Inventories, Net

12 Months Ended

Dec. 31, 2021

Inventory is stated at the lower of cost or net realizable value, cost being determined under the moving-average method, first-in, first-out (FIFO) basis, or specific identification. Inventory costs include the net acquisition cost from the factory, the cost of transporting the product to the Company’s warehouses, and product assembly costs. Reserves for slow-moving and obsolete inventories are provided on historical experience, inventory aging, and product demand. The Company evaluates the adequacy of these reserves and makes adjustments to reserves, as required.

As of December 31, 2021, and December 25, 2020, the Company’s inventory consisted of the following:


	2021		2020
Finished goods	$	210,540	$	155,618
Raw materials	10,454		11,340
Work in process	548		591
Reserve for obsolete and slow-moving inventory	(10,578)		(10,450)
Total inventories, net	$	210,964	$	157,099

The Company recorded prepaid deposits on future inventory purchases of $15,220 in prepaid expenses and other current assets as of December 31, 2021.

Changes in the Company’s reserve for obsolete and slow-moving inventory as of December 31, 2021, December 25, 2020, and December 27, 2019 consisted of the following:


Inventory Reserve - December 28, 2018	$	878
Valuation allowance	3,740
Write-offs	(1,457)
Inventory reserves acquired	3,428
Inventory Reserve - December 27, 2019	$	6,589
Valuation allowance	4,579
Write-offs	(718)
Inventory Reserve – December 25, 2020	$	10,450
Valuation allowance	4,578
Write-offs	(4,450)
Inventory Reserve – December 31, 2021	$	10,578