Annual report pursuant to Section 13 and 15(d)

Marketable Securities

v3.10.0.1
Marketable Securities
 12 Months Ended
Jun. 30, 2018
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, 2018 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
Corporate debt securities
$
747,763

 
$
148

 
$
(7,508
)
 
$
740,403

Money market funds and other
863,115

 
—

 
—

 
863,115

Sovereign securities
17,293

 
—

 
(151
)
 
17,142

U.S. Government agency securities
326,508

 
16

 
(2,827
)
 
323,697

U.S. Treasury securities
411,329

 
3

 
(3,682
)
 
407,650

Subtotal
2,366,008

 
167

 
(14,168
)
 
2,352,007

Add: Time deposits(1)
54,537

 
—

 
—

 
54,537

Less: Cash equivalents
930,608

 
—

 
—

 
930,608

Marketable securities
$
1,489,937

 
$
167

 
$
(14,168
)
 
$
1,475,936

 
 
 
 
 
 
 
 
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. Most of the Company's unrealized losses are due to changes in market interest rates, and bond yields. 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, 2018 (In thousands)
Fair Value
 
Gross
Unrealized
Losses(1)
Corporate debt securities
$
648,552

 
$
(7,508
)
U.S. Treasury securities
380,753

 
(3,682
)
U.S. Government agency securities
293,836

 
(2,827
)
Sovereign securities
17,143

 
(151
)
Total
$
1,340,284

 
$
(14,168
)
 __________________ 
(1)
As of June 30, 2018, 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 Consolidated Balance Sheet, as of the date indicated below were as follows:
As of June 30, 2018 (In thousands)
Amortized
Cost
 
Fair Value
Due within one year
$
750,665

 
$
746,978

Due after one year through three years
739,272

 
728,958

 
$
1,489,937

 
$
1,475,936


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, 2018, 2017 and 2016 were $0.2 million, $0.4 million and $0.9 million, respectively. Realized losses on available for sale securities were immaterial for all years presented.