Inventories, Net

3 Months Ended

Jan. 28, 2022


7			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. As needed, 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.

On January 13, 2022, with the acquisition of Intimidator, the company acquired $36.0 million of inventory, based on preliminary fair value purchase accounting adjustments. For additional information on the company's acquisition of Intimidator, refer to Note 2, Business Combination.

Inventories, net were as follows:


(Dollars in thousands)	January 28, 2022		January 29, 2021		October 31, 2021
Raw materials and work in process	$	383,285	$	226,979	$	335,325
Finished goods and service parts	584,274		530,415		538,332
Total FIFO and average cost value	967,559		757,394		873,657
Less: adjustment to LIFO value	135,487		82,087		135,487
Total inventories, net	$	832,072	$	675,307	$	738,170