Quarterly report pursuant to Section 13 or 15(d)

Marketable Securities

v3.6.0.2
Marketable Securities
6 Months Ended
Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]  
MARKETABLE SECURITIES
NOTE 4 – MARKETABLE SECURITIES
The amortized cost and fair value of marketable securities as of the dates indicated below were as follows:
As of December 31, 2016 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Corporate debt securities
$
936,011

 
$
205

 
$
(2,969
)
 
$
933,247

Money market and other
552,189

 

 

 
552,189

Municipal securities
1,004

 

 

 
1,004

Sovereign securities
58,129

 
1

 
(106
)
 
58,024

U.S. Treasury securities
312,438

 
71

 
(1,203
)
 
311,306

U.S. Government agency securities
380,532

 
57

 
(1,957
)
 
378,632

Subtotal
2,240,303

 
334

 
(6,235
)
 
2,234,402

Add: Time deposits(1)
30,814

 

 

 
30,814

Less: Cash equivalents
609,272

 

 

 
609,272

Marketable securities
$
1,661,845

 
$
334

 
$
(6,235
)
 
$
1,655,944

As of June 30, 2016 (In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Corporate debt securities
$
676,259

 
$
2,372

 
$
(157
)
 
$
678,474

Money market and other
626,156

 

 

 
626,156

Municipal securities
5,014

 
2

 

 
5,016

Sovereign securities
41,224

 
38

 
(5
)
 
41,257

U.S. Treasury securities
326,321

 
1,181

 

 
327,502

U.S. Government agency securities
404,889

 
830

 
(14
)
 
405,705

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

________________
(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 December 31, 2016 (In thousands)
Fair Value
 
Gross
Unrealized
Losses(1)
Corporate debt securities
$
702,366

 
$
(2,969
)
U.S. Government agency securities
310,258

 
(1,957
)
U.S. Treasury securities
173,202

 
(1,203
)
Sovereign securities
43,433

 
(106
)
Municipal securities
1,004

 

Total
$
1,230,263

 
$
(6,235
)
__________________ 
(1)
As of December 31, 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 Condensed Consolidated Balance Sheet, as of the date indicated below were as follows:
As of December 31, 2016 (In thousands)
Amortized Cost
 
Fair Value
Due within one year
$
673,708

 
$
673,484

Due after one year through three years
988,137

 
982,460

 
$
1,661,845

 
$
1,655,944


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 six months ended December 31, 2016 and 2015 were immaterial.