Company: AMKR
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001047127-25-000168
Chunk: 119

Company: AMKOR TECHNOLOGY, INC.
Filing Date: 2025-07-29
Form: 10-Q
Item: Part I, Item 1
Chunk 119
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  The agreements governing our indebtedness contain affirmative and negative covenants, including covenants to maintain a minimum interest coverage ratio and a maximum consolidated leverage ratio, which restrict our ability to pay 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.  We were in compliance with all debt covenants at June 30, 2025.

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Table of ContentsAMKOR TECHNOLOGY, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)(Unaudited)

12.    Pension Plans

Foreign Defined Benefit Pension PlansOur subsidiaries in Japan, Korea, Malaysia, the Philippines and Taiwan sponsor defined benefit pension plans.  Charges to expense are based upon actuarial analyses.  The components of net periodic pension cost for these defined benefit pension plans are as follows:For the Three Months Ended June 30,For the Six Months Ended June 30,2025202420252024 (In thousands)Service cost$3,428 $3,356 $6,689 $6,840 Interest cost1,501 1,412 2,935 2,871 Expected return on plan assets(1,339)(1,369)(2,618)(2,787)Recognized actuarial gain(119)(96)(238)(193)Net periodic pension cost3,471 3,303 6,768 6,731 Curtailment gain— — (434)— Total pension expense$3,471 $3,303 $6,334 $6,731 The components of net periodic pension cost other than the service cost component are included in other (income) expense, net in our Consolidated Statements of Income. Defined Contribution Pension PlansWe sponsor defined contribution pension plans in Korea, Malaysia, Taiwan and the U.S.  The following table summarizes our defined contribution expense: For the Three Months Ended June 30,For the Six Months Ended June 30, 2025202420252024 (In thousands)Defined contribution expense$7,322 $6,065 $16,627 $14,479 

13.    Derivatives 

We use foreign currency forward contracts to mitigate foreign currency risk of certain monetary assets and liabilities denominated in foreign currencies.  We do not enter into such contracts for trading or speculative purposes.  These derivative instruments are