ALTERA CORP | 2013 | FY | 3


The Deferred income and allowances on sales to distributor activity was as follows:
(In thousands)
 
2013
 
2012
 
 

 

Balance at beginning of period
 
$
345,993

 
$
279,876

Deferred revenue recognized upon shipment to distributors
 
5,870,096

 
5,517,540

Deferred costs of sales recognized upon shipments to distributors
 
(269,969
)
 
(238,256
)
Revenue recognized upon sell-through to end customers
 
(1,055,137
)
 
(1,023,465
)
Costs of sales recognized upon sell-through to end customers
 
260,326

 
237,703

Earned distributor price concessions (1)
 
(4,575,430
)
 
(4,345,473
)
Returns
 
(88,058
)
 
(82,577
)
(Decrease)/ increase in other deferred revenue
 
(75
)
 
645

Balance at end of period
 
$
487,746

 
$
345,993

(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 the timing of shipments to distributors.


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