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 May 27, 2017 and August 27, 2016 were as follows (in thousands):



	May 27, 2017		August 27, 2016
Raw materials	$	16,109	$	16,826
Work in process	3,398		2,275
Finished goods	52,605		59,786
Total inventories	$	72,112	$	78,887