Quarterly report pursuant to Section 13 or 15(d)

Marketable Securities

v3.4.0.3
Marketable Securities
 9 Months Ended
Mar. 31, 2016
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, 2016 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities
$
388,085

 
$
731

 
$
(6
)
 
$
388,810

U.S. Government agency securities
400,255

 
509

 
(43
)
 
400,721

Municipal securities
5,443

 
2

 
—

 
5,445

Corporate debt securities
647,655

 
1,430

 
(386
)
 
648,699

Money market and other
367,659

 
—

 
—

 
367,659

Sovereign securities
43,200

 
4

 
(9
)
 
43,195

Subtotal
1,852,297

 
2,676

 
(444
)
 
1,854,529

Add: Time deposits(1)
64,605

 
—

 
—

 
64,605

Less: Cash equivalents
603,792

 
7

 
(1
)
 
603,798

Marketable securities
$
1,313,110

 
$
2,669

 
$
(443
)
 
$
1,315,336

As of June 30, 2015 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities
$
274,965

 
$
605

 
$
(15
)
 
$
275,555

U.S. Government agency securities
571,843

 
551

 
(126
)
 
572,268

Municipal securities
31,819

 
7

 
(10
)
 
31,816

Corporate debt securities
625,965

 
511

 
(515
)
 
625,961

Money market and other
611,385

 
—

 
—

 
611,385

Sovereign securities
57,091

 
33

 
(31
)
 
57,093

Subtotal
2,173,068

 
1,707

 
(697
)
 
2,174,078

Add: Time deposits(1)
29,941

 
—

 
—

 
29,941

Less: Cash equivalents
654,933

 
—

 
—

 
654,933

Marketable securities
$
1,548,076

 
$
1,707

 
$
(697
)
 
$
1,549,086

________________
(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, 2016 (In thousands)
Fair Value
 
Gross
Unrealized
Losses(1)
U.S. Treasury securities
$
15,026

 
$
(6
)
U.S. Government agency securities
78,609

 
(42
)
Corporate debt securities
195,167

 
(386
)
Sovereign securities
20,176

 
(9
)
Total
$
308,978

 
$
(443
)
__________________ 
(1)
As of March 31, 2016, 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, 2016 (In thousands)
Amortized Cost
 
Fair Value
Due within one year
$
322,976

 
$
323,090

Due after one year through three years
990,134

 
992,246

 
$
1,313,110

 
$
1,315,336


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, 2016 and 2015 were immaterial, respectively. Realized gains on available-for-sale securities for the nine months ended March 31, 2016 was immaterial and for the nine months ended March 31, 2015 was $2.3 million. Realized losses on available-for-sale securities for the three and nine months ended March 31, 2016 and 2015 were immaterial, respectively.