payments Due for Year Ending December 31,
|
||||||||||||||||||||||||
|
Total
|
|
2016 -
Remaining
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
Thereafter
|
||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||
Total debt
|
$
|
1,639,938
|
|
|
$
|
33,848
|
|
|
$
|
69,733
|
|
|
$
|
127,386
|
|
|
$
|
250,000
|
|
|
$
|
234,000
|
|
|
$
|
924,971
|
|
Scheduled interest payment obligations (1)
|
412,371
|
|
|
39,980
|
|
|
78,977
|
|
|
75,677
|
|
|
74,065
|
|
|
63,484
|
|
|
80,188
|
|
|||||||
Purchase obligations (2)
|
107,850
|
|
|
93,462
|
|
|
2,925
|
|
|
5,205
|
|
|
1,601
|
|
|
1,215
|
|
|
3,442
|
|
|||||||
Operating lease obligations
|
66,386
|
|
|
11,826
|
|
|
18,019
|
|
|
10,208
|
|
|
8,763
|
|
|
5,203
|
|
|
12,367
|
|
|||||||
Severance obligations (3)
|
140,719
|
|
|
7,490
|
|
|
13,430
|
|
|
12,090
|
|
|
10,876
|
|
|
9,788
|
|
|
87,045
|
|
|||||||
Settlement payments (4)
|
96,875
|
|
|
19,375
|
|
|
38,750
|
|
|
38,750
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total contractual obligations
|
$
|
2,464,139
|
|
|
$
|
205,981
|
|
|
$
|
221,834
|
|
|
$
|
269,316
|
|
|
$
|
345,305
|
|
|
$
|
313,690
|
|
|
$
|
1,108,013
|
|
(1)
|
Scheduled interest payment obligations were calculated using stated coupon rates for fixed rate debt and interest rates applicable at
June 30, 2016
, for variable rate debt.
|
(2)
|
Represents off-balance sheet purchase obligations for capital expenditures and long-term supply contracts outstanding at
June 30, 2016
.
|
(3)
|
Represents estimated benefit payments for our Korean subsidiary severance plan.
|
(4)
|
Represents settlement payments for patent license litigation. At
June 30, 2016
, the total obligation is
$96.9 million
of which
$34.1 million
is a current liability,
$55.8 million
is a non-current liability and
$7.0 million
will be imputed into interest over time.
|
•
|
$49.7 million
of net foreign pension plan obligations, for which the timing and actual amount of impact on our future cash flow is uncertain.
|
•
|
$22.2 million
net liability associated with unrecognized tax benefits. Due to the uncertainty regarding the amount and the timing of any future cash outflows associated with our unrecognized tax benefits, we are unable to reasonably estimate the amount and period of ultimate settlement, if any, with the various taxing authorities.
|
|
2016 - Remaining
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
Thereafter
|
|
Total
|
|
Fair Value
|
||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||||||||
Debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed rate debt
|
$
|
7,366
|
|
|
$
|
14,733
|
|
|
$
|
7,386
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
924,971
|
|
|
$
|
954,456
|
|
|
$
|
956,892
|
|
Average interest rate
|
0.5
|
%
|
|
0.5
|
%
|
|
0.5
|
%
|
|
—
|
%
|
|
—
|
%
|
|
6.5
|
%
|
|
6.3
|
%
|
|
|
|||||||||
Variable rate debt
|
$
|
26,482
|
|
|
$
|
55,000
|
|
|
$
|
120,000
|
|
|
$
|
250,000
|
|
|
$
|
234,000
|
|
|
$
|
—
|
|
|
$
|
685,482
|
|
|
$
|
665,575
|
|
Average interest rate
|
0.4
|
%
|
|
3.0
|
%
|
|
3.2
|
%
|
|
2.9
|
%
|
|
3.0
|
%
|
|
—
|
%
|
|
2.9
|
%
|
|
|
|||||||||
Total debt
|
$
|
33,848
|
|
|
$
|
69,733
|
|
|
$
|
127,386
|
|
|
$
|
250,000
|
|
|
$
|
234,000
|
|
|
$
|
924,971
|
|
|
$
|
1,639,938
|
|
|
$
|
1,622,467
|
|
•
|
fluctuation in demand for semiconductors and conditions in the semiconductor industry generally, as well as by specific customers, such as inventory reductions by our customers impacting demand in key markets;
|
•
|
our ability to achieve our major growth objectives, including: transitioning second-wave customers to advanced packages; expanding our sales to customers in Greater China and, in particular, the mid-level and entry-level tiers of the mobile device market; and increasing our share of the automotive market;
|
•
|
changes in our capacity and capacity utilization rates;
|
•
|
changes in average selling prices which can occur quickly due to the absence of long term agreements on price;
|
•
|
changes in the mix of the semiconductor packaging and test services that we sell;
|
•
|
the development, transition and ramp to high volume manufacture of more advanced silicon nodes and evolving wafer, packaging and test technologies, may cause production delays, lower manufacturing yields and supply constraints for new wafers and other materials;
|
•
|
absence of backlog, the short-term nature of our customers’ commitments, double bookings by customers and deterioration in customer forecasts and the impact of these factors, including the possible delay, rescheduling and cancellation of large orders, or the timing and volume of orders relative to our production capacity;
|
•
|
changes in costs, quality, availability and delivery times of raw materials, components and equipment;
|
•
|
changes in labor costs to perform our services;
|
•
|
wage inflation and fluctuations in commodity prices, including gold, copper and other precious metals;
|
•
|
the timing of expenditures in anticipation of future orders;
|
•
|
changes in effective tax rates;
|
•
|
the availability and cost of financing;
|
•
|
intellectual property transactions and disputes;
|
•
|
high leverage and restrictive covenants;
|
•
|
warranty and product liability claims and the impact of quality excursions and customer disputes and returns;
|
•
|
costs associated with legal claims, indemnification obligations, judgments and settlements;
|
•
|
international events, such as the United Kingdom's vote to leave the European Union, political instability, civil disturbances or environmental or natural events, such as earthquakes like the recent ones in Japan, that impact our operations;
|
•
|
pandemic illnesses that may impact our labor force and our ability to travel;
|
•
|
costs of acquisitions and divestitures and difficulties integrating acquisitions;
|
•
|
our ability to attract and retain qualified personnel to support our global operations;
|
•
|
fluctuations in foreign exchange rates;
|
•
|
fluctuations in our manufacturing yields;
|
•
|
our ability to penetrate new end markets or expand our business in existing end markets;
|
•
|
dependence on key customers or concentration of customers in certain end markets, such as mobile communications and automotive and
|
•
|
restructuring charges, asset write-offs and impairments.
|
•
|
their desire to realize higher utilization of their existing packaging and test capacity, especially during downturns in the semiconductor industry;
|
•
|
their unwillingness to disclose proprietary technology;
|
•
|
their possession of more advanced packaging and test technologies and
|
•
|
the guaranteed availability of their own packaging and test capacity.
