Inventories, Net

9 Months Ended

Aug. 04, 2023


7			Inventories, Net

The company uses a combination of inventory valuation methods. 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 certain 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.

Inventories, net were as follows:


(Dollars in thousands)	August 4, 2023		July 29, 2022		October 31, 2022
Raw materials and work in process	$	435,070	$	402,719	$	482,884
Finished goods and service parts	847,494		672,042		738,097
Total FIFO and average cost value	1,282,564		1,074,761		1,220,981
Less: adjustment to LIFO value	169,872		135,487		169,872
Total inventories, net	$	1,112,692	$	939,274	$	1,051,109