10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2011

OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to ________

Commission file number 0-16617

ALTERA CORPORATION

(Exact name of registrant as specified in its charter)

DELAWARE	77-0016691
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

101 INNOVATION DRIVE

SAN JOSE, CALIFORNIA 95134

(Address of principal executive offices) (zip code)

408-544-7000

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [x] No [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [x] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer [x] Accelerated filer [ ] Non-accelerated filer [ ] Smaller reporting company [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [x]

Number of shares of common stock outstanding at October 12, 2011: 320,863,017

	PAGE NUMBER
PART I FINANCIAL INFORMATION
ITEM 1. Financial Statements (Unaudited)
Consolidated Balance Sheets	3
Consolidated Statements of Income	4
Consolidated Statements of Cash Flows	5
Notes to Consolidated Financial Statements	6
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	19
ITEM 3. Quantitative and Qualitative Disclosures about Market Risk	28
ITEM 4. Controls and Procedures	29
PART II OTHER INFORMATION
ITEM 1. Legal Proceedings	29
ITEM 1A. Risk Factors	29
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds	30
ITEM 6. Exhibits	31
Signatures	32
Exhibit 31.1
Exhibit 31.2
Exhibit 32.1
Exhibit 32.2
EX-101 Instance Document
EX-101 Schema Document
EX-101 Calculation Linkbase Document
EX-101 Label Linkbase Document
EX-101 Presentation Linkbase Document
EX-101 Definition Linkbase Document

2

PART I FINANCIAL INFORMATION

ITEM 1: Financial Statements

ALTERA CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except par value amount)	September 30, 2011			December 31, 2010
Assets
Current assets:
Cash and cash equivalents	$	3,177,314		$	2,765,196
Short-term investments	61,399			—
Total cash, cash equivalents, and short-term investments	3,238,713			2,765,196
Accounts receivable, net	386,842			363,614
Inventories	134,028			146,524
Deferred income taxes — current	80,478			66,839
Deferred compensation plan — marketable securities	50,809			54,419
Deferred compensation plan — restricted cash equivalents	18,157			19,817
Other current assets	60,151			114,601
Total current assets	3,969,178			3,531,010
Property and equipment, net	171,100			164,155
Long-term investments	66,780			—
Deferred income taxes — non-current	29,781			37,319
Other assets, net	34,971			27,353
Total assets	$	4,271,810		$	3,759,837
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	54,367		$	86,061
Accrued liabilities	23,053			23,278
Accrued compensation and related liabilities	79,617			83,773
Deferred compensation plan obligations	68,966			74,236
Deferred income and allowances on sales to distributors	439,826			428,711
Income taxes payable	1,592			428
Credit facility	500,000			—
Total current liabilities	1,167,421			696,487
Income taxes payable — non-current	260,790			231,833
Credit facility	—			500,000
Other non-current liabilities	8,831			7,865
Total liabilities	1,437,042			1,436,185
Commitments and contingencies
(See “Note 11 — Commitments and Contingencies”)
Stockholders' equity:
Common stock: $.001 par value; 1,000,000 shares authorized; outstanding - 320,855 shares at September 30, 2011 and 319,494 shares at December 31, 2010	321			319
Capital in excess of par value	1,011,865			908,989
Accumulated other comprehensive loss	(190		)	—
Retained earnings	1,822,772			1,414,344
Total stockholders' equity	2,834,768			2,323,652
Total liabilities and stockholders' equity	$	4,271,810		$	3,759,837

See accompanying notes to consolidated financial statements.

3

ALTERA CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended						Nine Months Ended
(In thousands, except per share amounts)	September 30, 2011			October 1, 2010			September 30, 2011			October 1, 2010
Net sales	$	522,474		$	527,453		$	1,606,671		$	1,399,048
Cost of sales	166,938			157,899			473,565			405,646
Gross margin	355,536			369,554			1,133,106			993,402
Research and development expense	80,771			67,896			235,438			197,861
Selling, general, and administrative expense	69,345			63,473			208,550			190,421
Compensation (benefit) expense — deferred compensation plan	(6,642		)	4,699			(4,926		)	3,285
Loss (gain) on deferred compensation plan securities	6,642			(4,699		)	4,926			(3,285		)
Interest income and other	(663		)	(1,092		)	(2,505		)	(2,394		)
Interest expense	806			1,098			2,717			3,492
Income before income taxes	205,277			238,179			688,906			604,022
Income tax expense	19,873			20,688			64,806			52,751
Net income	$	185,404		$	217,491		$	624,100		$	551,271
Net income per share:
Basic	$	0.58		$	0.70		$	1.94		$	1.81
Diluted	$	0.57		$	0.69		$	1.90		$	1.78
Shares used in computing per share amounts:
Basic	321,745			309,766			322,012			304,267
Diluted	327,044			317,069			328,264			310,367
Cash dividends per common share	$	0.08		$	0.06		$	0.20		$	0.16

See accompanying notes to consolidated financial statements.

4

ALTERA CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

	Nine Months Ended
	September 30, 2011			October 1, 2010
Cash Flows from Operating Activities:
Net income	$	624,100		$	551,271
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	23,443			20,276
Stock-based compensation	59,983			44,898
Deferred income tax benefit	(9,549		)	(16,493		)
Tax effect of employee stock plans	26,077			14,602
Excess tax benefit from employee stock plans	(22,959		)	(12,879		)
Changes in assets and liabilities:
Accounts receivable, net	(23,228		)	(128,668		)
Inventories	12,496			(38,448		)
Other assets	47,986			(43,946		)
Accounts payable and other liabilities	(40,004		)	112,788
Deferred income and allowances on sales to distributors	11,115			103,665
Income taxes payable	30,122			42,358
Deferred compensation plan obligations	(345		)	(2,880		)
Net cash provided by operating activities	739,237			646,544
Cash Flows from Investing Activities:
Purchases of property and equipment	(23,178		)	(6,325		)
Sales of deferred compensation plan securities, net	345			2,880
Purchases of available-for-sale securities	(130,146		)	—
Proceeds from sale and maturity of available-for-sale securities	1,750			—
Purchases of intangible assets	—			(1,500		)
Net cash used in investing activities	(151,229		)	(4,945		)
Cash Flows from Financing Activities:
Proceeds from issuance of common stock through various stock plans	93,619			284,776
Shares withheld for employee taxes	(31,122		)	(19,880		)
Payment of dividends to stockholders	(64,328		)	(48,764		)
Repurchases of common stock	(197,018		)	—
Excess tax benefit from stock-based compensation	22,959			12,879
Principal payments on capital lease obligations	—			(2,866		)
Net cash (used in) provided by financing activities	(175,890		)	226,145
Net increase in cash and cash equivalents	412,118			867,744
Cash and cash equivalents at beginning of period	2,765,196			1,546,672
Cash and cash equivalents at end of period	$	3,177,314		$	2,414,416

See accompanying notes to consolidated financial statements.

5

ALTERA CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1 — Organization and Basis of Presentation

The accompanying unaudited consolidated financial statements of Altera Corporation and its subsidiaries, collectively referred to herein as “Altera”, “we”, “us”, or “our”, have been prepared by us in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. This financial information reflects all adjustments which are, in the opinion of our management, of a normal recurring nature and necessary for a fair statement of the results for the periods presented. The December 31, 2010 consolidated balance sheet data was derived from our audited consolidated financial statements included in our 2010 Annual Report on Form 10-K, as filed with the Securities and Exchange Commission (“SEC”), but does not include all disclosures required by U.S. GAAP. The consolidated financial statements include our accounts as well as those of our wholly-owned subsidiaries after elimination of all significant inter-company balances and transactions.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates.

These consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2010 included in our Annual Report on Form 10-K. The consolidated operating results for the three or nine months ended September 30, 2011 are not necessarily indicative of the results to be expected for any future period.

Note 2 — Recent Accounting Pronouncements

In May 2011, the Financial Accounting Standards Board ("FASB") issued amended guidance on fair value measurement and related disclosures. The new guidance clarified the concepts applicable for fair value measurement of non-financial assets and requires the disclosure of quantitative information about the unobservable inputs used in a fair value measurement. This guidance will be effective for reporting periods beginning after December 15, 2011, and will be applied prospectively. We are in the process of evaluating the financial and disclosure impact of this guidance. We do not anticipate a material impact on our consolidated financial statements as a result of the adoption of this amended guidance.

In June 2011, the FASB issued amended guidance on the presentation of comprehensive income. The amended guidance eliminates one of the presentation options provided by current U.S. GAAP, that is to present the components of other comprehensive income as part of the statement of changes in stockholders' equity. In addition, it gives an entity the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. This guidance will be effective for reporting periods beginning after December 15, 2011 and will be applied retrospectively. We are in the process of evaluating the disclosure impact of this guidance.

Note 3 — Financial Instruments

Management determines the appropriate classification of investments at the time of purchase. As of September 30, 2011, all investments in our portfolio were classified as available-for-sale. Available-for-sale investments are carried at their fair value based on quoted market prices as of the balance sheet date. Realized gains or losses are determined on the specific identification method and are reflected in Interest income and other in our consolidated statements of income. Net unrealized gains or losses are recorded directly in stockholders’ equity on a net of tax basis. Those unrealized losses that are deemed to be other than temporary are reflected in Interest income and other. Investments classified as long-term represent funds that are deemed to be in excess of our estimated operating requirements and have remaining maturities exceeding twelve months as of the balance sheet date.

6

The following tables summarize the our available-for-sale securities as of September 30, 2011. We did not own any available-for-sale securities as of December 31, 2010.

	September 30, 2011
(In thousands)	Adjusted Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Assets:
U.S. treasury securities	$	6,748	$	1	$	—		$	6,749
U.S. agency securities	57,662		8		(9		)	57,661
Non-U.S. government securities	8,931		1		(6		)	8,926
Municipal bond	752		—		—			752
Corporate securities	103,577		28		(239		)	103,366
Total available-for-sale securities	$	177,670	$	38	$	(254	)	$	177,454

The adjusted cost and estimated fair value of marketable debt securities (corporate bonds, municipal bonds, U.S. and foreign government securities, and U.S. treasury securities) as of September 30, 2011, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties.

	September 30, 2011
(In thousands)	Adjusted Cost		Estimated Fair Value
Due in one year or less	$	110,694	$	110,674
Due after one year through five years	66,976		66,780
	$	177,670	$	177,454

Note 4 — Accounts Receivable, Net and Significant Customers

Accounts receivable, net was comprised of the following:

(In thousands)	September 30, 2011			December 31, 2010
Gross accounts receivable	$	387,674		$	364,114
Allowance for doubtful accounts	(500		)	(500		)
Allowance for sales returns	(332		)	—
Accounts receivable, net	$	386,842		$	363,614

7

We sell our products to original equipment manufacturers, or OEMs, and to electronic components distributors who resell these products to OEMs, or their subcontract manufacturers. Net sales by customer type and net sales to significant customers were as follows:

	Three Months Ended				Nine Months Ended
(Percentage of Net Sales)	September 30, 2011		October 1, 2010		September 30, 2011		October 1, 2010
Sales to distributors	74	%	77	%	74	%	82	%
Sales to OEMs	26	%	23	%	26	%	18	%
	100	%	100	%	100	%	100	%
Significant Distributors(1):
Arrow Electronics, Inc. ( “Arrow”)	40	%	45	%	39	%	47	%
Macnica, Inc. (“Macnica”)	19	%	19	%	20	%	19	%

(1) Except as presented above, no other distributor accounted for greater than 10% of our net sales for the quarterly or year-to-date periods ended September 30, 2011 or October 1, 2010.

Huawei Technologies Co., Ltd. ("Huawei"), an OEM, accounted for 12% and 13% of our net sales for the quarterly and year-to-date periods ended September 30, 2011, respectively. Huawei accounted for 14% and 11% of our net sales for the quarterly and year-to-date periods ended October 1, 2010, respectively. No other individual OEM accounted for more than 10% of our net sales for the quarterly or year-to-date periods ended September 30, 2011 or October 1, 2010.

As of September 30, 2011, accounts receivable from Arrow, Macnica and Avnet, Inc. including its affiliates (“Avnet”), individually accounted for approximately 41%, 38% and 10%, respectively, of our total accounts receivable. As of December 31, 2010, accounts receivable from Arrow, Macnica and Avnet individually accounted for approximately 18%, 51% and 12%, respectively, of our total accounts receivable. No other distributor or OEM accounted for more than 10% of our accounts receivable as of September 30, 2011 or December 31, 2010. Accounts receivable from distributors may not be proportionate to net sales and may fluctuate on a quarterly basis due to varying factors, including inventory levels held by distributors and timing of price concessions and payments.

Note 5 — Inventories

Inventories were comprised of the following:

(In thousands)	September 30, 2011		December 31, 2010
Raw materials	$	10,266	$	9,833
Work in process	79,998		90,627
Finished goods	43,764		46,064
Total inventories	$	134,028	$	146,524

8

Note 6 — Property and Equipment

Property and equipment, net was comprised of the following:

(In thousands)	September 30, 2011			December 31, 2010
Land and land rights	$	23,157		$	23,108
Buildings	148,200			146,604
Equipment and software	227,084			206,935
Office furniture and fixtures	23,146			22,952
Leasehold improvements	7,423			6,773
Construction in progress	5,320			3,406
Property and equipment, at cost	434,330			409,778
Accumulated depreciation and amortization	(263,230		)	(245,623		)
Property and equipment, net	$	171,100		$	164,155

Depreciation expense includes the amortization of assets recorded under capital leases. Depreciation expense was $7.4 million and $21.1 million for the three and nine months ended September 30, 2011, respectively. Depreciation expense was $6.5 million and $19.9 million for the three and nine months ended October 1, 2010, respectively. Depreciation and amortization expense as presented in our consolidated statements of cash flows includes the above amounts, together with amortization expense on our intangible assets. Intangible asset amortization expense was not significant for any period presented in our consolidated statements of income.

Assets held under capital leases, included in Equipment and software as presented above, totaled $1.0 million (net of accumulated amortization of $13.8 million) as of September 30, 2011 and $5.0 million (net of accumulated amortization of $11.3 million) as of December 31, 2010.

Note 7 — Deferred Income and Allowances on Sales to Distributors

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

(In thousands)	September 30, 2011			December 31, 2010
Deferred revenue on shipment to distributors	$	470,793		$	529,332
Deferred cost of sales on shipment to distributors	(37,444		)	(42,044		)
Deferred income on shipment to distributors	433,349			487,288
Advances to distributors	(2,692		)	(66,495		)
Other deferred revenue(1)	9,169			7,918
Total	$	439,826		$	428,711

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

9

The Deferred income and allowances on sales to distributors activity for the nine months ended September 30, 2011 and October 1, 2010 was as follows:

	Nine Months Ended
(In thousands)	September 30, 2011			October 1, 2010
Balance at beginning of period	$	428,711		$	281,885
Deferred revenue recognized upon shipment to distributors	3,992,638			6,384,863
Deferred costs of sales recognized upon shipment to distributors	(227,189		)	(431,293		)
Decrease/(increase) in advances to distributors	63,803			(90,808		)
Revenue recognized upon sell-through to end customers	(979,877		)	(1,221,097		)
Costs of sales recognized upon sell-through to end customers	224,933			363,645
Earned distributor price concessions (1)	(2,952,593		)	(4,827,363		)
Returns	(111,851		)	(72,979		)
Increase/(decrease) in other deferred revenue	1,251			(1,303		)
Balance at end of period	$	439,826		$	385,550

(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.

We sell the majority of our products to distributors worldwide at a list price. However, distributors resell our products to end customers at a very broad range of individually negotiated prices based on a variety of factors, including customer, product, quantity, geography and competitive differentiation. The majority of our distributors' sales to their customers are priced at a discount from our list price. Under these circumstances, we remit back to the distributor a portion of its original purchase price after the resale transaction is completed and we validate the distributor's resale information, including end customer, device, quantity and price, against the distributor price concession that we have approved in advance. To receive price concessions, distributors must submit the price concession claims to us for approval within 60 days of the resale of the product to an end customer. It is our practice to apply these negotiated price discounts to future purchases, requiring the distributor to settle receivable balances, on a current basis, generally within 30 days, for amounts originally invoiced. This practice has an adverse impact on the working capital of our distributors. As such, we have entered into agreements with certain distributors whereby we advance cash to the distributors to reduce the distributor's working capital requirements. These advances are settled in cash at least on a quarterly basis and are estimated based on the amount of ending inventory as reported by the distributor multiplied by a negotiated percentage. Such advances have no impact on revenue recognition or our consolidated statements of income and are a component of Deferred income and allowances on sales to distributors on our consolidated balance sheets. We continuously process discounts taken by distributors against our Deferred income and allowances on sales to distributors. We adjust the recorded amount of the distributor advances based on cash settlements at the end of each quarter. These advances are set forth in binding legal agreements and are unsecured, bear no interest on unsettled balances, and are due upon demand. The agreements governing these advances can be canceled by us at any time.

Total price concessions earned by distributors were $3.0 billion and $4.8 billion for the nine months ended September 30, 2011 and October 1, 2010, respectively. The 2011 decrease in price concessions results from proportionately higher sales to OEMs in 2011 and higher sales to certain distributors at prices reflecting negotiated discounted end customer prices.

We also enter into arrangements that, in substance, finance distributors' accounts receivable and inventory. The amounts advanced are classified as Other current assets in our consolidated balance sheets and totaled $24.6 million as of September 30, 2011 and $66.3 million as of December 31, 2010. These arrangements are set forth in binding legal agreements and are unsecured, bear no interest on unsettled balances, and are due upon demand.

10

Note 8 — Comprehensive Income

The components of comprehensive income are as follows:

	Three Months Ended					Nine Months Ended
(in thousands)	September 30, 2011			October 1, 2010		September 30, 2011			October 1, 2010
Net income	$	185,404		$	217,491	$	624,100		$	551,271
Unrealized holding losses on available-for-sale securities, net of tax	(190		)	—		(190		)	—
Comprehensive income	$	185,214		$	217,491	$	623,910		$	551,271

Note 9 — Income Per Share

A reconciliation of basic and diluted income per share is presented below:

	Three Months Ended				Nine Months Ended
(In thousands, except per share amounts)	September 30, 2011		October 1, 2010		September 30, 2011		October 1, 2010
Basic:
Net income	$	185,404	$	217,491	$	624,100	$	551,271
Basic weighted shares outstanding	321,745		309,766		322,012		304,267
Net income per share	$	0.58	$	0.70	$	1.94	$	1.81
Diluted:
Net income	$	185,404	$	217,491	$	624,100	$	551,271
Weighted shares outstanding	321,745		309,766		322,012		304,267
Effect of dilutive securities:
Stock options, ESPP, and restricted stock unit shares	5,299		7,303		6,252		6,100
Diluted weighted shares outstanding	327,044		317,069		328,264		310,367
Net income per share	$	0.57	$	0.69	$	1.90	$	1.78

In applying the treasury stock method, we excluded 2.7 million and 1.4 million stock option shares and restricted stock units for the three and nine months ended September 30, 2011, respectively, and 1.0 million and 4.7 million stock option shares for the three and nine months ended October 1, 2010, respectively, because their effect was anti-dilutive. While these shares have been anti-dilutive, they could be dilutive in the future.