|
•
|
make it more difficult for us to satisfy our obligations with respect to our indebtedness, including our obligations under our indentures to purchase notes tendered as a result of a change in control of Amkor;
|
•
|
increase our vulnerability to general adverse economic and industry conditions;
|
•
|
limit our ability to fund future working capital, capital expenditures, research and development and other business opportunities, including joint ventures and acquisitions;
|
•
|
require us to dedicate a substantial portion of our cash flow from operations to service payments of interest and principal on our debt, thereby reducing the availability of our cash flow to fund future working capital, capital expenditures, research and development expenditures and other general corporate requirements;
|
•
|
increase the volatility of the price of our common stock;
|
•
|
limit our flexibility to react to changes in our business and the industry in which we operate;
|
•
|
place us at a competitive disadvantage to any of our competitors that have less debt;
|
•
|
limit, along with the financial and other restrictive covenants in our indebtedness, among other things, our ability to borrow additional funds;
|
•
|
limit our ability to refinance our existing indebtedness, particularly during periods of adverse credit market conditions when refinancing indebtedness may not be available under interest rates and other terms acceptable to us or at all and
|
•
|
increase our cost of borrowing.
|
•
|
changes in consumer demand resulting from deteriorating conditions in local economies;
|
•
|
regulations and policies imposed by U.S. or foreign governments, such as tariffs, customs, duties and other restrictive trade barriers, antitrust and competition, tax, currency and banking, privacy, labor, environmental, health and safety;
|
•
|
laws, rules, regulations and policies within China and other countries that may favor domestic companies over non-domestic companies, including customer- or government-supported efforts to promote the development and growth of local competitors;
|
•
|
the payment of dividends and other payments by non-U.S. subsidiaries may be subject to prohibitions, limitations or taxes in local jurisdictions;
|
•
|
fluctuations in currency exchange rates, particularly with the recent acquisition of J-Devices;
|
•
|
political and social conditions, such as civil unrest and terrorism;
|
•
|
disruptions or delays in shipments caused by customs brokers or government agencies;
|
•
|
difficulties in attracting and retaining qualified personnel and managing foreign operations, including foreign labor disruptions;
|
•
|
difficulty in enforcing contractual rights and protecting our intellectual property rights;
|
•
|
potentially adverse tax consequences resulting from tax laws in the U.S. and in foreign jurisdictions in which we operate and
|
•
|
local business and cultural factors that differ from our normal standards and practices, including business practices that we are prohibited from engaging in by the Foreign Corrupt Practices Act (FCPA) and other anti-corruption laws and regulations.
|
•
|
we may face delays in the design and implementation of the system;
|
•
|
the cost of the systems may exceed our plans and expectations and
|
•
|
disruptions resulting from the implementation or integration of the systems may impact our ability to process transactions and delay shipments to customers, impact our results of operations or financial condition or harm our control environment.
|
•
|
increasing the scope, geographic diversity and complexity of our operations;
|
•
|
conforming an acquired company's standards, practices, systems and controls with our operations;
|
•
|
increasing complexity from combining recent acquisitions of an acquired business;
|
•
|
unexpected losses of key employees or customers of an acquired business; other difficulties in the assimilation of acquired operations, technologies or products and
|
•
|
diversion of management and other resources from other parts of our operations and adverse effects on existing business relationships with customers.
|
•
|
use a significant portion of our available cash;
|
•
|
issue equity securities, which may dilute the ownership of current stockholders;
|
•
|
incur substantial debt;
|
•
|
incur or assume known or unknown contingent liabilities and
|
•
|
incur large, immediate accounting write offs and face antitrust or other regulatory inquiries or actions.
|
•
|
our future financial condition, results of operations and cash flows;
|
•
|
general market conditions for financing;
|
•
|
volatility in fixed income, credit and equity markets and
|
•
|
economic, political and other global conditions.
|
•
|
discontinue the use of certain processes or cease to provide the services at issue, which could curtail our business;
|
•
|
pay substantial damages;
|
•
|
develop non-infringing technologies, which may not be feasible or
|
•
|
acquire licenses to such technology, which may not be available on commercially reasonable terms or at all.
|
•
|
contaminants in the manufacturing environment;
|
•
|
human error;
|
•
|
equipment malfunction;
|
•
|
changing processes to address environmental requirements;
|
•
|
defective raw materials or
|
•
|
defective plating services.
|
Period
|
|
Total Number of Shares Purchased (a)
|
|
Average Price Paid Per Share ($)
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (b)
|
|
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs ($) (b)
|
||||||
|
|
|
|
|
|
|
|
|
||||||
April 1 - April 30
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
91,586,032
|
|
May 1 - May 31
|
|
20,980
|
|
|
5.66
|
|
|
—
|
|
|
91,586,032
|
|
||
June 1 - June 30
|
|
—
|
|
|
—
|
|
|
—
|
|
|
91,586,032
|
|
||
Total
|
|
20,980
|
|
|
$
|
5.66
|
|
|
—
|
|
|
|
(a)
|
Represents shares of common stock surrendered to us to satisfy tax withholding obligations associated with the vesting of restricted shares issued to employees.
|
(b)
|
Our Board of Directors previously authorized the repurchase of up to
$300 million
of our common stock,
$150 million
in August 2011 and
$150 million
in February 2012, exclusive of any fees, commissions or other expenses. For the
three months ended June 30, 2016
, we made no common stock purchases, and at
June 30, 2016
, approximately
$91.6 million
was available pursuant to the stock repurchase program.
|
|
|
|
|
By:
|
/s/ Joanne Solomon
|
|
|
Joanne Solomon
|
|
|
Executive Vice President and
|
|
|
Chief Financial Officer, Chief
|
|
|
Accounting Officer and Duly
|
|
|
Authorized Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Amkor Technology, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.
|
|
/s/ Stephen D. Kelley
|
|
Stephen D. Kelley
|
|
President and Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Amkor Technology, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.
