7. Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist of trade receivables, derivatives and the capped calls.

Accounts receivable from significant customers, those representing 10% or more of total accounts receivable aggregated approximately 39% of our accounts receivable balance from two customers as of December 29, 2013 and approximately 25% of our accounts receivable balance from one customer as of December 30, 2012.

Concentration of credit risk with respect to revenues exists because revenues from one distributor, Fujitsu Semiconductor Limited (FSL) and its subsidiaries, accounted for approximately 39%, 33% and 29% of the Company’s total net sales for fiscal 2013, fiscal 2012 and fiscal 2011. The increase of sales through FSL to 39% of the total net sales in fiscal 2013 related to the MCA business for which FSL is the sole distributor in Japan.

The Company mitigates its credit risk in relation to derivatives and the capped calls by using major financial institutions as counterparties.