Note 10 — Credit Facility

Our total borrowings under our $750 million unsecured revolving credit facility (the “Facility”) as of September 30, 2011 and December 31, 2010 were $500 million. Borrowings under the Facility bear interest at either a Eurodollar rate (“LIBOR”) or a Prime rate, at our option, plus an applicable margin based upon certain financial ratios. The interest rate as of September 30, 2011 was LIBOR plus 0.27%. In addition, we pay a facility fee on the entire Facility. This facility fee varies with certain financial ratios and was 0.08% as of September 30, 2011. The principal amount of borrowings, together with accrued interest, is due on the maturity date in August 2012. As of September 30, 2011, $250 million was available under the Facility.

The terms of the Facility require compliance with certain financial covenants that require us to maintain specified financial ratios related to interest coverage and financial leverage. As of September 30, 2011, we were in compliance with all such covenants.

Note 11 — Commitments and Contingencies

11

Indemnification and Product Warranty

We indemnify certain customers, distributors, suppliers, and subcontractors for attorney's fees and damages and costs awarded against these parties in certain circumstances in which our products are alleged to infringe third party intellectual property rights, including patents, trade secrets, trademarks, or copyrights. We cannot estimate the amount of potential future payments, if any, that we might be required to make as a result of these agreements. To date, we have not paid any claim or been required to defend any action related to our indemnification obligations, and accordingly, we have not accrued any amounts for such indemnification obligations. However, we may record charges in the future as a result of these indemnification obligations.

We generally warrant our devices for one year against defects in materials, workmanship and material non-conformance to our specifications. We accrue for known warranty issues if a loss is probable and can be reasonably estimated, and accrue for estimated but unidentified issues based on historical activity. If there is a material increase in customer claims compared with our historical experience or if the costs of servicing warranty claims are greater than expected, we may record a charge against cost of sales. Warranty expense was not significant for any period presented in our consolidated statements of income.

Purchase Obligations

We depend entirely upon subcontractors to manufacture our silicon wafers and provide assembly and test services. Due to lengthy subcontractor lead times, we must order these materials and services from these subcontractors well in advance, and we are obligated to pay for the materials and services once they are completed. As of September 30, 2011, we had approximately $116.9 million of outstanding purchase commitments to such subcontractors. We expect to receive and pay for these materials and services over the next six months.

Operating Leases

We lease facilities under non-cancelable lease agreements expiring at various times through 2021. As of September 30, 2011, we have entered into an operating lease in Austin, Texas and an agreement to sign an operating lease in Toronto, Canada, respectively, both with a term of 10 years and total lease payment commitments of $36.9 million.

Legal Proceedings

We are named as a party to a lawsuit concerning our historical stock option practices and related accounting and reporting.

In May and July 2006, we were notified that three shareholder derivative lawsuits had been filed in the Superior Court of the State of California, County of Santa Clara, by persons identifying themselves as Altera shareholders and purporting to act on behalf of Altera, naming Altera Corporation as a nominal defendant and naming some of our current and former officers and directors as defendants. On July 12, 2006, one of these derivative actions was voluntarily dismissed by the plaintiff shareholder. The remaining two derivative lawsuits pending in Santa Clara Superior Court were consolidated into a single action on September 5, 2006. Plaintiffs filed a second amended consolidated complaint on December 15, 2006. On January 30, 2007, Altera and the defendants filed a motion to stay this action pending resolution of the federal derivative action (discussed below). On February 11, 2009, one of the remaining derivative plaintiffs voluntarily dismissed his derivative claims and, on March 20, 2009, the other remaining derivative plaintiff filed a third amended complaint. In June 2009, Altera and the defendants demurred to the third amended complaint. After the court issued a tentative ruling in favor of Altera, the parties agreed to stay the action in order to allow plaintiff to serve a demand on Altera's board of directors. The plaintiff served the demand on November 4, 2009. In the first quarter of 2010, the board of directors completed its review of the demand and decided to reject plantiff's demand. On June 1, 2010, the plaintiff filed a fourth amended complaint, alleging that the board of director’s decision to reject plaintiff’s demand was wrongful. On July 15, 2010, Altera demurred to the fourth amended complaint. In October 2010, the court dismissed plaintiff's fourth amended complaint and granted plaintiff leave to file a fifth amended complaint. On November 4, 2010, the plaintiff filed a fifth amended complaint, alleging that Altera's board of directors wrongfully refused his demand. On December 10, 2010, Altera, joined by the individual defendants, demurred to the fifth amended complaint. On March 23, 2011, the plaintiff entered into a stipulation agreeing to voluntarily dismiss the action with prejudice.  On April 21, 2011, the court entered an order dismissing the action with prejudice and set a dismissal review hearing for June 24, 2011.  The April 2011 order dismissing the action with prejudice was finalized at the June 2011 dismissal review hearing.

Plaintiff asserted claims against the individual defendants for breach of fiduciary duty, waste of corporate assets, unjust enrichment, violations of California Corporation Code section 25402, breach of fiduciary duty for insider selling and misappropriation of information, and deceit. Plaintiff's claims concerned the granting of stock options by Altera between 1994 and 2001 and the alleged filing of false and misleading financial statements between 1994 and 2006. All of these claims were

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asserted derivatively on behalf of Altera. Plaintiff sought, among other relief, an indeterminate amount of damages from the individual defendants and a judgment directing Altera to reform its corporate governance practices.

During the months of May, June, and July 2006, four other derivative lawsuits were filed by purported Altera shareholders, on behalf of Altera, in the United States District Court for the Northern District of California. On August 8, 2006, these actions were consolidated, and the plaintiffs filed a consolidated complaint on November 30, 2006. On September 15, 2008, the plaintiffs voluntarily agreed to dismiss the case. On September 18, 2008, the court entered an order dismissing the case.

On December 8, 2010, Intellectual Ventures I LLC and Intellectual Ventures II LLC (“Intellectual Ventures”) filed a lawsuit in the United States District Court for the District of Delaware against Altera, Microsemi Corporation, and Lattice Semiconductor Corporation alleging that Altera is infringing five patents.  The complaint requests unspecified monetary damages including enhanced damages for willful infringement. In February 2011, Intellectual Ventures filed a First Amended Complaint adding Xilinx, Inc. as a defendant. In March 2011, Altera answered the complaint and asserted counterclaims against Intellectual Ventures for non-infringement and invalidity of the asserted patents. The defendants have filed motions in the District of Delaware to transfer the case to the United States District Court for the Northern District of California and to stay the action pending re-examination proceedings in the United States Patent and Trademark Office.  Intellectual Ventures has opposed the motions, which are still pending before the court. Because the case is at a very early stage, it is not possible for us to determine whether there is a reasonable possibility that a loss has been incurred nor can we estimate the range of potential loss.

On June 24, 2011, Altera filed an action in the United States District Court for the Northern District of California against LSI Corporation and Agere Systems, Inc. (collectively “LSI”). The action alleges that LSI infringes various patents owned by Altera and also seeks a declaratory judgment that Altera does not infringe various patents owned by LSI and/or Agere (the “LSI patents”) and that the LSI patents are invalid. In September 2011, LSI answered the complaint and asserted counterclaims of patent infringement against Altera. Because the case is at a very early stage, it is not possible for us to determine whether there is a reasonable possibility that a loss has been incurred nor can we estimate the range of potential loss.

Note 12 — Stock-Based Compensation

Our stock-based compensation plans include the 2005 Equity Incentive Plan (the “2005 Plan”) and the 1987 Employee Stock Purchase Plan (the “ESPP”).

2005 Plan

Our equity incentive program is a broad-based, long-term retention program intended to attract, motivate, and retain talented employees as well as align stockholder and employee interests. The 2005 Plan provides stock-based incentive compensation (“awards”) to both our eligible employees and non-employee directors. Awards that may be granted under the 2005 Plan include non-qualified and incentive stock options, restricted stock units (“RSU”s), performance-based restricted stock units (“PRSU”s), restricted stock awards, stock appreciation rights, and stock bonus awards. To date, awards granted under the 2005 Plan consist of stock options, RSUs and PRSUs. The majority of stock-based awards granted under the 2005 Plan vest over four years. Stock options granted under the 2005 Plan have a maximum contractual term of ten years. On May 10, 2011, our stockholders approved an amendment to the 2005 Plan to increase the shares reserved for future issuance by 10 million. As of September 30, 2011, the 2005 Plan had a total of 30.0 million shares reserved for future issuance, of which 19.4 million shares were available for future grants.

A summary of activity for our RSUs and PRSUs for the nine months ended September 30, 2011 and information regarding

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RSUs and PRSUs outstanding and expected to vest as of September 30, 2011 is as follows:

(In thousands, except per share amounts and terms)	Number of Shares		Weighted-Average Grant-Date Fair Market Value Per Share		Weighted-Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value (1)
Outstanding, December 31, 2010	7,613		$	22.95
Grants	3,403		$	42.43
Vested	(2,569	)	$	21.87
Forfeited	(363	)	$	27.11
Outstanding, September 30, 2011	8,084		$	31.30	1.8	$	254,898
Vested and expected to vest, September, 30, 2011	6,998		$	31.30	1.7	$	220,648

(1) Aggregate intrinsic value represents the closing price per share of our stock on September 30, 2011, multiplied by the number of RSUs and PRSUs outstanding or vested and expected to vest as of September 30, 2011.

A summary of stock option activity for the nine months ended September 30, 2011 and information regarding stock options outstanding, exercisable, and vested and expected to vest as of September 30, 2011 is as follows:

(In thousands, except per share amounts and terms)	Number of Shares		Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value (1)
Outstanding, December 31, 2010	10,179		$	20.61
Grants	806		$	42.37
Exercises	(3,950	)	$	21.42
Forfeited/Cancelled/Expired	(38	)	$	21.95
Outstanding, September 30, 2011	6,997		$	22.68	3.8	$	70,651
Exercisable, September 30, 2011	5,981		$	20.28	2.9	$	67,312
Vested and expected to vest, September 30, 2011	6,856		$	22.33	3.7	$	70,411

(1) For those stock options with an exercise price below the closing price per share on September 30, 2011, aggregate intrinsic value represents the difference between the exercise price and the closing price per share of our common stock on September 30, 2011, multiplied by the number of stock options outstanding, exercisable, or vested and expected to vest as of September 30, 2011.

For the three and nine months ended September 30, 2011, 0.3 million and 3.9 million non-qualified stock option shares wereexercised, respectively. The total intrinsic value of stock options exercised for the three and nine months ended September 30, 2011 was $5.9 million and $83.2 million, respectively. The aggregate intrinsic value represents the difference between the exercise price and the selling price received by option holders upon the exercise of stock options during the period. The total cash received from employees as a result of employee stock option exercises during the three and nine months ended September 30, 2011 was $6.5 million and $84.6 million, respectively.

ESPP

Our ESPP has two consecutive, overlapping twelve-month offering periods, with a new period commencing on the first trading day on or after May 1 and November 1 of each year and terminating on the last trading day on or before April 30 and October 31. Each twelve-month offering period generally includes two six-month purchase periods. The purchase price at which shares are sold under the ESPP is 85% of the lower of the fair market value of a share of our common stock on (1) the first day of the offering period, or (2) the last trading day of the purchase period. If the fair market value at the end of any purchase period is less than the fair market value at the beginning of the offering period, each participant is automatically withdrawn from the current offering period following the purchase of shares on the purchase date and is automatically re-enrolled in the immediately following offering period.

We sold 402,913 shares of common stock under the ESPP at a price of $22.40 during the nine months ended September 30,

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2011, and 595,861 shares of common stock under the ESPP at a price of $13.81 during the nine months ended October 1, 2010. On May 10, 2011, our stockholders approved an amendment to the ESPP to increase the shares reserved for future issuance by 1 million. As of September 30, 2011, 2.8 million shares were available for future issuance under the ESPP.

VALUATION AND EXPENSE INFORMATION

The assumptions used to estimate the fair value of ESPP, RSUs and PRSUs were as follows:

	Three Months Ended						Nine Months Ended
	September 30, 2011			October 1, 2010			September 30, 2011			October 1, 2010
ESPP purchase rights:
Expected term (in years)	—			—			0.8			0.7
Expected stock price volatility	—			—			34.5		%	31.2		%
Risk-free interest rate	—			—			0.2		%	0.3		%
Dividend yield	—			—			0.5		%	0.8		%
Weighted-average estimated fair value	—			—			$	12.88		$	6.56
RSUs and PRSUs:
Risk-free interest rate	0.5		%	0.7		%	0.6		%	0.8		%
Dividend yield	0.8		%	0.9		%	0.7		%	0.9		%
Weighted-average estimated fair value	$	41.50		$	27.33		$	41.71		$	26.32

In addition, we apply an expected forfeiture rate when amortizing stock-based compensation expense. Our stock-based compensation expense included in the consolidated statements of income for the three and nine months ended September 30, 2011 and October 1, 2010 was as follows:

	Three Months Ended						Nine Months Ended
(In thousands)	September 30, 2011			October 1, 2010			September 30, 2011			October 1, 2010
Cost of sales	$	450		$	303		$	1,200		$	897
Research and development	9,923			6,666			26,393			19,721
Selling, general, and administrative	12,178			8,180			32,390			24,280
Pre-tax stock-based compensation expense	22,551			15,149			59,983			44,898
Less: income tax benefit	(5,907		)	(4,330		)	(16,210		)	(13,045		)
Net stock-based compensation expense	$	16,644		$	10,819		$	43,773		$	31,853

No stock-based compensation was capitalized during any period presented above. As of September 30, 2011, unrecognized stock-based compensation cost related to outstanding unvested stock options, RSUs, PRSUs and ESPP shares that are expected to vest was approximately $192.2 million. This unrecognized stock-based compensation cost is expected to be recognized over a weighted average period of approximately 2.7 years. To the extent the actual forfeiture rate is different from what we have anticipated, stock-based compensation related to these awards will be different from that presented.

Note 13 — Income Taxes

Our effective tax rate reflects the impact of a significant amount of our earnings being taxed in foreign jurisdictions at rates below the U.S. statutory tax rate.

Our effective tax rate for the three months ended September 30, 2011 was 9.7%, compared with 8.7% for the three months ended October 1, 2010. During the three months ended October 1, 2010, our tax rate was favorably affected by adjustments to our liabilities for uncertain tax positions due primarily to the expiration of the statutes of limitations for certain foreign jurisdictions. The impact of similar adjustments during the three months ended September 30, 2011 was less significant, thereby causing an increase in our effective tax rate in 2011. The 2011 increase in our effective tax rate due to the

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above referenced factors was partially offset by the impact of proportionately higher 2011 earnings in foreign jurisdictions taxed at rates below the U.S. statutory tax rate and lower California tax liabilities due to a California law change effective in 2011.

Our effective tax rate for the nine months ended September 30, 2011 was 9.4%, compared with 8.7% for the nine months ended October 1, 2010. During the nine months ended October 1, 2010, our tax rate was favorably affected by adjustments to our liabilities for uncertain tax positions due primarily to the expiration of the statutes of limitations for certain foreign jurisdictions. The impact of similar adjustments during the nine months ended September 30, 2011 was less significant, thereby causing an increase in our effective tax rate in 2011. In addition, in 2010 we reversed $11.7 millionof liabilities for uncertain tax positions as a result of a 2010 U.S. court ruling which held that stock based compensation was not required to be included in certain transfer pricing arrangements between a U.S. company and its foreign subsidiary. The 2011 increase in our effective tax rate due to the above referenced factors was partially offset by the impact of proportionately higher 2011 earnings in foreign jurisdictions taxed at rates below the U.S. statutory tax rate and lower California tax liabilities due to a California law change effective in 2011.

We file income tax returns with the Internal Revenue Service (“IRS”) and in various states and foreign jurisdictions. The IRS has completed field examinations of our tax returns for 2002 through 2004 and has issued a notice of proposed adjustment seeking additional taxes of approximately $34.5 million (excluding interest) for those years. We paid $18.0 million to the IRS in 2008, representing a payment on bond for items associated with the IRS field examinations for 2002 through 2004. We are contesting through the administrative process the IRS claims regarding our 2002 through 2004 tax years. In addition, the IRS has completed field examinations of our tax returns for 2005 through 2007 and has issued a notice of proposed adjustment seeking additional taxes of approximately $34.2 million (excluding interest) for those years. We are contesting through the administrative process the IRS claims regarding our 2005 through 2007 tax years. Other significant jurisdictions in which we are or may be subject to examination for fiscal years 2003 forward include China (including Hong Kong), Ireland, Malaysia, Japan, United Kingdom, and the state of California. As mentioned below, we believe we have made adequate tax payments and/or accrued adequate amounts such that the outcome of these audits will have no material adverse effect on our consolidated operating results. Due to the potential resolution of federal, state and foreign examinations, and the expiration of various statutes of limitations, it is possible that our gross unrecognized tax benefits may change within the next twelve months. However, given the number of years remaining subject to examination and the number of matters being examined, we are unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits.

As of September 30, 2011 we had $276.1 million of unrecognized tax benefits, that if recognized, would impact our effective tax rate. On December 31, 2010, we had $243.3 million of unrecognized tax benefits. We are unable to make a reasonable estimate as to when cash settlements with the relevant taxing authorities will occur.

We recognize interest and penalties related to uncertain tax positions in our income tax provision. We had accrued approximately $53.1 million and $50.0 million for the payment of interest and penalties related to uncertain tax positions as of September 30, 2011 and December 31, 2010, respectively.

Note 14 — Non-Qualified Deferred Compensation Plan

We allow our U.S.-based officers and director-level employees to defer a portion of their compensation under the Altera Corporation Non-Qualified Deferred Compensation Plan (“NQDC Plan”). Our Retirement Plans Committee administers the NQDC Plan. As of September 30, 2011, there were 123 participants in the NQDC Plan who self-direct their investments, subject to certain limitations. In the event we become insolvent, the NQDC Plan assets are subject to the claims of our general creditors. Since the inception of the NQDC Plan, we have not made any contributions to the NQDC Plan and we have no commitments to do so in the future. There are no NQDC Plan provisions that provide for any guarantees or minimum return on investments. NQDC Plan participants are prohibited from investing NQDC Plan contributions in Altera common stock. The balance of the NQDC Plan assets and related obligations was $69.0 million and $74.2 million as of September 30, 2011 and December 31, 2010, respectively.

Investment income or loss earned by the NQDC Plan is recorded as Loss (Gain) on deferred compensation plan securities in our consolidated statements of income. The investment loss (gain) also represents a decrease (increase) in the future payout to participants and is recorded as Compensation (benefit) expense — deferred compensation plan in our consolidated statements of income. Compensation (benefit) expense associated with our NQDC Plan obligations is offset by loss (gain) from related securities. The net effect of investment income or loss and related compensation expense or benefit has no impact on our income before income taxes, net income, or cash balances.

