Interim Financial Statements (Policies)

9 Months Ended

Sep. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

The Consolidated Financial Statements and related disclosures as of September 30, 2016, and for the three and nine months ended September 30, 2016 and 2015, are unaudited, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). The December 31, 2015, 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, 2015, filed on Form 10-K with the SEC on February 22, 2016. The results of operations for the three and nine months ended September 30, 2016, 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.

On December 30, 2015, we increased our ownership in J-Devices to 100% (Note 3). As a result, our accounting for J-Devices changed from the equity method to the consolidation method effective December 30, 2015. The operating results of J-Devices were consolidated beginning in 2016.

Accounting Changes and Error Corrections [Text Block]

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 believe that the error is not material to Amkor for the periods impacted and have elected to revise our previously issued consolidated financial statements.  Periods presented herein are based on the revised financial results. See Note 17 for additional information.

17. Revision of Previously Reported Financial Information

In the second quarter of 2016, during our post-acquisition integration of J-Devices, 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.  During those periods we did not control J-Devices and, accordingly, we accounted for our investment in J-Devices using the equity method. As a result of the J-Devices error, our equity in earnings of J-Devices was overstated by the cumulative amount of $8.0 million. We believe that the error is not material to Amkor for the periods impacted and have elected to revise our previously issued consolidated financial statements. We have also recorded the impact of the revision in our purchase accounting for the acquisition of J-Devices on December 30, 2015 (Note 3).  Periods presented herein are based on the revised financial results.

The following table presents the effect of the aforementioned revisions on our Consolidated Balance Sheet as of December 31, 2015:

	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

The following table presents the effect of the aforementioned revisions on our Consolidated Statements of Income for the three and nine months ended September 30, 2015:

	For the Three Months Ended September 30, 2015							For the Nine Months Ended September 30, 2015
	As Reported		Adjustments			As Revised		As Reported		Adjustments			As Revised
	(In thousands, except per share data)
Equity in earnings of J-Devices	$	1,656	$	(439	)	$	1,217	$	15,460	$	(4,873	)	$	10,587
Net income	29,021		(439		)	28,582		68,919		(4,873		)	64,046
Net income attributable to Amkor	28,174		(439		)	27,735		66,533		(4,873		)	61,660
Net income attributable to Amkor per common share:
Basic	$	0.12	$	—		$	0.12	$	0.28	$	(0.02	)	$	0.26
Diluted	0.12		—			0.12		0.28		(0.02		)	0.26

The following tables present the effect of the aforementioned revisions on our Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2015, and the three months ended March 31, 2016:

	For the Three Months Ended September 30, 2015							For the Nine Months Ended September 30, 2015
	As Reported		Adjustments			As Revised		As Reported		Adjustments			As Revised
	(In thousands)
Net income	$	29,021	$	(439	)	$	28,582	$	68,919	$	(4,873	)	$	64,046
Equity interest in J-Devices' other comprehensive loss, net of tax	4,587		(193		)	4,394		537		(28		)	509
Total other comprehensive loss	4,619		(193		)	4,426		501		(28		)	473
Comprehensive income	33,640		(632		)	33,008		69,420		(4,901		)	64,519
Comprehensive income attributable to Amkor	32,793		(632		)	32,161		67,034		(4,901		)	62,133

	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

The following table presents the effect of the aforementioned revisions on our Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2015:

	For the Nine Months Ended September 30, 2015
	As Reported			Adjustments			As Revised
	(In thousands)
Net income	$	68,919		$	(4,873	)	$	64,046
Other operating activities and non-cash items	(14,752		)	4,873			(9,879		)

Use of Estimates

The Consolidated Financial Statements have been prepared in conformity with U.S. GAAP, using management’s best estimates and judgments where appropriate. These estimates and judgments affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ materially from these estimates and judgments.

Goodwill

The balance of goodwill in our Consolidated Balance Sheets reflects adjustments for foreign currency translation.