Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2024

Schedule II - Valuation and Qualifying Accounts

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
	Beginning						Balance at End
(In thousands)	of Period		Additions		Deductions (1)		of Period
Allowance for ship and debit credits:
Year ended December 31, 2022	$	41,599	$	241,817	$	(230,232)	$	53,184
Year ended December 31, 2023	$	53,184	$	202,159	$	(219,326)	$	36,017
Year ended December 31, 2024	$	36,017	$	211,185	$	(220,756)	$	26,446

(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.