Note 15 — Fair Value of Financial Instruments

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The following tables summarize the valuation of our financial instruments as of September 30, 2011 and December 31, 2010:

			Fair Value Measurements as of September 30, 2011
(In thousands)	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
Assets:
Cash and cash equivalents:
Money market funds	$	3,051,951	$	3,051,951	$	—
U.S. agency securities	19,320		—		19,320
Non-U.S. government securities	1,016		—		1,016
Corporate securities	28,939		13,998		14,941
Total (1)	$	3,101,226	$	3,065,949	$	35,277
Short-term marketable securities:
U.S treasury securities	6,749		6,749		—
U.S agency securities	30,845		—		30,845
Non-US government securities	5,394		—		5,394
Corporate securities	18,411		—		18,411
Total	$	61,399	$	6,749	$	54,650
Long-term marketable securities:
U.S agency securities	7,496		—		7,496
Non-US government securities	2,516		—		2,516
Municipal bond	752		—		752
Corporate securities	56,016		—		56,016
Total	$	66,780	$	—	$	66,780
Deferred compensation plan assets: (2)
Restricted cash equivalents	18,157		18,157		—
Equity securities	21,589		21,589		—
Fixed income securities	4,010				4,010
Mutual funds	25,210		25,210		—
Total	$	68,966	$	64,956	$	4,010
Total	$	3,298,371	$	3,137,654	$	160,717

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			Fair Value Measurements as of December 31, 2010
(In thousands)	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
Assets:
Cash and cash equivalents(1)
Money market funds	$	2,690,752	$	2,690,752	$	—
Deferred compensation plan assets(2)
Restricted cash equivalents	19,817		19,817		—
Equity securities	22,235		22,235		—
Fixed income securities	5,062		—		5,062
Mutual funds	27,122		27,122		—
Total	$	2,764,988	$	2,759,926	$	5,062

(1) Included in Cash and cash equivalents in our consolidated balance sheet

(2) Included in Deferred compensation plan — marketable securities and Deferred compensation plan — restricted cash equivalents in our consolidated balance sheets.

Note 16 — Subsequent Event

On October 17, 2011, our board of directors declared a quarterly cash dividend of $0.08 per common share, payable on December 1, 2011 to stockholders of record on November 10, 2011.

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ITEM 2: Management's Discussion and Analysis of Financial Condition and Results of Operations

The following Management's Discussion and Analysis of Financial Condition and Results of Operations, as well as information contained in the risk factors described in Item 1A of this report and elsewhere in this report, contains forward-looking statements, which are provided under the “safe harbor” protection of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally written in the future tense and/or are preceded by words such as “will,” “may,” “should,” “could,” “expect,” “suggest,” “believe,” “anticipate,” “intend,” “plan,” or other similar words. Examples of forward-looking statements include statements regarding (1) our gross margins and factors that affect gross margins; (2) trends in our future sales; (3) our research and development expenditures and efforts; (4) our capital expenditures; (5) our provision for tax liabilities and other critical accounting estimates; and (6) our exposure to market risks related to changes in interest rates, equity prices and foreign currency exchange rates.

Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. The forward-looking statements contained in this report are based on information that is currently available to us and expectations and assumptions that we deemed reasonable at the time the statements were made. We do not undertake any obligation to update any forward-looking statements in this report or in any of our other communications, except as required by law. All such forward-looking statements should be read as of the time the statements were made and with the recognition that these forward-looking statements may not be complete or accurate at a later date.

Many factors may cause actual results to differ materially from those expressed or implied by the forward-looking statements contained in this report. These factors include, but are not limited to, those risks described in Part II Item 1A of this report and those risks described under “Management's Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2010.

CRITICAL ACCOUNTING ESTIMATES

The preparation of our consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the United States requires our management to make judgments and estimates that affect the amounts reported in our consolidated financial statements and accompanying notes. Our management believes that we consistently apply these judgments and estimates and the consolidated financial statements and accompanying notes fairly represent all periods presented. However, any differences between these judgments and estimates and actual results could have a material impact on our consolidated statements of income and financial position. Critical accounting estimates, as defined by the Securities and Exchange Commission (“SEC”), are those that are most important to the portrayal of our consolidated financial condition and results of operations and require our management's most difficult and subjective judgments and estimates of matters that are inherently uncertain. Our critical accounting estimates include those regarding (1) revenue recognition, (2) valuation of inventories, and (3) income taxes. For a discussion of our critical accounting estimates, see “Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Estimates” in our Annual Report on Form 10-K for the year ended December 31, 2010.

RESULTS OF OPERATIONS

Sales Overview

We design, manufacture, and market high-performance, high-density programmable logic devices, or PLDs; HardCopy® ASIC devices; pre-defined software design building blocks known as intellectual property cores, or IP cores; and associated development tools.

Our net sales of $522.5 million for the three months ended September 30, 2011 decreased by $5.0 million, or 1%, from our net sales of $527.5 million for the three months ended October 1, 2010. The decrease was primarily due to customer reaction to the changing global macroeconomic conditions, which reduced demand across the industry. Our net sales of $1,606.7 million for the nine months ended September 30, 2011 increased by $207.7 million, or 15%, from our net sales of $1,399.0 million for the nine months ended October 1, 2010. The increase was driven by a strong growth in sales, primarily during the first half of 2011, of our New and Mainstream Products. We continue to see evidence of a “tipping point” with respect to our opportunity to displace ASICs and ASSPs, as our newest products are several process generations ahead of mainstream ASICs and ASSPs, and the resulting FPGA cost advantage is accelerating ASIC and ASSP displacement.

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Sales by Product Category

We classify our products into three categories: New, Mainstream, and Mature and Other Products. The composition of each product category is as follows:

• New Products include the Stratix^® V, Stratix IV (including E, GX and GT), Arria^® II (including GX and GZ), Cyclone^® IV (including E and GX), MAX^® V, and HardCopy IV devices.

• Mainstream Products include the Stratix III, Cyclone III, MAX II, and HardCopy III devices.

• Mature and Other Products include the Stratix II (and GX), Stratix (and GX), Arria GX, Cyclone II, Cyclone, Classic™, MAX 3000A, MAX 7000, MAX 7000A, MAX 7000B, MAX 7000S, MAX 9000, HardCopy II, HardCopy, FLEX^® series, APEX™ series, Mercury™, and Excalibur™ devices, configuration and other devices, intellectual property cores, and software and other tools.

The product categories above have been constructed to approximate the relative life cycle stages of our products. During the three months ended April 1, 2011, we adjusted product categories to move certain products from New Products to Mainstream Products and certain products from Mainstream Products to Mature and Other Products. All prior period data has been adjusted to conform to the current classification. New Products are primarily comprised of our most advanced products. Customers typically select these products for their latest generation of electronic systems. Demand is generally driven by prototyping and production needs. Mainstream Products are somewhat older products that are generally no longer design-win vehicles. Demand is driven by customers' later stage production-based needs. Mature Products are yet older products with demand generated by the oldest customer systems still in production. This category also includes sales of software, intellectual property, and other miscellaneous devices.

Net sales by product category were as follows:

	Three Months Ended						Year- Over- Year Change		Sequential Change		Nine Months Ended				Year- Over- Year Change
	September 30, 2011		October 1, 2010		July 1, 2011						September 30, 2011		October 1, 2010
New	27	%	13	%	18	%	112	%	43	%	20	%	10	%	148	%
Mainstream	32	%	31	%	36	%	3	%	(15	)%	34	%	30	%	30	%
Mature and Other	41	%	56	%	46	%	(29	)%	(16	)%	46	%	60	%	(14	)%
Net Sales	100	%	100	%	100	%	(1	)%	(5	)%	100	%	100	%	15	%

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Sales by Vertical Market

The following vertical market data is derived from data that is provided to us by our distributors and end customers. With a broad base of customers, who in some cases manufacture end products spanning multiple market segments, the assignment of net sales to a vertical market requires the use of estimates, judgment, and extrapolation. As such, actual results may differ from those reported.

	Three Months Ended						Year- Over- Year Change		Sequential Change		Nine Months Ended				Year- Over- Year Change
	September 30, 2011		October 1, 2010		July 1, 2011						September 30, 2011		October 1, 2010
Telecom & Wireless	42	%	45	%	46	%	(7	)%	(13	)%	43	%	42	%	17	%
Industrial Automation, Military & Automotive	22	%	22	%	22	%	(2	)%	(7	)%	22	%	23	%	14	%
Networking, Computer & Storage	20	%	13	%	15	%	50	%	31	%	17	%	13	%	44	%
Other	16	%	20	%	17	%	(21	)%	(11	)%	18	%	22	%	(7	)%
Net Sales	100	%	100	%	100	%	(1	)%	(5	)%	100	%	100	%	15	%

Sales of FPGAs and CPLDs

Our PLDs consist of field-programmable gate arrays, or FPGAs, and complex programmable logic devices, or CPLDs. FPGAs consist of our Stratix, Cyclone, Arria, APEX, FLEX, and ACEX 1K, as well as our Excalibur and Mercury families. CPLDs consist of our MAX, MAX II, and Classic families. Other Products consist of our HardCopy series and other masked programmed logic devices, configuration devices, software and other tools and IP cores (collectively, “Other Products”).

Our net sales of FPGAs and CPLDs, and Other Products were as follows:

	Three Months Ended						Year- Over- Year Change		Sequential Change		Nine Months Ended				Year- Over- Year Change
	September 30, 2011		October 1, 2010		July 1, 2011						September 30, 2011		October 1, 2010
FPGA	82	%	82	%	80	%	(1	)%	(3	)%	81	%	81	%	15	%
CPLD	9	%	11	%	10	%	(20	)%	(16	)%	10	%	12	%	(5	)%
Other Products	9	%	7	%	10	%	35	%	(10	)%	9	%	7	%	54	%
Net Sales	100	%	100	%	100	%	(1	)%	(5	)%	100	%	100	%	15	%

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Sales by Geography

The following table is based on the geographic location of the original equipment manufacturers or the distributors who purchased our products. The geographic location of distributors may be different from the geographic location of the ultimate end users.

Net sales by geography were as follows:

	Three Months Ended						Year- Over- Year Change		Sequential Change		Nine Months Ended				Year- Over- Year Change
	September 30, 2011		October 1, 2010		July 1, 2011						September 30, 2011		October 1, 2010
Americas	16	%	20	%	19	%	(19	)%	(16	)%	19	%	20	%	8	%
Asia Pacific	44	%	44	%	40	%	(1	)%	3	%	41	%	42	%	12	%
EMEA	25	%	21	%	27	%	17	%	(10	)%	26	%	23	%	30	%
Japan	15	%	15	%	14	%	(1	)%	(3	)%	14	%	15	%	9	%
Net Sales	100	%	100	%	100	%	(1	)%	(5	)%	100	%	100	%	15	%

Price Concessions and Product Returns from Distributors

We sell the majority of our products to distributors worldwide at a list price. However, distributors resell our products to end customers at a very broad range of individually negotiated prices based on a variety of factors, including customer, product, quantity, geography and competitive differentiation. The majority of our distributors' sales to their customers are priced at a discount from our list price. Under these circumstances, we remit back to the distributor a portion of its original purchase price after the resale transaction is completed and we validate the distributor's resale information, including end customer, device, quantity and price, against the distributor price concession that we have approved in advance. To receive price concessions, distributors must submit the price concession claims to us for approval within 60 days of the resale of the product to an end customer. Primarily because of the uncertainty related to the final price, we defer revenue recognition on sales to distributors until our products are sold from the distributor to the end customer, which is when our price is fixed or determinable. Accordingly, these pricing uncertainties impact our results of operations, liquidity and capital resources. Total price concessions earned by distributors were $3.0 billion and $4.8 billion for the nine months ended September 30, 2011 and October 1, 2010, respectively. The 2011 decrease in price concessions results from proportionately higher sales to OEMs in 2011 and higher sales to distributors at prices reflecting negotiated discounted end customer prices. See Note 7 — Deferred Income and Allowances on Sales to Distributors to our consolidated financial statements. 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, volume and factors associated with timing of shipments to distributors.

Our distributors have certain rights under our contracts to return defective, overstocked, obsolete or discontinued products. Our stock rotation program generally allows distributors to return unsold product to Altera, subject to certain contract limits, based on a percentage of sales occurring over various periods prior to the stock rotation. Products resold by the distributor to end customers are no longer eligible for return, unless specifically authorized by us. In addition, we generally warrant our products against defects in material, workmanship and non-conformance to our specifications. Returns from distributors totaled $111.9 million and $73.0 million for the nine months ended September 30, 2011 and October 1, 2010, respectively. The increase in returns when compared to the same period in the prior year was primarily driven by arrangements with certain distributors to re-balance inventory levels to support near-term end customer demand. See Note 7 — Deferred Income and Allowances on Sales to Distributors to our consolidated financial statements.

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Gross Margin

	Three Months Ended						Nine Months Ended
	September 30, 2011		October 1, 2010		July 1, 2011		September 30, 2011		October 1, 2010
Gross Margin Percentage	68.0	%	70.1	%	70.9	%	70.5	%	71.0	%

Gross margin rates are heavily influenced by both vertical market mix and the timing of material cost improvements. While these variables will continue to fluctuate on a quarterly basis, our gross margin target over the long term is 67%. We believe that the 67% gross margin target will enable us to achieve our desired level of balance between growth and profitability. Our gross margin percentage for the three months ended September 30, 2011 decreased by 2.1 points compared with the same period of 2010. The decrease resulted from an unfavorable vertical market mix, with increased sales in the Networking, Computer & Storage vertical market and a decrease in the Industrial Automation, Military & Automotive vertical market, when compared with the same period of 2010. Our gross margin percentage for the nine months ended September 30, 2011 decreased by 0.5 points compared to the same period of 2010. The decrease was primarily due to the change in the mix of revenue by vertical market.

Stock-based compensation expense included in Cost of sales during the three or nine months ended September 30, 2011 and October 1, 2010 did not have a significant impact on our gross margin.

Research and Development Expense

Research and development expense includes costs for compensation and benefits (including stock-based compensation), development masks, prototype wafers, and depreciation and amortization. These expenditures are for the design of new PLD and ASIC families, the development of process technologies, new package technology, software to support new products and design environments, and IP cores.

We will continue to make significant investments in the development of new products and focus our efforts on the development of new programmable logic devices that use advanced semiconductor wafer fabrication processes, as well as related development software. We are currently investing in the development of future silicon products, as well as our Quartus® II software, our library of IP cores, and other future products.

	Three Months Ended									Year- Over- Year Change		Sequential Change		Nine Months Ended						Year- Over- Year Change
(In millions)	September 30, 2011			October 1, 2010			July 1, 2011							September 30, 2011			October 1, 2010
Research and Development Expense	$	80.8		$	67.9		$	80.3		19	%	1	%	$	235.4		$	197.9		19	%
Percentage of Net Sales	15.5		%	12.9		%	14.6		%					14.7		%	14.1		%

Research and development expense for the three months ended September 30, 2011 increased by $12.9 million, or 19%, when compared with the three months ended October 1, 2010. The increase was primarily attributable to the following factors: a $6.8 million increase in personnel-related costs due to an increase in the number of employees, a $3.3 million increase in stock-based compensation driven by an increase in our stock price, a $2.4 million increase in spending on consulting and outside services to support several strategic initiatives, and a $1.6 million increase in spending on product development activities. These increases were partially offset by a $3.6 million decrease in variable compensation expense.

Research and development expense for the nine months ended September 30, 2011 increased by $37.5 million, or 19% when compared with the nine months ended October 1, 2010. The increase was primarily attributable to the following factors: an $18.2 million increase in personnel-related costs due to an increase in the number of employees, a $6.7 million increase in stock-based compensation driven by an increase in our stock price, a $6.7 million increase in spending on consulting and outside services to support several strategic initiatives, and a $7.2 million increase in spending on product development activities. These increases were partially offset by a $5.0 million decrease in variable compensation expense.

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Selling, General, and Administrative Expense

Selling, general, and administrative expense primarily includes compensation and benefits (including stock-based compensation) related to sales, marketing, and administrative employees, commissions and incentives, depreciation, legal, advertising, facilities, and travel expenses.

	Three Months Ended									Year- Over- Year Change		Sequential Change		Nine Months Ended						Year- Over- Year Change
(In millions)	September 30, 2011			October 1, 2010			July 1, 2011							September 30, 2011			October 1, 2010
Selling, General and Administrative Expense	$	69.3		$	63.5		$	70.2		9	%	(1	)%	$	208.6		$	190.4		10	%
Percentage of Net Sales	13.3		%	12.0		%	12.8		%					13.0		%	13.6		%

Selling, general, and administrative expense for the three months ended September 30, 2011 increased by $5.8 million, or 9%, when compared with the three months ended October 1, 2010. The increase was primarily attributable to the following factors: a $2.6 million increase in personnel-related costs to support the growth in our business and a $4.0 million increase in stock-based compensation driven by an increase in our stock price. These increases were partially offset by a $2.1 million decrease in variable compensation expense.

Selling, general, and administrative expense for the nine months ended September 30, 2011 increased by $18.2 million, or 10%, when compared with the nine months ended October 1, 2010. The increase was primarily attributable to the following factors: an $8.5 million increase in personnel-related costs to support the growth in our business, an $8.1 million increase in stock-based compensation driven by an increase in our stock price and a $4.7 million increase in professional services and consulting fees. These increases were partially offset by a $3.1 million decrease in variable compensation expense.

Deferred Compensation Plan

We allow our U.S.-based officers and director-level employees to defer a portion of their compensation under the Altera Corporation Non-Qualified Deferred Compensation Plan (“NQDC Plan”). Since the inception of the NQDC Plan, we have not made any contributions to the NQDC Plan and we have no commitments to do so in the future. There are no NQDC Plan provisions that provide for any guarantees or minimum return on investments. Investment income or loss earned by the NQDC Plan is recorded as (Gain)/loss on deferred compensation plan securities in our consolidated statements of income. We reported net investment losses of $6.6 million and $4.9 million on NQDC Plan assets for the three and nine months ended September 30, 2011, respectively. We reported net investment gains of $4.7 million and $3.3 million on NQDC Plan assets for the three and nine months ended October 1, 2010. These amounts resulted from the overall market performance of the underlying securities. The investment (gain)/loss also represents an (increase)/decrease  in the future payout to employees and is recorded as Compensation expense/(benefit) — deferred compensation plan in our consolidated statements of income. The compensation expense (benefit) associated with our deferred compensation plan obligations is offset by (gains) losses from related securities. The net effect of the investment income or loss and related compensation expense or benefit has no impact on our income before income taxes, net income, or cash balances. See Note 14 — Non-Qualified Deferred Compensation Plan to our consolidated financial statements for a detailed discussion of our NQDC Plan.

Interest Income and Other

Interest income and other, consisting mainly of interest income generated from investments in high-quality fixed income securities, decreased by $0.4 million for the three months ended September 30, 2011 when compared with the same period in 2010, primarily due to lower returns on our money market funds, partially offset by higher cash balances in 2011. Interest income and other increased by $0.1 million for the nine months ended September 30, 2011 when compared to the same period in 2010, primarily due to higher cash balances in 2011.

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Interest Expense

The year-over-year decrease in Interest expense resulted from a decrease in the borrowing costs on the outstanding balance under our credit facility. See Note 10 - Credit Facility to our consolidated financial statements.

