SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

May 29, 2011

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

NATIONAL SEMICONDUCTOR CORPORATION

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS

(In Millions)

Deducted from Receivables in the Consolidated Balance Sheets

Description		Doubtful Accounts			Returns			Allowances			Total
Balance at May 25, 2008		$	1.3		$	2.1		$	22.0		$	25.4
	Additions charged against revenue		-			5.8			185.4			191.2
	Deductions		(0.2)	(1)		(3.5	)		(194.2	)		(197.9	)
Balance at May 31, 2009			1.1			4.4			13.2			18.7
	Additions charged against revenue		-			2.2			230.1			232.3
	Deductions		(0.7)	(1)		(3.9	)		(216.4	)		(221.0	)
Balance at May 30, 2010			0.4			2.7			26.9			30.0
	Additions charged against revenue		-			3.8			291.6			295.4
	Deductions		(0.1	)(1)		(3.7	)		(284.9	)		(288.7	)
Balance at May 29, 2011		$	0.3		$	2.8		$	33.6		$	36.7

⁽¹⁾

Doubtful accounts written off, less recoveries.

Our customers do not have contractual rights to return product to us except under customary warranty provisions. The majority of returns and allowances are related to the price adjustment programs we have with distributors, none of which involve return of product. As discussed in Note 1 to the Consolidated Financial Statements, we have agreements with our distributors that cover various programs, including pricing adjustments based on resale pricing and volume, price protection for inventory and scrap allowances. The revenue we record for these distribution sales is net of estimated provisions for these programs. Our estimates are based upon historical experience rates by geography and product family, inventory levels in the distribution channel, current economic trends, and other related factors. Our history of actual credits granted in connection with the allowance programs has been consistent with the reserves we have recorded.