Supplemental financial information

Inventory consists of the following (in thousands):

	July 29, 2017		January 28, 2017
Wafers and other purchased materials	$	7,922	$	8,595
Work-in-process		2,517		2,780
Finished goods		5,708		6,772
Total inventory	$	16,147	$	18,147

Prepaid expenses and other current assets consist of the following (in thousands):

	July 29, 2017		January 28, 2017
Prepayments for taxes	$	3,539	$	3,421
Prepayments for royalties		765		776
Non-operating receivable		490		955
Other current assets		2,696		2,865
Total prepaid expenses and other current assets	$	7,490	$	8,017

Software, equipment and leasehold improvements, net consist of the following (in thousands, except for years):

	Estimated Useful Lives (Y ears)			July 29, 2017			January 28, 2017
Software	3	-	5	$	51,425		$	49,915
Mask sets		3			22,302			18,209
Equipment		3			8,781			7,719
Office equipment and furniture	3	-	5		8,149			7,857
Leasehold improvements	1	-	5		2,161			2,108
Total					92,818			85,808
Less: Accumulated depreciation and amortization					(72,673	)		(67,285	)
Total software, equipment and leasehold improvements, net				$	20,145		$	18,523

The table above includes, as of

July 29, 2017,

mask sets, net of amortization, of

$2.4

million, which represents our share of the cost incurred in connection with the collaborative arrangement discussed in Note

11.

Software, equipment and leasehold improvement depreciation and amortization expense was

$2.5

million and

$2.7

million for the

three

months ended

July 29, 2017

and

July 30, 2016,

respectively, and was

$5.2

million and

$6.1

million for the

six

months ended

July 29, 2017

and

July 30, 2016,

respectively.

Accrued liabilities consist of the following (in thousands):

	July 29, 2017		January 28, 2017
License fees	$	5,067	$	5,578
Income taxes payable, current portion		998		2,094
Restructuring charges		1,597		-
Rebates		1,576		1,585
Royalties		1,231		1,378
Warranty		696		783
Deferred revenue		466		350
Other accrued liabilities		3,322		1,839
Total accrued liabilities	$	14,953	$	13,607

The following table summarizes activity related to accrued rebates (in thousands):

	Six months ended July 29, 2017
Beginning balance	$	1,585
Charged as a reduction of revenue		1,265
Payments		(1,274	)
Ending balance	$	1,576