Income Tax Expense

Our effective tax rate reflects the impact of a significant amount of our earnings being taxed in foreign jurisdictions at rates below the U.S. statutory tax rate.

Our effective tax rate for the three months ended September 30, 2011 was 9.7%, compared with 8.7% for the three months ended October 1, 2010. During the three months ended October 1, 2010, our tax rate was favorably affected by adjustments to our liabilities for uncertain tax positions due primarily to the expiration of the statutes of limitations for certain foreign jurisdictions. The impact of similar adjustments during the three months ended September 30, 2011 was less significant, thereby causing an increase in our effective tax rate in 2011. The 2011 increase in our effective tax rate due to the above referenced factors was partially offset by the impact of proportionately higher 2011 earnings in foreign jurisdictions taxed at rates below the U.S. statutory tax rate and lower California tax liabilities due to a California law change effective in 2011.

Our effective tax rate for the nine months ended September 30, 2011 was 9.4%, compared with 8.7% for the nine months ended October 1, 2010. During the nine months ended October 1, 2010, our tax rate was favorably affected by adjustments to our liabilities for uncertain tax positions due primarily to the expiration of the statutes of limitations for certain foreign jurisdictions. The impact of similar adjustments during the nine months ended September 30, 2011 was less significant, thereby causing an increase in our effective tax rate in 2011. In addition, in 2010 we reversed $11.7 millionof liabilities for uncertain tax positions as a result of a 2010 U.S. court ruling which held that stock based compensation was not required to be included in certain transfer pricing arrangements between a U.S. company and its foreign subsidiary. The 2011 increase in our effective tax rate due to the above referenced factors was partially offset by the impact of proportionately higher 2011 earnings in foreign jurisdictions taxed at rates below the U.S. statutory tax rate and lower California tax liabilities due to a California law change effective in 2011.

As of September 30, 2011 we had $276.1 million of unrecognized tax benefits that, if recognized, would impact our effective tax rate. On December 31, 2010, we had $243.3 million of unrecognized tax benefits. We are unable to make a reasonable estimate as to when cash settlements with the relevant taxing authorities will occur.

See Note 13 — Income Taxes to our consolidated financial statements for further discussion.

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

We derive our liquidity and capital resources primarily from our cash flows from operations. We have a $750 million unsecured revolving credit facility (the “Facility”), which has been used primarily to fund common stock repurchases and to realign our capital structure. As of September 30, 2011, we had borrowed $500 million under the Facility. The remaining capacity of $250 million available under the Facility also represents a source of liquidity. The terms of the Facility require compliance with certain financial and non-financial covenants. Financial covenants require us to maintain certain financial ratios related to interest coverage and financial leverage. As of September 30, 2011, we were in compliance with all such covenants. See Note 10 — Credit Facility to our consolidated financial statements for further discussion of the Facility.

We use cash from operations and available amounts under the Facility to fund cash dividends, capital expenditures and for repurchases of our common stock. Based on past performance and current expectations, we believe that our current available sources of funds (including cash, cash equivalents, short-term investments and the Facility, plus anticipated cash generated from operations) will be adequate to finance our operations, cash dividends, capital expenditures and stock repurchases for at least the next year.

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Our cash and cash equivalents balance during the nine months ended September 30, 2011 increased by $412.1 million. The change in cash and cash equivalents during the nine months ended September 30, 2011 and October 1, 2010 was as follows:

	Nine Months Ended
(In thousands)	September 30, 2011			October 1, 2010
Net cash provided by operating activities	$	739,237		$	646,544
Net cash used in investing activities	(151,229		)	(4,945		)
Net cash (used in) provided by financing activities	(175,890		)	226,145
Net increase in cash and cash equivalents	$	412,118		$	867,744

Operating Activities

For the nine months ended September 30, 2011, our operating activities provided $739.2 million in cash, primarily attributable to net income of $624.1 million, adjusted for non-cash stock-based compensation expense of $63.1 million (net of related tax effects), depreciation and amortization of $23.4 million, and deferred income tax benefit of $9.5 million. The net change in working capital accounts (excluding cash and cash equivalents) was primarily due to a $23.2 million increase in Accounts receivable, net, a $40.0 million decrease in Accounts payable and other liabilities, a $11.1 million increase in Deferred income and allowances on sales to distributors, partially offset by a $12.5 million decrease in Inventories, and a $48.0 milliondecrease in Other assets.

Our sales to distributors are primarily made under agreements allowing for subsequent price adjustments and returns, and we defer recognition of revenue until the products are resold by the distributor. At the time of shipment to distributors, we (1) record a trade receivable at the list selling price since there is a legally enforceable obligation from the distributor to pay us currently for product delivered, (2) relieve inventory for the carrying value of goods shipped since legal title has passed to the distributor, and (3) record deferred revenue and deferred cost of sales in Deferred income and allowances on sales to distributors in the liability section of our consolidated balance sheets. Accordingly, increases in Accounts receivable, net associated with higher billings are generally offset by corresponding increases in Deferred income and allowances on sales to distributors. However, timing differences between gross billings, advances to distributors, discounts earned, collections, revenue recognition and changes in the mix of sales to OEMs and distributors may result in a temporary interruption to the normal relationship between these two accounts.

The $23.2 million increase in Accounts receivable, net, for the nine months ended September 30, 2011, principally related to increased gross billings to distributors and OEMs associated with increased demand for our products, when compared to the same period in 2010. The $11.1 million increase in Deferred income and allowances on sales to distributors was primarily driven by a $63.8 million decrease in advances to distributors offset by an increase in gross billings towards the end of the period. The repayments of advances by distributors primarily resulted from reduced inventory levels held under distributor funding arrangements. See Note 7 — Deferred Income and Allowances on Sales to Distributors to our consolidated financial statements.

The $12.5 million decrease in Inventories was a result of proactive management of our inventory levels. The $48.0 milliondecrease in Other assets primarily resulted from returns of advances from distributors and a decrease in prepaid amounts. The repayment of advances by distributors primarily resulted from changes in inventory levels held under distributor funding arrangements. The $40.0 million decrease in Accounts payable and other liabilities was attributable to the decrease in inventory purchased as a result of the previously mentioned proactive management of our inventory levels and a decrease in the accrual for variable compensation. The $30.1 million increase in Income tax payable primarily resulted from higher tax liabilities due to increased earnings in 2011.

Investing Activities

Cash used in investing activities in the nine months ended September 30, 2011 primarily consisted of purchases of available for sale securities of $130.1 million and purchases of equipment of $23.2 million, partially offset by net sales of deferred compensation plan securities of $0.3 million.

Financing Activities

Cash used in financing activities in the nine months ended September 30, 2011 primarily consisted of repurchases of common

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stock of $197.0 million, cash dividend payments of $64.3 million and minimum statutory withholding for vested restricted stock units of $31.1 million. These items were partially offset by proceeds of $93.6 million from the issuance of common stock to employees through our employee stock plans. Our dividend policy could be impacted in the future by, among other items, future changes in our cash flows from operations and our capital spending needs such as those relating to research and development, investments and acquisitions, common stock repurchases, and other strategic investments.

CONTRACTUAL OBLIGATIONS

We depend entirely upon subcontractors to manufacture our silicon wafers and provide assembly and test services. Due to lengthy subcontractor lead times, we must order these materials and services from these subcontractors well in advance, and we are obligated to pay for the materials and services once they are completed. As of September 30, 2011, we had approximately $116.9 million of outstanding purchase commitments to such subcontractors. We expect to receive and pay for these materials and services over the next six months.

We lease facilities under non-cancelable lease agreements expiring at various times through 2021. As of September 30, 2011, we have entered into an operating lease in Austin, Texas and an agreement to sign an operating lease in Toronto, Canada, respectively, both with a term of 10 years and a total lease payment commitment of $36.9 million.

In addition to these lease and purchase obligations, in the normal course of business, we enter into a variety of agreements and financial commitments. It is not possible to predict the maximum potential amount of future payments under these agreements due to the conditional nature of our obligations and the unique facts and circumstances involved in each particular agreement. Historically, payments pursuant to such agreements have not been material. We believe that any future payments required pursuant to such agreements would not be significant to our consolidated financial position or operating results.

As of September 30, 2011, we had $260.8 million of unrecognized tax benefits. Due to the uncertainty with respect to the timing of future cash flows associated with our unrecognized tax benefits as of September 30, 2011, we are unable to make a reasonably reliable estimate as to when cash settlements with the relevant taxing authorities will occur.

OFF-BALANCE SHEET ARRANGEMENTS

As of September 30, 2011, we did not have any off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of SEC Regulation S-K.

IMPACT OF FOREIGN CURRENCY AND INFLATION

We have international operations and incur expenditures in currencies other than U.S. dollars. For non-U.S. subsidiaries and branches, foreign currency transaction gains and losses and the impact of the remeasurement of local currency assets and liabilities into U.S. dollars for the three or nine month periods ended September 30, 2011 and October 1, 2010 was not significant. We do not enter into foreign exchange transactions for trading or speculative purposes.

SUBSEQUENT EVENT

On October 17, 2011, our board of directors declared a quarterly cash dividend of $0.08 per common share, payable on December 1, 2011 to stockholders of record on November 10, 2011.

RECENT ACCOUNTING PRONOUNCEMENTS

In May 2011, the Financial Accounting Standards Board ("FASB") issued amended guidance on fair value measurement and related disclosures. The new guidance clarified the concepts applicable for fair value measurement of non-financial assets and requires the disclosure of quantitative information about the unobservable inputs used in a fair value measurement. This guidance will be effective for reporting periods beginning after December 15, 2011, and will be applied prospectively. We are in the process of evaluating the financial and disclosure impact of this guidance. We do not anticipate a material impact on our consolidated financial statements as a result of the adoption of this amended guidance.

In June 2011, the FASB issued amended guidance on the presentation of comprehensive income. The amended guidance eliminates one of the presentation options provided by current U.S. GAAP, that is to present the components of other comprehensive income as part of the statement of changes in stockholders' equity. In addition, it gives an entity the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. This guidance

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will be effective for reporting periods beginning after December 15, 2011, and will be applied retrospectively. We are in the process of evaluating the disclosure impact of this guidance.

ITEM 3: Quantitative and Qualitative Disclosures About Market Risk

Interest Rate Risk

While we are exposed to interest rate fluctuations in many of the world's leading industrialized countries, our interest income and expense is most sensitive to fluctuations in the general level of U.S. interest rates. Our investment strategy is focused on preservation of capital and supporting our liquidity requirements. Our exposure to market risk as a result of changes in interest rates relates primarily to our cash and cash equivalents, certain interest rate sensitive assets held in our investment portfolio and under the NQDC Plan and our credit facility. Our NQDC Plan assets include holdings of various issuers, types and maturity dates.

The market value of these investments on any given day during the investment term may vary as a result of market interest rate fluctuations. A hypothetical 10% movement in interest rates during the investment term would not have a material impact on the fair value of the portfolio. The actual impact on the fair value of the portfolio in the future may differ materially from this analysis, depending on actual balances and changes in the timing and the amount of interest rate movements.

Our consolidated operating results are affected by, among other factors, interest income on our cash equivalents. If the interest rate declines, our consolidated operating results may be negatively impacted.

In addition to our cash flows from operations, we derive our liquidity from our credit facility (the “Facility”). Our total borrowings under the Facility as of September 30, 2011 were $500 million. Borrowings under this Facility bear a variable interest rate at either a Eurodollar rate (“LIBOR”) or a Prime rate, at our option, plus an applicable margin based upon certain financial ratios, determined and payable quarterly. The interest rate as of September 30, 2011 was LIBOR plus 0.27%. In addition, we pay a facility fee on the entire Facility. This facility fee varies with certain financial ratios and was 0.08% as of September 30, 2011.

Our consolidated operating results and cash flows are exposed to changes in interest rates that could adversely affect the amount of interest expense incurred and paid on the Facility in any given period. Due to the variable interest rate on the Facility, the fair value of the Facility would not likely be materially affected by any future changes in interest rates.

Equity Price Risk

We are exposed to equity price risk inherent in the marketable equity securities held in our NQDC Plan. A hypothetical 10% adverse change in the stock prices of these equity securities would not result in a material impact on our consolidated financial position, operating results or cash flows.

Foreign Currency Risk

We have international operations and incur expenditures in currencies other than U.S. dollars. To date, our exposure to exchange rate volatility, resulting from foreign currency transaction gains and losses and remeasurement of local currency assets and liabilities into U.S. dollars, has been insignificant. If foreign currency rates were to fluctuate by 10% from rates in effect at September 30, 2011, the resulting transaction gains or losses and the effects of remeasurement would not materially affect our consolidated financial position, operating results or cash flows.

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ITEM 4: Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as amended, as of the end of the period covered by this Quarterly Report on Form 10-Q (the “Evaluation Date”).

The purpose of this evaluation was to determine if, as of the Evaluation Date, our disclosure controls and procedures were designed and operating effectively to provide reasonable assurance that the information relating to Altera, required to be disclosed in our Exchange Act filings (i) was recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and (ii) was accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Based on the evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that as of the Evaluation Date, our disclosure controls and procedures were effective at a reasonable assurance level.

Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting (as defined in Rules 13a - 15(f) and 15(d) - 15(f) under the Exchange Act) that occurred during the period covered by this quarterly report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Limitation on Effectiveness of Controls

It should be noted that any system of controls, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the system are met. The design of any control system is based, in part, upon the benefits of the control system relative to its costs. Control systems can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. In addition, over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies and procedures may deteriorate. In addition, the design of any control system is based in part upon certain assumptions about the likelihood of future events.

PART II OTHER INFORMATION

ITEM 1: Legal Proceedings

This information is included in Note 11 — Commitments and Contingencies to our consolidated financial statements in Item 1 and is incorporated herein by reference.

ITEM 1A: Risk Factors

There have been no material changes from the risk factors previously described under Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2010. For additional information regarding risk factors, please refer to the description of the risk factors associated with our business previously disclosed in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2010.

Before you decide to buy, hold, or sell our common stock, you should carefully consider the risks described in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2010 and the other information contained elsewhere in this report. These risks are not the only risks facing our company. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also affect our business. Our business, consolidated operating results and financial position could be seriously harmed if any of the events underlying any of these risks or uncertainties actually occurs. In that event, the market price for our common stock could decline, and you may lose all or part of your investment.

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ITEM 2: Unregistered Sales of Equity Securities and Use of Proceeds

Items 2(a) and 2(b) are inapplicable.

2(c) Issuer Purchases of Equity Securities

We have an ongoing authorization from our Board of Directors to repurchase up to 193.0 million shares of our common stock. As of September 30, 2011, we had repurchased 183.1 million shares for an aggregate cost of $3.9 billion.

During the three and nine month periods ended September 30, 2011, we repurchased shares of our common stock as follows:

Period (Shares presented in thousands)	Total Number of Shares Purchased(1)	Average Price Paid Per Share	Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
7/2/2011 - 7/29/2011	3,250	41.07	3,250	11,461
7/30/2011 - 8/26/2011	1,550	41.01	1,550	9,911
8/27/2011 - 9/30/2011	—	—	—	9,911
	4,800		4,800

(1) No shares were purchased outside of publicly announced plans or programs.

For the majority of the restricted stock units that we grant, the number of shares issued on the date the restricted stock units vest is net of the minimum statutory withholding requirements that we pay in cash to the appropriate taxing authorities on behalf of our employees. Although these withheld shares are not issued or considered common stock repurchases under our authorized plan and are not included in the common stock repurchase totals in the preceding table, they are treated as common stock repurchases in our financial statements, as they reduced the number of shares that would have been issued upon vesting.

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ITEM 6: Exhibits

Exhibit No.	Description
#31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934.
#31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934.
#32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
#32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
#101.INS	XBRL Instance Document.
#101.SCH	XBRL Taxonomy Extension Schema Document.
#101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
#101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
#101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.
#101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.

_________________

#    Filed herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

ALTERA CORPORATION
By:	/s/ RONALD J. PASEK
	Ronald J. Pasek
	Senior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

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EXHIBIT INDEX

Exhibit No.	Description
#31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934.
#31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934.
#32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
#32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
#101.INS	XBRL Instance Document.
#101.SCH	XBRL Taxonomy Extension Schema Document.
#101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
#101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
#101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.
#101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.

_________________

#    Filed herewith.

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EX-31.1

EXHIBIT 31.1

ALTERA CORPORATION

CERTIFICATION

I, John P. Daane, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Altera Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: October 21, 2011

	/s/ John P. Daane
	John P. Daane
Chief Executive Officer	Chief Executive Officer

EX-31.2

EXHIBIT 31.2

ALTERA CORPORATION

CERTIFICATION

I, Ronald J. Pasek, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Altera Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: October 21, 2011

	/s/ RONALD J. PASEK
	Ronald J. Pasek
/s/ RONALD J. PASEK	Chief Financial Officer

EX-32.1

EXHIBIT 32.1

ALTERA CORPORATION

CERTIFICATION

In connection with the periodic report of Altera Corporation (the “Company”) on Form 10-Q for the period ended September 30, 2011, as filed with the Securities and Exchange Commission (the “Report”), I, John P. Daane, Chief Executive Officer of the Company, hereby certify as of the date hereof, solely for purposes of Title 18, Chapter 63, Section 1350 of the United States Code, that to the best of my knowledge:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.

Date: October 21, 2011

	/s/ John P. Daane
	John P. Daane
Chief Executive Officer	Chief Executive Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Altera Corporation and will be retained by Altera Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

ALTERA CORPORATION

CERTIFICATION

In connection with the periodic report of Altera Corporation (the “Company”) on Form 10-Q for the period ended September 30, 2011, as filed with the Securities and Exchange Commission (the “Report”), I, Ronald J. Pasek, Chief Financial Officer of the Company, hereby certify as of the date hereof, solely for purposes of Title 18, Chapter 63, Section 1350 of the United States Code, that to the best of my knowledge:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.

Date: October 21, 2011

	/s/ RONALD J. PASEK
	Ronald J. Pasek
/s/ RONALD J. PASEK	Chief Financial Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Altera Corporation and will be retained by Altera Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Subsequent Event (Details) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2011
Subsequent Event [Line Items]
Dividends Payable, Date Declared, Day, Month and Year		Oct. 17, 2011
Dividends Payable, Date to be Paid, Day, Month and Year	Dec. 01, 2011
Dividends Payable, Date of Record, Day, Month and Year	Nov. 10, 2011
Dividend Declared [Member]
Subsequent Event [Line Items]
Dividends Payable, Amount Per Share	$ 0.08	$ 0.08

XML

Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) In Thousands, except Per Share data	Sep. 30, 2011	Dec. 31, 2010
Common Stock, Par Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	1,000,000	1,000,000
Common Stock, Shares Outstanding	320,855	319,494

XML

Consolidated Statements of Income (Unaudited) (USD $) In Thousands, except Per Share data	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Oct. 01, 2010	Sep. 30, 2011	Oct. 01, 2010
Net sales	$ 522,474	$ 527,453	$ 1,606,671	$ 1,399,048
Cost of sales	166,938	157,899	473,565	405,646
Gross margin	355,536	369,554	1,133,106	993,402
Research and development expense	80,771	67,896	235,438	197,861
Selling, general, and administrative expense	69,345	63,473	208,550	190,421
Compensation (benefit) expense - deferred compensation plan	(6,642)	4,699	(4,926)	3,285
Loss (gain) on deferred compensation plan securities	6,642	(4,699)	4,926	(3,285)
Interest income and other	(663)	(1,092)	(2,505)	(2,394)
Interest expense	806	1,098	2,717	3,492
Income before income taxes	205,277	238,179	688,906	604,022
Income tax expense	19,873	20,688	64,806	52,751
Net Income	$ 185,404	$ 217,491	$ 624,100	$ 551,271
Net income per share:
Basic	$ 0.58	$ 0.7	$ 1.94	$ 1.81
Diluted	$ 0.57	$ 0.69	$ 1.9	$ 1.78
Shares used in computing per share amounts:
Basic	321,745	309,766	322,012	304,267
Diluted	327,044	317,069	328,264	310,367
Cash dividends per common share	$ 0.08	$ 0.06	$ 0.2	$ 0.16

XML

Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2011

Financial Instruments [Abstract]

Available-for-sale Securities [Table Text Block]

The following tables summarize the our available-for-sale securities as of September 30, 2011. We did not own any available-for-sale securities as of December 31, 2010.

