Quarterly report pursuant to Section 13 or 15(d)

Marketable Securities

v2.4.0.6
Marketable Securities
 6 Months Ended
Dec. 31, 2011
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 December 31, 2011 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities
$
71,098

 
$
207

 
$
(3
)
 
$
71,302

U.S. Government agency securities
448,963

 
692

 
(299
)
 
449,356

Municipal securities
41,286

 
188

 
(1
)
 
41,473

Corporate debt securities
719,442

 
3,464

 
(1,199
)
 
721,707

Money market and other
591,032

 
—

 
—

 
591,032

Sovereign securities
36,167

 
73

 
(59
)
 
36,181

Subtotal
1,907,988

 
4,624

 
(1,561
)
 
1,911,051

Add: Time deposits(1)
73,193

 
—

 
—

 
73,193

Less: Cash equivalents
632,585

 
—

 
—

 
632,585

Marketable securities
$
1,348,596

 
$
4,624

 
$
(1,561
)
 
$
1,351,659

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 December 31, 2011 (In thousands)
Fair Value
 
Gross
Unrealized
Losses(1)
U.S. Treasury securities
$
23,995

 
$
(3
)
U.S. Government agency securities
209,146

 
(299
)
Municipal securities
3,626

 
(1
)
Corporate debt securities
214,565

 
(1,199
)
Sovereign securities
14,110

 
(59
)
Total
$
465,442

 
$
(1,561
)
__________________ 
(1)
Of the total gross unrealized losses, there were no amounts that, as of December 31, 2011, 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 Condensed Consolidated Balance Sheet, as of the date indicated below were as follows:
As of December 31, 2011 (In thousands)
Amortized Cost
 
Fair Value
Due within one year
$
327,355

 
$
328,390

Due after one year through three years
1,021,241

 
1,023,269

 
$
1,348,596

 
$
1,351,659


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 losses on the Company's investments for the three months ended December 31, 2011 were $0.1 million. Net realized gains on the Company's investments for the three months ended December 31, 2010 were $0.4 million. Net realized gains on the Company's investments for the six months ended December 31, 2011 and 2010 were $0.6 million and $1.5 million, respectively.