Pension and Severance Plans (Tables)
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12 Months Ended |
Dec. 31, 2016 |
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| Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] |
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| Schedule Of Accrued Severance Obligation |
The changes to the balance of our severance accrual are as follows: | | | | | | | | | | | | | | For the Year Ended December 31, | | 2016 | | 2015 | | 2014 | | (In thousands) | Balance at the beginning of year | $ | 143,151 |
| | $ | 146,880 |
| | $ | 145,373 |
| Provision of severance benefits | 6,746 |
| | 21,088 |
| | 17,593 |
| Severance payments | (9,429 | ) | | (15,021 | ) | | (10,160 | ) | (Gain) loss on foreign currency | (4,072 | ) | | (9,796 | ) | | (5,926 | ) | | 136,396 |
| | 143,151 |
| | 146,880 |
| Payments remaining with the National Pension Fund | (182 | ) | | (192 | ) | | (219 | ) | Total severance obligation balance at the end of year | 136,214 |
| | 142,959 |
| | 146,661 |
| Less current portion of accrued severance obligation (Note 12) | 14,053 |
| | 14,306 |
| | 13,226 |
| Non-current portion of severance obligation | $ | 122,161 |
| | $ | 128,653 |
| | $ | 133,435 |
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| Schedule of Changes in Projected Benefit Obligations and Fair Value of Plan Assets |
The following table summarizes the Plans’ benefit obligations, fair value of the Plans’ assets and the funded status of the Plans at December 31, 2016 and 2015. | | | | | | | | | | For the Year Ended December 31, | | 2016 | | 2015 | | (In thousands) | Change in projected benefit obligation: | | | | Projected benefit obligation at beginning of year | $ | 109,695 |
| | $ | 74,009 |
| Service cost | 33,854 |
| | 12,481 |
| Interest cost | 3,641 |
| | 2,954 |
| Benefits paid | (8,499 | ) | | (3,924 | ) | Actuarial (gain) loss | (2,801 | ) | | (2,631 | ) | Acquisition (Note 3) | — |
| | 31,859 |
| Settlement | (1,165 | ) | | — |
| Foreign exchange (gain) loss | (3,309 | ) | | (5,053 | ) | Projected benefit obligation at end of year | 131,416 |
| | 109,695 |
| Change in plan assets: | | | | Fair value of plan assets at beginning of year | 76,042 |
| | 54,771 |
| Actual gain (loss) on plan assets | 2,876 |
| | 1,564 |
| Employer contributions | 25,114 |
| | 12,190 |
| Acquisition (Note 3) | — |
| | 13,935 |
| Settlement | (1,165 | ) | | — |
| Benefits paid | (8,499 | ) | | (3,924 | ) | Foreign exchange gain (loss) | (2,897 | ) | | (2,494 | ) | Fair value of plan assets at end of year | 91,471 |
| | 76,042 |
| Funded status of the Plans at end of year | $ | (39,945 | ) | | $ | (33,653 | ) |
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| Schedule of Amounts Recognized in Other Comprehensive Income (Loss) |
The following table summarizes, by component, the change in accumulated other comprehensive income (loss) related to our Plans: | | | | | | | | | | | | | | Prior Service Cost | | Actuarial Net Gain (Loss) | | Total | | (In thousands) | Balance at December 31, 2014, net of tax | $ | 540 |
| | $ | (3,065 | ) | | $ | (2,525 | ) | Amortization included in net periodic pension cost | 20 |
| | 68 |
| | 88 |
| Net gain (loss) arising during period | — |
| | 1,012 |
| | 1,012 |
| Adjustments to unrealized components of defined benefit pension plan included in other comprehensive income (loss) | 20 |
| | 1,080 |
| | 1,100 |
| Balance at December 31, 2015, net of tax | $ | 560 |
| | $ | (1,985 | ) | | $ | (1,425 | ) | Amortization included in net periodic pension cost | 22 |
| | 73 |
| | 95 |
| Net gain (loss) arising during period | — |
| | 2,468 |
| | 2,468 |
| Adjustments to unrealized components of defined benefit pension plan included in other comprehensive income (loss) | 22 |
| | 2,541 |
| | 2,563 |
| Balance at December 31, 2016, net of tax | $ | 582 |
| | $ | 556 |
| | $ | 1,138 |
| | | | | | | Estimated amortization of cost to be included in 2017 net periodic pension cost | $ | 30 |
| | $ | 84 |
| | $ | 114 |
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| Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets |
Information for pension plans with benefit obligations in excess of plan assets are as follows: | | | | | | | | | | December 31, | | 2016 | | 2015 | | (In thousands) | Plans with underfunded or non-funded projected benefit obligation: | | | | Aggregate projected benefit obligation | $ | 131,416 |
