3. BALANCE SHEET COMPONENTS

Inventories

Inventories consist of the following (in thousands):

	September 30,		December 31,
	2016		2015
Raw materials	$	13,521	$	14,907
Work in process		24,850		21,177
Finished goods		32,321		27,125
Total	$	70,692	$	63,209

When the Company records a write-down on inventory, it establishes a new, lower cost basis for that inventory, and subsequent changes in facts and circumstances will not result in the restoration or increase in that newly established cost basis.

Other Long-Term Assets

Other long-term assets consist of the following (in thousands):

	September 30,		December 31,
	2016		2015
Deferred compensation plan assets	$	17,396	$	13,985
Prepaid wafer purchase		10,000		-
Other prepaid expense		1,269		1,257
Other		1,172		1,099
Total	$	29,837	$	16,341

Accrued Liabilities

Accrued liabilities consist of the following (in thousands):

	September 30,		December 31,
	2016		2015
Dividends and dividend equivalents	$	9,043	$	8,675
Deferred revenue and customer prepayments		5,571		5,236
Stock rotation reserve		2,991		2,372
Warranty		991		289
Commissions		990		763
Sales rebate		395		268
Income tax payable		418		465
Other		1,474		1,916
Total	$	21,873	$	19,984

A roll-forward of the warranty reserve is as follows (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Balance at beginning of period	$	950		$	205		$	289		$	240
Warranty provision for product sales		107			91			926			246
Settlement made		(25	)		-			(67	)		(153	)
Unused warranty provision		(41	)		(28	)		(157	)		(65	)
Balance at end of period	$	991		$	268		$	991		$	268

Other Long-Term Liabilities

Other long-term liabilities consist of the following (in thousands):

	September 30,		December 31,
	2016		2015
Deferred compensation plan liabilities	$	16,422	$	14,147
Dividend equivalents		2,915		2,019
Other		111		379
Total	$	19,448	$	16,545