Quarterly report pursuant to Section 13 or 15(d)

Marketable Securities

v2.4.0.6
Marketable Securities
 3 Months Ended
Dec. 31, 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 December 31, 2012 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities
$
91,927

 
$
151

 
$
(3
)
 
$
92,075

U.S. Government agency securities
579,062

 
1,240

 
(6
)
 
580,296

Municipal securities
77,595

 
87

 
(88
)
 
77,594

Corporate debt securities
1,003,918

 
4,796

 
(336
)
 
1,008,378

Money market and other
617,113

 
—

 
—

 
617,113

Sovereign securities
17,191

 
57

 
(3
)
 
17,245

Equity securities
350

 
7

 
—

 
357

Subtotal
2,387,156

 
6,338

 
(436
)
 
2,393,058

Add: Time deposits(1)
59,467

 
—

 
—

 
59,467

Less: Cash equivalents
641,585

 
—

 
—

 
641,585

Marketable securities
$
1,805,038

 
$
6,338

 
$
(436
)
 
$
1,810,940

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 December 31, 2012 (In thousands)
Fair Value
 
Gross
Unrealized
Losses(1)
U.S. Treasury securities
$
4,999

 
$
(3
)
U.S. Government agency securities
37,083

 
(6
)
Municipal securities
30,399

 
(88
)
Corporate debt securities
200,660

 
(336
)
Sovereign securities
966

 
(3
)
Total
$
274,107

 
$
(436
)
__________________ 
(1)
Of the total gross unrealized losses, there were no amounts that, as of December 31, 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 December 31, 2012 (In thousands)
Amortized Cost
 
Fair Value
Due within one year
$
355,965

 
$
356,693

Due after one year through three years
1,449,073

 
1,454,247

 
$
1,805,038

 
$
1,810,940


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 on the Company's investments for the three months ended December 31, 2012 were $1.0 million. Net realized losses on the Company's investments for the three months ended December 31, 2011 were $0.1 million. Net realized gains for the six months ended December 31, 2012 and 2011 were $1.4 million and $0.6 million, respectively.