	September 30, 2011
(In thousands)	Adjusted Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Assets:
U.S. treasury securities	$	6,748	$	1	$	—		$	6,749
U.S. agency securities	57,662		8		(9		)	57,661
Non-U.S. government securities	8,931		1		(6		)	8,926
Municipal bond	752		—		—			752
Corporate securities	103,577		28		(239		)	103,366
Total available-for-sale securities	$	177,670	$	38	$	(254	)	$	177,454

Investments Classified by Contractual Maturity Date [Table Text Block]

The adjusted cost and estimated fair value of marketable debt securities (corporate bonds, municipal bonds, U.S. and foreign government securities, and U.S. treasury securities) as of September 30, 2011, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties.

	September 30, 2011
(In thousands)	Adjusted Cost		Estimated Fair Value
Due in one year or less	$	110,694	$	110,674
Due after one year through five years	66,976		66,780
	$	177,670	$	177,454

XML

Document and Entity Information	9 Months Ended
	Sep. 30, 2011	Oct. 12, 2011
Document Information [Line Items]
Entity Registrant Name	ALTERA CORP
Entity Central Index Key	0000768251
Document Type	10-Q
Document Period End Date	Sep. 30, 2011
Amendment Flag	false
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding (actual number)		320,863,017

XML

Non-Qualified Deferred Compensation Plan (Details) (USD $) In Thousands	Sep. 30, 2011	Dec. 31, 2010
Number Of Participants In Deferred Compensation Plan	123
Deferred compensation plan assets	$ 68,966	$ 74,236

XML

Property and Equipment (Tables)

9 Months Ended

Sep. 30, 2011

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

Property and equipment, net was comprised of the following:

(In thousands)	September 30, 2011			December 31, 2010
Land and land rights	$	23,157		$	23,108
Buildings	148,200			146,604
Equipment and software	227,084			206,935
Office furniture and fixtures	23,146			22,952
Leasehold improvements	7,423			6,773
Construction in progress	5,320			3,406
Property and equipment, at cost	434,330			409,778
Accumulated depreciation and amortization	(263,230		)	(245,623		)
Property and equipment, net	$	171,100		$	164,155

XML

Income Taxes (Details) (USD $) In Millions	3 Months Ended			9 Months Ended				12 Months Ended
	Sep. 30, 2011	Oct. 01, 2010	Apr. 02, 2010	Sep. 30, 2011	Oct. 01, 2010	Dec. 31, 2010	Dec. 28, 2007 Tax Return Examination Years 2005 through 2007 [Member]	Dec. 31, 2008 Tax Return Examination Years 2002 through 2004 [Member]	Dec. 31, 2004 Tax Return Examination Years 2002 through 2004 [Member]
Income Tax Contingency [Line Items]
Effective Tax Rate	9.70%	8.70%		9.40%	8.70%
Tax Adjustments, Settlements, and Unusual Provisions			$ 11.7
Proposed tax adjustment from examination							34.2		34.5
Income Taxes Paid								18.0
Unrecognized Tax Benefits	276.1			276.1		243.3
Payments of Interest and Penalties Related to Uncertain Tax Positions (Approximately)	$ 53.1			$ 53.1		$ 50.0

XML

Deferred Income and Allowances on Sales to Distributors

9 Months Ended

Sep. 30, 2011

Deferred Income And Allowances On Sales To Distributors [Abstract]

Deferred Revenue Disclosure [Text Block]

Deferred Income and Allowances on Sales to Distributors

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

(In thousands)	September 30, 2011			December 31, 2010
Deferred revenue on shipment to distributors	$	470,793		$	529,332
Deferred cost of sales on shipment to distributors	(37,444		)	(42,044		)
Deferred income on shipment to distributors	433,349			487,288
Advances to distributors	(2,692		)	(66,495		)
Other deferred revenue(1)	9,169			7,918
Total	$	439,826		$	428,711

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

The Deferred income and allowances on sales to distributors activity for the nine months ended September 30, 2011 and October 1, 2010 was as follows:

	Nine Months Ended
(In thousands)	September 30, 2011			October 1, 2010
Balance at beginning of period	$	428,711		$	281,885
Deferred revenue recognized upon shipment to distributors	3,992,638			6,384,863
Deferred costs of sales recognized upon shipment to distributors	(227,189		)	(431,293		)
Decrease/(increase) in advances to distributors	63,803			(90,808		)
Revenue recognized upon sell-through to end customers	(979,877		)	(1,221,097		)
Costs of sales recognized upon sell-through to end customers	224,933			363,645
Earned distributor price concessions (1)	(2,952,593		)	(4,827,363		)
Returns	(111,851		)	(72,979		)
Increase/(decrease) in other deferred revenue	1,251			(1,303		)
Balance at end of period	$	439,826		$	385,550

(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.

We sell the majority of our products to distributors worldwide at a list price. However, distributors resell our products to end customers at a very broad range of individually negotiated prices based on a variety of factors, including customer, product, quantity, geography and competitive differentiation. The majority of our distributors' sales to their customers are priced at a discount from our list price. Under these circumstances, we remit back to the distributor a portion of its original purchase price after the resale transaction is completed and we validate the distributor's resale information, including end customer, device, quantity and price, against the distributor price concession that we have approved in advance. To receive price concessions, distributors must submit the price concession claims to us for approval within 60 days of the resale of the product to an end customer. It is our practice to apply these negotiated price discounts to future purchases, requiring the distributor to settle receivable balances, on a current basis, generally within 30 days, for amounts originally invoiced. This practice has an adverse impact on the working capital of our distributors. As such, we have entered into agreements with certain distributors whereby we advance cash to the distributors to reduce the distributor's working capital requirements. These advances are settled in cash at least on a quarterly basis and are estimated based on the amount of ending inventory as reported by the distributor multiplied by a negotiated percentage. Such advances have no impact on revenue recognition or our consolidated statements of income and are a component of Deferred income and allowances on sales to distributors on our consolidated balance sheets. We continuously process discounts taken by distributors against our Deferred income and allowances on sales to distributors. We adjust the recorded amount of the distributor advances based on cash settlements at the end of each quarter. These advances are set forth in binding legal agreements and are unsecured, bear no interest on unsettled balances, and are due upon demand. The agreements governing these advances can be canceled by us at any time.

Total price concessions earned by distributors were $3.0 billion and $4.8 billion for the nine months ended September 30, 2011 and October 1, 2010, respectively. The 2011 decrease in price concessions results from proportionately higher sales to OEMs in 2011 and higher sales to certain distributors at prices reflecting negotiated discounted end customer prices.

We also enter into arrangements that, in substance, finance distributors' accounts receivable and inventory. The amounts advanced are classified as Other current assets in our consolidated balance sheets and totaled $24.6 million as of September 30, 2011 and $66.3 million as of December 31, 2010. These arrangements are set forth in binding legal agreements and are unsecured, bear no interest on unsettled balances, and are due upon demand.

XML

Deferred Income and Allowances on Sales to Distributors (Tables)

9 Months Ended

Sep. 30, 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)	September 30, 2011			December 31, 2010
Deferred revenue on shipment to distributors	$	470,793		$	529,332
Deferred cost of sales on shipment to distributors	(37,444		)	(42,044		)
Deferred income on shipment to distributors	433,349			487,288
Advances to distributors	(2,692		)	(66,495		)
Other deferred revenue(1)	9,169			7,918
Total	$	439,826		$	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 nine months ended September 30, 2011 and October 1, 2010 was as follows:

	Nine Months Ended
(In thousands)	September 30, 2011			October 1, 2010
Balance at beginning of period	$	428,711		$	281,885
Deferred revenue recognized upon shipment to distributors	3,992,638			6,384,863
Deferred costs of sales recognized upon shipment to distributors	(227,189		)	(431,293		)
Decrease/(increase) in advances to distributors	63,803			(90,808		)
Revenue recognized upon sell-through to end customers	(979,877		)	(1,221,097		)
Costs of sales recognized upon sell-through to end customers	224,933			363,645
Earned distributor price concessions (1)	(2,952,593		)	(4,827,363		)
Returns	(111,851		)	(72,979		)
Increase/(decrease) in other deferred revenue	1,251			(1,303		)
Balance at end of period	$	439,826		$	385,550

(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.

XML

Stock-Based Compensation (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2011		Sep. 30, 2011		May 10, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for stock-based awards granted under the 2005 Plan (in years)			4
Maximum contractual term of stock options, RSUs and PRSUs granted under 2005 Plan (in years)			10
Increase in shares reserved for future issuance under 2005 Plan					10,000,000
Shares reserved for future issuance under 2005 Plan	30,000,000		30,000,000
Shares availabe for future grants in 2005 Plan	19,400,000		19,400,000
Intrinsic value of stock options exercised	$ 5,900,000		$ 83,200,000
Employee Service Share-based Compensation, Cash Received from Exercise of Stock Options	6,500,000		84,600,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	300,000		3,900,000
Restricted Stock Units And Performance Based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, beginning of period			7,613,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period			3,403,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period			(2,569,000)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period			(363,000)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number , end of period	8,084,000		8,084,000
Share Based Compensation Arrangement By Share Based Payment Award Other Than Options Vested And Expected To Vest Outstanding Number	6,998,000		6,998,000
Weighted Average Grant Date Fair Market Value Per Share [Roll Forward]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, beginning of period			$ 22.95
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value			$ 42.43
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value			$ 21.87
Share Based Compensation Arrangement by Share Based Payment Award, Equity Instruments Other Than Options, Forfeited In Period, Weighted Average Grant Date Fair Value Period	$ 27.11		$ 27.11
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, end of period	$ 31.30		$ 31.30
Share Based Compensation Arrangement by Share Based Payment Award, Equity Instruments Other Than Options Vested And Expected To Vest In Period, Weighted Average Grant Date Fair Value	$ 31.30		$ 31.30
Weighted Average Exercise Price Per Share [Roll Forward]
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Aggregate Intrinsic Value	254,898,000	[1]	254,898,000	[1]
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested And Expected To Vest In Period Aggregate Intrinsic Value	220,648,000	[1]	220,648,000	[1]
Share Based Compensation Arrangement By Share Based Payment Award Other Than Options Outstanding Weighted Average Remaining Contractual Term			1.8
Share Based Compensation Arrangement By Share Based Payment Award Other Than Options Vested And Expected To Vest Outstanding Weighted Average Remaining Contractual Term			1.7
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, beginning of period			10,179,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period			806,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period			(3,950,000)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period			(38,000)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, end of period	6,997,000		6,997,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	5,981,000		5,981,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number	6,856,000		6,856,000
Weighted Average Exercise Price Per Share [Roll Forward]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, beginning of period			$ 20.61
Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Exercise Prices	$ 42.37		$ 42.37
Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Prices	$ 21.42		$ 21.42
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price			$ 21.95
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, end of period	$ 22.68		$ 22.68
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price	$ 20.28		$ 20.28
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price	$ 22.33		$ 22.33
Share Based Compensation Arrangement By Share Based Payment Award Other Than Options Vested And Expected To Vest Outstanding Weighted Average Remaining Contractual Term			3.7
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Remaining Contractual Terms	3.8		3.8
Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Remaining ContractualTerms			2.9
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	70,651,000	[2]	70,651,000	[2]
Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Intrinsic Values	67,312,000	[2]	67,312,000	[2]
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested And Expected To Vest In Period Aggregate Intrinsic Value	$ 70,411,000	[2]	$ 70,411,000	[2]

[1] Aggregate intrinsic value represents the closing price per share of our stock on September 30, 2011, multiplied by the number of RSUs and PRSUs outstanding or vested and expected to vest as of September 30, 2011.

[2] For those stock options with an exercise price below the closing price per share on September 30, 2011, aggregate intrinsic value represents the difference between the exercise price and the closing price per share of our common stock on September 30, 2011, multiplied by the number of stock options outstanding, exercisable, or vested and expected to vest as of September 30, 2011.

XML

Deferred Income and Allowances on Sales to Distributors (Details) (USD $)	9 Months Ended
	Sep. 30, 2011		Oct. 01, 2010		Dec. 31, 2010
Deferred Income and Allowances on Sales to Distributors
Deferred revenue on shipments to distributors	$ 470,793,000				$ 529,332,000
Deferred cost of sales on shipments to distributors	(37,444,000)				(42,044,000)
Deferred income on shipment to distributors	433,349,000				487,288,000
Advances to distributors	(2,692,000)				(66,495,000)
Other deferred revenue	9,169,000	[1]			7,918,000	[1]
Total	439,826,000				428,711,000
Deferred Income and Allowances on Sales to Distributor Activity
Deferred revenue, beginning of period	428,711,000		281,885,000
Deferred revenue recognized upon shipment to distributors	3,992,638,000		6,384,863,000
Deferred costs of sales recognized upon shipments to distributors	(227,189,000)		431,293,000
Decrease/(increase) in advances to distributors	63,803,000		(90,808,000)
Revenue recognized upon sell-through to end customers	(979,877,000)		1,221,097,000
Costs of sales recognized upon sell through to end customers	224,933,000		363,645,000
Earned distributor price concessions	(2,952,593,000)	[2]	(4,827,363,000)	[2]
Returns	(111,851,000)		72,979,000
Increase/(decrease) in other deferred revenue	1,251,000		(1,303,000)
Deferred revenue, end of period	439,826,000		385,550,000
Deferred Income and Allowances on Sales to Distributors Textuals [Abstract]
Minimum percentage of average aggregate price concessions on list price	65.00%
Maximum percentage of average aggregate price concessions on list price	0.80
Maximum time period to submit claim for receiving price concession	60
Period of settlement for receivable balances, days	30
Sales Distributors All [Member]
Deferred Income and Allowances on Sales to Distributors Textuals [Abstract]
Advances recognized in other current assets	$ 24,600,000				$ 66,300,000

[1] Principally represents revenue deferred on our software and intellectual property licenses.

[2] 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.

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Inventories (Tables)

9 Months Ended

Sep. 30, 2011

Inventory, Net [Abstract]

Schedule Of Inventory [Text Block]

Inventories were comprised of the following:

(In thousands)	September 30, 2011		December 31, 2010
Raw materials	$	10,266	$	9,833
Work in process	79,998		90,627
Finished goods	43,764		46,064
Total inventories	$	134,028	$	146,524

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Stock-Based Compensation

9 Months Ended

Sep. 30, 2011

Share-based Compensation [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Stock-Based Compensation

Our stock-based compensation plans include the 2005 Equity Incentive Plan (the “2005 Plan”) and the 1987 Employee Stock Purchase Plan (the “ESPP”).

2005 Plan

Our equity incentive program is a broad-based, long-term retention program intended to attract, motivate, and retain talented employees as well as align stockholder and employee interests. The 2005 Plan provides stock-based incentive compensation (“awards”) to both our eligible employees and non-employee directors. Awards that may be granted under the 2005 Plan include non-qualified and incentive stock options, restricted stock units (“RSU”s), performance-based restricted stock units (“PRSU”s), restricted stock awards, stock appreciation rights, and stock bonus awards. To date, awards granted under the 2005 Plan consist of stock options, RSUs and PRSUs. The majority of stock-based awards granted under the 2005 Plan vest over four years. Stock options granted under the 2005 Plan have a maximum contractual term of ten years. On May 10, 2011, our stockholders approved an amendment to the 2005 Plan to increase the shares reserved for future issuance by 10 million. As of September 30, 2011, the 2005 Plan had a total of 30.0 million shares reserved for future issuance, of which 19.4 million shares were available for future grants.

A summary of activity for our RSUs and PRSUs for the nine months ended September 30, 2011 and information regarding RSUs and PRSUs outstanding and expected to vest as of September 30, 2011 is as follows:

(In thousands, except per share amounts and terms)	Number of Shares		Weighted-Average Grant-Date Fair Market Value Per Share		Weighted-Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value (1)
Outstanding, December 31, 2010	7,613		$	22.95
Grants	3,403		$	42.43
Vested	(2,569	)	$	21.87
Forfeited	(363	)	$	27.11
Outstanding, September 30, 2011	8,084		$	31.30	1.8	$	254,898
Vested and expected to vest, September, 30, 2011	6,998		$	31.30	1.7	$	220,648

(1) Aggregate intrinsic value represents the closing price per share of our stock on September 30, 2011, multiplied by the number of RSUs and PRSUs outstanding or vested and expected to vest as of September 30, 2011.

A summary of stock option activity for the nine months ended September 30, 2011 and information regarding stock options outstanding, exercisable, and vested and expected to vest as of September 30, 2011 is as follows:

(In thousands, except per share amounts and terms)	Number of Shares		Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value (1)
Outstanding, December 31, 2010	10,179		$	20.61
Grants	806		$	42.37
Exercises	(3,950	)	$	21.42
Forfeited/Cancelled/Expired	(38	)	$	21.95
Outstanding, September 30, 2011	6,997		$	22.68	3.8	$	70,651
Exercisable, September 30, 2011	5,981		$	20.28	2.9	$	67,312
Vested and expected to vest, September 30, 2011	6,856		$	22.33	3.7	$	70,411

(1) For those stock options with an exercise price below the closing price per share on September 30, 2011, aggregate intrinsic value represents the difference between the exercise price and the closing price per share of our common stock on September 30, 2011, multiplied by the number of stock options outstanding, exercisable, or vested and expected to vest as of September 30, 2011.

For the three and nine months ended September 30, 2011, 0.3 million and 3.9 million non-qualified stock option shares wereexercised, respectively. The total intrinsic value of stock options exercised for the three and nine months ended September 30, 2011 was $5.9 million and $83.2 million, respectively. The aggregate intrinsic value represents the difference between the exercise price and the selling price received by option holders upon the exercise of stock options during the period. The total cash received from employees as a result of employee stock option exercises during the three and nine months ended September 30, 2011 was $6.5 million and $84.6 million, respectively.

