Inventories

9 Months Ended

Jul. 31, 2020


8			Inventories

Inventories are valued at the lower of cost or net realizable value, with cost determined by the first-in, first-out ("FIFO") method for a majority of the company's inventories and the last-in, first-out ("LIFO") and average cost methods 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 March 2, 2020, with the acquisition of Venture Products, the company acquired $23.0 million of inventory based on fair value purchase accounting adjustments. For additional information on the company's acquisition of Venture Products, refer to Note 2, Business Combinations.

Inventories were as follows:


(Dollars in thousands)	July 31, 2020		August 2, 2019		October 31, 2019
Raw materials and work in process	$	197,439	$	174,348	$	179,967
Finished goods and service parts	540,840		518,465		553,767
Total FIFO value	738,279		692,813		733,734
Less: adjustment to LIFO value	82,071		72,201		82,071
Total inventories, net	$	656,208	$	620,612	$	651,663