Inventories

Effective August 1, 2018, the Company elected to change its method of inventory accounting to the FIFO method from the LIFO link-chain dollar-value method for its Domestic segment inventories. 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.

Inventories consisted of the following (in thousands):



	January 31, 2019		As Adjusted April 30, 2018
Finished products	$	3,591	$	4,987
Work in process	1,804		2,393
Raw materials	11,277		11,169
	$	16,672	$	18,549

The Company’s International subsidiaries’ inventories were $1,410,000 at January 31, 2019 and $1,908,000, at April 30, 2018, measured using the 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 were 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 nine months ended January 31, 2018 under the FIFO method would have been as follows (in thousands, except per share amounts):



	Three Months Ended January 31, 2018
	As Reported Under LIFO		Adjustments			As Adjusted Under FIFO
Cost of products sold	$	29,836	$	(45	)	$	29,791
Income tax expense	1,566		15			1,581
Net earnings	918		30			948
Net earnings attributable to Kewaunee Scientific Corporation	$	883	$	30		$	913
Net earnings per share attributable to Kewaunee Scientific Corporation stockholders
Basic	$	0.32	$	0.01		$	0.33
Diluted	$	0.31	$	0.01		$	0.32



	Nine Months Ended January 31, 2018
	As Reported Under LIFO		Adjustments			As Adjusted Under FIFO
Cost of products sold	$	90,456	$	(45	)	$	90,411
Income tax expense	3,149		15			3,164
Net earnings	3,875		30			3,905
Net earnings attributable to Kewaunee Scientific Corporation	$	3,755	$	30		$	3,785
Net earnings per share attributable to Kewaunee Scientific Corporation stockholders
Basic	$	1.38	$	0.01		$	1.39
Diluted	$	1.35	$	0.01		$	1.36

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



	Nine Months Ended January 31, 2018
	As Reported Under LIFO			Adjustments			As Adjusted Under FIFO
Net earnings	$	3,875		$	30		$	3,905
Decrease in inventories	(2,745		)	(45		)	(2,790		)
Increase in accounts payable and other accrued expenses	2,020			15			2,035
Net cash used in operating activities	$	(645	)	$	—		$	(645	)

Certain amounts in the Company’s condensed consolidated statement of operations for the three and nine months ended January 31, 2019 under the former LIFO method would have been as follows (in thousands, except per share amounts):



	Three Months Ended January 31, 2019
	As Reported Under FIFO			Adjustments			As Computed Under LIFO
Cost of products sold	$	27,142		$	(49	)	$	27,093
Income tax expense	20			12			32
Net earnings	15			37			52
Net earnings (loss) attributable to Kewaunee Scientific Corporation	$	(22	)	$	37		$	15
Net earnings (loss) per share attributable to Kewaunee Scientific Corporation stockholders
Basic	$	(0.01	)	$	0.01		$	—
Diluted	$	(0.01	)	$	0.01		$	—



	Nine Months Ended January 31, 2019
	As Reported Under FIFO		Adjustments			As Computed Under LIFO
Cost of products sold	$	91,325	$	151		$	91,476
Income tax expense	803		(37		)	766
Net earnings	2,885		(114		)	2,771
Net earnings attributable to Kewaunee Scientific Corporation	$	2,799	$	(114	)	$	2,685
Net earnings per share attributable to Kewaunee Scientific Corporation stockholders
Basic	$	1.02	$	(0.04	)	$	0.98
Diluted	$	1.00	$	(0.04	)	$	0.96

Certain amounts in the Company’s condensed consolidated statement of cash flows as of January 31, 2019 would have been as follows under the former LIFO method (in thousands):



	Nine Months Ended January 31, 2019
	As Reported Under FIFO			Adjustments			As Computed Under LIFO
Net earnings	$	2,885		$	(114	)	$	2,771
Decrease in inventories	990			151			1,141
Decrease in accounts payable and other accrued expenses	(4,879		)	(37		)	(4,916		)
Net cash provided by operating activities	$	4,534		$	—		$	4,534

Certain amounts in the Company’s condensed consolidated balance sheet as of January 31, 2019 would have been as follows under the former LIFO method (in thousands):



	January 31, 2019
	As Reported Under FIFO		Adjustment			As Computed Under LIFO
Inventories	$	16,672	$	(1,038	)	$	15,634
Total Current Assets	59,756		(1,038		)	58,718
Deferred Income Taxes	1,676		162			1,838
Total Assets	79,562		(876		)	78,686
Other Accrued Expenses	2,894		(91		)	2,803
Total Current Liabilities	23,706		(91		)	23,615
Total Liabilities	30,051		(91		)	29,960
Retained Earnings	45,345		(785		)	44,560
Total Kewaunee Scientific Corporation Stockholders’ Equity	48,990		(785		)	48,205
Total Stockholders’ Equity	49,511		(785		)	48,726
Total Liabilities and Stockholders’ Equity	$	79,562	$	(876	)	$	78,686