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Windsock

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Windsock

Re: SmallPops post# 18366

Friday, 11/21/2003 12:21:40 PM

Friday, November 21, 2003 12:21:40 PM

Post# of 97796
When a processor is shipped to an OEM it is booked as sold If the processor is sent to a Disti, the revenue recognition is deferred until the Disti resells the part.

The revenue for Disti sales is shown on the Balance Sheet as a liability under "Deferred income on sales to distributors". It is just like cash in the bank that can not be "withdrawn" until the disti resells the product.

Both Intel and AMD follow this accounting practice.



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