|
|
/s/ Joanne Solomon
|
|
Joanne Solomon
|
|
Executive Vice President and
Chief Financial Officer
|
|
/s/ Stephen D. Kelley
|
|
Stephen D. Kelley
|
|
President and Chief Executive Officer
|
|
/s/ Joanne Solomon
|
|
Joanne Solomon
|
|
Executive Vice President and
Chief Financial Officer
|
|
Page
|
|
For the Year Ended December 31,
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
|
(As Restated)
|
|
(As Restated)
|
|
(As Restated)
|
||||||
|
|
|
|
|
(unaudited)
|
||||||
|
(In thousands)
|
||||||||||
Net sales
|
$
|
812,938
|
|
|
$
|
923,020
|
|
|
$
|
825,135
|
|
Cost of sales
|
708,212
|
|
|
799,778
|
|
|
741,357
|
|
|||
Gross profit
|
104,726
|
|
|
123,242
|
|
|
83,778
|
|
|||
Selling, general and administrative
|
44,757
|
|
|
50,605
|
|
|
51,306
|
|
|||
Research and development
|
16,522
|
|
|
15,914
|
|
|
11,633
|
|
|||
Total operating expenses
|
61,279
|
|
|
66,519
|
|
|
62,939
|
|
|||
Operating income
|
43,447
|
|
|
56,723
|
|
|
20,839
|
|
|||
Interest expense
|
1,243
|
|
|
2,549
|
|
|
3,481
|
|
|||
Other income, net
|
(286
|
)
|
|
(14,464
|
)
|
|
(3,339
|
)
|
|||
Total other expense (income), net
|
957
|
|
|
(11,915
|
)
|
|
142
|
|
|||
Income before taxes
|
42,490
|
|
|
68,638
|
|
|
20,697
|
|
|||
Income tax expense
|
21,836
|
|
|
19,967
|
|
|
4,859
|
|
|||
Net income
|
$
|
20,654
|
|
|
$
|
48,671
|
|
|
$
|
15,838
|
|
|
For the Year Ended December 31,
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
|
(As Restated)
|
|
(As Restated)
|
|
(As Restated)
|
||||||
|
|
|
|
|
(unaudited)
|
||||||
|
(In thousands)
|
||||||||||
Net income
|
$
|
20,654
|
|
|
$
|
48,671
|
|
|
$
|
15,838
|
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
||||||
Adjustments to unrealized components of defined benefit pension plans
|
523
|
|
|
(826
|
)
|
|
1,846
|
|
|||
Foreign currency translation adjustment
|
(142
|
)
|
|
(30,169
|
)
|
|
(27,584
|
)
|
|||
Total other comprehensive income (loss)
|
381
|
|
|
(30,995
|
)
|
|
(25,738
|
)
|
|||
Comprehensive income (loss)
|
$
|
21,035
|
|
|
$
|
17,676
|
|
|
$
|
(9,900
|
)
|
|
December 31,
|
||||||
|
2015
|
|
2014
|
||||
|
(As Restated)
|
|
(As Restated)
|
||||
|
(In thousands,
except share data)
|
||||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
127,968
|
|
|
$
|
115,841
|
|
Accounts receivable
|
180,177
|
|
|
214,164
|
|
||
Inventories
|
40,611
|
|
|
33,053
|
|
||
Other current assets
|
2,363
|
|
|
22,467
|
|
||
Total current assets
|
351,119
|
|
|
385,525
|
|
||
Property, plant and equipment, net
|
201,323
|
|
|
197,393
|
|
||
Other assets
|
13,202
|
|
|
7,533
|
|
||
Total assets
|
$
|
565,644
|
|
|
$
|
590,451
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Short-term borrowings and current portion of long-term debt
|
$
|
36,770
|
|
|
$
|
35,652
|
|
Trade accounts payable
|
173,744
|
|
|
165,619
|
|
||
Capital expenditures payable
|
29,471
|
|
|
28,837
|
|
||
Accrued expenses
|
48,189
|
|
|
71,515
|
|
||
Total current liabilities
|
288,174
|
|
|
301,623
|
|
||
Long-term debt
|
18,885
|
|
|
44,940
|
|
||
Pension obligations
|
22,250
|
|
|
29,673
|
|
||
Other non-current liabilities
|
18,793
|
|
|
17,708
|
|
||
Total liabilities
|
348,102
|
|
|
393,944
|
|
||
Commitments and contingencies (Note 1)
|
|
|
|
|
|
||
Stockholders' Equity:
|
|
|
|
||||
Common stock, no par value, 160,000 shares authorized, 64,445 shares issued and outstanding in 2015 and 2014
|
53,703
|
|
|
53,703
|
|
||
Additional paid-in capital
|
34,197
|
|
|
34,197
|
|
||
Retained earnings
|
185,527
|
|
|
164,873
|
|
||
Accumulated other comprehensive loss
|
(55,885
|
)
|
|
(56,266
|
)
|
||
Total stockholders' equity
|
217,542
|
|
|
196,507
|
|
||
Total liabilities and stockholders' equity
|
$
|
565,644
|
|
|
$
|
590,451
|
|
|
|
|
|
|
Additional Paid-
In Capital
|
|
Retained Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total Stockholders'
Equity
|
|||||||||||
|
Common Stock
|
|
|
|
|
|||||||||||||||||
|
Shares
|
|
Value
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
(As Restated)
|
|
(As Restated)
|
|
(As Restated)
|
|||||||||||
|
(In thousands, except share data)
|
|||||||||||||||||||||
Balance at December 31, 2012 (unaudited)
|
36,826
|
|
|
$
|
19,506
|
|
|
$
|
—
|
|
|
$
|
100,364
|
|
|
$
|
467
|
|
|
$
|
120,337
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
15,838
|
|
|
—
|
|
|
15,838
|
|
|||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25,738
|
)
|
|
(25,738
|
)
|
|||||
Issuance of stock
|
27,619
|
|
|
34,197
|
|
|
34,197
|
|
|
—
|
|
|
—
|
|
|
68,394
|
|
|||||
Balance at December 31, 2013 (unaudited)
|
64,445
|
|
|
$
|
53,703
|
|
|
$
|
34,197
|
|
|
$
|
116,202
|
|
|
$
|
(25,271
|
)
|
|
$
|
178,831
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
48,671
|
|
|
—
|
|
|
48,671
|
|
|||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(30,995
|
)
|
|
(30,995
|
)
|
|||||
Balance at December 31, 2014
|
64,445
|
|
|
$
|
53,703
|
|
|
$
|
34,197
|
|
|
$
|
164,873
|
|
|
$
|
(56,266
|
)
|
|
$
|
196,507
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
20,654
|
|
|
—
|
|
|
20,654
|
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
381
|
|
|
381
|
