Quarterly report pursuant to Section 13 or 15(d)

Marketable Securities

v3.10.0.1
Marketable Securities
3 Months Ended
Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]  
MARKETABLE SECURITIES
NOTE 5 – MARKETABLE SECURITIES
The amortized cost and fair value of marketable securities as of the dates indicated below were as follows:
As of September 30, 2018 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Corporate debt securities
$
600,825

 
$
137

 
$
(5,866
)
 
$
595,096

Money market funds and other
1,118,051

 

 

 
1,118,051

Sovereign securities
17,352

 

 
(147
)
 
17,205

U.S. Government agency securities
269,824

 
10

 
(2,252
)
 
267,582

U.S. Treasury securities
292,203

 

 
(3,292
)
 
288,911

Subtotal
2,298,255

 
147

 
(11,557
)
 
2,286,845

Add: Time deposits(1)
25,842

 

 

 
25,842

Less: Cash equivalents
1,181,895

 

 
(2
)
 
1,181,893

Marketable securities
$
1,142,202

 
$
147

 
$
(11,555
)
 
$
1,130,794

As of June 30, 2018 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Corporate debt securities
$
747,763

 
$
148

 
$
(7,508
)
 
$
740,403

Money market funds and other
863,115

 

 

 
863,115

Sovereign securities
17,293

 

 
(151
)
 
17,142

U.S. Government agency securities
326,508

 
16

 
(2,827
)
 
323,697

U.S. Treasury securities
411,329

 
3

 
(3,682
)
 
407,650

Subtotal
2,366,008

 
167

 
(14,168
)
 
2,352,007

Add: Time deposits(1)
54,537

 

 

 
54,537

Less: Cash equivalents
930,608

 

 

 
930,608

Marketable securities
$
1,489,937

 
$
167

 
$
(14,168
)
 
$
1,475,936

________________
(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. Most of the Company’s unrealized losses are due to changes in market interest rates and bond yields. 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 September 30, 2018 (In thousands)
Fair Value
 
Gross
Unrealized
Losses(1)
Corporate debt securities
$
518,894

 
$
(5,866
)
U.S. Treasury securities
271,554

 
(3,291
)
U.S. Government agency securities
238,564

 
(2,251
)
Sovereign securities
17,205

 
(147
)
Total
$
1,046,217

 
$
(11,555
)
__________________ 
(1) As of September 30, 2018, the amount of total gross unrealized losses related to investments that had been in a continuous loss position for 12 months or more was $7.3 million.

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 September 30, 2018 (In thousands)
Amortized Cost
 
Fair Value
Due within one year
$
650,451

 
$
645,992

Due after one year through three years
491,751

 
484,802

 
$
1,142,202

 
$
1,130,794


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, 2018 and 2017 were immaterial.