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 a majority of the company's inventories and the 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:



(Dollars in thousands)	May 4, 2018		May 5, 2017		October 31, 2017
Raw materials and work in process	$	112,435	$	96,723	$	100,077
Finished goods and service parts	349,167		303,211		295,716
Total FIFO value	461,602		399,934		395,793
Less: adjustment to LIFO value	66,801		58,358		66,801
Total inventories, net	$	394,801	$	341,576	$	328,992