6. INVENTORIES

At December 31, 2011 and 2010, inventories consisted of:


	2011		2010
	(Dollars in thousands)
Finished shoes	$	79,648	$	71,710
LIFO reserve		(16,959)		(15,599	)
Total inventories	$	62,689	$	56,111

Finished shoes included inventory in-transit of $13.2 million and $12.9 million as of December 31, 2011 and 2010, respectively. At December 31, 2011, approximately 75% of the Company’s inventories were valued by the LIFO method of accounting while approximately 25% were valued by the first-in, first out (“FIFO”) method of accounting. At December 31, 2010, approximately 85% of the Company’s inventories were valued by the LIFO method of accounting while approximately 15% were valued by the FIFO method of accounting.

During 2011, there were liquidations of LIFO inventory quantities carried at lower costs prevailing in prior years as compared to the cost of fiscal 2011 purchases. The effect of the liquidation decreased costs of goods sold by $250,000 in 2011. During 2010, there were liquidations of LIFO inventory quantities which resulted in immaterial decreases in cost of goods sold in 2010. During 2009, inventory quantities were reduced which resulted in the liquidation of LIFO inventory quantities carried at higher costs prevailing in prior years as compared with the cost of fiscal 2009 purchases. The effect of the liquidation increased costs of goods sold by $745,000 in 2009.