Quarterly report pursuant to Section 13 or 15(d)

Marketable Securities

v3.8.0.1
Marketable Securities
6 Months Ended
Dec. 31, 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 December 31, 2017 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Corporate debt securities
$
918,399

 
$
204

 
$
(4,245
)
 
$
914,358

Money market funds and other
569,287

 

 

 
569,287

Sovereign securities
11,496

 

 
(69
)
 
11,427

U.S. Government agency securities
342,325

 
16

 
(2,611
)
 
339,730

U.S. Treasury securities
411,669

 

 
(2,941
)
 
408,728

Subtotal
2,253,176

 
220

 
(9,866
)
 
2,243,530

Add: Time deposits(1)
33,581

 

 

 
33,581

Less: Cash equivalents
592,315

 

 

 
592,315

Marketable securities
$
1,694,442

 
$
220

 
$
(9,866
)
 
$
1,684,796

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

________________
(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, 2017 (In thousands)
Fair Value
 
Gross
Unrealized
Losses(1)
Corporate debt securities
$
792,436

 
$
(4,245
)
U.S. Treasury securities
404,982

 
(2,941
)
U.S. Government agency securities
334,064

 
(2,611
)
Sovereign securities
11,427

 
(69
)
Total
$
1,542,909

 
$
(9,866
)
__________________ 
(1)
As of December 31, 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 $5.3 million.

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, 2017 (In thousands)
Amortized Cost
 
Fair Value
Due within one year
$
521,930

 
$
520,623

Due after one year through three years
1,172,512

 
1,164,173

 
$
1,694,442

 
$
1,684,796


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 and six months ended December 31, 2017 and 2016 were immaterial.