ESPP

Our ESPP has two consecutive, overlapping twelve-month offering periods, with a new period commencing on the first trading day on or after May 1 and November 1 of each year and terminating on the last trading day on or before April 30 and October 31. Each twelve-month offering period generally includes two six-month purchase periods. The purchase price at which shares are sold under the ESPP is 85% of the lower of the fair market value of a share of our common stock on (1) the first day of the offering period, or (2) the last trading day of the purchase period. If the fair market value at the end of any purchase period is less than the fair market value at the beginning of the offering period, each participant is automatically withdrawn from the current offering period following the purchase of shares on the purchase date and is automatically re-enrolled in the immediately following offering period.

We sold 402,913 shares of common stock under the ESPP at a price of $22.40 during the nine months ended September 30, 2011, and 595,861 shares of common stock under the ESPP at a price of $13.81 during the nine months ended October 1, 2010. On May 10, 2011, our stockholders approved an amendment to the ESPP to increase the shares reserved for future issuance by 1 million. As of September 30, 2011, 2.8 million shares were available for future issuance under the ESPP.

VALUATION AND EXPENSE INFORMATION

The assumptions used to estimate the fair value of ESPP, RSUs and PRSUs were as follows:

	Three Months Ended						Nine Months Ended
	September 30, 2011			October 1, 2010			September 30, 2011			October 1, 2010
ESPP purchase rights:
Expected term (in years)	—			—			0.8			0.7
Expected stock price volatility	—			—			34.5		%	31.2		%
Risk-free interest rate	—			—			0.2		%	0.3		%
Dividend yield	—			—			0.5		%	0.8		%
Weighted-average estimated fair value	—			—			$	12.88		$	6.56
RSUs and PRSUs:
Risk-free interest rate	0.5		%	0.7		%	0.6		%	0.8		%
Dividend yield	0.8		%	0.9		%	0.7		%	0.9		%
Weighted-average estimated fair value	$	41.50		$	27.33		$	41.71		$	26.32

In addition, we apply an expected forfeiture rate when amortizing stock-based compensation expense. Our stock-based compensation expense included in the consolidated statements of income for the three and nine months ended September 30, 2011 and October 1, 2010 was as follows:

	Three Months Ended						Nine Months Ended
(In thousands)	September 30, 2011			October 1, 2010			September 30, 2011			October 1, 2010
Cost of sales	$	450		$	303		$	1,200		$	897
Research and development	9,923			6,666			26,393			19,721
Selling, general, and administrative	12,178			8,180			32,390			24,280
Pre-tax stock-based compensation expense	22,551			15,149			59,983			44,898
Less: income tax benefit	(5,907		)	(4,330		)	(16,210		)	(13,045		)
Net stock-based compensation expense	$	16,644		$	10,819		$	43,773		$	31,853

No stock-based compensation was capitalized during any period presented above. As of September 30, 2011, unrecognized stock-based compensation cost related to outstanding unvested stock options, RSUs, PRSUs and ESPP shares that are expected to vest was approximately $192.2 million. This unrecognized stock-based compensation cost is expected to be recognized over a weighted average period of approximately 2.7 years. To the extent the actual forfeiture rate is different from what we have anticipated, stock-based compensation related to these awards will be different from that presented.

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Financial Instruments

9 Months Ended

Sep. 30, 2011

Financial Instruments [Abstract]

Financial Instruments Disclosure [Text Block]

Financial Instruments

Management determines the appropriate classification of investments at the time of purchase. As of September 30, 2011, all investments in our portfolio were classified as available-for-sale. Available-for-sale investments are carried at their fair value based on quoted market prices as of the balance sheet date. Realized gains or losses are determined on the specific identification method and are reflected in Interest income and other in our consolidated statements of income. Net unrealized gains or losses are recorded directly in stockholders’ equity on a net of tax basis. Those unrealized losses that are deemed to be other than temporary are reflected in Interest income and other. Investments classified as long-term represent funds that are deemed to be in excess of our estimated operating requirements and have remaining maturities exceeding twelve months as of the balance sheet date.

The following tables summarize the our available-for-sale securities as of September 30, 2011. We did not own any available-for-sale securities as of December 31, 2010.

	September 30, 2011
(In thousands)	Adjusted Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Assets:
U.S. treasury securities	$	6,748	$	1	$	—		$	6,749
U.S. agency securities	57,662		8		(9		)	57,661
Non-U.S. government securities	8,931		1		(6		)	8,926
Municipal bond	752		—		—			752
Corporate securities	103,577		28		(239		)	103,366
Total available-for-sale securities	$	177,670	$	38	$	(254	)	$	177,454

The adjusted cost and estimated fair value of marketable debt securities (corporate bonds, municipal bonds, U.S. and foreign government securities, and U.S. treasury securities) as of September 30, 2011, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties.

	September 30, 2011
(In thousands)	Adjusted Cost		Estimated Fair Value
Due in one year or less	$	110,694	$	110,674
Due after one year through five years	66,976		66,780
	$	177,670	$	177,454

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Accounts Receivable, Net and Significant Customers (Significant Customers) (Details)	3 Months Ended				9 Months Ended
	Sep. 30, 2011		Oct. 01, 2010		Sep. 30, 2011		Oct. 01, 2010		Dec. 31, 2010
Revenue, Major Customer [Line Items]
Sales To Distributors as a Percentage of Net Sales	0.74		0.77		0.74		0.82
Sales To Oems As Percentage Of Net Sales	0.26		0.23		0.26		0.18
Sales Revenue Net Percentage Of Net Sales	100.00%		100.00%		100.00%		100.00%
Huawei Technologies Co., Ltd
Revenue, Major Customer [Line Items]
Sales To Oems As Percentage Of Net Sales	0.12		0.14		0.13		0.11
Arrow Electronics, Inc
Revenue, Major Customer [Line Items]
Sales To Distributors as a Percentage of Net Sales	0.4	[1]	0.45	[1]	0.39	[1]	0.47	[1]
Accounts Receivable From Distributors As Percentage Of Total Accounts Receivables	0.41				0.41				0.18
Macnica, Inc
Revenue, Major Customer [Line Items]
Sales To Distributors as a Percentage of Net Sales	0.19	[1]	0.19	[1]	0.2	[1]	0.19	[1]
Accounts Receivable From Distributors As Percentage Of Total Accounts Receivables	0.38				0.38				0.51
Avnet, Inc
Revenue, Major Customer [Line Items]
Accounts Receivable From Distributors As Percentage Of Total Accounts Receivables	0.10				0.10				0.12

[1] Except as presented above, no other distributor accounted for greater than 10% of our net sales for the quarterly or year-to-date periods ended September 30, 2011 or October 1, 2010.

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Income Per Share

9 Months Ended

Sep. 30, 2011

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Income Per Share

A reconciliation of basic and diluted income per share is presented below:

	Three Months Ended				Nine Months Ended
(In thousands, except per share amounts)	September 30, 2011		October 1, 2010		September 30, 2011		October 1, 2010
Basic:
Net income	$	185,404	$	217,491	$	624,100	$	551,271
Basic weighted shares outstanding	321,745		309,766		322,012		304,267
Net income per share	$	0.58	$	0.70	$	1.94	$	1.81
Diluted:
Net income	$	185,404	$	217,491	$	624,100	$	551,271
Weighted shares outstanding	321,745		309,766		322,012		304,267
Effect of dilutive securities:
Stock options, ESPP, and restricted stock unit shares	5,299		7,303		6,252		6,100
Diluted weighted shares outstanding	327,044		317,069		328,264		310,367
Net income per share	$	0.57	$	0.69	$	1.90	$	1.78

In applying the treasury stock method, we excluded 2.7 million and 1.4 million stock option shares and restricted stock units for the three and nine months ended September 30, 2011, respectively, and 1.0 million and 4.7 million stock option shares for the three and nine months ended October 1, 2010, respectively, because their effect was anti-dilutive. While these shares have been anti-dilutive, they could be dilutive in the future.

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Non-Qualified Deferred Compensation Plan

9 Months Ended

Sep. 30, 2011

Non Qualified Deferred Compensation Plan [Abstract]

Non Qualified Deferred Compensation Plan [Text Block]

Non-Qualified Deferred Compensation Plan

We allow our U.S.-based officers and director-level employees to defer a portion of their compensation under the Altera Corporation Non-Qualified Deferred Compensation Plan (“NQDC Plan”). Our Retirement Plans Committee administers the NQDC Plan. As of September 30, 2011, there were 123 participants in the NQDC Plan who self-direct their investments, subject to certain limitations. In the event we become insolvent, the NQDC Plan assets are subject to the claims of our general creditors. Since the inception of the NQDC Plan, we have not made any contributions to the NQDC Plan and we have no commitments to do so in the future. There are no NQDC Plan provisions that provide for any guarantees or minimum return on investments. NQDC Plan participants are prohibited from investing NQDC Plan contributions in Altera common stock. The balance of the NQDC Plan assets and related obligations was $69.0 million and $74.2 million as of September 30, 2011 and December 31, 2010, respectively.

Investment income or loss earned by the NQDC Plan is recorded as Loss (Gain) on deferred compensation plan securities in our consolidated statements of income. The investment loss (gain) also represents a decrease (increase) in the future payout to participants and is recorded as Compensation (benefit) expense — deferred compensation plan in our consolidated statements of income. Compensation (benefit) expense associated with our NQDC Plan obligations is offset by loss (gain) from related securities. The net effect of investment income or loss and related compensation expense or benefit has no impact on our income before income taxes, net income, or cash balances.

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Credit Facility

9 Months Ended

Sep. 30, 2011

Line of Credit Facility [Abstract]

Schedule of Line of Credit Facilities [Text Block]

Credit Facility

Our total borrowings under our $750 million unsecured revolving credit facility (the “Facility”) as of September 30, 2011 and December 31, 2010 were $500 million. Borrowings under the Facility bear interest at either a Eurodollar rate (“LIBOR”) or a Prime rate, at our option, plus an applicable margin based upon certain financial ratios. The interest rate as of September 30, 2011 was LIBOR plus 0.27%. In addition, we pay a facility fee on the entire Facility. This facility fee varies with certain financial ratios and was 0.08% as of September 30, 2011. The principal amount of borrowings, together with accrued interest, is due on the maturity date in August 2012. As of September 30, 2011, $250 million was available under the Facility.

The terms of the Facility require compliance with certain financial covenants that require us to maintain specified financial ratios related to interest coverage and financial leverage. As of September 30, 2011, we were in compliance with all such covenants.

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Financial Instruments Schedules of Available for Sales Securities (Details) (USD $) In Thousands	Sep. 30, 2011
Schedule of Available-for-sale Securities [Line Items]
Adjusted Cost	$ 177,670
Gross Unrealized Gains	38
Gross Unrealized Losses	(254)
Estimated Fair Value	177,454
US Treasury Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Adjusted Cost	6,748
Gross Unrealized Gains	1
Gross Unrealized Losses	0
Estimated Fair Value	6,749
US Government Agencies Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Adjusted Cost	57,662
Gross Unrealized Gains	8
Gross Unrealized Losses	(9)
Estimated Fair Value	57,661
Foreign Government Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Adjusted Cost	8,931
Gross Unrealized Gains	1
Gross Unrealized Losses	(6)
Estimated Fair Value	8,926
Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Adjusted Cost	752
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Estimated Fair Value	752
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Adjusted Cost	103,577
Gross Unrealized Gains	28
Gross Unrealized Losses	(239)
Estimated Fair Value	$ 103,366

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Comprehensive Income

9 Months Ended

Sep. 30, 2011

Comprehensive Income [Abstract]

Comprehensive Income Note [Text Block]

Comprehensive Income

The components of comprehensive income are as follows:

	Three Months Ended					Nine Months Ended
(in thousands)	September 30, 2011			October 1, 2010		September 30, 2011			October 1, 2010
Net income	$	185,404		$	217,491	$	624,100		$	551,271
Unrealized holding losses on available-for-sale securities, net of tax	(190		)	—		(190		)	—
Comprehensive income	$	185,214		$	217,491	$	623,910		$	551,271

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Organization and Basis of Presentation

9 Months Ended

Sep. 30, 2011

Organization and Basis of Presentation [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Organization and Basis of Presentation

The accompanying unaudited consolidated financial statements of Altera Corporation and its subsidiaries, collectively referred to herein as “Altera”, “we”, “us”, or “our”, have been prepared by us in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. This financial information reflects all adjustments which are, in the opinion of our management, of a normal recurring nature and necessary for a fair statement of the results for the periods presented. The December 31, 2010 consolidated balance sheet data was derived from our audited consolidated financial statements included in our 2010 Annual Report on Form 10-K, as filed with the Securities and Exchange Commission (“SEC”), but does not include all disclosures required by U.S. GAAP. The consolidated financial statements include our accounts as well as those of our wholly-owned subsidiaries after elimination of all significant inter-company balances and transactions.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates.

These consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2010 included in our Annual Report on Form 10-K. The consolidated operating results for the three or nine months ended September 30, 2011 are not necessarily indicative of the results to be expected for any future period.

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Accounts Receivable, Net and Significant Customers

9 Months Ended

Sep. 30, 2011

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Accounts Receivable, Net and Significant Customers

Accounts receivable, net was comprised of the following:

(In thousands)	September 30, 2011			December 31, 2010
Gross accounts receivable	$	387,674		$	364,114
Allowance for doubtful accounts	(500		)	(500		)
Allowance for sales returns	(332		)	—
Accounts receivable, net	$	386,842		$	363,614

We sell our products to original equipment manufacturers, or OEMs, and to electronic components distributors who resell these products to OEMs, or their subcontract manufacturers. Net sales by customer type and net sales to significant customers were as follows:

	Three Months Ended				Nine Months Ended
(Percentage of Net Sales)	September 30, 2011		October 1, 2010		September 30, 2011		October 1, 2010
Sales to distributors	74	%	77	%	74	%	82	%
Sales to OEMs	26	%	23	%	26	%	18	%
	100	%	100	%	100	%	100	%
Significant Distributors(1):
Arrow Electronics, Inc. ( “Arrow”)	40	%	45	%	39	%	47	%
Macnica, Inc. (“Macnica”)	19	%	19	%	20	%	19	%

(1) Except as presented above, no other distributor accounted for greater than 10% of our net sales for the quarterly or year-to-date periods ended September 30, 2011 or October 1, 2010.

Huawei Technologies Co., Ltd. ("Huawei"), an OEM, accounted for 12% and 13% of our net sales for the quarterly and year-to-date periods ended September 30, 2011, respectively. Huawei accounted for 14% and 11% of our net sales for the quarterly and year-to-date periods ended October 1, 2010, respectively. No other individual OEM accounted for more than 10% of our net sales for the quarterly or year-to-date periods ended September 30, 2011 or October 1, 2010.

As of September 30, 2011, accounts receivable from Arrow, Macnica and Avnet, Inc. including its affiliates (“Avnet”), individually accounted for approximately 41%, 38% and 10%, respectively, of our total accounts receivable. As of December 31, 2010, accounts receivable from Arrow, Macnica and Avnet individually accounted for approximately 18%, 51% and 12%, respectively, of our total accounts receivable. No other distributor or OEM accounted for more than 10% of our accounts receivable as of September 30, 2011 or December 31, 2010. Accounts receivable from distributors may not be proportionate to net sales and may fluctuate on a quarterly basis due to varying factors, including inventory levels held by distributors and timing of price concessions and payments.

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Income Per Share (Details) (USD $) In Thousands, except Share data	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Oct. 01, 2010	Sep. 30, 2011	Oct. 01, 2010
Earnings Per Share, Basic [Abstract]
Net income	$ 185,404	$ 217,491	$ 624,100	$ 551,271
Basic weighted shares outstanding	321,745,000	309,766,000	322,012,000	304,267,000
Basic	$ 0.58	$ 0.7	$ 1.94	$ 1.81
Earnings Per Share, Diluted [Abstract]
Net income	$ 185,404	$ 217,491	$ 624,100	$ 551,271
Basic weighted shares outstanding	321,745,000	309,766,000	322,012,000	304,267,000
Stock Options, ESPP, and Restricted Stock Unit Shares	5,299,000	7,303,000	6,252,000	6,100,000
Diluted weighted shares outstanding	327,044,000	317,069,000	328,264,000	310,367,000
Diluted	$ 0.57	$ 0.69	$ 1.9	$ 1.78
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,700,000	1,000,000	1,400,000	4,700,000

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Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2011

Fair Value of Financial Instruments [Abstract]

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

The following tables summarize the valuation of our financial instruments as of September 30, 2011 and December 31, 2010:

			Fair Value Measurements as of September 30, 2011
(In thousands)	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
Assets:
Cash and cash equivalents:
Money market funds	$	3,051,951	$	3,051,951	$	—
U.S. agency securities	19,320		—		19,320
Non-U.S. government securities	1,016		—		1,016
Corporate securities	28,939		13,998		14,941
Total (1)	$	3,101,226	$	3,065,949	$	35,277
Short-term marketable securities:
U.S treasury securities	6,749		6,749		—
U.S agency securities	30,845		—		30,845
Non-US government securities	5,394		—		5,394
Corporate securities	18,411		—		18,411
Total	$	61,399	$	6,749	$	54,650
Long-term marketable securities:
U.S agency securities	7,496		—		7,496
Non-US government securities	2,516		—		2,516
Municipal bond	752		—		752
Corporate securities	56,016		—		56,016
Total	$	66,780	$	—	$	66,780
Deferred compensation plan assets: (2)
Restricted cash equivalents	18,157		18,157		—
Equity securities	21,589		21,589		—
Fixed income securities	4,010				4,010
Mutual funds	25,210		25,210		—
Total	$	68,966	$	64,956	$	4,010
Total	$	3,298,371	$	3,137,654	$	160,717

			Fair Value Measurements as of December 31, 2010
(In thousands)	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
Assets:
Cash and cash equivalents(1)
Money market funds	$	2,690,752	$	2,690,752	$	—
Deferred compensation plan assets(2)
Restricted cash equivalents	19,817		19,817		—
Equity securities	22,235		22,235		—
Fixed income securities	5,062		—		5,062
Mutual funds	27,122		27,122		—
Total	$	2,764,988	$	2,759,926	$	5,062

(1) Included in Cash and cash equivalents in our consolidated balance sheet

(2) Included in Deferred compensation plan — marketable securities and Deferred compensation plan — restricted cash equivalents in our consolidated balance sheets.

