3. BALANCE SHEET COMPONENTS

Inventories

Inventories consist of the following (in thousands):

	June 30,		December 31,
	2016		2015
Raw materials	$	14,423	$	14,907
Work in process		21,640		21,177
Finished goods		33,856		27,125
Total	$	69,919	$	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):

	June 30,		December 31,
	2016		2015
Deferred compensation plan assets	$	16,217	$	13,985
Prepaid wafer purchase		10,000		-
Other prepaid expense		1,282		1,257
Other		1,199		1,099
Total	$	28,698	$	16,341

Accrued Liabilities

Accrued liabilities consist of the following (in thousands):

	June 30,		December 31,
	2016		2015
Dividends and dividend equivalents	$	8,852	$	8,675
Deferred revenue and customer prepayments		4,916		5,236
Stock rotation reserve		1,641		2,372
Warranty		950		289
Commissions		846		763
Sales rebate		221		268
Income tax payable		124		465
Other		1,305		1,916
Total	$	18,855	$	19,984

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Balance at beginning of period	$	336		$	296		$	289		$	240
Warranty provision for product sales		734			81			819			155
Settlement made		(42	)		(154	)		(42	)		(154	)
Unused warranty provision		(78	)		(18	)		(116	)		(36	)
Balance at end of period	$	950		$	205		$	950		$	205

Other Long-Term Liabilities

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

	June 30,		December 31,
	2016		2015
Deferred compensation plan liabilities	$	15,395	$	14,147
Dividend equivalents		2,539		2,019
Other		128		379
Total	$	18,062	$	16,545