|
|||||
Balance at December 31, 2015
|
64,445
|
|
|
$
|
53,703
|
|
|
$
|
34,197
|
|
|
$
|
185,527
|
|
|
$
|
(55,885
|
)
|
|
$
|
217,542
|
|
|
For the Year Ended December 31,
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
|
(As Restated)
|
|
(As Restated)
|
|
(As Restated)
|
||||||
|
|
|
|
|
(unaudited)
|
||||||
|
(In thousands)
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
20,654
|
|
|
$
|
48,671
|
|
|
$
|
15,838
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
70,609
|
|
|
77,238
|
|
|
66,062
|
|
|||
Amortization of deferred debt issuance costs and premiums
|
63
|
|
|
452
|
|
|
761
|
|
|||
Deferred income taxes
|
9,010
|
|
|
(5,218
|
)
|
|
(4,604
|
)
|
|||
Gain from acquisition of business
|
(255
|
)
|
|
(14,739
|
)
|
|
(2,724
|
)
|
|||
Loss on debt retirement
|
311
|
|
|
—
|
|
|
—
|
|
|||
Loss on disposal of fixed assets, net
|
345
|
|
|
2,861
|
|
|
507
|
|
|||
Other, net
|
135
|
|
|
622
|
|
|
1,743
|
|
|||
Changes in assets and liabilities:
|
|
|
|
|
|
||||||
Accounts receivable
|
34,142
|
|
|
(19,627
|
)
|
|
(99,612
|
)
|
|||
Inventories
|
(7,493
|
)
|
|
3,495
|
|
|
32,059
|
|
|||
Other current assets
|
759
|
|
|
149
|
|
|
7,115
|
|
|||
Other assets
|
(2,465
|
)
|
|
(73
|
)
|
|
(1,394
|
)
|
|||
Trade accounts payable
|
7,894
|
|
|
4,943
|
|
|
112,219
|
|
|||
Accrued expenses
|
(17,040
|
)
|
|
16,995
|
|
|
22,022
|
|
|||
Pension obligations
|
(7,210
|
)
|
|
7,501
|
|
|
5,715
|
|
|||
Other non-current liabilities
|
6,003
|
|
|
6,164
|
|
|
(2,609
|
)
|
|||
Net cash provided by operating activities
|
115,462
|
|
|
129,434
|
|
|
153,098
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Payments for property, plant and equipment
|
(70,343
|
)
|
|
(53,171
|
)
|
|
(33,666
|
)
|
|||
Proceeds from sale of property, plant and equipment
|
285
|
|
|
1,941
|
|
|
97
|
|
|||
Acquisition of business, net of cash acquired
|
(1,633
|
)
|
|
(3,425
|
)
|
|
(59,207
|
)
|
|||
Cash received on acquisition of business from Amkor, net of payments
|
—
|
|
|
15,777
|
|
|
—
|
|
|||
Proceeds from short-term investment
|
66
|
|
|
—
|
|
|
|
|
|||
Other investing activities
|
1,535
|
|
|
(11
|
)
|
|
(13
|
)
|
|||
Net cash used in investing activities
|
(70,090
|
)
|
|
(38,889
|
)
|
|
(92,789
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Borrowings under short-term credit facilities
|
38,420
|
|
|
28,248
|
|
|
30,223
|
|
|||
Payments under short-term credit facilities
|
(29,779
|
)
|
|
(29,970
|
)
|
|
(54,323
|
)
|
|||
Proceeds from issuance of long-term debt
|
38,193
|
|
|
—
|
|
|
—
|
|
|||
Payments of long-term debt
|
(72,832
|
)
|
|
(36,705
|
)
|
|
(34,235
|
)
|
|||
Payments of capital lease obligations
|
(1,621
|
)
|
|
(1,794
|
)
|
|
(1,952
|
)
|
|||
Payments of capital lease obligations to Amkor
|
—
|
|
|
—
|
|
|
(8,843
|
)
|
|||
Proceeds from issuance of stock
|
—
|
|
|
—
|
|
|
68,394
|
|
|||
Payments of deferred consideration for acquisition of business from Amkor
|
(8,355
|
)
|
|
—
|
|
|
—
|
|
|||
Net cash (used in) provided by financing activities
|
(35,974
|
)
|
|
(40,221
|
)
|
|
(736
|
)
|
|||
Effect of exchange rate fluctuations on cash and cash equivalents
|
2,729
|
|
|
(18,619
|
)
|
|
(10,574
|
)
|
|||
Net increase in cash and cash equivalents
|
12,127
|
|
|
31,705
|
|
|
48,999
|
|
|||
Cash and cash equivalents, beginning of period
|
115,841
|
|
|
84,136
|
|
|
35,137
|
|
|||
Cash and cash equivalents, end of period
|
$
|
127,968
|
|
|
$
|
115,841
|
|
|
$
|
84,136
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
|
|
|
|||
Cash paid during the period for:
|
|
|
|
|
|
||||||
Interest
|
$
|
1,259
|
|
|
$
|
2,451
|
|
|
$
|
1,551
|
|
Income taxes
|
15,679
|
|
|
6,446
|
|
|
1,406
|
|
|||
Non-cash investing activities:
|
|
|
|
|
|
||||||
Additions to property, plant and equipment included in capital expenditures payable
|
29,471
|
|
|
28,837
|
|
|
19,427
|
|
|||
Equipment acquired through capital leases
|
1,754
|
|
|
2,161
|
|
|
798
|
|
1.
|
Description of Business and Summary of Significant Accounting Policies
|
Buildings and improvements
|
2 to 50 years
|
Machinery and equipment
|
2 to 8 years
|
Software and computer equipment
|
2 to 6 years
|
Furniture, fixtures and other equipment
|
2 to 20 years
|
2.
|
New Accounting Standards
|
|
For the Year Ended December 31,
|
||||||||||||||||||||||||||||||||||
|
2015
|
|
2014
|
|
2013 (unaudited)
|
||||||||||||||||||||||||||||||
|
As Reported
|
|
Adjustment
|
|
As Restated
|
|
As Reported
|
|
Adjustment
|
|
As Restated
|
|
As Reported
|
|
Adjustment
|
|
As Restated
|
||||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||||||||||
Net sales
|
$
|
812,938
|
|
|
$
|
—
|
|
|
$
|
812,938
|
|
|
$
|
923,020
|
|
|
$
|
—
|
|
|
$
|
923,020
|
|
|
$
|
825,135
|
|
|
$
|
—
|
|
|
$
|
825,135
|
|
Cost of sales
|
708,212
|
|
|
|
|
708,212
|
|
|
799,778
|
|
|
|
|
799,778
|
|
|
741,357
|
|
|
|
|
741,357
|
|
||||||||||||
Gross profit
|
104,726
|
|
|
—
|
|
|
104,726
|
|
|
123,242
|
|
|
—
|
|
|
123,242
|
|
|
83,778
|
|
|
—
|
|
|
83,778
|
|
|||||||||
Selling, general and administrative
|
44,757
|
|
|
|
|
44,757
|
|
|
50,605
|
|
|
|
|
50,605
|
|
|
51,306
|
|
|
