Quarterly report pursuant to Section 13 or 15(d)

Marketable Securities

v2.4.0.6
Marketable Securities
3 Months Ended
Sep. 30, 2012
Investments, Debt and Equity 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 September 30, 2012 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities
$
77,149

 
$
152

 
$

 
$
77,301

U.S. Government agency securities
653,108

 
1,385

 
(16
)
 
654,477

Municipal securities
66,685

 
124

 
(17
)
 
66,792

Corporate debt securities
1,099,330

 
6,357

 
(161
)
 
1,105,526

Money market and other
538,499

 

 

 
538,499

Sovereign securities
27,497

 
95

 
(1
)
 
27,591

Subtotal
2,462,268

 
8,113

 
(195
)
 
2,470,186

Add: Time deposits(1)
56,534

 

 

 
56,534

Less: Cash equivalents
598,585

 

 

 
598,585

Marketable securities
$
1,920,217

 
$
8,113

 
$
(195
)
 
$
1,928,135

As of June 30, 2012 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities
$
91,387

 
$
67

 
$
(16
)
 
$
91,438

U.S. Government agency securities
633,587

 
981

 
(76
)
 
634,492

Municipal securities
66,538

 
107

 
(102
)
 
66,543

Corporate debt securities
914,134

 
3,826

 
(568
)
 
917,392

Money market and other
607,038

 

 

 
607,038

Sovereign securities
29,056

 
89

 

 
29,145

Equity securities
10

 

 

 
10

Subtotal
2,341,750

 
5,070

 
(762
)
 
2,346,058

Add: Time deposits(1)
62,431

 

 

 
62,431

Less: Cash equivalents
625,339

 

 

 
625,339

Marketable securities
$
1,778,842

 
$
5,070

 
$
(762
)
 
$
1,783,150

________________
(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 September 30, 2012 (In thousands)
Fair Value
 
Gross
Unrealized
Losses(1)
U.S. Treasury securities
$
2,038

 
$

U.S. Government agency securities
40,356

 
(16
)
Municipal securities
16,472

 
(17
)
Corporate debt securities
120,448

 
(161
)
Sovereign securities
3,000

 
(1
)
Total
$
182,314

 
$
(195
)
__________________ 
(1)
Of the total gross unrealized losses, there were no amounts that, as of September 30, 2012, had been in a continuous loss position for 12 months or more.

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, 2012 (In thousands)
Amortized Cost
 
Fair Value
Due within one year
$
457,709

 
$
458,759

Due after one year through three years
1,462,508

 
1,469,376

 
$
1,920,217

 
$
1,928,135


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. Net realized gains for the three months ended September 30, 2012 and 2011 were $0.3 million and $0.7 million, respectively.