Inventories

Inventories are stated at the lower of cost or net realizable value, net of any reserve for excess and obsolete inventory. Work-in-process and finished goods inventories consist of materials, labor and manufacturing overhead. Judgments and estimates are used in determining the likelihood that new goods on hand can be sold to customers or used in rental operations. Historical inventory usage and current revenue trends are considered in estimating both excess and obsolete inventories. If actual product demand and market conditions are less favorable than those projected by management, additional inventory write-downs may be required. The Company uses the first-in, first-out (“FIFO”) method to value its inventories.

The components of inventory as of November 24, 2018 and August 25, 2018 were as follows (in thousands):



	November 24, 2018		August 25, 2018
Raw materials	$	16,419	$	18,508
Work in process	3,707		3,271
Finished goods	71,028		68,397
Total inventories	$	91,154	$	90,176