| | $ | 101,832 |
| Aggregate fair value of plan assets | 91,471 |
| | 67,622 |
| Plans with underfunded or non-funded accumulated benefit obligation: | | | | Aggregate accumulated benefit obligation | 49,285 |
| | 40,428 |
| Aggregate fair value of plan assets | 16,811 |
| | 13,944 |
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| Components of net periodic pension cost |
The following table summarizes net periodic pension costs: | | | | | | | | | | | | | | For the Year Ended December 31, | | 2016 | | 2015 | | 2014 | | (In thousands) | Components of net periodic pension cost and total pension expense: | | | | | | Service cost | $ | 33,854 |
| | $ | 12,481 |
| | $ | 5,042 |
| Interest cost | 3,641 |
| | 2,954 |
| | 3,051 |
| Expected return on plan assets | (3,788 | ) | | (3,330 | ) | | (3,094 | ) | Amortization of prior service cost | 35 |
| | 34 |
| | 116 |
| Recognized actuarial (gain) loss | 94 |
| | 91 |
| | 141 |
| Net periodic pension cost | 33,836 |
| | 12,230 |
| | 5,256 |
| Settlement (gain) loss | 128 |
| | 27 |
| | 97 |
| Total pension expense | $ | 33,964 |
| | $ | 12,257 |
| | $ | 5,353 |
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| Schedule of Assumptions Used |
The following table summarizes the weighted-average assumptions used in computing the net periodic pension cost and projected benefit obligation at December 31, 2016, 2015 and 2014: | | | | | | | | | | | For the Year Ended December 31, | | 2016 | | 2015 | | 2014 | Discount rate for determining net periodic pension cost | 3.3 | % | | 4.2 | % | | 3.9 | % | Discount rate for determining benefit obligations at year end | 3.1 | % | | 3.3 | % | | 4.2 | % | Rate of compensation increase for determining net periodic pension cost | 3.9 | % | | 4.7 | % | | 4.1 | % | Rate of compensation increase for determining benefit obligations at year end | 3.8 | % | | 3.9 | % | | 4.7 | % | Expected rate of return on plan assets for determining net periodic pension cost | 5.0 | % | | 6.2 | % | | 6.2 | % |
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| Schedule of Allocation of Plan Assets |
The current rate of return assumption targets are based on asset allocation strategies as follows: | | | | | | | | | | | Allocation | | Debt | | Equity | | Other | Japan defined benefit plan | 59 | % | | 39 | % | | 2 | % | Korea defined benefit plan | 40 | % | | 50 | % | | 10 | % | Philippine defined benefit plan | 40 | % | | 56 | % | | 4 | % |
Philippine plan assets included Amkor common stock of $0.6 million at December 31, 2015. The common stock was sold in 2016.
The fair value of our pension plan assets, by asset category utilizing the fair value hierarchy as discussed in Note 16, is as follows: | | | | | | | | | | December 31, | | 2016 | | 2015 | | (In thousands) | Cash and cash equivalents (Level 1) | $ | 10,419 |
| | $ | 14,944 |
| Equity securities | | | | U.S. securities (Level 1) | 12,602 |
| | 19,501 |
| Foreign securities (Level 1) | 8,825 |
| | 10,689 |
| Foreign mutual funds (Level 1) | 12,718 |
| | — |
| | 34,145 |
| | 30,190 |
| Fixed income funds (Level 1) | — |
| | 3,492 |
| Debt securities | | | | U.S. government bonds (Level 1) | 2,859 |
| | 2,187 |
| U.S. corporate bonds (Level 1) | 1,980 |
| | — |
| Foreign government bonds (Level 1) | 11,001 |
| | 880 |
| Foreign government bonds (Level 2) | 7,727 |
| | 8,092 |
| Foreign corporate bonds (Level 2) | 1,693 |
| | — |
| Foreign treasury notes (Level 1) | — |
| | 6,665 |
| Foreign mutual funds (Level 1) | 10,044 |
| | — |
| | 35,304 |
| | 17,824 |
| Foreign guaranteed investment contracts (Level 3) | 2,445 |
| | 842 |
| Taiwan retirement fund (Level 1) | 8,972 |
| | 8,621 |
| Other (Level 2) | 186 |
| | 129 |
| Total | $ | 91,471 |
| | $ | 76,042 |
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| Schedule of Expected Benefit Payments |
The estimated future benefit payments related to our foreign defined benefit plans are as follows: | | | | | | Payments | | (In thousands) | 2017 | $ | 6,884 |
| 2018 | 5,748 |
| 2019 | 7,638 |
| 2020 | 9,579 |
| 2021 | 11,540 |
| 2022 to 2026 | 91,261 |
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