Deferred Income and Allowances on Sales to Distributors (Tables)

3 Months Ended

Mar. 28, 2014

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)	March 28, 2014			December 31, 2013
Deferred revenue on shipment to distributors	$	439,994		$	512,872
Deferred cost of sales on shipment to distributors	(32,828		)	(33,809		)
Deferred income on shipment to distributors	407,166			479,063
Other deferred revenue(1)	7,353			8,683
Total	$	414,519		$	487,746

(1) Principally represents revenue deferred on our maintenance contracts, 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:

	Three Months Ended
(In thousands)	March 28, 2014			March 29, 2013
Balance at beginning of period	$	487,746		$	345,993
Deferred revenue recognized upon shipment to distributors	1,354,597			1,535,965
Deferred cost of sales recognized upon shipment to distributors	(66,527		)	(58,008		)
Revenue recognized upon sell-through to end customers	(277,671		)	(250,048		)
Cost of sales recognized upon sell-through to end customers	66,733			59,479
Earned distributor price concessions (1)	(1,137,745		)	(1,226,899		)
Returns	(11,163		)	(23,244		)
Other	(1,451		)	(596		)
Balance at end of period	$	414,519		$	382,642

(1) Average aggregate price concessions typically range from 70% to 85% 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.