INVENTORIES

Inventories are stated at the lower of cost (on a first-in, first-out basis) or market value. The stated cost is comprised of direct materials, labor, and overhead. The major classes of inventories, net of applicable lower of cost or market write-downs, were as follows (in thousands):



	March 29, 2014		September 28, 2013
Raw materials	$	328,784	$	288,559
Work-in-process	71,613		57,883
Finished goods	61,812		57,578
	$	462,209	$	404,020

Per contractual terms, customer deposits are received by the Company to offset obsolete and excess inventory risks. The total amount of customer deposits related to inventory and included within current liabilities on the accompanying Condensed Consolidated Balance Sheets as of March 29, 2014 and September 28, 2013 was $40.3 million and $51.6 million, respectively. The decrease in the customer deposits balance is primarily related to the return of $11.0 million of inventory-related deposits to Juniper Networks, Inc. ("Juniper"), a former customer, in the first fiscal quarter of 2014.