Inventories

6 Months Ended

Feb. 29, 2020

Inventory Disclosure [Abstract]

Inventories

9. 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 February 29, 2020 and August 31, 2019 were as follows (in thousands):

	February 29, 2020		August 31, 2019
Raw materials	$	18,102	$	23,000
Work in process		2,599		2,864
Finished goods		74,174		75,052
Total inventories	$	94,875	$	100,916