Inventories, net

6 Months Ended

Jun. 30, 2021

Inventory Disclosure [Abstract]

Inventories, net

Note 6 – Inventories, net

Inventories, net consisted of the following:

	June 30, 2021		December 31, 2020		June 30, 2020
Finished goods	$	384,949	$	367,275	$	587,327
Raw materials		22,274		27,111		30,958
Work in process		18,905		17,899		16,729
	$	426,128	$	412,285	$	635,014

Inventories, net are valued at the lower of cost or net realizable value. The Company principally determines the cost of inventory using the weighted average method.

The Company estimates retail inventory shrinkage for the period between physical inventory dates on a store-by-store basis. Inventory shrinkage estimates can be affected by changes in merchandise mix and changes in actual shortage trends. The shrinkage rate from the most recent physical inventory, in combination with historical experience, is the basis for estimating shrinkage.

In the ordinary course of business the Company is involved in transactions with certain of its equity-method investees, primarily for the purchase of finished goods inventory. For the three and six months ended June 30, 2021, the Company purchased $22.6 million and $25.5 million, respectively. Substantially all of these purchases are reflected in finished goods inventory as of June 30, 2021. As of June 30, 2021, the Company had accounts payable of $19.7 million related to such transactions.