Accounts Receivable, Net and Significant Customers

12 Months Ended

Dec. 31, 2014

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Accounts Receivable, Net and Significant Customers

Accounts Receivable, Net and Significant Customers

Account receivable, net consisted of the following:

(In thousands)	December 31, 2014			December 31, 2013
Gross accounts receivable	$	380,442		$	483,628
Allowance for doubtful accounts	(500		)	(500		)
Allowance for sales returns	(1,978		)	(96		)
Accounts receivable, net	$	377,964		$	483,032

We determine the allowance requirement, on an account by account basis, by calculating an estimated financial risk for each OEM customer or distributor and taking into account other available information that indicates that receivable balances may not be fully collectible. Account balances are charged off against the allowance when it is probable that the receivable will not be recovered. The allowance for sales returns is recorded for known pending OEM customer returns.

We sell our products to OEMs and to electronic components distributors who resell these products to OEMs, or their contract manufacturers. Net sales by customer type and net sales to significant customers were as follows:

(Percentage of Net Sales)	2014		2013		2012
Sales to distributors	73	%	77	%	71	%
Sales to OEMs	27	%	23	%	29	%
	100	%	100	%	100	%
Significant Distributors(1):
Arrow Electronics, Inc. (“Arrow”)	39	%	41	%	40	%
Macnica, Inc. (“Macnica”)	22	%	23	%	21	%

(1) Except as presented above, no other distributor accounted for greater than 10% of our net sales for 2014, 2013 or 2012.

One OEM ("Huawei Technologies Co., Ltd.") accounted for 10% of our net sales in 2014, 11% in 2013, and 16% in 2012. Another OEM ("LM Ericsson Telephone Company") accounted for 10% of our net sales in 2014. No other individual OEM accounted for more than 10% of our net sales in 2014, 2013, or 2012.

As of December 31, 2014, accounts receivable from Arrow and Macnica individually accounted for approximately 34% and 47%, respectively, of our total accounts receivable. As of December 31, 2013, accounts receivable from Arrow and Macnica individually accounted for approximately 26% and 55%, respectively, of our total accounts receivable. No other distributor or OEM accounted for more than 10% of our accounts receivable as of December 31, 2014 or 2013.