Annual report pursuant to Section 13 and 15(d)

Marketable Securities

v2.4.0.6
Marketable Securities
 12 Months Ended
Jun. 30, 2012
Marketable Securities [Abstract]  
Marketable Securities
MARKETABLE SECURITIES
The amortized cost and fair value of marketable securities as of the dates indicated below were as follows:
As of June 30, 2012 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
U.S. Treasury securities
$
91,387

 
$
67

 
$
(16
)
 
$
91,438

U.S. Government agency securities
633,587

 
981

 
(76
)
 
634,492

Municipal securities
66,538

 
107

 
(102
)
 
66,543

Corporate debt securities
914,134

 
3,826

 
(568
)
 
917,392

Money market and other
607,038

 
—

 
—

 
607,038

Sovereign securities
29,056

 
89

 
—

 
29,145

Equity securities
10

 
—

 
—

 
10

Subtotal
2,341,750

 
5,070

 
(762
)
 
2,346,058

Add: Time deposits(1)
62,431

 
—

 
—

 
62,431

Less: Cash equivalents
625,339

 
—

 
—

 
625,339

Marketable securities
$
1,778,842

 
$
5,070

 
$
(762
)
 
$
1,783,150

 
 
 
 
 
 
 
 
As of June 30, 2011 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
U.S. Treasury securities
$
58,754

 
$
165

 
$
(23
)
 
$
58,896

U.S. Government agency securities
319,375

 
931

 
(123
)
 
320,183

Municipal securities
38,688

 
275

 
(6
)
 
38,957

Corporate debt securities
870,591

 
5,162

 
(368
)
 
875,385

Money market and other
481,770

 
—

 
—

 
481,770

Sovereign securities
31,932

 
179

 
(25
)
 
32,086

Subtotal
1,801,110

 
6,712

 
(545
)
 
1,807,277

Add: Time deposits(1)
65,402

 
—

 
—

 
65,402

Less: Cash equivalents
545,475

 
—

 
(2
)
 
545,473

Marketable securities
$
1,321,037

 
$
6,712

 
$
(543
)
 
$
1,327,206

__________________ 
(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 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, 2012 (In thousands)
Fair Value
 
Gross
Unrealized
Losses(1)
U.S. Treasury securities
$
47,093

 
$
(16
)
U.S. Government agency securities
115,894

 
(76
)
Municipal securities
38,399

 
(102
)
Corporate debt securities
225,186

 
(568
)
Total
$
426,572

 
$
(762
)
 __________________ 
(1)
Of the total gross unrealized losses, there were no amounts that, as of June 30, 2012, had been in a continuous loss position for 12 months or more.
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, 2012 (In thousands)
Amortized
Cost
 
Fair Value
Due within one year
$
464,939

 
$
466,044

Due after one year through three years
1,313,903

 
1,317,106

 
$
1,778,842

 
$
1,783,150


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. Net realized gains for the fiscal years ended June 30, 2012, 2011 and 2010 were $0.6 million, $2.5 million and $4.0 million, respectively.