Quarterly report pursuant to Section 13 or 15(d)

Marketable Securities

v2.3.0.15
Marketable Securities
3 Months Ended
Sep. 30, 2011
Marketable Securities [Abstract]  
Marketable Securities
MARKETABLE SECURITIES
The amortized cost and fair value of marketable securities as of September 30, 2011 and June 30, 2011 were as follows:
As of September 30, 2011 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities
$
70,916

 
$
306

 
$
(36
)
 
$
71,186

U.S. Government agency securities
343,721

 
749

 
(338
)
 
344,132

Municipal securities
40,075

 
266

 
(3
)
 
40,338

Corporate debt securities
830,229

 
3,688

 
(2,196
)
 
831,721

Money market and other
578,442

 

 

 
578,442

Sovereign securities
32,283

 
132

 
(4
)
 
32,411

Subtotal
1,895,666

 
5,141

 
(2,577
)
 
1,898,230

Add: Time deposits(1)
45,117

 

 

 
45,117

Less: Cash equivalents
589,143

 

 

 
589,143

Marketable securities
$
1,351,640

 
$
5,141

 
$
(2,577
)
 
$
1,354,204


As of June 30, 2011 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities
$
58,754

 
$
165

 
$
(23
)
 
$
58,896

U.S. Government agency securities
319,375

 
931

 
(123
)
 
320,183

Municipal securities
38,688

 
275

 
(6
)
 
38,957

Corporate debt securities
870,591

 
5,162

 
(368
)
 
875,385

Money market and other
481,770

 

 

 
481,770

Sovereign securities
31,932

 
179

 
(25
)
 
32,086

Subtotal
1,801,110

 
6,712

 
(545
)
 
1,807,277

Add: Time deposits(1)
65,402

 

 

 
65,402

Less: Cash equivalents
545,475

 

 
(2
)
 
545,473

Marketable securities
$
1,321,037

 
$
6,712

 
$
(543
)
 
$
1,327,206

________________
(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 September 30, 2011:
 
(In thousands)
Fair Value
 
Gross
Unrealized
Losses(1)
U.S. Treasury securities
$
25,868

 
$
(36
)
U.S. Government agency securities
134,278

 
(338
)
Municipal securities
1,443

 
(3
)
Corporate debt securities
280,339

 
(2,196
)
Sovereign securities
2,497

 
(4
)
Total
$
444,425

 
$
(2,577
)
__________________ 
(1)
As of September 30, 2011, the amount of total gross unrealized losses 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 as of September 30, 2011, regardless of their classification on the Company's Condensed Consolidated Balance Sheet, were as follows:
(In thousands)
Amortized
Cost
 
Fair Value
Due within one year
$
320,316

 
$
321,151

Due after one year through three years
1,031,324

 
1,033,053

 
$
1,351,640

 
$
1,354,204


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 September 30, 2011 and 2010 were $0.7 million and $1.0 million, respectively.