Deferred Income and Allowances on Sales to Distributors (Tables)

6 Months Ended

Jun. 29, 2012

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)	June 29, 2012			December 31, 2011
Deferred revenue on shipment to distributors	$	395,941		$	302,815
Deferred cost of sales on shipment to distributors	(31,594		)	(30,536		)
Deferred income on shipment to distributors	364,347			272,279
Advances to distributors	—			(648		)
Other deferred revenue(1)	9,828			8,245
Total	$	374,175		$	279,876

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

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

The Deferred income and allowances on sales to distributors activity for the six months ended June 29, 2012 and July 1, 2011 was as follows:

	Six Months Ended
(In thousands)	June 29, 2012			July 1, 2011
Balance at beginning of period	$	279,876		$	428,711
Deferred revenue recognized upon shipment to distributors	2,562,024			2,633,755
Deferred cost of sales recognized upon shipment to distributors	(117,311		)	(169,519		)
Decrease in advances to distributors	648			61,812
Revenue recognized upon sell-through to end customers	(493,575		)	(654,099		)
Cost of sales recognized upon sell-through to end customers	114,534			162,787
Earned distributor price concessions (1)	(1,934,713		)	(1,990,272		)
Returns	(37,187		)	(93,286		)
Other	(121		)	899
Balance at end of period	$	374,175		$	380,788

(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.