Company: AMKR
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001047127-25-000190
Chunk: 225

Company: AMKOR TECHNOLOGY, INC.
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 2
Chunk 225
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 cash flow may not be comparable to similarly titled measures reported by other companies.

For the Nine Months Ended September 30, 20252024 (In thousands)Net cash provided by operating activities$451,126 $551,260 Payments for property, plant and equipment(472,531)(458,067)Proceeds from sale of and grants for property, plant and equipment8,248 12,639 Free cash flow$(13,157)$105,832 

New Accounting Pronouncements

For information regarding recently adopted and recently issued accounting standards, please refer to Note 1 to our Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q.

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Item 3.        Quantitative and Qualitative Disclosures about Market Risk

Market Risk Sensitivity

We are exposed to market risks, primarily related to foreign currency and interest rate fluctuations.  In the normal course of business, we employ established policies and procedures to manage the exposure to fluctuations in foreign currency values and changes in interest rates. 

Foreign Currency Risk

The U.S. dollar is our reporting and functional currency for our subsidiaries, except for our Japan operations, where the Japanese yen is the functional currency.  In order to reduce our exposure to foreign currency gains and losses, we use natural hedging techniques and forward contracts to mitigate foreign currency risk.

We have foreign currency exchange rate risk associated with the remeasurement of monetary assets and liabilities on our Consolidated Balance Sheets that are denominated in currencies other than the functional currency.  We performed a sensitivity analysis of our foreign currency exposure as of September 30, 2025 to assess the potential impact of fluctuations in exchange rates for all foreign denominated assets and liabilities.  Assuming that all foreign currencies appreciated 10% against the U.S. dollar and taking into account our foreign currency forward contracts, our income before taxes for the nine months ended September 30, 2025 would have been approximately $18 million lower, due to the remeasurement of monetary assets and liabilities. 

In addition, we have foreign currency exchange rate exposure on our results of operations.  For the nine months ended September 30, 2025, approximately 90% of our net sales were denominated in U.S. dollars.  Our remaining net sales were principally denominated in Japanese yen.  For the nine months ended September 30, 2025, approximately 60% of our cost of sales and operating expenses were denominated in U.S. dollars