Company: AMKR
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0001047127-25-000087
Chunk: 202

Company: AMKOR TECHNOLOGY, INC.
Filing Date: 2025-04-29
Form: 10-Q
Item: Part I, Item 2
Chunk 202
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 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., ATT, AATT and ATSH 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 March 31, 2025, our total remaining operating lease obligations and finance lease obligations were $92.8 million and $198.8 million, respectively, with $29.4 million and $62.9 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 March 31, 2025, the purchase obligations were $497.7 million, with $455.8 million payable within 12 months.

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 Directors’ approval.

During the three months ended March 31, 2025, we declared total quarterly cash dividends of $20.4 million, which were paid on April 2, 2025, and we currently anticipate that we will continue to pay quarterly cash dividends in the future.  However, the payment, amount and timing of future dividends remain within the discretion of our Board of Directors and will depend upon our results of operations, financial condition, cash requirements, debt restrictions and other factors.

Capital Resources

We make significant capital expenditures in order to service the demand of our customers, which are primarily focused on investments in advanced packaging and test equipment.  During the three months ended March 31, 2025, our capital expenditures