Annual report pursuant to Section 13 and 15(d)

Marketable Securities

v3.5.0.2
Marketable Securities
 12 Months Ended
Jun. 30, 2016
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 June 30, 2016 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
U.S. Treasury securities
$
326,321

 
$
1,181

 
$
—

 
$
327,502

U.S. Government agency securities
404,889

 
830

 
(14
)
 
405,705

Municipal securities
5,014

 
2

 
—

 
5,016

Corporate debt securities
676,259

 
2,372

 
(157
)
 
678,474

Money market and other
626,156

 
—

 
—

 
626,156

Sovereign securities
41,224

 
38

 
(5
)
 
41,257

Subtotal
2,079,863

 
4,423

 
(176
)
 
2,084,110

Add: Time deposits(1)
77,131

 
—

 
—

 
77,131

Less: Cash equivalents
778,451

 
1

 
(17
)
 
778,435

Marketable securities
$
1,378,543

 
$
4,422

 
$
(159
)
 
$
1,382,806

 
 
 
 
 
 
 
 
As of June 30, 2015 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
U.S. Treasury securities
$
274,965

 
$
605

 
$
(15
)
 
$
275,555

U.S. Government agency securities
571,843

 
551

 
(126
)
 
572,268

Municipal securities
31,819

 
7

 
(10
)
 
31,816

Corporate debt securities
625,965

 
511

 
(515
)
 
625,961

Money market and other
611,385

 
—

 
—

 
611,385

Sovereign securities
57,091

 
33

 
(31
)
 
57,093

Subtotal
2,173,068

 
1,707

 
(697
)
 
2,174,078

Add: Time deposits(1)
29,941

 
—

 
—

 
29,941

Less: Cash equivalents
654,933

 
—

 
—

 
654,933

Marketable securities
$
1,548,076

 
$
1,707

 
$
(697
)
 
$
1,549,086

__________________ 
(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 believes that it 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 June 30, 2016 (In thousands)
Fair Value
 
Gross
Unrealized
Losses(1)
Corporate debt securities
$
94,448

 
$
(140
)
U.S. Government agency securities
40,306

 
(14
)
Sovereign securities
19,341

 
(5
)
Total
$
154,095

 
$
(159
)
 __________________ 
(1)
As of June 30, 2016, 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 Consolidated Balance Sheet, as of the date indicated below were as follows:
As of June 30, 2016 (In thousands)
Amortized
Cost
 
Fair Value
Due within one year
$
468,650

 
$
468,985

Due after one year through three years
909,893

 
913,821

 
$
1,378,543

 
$
1,382,806


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 fiscal years ended June 30, 2016, 2015 and 2014 were $0.9 million, $2.4 million and $2.2 million, respectively. Realized losses on available for sale securities were immaterial for all years presented.