Inventories

6 Months Ended

May 03, 2019

Inventories are valued at the lower of cost or net realizable value, with cost determined by the last-in, first-out ("LIFO") method for a majority of the company's inventories and the first-in, first-out ("FIFO") method for all other inventories. The company establishes a reserve for excess, slow-moving, and obsolete inventory that is equal to the difference between the cost and estimated net realizable value for that inventory. These reserves are based on a review and comparison of current inventory levels to planned production, as well as planned and historical sales of the inventory.

On April 1, 2019, with the acquisition of CMW, the company acquired $243.7 million of inventory, based on preliminary fair value purchase accounting adjustments. For additional information on the company's acquisition of CMW, refer to Note 2, Business Combinations.

Inventories were as follows:



(Dollars in thousands)	May 3, 2019		May 4, 2018		October 31, 2018
Raw materials and work in process	$	186,065	$	112,435	$	115,280
Finished goods and service parts	497,467		349,167		315,179
Total FIFO value	683,532		461,602		430,459
Less: adjustment to LIFO value	72,201		66,801		72,200
Total inventories, net	$	611,331	$	394,801	$	358,259