Quarterly report pursuant to Section 13 or 15(d)

Marketable Securities

v3.3.1.900
Marketable Securities
 6 Months Ended
Dec. 31, 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 December 31, 2015 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities
$
274,142

 
$
12

 
$
(630
)
 
$
273,524

U.S. Government agency securities
404,990

 
71

 
(745
)
 
404,316

Municipal securities
7,719

 
2

 
(4
)
 
7,717

Corporate debt securities
707,685

 
61

 
(1,993
)
 
705,753

Money market and other
470,811

 
—

 
—

 
470,811

Sovereign securities
60,555

 
4

 
(44
)
 
60,515

Subtotal
1,925,902

 
150

 
(3,416
)
 
1,922,636

Add: Time deposits(1)
67,733

 
—

 
—

 
67,733

Less: Cash equivalents
635,535

 
3

 
(3
)
 
635,535

Marketable securities
$
1,358,100

 
$
147

 
$
(3,413
)
 
$
1,354,834

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 December 31, 2015 (In thousands)
Fair Value
 
Gross
Unrealized
Losses(1)
U.S. Treasury securities
$
250,397

 
$
(630
)
U.S. Government agency securities
298,143

 
(745
)
Municipal securities
3,005

 
(4
)
Corporate debt securities
584,219

 
(1,990
)
Sovereign securities
35,752

 
(44
)
Total
$
1,171,516

 
$
(3,413
)
__________________ 
(1)
As of December 31, 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 December 31, 2015 (In thousands)
Amortized Cost
 
Fair Value
Due within one year
$
379,750

 
$
379,437

Due after one year through three years
978,350

 
975,397

 
$
1,358,100

 
$
1,354,834


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 December 31, 2015 and 2014 were immaterial, respectively. Realized gains on available-for-sale securities for the six months ended December 31, 2015 was immaterial and for the six months ended December 31, 2014 was $2.1 million. Realized losses on available-for-sale securities for the three and six months ended December 31, 2015 and 2014 were immaterial, respectively.