Note 3 Inventories

Merchandise inventories, as of December 29, 2018 and December 30, 2017, were valued as follows:



(dollars in thousands)		2018		2017
LIFO	$	211,911	$	221,777
Average cost		68,845		57,732
	$	280,756	$	279,509

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 $76,517,000 and $78,005,000 higher than as reported on the above methods as of December 29, 2018 and December 30, 2017, respectively. During 2018, the Company had certain decrements in its LIFO pools, which had an insignificant impact on the cost of sales.