Internal Revenue Bulletin:  2003-29 

July 21, 2003 

Rev. Rul. 2003-87


Table of Contents

LIFO; price indexes; department stores. The May 2003 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, May 31, 2003.

The following Department Store Inventory Price Indexes for May 2003 were issued by the Bureau of Labor Statistics. The indexes are accepted by the Internal Revenue Service, under § 1.472-1(k) of the Income Tax Regulations and Rev. Proc. 86-46, 1986-2 C.B. 739, for appropriate application to inventories of department stores employing the retail inventory and last-in, first-out inventory methods for tax years ended on, or with reference to, May 31, 2003.

The Department Store Inventory Price Indexes are prepared on a national basis and include (a) 23 major groups of departments, (b) three special combinations of the major groups — soft goods, durable goods, and miscellaneous goods, and (c) a store total, which covers all departments, including some not listed separately, except for the following: candy, food, liquor, tobacco, and contract departments.

BUREAU OF LABOR STATISTICS, DEPARTMENT STORE INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS (January 1941 = 100, unless otherwise noted)
Groups May 2002 May 2003 Percent Change from May 2002 to May 20031
1. Piece Goods 490.1 456.3 -6.9
2. Domestics and Draperies 586.9 557.6 -5.0
3. Women's and Children's Shoes 647.5 637.0 -1.6
4. Men's Shoes 924.6 855.8 -7.4
5. Infants' Wear 614.9 599.6 -2.5
6. Women's Underwear 542.9 519.8 -4.3
7. Women's Hosiery 345.4 349.5 1.2
8. Women's and Girls' Accessories 558.0 550.2 -1.4
9. Women's Outerwear and Girls' Wear 386.7 374.5 -3.2
10. Men's Clothing 597.7 562.3 -5.9
11. Men's Furnishings 602.1 587.2 -2.5
12. Boys' Clothing and Furnishings 495.5 463.5 -6.5
13. Jewelry 901.3 877.9 -2.6
14. Notions 797.6 789.7 -1.0
15. Toilet Articles and Drugs 975.0 979.7 0.5
16. Furniture and Bedding 626.4 620.2 -1.0
17. Floor Coverings 620.1 578.9 -6.6
18. Housewares 758.4 730.9 -3.6
19. Major Appliances 220.7 213.7 -3.2
20. Radio and Television 50.4 45.9 -8.9
21. Recreation and Education2 86.9 83.4 -4.0
22. Home Improvements2 125.4 126.1 0.6
23. Auto Accessories2 110.9 111.6 0.6
         
Groups 1-15: Soft Goods 586.0 568.1 -3.1
Groups 16-20: Durable Goods 413.1 397.1 -3.9
Groups 21-23: Misc. Goods2 96.8 94.7 -2.2
       
  Store Total3 522.3 506.0 -3.1
         
1 Absence of a minus sign before the percentage change in this column signifies a price increase.
2 Indexes on a January 1986 = 100 base.
3 The store total index covers all departments, including some not listed separately, except for the following: candy, food, liquor, tobacco and contract departments.

DRAFTING INFORMATION

The principal author of this revenue ruling is Michael Burkom of the Office of Associate Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling, contact Mr. Burkom at (202) 622-7718 (not a toll-free call).


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