Inventories

Inventories consist of the following:

	November 26, 2016			November 28, 2015
Wholesale finished goods	$	24,392		$	31,253
Work in process		369			318
Raw materials and supplies		11,343			9,793
Retail merchandise		26,265			27,680
Total inventories on first-in, first-out method		62,369			69,044
LIFO adjustment		(7,804	)		(7,751	)
Reserve for excess and obsolete inventory		(1,350	)		(1,397	)
	$	53,215		$	59,896

We source a significant amount of our wholesale product from other countries. During

2016,

2015

and

2014,

purchases from our

two

largest vendors located in Vietnam and China were

$19,128,

$25,190

and

$26,707

respectively.

We estimate an inventory reserve for excess quantities and obsolete items based on specific identification and historical write - offs, taking into account future demand, market conditions and the respective valuations at LIFO. The need for these reserves is primarily driven by the normal product life cycle. As products mature and sales volumes decline, we rationalize our product offerings to respond to consumer tastes and keep our product lines fresh. If actual demand or market conditions in the future are less favorable than those estimated, additional inventory write - downs

may

be required. In determining reserves, we calculate separate reserves on our wholesale and retail inventories. Our wholesale inventories

tend

to carry the majority of the reserves for excess quantities and obsolete inventory due to the nature of our distribution model. These wholesale reserves primarily represent design and style obsolescence. Typically, product is not shipped to our retail warehouses until a consumer has ordered and paid a deposit for the product. We do not typically hold retail inventory for stock purposes. Consequently, floor sample inventory and inventory for delivery to customers account for the majority of our inventory at retail. Retail reserves are based on accessory and clearance floor sample inventory in our stores and any inventory that is not associated with a specific customer order in our retail warehouses.

Activity in the reserves for excess quantities and obsolete inventory by segment are as follows:

	Wholesale Segment			Retail Segment			Total
Balance at November 29, 2014	$	1,060		$	352		$	1,412
Additions charged to expense		2,442			430			2,872
Write-offs		(2,415	)		(472	)		(2,887	)
Balance at November 28, 2015		1,087			310			1,397
Additions charged to expense		1,994			475			2,469
Write-offs		(2,020	)		(496	)		(2,516	)
Balance at November 26, 2016	$	1,061		$	289		$	1,350