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Inventories

9 Months Ended

Sep. 30, 2011

Inventory, Net [Abstract]

Inventory Disclosure [Text Block]

Inventories

Inventories were comprised of the following:

(In thousands)	September 30, 2011		December 31, 2010
Raw materials	$	10,266	$	9,833
Work in process	79,998		90,627
Finished goods	43,764		46,064
Total inventories	$	134,028	$	146,524

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Commitments and Contingencies (Details) (USD $) In Millions, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2011 lawsuits	Dec. 31, 2011 lawsuits	Dec. 31, 2009 lawsuits	Dec. 31, 2008 lawsuits	Dec. 31, 2006 lawsuits
Loss Contingencies [Line Items]
Number of Shareholder Derivative Lawsuits Filed					3
Loss Contingency, New Claims Filed, Number	1	1			4
Loss Contingency, Claims Settled and Dismissed, Number	1		1	4	1
Loss Contingency, Pending Claims, Number	2
Significant Commitment, Remaining Minimum Amount Committed	$ 116.9
Operating Leases, Future Minimum Payments Due	$ 36.9

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Comprehensive Income Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2011

Comprehensive Income [Abstract]

Schedule of Comprehensive Income (Loss) [Table Text Block]

The components of comprehensive income are as follows:

	Three Months Ended					Nine Months Ended
(in thousands)	September 30, 2011			October 1, 2010		September 30, 2011			October 1, 2010
Net income	$	185,404		$	217,491	$	624,100		$	551,271
Unrealized holding losses on available-for-sale securities, net of tax	(190		)	—		(190		)	—
Comprehensive income	$	185,214		$	217,491	$	623,910		$	551,271

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Financial Instruments Available for Sales Securities - Contractual Maturity (Details) (USD $) In Thousands	Sep. 30, 2011
Schedule of Available-for-sale Securities [Line Items]
Adjusted Cost, due in one year or less	$ 110,694
Adjusted cost,due after one year through five years	66,976
Available-for-sale Securities, Debt Maturities, after One Through Five Years, Fair Value	66,780
Adjusted Cost	177,670
Estimated Fair Value, due in one year or less	110,674
Estimated Fair Value	$ 177,454

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Credit Facility (Details) (USD $)	Sep. 30, 2011	Dec. 31, 2010
Line of Credit Facility [Line Items]
Unsecured Revolving Credit Facility, Maximum Borrowing Capacity	$ 750,000,000	$ 750,000,000
Total Borrowings Under Unsecured Revolving Credit Facilty - Short Term	500,000,000	0
Total Borrowings Under Unsecured Revolving Credit Facility - Long Term	0	500,000,000
Unsecured Revolving Credit Facility, LIBOR plus Interest Rate	0.27%
Percentage Of Facility Fee	0.08%
Unsecured Revolving Credit Facility, Remaining Borrowing Capacity	$ 250,000,000

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Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2011

Stock Based Compensation Tables [Abstract]

Summary Of Activity For Restricted Stock Units And Performance Based Restricted Stock Units [Text Block]

A summary of activity for our RSUs and PRSUs for the nine months ended September 30, 2011 and information regarding RSUs and PRSUs outstanding and expected to vest as of September 30, 2011 is as follows:

(In thousands, except per share amounts and terms)	Number of Shares		Weighted-Average Grant-Date Fair Market Value Per Share		Weighted-Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value (1)
Outstanding, December 31, 2010	7,613		$	22.95
Grants	3,403		$	42.43
Vested	(2,569	)	$	21.87
Forfeited	(363	)	$	27.11
Outstanding, September 30, 2011	8,084		$	31.30	1.8	$	254,898
Vested and expected to vest, September, 30, 2011	6,998		$	31.30	1.7	$	220,648

(1) Aggregate intrinsic value represents the closing price per share of our stock on September 30, 2011, multiplied by the number of RSUs and PRSUs outstanding or vested and expected to vest as of September 30, 2011.

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

A summary of stock option activity for the nine months ended September 30, 2011 and information regarding stock options outstanding, exercisable, and vested and expected to vest as of September 30, 2011 is as follows:

(In thousands, except per share amounts and terms)	Number of Shares		Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value (1)
Outstanding, December 31, 2010	10,179		$	20.61
Grants	806		$	42.37
Exercises	(3,950	)	$	21.42
Forfeited/Cancelled/Expired	(38	)	$	21.95
Outstanding, September 30, 2011	6,997		$	22.68	3.8	$	70,651
Exercisable, September 30, 2011	5,981		$	20.28	2.9	$	67,312
Vested and expected to vest, September 30, 2011	6,856		$	22.33	3.7	$	70,411

(1) For those stock options with an exercise price below the closing price per share on September 30, 2011, aggregate intrinsic value represents the difference between the exercise price and the closing price per share of our common stock on September 30, 2011, multiplied by the number of stock options outstanding, exercisable, or vested and expected to vest as of September 30, 2011.

Assumptions Used To Estimate Fair Value Of Stock Options Rsus And Prsus [Text Block]

The assumptions used to estimate the fair value of ESPP, RSUs and PRSUs were as follows:

	Three Months Ended						Nine Months Ended
	September 30, 2011			October 1, 2010			September 30, 2011			October 1, 2010
ESPP purchase rights:
Expected term (in years)	—			—			0.8			0.7
Expected stock price volatility	—			—			34.5		%	31.2		%
Risk-free interest rate	—			—			0.2		%	0.3		%
Dividend yield	—			—			0.5		%	0.8		%
Weighted-average estimated fair value	—			—			$	12.88		$	6.56
RSUs and PRSUs:
Risk-free interest rate	0.5		%	0.7		%	0.6		%	0.8		%
Dividend yield	0.8		%	0.9		%	0.7		%	0.9		%
Weighted-average estimated fair value	$	41.50		$	27.33		$	41.71		$	26.32

Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]

In addition, we apply an expected forfeiture rate when amortizing stock-based compensation expense. Our stock-based compensation expense included in the consolidated statements of income for the three and nine months ended September 30, 2011 and October 1, 2010 was as follows:

	Three Months Ended						Nine Months Ended
(In thousands)	September 30, 2011			October 1, 2010			September 30, 2011			October 1, 2010
Cost of sales	$	450		$	303		$	1,200		$	897
Research and development	9,923			6,666			26,393			19,721
Selling, general, and administrative	12,178			8,180			32,390			24,280
Pre-tax stock-based compensation expense	22,551			15,149			59,983			44,898
Less: income tax benefit	(5,907		)	(4,330		)	(16,210		)	(13,045		)
Net stock-based compensation expense	$	16,644		$	10,819		$	43,773		$	31,853

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Income Taxes

9 Months Ended

Sep. 30, 2011

Income Tax Expense (Benefit) [Abstract]

Income Tax Disclosure [Text Block]

Income Taxes

Our effective tax rate reflects the impact of a significant amount of our earnings being taxed in foreign jurisdictions at rates below the U.S. statutory tax rate.

Our effective tax rate for the three months ended September 30, 2011 was 9.7%, compared with 8.7% for the three months ended October 1, 2010. During the three months ended October 1, 2010, our tax rate was favorably affected by adjustments to our liabilities for uncertain tax positions due primarily to the expiration of the statutes of limitations for certain foreign jurisdictions. The impact of similar adjustments during the three months ended September 30, 2011 was less significant, thereby causing an increase in our effective tax rate in 2011. The 2011 increase in our effective tax rate due to the above referenced factors was partially offset by the impact of proportionately higher 2011 earnings in foreign jurisdictions taxed at rates below the U.S. statutory tax rate and lower California tax liabilities due to a California law change effective in 2011.

Our effective tax rate for the nine months ended September 30, 2011 was 9.4%, compared with 8.7% for the nine months ended October 1, 2010. During the nine months ended October 1, 2010, our tax rate was favorably affected by adjustments to our liabilities for uncertain tax positions due primarily to the expiration of the statutes of limitations for certain foreign jurisdictions. The impact of similar adjustments during the nine months ended September 30, 2011 was less significant, thereby causing an increase in our effective tax rate in 2011. In addition, in 2010 we reversed $11.7 millionof liabilities for uncertain tax positions as a result of a 2010 U.S. court ruling which held that stock based compensation was not required to be included in certain transfer pricing arrangements between a U.S. company and its foreign subsidiary. The 2011 increase in our effective tax rate due to the above referenced factors was partially offset by the impact of proportionately higher 2011 earnings in foreign jurisdictions taxed at rates below the U.S. statutory tax rate and lower California tax liabilities due to a California law change effective in 2011.

We file income tax returns with the Internal Revenue Service (“IRS”) and in various states and foreign jurisdictions. The IRS has completed field examinations of our tax returns for 2002 through 2004 and has issued a notice of proposed adjustment seeking additional taxes of approximately $34.5 million (excluding interest) for those years. We paid $18.0 million to the IRS in 2008, representing a payment on bond for items associated with the IRS field examinations for 2002 through 2004. We are contesting through the administrative process the IRS claims regarding our 2002 through 2004 tax years. In addition, the IRS has completed field examinations of our tax returns for 2005 through 2007 and has issued a notice of proposed adjustment seeking additional taxes of approximately $34.2 million (excluding interest) for those years. We are contesting through the administrative process the IRS claims regarding our 2005 through 2007 tax years. Other significant jurisdictions in which we are or may be subject to examination for fiscal years 2003 forward include China (including Hong Kong), Ireland, Malaysia, Japan, United Kingdom, and the state of California. As mentioned below, we believe we have made adequate tax payments and/or accrued adequate amounts such that the outcome of these audits will have no material adverse effect on our consolidated operating results. Due to the potential resolution of federal, state and foreign examinations, and the expiration of various statutes of limitations, it is possible that our gross unrecognized tax benefits may change within the next twelve months. However, given the number of years remaining subject to examination and the number of matters being examined, we are unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits.

As of September 30, 2011 we had $276.1 million of unrecognized tax benefits, that if recognized, would impact our effective tax rate. On December 31, 2010, we had $243.3 million of unrecognized tax benefits. We are unable to make a reasonable estimate as to when cash settlements with the relevant taxing authorities will occur.

We recognize interest and penalties related to uncertain tax positions in our income tax provision. We had accrued approximately $53.1 million and $50.0 million for the payment of interest and penalties related to uncertain tax positions as of September 30, 2011 and December 31, 2010, respectively

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Property and Equipment

9 Months Ended

Sep. 30, 2011

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

Property and Equipment

Property and equipment, net was comprised of the following:

(In thousands)	September 30, 2011			December 31, 2010
Land and land rights	$	23,157		$	23,108
Buildings	148,200			146,604
Equipment and software	227,084			206,935
Office furniture and fixtures	23,146			22,952
Leasehold improvements	7,423			6,773
Construction in progress	5,320			3,406
Property and equipment, at cost	434,330			409,778
Accumulated depreciation and amortization	(263,230		)	(245,623		)
Property and equipment, net	$	171,100		$	164,155

Depreciation expense includes the amortization of assets recorded under capital leases. Depreciation expense was $7.4 million and $21.1 million for the three and nine months ended September 30, 2011, respectively. Depreciation expense was $6.5 million and $19.9 million for the three and nine months ended October 1, 2010, respectively. Depreciation and amortization expense as presented in our consolidated statements of cash flows includes the above amounts, together with amortization expense on our intangible assets. Intangible asset amortization expense was not significant for any period presented in our consolidated statements of income.

Assets held under capital leases, included in Equipment and software as presented above, totaled $1.0 million (net of accumulated amortization of $13.8 million) as of September 30, 2011 and $5.0 million (net of accumulated amortization of $11.3 million) as of December 31, 2010.

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Subsequent Event

9 Months Ended

Sep. 30, 2011

Subsequent Events [Abstract]

Schedule of Subsequent Events [Text Block]

Subsequent Event

On October 17, 2011, our board of directors declared a quarterly cash dividend of $0.08 per common share, payable on December 1, 2011 to stockholders of record on November 10, 2011.

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Comprehensive Income (Details) (USD $) In Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Oct. 01, 2010	Sep. 30, 2011	Oct. 01, 2010
Components of Comprehensive Income
Net income	$ 185,404	$ 217,491	$ 624,100	$ 551,271
Unrealized holding losses on available-for-sale securities, net of tax	(190)	0	(190)	0
Comprehensive income	$ 185,214	$ 217,491	$ 623,910	$ 551,271

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Income Per Share (Tables)

9 Months Ended

Sep. 30, 2011

Earnings Per Share [Abstract]

Schedule of Earnings Per Share Reconciliation [Table Text Block]

A reconciliation of basic and diluted income per share is presented below:

	Three Months Ended				Nine Months Ended
(In thousands, except per share amounts)	September 30, 2011		October 1, 2010		September 30, 2011		October 1, 2010
Basic:
Net income	$	185,404	$	217,491	$	624,100	$	551,271
Basic weighted shares outstanding	321,745		309,766		322,012		304,267
Net income per share	$	0.58	$	0.70	$	1.94	$	1.81
Diluted:
Net income	$	185,404	$	217,491	$	624,100	$	551,271
Weighted shares outstanding	321,745		309,766		322,012		304,267
Effect of dilutive securities:
Stock options, ESPP, and restricted stock unit shares	5,299		7,303		6,252		6,100
Diluted weighted shares outstanding	327,044		317,069		328,264		310,367
Net income per share	$	0.57	$	0.69	$	1.90	$	1.78

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Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands	9 Months Ended
	Sep. 30, 2011	Oct. 01, 2010
Cash Flows from Operating Activities:
Net income	$ 624,100	$ 551,271
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	23,443	20,276
Stock-based compensation	59,983	44,898
Deferred income tax benefit	(9,549)	(16,493)
Tax effect of employee stock plans	26,077	14,602
Excess tax benefit from employee stock plans	(22,959)	(12,879)
Changes in assets and liabilities:
Accounts receivable, net	(23,228)	(128,668)
Inventories	12,496	(38,448)
Other assets	47,986	(43,946)
Accounts payable and other liabilities	(40,004)	112,788
Deferred income and allowances on sales to distributors	11,115	103,665
Income taxes payable	30,122	42,358
Deferred compensation plan obligations	(345)	(2,880)
Net cash provided by operating activities	739,237	646,544
Cash Flows from Investing Activities:
Purchases of property and equipment	(23,178)	(6,325)
Sales of deferred compensation plan securities, net	345	2,880
Purchases of available-for-sale securities	(130,146)	0
Proceeds from sale and maturity of available-for-sale securities	1,750	0
Purchases of intangible assets	0	(1,500)
Net cash used in investing activities	(151,229)	(4,945)
Cash Flows from Financing Activities:
Proceeds from issuance of common stock through various stock plans	93,619	284,776
Shares withheld for employee taxes	(31,122)	(19,880)
Payment of dividends to stockholders	(64,328)	(48,764)
Repurchases of common stock	(197,018)	0
Excess tax benefit from stock-based compensation	22,959	12,879
Principal payments on capital lease obligations	0	(2,866)
Net cash (used in) provided by financing activities	(175,890)	226,145
Net increase in cash and cash equivalents	412,118	867,744
Cash and cash equivalents at beginning of period	2,765,196	1,546,672
Cash and cash equivalents at end of period	$ 3,177,314	$ 2,414,416

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Financial Instruments Financial Instrument (Policies)

9 Months Ended

Sep. 30, 2011

Financial Instruments [Abstract]

Fair Value of Financial Instruments, Policy [Policy Text Block]

Management determines the appropriate classification of investments at the time of purchase. As of September 30, 2011, all investments in our portfolio were classified as available-for-sale. Available-for-sale investments are carried at their fair value based on quoted market prices as of the balance sheet date. Realized gains or losses are determined on the specific identification method and are reflected in Interest income and other in our consolidated statements of income. Net unrealized gains or losses are recorded directly in stockholders’ equity on a net of tax basis. Those unrealized losses that are deemed to be other than temporary are reflected in Interest income and other. Investments classified as long-term represent funds that are deemed to be in excess of our estimated operating requirements and have remaining maturities exceeding twelve months as of the balance sheet date.

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Stock-Based Compensation (Expense) (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Oct. 01, 2010	Sep. 30, 2011	Oct. 01, 2010
Employee Stock [Member]
ESPP Purchase Rights And Restricted Stock And Performance Based Restricted Stock Units [Abstract]
Expected term (in years)	0.0	0.0	0.8	0.7
Expected stock price volatility	0.00%	0.00%	34.50%	31.20%
Risk-free interest rate	0.00%	0.00%	0.20%	0.30%
Dividend yield	0.00%	0.00%	0.50%	0.80%
Weighted-average estimated fair value	$ 0.00	$ 0.00	$ 12.88	$ 6.56
Restricted Stock Units And Performance Based Restricted Stock Units [Member]
ESPP Purchase Rights And Restricted Stock And Performance Based Restricted Stock Units [Abstract]
Risk-free interest rate	0.50%	0.70%	0.60%	0.80%
Dividend yield	0.80%	0.90%	0.70%	0.90%
Weighted-average estimated fair value	$ 41.50	$ 27.33	$ 41.71	$ 26.32

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Accounts Receivable, Net and Significant Customers (Tables)

9 Months Ended

Sep. 30, 2011

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

Accounts receivable, net was comprised of the following:

(In thousands)	September 30, 2011			December 31, 2010
Gross accounts receivable	$	387,674		$	364,114
Allowance for doubtful accounts	(500		)	(500		)
Allowance for sales returns	(332		)	—
Accounts receivable, net	$	386,842		$	363,614

Net Sales By Customer Type And Net Sales To Significant Customers Table [Text Block]

Net sales by customer type and net sales to significant customers were as follows:

	Three Months Ended				Nine Months Ended
(Percentage of Net Sales)	September 30, 2011		October 1, 2010		September 30, 2011		October 1, 2010
Sales to distributors	74	%	77	%	74	%	82	%
Sales to OEMs	26	%	23	%	26	%	18	%
	100	%	100	%	100	%	100	%
Significant Distributors(1):
Arrow Electronics, Inc. ( “Arrow”)	40	%	45	%	39	%	47	%
Macnica, Inc. (“Macnica”)	19	%	19	%	20	%	19	%

(1) Except as presented above, no other distributor accounted for greater than 10% of our net sales for the quarterly or year-to-date periods ended September 30, 2011 or October 1, 2010.

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Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2011

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Recent accounting pronoucement [Text Block]

Recent Accounting Pronouncements

In May 2011, the Financial Accounting Standards Board ("FASB") issued amended guidance on fair value measurement and related disclosures. The new guidance clarified the concepts applicable for fair value measurement of non-financial assets and requires the disclosure of quantitative information about the unobservable inputs used in a fair value measurement. This guidance will be effective for reporting periods beginning after December 15, 2011, and will be applied prospectively. We are in the process of evaluating the financial and disclosure impact of this guidance. We do not anticipate a material impact on our consolidated financial statements as a result of the adoption of this amended guidance.

In June 2011, the FASB issued amended guidance on the presentation of comprehensive income. The amended guidance eliminates one of the presentation options provided by current U.S. GAAP, that is to present the components of other comprehensive income as part of the statement of changes in stockholders' equity. In addition, it gives an entity the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. This guidance will be effective for reporting periods beginning after December 15, 2011 and will be applied retrospectively. We are in the process of evaluating the disclosure impact of this guidance.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2011

Commitments And Contingencies [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Commitments and Contingencies

Indemnification and Product Warranty

We indemnify certain customers, distributors, suppliers, and subcontractors for attorney's fees and damages and costs awarded against these parties in certain circumstances in which our products are alleged to infringe third party intellectual property rights, including patents, trade secrets, trademarks, or copyrights. We cannot estimate the amount of potential future payments, if any, that we might be required to make as a result of these agreements. To date, we have not paid any claim or been required to defend any action related to our indemnification obligations, and accordingly, we have not accrued any amounts for such indemnification obligations. However, we may record charges in the future as a result of these indemnification obligations.

We generally warrant our devices for one year against defects in materials, workmanship and material non-conformance to our specifications. We accrue for known warranty issues if a loss is probable and can be reasonably estimated, and accrue for estimated but unidentified issues based on historical activity. If there is a material increase in customer claims compared with our historical experience or if the costs of servicing warranty claims are greater than expected, we may record a charge against cost of sales. Warranty expense was not significant for any period presented in our consolidated statements of income.

