Quarterly report pursuant to Section 13 or 15(d)

Marketable Securities

v2.4.0.8
Marketable Securities
3 Months Ended
Sep. 30, 2013
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, 2013 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities
$
147,198

 
$
100

 
$
(62
)
 
$
147,236

U.S. Government agency securities
684,400

 
754

 
(405
)
 
684,749

Municipal securities
104,743

 
60

 
(270
)
 
104,533

Corporate debt securities
1,095,912

 
2,919

 
(895
)
 
1,097,936

Money market and other
685,074

 

 

 
685,074

Sovereign securities
33,198

 
18

 
(14
)
 
33,202

Equity securities
1,360

 
768

 

 
2,128

Subtotal
2,751,885

 
4,619

 
(1,646
)
 
2,754,858

Add: Time deposits(1)
20,713

 

 

 
20,713

Less: Cash equivalents
728,645

 

 

 
728,645

Marketable securities
$
2,043,953

 
$
4,619

 
$
(1,646
)
 
$
2,046,926

As of June 30, 2013 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities
$
93,940

 
$
53

 
$
(206
)
 
$
93,787

U.S. Government agency securities
598,471

 
569

 
(1,009
)
 
598,031

Municipal securities
103,686

 
71

 
(302
)
 
103,455

Corporate debt securities
1,103,438

 
2,353

 
(2,466
)
 
1,103,325

Money market and other
817,608

 

 

 
817,608

Sovereign securities
33,799

 
25

 
(19
)
 
33,805

Subtotal
2,750,942

 
3,071

 
(4,002
)
 
2,750,011

Add: Time deposits(1)
43,413

 

 

 
43,413

Less: Cash equivalents
859,933

 

 

 
859,933

Marketable securities
$
1,934,422

 
$
3,071

 
$
(4,002
)
 
$
1,933,491

________________
(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, 2013 (In thousands)
Fair Value
 
Gross
Unrealized
Losses(1)
U.S. Treasury securities
$
30,627

 
$
(62
)
U.S. Government agency securities
248,191

 
(405
)
Municipal securities
61,180

 
(270
)
Corporate debt securities
367,513

 
(895
)
Sovereign securities
21,127

 
(14
)
Total
$
728,638

 
$
(1,646
)
__________________ 
(1)
Of the total gross unrealized losses, 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.

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, 2013 (In thousands)
Amortized Cost
 
Fair Value
Due within one year
$
478,400

 
$
480,079

Due after one year through three years
1,565,553

 
1,566,847

 
$
2,043,953

 
$
2,046,926


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 on available-for-sale securities for the three months ended September 30, 2013 and September 30, 2012 were each $0.3 million. Realized losses on available-for-sale securities for the three months ended September 30, 2013 and September 30, 2012 were immaterial.