INVENTORIES

Inventories are stated at the lower of cost (first-in, first-out method) or net realizable value. System shipments to Japanese customers, for which title does not transfer until customer acceptance, are classified as finished goods inventory and carried at cost until title transfers. Inventories consist of the following:



	December 24, 2017		June 25, 2017
	(in thousands)
Raw materials	$	820,157	$	625,600
Work-in-process	263,910		213,066
Finished goods	423,368		394,250
	$	1,507,435	$	1,232,916