E. Inventories

Effective August 1, 2018, the Company elected to change its method of inventory accounting to the first in, first out (“FIFO”) method from the last in, first out (“LIFO”) link-chain dollar-value method for its Domestic segment inventories. The Company has previously incorrectly disclosed that it used the double-extension technique to calculate its LIFO reserve. The Company believes that the FIFO method is preferable as it results in increased uniformity across the Company’s operations with respect to the inventory valuation method, as the Company’s International subsidiaries use the FIFO method. The Company also believes that the change to FIFO will improve financial reporting by better reflecting the current value of inventory on the condensed consolidated balance sheets, by more closely aligning the flow of physical inventory with the accounting for the inventory, providing better matching of revenues and expenses. The Company applied this change in method of inventory accounting by retrospectively adjusting all prior period financial statements and footnote information presented herein as necessary.

There was no impact upon the Company’s condensed consolidated statements of operations for the three-month and six-month periods ended October 31, 2017 as there was no adjustment to the LIFO reserve amount during those periods. Consequently, there was no change in the Company’s condensed consolidated statement of cash flows for the six-month period ending October 31, 2017. Inventories consisted of the following (in thousands):


	October 31, 2018		As Adjusted April 30, 2018
Finished products	$	3,807	$	4,987
Work in process		1,375		2,393
Raw materials		11,915		11,169

	$	17,097	$	18,549

The Company’s International subsidiaries’ inventories were $1,258,000 at October 31, 2018 and $1,908,000, at April 30, 2018, measured using the first-in, first-out (“FIFO”) method at the lower of cost and net realizable value and are included in the above tables. Certain amounts in the Company’s condensed consolidated balance sheet as of April 30, 2018 was adjusted as follows (in thousands):


	April 30, 2018
	As Originally Reported		Adjustments			As Adjusted
Inventories	$	17,662	$	887		$	18,549
Total Current Assets		63,504		887			64,391
Deferred income taxes		2,031		(162	)		1,869
Total Assets		84,358		725			85,083
Other accrued expenses		2,062		54			2,116
Total Current Liabilities		27,562		54			27,616
Total Liabilities		36,837		54			36,891
Retained earnings		43,165		671			43,836
Total Kewaunee Scientific Corporation Stockholders’ Equity		47,059		671			47,730
Total Stockholders’ Equity		47,521		671			48,192
Total Liabilities and Stockholders’ Equity	$	84,358	$	725		$	85,083

Certain amounts in the Company’s condensed consolidated statement of operations for the three and six months ended October 31, 2018 under the former LIFO method would have been as follows (in thousands, except per share amounts):


	Three months ended October 31, 2018
	As reported under FIFO		Adjustments			As computed under LIFO
Cost of products sold	$	29,505	$	100		$	29,605
Income tax (benefit)		415		(24	)		391
Net earnings		1,454		(76	)		1,378
Net earnings attributable to Kewaunee Scientific Corporation	$	1,414	$	(76	)	$	1,338
Net earnings attributable to Kewaunee Scientific Corporation shareholders
Basic	$	0.52	$	(0.03	)	$	0.49
Diluted	$	0.51	$	(0.03	)	$	0.48


	Six months ended October 31, 2018
	As reported under FIFO		Adjustments			As computed under LIFO
Cost of products sold	$	64,183	$	200		$	64,383
Income tax (benefit)		783		(49	)		734
Net earnings		2,870		(151	)		2,719
Net earnings attributable to Kewaunee Scientific Corporation	$	2,821	$	(151	)	$	2,670
Net earnings attributable to Kewaunee Scientific Corporation shareholders
Basic	$	1.03	$	(0.05	)	$	0.98
Diluted	$	1.01	$	(0.05	)	$	0.96

Certain amounts in the Company’s condensed consolidated statement of cash flows as of October 31, 2018 would have been as follows under the former LIFO method (in thousands):


	Six months ended October 31, 2018
	As reported under FIFO			Adjustments			As computed under LIFO
Net earnings	$	2,870		$	(151	)	$	2,719
Decrease (increase) in inventories		565			200			765
Decrease (increase) in accounts payable and other accrued expenses		(4,202	)		(49	)		(4,251	)
Net cash provided by (used in) operating activities	$	2,301		$	—		$	2,301

Certain amounts in the Company’s condensed consolidated balance sheet as of October 31, 2018 would have been as follows under the former LIFO method (in thousands):


	October 31, 2018
	As reported under FIFO		Adjustment			As computed under LIFO
Inventories	$	17,097	$	(1,087	)	$	16,010
Total Current Assets		60,289		(1,087	)		59,202
Deferred income taxes		1,888		162			2,050
Total Assets		80,596		(925	)		79,671
Other accrued expenses		2,743		(103	)		2,640
Total Current Liabilities		24,036		(103	)		23,933
Total Liabilities		31,213		(103	)		31,110
Retained earnings	$	45,888	$	(822	)	$	45,066
Total Kewaunee Scientific Corporation Stockholders’ Equity		48,920		(822	)		48,098
Total Stockholders’ Equity		49,383		(822	)		48,561
Total Liabilities and Stockholders’ Equity	$	80,596	$	(925	)	$	79,671