. BALANCE SHEET COMPONENTS

Inventories

Inventories consist of the following (in thousands):

	June 30,		December 31,
	2018		2017
Raw materials	$	34,281	$	20,573
Work in process		50,446		40,030
Finished goods		44,182		38,678
Total	$	128,909	$	99,281

Other Current Assets

Other current assets consist of the following (in thousands):

	June 30,		December 31,
	2018		2017
Prepaid wafer purchase	$	6,217	$	6,217
Other prepaid expense		3,172		2,742
Interest receivable		1,466		1,352
Value-added tax receivable		1,427		1,235
Assets for product returns		1,047		-
Other		645		1,216
Total	$	13,974	$	12,762

Under Topic

606,

“assets for product returns” primarily represent the carrying value of inventory the Company expects to recover from customers related to stock rotation returns. Prior to the adoption of Topic

606,

such amounts were netted against the stock rotation reserve within current accrued liabilities.

Other Long-Term Assets

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

	June 30,		December 31,
	2018		2017
Deferred compensation plan assets	$	29,224	$	28,080
Prepaid expense		816		897
Other		1,295		1,091
Total	$	31,335	$	30,068

Accrued Liabilities

Accrued liabilities consist of the following (in thousands):

	June 30,		December 31,
	2018		2017
Dividends and dividend equivalents	$	14,266	$	9,248
Warranty		3,951		2,416
Stock rotation and sales returns		3,580		2,647
Customer prepayments		3,237		4,742
Income tax payable		3,376		2,861
Commissions		1,112		938
Sales rebate		819		1,036
Deferred income		-		1,845
Other		2,692		1,774
Total	$	33,033	$	27,507

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Balance at beginning of period	$	3,740		$	1,346		$	2,416		$	1,030
Warranty provision for product sales		335			1,512			1,814			2,303
Settlements made		(9	)		-			(64	)		(296	)
Unused warranty provision		(115	)		(231	)		(215	)		(410	)
Balance at end of period	$	3,951		$	2,627		$	3,951		$	2,627

Other Long-Term Liabilities

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

	June 30,		December 31,
	2018		2017
Deferred compensation plan liabilities	$	29,197	$	28,087
Dividend equivalents		5,595		4,881
Other		79		56
Total	$	34,871	$	33,024