KLA Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

MARKETABLE SECURITIES

MARKETABLE SECURITIES

9 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

The amortized cost and fair value of marketable securities as of the dates indicated below were as follows:


As of March 31, 2022 (In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Corporate debt securities	$	477,237	$	18	$	(6,244)	$	471,011
Money market funds and other	734,466		—		—		734,466

Municipal securities	66,714		—		(1,011)		65,703
Sovereign securities	6,044		2		(46)		6,000
U.S. Government agency securities	115,223		38		(1,012)		114,249
U.S. Treasury securities	355,576		13		(6,771)		348,818
Equity securities(1)	3,211		12,585		—		15,796

Subtotal	1,758,471		12,656		(15,084)		1,756,043
Add: Time deposits(2)	270,290		—		—		270,290
Less: Cash equivalents	863,609		—		—		863,609
Marketable securities	$	1,165,152	$	12,656	$	(15,084)	$	1,162,724


As of June 30, 2021 (In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Corporate debt securities	$	468,192	$	689	$	(135)	$	468,746
Money market funds and other	691,375		—		—		691,375
Municipal securities	70,155		106		(33)		70,228
Sovereign securities	3,045		7		—		3,052
U.S. Government agency securities	145,810		160		(49)		145,921
U.S. Treasury securities	233,052		129		(117)		233,064
Equity securities(1)	3,211		26,719		—		29,930

Subtotal	1,614,840		27,810		(334)		1,642,316
Add: Time deposits(2)	210,636		—		—		210,636
Less: Cash equivalents	793,040		—		—		793,040
Marketable securities	$	1,032,436	$	27,810	$	(334)	$	1,059,912

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(1) Unrealized gains on equity securities included in our portfolio include the initial fair value adjustment recorded upon a security becoming marketable.

(2) Time deposits excluded from fair value measurements.

Our investment portfolio includes 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 our unrealized losses are due to changes in market interest rates and bond yields. We believe that we have the ability to realize the full value of all of these investments upon maturity. As of March 31, 2022, we had 543 investments in a gross unrealized loss position. Our investments that were in a continuous loss position of 12 months or more, as well as the unrealized losses on those investments, were immaterial. The following table summarizes the fair value and gross unrealized losses of our investments that were in an unrealized loss position as of the date indicated below.


As of March 31, 2022 (In thousands)	Fair Value		Gross Unrealized Losses
Corporate debt securities	$	439,540	$	(6,244)
Sovereign securities	2,969		(46)
Municipal securities	65,352		(1,011)
U.S. Government agency securities	75,936		(1,012)
U.S. Treasury securities	333,334		(6,771)
Total	$	917,131	$	(15,084)


As of June 30, 2021 (In thousands)	Fair Value		Gross Unrealized Losses
Corporate debt securities	$	161,012	$	(135)

Municipal securities	21,605		(33)
U.S. Government agency securities	38,904		(49)
U.S. Treasury securities	117,761		(117)
Total	$	339,282	$	(334)

The contractual maturities of securities classified as available-for-sale, regardless of their classification on our Condensed Consolidated Balance Sheets, as of the date indicated below were as follows:


As of March 31, 2022 (In thousands)	Amortized Cost		Fair Value
Due within one year	$	550,125	$	560,500
Due after one year through three years	615,027		602,224
Total	$	1,165,152	$	1,162,724

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 and nine months ended March 31, 2022 and 2021 were immaterial.