Note 8 - Inventories

6 Months Ended

Feb. 27, 2016

8. Inventories

Inventories are stated at the lower of cost or market value, net of any reserve for excess and obsolete inventory. 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 February 27, 2016

and August 29, 2015

were as follows (in thousands):

	February 27, 2016		August 29, 2015
Raw materials	$	13,958	$	17,658
Work in process		3,572		2,415
Finished goods		58,036		60,376
Total inventories	$	75,566	$	80,449