Note 3 Inventories

Merchandise inventories, as of December 30, 2017 and December 31, 2016, were valued as follows:



(dollars in thousands)		2017		2016
LIFO	$	221,777	$	223,294
Average cost		57,732		53,489
	$	279,509	$	276,783

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 $78,005,000 and $79,128,000 higher than as reported on the above methods as of December 30, 2017 and December 31, 2016, respectively.