Company: AMKR
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001047127-25-000030
Chunk: 83

Company: AMKOR TECHNOLOGY, INC.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 83
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 other resources that are readily available to the customer.

The consideration, including variable consideration, is allocated between the distinct services in a combined offering based upon the stand-alone selling prices of the individual services.  Our services involve a high degree of specialization which are unique based on the design and purpose of the customer’s wafers.  Accordingly, our negotiated pricing reflects the customized nature of our services and represents a customer-specific stand-alone selling price.  We recognize revenue as services are rendered, which generally occurs over the course of two to three weeks.  Services are generally billed at completion of each individual packaging or test service or in some instances at the completion of all services in a combined offering. 

We recognize revenue over time as services are rendered because our services create or enhance the customer’s wafer.  We utilize an input method (cost incurred plus estimated margin) to determine the amount of revenue to recognize for in-process, but incomplete, customer orders at a reporting date.  During the period of providing our services, we generally do not control or take ownership of customers’ wafers, nor do we include the cost of the wafer in our cost calculations.  We believe that a cost-based input method is the most appropriate manner to measure how we satisfy our performance obligations to customers because the effort and costs incurred to package and/or test customer wafers are not linear over the duration of these services.

Shipping and handling costs are accounted for as a cost to fulfill our performance obligations to customers.  Accordingly, we record customer payments of shipping and handling costs as a component of net sales, and the costs incurred for shipping and handling are then charged to cost of sales.  

Income Taxes.  We operate in and file income tax returns in various U.S. and non-U.S. jurisdictions which are subject to examination by tax authorities.  The tax returns for years where the statute of limitations remains open in all jurisdictions in which we do business are subject to change upon examination.  We believe that we have estimated and provided adequate accruals for potential additional taxes and related interest expense that may ultimately result from such examinations.  We believe that any additional taxes or related interest over the amounts accrued will not have a material effect on our financial condition, results of operations or cash flows.  However, resolution of these matters involves uncertainties, and there can be no assurance that the outcomes will be favorable.  In addition, changes in the mix of income from our foreign subsidiaries, expiration of conditional reduced tax rates or changes in tax laws