XML 20 R7.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Fair Value Measurements | 3 Months Ended
--- | ---
Sep. 30, 2016
Fair Value Disclosures [Abstract] |
FAIR VALUE MEASUREMENTS | NOTE 2 – FAIR VALUE MEASUREMENTS The Company’s financial assets and liabilities are measured and recorded at fair value, except for certain equity investments in privately-held companies. These equity investments are generally accounted for under the cost method of accounting and are periodically assessed for other-than-temporary impairment when an event or circumstance indicates that an other-than-temporary decline in value may have occurred. The Company’s non-financial assets, such as goodwill, intangible assets, and land, property and equipment, are recorded at cost and are assessed for impairment when an event or circumstance indicates that an other-than-temporary decline in value may have occurred. Fair Value of Financial Instruments. KLA-Tencor has evaluated the estimated fair value of financial instruments using available market information and valuations as provided by third-party sources. The use of different market assumptions and/or estimation methodologies could have a significant effect on the estimated fair value amounts. The fair value of the Company’s cash equivalents, accounts receivable, accounts payable and other current liabilities approximate their carrying amounts due to the relatively short maturity of these items. Fair Value Hierarchy. The authoritative guidance for fair value measurements establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:
Level 1 |  | Valuations based on quoted prices in active markets for identical assets or liabilities that the entity has the ability to access.
Level 2 |  | Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities.
Level 3 |  | Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company’s financial instruments were classified within Level 1 or Level 2 of the fair value hierarchy as of September 30, 2016, because they were valued using quoted market prices, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. As of September 30, 2016, the types of instruments valued based on quoted market prices in active markets included money market funds, U.S. Treasury securities, certain U.S. Government agency securities and certain sovereign securities. Such instruments are generally classified within Level 1 of the fair value hierarchy. As of September 30, 2016, the types of instruments valued based on other observable inputs included corporate debt securities, certain U.S. Government agency securities, municipal securities, and certain sovereign securities. The market inputs used to value these instruments generally consist of market yields, reported trades and broker/dealer quotes. Such instruments are generally classified within Level 2 of the fair value hierarchy. The principal market in which the Company executes its foreign currency contracts is the institutional market in an over-the-counter environment with a relatively high level of price transparency. The market participants generally are large financial institutions. The Company’s foreign currency contracts’ valuation inputs are based on quoted prices and quoted pricing intervals from public data sources and do not involve management judgment. These contracts are typically classified within Level 2 of the fair value hierarchy. Financial assets (excluding cash held in operating accounts and time deposits) and liabilities measured at fair value on a recurring basis, as of the date indicated below, were presented on the Company’s Condensed Consolidated Balance Sheet as follows:
As of September 30, 2016 (In thousands) | Total |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2)
Assets |  |  |  |  |
Cash equivalents: |  |  |  |  |
U.S. Treasury securities | $ | 12,699 |  |  | $ | 12,699 |  |  | $ | — |
Corporate debt securities | 28,748 |  |  | — |  |  | 28,748 |
Money market and other | 581,240 |  |  | 581,240 |  |  | — |
Marketable securities: |  |  |  |  |
U.S. Treasury securities | 259,269 |  |  | 259,269 |  |  | — |
U.S. Government agency securities | 424,018 |  |  | 404,022 |  |  | 19,996 |
Municipal securities | 3,009 |  |  | — |  |  | 3,009 |
Corporate debt securities | 812,577 |  |  | — |  |  | 812,577 |
Sovereign securities | 21,971 |  |  | 1,004 |  |  | 20,967 |
Total cash equivalents and marketable securities(1) | 2,143,531 |  |  | 1,258,234 |  |  | 885,297 |
Other current assets: |  |  |  |  |
Derivative assets | 692 |  |  | — |  |  | 692 |
Other non-current assets: |  |  |  |  |
Executive Deferred Savings Plan | 174,752 |  |  | 133,380 |  |  | 41,372 |
Total financial assets(1) | $ | 2,318,975 |  |  | $ | 1,391,614 |  |  | $ | 927,361 |
Liabilities |  |  |  |  |
Other current liabilities: |  |  |  |  |
Derivative liabilities | $ | (7,637 | ) |  | $ | — |  |  | $ | (7,637 | )
Total financial liabilities | $ | (7,637 | ) |  | $ | — |  |  | $ | (7,637 | )
________________ (1) Excludes cash of $320.5 million held in operating accounts and time deposits of $30.5 million as of September 30, 2016. Financial assets (excluding cash held in operating accounts and time deposits) and liabilities measured at fair value on a recurring basis, as of the date indicated below, were presented on the Company’s Condensed Consolidated Balance Sheet as follows:
As of June 30, 2016 (In thousands) | Total |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2)
Assets |  |  |  |  |
Cash equivalents: |  |  |  |  |
U.S. Treasury securities | $ | 68,748 |  |  | $ | 68,748 |  |  | $ | — |
Corporate debt securities | 20,569 |  |  | — |  |  | 20,569 |
Money market and other | 626,156 |  |  | 626,156 |  |  | — |
Marketable securities: |  |  |  |  |
U.S. Treasury securities | 258,754 |  |  | 258,754 |  |  | — |
U.S. Government agency securities | 405,705 |  |  | 385,731 |  |  | 19,974 |
Municipal securities | 5,016 |  |  | — |  |  | 5,016 |
Corporate debt securities | 657,905 |  |  | — |  |  | 657,905 |
Sovereign securities | 41,257 |  |  | 6,426 |  |  | 34,831 |
Total cash equivalents and marketable securities(1) | 2,084,110 |  |  | 1,345,815 |  |  | 738,295 |
Other current assets: |  |  |  |  |
Derivative assets | 1,095 |  |  | — |  |  | 1,095 |
Other non-current assets: |  |  |  |  |
Executive Deferred Savings Plan | 162,160 |  |  | 106,149 |  |  | 56,011 |
Total financial assets(1) | $ | 2,247,365 |  |  | $ | 1,451,964 |  |  | $ | 795,401 |
Liabilities |  |  |  |  |
Other current liabilities: |  |  |  |  |
Derivative liabilities | $ | (11,647 | ) |  | $ | — |  |  | $ | (11,647 | )
Total financial liabilities | $ | (11,647 | ) |  | $ | — |  |  | $ | (11,647 | )
________________ (1) Excludes cash of $330.1 million held in operating accounts and time deposits of $77.1 million as of June 30, 2016. There were no transfers between Level 1 and Level 2 fair value measurements during the three months ended September 30, 2016. The Company did not have any assets or liabilities measured at fair value on a recurring basis within Level 3 fair value measurements as of September 30, 2016 or June 30, 2016.

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13537-108611 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13504-108611 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13433-108611 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration