Inventories

The components of inventory as of December 28, 2013 and June 29, 2013 are as follows:



	December 28, 2013		June 29, 2013
Raw Materials	$	9,772	$	11,583
Work in Process	2,763		1,846
Finished Goods	29,370		44,156
New Inventories	41,905		57,585
Merchandise In Service	115,567		107,421
Total Inventories	$	157,472	$	165,006

We review the estimated useful lives of our in-service inventory assets on a periodic basis or when trends in our business indicate that the useful lives for certain products might have changed. During the fourth quarter of fiscal year 2013, we completed an analysis of certain in-service inventory assets which resulted in the estimated useful lives for these assets being extended to better reflect the estimated periods in which the assets will remain in service. The effect of the change in estimate increased income from operations by $1,803 and $4,076, net income by $1,125 and $2,650 and basic and diluted earnings per common share by $0.06 and $0.13 for the three and six months ended December 28, 2013, respectively. In addition, the "Inventories, net" line item of the Consolidated Condensed Balance Sheets increased by approximately $4,076 during the six months ended December 28, 2013 and $6,681 on a cumulative basis since the change occurred in the fourth quarter of fiscal 2013.

The reduction in finished goods inventory is primarily related to the agreement to sell our Direct Sale Program Business, which resulted in the reclassification of $15,201 of finished goods inventory to assets held for sale within the "Other current assets" line item of the Condensed Consolidated Balance Sheets. See Note 18, "Discontinued Operations" of the Notes to the Condensed Consolidated Financial Statements for details regarding the sale.