| MARKETABLE SECURITIES |
NOTE 4 – MARKETABLE SECURITIES
The amortized cost and fair value of marketable securities as of the dates indicated below were as follows:
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As of September 30, 2016 (In thousands) |
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
U.S. Treasury securities |
$ |
271,546 |
|
|
$ |
514 |
|
|
$ |
(92 |
) |
|
$ |
271,968 |
|
U.S. Government agency securities |
423,741 |
|
|
426 |
|
|
(149 |
) |
|
424,018 |
|
Municipal securities |
3,008 |
|
|
1 |
|
|
— |
|
|
3,009 |
|
Corporate debt securities |
840,857 |
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|
1,067 |
|
|
(599 |
) |
|
841,325 |
|
Money market and other |
581,240 |
|
|
— |
|
|
— |
|
|
581,240 |
|
Sovereign securities |
21,972 |
|
|
3 |
|
|
(4 |
) |
|
21,971 |
|
Subtotal |
2,142,364 |
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|
2,011 |
|
|
(844 |
) |
|
2,143,531 |
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Add: Time deposits(1)
|
30,546 |
|
|
— |
|
|
— |
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|
30,546 |
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Less: Cash equivalents |
645,783 |
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|
— |
|
|
(2 |
) |
|
645,781 |
|
Marketable securities |
$ |
1,527,127 |
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|
$ |
2,011 |
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|
$ |
(842 |
) |
|
$ |
1,528,296 |
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|
|
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As of June 30, 2016 (In thousands) |
Amortized
Cost |
|
Gross
Unrealized
Gains |
|
Gross
Unrealized
Losses |
|
Fair
Value |
U.S. Treasury securities |
$ |
326,321 |
|
|
$ |
1,181 |
|
|
$ |
— |
|
|
$ |
327,502 |
|
U.S. Government agency securities |
404,889 |
|
|
830 |
|
|
(14 |
) |
|
405,705 |
|
Municipal securities |
5,014 |
|
|
2 |
|
|
— |
|
|
5,016 |
|
Corporate debt securities |
676,259 |
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|
2,372 |
|
|
(157 |
) |
|
678,474 |
|
Money market and other |
626,156 |
|
|
— |
|
|
— |
|
|
626,156 |
|
Sovereign securities |
41,224 |
|
|
38 |
|
|
(5 |
) |
|
41,257 |
|
Subtotal |
2,079,863 |
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|
4,423 |
|
|
(176 |
) |
|
2,084,110 |
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Add: Time deposits(1)
|
77,131 |
|
|
— |
|
|
— |
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|
77,131 |
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Less: Cash equivalents |
778,451 |
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|
1 |
|
|
(17 |
) |
|
778,435 |
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Marketable securities |
$ |
1,378,543 |
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|
$ |
4,422 |
|
|
$ |
(159 |
) |
|
$ |
1,382,806 |
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________________
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(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:
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As of September 30, 2016 (In thousands) |
Fair Value |
|
Gross
Unrealized
Losses(1)
|
Corporate debt securities |
$ |
372,827 |
|
|
$ |
(597 |
) |
U.S. Government agency securities |
126,547 |
|
|
(149 |
) |
U.S. Treasury securities |
44,791 |
|
|
(92 |
) |
Sovereign securities |
13,036 |
|
|
(4 |
) |
Municipal securities |
2,006 |
|
|
— |
|
Total |
$ |
559,207 |
|
|
$ |
(842 |
) |
__________________
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|
(1) |
As of September 30, 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.
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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:
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As of September 30, 2016 (In thousands) |
Amortized Cost |
|
Fair Value |
Due within one year |
$ |
531,572 |
|
|
$ |
531,730 |
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Due after one year through three years |
995,555 |
|
|
996,566 |
|
|
$ |
1,527,127 |
|
|
$ |
1,528,296 |
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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 and losses on available-for-sale securities for the three months ended September 30, 2016 and 2015 were immaterial.
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