|
|
51,306
|
|
||||||||||||
Research and development
|
16,522
|
|
|
|
|
16,522
|
|
|
15,914
|
|
|
|
|
15,914
|
|
|
11,633
|
|
|
|
|
11,633
|
|
||||||||||||
Total operating expenses
|
61,279
|
|
|
—
|
|
|
61,279
|
|
|
66,519
|
|
|
—
|
|
|
66,519
|
|
|
62,939
|
|
|
—
|
|
|
62,939
|
|
|||||||||
Operating income
|
43,447
|
|
|
|
|
43,447
|
|
|
56,723
|
|
|
|
|
56,723
|
|
|
20,839
|
|
|
|
|
20,839
|
|
||||||||||||
Interest expense
|
1,243
|
|
|
|
|
1,243
|
|
|
2,549
|
|
|
|
|
2,549
|
|
|
3,481
|
|
|
|
|
3,481
|
|
||||||||||||
Other income, net
|
(286
|
)
|
|
|
|
(286
|
)
|
|
(14,464
|
)
|
|
|
|
(14,464
|
)
|
|
(3,339
|
)
|
|
|
|
(3,339
|
)
|
||||||||||||
Total other expense (income), net
|
957
|
|
|
—
|
|
|
957
|
|
|
(11,915
|
)
|
|
—
|
|
|
(11,915
|
)
|
|
142
|
|
|
—
|
|
|
142
|
|
|||||||||
Income before taxes
|
42,490
|
|
|
—
|
|
|
42,490
|
|
|
68,638
|
|
|
—
|
|
|
68,638
|
|
|
20,697
|
|
|
—
|
|
|
20,697
|
|
|||||||||
Income tax expense
|
12,778
|
|
|
9,058
|
|
|
21,836
|
|
|
18,889
|
|
|
1,078
|
|
|
19,967
|
|
|
4,034
|
|
|
825
|
|
|
4,859
|
|
|||||||||
Net income
|
$
|
29,712
|
|
|
$
|
(9,058
|
)
|
|
$
|
20,654
|
|
|
$
|
49,749
|
|
|
$
|
(1,078
|
)
|
|
$
|
48,671
|
|
|
$
|
16,663
|
|
|
$
|
(825
|
)
|
|
$
|
15,838
|
|
|
December 31,
|
||||||||||||||||||||||
|
2015
|
|
2014
|
||||||||||||||||||||
|
As Reported
|
|
Adjustments
|
|
As Restated
|
|
As Reported
|
|
Adjustments
|
|
As Restated
|
||||||||||||
|
(In thousands, except share data)
|
||||||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
127,968
|
|
|
$
|
—
|
|
|
$
|
127,968
|
|
|
$
|
115,841
|
|
|
$
|
—
|
|
|
$
|
115,841
|
|
Accounts receivable
|
180,177
|
|
|
|
|
180,177
|
|
|
214,164
|
|
|
|
|
214,164
|
|
||||||||
Inventories
|
40,611
|
|
|
|
|
40,611
|
|
|
33,053
|
|
|
|
|
33,053
|
|
||||||||
Other current assets
|
2,363
|
|
|
|
|
2,363
|
|
|
18,340
|
|
|
4,127
|
|
|
22,467
|
|
|||||||
Total current assets
|
351,119
|
|
|
—
|
|
|
351,119
|
|
|
381,398
|
|
|
4,127
|
|
|
385,525
|
|
||||||
Property, plant and equipment, net
|
201,323
|
|
|
|
|
201,323
|
|
|
197,393
|
|
|
|
|
197,393
|
|
||||||||
Other assets
|
13,202
|
|
|
|
|
13,202
|
|
|
6,746
|
|
|
787
|
|
|
7,533
|
|
|||||||
Total assets
|
$
|
565,644
|
|
|
$
|
—
|
|
|
$
|
565,644
|
|
|
$
|
585,537
|
|
|
$
|
4,914
|
|
|
$
|
590,451
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Short-term borrowings and current portion of long-term debt
|
$
|
36,770
|
|
|
$
|
—
|
|
|
$
|
36,770
|
|
|
$
|
35,652
|
|
|
$
|
—
|
|
|
$
|
35,652
|
|
Trade accounts payable
|
173,744
|
|
|
|
|
173,744
|
|
|
165,619
|
|
|
|
|
165,619
|
|
||||||||
Capital expenditures payable
|
29,471
|
|
|
|
|
29,471
|
|
|
28,837
|
|
|
|
|
28,837
|
|
||||||||
Accrued expenses
|
48,189
|
|
|
|
|
48,189
|
|
|
71,515
|
|
|
|
|
71,515
|
|
||||||||
Total current liabilities
|
288,174
|
|
|
—
|
|
|
288,174
|
|
|
301,623
|
|
|
—
|
|
|
301,623
|
|
||||||
Long-term debt
|
18,885
|
|
|
|
|
18,885
|
|
|
44,940
|
|
|
|
|
44,940
|
|
||||||||
Pension obligations
|
22,250
|
|
|
|
|
22,250
|
|
|
29,673
|
|
|
|
|
29,673
|
|
||||||||
Other non-current liabilities
|
7,229
|
|
|
11,564
|
|
|
18,793
|
|
|
10,315
|
|
|
7,393
|
|
|
17,708
|
|
||||||
Total liabilities
|
336,538
|
|
|
11,564
|
|
|
348,102
|
|
|
386,551
|
|
|
7,393
|
|
|
393,944
|
|
||||||
Commitments and contingencies (Note 1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Stockholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Common stock, no par value, 160,000 shares authorized, 64,445 shares issued and outstanding in 2015 and 2014
|
53,703
|
|
|
|
|
53,703
|
|
|
53,703
|
|
|
|
|
53,703
|
|
||||||||
Additional paid-in capital
|
34,197
|
|
|
|
|
34,197
|
|
|
34,197
|
|
|
|
|
34,197
|
|
||||||||
Retained earnings
|
197,727
|
|
|
(12,200
|
)
|
|
185,527
|
|
|
168,015
|
|
|
(3,142
|
)
|
|
164,873
|
|
||||||
Accumulated other comprehensive loss
|
(56,521
|
)
|
|
636
|
|
|
(55,885
|
)
|
|
(56,929
|
)
|
|
663
|
|
|
(56,266
|
)
|
||||||
Total stockholders' equity
|
229,106
|
|
|
(11,564
|
)
|
|
217,542
|
|
|
198,986
|
|
|
(2,479
|
)
|
|
196,507
|
|
||||||
Total liabilities and stockholders' equity
|
$
|
565,644
|
|
|
$
|
—
|
|
|
$
|
565,644
|
|
|
$
|
585,537
|
|
|
$
|
4,914
|
|
|
$
|
590,451
|
|
|
For the Year Ended December 31,
|
||||||||||||||||||||||||||||||||||
|
2015
|
|
2014
|
|
2013 (unaudited)
|
||||||||||||||||||||||||||||||
|
As Reported
|
|
Adjustment
|
|
As Restated
|
|
As Reported
|
|
Adjustment
|
|
As Restated
|
|
As Reported
|
|
Adjustment
|
|
As Restated
|
||||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income
|
$
|
29,712
|
|
|
$
|
(9,058
|
)
|
|
$
|
20,654
|
|
|
$
|
49,749
|
|
|
$
|
(1,078
|
)
|
|
$
|
48,671
|
|
|
$
|
16,663
|
|
|
$
|
(825
|
)
|
|
$
|
15,838
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Depreciation and amortization
|
70,609
|
|
|
|
|
70,609
|
|
|
77,238
|
|
|
|
|
77,238
|
|
|
66,062
|
|
|
|
|
66,062
|
|
||||||||||||
Amortization of deferred debt issuance costs and premiums
|
63
|
|
|
|
|
63
|
|
|
452
|
|
|
|
|
452
|
|
|
761
|
|
|
|
|
761
|
|
||||||||||||
Deferred income taxes
|
5,391
|
|
|
3,619
|
|
|
9,010
|
|
|
112
