Internal Revenue Bulletin:  2003-44 

November 3, 2003 

Rev. Rul. 2003-113


Table of Contents

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

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

The following Department Store Inventory Price Indexes for August 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, August 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 Aug. 2002 Aug. 2003 Percent Change from Aug. 2002 to Aug. 2003¹
1. Piece Goods 481.8 488.9 1.5
2. Domestics and Draperies 577.9 568.7 -1.6
3. Women's and Children's Shoes 634.4 631.4 -0.5
4. Men's Shoes 892.1 838.8 -6.0
5. Infants' Wear 600.1 589.1 -1.8
6. Women's Underwear 532.7 510.7 -4.1
7. Women's Hosiery 342.7 347.8 1.5
8. Women's and Girls' Accessories 523.9 551.0 5.2
9. Women's Outerwear and Girls' Wear 361.5 350.2 -3.1
10. Men's Clothing 563.8 528.7 -6.2
11. Men's Furnishings 589.4 565.6 -4.0
12. Boys' Clothing and Furnishings 439.2 423.3 -3.6
13. Jewelry 887.0 880.6 -0.7
14. Notions 793.2 787.1 -0.8
15. Toilet Articles and Drugs 969.2 979.8 1.1
16. Furniture and Bedding 623.9 619.8 -0.7
17. Floor Coverings 621.3 588.7 -5.2
18. Housewares 749.4 720.4 -3.9
19. Major Appliances 221.8 209.7 -5.5
20. Radio and Television 47.9 45.0 -6.1
21. Recreation and Education2 85.7 82.3 -4.0
22. Home Improvements2 125.4 124.2 -1.0
23. Automotive Accessories2 111.8 111.7 -0.1
         
Groups 1-15: Soft Goods 565.9 553.5 -2.2
Groups 16-20: Durable Goods 408.4 392.1 -4.0
Groups 21-23: Misc. Goods2 96.2 93.8 -2.5
       
  Store Total3 508.3 495.2 -2.6
    (Footnotes are on the following page.)
         
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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