Quarterly report pursuant to Section 13 or 15(d)

Marketable Securities

v3.3.0.814
Marketable Securities
3 Months Ended
Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract]  
Marketable Securities
NOTE 4 – MARKETABLE SECURITIES
The amortized cost and fair value of marketable securities as of the dates indicated below were as follows:
As of September 30, 2015 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities
$
253,781

 
$
746

 
$
(1
)
 
$
254,526

U.S. Government agency securities
479,544

 
664

 
(55
)
 
480,153

Municipal securities
11,672

 
9

 

 
11,681

Corporate debt securities
740,063

 
681

 
(585
)
 
740,159

Money market and other
512,891

 

 

 
512,891

Sovereign securities
42,087

 
26

 
(10
)
 
42,103

Subtotal
2,040,038

 
2,126

 
(651
)
 
2,041,513

Add: Time deposits(1)
31,095

 

 

 
31,095

Less: Cash equivalents
566,858

 

 

 
566,858

Marketable securities
$
1,504,275

 
$
2,126

 
$
(651
)
 
$
1,505,750

As of June 30, 2015 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities
$
274,965

 
$
605

 
$
(15
)
 
$
275,555

U.S. Government agency securities
571,843

 
551

 
(126
)
 
572,268

Municipal securities
31,819

 
7

 
(10
)
 
31,816

Corporate debt securities
625,965

 
511

 
(515
)
 
625,961

Money market and other
611,385

 

 

 
611,385

Sovereign securities
57,091

 
33

 
(31
)
 
57,093

Subtotal
2,173,068

 
1,707

 
(697
)
 
2,174,078

Add: Time deposits(1)
29,941

 

 

 
29,941

Less: Cash equivalents
654,933

 

 

 
654,933

Marketable securities
$
1,548,076

 
$
1,707

 
$
(697
)
 
$
1,549,086

________________
(1)
Time deposits excluded from fair value measurements.
KLA-Tencor’s investment portfolio consists of both corporate and government securities that have a maximum maturity of three years. The longer the duration of these securities, the more susceptible they are to changes in market interest rates and bond yields. As yields increase, those securities with a lower yield-at-cost show a mark-to-market unrealized loss. All unrealized losses are due to changes in market interest rates, bond yields and/or credit ratings. The Company believes that it has the ability to realize the full value of all of these investments upon maturity. The following table summarizes the fair value and gross unrealized losses of the Company’s investments that were in an unrealized loss position as of the date indicated below:
 
As of September 30, 2015 (In thousands)
Fair Value
 
Gross
Unrealized
Losses(1)
U.S. Treasury securities
$
10,412

 
$
(1
)
U.S. Government agency securities
55,314

 
(55
)
Municipal securities
2,655

 

Corporate debt securities
345,648

 
(585
)
Sovereign securities
22,718

 
(10
)
Total
$
436,747

 
$
(651
)
__________________ 
(1)
As of September 30, 2015, the amount of total gross unrealized losses related to investments that had been in a continuous loss position for 12 months or more was immaterial.

The contractual maturities of securities classified as available-for-sale, regardless of their classification on the Company’s Condensed Consolidated Balance Sheet, as of the date indicated below were as follows:
As of September 30, 2015 (In thousands)
Amortized Cost
 
Fair Value
Due within one year
$
451,698

 
$
451,986

Due after one year through three years
1,052,577

 
1,053,764

 
$
1,504,275

 
$
1,505,750


Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Realized gains on available-for-sale securities for the three months ended September 30, 2015 was immaterial and for the three months ended September 30, 2014 was $1.7 million. Realized losses on available-for-sale securities for the three months ended September 30, 2015 and 2014 were immaterial.