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.