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

Quarterly report pursuant to Section 13 or 15(d)

MARKETABLE SECURITIES

MARKETABLE SECURITIES

3 Months Ended

Sep. 30, 2021

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 September 30, 2021 (In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Corporate debt securities	$	467,126	$	516	$	(113)	$	467,529
Money market funds and other	690,579		—		—		690,579

Municipal securities	70,830		83		(21)		70,892
Sovereign securities	5,044		7		(2)		5,049
U.S. Government agency securities	126,088		103		(44)		126,147
U.S. Treasury securities	247,853		30		(119)		247764年
Equity securities (1)	3,211		15,442		—		18,653

Subtotal	1,610,731		16,181		(299)		1,626,613
Add: Time deposits (2)	250,553		—		—		250,553
Less: Cash equivalents	761,917		—		—		761,917
Marketable securities	$	1,099,367	$	16,181	$	(299)	$	1,115,249


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	691375年		—		—		691375年
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)	210636年		—		—		210636年
Less: Cash equivalents	793,040		—		—		793,040
Marketable securities	$	1,032,436	$	27,810	$	(334)	$	1,059,912

________________

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

(2) Time deposits excluded from fair value measurements.

Our 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. 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 September 30, 2021, we had 197 investments in an unrealized loss position. 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, none of which were in a continuous loss position for 12 months or more:


As of September 30, 2021 (In thousands)	Fair Value		Gross Unrealized Losses
Corporate debt securities	$	142,915	$	(113)
Sovereign securities	2,002		(2)
Municipal securities	16,727		(21)
U.S. Government agency securities	37,410		(44)
U.S. Treasury securities	172,839		(119)
Total	$	371,893	$	(299)


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	38904年		(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 September 30, 2021 (In thousands)	摊余成本		Fair Value
Due within one year	$	547,941	$	563,772
Due after one year through three years	551,426		551,477
Total	$	1,099,367	$	1,115,249

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 months ended September 30, 2021 and 2020 were immaterial.