INVENTORIES

Inventories are stated at the lower of cost (first-in, first-out method) or net realizable value. System shipments to customers in Japan, 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:



	March 25, 2018		June 25, 2017
	(in thousands)
Raw materials	$	834,298	$	625,600
Work-in-process	282,833		213,066
Finished goods	575,997		394,250
	$	1,693,128	$	1,232,916