Inventories

The components of inventories as of March 29, 2014 and June 29, 2013 are as follows:



	March 29, 2014		June 29, 2013
Raw Materials	$	9,635	$	11,583
Work in Process	1,280		1,846
Finished Goods	29,604		44,156
New Inventories	40,519		57,585
Merchandise In Service	116,529		107,421
Total Inventories	$	157,048	$	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 $1,270 and $5,346, net income by $806 and $3,366 and basic and diluted earnings per common share by $0.04 and $0.17 for the three and nine months ended March 29, 2014, respectively. In addition, the "Inventories, net" line item of the Condensed Consolidated Balance Sheets increased by approximately $5,346 during the nine months ended March 29, 2014 and $7,951 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 sale of our Direct Sale Program Business. See Note 18, "Discontinued Operations" of the Notes to the Condensed Consolidated Financial Statements for details regarding the sale.