Quarterly report pursuant to Section 13 or 15(d)

Marketable Securities

v2.4.0.8
Marketable Securities
 6 Months Ended
Dec. 31, 2013
Investments, Debt and Equity 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 December 31, 2013 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities
$
168,354

 
$
70

 
$
(111
)
 
$
168,313

U.S. Government agency securities
751,314

 
614

 
(295
)
 
751,633

Municipal securities
107,740

 
92

 
(245
)
 
107,587

Corporate debt securities
1,166,754

 
2,967

 
(669
)
 
1,169,052

Money market and other
574,904

 
—

 
—

 
574,904

Sovereign securities
36,442

 
15

 
(18
)
 
36,439

Subtotal
2,805,508

 
3,758

 
(1,338
)
 
2,807,928

Add: Time deposits(1)
19,942

 
—

 
—

 
19,942

Less: Cash equivalents
670,591

 
—

 
—

 
670,591

Marketable securities
$
2,154,859

 
$
3,758

 
$
(1,338
)
 
$
2,157,279

As of June 30, 2013 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities
$
93,940

 
$
53

 
$
(206
)
 
$
93,787

U.S. Government agency securities
598,471

 
569

 
(1,009
)
 
598,031

Municipal securities
103,686

 
71

 
(302
)
 
103,455

Corporate debt securities
1,103,438

 
2,353

 
(2,466
)
 
1,103,325

Money market and other
817,608

 
—

 
—

 
817,608

Sovereign securities
33,799

 
25

 
(19
)
 
33,805

Subtotal
2,750,942

 
3,071

 
(4,002
)
 
2,750,011

Add: Time deposits(1)
43,413

 
—

 
—

 
43,413

Less: Cash equivalents
859,933

 
—

 
—

 
859,933

Marketable securities
$
1,934,422

 
$
3,071

 
$
(4,002
)
 
$
1,933,491

________________
(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 December 31, 2013 (In thousands)
Fair Value
 
Gross
Unrealized
Losses(1)
U.S. Treasury securities
$
68,423

 
$
(111
)
U.S. Government agency securities
249,078

 
(295
)
Municipal securities
55,784

 
(245
)
Corporate debt securities
310,332

 
(669
)
Sovereign securities
21,238

 
(18
)
Total
$
704,855

 
$
(1,338
)
__________________ 
(1)
Of the total gross unrealized losses, 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 Condensed Consolidated Balance Sheet, as of the date indicated below were as follows:
As of December 31, 2013 (In thousands)
Amortized Cost
 
Fair Value
Due within one year
$
532,278

 
$
533,124

Due after one year through three years
1,622,581

 
1,624,155

 
$
2,154,859

 
$
2,157,279


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 three months ended December 31, 2013 and December 31, 2012 were $1.2 million and $1.1 million, respectively. Realized gains on available-for-sale securities for the six months ended December 31, 2013 and December 31, 2012 were $1.5 million and $1.4 million, respectively. Realized losses on available-for-sale securities for the three and six months ended December 31, 2013 and December 31, 2012 were immaterial.