Purchase Obligations

We depend entirely upon subcontractors to manufacture our silicon wafers and provide assembly and test services. Due to lengthy subcontractor lead times, we must order these materials and services from these subcontractors well in advance, and we are obligated to pay for the materials and services once they are completed. As of September 30, 2011, we had approximately $116.9 million of outstanding purchase commitments to such subcontractors. We expect to receive and pay for these materials and services over the next six months.

Operating Leases

We lease facilities under non-cancelable lease agreements expiring at various times through 2021. As of September 30, 2011, we have entered into an operating lease in Austin, Texas and an agreement to sign an operating lease in Toronto, Canada, respectively, both with a term of 10 years and total lease payment commitments of $36.9 million.

Legal Proceedings

We are named as a party to a lawsuit concerning our historical stock option practices and related accounting and reporting.

In May and July 2006, we were notified that three shareholder derivative lawsuits had been filed in the Superior Court of the State of California, County of Santa Clara, by persons identifying themselves as Altera shareholders and purporting to act on behalf of Altera, naming Altera Corporation as a nominal defendant and naming some of our current and former officers and directors as defendants. On July 12, 2006, one of these derivative actions was voluntarily dismissed by the plaintiff shareholder. The remaining two derivative lawsuits pending in Santa Clara Superior Court were consolidated into a single action on September 5, 2006. Plaintiffs filed a second amended consolidated complaint on December 15, 2006. On January 30, 2007, Altera and the defendants filed a motion to stay this action pending resolution of the federal derivative action (discussed below). On February 11, 2009, one of the remaining derivative plaintiffs voluntarily dismissed his derivative claims and, on March 20, 2009, the other remaining derivative plaintiff filed a third amended complaint. In June 2009, Altera and the defendants demurred to the third amended complaint. After the court issued a tentative ruling in favor of Altera, the parties agreed to stay the action in order to allow plaintiff to serve a demand on Altera's board of directors. The plaintiff served the demand on November 4, 2009. In the first quarter of 2010, the board of directors completed its review of the demand and decided to reject plantiff's demand. On June 1, 2010, the plaintiff filed a fourth amended complaint, alleging that the board of director’s decision to reject plaintiff’s demand was wrongful. On July 15, 2010, Altera demurred to the fourth amended complaint. In October 2010, the court dismissed plaintiff's fourth amended complaint and granted plaintiff leave to file a fifth amended complaint. On November 4, 2010, the plaintiff filed a fifth amended complaint, alleging that Altera's board of directors wrongfully refused his demand. On December 10, 2010, Altera, joined by the individual defendants, demurred to the fifth amended complaint. On March 23, 2011, the plaintiff entered into a stipulation agreeing to voluntarily dismiss the action with prejudice.  On April 21, 2011, the court entered an order dismissing the action with prejudice and set a dismissal review hearing for June 24, 2011.  The April 2011 order dismissing the action with prejudice was finalized at the June 2011 dismissal review hearing.

Plaintiff asserted claims against the individual defendants for breach of fiduciary duty, waste of corporate assets, unjust enrichment, violations of California Corporation Code section 25402, breach of fiduciary duty for insider selling and misappropriation of information, and deceit. Plaintiff's claims concerned the granting of stock options by Altera between 1994 and 2001 and the alleged filing of false and misleading financial statements between 1994 and 2006. All of these claims were asserted derivatively on behalf of Altera. Plaintiff sought, among other relief, an indeterminate amount of damages from the individual defendants and a judgment directing Altera to reform its corporate governance practices.

During the months of May, June, and July 2006, four other derivative lawsuits were filed by purported Altera shareholders, on behalf of Altera, in the United States District Court for the Northern District of California. On August 8, 2006, these actions were consolidated, and the plaintiffs filed a consolidated complaint on November 30, 2006. On September 15, 2008, the plaintiffs voluntarily agreed to dismiss the case. On September 18, 2008, the court entered an order dismissing the case.

On December 8, 2010, Intellectual Ventures I LLC and Intellectual Ventures II LLC (“Intellectual Ventures”) filed a lawsuit in the United States District Court for the District of Delaware against Altera, Microsemi Corporation, and Lattice Semiconductor Corporation alleging that Altera is infringing five patents.  The complaint requests unspecified monetary damages including enhanced damages for willful infringement. In February 2011, Intellectual Ventures filed a First Amended Complaint adding Xilinx, Inc. as a defendant. In March 2011, Altera answered the complaint and asserted counterclaims against Intellectual Ventures for non-infringement and invalidity of the asserted patents. The defendants have filed motions in the District of Delaware to transfer the case to the United States District Court for the Northern District of California and to stay the action pending re-examination proceedings in the United States Patent and Trademark Office.  Intellectual Ventures has opposed the motions, which are still pending before the court. Because the case is at a very early stage, it is not possible for us to determine whether there is a reasonable possibility that a loss has been incurred nor can we estimate the range of potential loss.

On June 24, 2011, Altera filed an action in the United States District Court for the Northern District of California against LSI Corporation and Agere Systems, Inc. (collectively “LSI”). The action alleges that LSI infringes various patents owned by Altera and also seeks a declaratory judgment that Altera does not infringe various patents owned by LSI and/or Agere (the “LSI patents”) and that the LSI patents are invalid. In September 2011, LSI answered the complaint and asserted counterclaims of patent infringement against Altera. Because the case is at a very early stage, it is not possible for us to determine whether there is a reasonable possibility that a loss has been incurred nor can we estimate the range of potential loss.

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Accounts Receivable, Net and Significant Customers (Accounts Receivables) (Details) (USD $) In Thousands	Sep. 30, 2011	Dec. 31, 2010
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross accounts receivable	$ 387,674	$ 364,114
Allowance for doubtful accounts	(500)	(500)
Allowance for sales returns	(332)	0
Accounts receivable, net	$ 386,842	$ 363,614

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Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2011

Fair Value of Financial Instruments [Abstract]

Fair Value Disclosures [Text Block]

Fair Value of Financial Instruments

The following tables summarize the valuation of our financial instruments as of September 30, 2011 and December 31, 2010:

			Fair Value Measurements as of September 30, 2011
(In thousands)	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
Assets:
Cash and cash equivalents:
Money market funds	$	3,051,951	$	3,051,951	$	—
U.S. agency securities	19,320		—		19,320
Non-U.S. government securities	1,016		—		1,016
Corporate securities	28,939		13,998		14,941
Total (1)	$	3,101,226	$	3,065,949	$	35,277
Short-term marketable securities:
U.S treasury securities	6,749		6,749		—
U.S agency securities	30,845		—		30,845
Non-US government securities	5,394		—		5,394
Corporate securities	18,411		—		18,411
Total	$	61,399	$	6,749	$	54,650
Long-term marketable securities:
U.S agency securities	7,496		—		7,496
Non-US government securities	2,516		—		2,516
Municipal bond	752		—		752
Corporate securities	56,016		—		56,016
Total	$	66,780	$	—	$	66,780
Deferred compensation plan assets: (2)
Restricted cash equivalents	18,157		18,157		—
Equity securities	21,589		21,589		—
Fixed income securities	4,010				4,010
Mutual funds	25,210		25,210		—
Total	$	68,966	$	64,956	$	4,010
Total	$	3,298,371	$	3,137,654	$	160,717

			Fair Value Measurements as of December 31, 2010
(In thousands)	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
Assets:
Cash and cash equivalents(1)
Money market funds	$	2,690,752	$	2,690,752	$	—
Deferred compensation plan assets(2)
Restricted cash equivalents	19,817		19,817		—
Equity securities	22,235		22,235		—
Fixed income securities	5,062		—		5,062
Mutual funds	27,122		27,122		—
Total	$	2,764,988	$	2,759,926	$	5,062

(1) Included in Cash and cash equivalents in our consolidated balance sheet

(2) Included in Deferred compensation plan — marketable securities and Deferred compensation plan — restricted cash equivalents in our consolidated balance sheets.

XML

Consolidated Balance Sheets (Unaudited) (USD $) In Thousands	Sep. 30, 2011	Dec. 31, 2010
Current assets:
Cash and cash equivalents	$ 3,177,314	$ 2,765,196
Short-term investments	61,399	0
Total cash, cash equivalents, and short-term investments	3,238,713	2,765,196
Accounts receivable, net	386,842	363,614
Inventories	134,028	146,524
Deferred income taxes — current	80,478	66,839
Deferred compensation plan	68,966	74,236
Other current assets	60,151	114,601
Total current assets	3,969,178	3,531,010
Property and equipment, net	171,100	164,155
Long-term investments	66,780	0
Deferred income taxes — non-current	29,781	37,319
Other assets, net	34,971	27,353
Total assets	4,271,810	3,759,837
Current liabilities:
Accounts payable	54,367	86,061
Accrued liabilities	23,053	23,278
Accrued compensation and related liabilities	79,617	83,773
Deferred compensation plan obligations	68,966	74,236
Deferred income and allowances on sales to distributors	439,826	428,711
Income taxes payable	1,592	428
Credit facility	500,000	0
Total current liabilities	1,167,421	696,487
Income taxes payable - non-current	260,790	231,833
Credit facility	0	500,000
Other non-current liabilities	8,831	7,865
Total liabilities	1,437,042	1,436,185
Commitments and contingencies
Stockholders' equity:
Common stock: $0.001 par value; 1,000,000 shares authorized; outstanding - 320,855 at September 30, 2011 and 319,494 shares at December 31, 2010	321	319
Capital in excess of par value	1,011,865	908,989
Accumulated other comprehensive loss	(190)	0
Retained earnings	1,822,772	1,414,344
Total stockholders' equity	2,834,768	2,323,652
Total liabilities and stockholders' equity	4,271,810	3,759,837
Marketable Securities [Member]
Current assets:
Deferred compensation plan	50,809	54,419
Restricted Cash Equivalents [Member]
Current assets:
Deferred compensation plan	$ 18,157	$ 19,817

XML

Inventories (Details) (USD $) In Thousands	Sep. 30, 2011	Dec. 31, 2010
Raw materials	$ 10,266	$ 9,833
Work in process	79,998	90,627
Finished goods	43,764	46,064
Total inventories	$ 134,028	$ 146,524

XML

Fair Value of Financial Instruments (Details) (USD $) In Thousands	Sep. 30, 2011		Dec. 31, 2010
Deferred Compensation Plan Assets [Abstract]
Deferred compensation plan	$ 68,966		$ 74,236
Assets, Fair Value Disclosure, Recurring	3,298,371
US Treasury Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities, Fair Value Disclosure	6,749
US Treasury Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities, Fair Value Disclosure	0
US Treasury Securities [Member] | Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities, Fair Value Disclosure	6,749
US Government Agencies Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities, Fair Value Disclosure	0
US Government Agencies Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Other Long-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities, Fair Value Disclosure	0
US Government Agencies Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities, Fair Value Disclosure	30,845
US Government Agencies Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Other Long-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities, Fair Value Disclosure	7,496
US Government Agencies Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities, Fair Value Disclosure	30,845
US Government Agencies Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Other Long-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities, Fair Value Disclosure	7,496
Foreign Government Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities, Fair Value Disclosure	0
Foreign Government Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Other Long-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities, Fair Value Disclosure	0
Foreign Government Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities, Fair Value Disclosure	5,394
Foreign Government Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Other Long-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities, Fair Value Disclosure	2,516
Foreign Government Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities, Fair Value Disclosure	5,394
Foreign Government Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Other Long-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities, Fair Value Disclosure	2,516
Municipal Bonds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Other Long-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities, Fair Value Disclosure	0
Municipal Bonds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Other Long-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities, Fair Value Disclosure	752
Municipal Bonds [Member] | Fair Value, Measurements, Recurring [Member] | Other Long-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities, Fair Value Disclosure	752
Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities, Fair Value Disclosure	0
Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Other Long-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities, Fair Value Disclosure	0
Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities, Fair Value Disclosure	18,411
Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Other Long-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities, Fair Value Disclosure	56,016
Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities, Fair Value Disclosure	18,411
Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Other Long-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities, Fair Value Disclosure	56,016
Fair Value, Measurements, Recurring [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	3,101,226
Deferred Compensation Plan Assets [Abstract]
Deferred compensation plan	68,966
Assets, Fair Value Disclosure, Recurring			2,764,988
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	3,065,949	[1]
Deferred Compensation Plan Assets [Abstract]
Deferred compensation plan	64,956
Assets, Fair Value Disclosure, Recurring			2,759,926
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities, Fair Value Disclosure	6,749
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Other Long-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities, Fair Value Disclosure	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Deferred Compensation Plan, Restricted Cash Equivalents [Member]
Deferred Compensation Plan Assets [Abstract]
Deferred compensation plan	18,157	[2]	19,817	[2]
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Deferred Compensation Plan, Marketable Securities [Member] | Equity Securities [Member]
Deferred Compensation Plan Assets [Abstract]
Deferred compensation plan	21,589	[2]	22,235	[2]
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Deferred Compensation Plan, Marketable Securities [Member] | Fixed Income Securities [Member]
Deferred Compensation Plan Assets [Abstract]
Deferred compensation plan		[2]	0	[2]
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Deferred Compensation Plan, Marketable Securities [Member] | Mutual Funds [Member]
Deferred Compensation Plan Assets [Abstract]
Deferred compensation plan	25,210	[2]	27,122	[2]
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	3,051,951		2,690,752
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | US Government Agencies Debt Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Government Debt Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	13,998
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	35,277	[1]
Deferred Compensation Plan Assets [Abstract]
Deferred compensation plan	4,010
Assets, Fair Value Disclosure, Recurring			5,062
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities, Fair Value Disclosure	54,650
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Other Long-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities, Fair Value Disclosure	66,780
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Deferred Compensation Plan, Restricted Cash Equivalents [Member]
Deferred Compensation Plan Assets [Abstract]
Deferred compensation plan	0	[2]	0	[2]
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Deferred Compensation Plan, Marketable Securities [Member] | Equity Securities [Member]
Deferred Compensation Plan Assets [Abstract]
Deferred compensation plan	0	[2]	0	[2]
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Deferred Compensation Plan, Marketable Securities [Member] | Fixed Income Securities [Member]
Deferred Compensation Plan Assets [Abstract]
Deferred compensation plan	4,010	[2]	5,062	[2]
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Deferred Compensation Plan, Marketable Securities [Member] | Mutual Funds [Member]
Deferred Compensation Plan Assets [Abstract]
Deferred compensation plan	0	[2]	0	[2]
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	0		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	19,320
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Government Debt Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	1,016
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	14,941
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities, Fair Value Disclosure	61,399
Fair Value, Measurements, Recurring [Member] | Other Long-term Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities, Fair Value Disclosure	66,780
Fair Value, Measurements, Recurring [Member] | Deferred Compensation Plan, Restricted Cash Equivalents [Member]
Deferred Compensation Plan Assets [Abstract]
Deferred compensation plan	18,157	[2]	19,817	[2]
Fair Value, Measurements, Recurring [Member] | Deferred Compensation Plan, Marketable Securities [Member] | Equity Securities [Member]
Deferred Compensation Plan Assets [Abstract]
Deferred compensation plan	21,589	[2]	22,235	[2]
Fair Value, Measurements, Recurring [Member] | Deferred Compensation Plan, Marketable Securities [Member] | Fixed Income Securities [Member]
Deferred Compensation Plan Assets [Abstract]
Deferred compensation plan	4,010	[2]	5,062	[2]
Fair Value, Measurements, Recurring [Member] | Deferred Compensation Plan, Marketable Securities [Member] | Mutual Funds [Member]
Deferred Compensation Plan Assets [Abstract]
Deferred compensation plan	25,210	[2]	27,122	[2]
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	3,051,951		2,690,752
Fair Value, Measurements, Recurring [Member] | US Government Agencies Debt Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	19,320
Fair Value, Measurements, Recurring [Member] | Foreign Government Debt Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	1,016
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	28,939
Fair Value, Inputs, Level 1 [Member]
Deferred Compensation Plan Assets [Abstract]
Assets, Fair Value Disclosure, Recurring	3,137,654
Fair Value, Inputs, Level 2 [Member]
Deferred Compensation Plan Assets [Abstract]
Assets, Fair Value Disclosure, Recurring	$ 160,717

[1] (1) Included in Cash and cash equivalents in our consolidated balance sheet

[2] (2) Included in Deferred compensation plan — marketable securities and Deferred compensation plan — restricted cash equivalents in our consolidated balance sheets.

XML

Stock-Based Compensation (Valuation Assumptions) (Details) (USD $)	9 Months Ended
	Sep. 30, 2011	Oct. 01, 2010	May 10, 2011
Employee Stock Purchase Plan [Line Items]
Part of fair market value of common stock used to determine purchase price for share under ESPP	85.00%
Number of shares sold to employees under Employee Stock Purchase Plan	402,913	595,861
Price of common stock shares sold under ESPP	$ 22.40	$ 13.81
Increase in shares reserved under ESPP for future issuance			1,000,000
Shares available for future issuance under Employee Stock Purchase Plan	2,800,000

XML

Stock-Based Compensation (Expense Included in the Consolidated of Income) (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Oct. 01, 2010	Sep. 30, 2011	Oct. 01, 2010
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated Share-based Compensation Expense	$ 22,551,000	$ 15,149,000	$ 59,983,000	$ 44,898,000
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	5,907,000	4,330,000	16,210,000	13,045,000
Allocated Share-based Compensation Expense, Net of Tax	16,644,000	10,819,000	43,773,000	31,853,000
Employee Service Share-based Compensation, Unrecognized Compensation Costs on Nonvested Awards	192,200,000		192,200,000
Employee Service Share-based Compensation, Unrecognized Compensation Costs on Nonvested Awards, Weighted Average Period of Recognition			2.7
Cost of Sales [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated Share-based Compensation Expense	450,000	303,000	1,200,000	897,000
Research And Development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated Share-based Compensation Expense	9,923,000	6,666,000	26,393,000	19,721,000
Selling, General and Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated Share-based Compensation Expense	$ 12,178,000	$ 8,180,000	$ 32,390,000	$ 24,280,000

XML

Property and Equipment (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Oct. 01, 2010	Sep. 30, 2011	Oct. 01, 2010	Dec. 31, 2010
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 434,330,000		$ 434,330,000		$ 409,778,000
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	263,230,000		263,230,000		245,623,000
Property, Plant and Equipment, Net	171,100,000		171,100,000		164,155,000
Depreciation and Amortization	7,400,000	6,500,000	21,100,000	19,900,000
Land and Land Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	23,157,000		23,157,000		23,108,000
Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	148,200,000		148,200,000		146,604,000
Equipment and Software [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	227,084,000		227,084,000		206,935,000
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	23,146,000		23,146,000		22,952,000
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	7,423,000		7,423,000		6,773,000
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	5,320,000		5,320,000		3,406,000
Assets Held under Capital Leases [Member]
Property, Plant and Equipment [Line Items]
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	13,800,000		13,800,000		11,300,000
Equipment and Software	$ 1,000,000		$ 1,000,000		$ 5,000,000