12.	Significant Concentrations

Significant customer

Honeywell International, Inc. and affiliated entities (“Honeywell”) had revenue and accounts receivable as follows (in thousands, except percentages):

	Year Ended December 31,
	2017			2016
Honeywell revenue	$	12,278		$	13,696
As a percentage of total revenue		15	%		14	%
	December 31,
	2017			2016
Honeywell accounts receivable	$	8,659		$	7,075
As a percentage of total accounts receivable		48	%		33	%

No other customer accounted for 10% or more of total revenue in 2017 or 2016 or 10% or more of total accounts receivable at December 31, 2017 or 2016.

Significant supplier

We have ODAs with Microsoft which enable us to sell Microsoft Windows Embedded operating systems on a non-exclusive basis to our customers in the United States, Canada, Argentina, Brazil, Chile, Columbia, Mexico, Peru, Puerto Rico, the Caribbean (excluding Cuba), the European Union, the European Free Trade Association, Turkey and Africa, which expire on June 30, 2018. We also have ODAs with Microsoft which allow us to sell Microsoft Windows Mobile operating systems in the Americas (excluding Cuba), Japan, Taiwan, Europe, the Middle East, and Africa, which also expire on June 30, 2018.

Software sales under these agreements constitute a significant portion of our software revenue and total revenue. These agreements are typically renewed bi-annually, annually or semi-annually; however, there is no automatic renewal provision in any of these agreements. Further, these agreements can be terminated unilaterally by Microsoft at any time.

Microsoft currently offers a rebate program to sell Microsoft Windows Embedded operating systems pursuant to which we earn money for achieving certain predefined objectives. In accordance with Microsoft rebate program rules, we allocate 30% of rebates to reduce cost of sales, with the remaining 70% to offset qualified marketing expenses in the period the expenditures are incurred.

Under this rebate program, we recorded rebate credits as follows (in thousands):

	Year Ended December 31,
	2017		2016
Reductions to cost of revenue	$	499	$	345
Reductions to marketing expense	$	658	$	1,085

There was a balance of approximately $411,000 in outstanding rebate credits for which we qualified as of December 31, 2017. If qualified program expenditures are made, these will be accounted for as reductions in marketing expense in the period in which such expenditures are made.

Microsoft implemented significant pricing changes for its embedded products effective January 1, 2016, including ending its design registration pricing discounts, terminating its OVRP and changing the aggregate volume price structure and product royalties for existing embedded Windows products. In December 2015, Microsoft granted extensions for certain of the OVRPs through December 31, 2016, at which time the program ended.