A method of processing data input to a first-in first-out memory is disclosed. The method comprises steps of receiving input data words from a pipeline stage at an input of the first-in first-out memory; receiving data valid bits associated with the pipeline stage; generating a count associated with the data valid bits; and coupling the count to the first-in first-out memory. The step of generating a count associated with the data valid bits may comprise encoding the data valid bits to generate a valid data word representing the number of pipeline stages having valid data. The method of further comprises a step of generating an almost full signal based upon the count, and in particular generating an almost full signal when a read pointer incremented by the count of valid bits in the pipeline stages equals a write pointer. A circuit for processing data is also disclosed.