Deferred Income and Allowances on Sales to Distributors (Tables)

9 Months Ended

Sep. 25, 2015

Deferred Revenue Disclosure [Abstract]

Schedule of Deferred Income and Allowances on Sales to Distributors

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

(In thousands)	September 25, 2015			December 31, 2014
Deferred revenue on shipment to distributors	$	469,722		$	369,560
Deferred cost of sales on shipment to distributors	(35,672		)	(32,172		)
Deferred income on shipment to distributors	434,050			337,388
Other deferred revenue(1)	5,454			6,780
Total	$	439,504		$	344,168

(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:

	Nine Months Ended
(In thousands)	September 25, 2015			September 26, 2014
Balance at beginning of period	$	344,168		$	487,746
Deferred revenue recognized upon shipment to distributors	4,735,666			4,421,484
Deferred cost of sales recognized upon shipment to distributors	(219,307		)	(212,856		)
Revenue recognized upon sell-through to end customers	(801,638		)	(852,256		)
Cost of sales recognized upon sell-through to end customers	214,067			208,318
Earned distributor price concessions (1)	(3,797,729		)	(3,602,558		)
Returns	(34,494		)	(50,615		)
Other	(1,229		)	(2,261		)
Balance at end of period	$	439,504		$	397,002

(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.