Inventories, net

6 Months Ended

Jun. 30, 2022

Inventory Disclosure [Abstract]

Inventories, net

Note 4 – Inventories, net

Inventories, net consisted of the following:

	June 30, 2022		December 31, 2021		June 30, 2021
Finished goods	$	633,023	$	393,609	$	384,949
Raw materials		23,581		25,624		22,274
Work in process		20,127		24,062		18,905
	$	676,731	$	443,295	$	426,128

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, 2022, the Company purchased $48.5 million and $62.4 million. As of June 30, 2022, approximately $64.7 million of purchases are reflected in finished goods inventory with accounts payable of $52.6 million related to such transactions.