Inventories, Net

3 Months Ended

Jan. 30, 2026


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.

On December 8, 2025, with the acquisition of Tornado Infrastructure Equipment, the company acquired $36.7 million of inventory, based on preliminary fair value purchase accounting adjustments. For additional information on the company's acquisition of Tornado Infrastructure Equipment, refer to Note 2, Acquisitions and Divestitures.

Inventories, net were as follows:


(Dollars in millions)	January 30, 2026		January 31, 2025		October 31, 2025
Raw materials and work in process	$	396.5	$	397.6	$	353.1
Finished goods and service parts	804.9		918.9		785.4
Total FIFO and average cost value	1,201.4		1,316.5		1,138.5
Excess of FIFO over LIFO cost	(217.7)		(173.4)		(217.7)
Total inventories, net	$	983.7	$	1,143.1	$	920.8