BALANCE SHEET COMPONENTS

Inventories

Inventories consist of the following (in thousands):

	December 31,
	2018		2017
Raw materials	$	43,017	$	20,573
Work in process		38,674		40,030
Finished goods		54,693		38,678
Total	$	136,384	$	99,281

Other Current Assets

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

	December 31,
	2018		2017
Prepaid wafer purchase (1)	$	-	$	6,217
Prepaid wafer refund receivable (1)		4,297		-
Other prepaid expense		3,425		2,742
Assets for product returns (2)		1,602		-
Interest receivable		1,441		1,352
Value-added tax receivable		423		1,235
Other		743		1,216
Total	$	11,931	$	12,762

(

) In

December 2018,

a supplier terminated a prepaid wafer purchase agreement with the Company and agreed to refund the Company the remaining wafer purchase prepayment of

$4.3

million, which was recorded as a receivable as of

December 31, 2018.

(

) 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.

Property and Equipment, Net

Property and equipment, net, consist of the following (in thousands):

	December 31,
	2018			2017
Production equipment and software	$	120,645		$	110,971
Buildings and improvements		100,135			100,990
Land		16,724			16,883
Transportation equipment		12,948			11,443
Leasehold improvements		4,755			3,321
Furniture and fixtures		4,341			3,641
Property and equipment, gross		259,548			247,249
Less: accumulated depreciation and amortization		(109,547	)		(102,613	)
Total	$	150,001		$	144,636

Depreciation and amortization expense was

$11.4

million,

$14.0

million and

$12.6

million for the years ended

December 31, 2018,

2017

and

2016,

respectively.

Other Long-Term Assets

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

	December 31,
	2018		2017
Deferred compensation plan assets	$	31,970	$	28,080
Prepaid expense		2,713		897
Other		1,185		1,091
Total	$	35,868	$	30,068

Accrued Liabilities

Accrued liabilities consist of the following (in thousands):

	December 31,
	2018		2017
Dividends and dividend equivalents	$	15,044	$	9,248
Income tax payable		7,018		2,861
Stock rotation and sales returns		5,363		2,647
Warranty		4,564		2,416
Customer prepayments		2,520		4,742
Commissions		1,369		938
Sales rebate		236		1,036
Deferred income		-		1,845
Other		2,848		1,774
Total	$	38,962	$	27,507

Other Long-Term Liabilities

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

	December 31,
	2018		2017
Deferred compensation plan liabilities	$	32,283	$	28,087
Dividend equivalents		6,145		4,881
Other		97		56
Total	$	38,525	$	33,024