7. Inventory
At March 2, 2013 and March 3, 2012, inventories were $915,241 and $1,063,123, respectively, lower than the amounts that would have been reported using the first-in, first-out ("FIFO") cost flow assumption. The Company calculates its FIFO inventory valuation using the retail method for store inventories and the cost method for distribution facility inventories. The Company recorded a LIFO credit for fiscal year 2013 of $147,882 compared to LIFO charges for fiscal years 2012 and 2011 of $188,722 and $44,905, respectively. During fiscal 2013, 2012 and 2011, a reduction in inventories related to working capital initiatives resulted in the liquidation of applicable LIFO inventory quantities carried at lower costs in prior years. This LIFO liquidation resulted in a $4,316, $11,004 and $2,647 cost of sales decrease, with a corresponding reduction to the adjustment to LIFO for fiscal 2013, fiscal 2012 and fiscal 2011, respectively.