FL » Topics » Advertising Costs and Sales Promotion

These excerpts taken from the FL 10-K filed Mar 30, 2009.

Advertising Costs and Sales Promotion

     Advertising and sales promotion costs are expensed at the time the advertising or promotion takes place, net of reimbursements for cooperative advertising. Cooperative advertising reimbursements earned for the launch and promotion of certain products is agreed upon with vendors and is recorded in the same period as the associated expense

33


is incurred. In accordance with EITF Issue No. 02-16, “Accounting by a Reseller for Cash Consideration from a Vendor,” the Company accounts for reimbursements received in excess of expenses incurred related to specific, incremental, identifiable advertising, as a reduction to the cost of merchandise and is reflected in cost of sales as the merchandise is sold.

     Advertising costs, which are included as a component of selling, general and administrative expenses were as follows:

     2008           2007           2006
(in millions)
Advertising expenses   $ 106.8   $ 105.9 $ 92.5
Cooperative advertising reimbursements (40.2 ) (34.8 ) (23.0 )
Net advertising expense $ 66.6 $ 71.1   $ 69.5

Advertising Costs and Sales
Promotion


     Advertising and sales promotion costs are expensed at the time the
advertising or promotion takes place, net of reimbursements for cooperative
advertising. Cooperative advertising reimbursements earned for the launch and
promotion of certain products is agreed upon with vendors and is recorded in the
same period as the associated expense


33





is incurred. In accordance with
EITF Issue No. 02-16, “Accounting by a Reseller for Cash Consideration from a
Vendor,” the Company accounts for reimbursements received in excess of expenses
incurred related to specific, incremental, identifiable advertising, as a
reduction to the cost of merchandise and is reflected in cost of sales as the
merchandise is sold.


     Advertising costs, which are
included as a component of selling, general and administrative expenses were as
follows:


























































     2008           2007           2006
(in millions)
Advertising expenses   $ 106.8   $ 105.9 $ 92.5
Cooperative
advertising reimbursements
(40.2 ) (34.8 ) (23.0 )
Net advertising
expense
$ 66.6 $ 71.1   $ 69.5


Advertising Costs and Sales
Promotion


     Advertising and sales promotion costs are expensed at the time the
advertising or promotion takes place, net of reimbursements for cooperative
advertising. Cooperative advertising reimbursements earned for the launch and
promotion of certain products is agreed upon with vendors and is recorded in the
same period as the associated expense


33





is incurred. In accordance with
EITF Issue No. 02-16, “Accounting by a Reseller for Cash Consideration from a
Vendor,” the Company accounts for reimbursements received in excess of expenses
incurred related to specific, incremental, identifiable advertising, as a
reduction to the cost of merchandise and is reflected in cost of sales as the
merchandise is sold.


     Advertising costs, which are
included as a component of selling, general and administrative expenses were as
follows:


























































     2008           2007           2006
(in millions)
Advertising expenses   $ 106.8   $ 105.9 $ 92.5
Cooperative
advertising reimbursements
(40.2 ) (34.8 ) (23.0 )
Net advertising
expense
$ 66.6 $ 71.1   $ 69.5


These excerpts taken from the FL 10-K filed Mar 31, 2008.

Advertising Costs and Sales Promotion

     Advertising and sales promotion costs are expensed at the time the advertising or promotion takes place, net of reimbursements for cooperative advertising. Cooperative advertising reimbursements earned for the launch and promotion of certain products is agreed upon with vendors and is recorded in the same period as the associated expense

32


is incurred. In accordance with EITF Issue No. 02-16, “Accounting by a Reseller for Cash Consideration from a Vendor,” the Company accounts for reimbursements received in excess of expenses incurred related to specific, incremental advertising, as a reduction to the cost of merchandise and is reflected in cost of sales as the merchandise is sold.

     Advertising costs, which are included as a component of selling, general and administrative expenses, net of reimbursements for cooperative advertising, were as follows:

     2007           2006           2005
(in millions)
Advertising expenses   $ 105.9 $ 92.5   $ 99.0
Cooperative advertising reimbursements   (34.8 )     (23.0 )   (21.2 )
Net advertising expense $ 71.1 $ 69.5 $ 77.8  

Advertising Costs and Sales
Promotion


     Advertising and sales promotion costs are expensed at the time the
advertising or promotion takes place, net of reimbursements for cooperative
advertising. Cooperative advertising reimbursements earned for the launch and
promotion of certain products is agreed upon with vendors and is recorded in the
same period as the associated expense


32





is incurred. In accordance with
EITF Issue No. 02-16, “Accounting by a Reseller for Cash Consideration from a
Vendor,” the Company accounts for reimbursements received in excess of expenses
incurred related to specific, incremental advertising, as a reduction to the
cost of merchandise and is reflected in cost of sales as the merchandise is
sold.


     Advertising costs, which are included as a component of selling, general
and administrative expenses, net of reimbursements for cooperative advertising,
were as follows:


























































     2007           2006           2005
(in millions)
Advertising expenses   $ 105.9 $ 92.5   $ 99.0
Cooperative
advertising reimbursements
  (34.8 )     (23.0 )   (21.2 )
Net advertising expense $ 71.1 $ 69.5 $ 77.8  


This excerpt taken from the FL 10-K filed Apr 2, 2007.

Advertising Costs and Sales Promotion

     Advertising and sales promotion costs are expensed at the time the advertising or promotion takes place, net of reimbursements for cooperative advertising. Cooperative advertising reimbursements earned for the launch and promotion of certain products is agreed upon with vendors and is recorded in the same period as the associated

31


expense is incurred. In accordance with EITF 02-16, “Accounting by a Reseller for Cash Consideration from a Vendor,” the Company accounts for reimbursements received in excess of expenses incurred related to specific, incremental advertising, as a reduction to the cost of merchandise and is reflected in cost of sales as the merchandise is sold.

     Advertising costs, which are included as a component of selling, general and administrative expenses, net of reimbursements for cooperative advertising, were as follows:

 2006            2005            2004
 (in millions)
Advertising expenses $ 92.5   $ 99.0 $  102.5
Cooperative advertising reimbursements   (23.0 )   (21.2 )   (24.8 )
Net advertising expense $ 69.5 $ 77.8 $ 77.7  

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