Note 6 - Deferred Income and Allowances on Sales to Distributors Tables

6 Months Ended

Jul. 01, 2011

Deferred Income And Allowances On Sales To Distributors [Abstract]

Deferred Income And Allowances On Sales To Distributors [Text Block]

Deferred income and allowances on sales to distributors was comprised of the following:

(In thousands)	July 1, 2011			December 31, 2010
Deferred revenue on shipment to distributors	$	413,031		$	529,332
Deferred cost of sales on shipment to distributors	(36,377		)	(42,044		)
Deferred income on shipment to distributors	376,654			487,288
Advances to distributors	(4,683		)	(66,495		)
Other deferred revenue(1)	8,817			7,918
Total	$	380,788		$	428,711

(1)    Principally represents revenue deferred on our software and intellectual property licenses.

Deferred Revenue, by Arrangement, Disclosure [Table Text Block]

The deferred income and allowances on sales to distributors activity for the six months ended July 1, 2011 and July 2, 2010 was as follows:

	Six Months Ended
(In thousands)	July 1, 2011			July 2, 2010
Balance at beginning of period	$	428,711		$	281,885
Deferred revenue recognized upon shipment to distributors	2,633,755			4,216,374
Deferred costs of sales recognized upon shipment to distributors	(169,519		)	(246,151		)
Decrease/(increase) in advances to distributors	61,812			(96,456		)
Revenue recognized upon sell-through to end customers	(654,099		)	(744,607		)
Costs of sales recognized upon sell-through to end customers	162,787			217,260
Earned distributor price concessions (1)	(1,990,272		)	(3,188,650		)
Returns	(93,286		)	(43,300		)
Increase/(decrease) in other deferred revenue	899			(926		)
Balance at end of period	$	380,788		$	395,429

(1)    Average aggregate price concessions typically range from 65% to 80% of our list price on an annual basis, depending upon the composition of our sales, volumes, and factors associated with timing of shipments to distributors.