|
|
|
(5,330
|
)
|
|
(5,218
|
)
|
|
(4,723
|
)
|
|
119
|
|
|
(4,604
|
)
|
|||||||||
Gain from acquisition of business
|
(255
|
)
|
|
|
|
(255
|
)
|
|
(14,739
|
)
|
|
|
|
(14,739
|
)
|
|
(2,724
|
)
|
|
|
|
(2,724
|
)
|
||||||||||||
Loss on debt retirement
|
311
|
|
|
|
|
311
|
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
—
|
|
||||||||||||
(Gain) loss on disposal of fixed assets, net
|
345
|
|
|
|
|
345
|
|
|
2,861
|
|
|
|
|
2,861
|
|
|
507
|
|
|
|
|
507
|
|
||||||||||||
Other, net
|
135
|
|
|
|
|
|
135
|
|
|
622
|
|
|
|
|
|
622
|
|
|
1,743
|
|
|
|
|
|
1,743
|
|
|||||||||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts receivable
|
34,142
|
|
|
|
|
34,142
|
|
|
(19,627
|
)
|
|
|
|
(19,627
|
)
|
|
(99,612
|
)
|
|
|
|
(99,612
|
)
|
||||||||||||
Inventories
|
(7,493
|
)
|
|
|
|
|
(7,493
|
)
|
|
3,495
|
|
|
|
|
|
3,495
|
|
|
32,059
|
|
|
|
|
|
32,059
|
|
|||||||||
Other current assets
|
759
|
|
|
|
|
759
|
|
|
149
|
|
|
|
|
149
|
|
|
7,115
|
|
|
|
|
7,115
|
|
||||||||||||
Other assets
|
(2,465
|
)
|
|
|
|
(2,465
|
)
|
|
(73
|
)
|
|
|
|
(73
|
)
|
|
(1,394
|
)
|
|
|
|
(1,394
|
)
|
||||||||||||
Trade accounts payable
|
7,894
|
|
|
|
|
7,894
|
|
|
4,943
|
|
|
|
|
4,943
|
|
|
112,219
|
|
|
|
|
112,219
|
|
||||||||||||
Accrued expenses
|
(17,040
|
)
|
|
|
|
(17,040
|
)
|
|
16,995
|
|
|
|
|
16,995
|
|
|
22,022
|
|
|
|
|
22,022
|
|
||||||||||||
Pension obligations
|
(7,210
|
)
|
|
|
|
(7,210
|
)
|
|
7,501
|
|
|
|
|
7,501
|
|
|
5,715
|
|
|
|
|
5,715
|
|
||||||||||||
Other non-current liabilities
|
564
|
|
|
5,439
|
|
|
6,003
|
|
|
(244
|
)
|
|
6,408
|
|
|
6,164
|
|
|
(3,315
|
)
|
|
706
|
|
|
(2,609
|
)
|
|||||||||
Net cash provided by operating activities
|
$
|
115,462
|
|
|
$
|
—
|
|
|
$
|
115,462
|
|
|
$
|
129,434
|
|
|
$
|
—
|
|
|
$
|
129,434
|
|
|
$
|
153,098
|
|
|
$
|
—
|
|
|
$
|
153,098
|
|
|
For the Year Ended December 31,
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
(unaudited)
|
||||||
|
(In thousands)
|
||||||||||
Foreign currency loss (gain)
|
$
|
281
|
|
|
$
|
357
|
|
|
$
|
(415
|
)
|
Gain from acquisition of business
|
(255
|
)
|
|
(14,739
|
)
|
|
(2,724
|
)
|
|||
Other income, net
|
(312
|
)
|
|
(82
|
)
|
|
(200
|
)
|
|||
Total other income, net
|
$
|
(286
|
)
|
|
$
|
(14,464
|
)
|
|
$
|
(3,339
|
)
|
|
For the Year Ended December 31,
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
|
(As restated)
|
|
(As restated)
|
|
(As restated)
|
||||||
|
|
|
|
|
(unaudited)
|
||||||
|
(In thousands)
|
||||||||||
Current
|
$
|
12,826
|
|
|
$
|
25,185
|
|
|
$
|
9,463
|
|
Deferred
|
9,010
|
|
|
(5,218
|
)
|
|
(4,604
|
)
|
|||
Total provision
|
$
|
21,836
|
|
|
$
|
19,967
|
|
|
$
|
4,859
|
|
|
For the Year Ended December 31,
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
|
(As restated)
|
|
(As restated)
|
|
(As restated)
|
||||||
|
|
|
|
|
(unaudited)
|
||||||
|
(In thousands)
|
||||||||||
Japan statutory tax at 35% (2015), 36% (2014) and 38% (2013)
|
$
|
15,033
|
|
|
$
|
24,710
|
|
|
$
|
7,815
|
|
Income tax credits generated
|
(3,093
|
)
|
|
(525
|
)
|
|
(3,411
|
)
|
|||
Other taxes
|
9,058
|
|
|
1,078
|
|
|
825
|
|
|||
Bargain purchase gain
|
(90
|
)
|
|
(5,215
|
)
|
|
(550
|
)
|
|||
Change in tax rate
|
701
|
|
|
(27
|
)
|
|
32
|
|
|||
Other
|
227
|
|
|
(54
|
)
|
|
148
|
|
|||
Total
|
$
|
21,836
|
|
|
$
|
19,967
|
|
|
$
|
4,859
|
|
|
December 31,
|
||||||
|
2015
|
|
2014
|
||||
|
|
|
(As Restated)
|
||||
|
(In thousands)
|
||||||
Deferred tax assets:
|
|
|
|
||||
Net operating loss carryforwards
|
$
|
—
|
|
|
$
|
6,426
|
|
Accounts receivable
|
31
|
|
|
36
|
|
||
Income tax credits
|
—
|
|
|
417
|
|
||
Accrued liabilities
|
14,973
|
|
|
27,310
|
|
||
Other long term liabilities
|
605
|
|
|
—
|
|
||
Property, plant and equipment
|
—
|
|
|
1,334
|
|
||
Other
|
780
|
|
|
267
|
|
||
Total deferred tax assets
|
16,389
|
|
|
35,790
|
|
||
Deferred tax liabilities:
|
|
|
|
||||
Property, plant and equipment
|
6,403
|
|
|
13,921
|
|
||
Deferred gain
|
2,281
|
|
|
4,594
|
|
||
Other
|
225
|
|
|
454
|
|
||
Total deferred tax liabilities
|
8,909
|
|
|
18,969
|
|
||
Net deferred tax assets
|
$
|
7,480
|
|
|
$
|
16,821
|
|
Recognized as:
|
|
|
|
||||
Other current assets
|
$
|
—
|
|
|
$
|
19,346
|
|
Other assets
|
7,480
|
|
|
3,686
|
|
||
Other non-current liabilities
|
—
|
|
|
(6,211
|
)
|
||
Total
|
$
|
7,480
|
|
|
$
|
16,821
|
|
|
December 31,
|
||||||
|
2015
|
|
2014
|
||||
|
(In thousands)
|
||||||
Raw materials and purchased components
|
$
|
20,950
|
|
|
$
|
19,038
|
|
Work-in-process
|
19,661
|
|
|
14,015
|
|
||
Total inventories
|
$
|
40,611
|
|
|
$
|
33,053
|
|
|
December 31,
|
||||||
|
2015
|
|
2014
|
||||
|
(In thousands)
|
||||||
Land
|
$
|
23,789
|
|
|
$
|
23,760
|
|
Buildings and improvements
|
55,060
|
|
|
49,579
|
|
||
Machinery and equipment
|
399,140
|
|
|
342,644
|
|
||
Software and computer equipment
|
20,393
|
|
|
16,306
|
|
||
Furniture, fixtures and other equipment
|
46,087
|
|
|
39,769
|
|
||
Machinery and equipment under capital lease
|
7,858
|
|
|
6,264
|
|
||
Construction in progress
|
6,427
|
|
|
10,340
|
|
||
Total property, plant and equipment
|
558,754
