This excerpt taken from the HBI 8-K filed Sep 5, 2006.
(f) Shipping and Handling Costs
Revenue received for shipping and handling costs, which is immaterial for all periods presented, is included in net sales. Shipping costs, that comprise payments to third party shippers, and handling costs, which consist of warehousing costs in the Companys various distribution facilities, were $239,902 in 2003, $246,353 in 2004 and $246,770 in 2005. The Company recognizes shipping, handling and distribution costs in the Selling, general and administrative expenses line of the Combined and Consolidated Statements of Income.
Notes to Combined and Consolidated Financial Statements(Continued)
(dollars in thousands, except per share data)