So we want to figure out what the LIFO value of the inventory is.

The formula is that FIFO inventory is going to

equal the LIFO inventory plus the LIFO reserve.

So we see the LIFO value of the inventory at the bottom line,

518 and 540, less revaluation to LIFO.

That's the terminology for LIFO reserve.

So in 2012 we take 518 plus 102 to get to 620.

And for 2011, we take 540 plus 63 to get to 603.

Now, the LIFO reserve is in brackets, and

that is representing that it's a credit balance, and

we're not going to get into the journal entries for that so don't worry about it,

but it's also negative because it's reducing 620 minus LIFO reserve to 518.

But when we look at these equations, we just treat the LIFO reserve

as a positive number, so we take 518 plus 102, to get to 620.

And as you notice, the 620 and the 603, the FIFO value of the inventory,

is actually disclosed by KP, even though they don't label it as the FIFO value.