Annual report pursuant to Section 13 and 15(d)

Marketable Securities

v3.19.2
Marketable Securities
 12 Months Ended
Jun. 30, 2019
Investments, Debt and Equity Securities [Abstract]  
MARKETABLE SECURITIES
NOTE 5 — MARKETABLE SECURITIES
The amortized cost and fair value of marketable securities as of the dates indicated below were as follows:
As of June 30, 2019 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
Corporate debt securities
$
433,518

 
$
141

 
$
(582
)
 
$
433,077

Money market funds and other
352,708

 
—

 
—

 
352,708

Municipal securities
1,910

 
3

 
—

 
1,913

Sovereign securities
6,001

 
1

 
(8
)
 
5,994

U.S. Government agency securities
159,454

 
5

 
(241
)
 
159,218

U.S. Treasury securities
208,058

 
39

 
(401
)
 
207,696

Subtotal
1,161,649

 
189

 
(1,232
)
 
1,160,606

Add: Time deposits(1)
99,006

 
—

 
—

 
99,006

Less: Cash equivalents
536,206

 
17

 
(2
)
 
536,221

Marketable securities
$
724,449

 
$
172

 
$
(1,230
)
 
$
723,391

 
 
 
 
 
 
 
 
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

__________________ 
(1)
Time deposits excluded from fair value measurements. 
Our 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 our unrealized losses are due to changes in market interest rates, and bond yields. We believe that we have the ability to realize the full value of all of these investments upon maturity. As of June 30, 2019, we had 246 investments in an unrealized loss position. The following table summarizes the fair value and gross unrealized losses of our investments that were in an unrealized loss position as of the date indicated below, the majority of which were in a continuous loss position for 12 months or more:
As of June 30, 2019 (In thousands)
Fair Value
 
Gross
Unrealized
Losses
Corporate debt securities
$
321,972

 
$
(580
)
Sovereign securities
1,999

 
(8
)
U.S. Government agency securities
126,694

 
(241
)
U.S. Treasury securities
142,796

 
(401
)
Total
$
593,461

 
$
(1,230
)


The contractual maturities of securities classified as available-for-sale, regardless of their classification on our Consolidated Balance Sheets, as of the date indicated below were as follows:
As of June 30, 2019 (In thousands)
Amortized
Cost
 
Fair Value
Due within one year
$
554,039

 
$
553,048

Due after one year through three years
170,410

 
170,343

 
$
724,449

 
$
723,391


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 were immaterial for the fiscal years ended June 30, 2019, 2018 and 2017. Realized losses on available for sale securities were $1.4 million for the fiscal year ended June 30, 2019 and were immaterial for the fiscal years ended June 30, 2018 and 2017.