Inventories

Inventories are valued at the lower of cost or net realizable value, with cost determined by the last-in, first-out (“LIFO”) method for most inventories and first-in, first-out (“FIFO”) method 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 the planned production, as well as planned and historical sales of the inventory.

Inventories were as follows:

	August 1,		August 2,		October 31,
(Dollars in thousands)	2014		2013		2013
Raw materials and work in process	$	88,140	$	80,176	$	87,668
Finished goods and service parts	270,996		242,560		217,796
Total FIFO value	359,136		322,736		305,464
Less: adjustment to LIFO value	65,375		63,807		65,375
Total	$	293,761	$	258,929	$	240,089