|
|
|
488,662
|
|
||
Less accumulated depreciation and amortization
|
(357,431
|
)
|
|
(291,269
|
)
|
||
Total property, plant and equipment, net
|
$
|
201,323
|
|
|
$
|
197,393
|
|
|
December 31,
|
||||||
|
2015
|
|
2014
|
||||
|
(In thousands)
|
||||||
Payroll and benefits
|
$
|
35,362
|
|
|
$
|
36,918
|
|
Income taxes payable
|
1,258
|
|
|
11,322
|
|
||
Acquisition payable (Note 4)
|
—
|
|
|
8,485
|
|
||
Other accrued expenses
|
11,569
|
|
|
14,790
|
|
||
Total accrued expenses
|
$
|
48,189
|
|
|
$
|
71,515
|
|
|
December 31,
|
||||||
|
2015
|
|
2014
|
||||
|
(In thousands)
|
||||||
Short-term credit facilities:
|
|
|
|
||||
Variable rate due February and June 2016 (1)
|
$
|
15,582
|
|
|
$
|
7,848
|
|
Fixed rate at 0.50% due June 2016 (1)
|
5,808
|
|
|
4,144
|
|
||
Term loans:
|
|
|
|
||||
Long-term prime lending rate linked to short-term prime lending rate less 1.275%, due 2015 (2)
|
—
|
|
|
690
|
|
||
TIBOR plus 1.0%, due June 2016 (2)
|
415
|
|
|
1,025
|
|
||
TIBOR plus 1.0%, due November 2016 (2)
|
2,385
|
|
|
6,112
|
|
||
TIBOR plus 1.2%, due 2017 (3)
|
—
|
|
|
17,265
|
|
||
Fixed rate at 2.1%, due 2018 (4)
|
—
|
|
|
43,508
|
|
||
Fixed rate at 0.53%, due April 2018 (5)
|
31,465
|
|
|
—
|
|
||
|
55,655
|
|
|
80,592
|
|
||
Less: Short-term borrowings and current portion of long-term debt
|
(36,770
|
)
|
|
(35,652
|
)
|
||
Long-term debt
|
$
|
18,885
|
|
|
$
|
44,940
|
|
(1)
|
We have ¥2.9 billion ($24.3 million) of short-term credit facilities which mature annually and semi-annually. The facilities have been renewed at each maturity. Principal is payable in monthly installments.
|
(2)
|
In 2011, we entered into ¥7.0 billion ($58.1 million) of term loan agreements which are collateralized by the land, building and certain machineries and equipment located at our facilities in Japan, namely Kitsuki, Usuki, Taketa, Kumamoto, Fukui and Hakodate. Principal is payable in monthly installments.
|
(3)
|
In 2012, we entered into a ¥4.3 billion ($35.7 million) syndicated term loan agreement which is collateralized by the land, factories and equipment located at our facilities and a certain portion of accounts receivable. Principal is payable in quarterly installments. The outstanding balance was repaid in full in March 2015.
|
(4)
|
In 2013, we entered into a ¥7.0 billion ($61.4 million) term loan agreement with Renesas in accordance with the Stock Transfer Agreement which is collateralized by substantially all the land, factories and equipment located at our facilities at J-Semi. Principal is payable in quarterly installments. The outstanding balance was repaid in full in April 2015.
|
(5)
|
In 2015, we entered into ¥4.6 billion ($37.8 million) of term loan agreements. The proceeds were used to repay the term loan with Renesas.
|
|
Interest Rates at December 31,
|
||||
|
2015
|
|
2014
|
||
Short-term credit facilities:
|
|
|
|
||
Variable rate
|
0.46
|
%
|
|
0.53
|
%
|
Fixed rate
|
0.50
|
%
|
|
0.53
|
%
|
Term loan:
|
|
|
|
||
Long-term prime lending rate linked to short-term prime lending rate less 1.275%, due 2015
|
—
|
%
|
|
1.20
|
%
|
TIBOR plus 1.0%, due June 2016
|
1.13
|
%
|
|
1.13
|
%
|
TIBOR plus 1.0%, due November 2016
|
1.13
|
%
|
|
1.13
|
%
|
TIBOR plus 1.2%, due 2017
|
—
|
%
|
|
1.33
|
%
|
Fixed rate at 2.1%, due 2018
|
—
|
%
|
|
2.10
|
%
|
Fixed rate at 0.53%, due April 2018
|
0.53
|
%
|
|
—
|
%
|
|
Total Debt
|
||
|
(In thousands)
|
||
Payments due for the year ending December 31,
|
|
||
2016
|
$
|
36,770
|
|
2017
|
12,579
|
|
|
2018
|
6,306
|
|
|
2019
|
—
|
|
|
2020
|
—
|
|
|
Thereafter
|
—
|
|
|
Total debt
|
$
|
55,655
|
|
|
For the Year Ended
December 31,
|
||||||
|
2015
|
|
2014
|
||||
|
(In thousands)
|
||||||
Change in projected benefit obligation:
|
|
|
|
||||
Projected benefit obligation at beginning of year
|
$
|
37,607
|
|
|
$
|
17,189
|
|
Service cost
|
9,406
|
|
|
9,032
|
|
||
Interest cost
|
264
|
|
|
340
|
|
||
Benefits paid
|
(937
|
)
|
|
(652
|
)
|
||
Actuarial losses (gains)
|
(212
|
)
|
|
2,312
|
|
||
Acquisition (Note 4)
|
—
|
|
|
14,676
|
|
||
Effects of curtailment
|
1,253
|
|
|
—
|
|
||
Settlement
|
(15,544
|
)
|
|
—
|
|
||
Foreign exchange gain
|
22
|
|
|
(5,290
|
)
|
||
Projected benefit obligation at end of year
|
31,859
|
|
|
37,607
|
|
||
Change in plan assets:
|
|
|
|
||||
Fair value of plan assets at beginning of year
|
11,211
|
|
|
9,405
|
|
||
Actual gain on plan assets
|
202
|
|
|
978
|
|
||
Employer contributions
|
18,973
|
|
|
3,100
|
|
||
Settlement
|
(15,544
|
)
|
|
—
|
|
||
Benefits paid
|
(937
|
)
|
|
(653
|
)
|
||
Foreign exchange loss
|
30
|
|
|
(1,619
|
)
|
||
Fair value of plan assets at end of year
|
13,935
|
|
|
11,211
|
|
||
Funded status of the Plans at end of year
|
$
|
(17,924
|
)
|
|
$
|
(26,396
|
)
|
|
Prior Service
Cost
|
|
Actuarial Net
(Loss) Gain
|
|
Total
|
||||||
|
|
|
(As Restated)
|
|
(As Restated)
|
||||||
|
(In thousands)
|
||||||||||
Balance at December 31, 2013, net of tax (unaudited)
|
$
|
(352
|
)
|
|
$
|
1,319
|
|
|
$
|
967
|
|
Amortization included in net periodic pension cost
|
25
|
|
|
—
|
|
|
25
|
|
|||
