In the press release above we refer to free cash flow, which is not defined by U.S. GAAP. We define free cash flow as net cash provided by operating activities less payments for property, plant and equipment. We believe free cash flow to be relevant and useful information to our investors because it provides them with additional information in assessing our liquidity, capital resources and financial operating results. Our management uses free cash flow in evaluating our liquidity, our ability to service debt and our ability to fund capital expenditures. However, free cash flow has certain limitations, including that it does not represent the residual cash flow available for discretionary expenditures since other, non-discretionary expenditures, such as mandatory debt service, are not deducted from the measure. The amount of mandatory versus discretionary expenditures can vary significantly between periods. This measure should be considered in addition to, and not as a substitute for, or superior to, other measures of liquidity or financial performance prepared in accordance with U.S. GAAP, such as net cash provided by operating activities. Furthermore, our definition of free cash flow may not be comparable to similarly titled measures reported by other companies. Below is our reconciliation of free cash flow to U.S. GAAP net cash provided by operating activities.

Non-GAAP Financial Measures Reconciliation:
		Q4 2015				Q3 2015				Q4 2014				2015				2014
		(in millions)
Free Cash Flow Data:
Net cash provided by operating activities		$	154			$	195			$	208			$	578			$	614
Less purchases of property, plant and equipment		(185		)		(158		)		(239		)		(538		)		(681		)
Free cash flow		$	(31	)		$	37			$	(31	)		$	40			$	(67	)

AMKOR TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
		For the Three Months Ended								For the Year Ended
		December 31,								December 31,
		2015				2014				2015				2014
		(In thousands, except per share data)
Net sales		$	670,644			$	853,113			$	2,884,603			$	3,129,440
Cost of sales		568,024				733,042				2,405,338				2,576,618
Gross profit		102,620				120,071				479,265				552,822
Selling, general and administrative		58,045				62,800				231,654				254,498
Research and development		22,898				17,303				82,017				76,864
Total operating expenses		80,943				80,103				313,671				331,362
Operating income		21,677				39,968				165,594				221,460
Interest expense		17,090				34,917				81,407				104,956
Interest expense, related party		1,242				1,242				4,969				4,969
Other (income) expense, net		15,712				(9,254		)		10,928				(24,543		)
Total other expense, net		34,044				26,905				97,304				85,382
(Loss) income before taxes and equity in earnings of unconsolidated affiliate		(12,367		)		13,063				68,290				136,078
Income tax expense		837				1,420				28,035				33,845
(Loss) income before equity in earnings of unconsolidated affiliate		(13,204		)		11,643				40,255				102,233
Equity in earnings of J-Devices		4,647				2,485				20,107				31,654
Net (loss) income		(8,557		)		14,128				60,362				133,887
Net income attributable to noncontrolling interests		(409		)		(993		)		(2,795		)		(3,501		)
Net (loss) income attributable to Amkor		$	(8,966	)		$	13,135			$	57,567			$	130,386
Net (loss)income attributable to Amkor per common share:
Basic		$	(0.04	)		$	0.06			$	0.24			$	0.56
Diluted		$	(0.04	)		$	0.06			$	0.24			$	0.55
Shares used in computing per common share amounts:
Basic		236,961				236,578				236,850				230,710
Diluted		236,961				236,937				237,170				236,731

AMKOR TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEETS (Unaudited)
		December 31,
		2015				2014
		(In thousands)
ASSETS
Current assets:
Cash and cash equivalents		$	523,172			$	449,946
Restricted cash		2,000				2,681
Accounts receivable, net of allowances		526,143				469,683
Inventories		238,205				223,379
Other current assets		27,960				52,259
Total current assets		1,317,480				1,197,948
Property, plant and equipment, net		2,579,017				2,206,476
Goodwill		19,443				—
Investments		—				117,733
Restricted cash		2,176				2,123
Other assets		113,184				111,125
Total assets		$	4,031,300			$	3,635,405
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings and current portion of long-term debt		$	76,770			$	5,000
Trade accounts payable		434,222				309,025
Capital expenditures payable		242,980				127,568
Accrued expenses		263,457				258,997
Total current liabilities		1,017,429				700,590
Long-term debt		1,444,107				1,450,824
Long-term debt, related party		75,000				75,000
Pension and severance obligations		167,197				152,673
Other non-current liabilities		101,679				125,382
Total liabilities		2,805,412				2,504,469
Amkor stockholders’ equity:
Preferred stock		—				—
Common stock		283				282
Additional paid-in capital		1,883,592				1,878,810
Accumulated deficit		(459,395		)		(516,962		)
Accumulated other comprehensive loss		(2,084		)		(32,867		)
Treasury stock		(213,758		)		(213,028		)
Total Amkor stockholders’ equity		1,208,638				1,116,235
Noncontrolling interests in subsidiaries		17,250				14,701
Total equity		1,225,888				1,130,936
Total liabilities and equity		$	4,031,300			$	3,635,405

AMKOR TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
		For the Year Ended
		December 31,
		2015				2014
		(In thousands)
Cash flows from operating activities:
Net income		$	60,362			$	133,887
Depreciation and amortization		494,200				464,706
Loss on debt retirement		2,530				—
Loss from acquisition of J-Devices		13,878				—
Gain on sale of subsidiary to J-Devices		—				(9,155		)
Other operating activities and non-cash items		(10,083		)		(40,762		)
Changes in assets and liabilities		17,058				65,233
Net cash provided by operating activities		577,945				613,909
Cash flows from investing activities:
Payments for property, plant and equipment		(537,975		)		(681,120		)
Proceeds from sale of property, plant and equipment		6,945				2,815
Cash received from business acquisition of J-Devices, net		22,577				—
Cash received (transferred) on sale of subsidiary to J-Devices, net		8,355				(15,774		)
Investment in J-Devices		(12,908		)		—
Other investing activities		(1,356		)		(399		)
Net cash used in investing activities		(514,362		)		(694,478		)
Cash flows from financing activities:
Borrowings under revolving credit facilities		290,000				—
Payments under revolving credit facilities		(150,000		)		—
Proceeds from issuance of long-term debt		400,000				80,000
Payments of long-term debt		(530,000		)		(145,000		)
Payments for debt issuance costs		(312		)		(903		)
Payment of deferred consideration for an acquisition		—				(18,763		)
Proceeds from issuance of stock through share-based compensation plans		931				6,250
Payments of tax withholding for restricted shares		(730		)		(1,579		)
Payments of subsidiary dividends to noncontrolling interests		(246		)		—
Net cash provided by (used in) financing activities		9,643				(79,995		)
Effect of exchange rate fluctuations on cash and cash equivalents		—				68
Net increase (decrease) in cash and cash equivalents		73,226				(160,496		)
Cash and cash equivalents, beginning of period		449,946				610,442
Cash and cash equivalents, end of period		$	523,172			$	449,946

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