Quarterly report pursuant to Section 13 or 15(d)

Marketable Securities

v3.5.0.2
Marketable Securities
3 Months Ended
Sep. 30, 2016
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, 2016 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities
$
271,546

 
$
514

 
$
(92
)
 
$
271,968

U.S. Government agency securities
423,741

 
426

 
(149
)
 
424,018

Municipal securities
3,008

 
1

 

 
3,009

Corporate debt securities
840,857

 
1,067

 
(599
)
 
841,325

Money market and other
581,240

 

 

 
581,240

Sovereign securities
21,972

 
3

 
(4
)
 
21,971

Subtotal
2,142,364

 
2,011

 
(844
)
 
2,143,531

Add: Time deposits(1)
30,546

 

 

 
30,546

Less: Cash equivalents
645,783

 

 
(2
)
 
645,781

Marketable securities
$
1,527,127

 
$
2,011

 
$
(842
)
 
$
1,528,296

As of June 30, 2016 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities
$
326,321

 
$
1,181

 
$

 
$
327,502

U.S. Government agency securities
404,889

 
830

 
(14
)
 
405,705

Municipal securities
5,014

 
2

 

 
5,016

Corporate debt securities
676,259

 
2,372

 
(157
)
 
678,474

Money market and other
626,156

 

 

 
626,156

Sovereign securities
41,224

 
38

 
(5
)
 
41,257

Subtotal
2,079,863

 
4,423

 
(176
)
 
2,084,110

Add: Time deposits(1)
77,131

 

 

 
77,131

Less: Cash equivalents
778,451

 
1

 
(17
)
 
778,435

Marketable securities
$
1,378,543

 
$
4,422

 
$
(159
)
 
$
1,382,806

________________
(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, 2016 (In thousands)
Fair Value
 
Gross
Unrealized
Losses(1)
Corporate debt securities
$
372,827

 
$
(597
)
U.S. Government agency securities
126,547

 
(149
)
U.S. Treasury securities
44,791

 
(92
)
Sovereign securities
13,036

 
(4
)
Municipal securities
2,006

 

Total
$
559,207

 
$
(842
)
__________________ 
(1)
As of September 30, 2016, 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, 2016 (In thousands)
Amortized Cost
 
Fair Value
Due within one year
$
531,572

 
$
531,730

Due after one year through three years
995,555

 
996,566

 
$
1,527,127

 
$
1,528,296


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 and losses on available-for-sale securities for the three months ended September 30, 2016 and 2015 were immaterial.