In the press release above we provide non-GAAP gross margin, non-GAAP net income, and non-GAAP earnings per diluted share for the years ended December 31, 2014 and 2013, respectively. We also provide non-GAAP gross margin, non-GAAP net income and non-GAAP earnings per diluted share for the quarter ended December 31, 2014. We present these non-GAAP amounts to demonstrate the impact of the charges we recognized related to the settlement of our litigation with Tessera. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). These measures have limitations, including that they exclude the charges for the settlement payments, which are amounts that the company will ultimately have to pay in cash, and should be considered in addition to, and not as a substitute for, or superior to, gross margin, net income and earnings per diluted share prepared in accordance with U.S. GAAP. Below is the reconciliation of non-GAAP gross margin, non-GAAP net income and non-GAAP earnings per diluted share to U.S. GAAP gross margin, net income and earnings per diluted share.

Non-GAAP Financial Measures Reconciliation:
												Q4 2014																																						2014					2013
Gross margin												14.1			%																																			17.7			%		18.4			%
Plus: Litigation settlement charges divided by net sales												8.8			%																																			2.4			%		0.4			%
Non-GAAP gross margin												22.9			%																																			20.1			%		18.8			%
Net income (In millions)												$	13																																					$	130				$	109
Plus: Litigation settlement charges, net of tax (In millions)												77																																						78					10
Non-GAAP net income (In millions)												$	90																																					$	208				$	119
Earnings per diluted share												$	0.06																																					$	0.55				$	0.50
Plus: Litigation settlement charges per diluted share												0.32																																						0.33					0.04
Non-GAAP earnings per diluted share												$	0.38																																					$	0.88				$	0.54

AMKOR TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
		For the Three Months Ended December 31,								For the Year Ended December 31,
		2014				2013				2014				2013
		(In thousands, except per share data)
Net sales		$	853,113			$	754,875			$	3,129,440			$	2,956,450
Cost of sales		733,042				604,702				2,576,618				2,411,937
Gross profit		120,071				150,173				552,822				544,513
Selling, general and administrative		62,800				58,255				254,498				247,779
Research and development		17,303				17,364				76,864				64,625
Total operating expenses		80,103				75,619				331,362				312,404
Operating income		39,968				74,554				221,460				232,109
Interest expense		34,917				24,818				104,956				96,739
Interest expense, related party		1,242				1,242				4,969				9,169
Other (income) expense, net		(9,254		)		(4,112		)		(24,543		)		2,214
Total other expense, net		26,905				21,948				85,382				108,122
Income before taxes and equity in earnings of unconsolidated affiliate		13,063				52,606				136,078				123,987
Income tax expense		1,420				16,685				33,845				22,646
Income before equity in earnings of unconsolidated affiliate		11,643				35,921				102,233				101,341
Equity in earnings of J-Devices		2,485				5,637				31,654				10,316
Net income		14,128				41,558				133,887				111,657
Net income attributable to noncontrolling interests		(993		)		(720		)		(3,501		)		(2,361		)
Net income attributable to Amkor		$	13,135			$	40,838			$	130,386			$	109,296
Net income attributable to Amkor per common share:
Basic		$	0.06			$	0.19			$	0.56			$	0.58
Diluted		$	0.06			$	0.18			$	0.55			$	0.50
Shares used in computing per common share amounts:
Basic		236,578				216,598				230,710				187,032
Diluted		236,937				235,297				236,731				235,330

AMKOR TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
		December 31,
		2014				2013
		(In thousands)
ASSETS
Current assets:
Cash and cash equivalents		$	449,946			$	610,442
Restricted cash		2,681				2,681
Accounts receivable, net of allowances		469,683				385,542
Inventories		223,379				200,423
Other current assets		52,259				33,328
Total current assets		1,197,948				1,232,416
Property, plant and equipment, net		2,206,476				2,006,553
Investments		117,733				105,214
Restricted cash		2,123				2,234
Other assets		111,125				80,881
Total assets		$	3,635,405			$	3,427,298
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings and current portion of long-term debt		$	5,000			$	61,350
Trade accounts payable		309,025				260,534
Capital expenditures payable		127,568				104,800
Accrued expenses		258,997				264,252
Total current liabilities		700,590				690,936
Long-term debt		1,450,824				1,516,390
Long-term debt, related party		75,000				75,000
Pension and severance obligations		152,673				165,073
Other non-current liabilities		125,382				14,959
Total liabilities		2,504,469				2,462,358
Amkor stockholders’ equity:
Preferred stock		—				—
Common stock		282				262
Additional paid-in capital		1,878,810				1,812,530
Accumulated deficit		(516,962		)		(647,348		)
Accumulated other comprehensive loss		(32,867		)		(255		)
Treasury stock		(213,028		)		(211,449		)
Total Amkor stockholders’ equity		1,116,235				953,740
Noncontrolling interests in subsidiaries		14,701				11,200
Total equity		1,130,936				964,940
Total liabilities and equity		$	3,635,405			$	3,427,298

AMKOR TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
		For the Year Ended December 31,
		2014				2013
		(In thousands)
Cash flows from operating activities:
Net income		$	133,887			$	111,657
Depreciation and amortization		464,706				410,346
Loss on debt retirement		—				11,619
Gain on sale of subsidiary to J-Devices		(9,155		)		—
Other operating activities and non-cash items		(40,762		)		(15,978		)
Changes in assets and liabilities		65,233				39,892
Net cash provided by operating activities		613,909				557,536
Cash flows from investing activities:
Payments for property, plant and equipment		(681,120		)		(566,256		)
Proceeds from sale of property, plant and equipment		2,815				27,209
Acquisition of business, net of cash acquired		—				(41,865		)
Cash transferred on sale of subsidiary to J-Devices, net of proceeds		(15,774		)		—
Payments from J-Devices		—				8,843
Investment in J-Devices		—				(67,372		)
Other investing activities		(399		)		(1,053		)
Net cash used in investing activities		(694,478		)		(640,494		)
Cash flows from financing activities:
Borrowings under revolving credit facilities		—				5,000
Payments under revolving credit facilities		—				(5,000		)
Proceeds from issuance of long-term debt		80,000				375,000
Payments of long-term debt		(145,000		)		(80,000		)
Payments for debt issuance costs		(903		)		(3,216		)
Payments for retirement of debt		—				(11,619		)
Payment of deferred consideration for an acquisition		(18,763		)		—
Proceeds from issuance of stock through share-based compensation plans		6,250				446
Payments of tax withholding for restricted shares		(1,579		)		(466		)
Net cash (used in) provided by financing activities		(79,995		)		280,145
Effect of exchange rate fluctuations on cash and cash equivalents		68				207
Net (decrease) increase in cash and cash equivalents		(160,496		)		197,394
Cash and cash equivalents, beginning of period		610,442				413,048
Cash and cash equivalents, end of period		$	449,946			$	610,442

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