Quarterly report pursuant to Section 13 or 15(d)

Marketable Securities

v2.4.1.9
Marketable Securities
 9 Months Ended
Mar. 31, 2015
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 March 31, 2015 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities
$
331,075

 
$
690

 
$
(25
)
 
$
331,740

U.S. Government agency securities
672,200

 
789

 
(53
)
 
672,936

Municipal securities
33,089

 
6

 
(36
)
 
33,059

Corporate debt securities
662,163

 
1,173

 
(194
)
 
663,142

Money market and other
406,337

 
—

 
—

 
406,337

Sovereign securities
49,321

 
32

 
(8
)
 
49,345

Subtotal
2,154,185

 
2,690

 
(316
)
 
2,156,559

Add: Time deposits(1)
24,663

 
—

 
—

 
24,663

Less: Cash equivalents
463,330

 
1

 
(2
)
 
463,329

Marketable securities
$
1,715,518

 
$
2,689

 
$
(314
)
 
$
1,717,893

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

________________
(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 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 March 31, 2015 (In thousands)
Fair Value
 
Gross
Unrealized
Losses(1)
U.S. Treasury securities
$
131,732

 
$
(25
)
U.S. Government agency securities
85,554

 
(52
)
Municipal securities
22,429

 
(36
)
Corporate debt securities
139,007

 
(193
)
Sovereign securities
19,360

 
(8
)
Total
$
398,082

 
$
(314
)
__________________ 
(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 March 31, 2015 (In thousands)
Amortized Cost
 
Fair Value
Due within one year
$
625,908

 
$
626,235

Due after one year through three years
1,089,610

 
1,091,658

 
$
1,715,518

 
$
1,717,893


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 March 31, 2015 and 2014 were $0.2 million and $0.3 million, respectively. Realized gains on available-for-sale securities for the nine months ended March 31, 2015 and 2014 were $2.3 million and $1.8 million, respectively. Realized losses on available-for-sale securities for the three and nine months ended March 31, 2015 and 2014 were immaterial.