Internal Revenue Bulletin:  2003-38 

September 22, 2003 

Rev. Rul. 2003-103


Table of Contents

LIFO; price indexes; department stores. The July 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, July 31, 2003.

The following Department Store Inventory Price Indexes for July 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, July 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 July 2002 July 2003 Percent Change from July 2002 to July 2003¹
1. Piece Goods 486.4 487.0 0.1
2. Domestics and Draperies 577.3 570.0 -1.3
3. Women's and Children's Shoes 607.4 613.9 1.1
4. Men's Shoes 906.0 831.2 -8.3
5. Infants' Wear 590.9 573.3 -3.0
6. Women's Underwear 526.3 509.0 -3.3
7. Women's Hosiery 345.2 346.9 0.5
8. Women's and Girls' Accessories 517.0 537.8 4.0
9. Women's Outerwear and Girls' Wear 342.0 342.8 0.2
10. Men's Clothing 565.1 533.3 -5.6
11. Men's Furnishings 573.1 562.7 -1.8
12. Boys' Clothing and Furnishings 455.1 424.4 -6.7
13. Jewelry 887.6 882.3 -0.6
14. Notions 795.1 792.1 -0.4
15. Toilet Articles and Drugs 970.8 992.0 2.2
16. Furniture and Bedding 627.6 619.9 -1.2
17. Floor Coverings 617.6 587.3 -4.9
18. Housewares 752.9 722.5 -4.0
19. Major Appliances 221.4 213.3 -3.7
20. Radio and Television 48.4 45.3 -6.4
21. Recreation and Education2 86.3 82.8 -4.1
22. Home Improvements2 125.8 123.7 -1.7
23. Auto Accessories2 111.6 111.4 -0.2
         
Groups 1-15: Soft Goods 555.9 549.6 -1.1
Groups 16-20: Durable Goods 409.9 394.3 -3.8
Groups 21-23: Misc. Goods2 96.6 94.0 -2.7
       
  Store Total3 502.8 493.4 -1.9
         
1Absence of a minus sign before the percentage change in this column signifies a price increase.
2Indexes on a January 1986 = 100 base.
3The 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) 622-7924 (not a toll-free call).


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