Inventories, Net

6 Months Ended

Apr. 30, 2021


8			Inventories, Net

Inventories are valued at the lower of cost or net realizable value, with cost determined by the first-in, first-out ("FIFO") and average cost methods for a majority of the company's inventories. All remaining inventories are valued at the lower of cost or market, with cost determined under the last-in, first-out ("LIFO") method. The company records an inventory valuation adjustment for excess, slow-moving, and obsolete inventory that is equal to the excess of the cost of the inventory over the estimated net realizable value or market value for the inventory depending on the inventory costing method. Such inventory valuation adjustment is based on a review and comparison of current inventory levels to planned production, as well as planned and historical sales of the inventory. The inventory valuation adjustment to net realizable value or market value establishes a new cost basis of the inventory that cannot be subsequently reversed.

Inventories, net were as follows:


(Dollars in thousands)	April 30, 2021		May 1, 2020		October 31, 2020
Raw materials and work in process	$	242,093	$	198,807	$	168,759
Finished goods and service parts	468,805		597,431		565,761
Total FIFO and average cost value	710,898		796,238		734,520
Less: adjustment to LIFO value	82,087		82,071		82,087
Total inventories, net	$	628,811	$	714,167	$	652,433