Inventories

4 Months Ended

Apr. 18, 2020

Inventories are stated at the lower of cost or market. We used the last in, first out (“LIFO”) method of accounting for approximately 88% and 89% of inventories as of April 18, 2020 and December 28, 2019. Under the LIFO method, our Cost of sales reflects the costs of the most recently purchased inventories, while the inventory carrying balance represents the costs for inventories purchased in the sixteen weeks ended April 18, 2020 and prior years. We recorded an increase to Cost of sales of $8.8 million and $26.4 million for the sixteen weeks ended April 18, 2020 and April 20, 2019 to state inventories at LIFO.

An actual valuation of inventory under the LIFO method is performed by us at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on our estimates of expected inventory levels and costs at the end of the year.

Inventory balances were as follows:


(in thousands)	April 18, 2020		December 28, 2019
Inventories at first in, first out (“FIFO”)	$	4,393,236	$	4,290,565
Adjustments to state inventories at LIFO	132,767		141,603
Inventories at LIFO	$	4,526,003	$	4,432,168