Company: AMKR
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001047127-25-000168
Chunk: 222

Company: AMKOR TECHNOLOGY, INC.
Filing Date: 2025-07-29
Form: 10-Q
Item: Part I, Item 2
Chunk 222
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 currency.  We performed a sensitivity analysis of our foreign currency exposure as of June 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 six months ended June 30, 2025 would have been approximately $16 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 six months ended June 30, 2025, approximately 90% of our net sales were denominated in U.S. dollars.  Our remaining net sales were 

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principally denominated in Japanese yen.  For the six months ended June 30, 2025, approximately 55% of our cost of sales and operating expenses were denominated in U.S. dollars and were largely for raw materials and costs associated with property, plant and equipment.  The remaining portion of our cost of sales and operating expenses was principally denominated in the Asian currencies where our production facilities are located and largely consisted of labor.  To the extent that the U.S. dollar weakens against these Asian-based currencies, similar foreign currency denominated income and expenses in the future will result in higher sales, higher cost of sales and operating expenses, with cost of sales and operating expenses having the greater impact on our financial results.  Similarly, our sales, cost of sales and operating expenses will decrease if the U.S. dollar strengthens against these foreign currencies.  We performed a sensitivity analysis of our foreign currency exposure as of June 30, 2025 to assess the potential impact of fluctuations in exchange rates for all foreign denominated sales and operating expenses.  Assuming that all foreign currencies appreciated 10% against the U.S. dollar, our operating income for the six months ended June 30, 2025 would have been approximately $78 million lower.

There are inherent limitations in the sensitivity analysis presented, primarily the assumption that foreign exchange rate movements across multiple jurisdictions would change instantaneously in an equal fashion.  As a result, the analysis is unable to reflect the potential effects of more complex market or other changes that could arise which may positively or negatively affect our results of operations.

Our Consolidated Financial Statements are impacted by changes in exchange rates at the entity where the local currency is the functional currency.  To mitigate