Inventories, net

The Company used the last in, first out (“LIFO”) method of accounting for approximately 92% of inventories as of April 19, 2025 and December 28, 2024. An actual valuation of inventory under the LIFO method is performed at the end of each fiscal year based on inventory levels and carrying costs at that time. Accordingly, interim LIFO calculations are based on the Company’s estimates of expected inventory levels and costs at the end of the year. The Company’s LIFO debit/(credit) reserve balance was $3 million and $(11) million as of April 19, 2025 and December 28, 2024, respectively, to state inventories at LIFO. Increases to the Company’s LIFO credit reserve balance are recorded as a noncash charge to cost of sales and decreases are recorded as a non-cash benefit to cost of sales. The non-cash (benefit) expense recorded to cost of sales related to the change in the LIFO credit reserve for the periods presented was as follows:


	Sixteen Weeks Ended
	April 19, 2025		April 20, 2024
LIFO credit reserve (benefit) expense	$	(14)	$	(9)

As of April 19, 2025, the effect of LIFO liquidations was a decrease to cost of sales of $4 million and an increase to net earnings of $3 million ($0.05) per diluted share.