Note 3 Inventories

Merchandise inventories, as of December 26, 2015 and December 27, 2014, were valued as follows:



(dollars in thousands)		2015		2014
LIFO	$	181,321	$	193,621
Average cost		48,078		46,020
	$	229,399	$	239,641

Management believes the use of the LIFO method for valuing certain inventories represents the most appropriate matching of costs and revenues in the Company’s circumstances. If all inventories were valued on the average cost method, which approximates current cost, total inventories would have been $81,347,000 and $79,933,000 higher than as reported on the above methods as of December 26, 2015 and December 27, 2014, respectively. During 2015, the Company had certain decrements in its LIFO pools, which had an insignificant impact on the cost of sales.