Company: AMKR
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001047127-25-000190
Chunk: 222

Company: AMKOR TECHNOLOGY, INC.
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 2
Chunk 222
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, please refer to Note 11 to our Consolidated Financial Statements in Part 1, Item 1 of this Form 10-Q.

Certain of our debt agreements contain affirmative and negative covenants including, among others, covenants to maintain a minimum interest coverage ratio and a maximum consolidated leverage ratio, which restrict our ability to pay 

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dividends and could restrict our operations.  These restrictions do not currently have a material impact on our ability to make dividend payments or stock repurchases.

The debt of Amkor Technology, Inc. is structurally subordinated in right of payment to all existing and future debt and other liabilities of our subsidiaries.  From time to time, Amkor Technology, Inc., ATSH and Guardian guarantee certain debt of our subsidiaries.  

In order to reduce our debt and future cash interest payments, we may from time to time repurchase or redeem our outstanding senior notes for cash or exchange shares of our common stock for our outstanding senior notes.  Any such transaction may be made in the open market, through privately negotiated transactions or otherwise and would be subject to the terms of our indentures and other debt agreements, market conditions and other factors.  

We lease certain machinery and equipment, office space and manufacturing facilities.  As of September 30, 2025, our total remaining operating lease obligations and finance lease obligations were $91.2 million and $183.6 million, respectively, with $28.1 million and $81.7 million payable within 12 months, respectively.  The lease obligations represent our future minimum lease payments including interest payments.

We had off-balance sheet purchase obligations for capital expenditures, long-term supply contracts and other contractual commitments.  As of September 30, 2025, the purchase obligations were $704.8 million, with $642.4 million payable within 12 months.

We enter into customer advance payment agreements from time to time, some of which require standby letters of credit.  As of September 30, 2025, we expect to receive approximately $600 million of advance payments over a two-year period, of which $400 million will require standby letters of credit upon receipt.  

Capital Returns

In November 2022, we announced our intention to return 40 percent to 50 percent of cumulative free cash flow generated over time, beginning 2022.  This return may be in the form of dividends and stock repurchases, subject to a variety of factors, including strategic investments, other capital allocation priorities and Board of