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This excerpt taken from the SNWL 10-K filed Mar 14, 2007. Inventories
Inventories are stated at the lower of standard cost (which
approximates cost determined on a
first-in,
first-out basis) or market. The Company writes-down the value of
inventories for estimated excess and obsolete inventories based
upon assumptions about future demand and market conditions.
Inventories consist primarily of finished goods. Inventory
reserves, once established, are only reversed upon sale or
disposition of related inventory.
Table of Contents
SONICWALL,
INC.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
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