Inventories

Inventories consist of the following:

	November 25, 2017			November 26, 2016
Wholesale finished goods	$	26,145		$	24,392
Work in process		388			369
Raw materials and supplies		11,808			11,343
Retail merchandise		26,173			26,265
Total inventories on first-in, first-out method		64,514			62,369
LIFO adjustment		(8,143	)		(7,804	)
Reserve for excess and obsolete inventory		(1,895	)		(1,350	)
	$	54,476		$	53,215

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

During

2017,

2016

and

2015,

purchases from our

two

largest vendors located in Vietnam and China were

$21,977,

$19,128

and

$25,190

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 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
Additions charged to expense		1,757			475			2,232
Write-offs		(1,200	)		(487	)		(1,687	)
Balance at November 25, 2017	$	1,618		$	277		$	1,895