Net gain arising during period
|
—
|
|
|
(851
|
)
|
|
(851
|
)
|
|||
Adjustments to unrealized components of defined benefit pension plan included in other comprehensive income
|
25
|
|
|
(851
|
)
|
|
(826
|
)
|
|||
Balance at December 31, 2014, net of tax
|
$
|
(327
|
)
|
|
$
|
468
|
|
|
$
|
141
|
|
Amortization included in net periodic pension cost
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
|||
Net gain arising during period
|
—
|
|
|
530
|
|
|
530
|
|
|||
Adjustments to unrealized components of defined benefit pension plan included in other comprehensive income
|
(7
|
)
|
|
530
|
|
|
523
|
|
|||
Balance at December 31, 2015, net of tax
|
$
|
(334
|
)
|
|
$
|
998
|
|
|
$
|
664
|
|
|
|
|
|
|
|
||||||
Estimated amortization to be included in 2016 net periodic pension cost
|
$
|
(48
|
)
|
|
$
|
—
|
|
|
$
|
(48
|
)
|
|
December 31,
|
||||||
|
2015
|
|
2014
|
||||
|
(In thousands)
|
||||||
Plans with underfunded or non-funded projected benefit obligation:
|
|
|
|
||||
Aggregate projected benefit obligation
|
$
|
31,859
|
|
|
$
|
37,607
|
|
Aggregate fair value of plan assets
|
13,935
|
|
|
11,211
|
|
||
Plans with underfunded or non-funded accumulated benefit obligation:
|
|
|
|
||||
Aggregate accumulated benefit obligation
|
30,107
|
|
|
35,455
|
|
||
Aggregate fair value of plan assets
|
13,935
|
|
|
11,211
|
|
|
For the Year Ended December 31,
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
(unaudited)
|
||||||
|
(In thousands)
|
||||||||||
Components of net periodic pension cost and total pension expense:
|
|
|
|
|
|
||||||
Service cost
|
$
|
9,406
|
|
|
$
|
9,032
|
|
|
$
|
7,765
|
|
Interest cost
|
264
|
|
|
340
|
|
|
151
|
|
|||
Expected return on plan assets
|
(188
|
)
|
|
(106
|
)
|
|
(151
|
)
|
|||
Amortization of prior service cost
|
(48
|
)
|
|
(39
|
)
|
|
(43
|
)
|
|||
Recognized actuarial loss
|
—
|
|
|
—
|
|
|
53
|
|
|||
Net periodic pension cost
|
9,434
|
|
|
9,227
|
|
|
7,775
|
|
|||
Curtailment (gain) loss
|
1,253
|
|
|
—
|
|
|
—
|
|
|||
Settlement (gain) loss
|
506
|
|
|
—
|
|
|
—
|
|
|||
Total pension expense
|
$
|
11,193
|
|
|
$
|
9,227
|
|
|
$
|
7,775
|
|
|
For the Year Ended December 31,
|
|||||||
|
2015
|
|
2014
|
|
2013
|
|||
|
|
|
|
|
(unaudited)
|
|||
Discount rate for determining net periodic pension cost
|
1.0
|
%
|
|
1.5
|
%
|
|
1.5
|
%
|
Discount rate for determining benefit obligations at year end
|
1.0
|
%
|
|
1.0
|
%
|
|
1.5
|
%
|
Rate of compensation increase for determining benefit obligations
at year end
|
2.0
|
%
|
|
0.6
|
%
|
|
—
|
%
|
Expected rate of return on plan assets for determining net periodic
pension cost
|
1.5
|
%
|
|
1.5
|
%
|
|
1.0
|
%
|
|
December 31,
|
||||||
|
2015
|
|
2014
|
||||
|
(In thousands)
|
||||||
Cash and cash equivalents (Level 1)
|
$
|
631
|
|
|
$
|
690
|
|
Equity securities
|
|
|
|
||||
Domestic securities (Level 1)
|
2,691
|
|
|
2,188
|
|
||
Foreign securities (Level 1)
|
2,519
|
|
|
2,231
|
|
||
|
5,210
|
|
|
4,419
|
|
||
Bonds
|
|
|
|
||||
Domestic government and corporate bonds (Level 2)
|
6,918
|
|
|
5,014
|
|
||
Foreign government and corporate bonds (Level 2)
|
1,173
|
|
|
1,001
|
|
||
|
8,091
|
|
|
6,015
|
|
||
Other (Level 3)
|
3
|
|
|
87
|
|
||
Total
|
$
|
13,935
|
|
|
$
|
11,211
|
|
|
Payments
|
||
|
(In thousands)
|
||
2016
|
$
|
886
|
|
2017
|
1,228
|
|
|
2018
|
1,778
|
|
|
2019
|
2,317
|
|
|
2020
|
2,965
|
|
|
2021 to 2025
|
25,187
|
|
|
Defined Benefit Pension
|
|
Foreign Currency Translation
|
|
Total
|
||||||
|
(As Restated)
|
|
(As Restated)
|
|
(As Restated)
|
||||||
|
(In thousands)
|
||||||||||
Accumulated other comprehensive income (loss) at December 31, 2013 (unaudited)
|
$
|
967
|
|
|
$
|
(26,238
|
)
|
|
$
|
(25,271
|
)
|
Other comprehensive loss before reclassifications
|
(851
|
)
|
|
(30,169
|
)
|
|
(31,020
|
)
|
|||
Amounts reclassified from accumulated other comprehensive income (loss)
|
25
|
|
|
—
|
|
|
25
|
|
|||
Other comprehensive loss
|
(826
|
)
|
|
(30,169
|
)
|
|
(30,995
|
)
|
|||
Accumulated other comprehensive income (loss) at December 31, 2014
|
$
|
141
|
|
|
$
|
(56,407
|
)
|
|
$
|
(56,266
|
)
|
Other comprehensive income (loss) before reclassifications
|
530
|
|
|
(142
|
)
|
|
388
|
|
|||
Amounts reclassified from accumulated other comprehensive income (loss)
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
|||
Other comprehensive income (loss)
|
523
|
|
|
(142
|
)
|
|
381
|
|
|||
Accumulated other comprehensive income (loss) at December 31, 2015
|
$
|
664
|
|
|
$
|
(56,549
|
)
|
|
$
|
(55,885
|
)
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||
|
Fair
Value
|
|
Carrying
Value
|
|
Fair
Value
|
|
Carrying
Value
|
||||||||
|
(In thousands)
|
||||||||||||||
Short-term credit facilities
|
$
|
21,391
|
|
|
$
|
21,390
|
|
|
$
|
11,994
|
|
|
$
|
11,992
|
|
Term loans
|
34,194
|
|
|
34,265
|
|
|
69,485
|
|
|
68,600
|
|
||||
Total debt
|
$
|
55,585
|
|
|
$
|
55,655
|
|
|
$
|
81,479
|
|
|
$
|
80,592
|
|
|
Lease Payments
|
||
|
(In thousands)
|
||
2016
|
$
|
8,989
|
|
2017
|
5,503
|
|
|
2018
|
2,115
|
|
|
2019
|
1,386
|
|
|
2020
|
790
|
|
|
Thereafter
|
277
|
|
|
Total
|
$
|
19,060
|
|