GIS » Topics » Revenue Recognition

These excerpts taken from the GIS 10-K filed Jul 11, 2008.
Revenue Recognition We recognize sales revenue when the shipment is accepted by our customer. Sales include shipping and handling charges billed to the customer and are reported net of consumer coupon redemption, trade promotion and other costs, including estimated allowances for returns, unsalable product, and prompt pay discounts. Sales, use, value-added, and other excise taxes are not recognized in revenue. Coupons are recorded when distributed, based on estimated redemption rates. Trade promotions are recorded based on estimated participation and performance levels for offered programs at the time of sale. We generally do not allow a right of return. However, on a limited case-by-case basis with prior approval, we may allow customers to return product. In limited circumstances, product returned in saleable condition is resold to other customers or outlets. Receivables from customers generally do not bear interest. Terms and collection patterns vary around the world and by channel. The allowance for doubtful accounts represents our estimate of probable non-payments and credit losses in our existing receivables, as determined based on a review of past due balances and other specific account data. Account balances are written off against the allowance when we deem the amount is uncollectible.
 
Revenue
Recognition
 We recognize sales revenue when
the shipment is accepted by our customer. Sales include shipping
and handling charges billed to the customer and are reported net
of consumer coupon redemption, trade promotion and other costs,
including estimated allowances for returns, unsalable product,
and prompt pay discounts. Sales, use, value-added, and other
excise taxes are not recognized in revenue. Coupons are recorded
when distributed, based on estimated redemption rates. Trade
promotions are recorded based on estimated participation and
performance levels for offered programs at the time of sale. We
generally do not allow a right of return. However, on a limited
case-by-case
basis with prior approval, we may allow customers to return
product. In limited circumstances, product returned in saleable
condition is resold to other customers or outlets. Receivables
from customers generally do not bear interest. Terms and
collection patterns vary around the world and by channel. The
allowance for doubtful accounts represents our estimate of
probable non-payments and credit losses in our existing
receivables, as determined based on a review of past due
balances and other specific account data. Account balances are
written off against the allowance when we deem the amount is
uncollectible.


 



EXCERPTS ON THIS PAGE:

10-K (2 sections)
Jul 11, 2008
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