5. INVENTORIES

At December 31, 2014 and 2013, inventories consisted of:

	2014			2013
	(Dollars in thousands)
Finished shoes	$	87,203		$	80,876
LIFO reserve		(18,188	)		(17,680	)
Total inventories	$	69,015		$	63,196

Finished shoes included inventory in-transit of $25.9 million and $22.5 million as of December 31, 2014 and 2013, respectively. At December 31, 2014, approximately 91% of the Company’s inventories were valued by the LIFO method of accounting while approximately 9% were valued by the first-in, first-out (“FIFO”) method of accounting. At December 31, 2013, approximately 89% of the Company’s inventories were valued by the LIFO method of accounting while approximately 11% were valued by the FIFO method of accounting.

During 2014, there were liquidations of LIFO inventory quantities carried at lower costs prevailing in prior years as compared to the cost of fiscal 2014 purchases. The effect of the liquidation decreased cost of goods sold by $151,000 in 2014. During 2013, there were liquidations of LIFO inventory quantities carried at lower costs prevailing in prior years as compared to the cost of fiscal 2013 purchases. The effect of the liquidation decreased cost of goods sold by $64,000 in 2013. During 2012, there were liquidations of LIFO inventory quantities carried at lower costs prevailing in prior years as compared to the cost of fiscal 2012 purchases. The effect of the liquidation decreased cost of goods sold by $104,000 in 2012.