These excerpts taken from the IACI 10-K filed Feb 29, 2008.
Revenue from Retailing primarily consists of merchandise sales and is reduced by incentive discounts and sales returns to arrive at net sales. In accordance with Staff Accounting Bulletin 104, revenue is recorded when delivery to the customer has occurred. Delivery is considered to have occurred when the customer takes title and assumes the risks and rewards of ownership, which is generally on the date of shipment. Retailing's sales policy allows customers to return merchandise for a full refund or exchange, subject in some cases to restocking fees and exceptions for certain merchandise. Allowances for returned merchandise and other adjustments (including reimbursed shipping and handling costs) are provided based upon past experience. Retailing's estimated return percentages for 2007 and 2006 of 18.5% and 17.7%, respectively, were arrived at based upon historical levels of actual returns, and the percentages were applied against sales to arrive at net sales. Actual levels of product returns may vary from these estimates.
Revenue from Retailing primarily consists of merchandise sales and is reduced by incentive discounts and sales returns to arrive at net sales. In accordance with
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