Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2021

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule II - Valuation and Qualifying Accounts

Schedule II

Valuation and Qualifying Accounts

The Company maintains an allowance for the distributors’ ship and debit credits relating to the sell-through of the Company’s products. This reserve is established using the Company’s historical ship and debit amounts and levels of inventory in the distributor channels.

The following is a summary of the activity in the allowance for ship and debit credits:

	Balance at		Charged to
	Beginning of		Costs and				Balance at End
(In thousands)	Period		Expenses		Deductions (1)		of Period
Allowance for ship and debit credits:
Year ended December 31, 2019	$	40,118	$	230,278	$	(236,921)	$	33,475
Year ended December 31, 2020	$	33,475	$	257,765	$	(264,805)	$	26,435
Year ended December 31, 2021	$	26,435	$	311,443	$	(296,279)	$	41,599

(1) Deductions relate to ship and debit credits issued which adjust the sales price from the standard distribution price to the pre-approved lower price. Refer to Note 2, Significant Accounting Policies and Recent Accounting Pronouncements, for the Company’s revenue recognition policy, including the Company’s accounting for ship and debit claims.