Note 4 — 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:

	July 29,		July 31,		October 31,
(Dollars in thousands)	2016		2015		2015
Raw materials and work in process	$	88,581	$	102,580	$	107,086
Finished goods and service parts	302,573		315,110		291,468

Total FIFO value	391,154		417,690		398,554
Less: adjustment to LIFO value	64,040		67,496		64,040

Total inventories, net	$	327,114	$	350,194	$	334,514