Annual report pursuant to Section 13 and 15(d)

Marketable Securities

v2.4.0.8
Marketable Securities
 12 Months Ended
Jun. 30, 2014
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 June 30, 2014 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
U.S. Treasury securities
$
384,165

 
$
287

 
$
(52
)
 
$
384,400

U.S. Government agency securities
867,309

 
651

 
(117
)
 
867,843

Municipal securities
96,198

 
93

 
(75
)
 
96,216

Corporate debt securities
1,220,794

 
3,526

 
(152
)
 
1,224,168

Money market and other
397,517

 
—

 
—

 
397,517

Sovereign securities
42,227

 
46

 
(9
)
 
42,264

Subtotal
3,008,210

 
4,603

 
(405
)
 
3,012,408

Add: Time deposits(1)
33,509

 
—

 
—

 
33,509

Less: Cash equivalents
524,149

 
—

 
(8
)
 
524,141

Marketable securities
$
2,517,570

 
$
4,603

 
$
(397
)
 
$
2,521,776

 
 
 
 
 
 
 
 
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 June 30, 2014 (In thousands)
Fair Value
 
Gross
Unrealized
Losses(1)
U.S. Treasury securities
$
192,159

 
$
(52
)
U.S. Government agency securities
163,701

 
(117
)
Municipal securities
38,243

 
(73
)
Corporate debt securities
147,555

 
(146
)
Sovereign securities
12,816

 
(9
)
Total
$
554,474

 
$
(397
)
 __________________ 
(1)
As of June 30, 2014, the amount of total gross unrealized losses 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 Consolidated Balance Sheet, as of the date indicated below were as follows:
As of June 30, 2014 (In thousands)
Amortized
Cost
 
Fair Value
Due within one year
$
827,823

 
$
829,098

Due after one year through three years
1,689,747

 
1,692,678

 
$
2,517,570

 
$
2,521,776


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 for the fiscal years ended June 30, 2014, 2013 and 2012 were $2.2 million, $2.5 million and $2.1 million, respectively. Realized losses for the fiscal years ended June 30, 2014, 2013 and 2012 were $0.1 million, $0.2 million and $1.5 million, respectively.