Company: AMKR
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001047127-25-000168
Chunk: 223

Company: AMKOR TECHNOLOGY, INC.
Filing Date: 2025-07-29
Form: 10-Q
Item: Part I, Item 2
Chunk 223
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 this impact, we started to hedge certain net investment positions in foreign subsidiaries by entering into foreign currency forward contracts that are designated as hedges of net investments beginning in April 2024.  The effect of foreign exchange rate translation for these entities, inclusive of our foreign currency forward contracts, was a gain of $6.2 million for the six months ended June 30, 2025 and a loss of $11.4 million for the three months ended June 30, 2024, respectively, and was recognized as an adjustment to equity through other comprehensive income (loss). 

Interest Rate Risk 

We have interest rate risk with respect to our available-for-sale debt investments.  Our investment portfolio consists of various security types and maturities, with our portfolio primarily having maturities of one year or less.  Our primary objective with our investment portfolio is to invest available cash while preserving capital and meeting liquidity needs.  These securities are subject to interest rate risk, decreasing in value if market interest rates increase and increasing in value if market interest rates decrease.  Due to the relatively short-term nature of our investment portfolio, we believe that an immediate change in interest rates will not have a material impact on the fair value of our available-for-sale debt investments.  For information regarding our available-for-sale debt investments, see Note 7 to our Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q.

In addition, we have interest rate risk with respect to our debt.  Our fixed and variable rate debt includes foreign borrowings, revolving credit facilities and senior notes.  Changes in interest rates have different impacts on the fixed and variable rate portions of our debt portfolio.  A change in interest rates on the fixed portion of the debt portfolio impacts the fair value of the debt instrument but has no impact on interest expense or cash flows.  A change in interest rates on the variable portion of the debt portfolio impacts the interest incurred and cash flows but will not have a material impact on the fair value of the instrument.

The table below presents the interest rates, maturities and fair value of our fixed and variable rate debt as of June 30, 2025:

2025 - Remaining*2026202720282029ThereafterTotalFair Value($ in thousands)Fixed rate debt$201,586 $138,037 $519,848 $98,046 $23,745 $— $981,262 $974,633 Average interest rate4.8 %1