Annual report pursuant to Section 13 and 15(d)

Marketable Securities

v3.7.0.1
Marketable Securities
 12 Months Ended
Jun. 30, 2017
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 June 30, 2017 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
Corporate debt securities
$
1,120,548

 
$
598

 
$
(1,951
)
 
$
1,119,195

Money market funds and other
616,039

 
—

 
—

 
616,039

Sovereign securities
52,621

 
—

 
(56
)
 
52,565

U.S. Government agency securities
510,553

 
62

 
(1,789
)
 
508,826

U.S. Treasury securities
374,676

 
52

 
(1,429
)
 
373,299

Subtotal
2,674,437

 
712

 
(5,225
)
 
2,669,924

Add: Time deposits(1)
39,389

 
—

 
—

 
39,389

Less: Cash equivalents
845,639

 
—

 
(15
)
 
845,624

Marketable securities
$
1,868,187

 
$
712

 
$
(5,210
)
 
$
1,863,689

 
 
 
 
 
 
 
 
As of June 30, 2016 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
Corporate debt securities
$
676,259

 
$
2,372

 
$
(157
)
 
$
678,474

Money market funds and other
626,156

 
—

 
—

 
626,156

Municipal securities
5,014

 
2

 
—

 
5,016

Sovereign securities
41,224

 
38

 
(5
)
 
41,257

U.S. Government agency securities
404,889

 
830

 
(14
)
 
405,705

U.S. Treasury securities
326,321

 
1,181

 
—

 
327,502

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 June 30, 2017 (In thousands)
Fair Value
 
Gross
Unrealized
Losses(1)
Corporate debt securities
$
716,934

 
$
(1,940
)
U.S. Government agency securities
328,868

 
(1,786
)
U.S. Treasury securities
324,555

 
(1,429
)
Sovereign securities
42,515

 
(55
)
Total
$
1,412,872

 
$
(5,210
)
 __________________ 
(1)
As of June 30, 2017, 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 Consolidated Balance Sheet, as of the date indicated below were as follows:
As of June 30, 2017 (In thousands)
Amortized
Cost
 
Fair Value
Due within one year
$
661,679

 
$
661,184

Due after one year through three years
1,206,508

 
1,202,505

 
$
1,868,187

 
$
1,863,689


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 fiscal years ended June 30, 2017, 2016 and 2015 were $0.4 million, $0.9 million and $2.4 million, respectively. Realized losses on available for sale securities were immaterial for all years presented.