Deferred Income and Allowances on Sales to Distributors (Tables)

9 Months Ended

Sep. 27, 2013

Deferred Income And Allowances On Sales To Distributors [Abstract]

Schedule of Deferred Income and Allowances on Sales to Distributors

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

(In thousands)	September 27, 2013			December 31, 2012
Deferred revenue on shipment to distributors	$	461,748		$	363,641
Deferred cost of sales on shipment to distributors	(29,449		)	(28,101		)
Deferred income on shipment to distributors	432,299			335,540
Other deferred revenue(1)	12,406			10,453
Total	$	444,705		$	345,993

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

Schedule of Deferred Income and Allowances on Sales to Distributors Activity

The Deferred income and allowances on sales to distributors activity was as follows:

	Nine Months Ended
(In thousands)	September 27, 2013			September 28, 2012
Balance at beginning of period	$	345,993		$	279,876
Deferred revenue recognized upon shipment to distributors	4,343,526			4,006,945
Deferred cost of sales recognized upon shipment to distributors	(194,429		)	(181,660		)
Revenue recognized upon sell-through to end customers	(776,649		)	(763,141		)
Cost of sales recognized upon sell-through to end customers	190,124			176,455
Earned distributor price concessions (1)	(3,410,814		)	(3,057,927		)
Returns	(57,532		)	(61,531		)
Other	4,486			1,334
Balance at end of period	$	444,705		$	400,351

(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.