REVENUE RULE 93-17

1993-1 C.B. 84, 1993-9 I.R.B. 20.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: March 1, 1993

§ 472.--Last-in, First-out Inventories, 26 CFR 1.472-1: Last-in, first- out inventories.

LIFO; price indexes; department stores. The September 1992 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, September 30, 1992.

The following price indexes for September 1992 were issued by the Bureau of Labor Statistics on October 15, 1992, for use by department stores, and 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, September 30, 1992.

Indexes are prepared on a national basis for the store total, for 23 major groups of departments, and for three special combinations--soft goods, durable goods and miscellaneous goods. The store total index covers all departments, including some not listed separately, with the following exceptions: candy, foods, liquor, tobacco, as well as contract departments.

BUREAU OF LABOR STATISTICS, DEPARTMENT STORE

INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS

(January 1941 = 100, unless otherwise noted)

Groups September 1991/September 1992/Percent Change From Sept. 1991 to Sept. 1992 [Fn1]
1. Piece Goods 464.0 477.9 3.0
2. Domestics and Draperies 621.7 632.5 1.7
3. Women's and Children's Shoes 621.5 643.5 3.5
4. Men's Shoes 891.5 923.7 3.6
5. Infants' Wear 607.5 622.3 2.4
6. Women's Underwear 502.7 515.6 2.6
7. Women's Hosiery 261.5 268.1 2.5
8. Women's and Girls' Accessories 548.2 585.6 6.8
9. Women's Outerwear and Girls'Wear 434.4 430.4 -0.9
10. Men's Clothing 591.6 598.5 1.2
11. Men's Furnishings 560.9 558.8 -0.4
12. Boys' Clothing and Furnishings 485.4 476.0 -1.9
13. Jewelry 890.0 926.6 4.1
14. Notions 601.7 611.0 1.5
15. Toilet Articles and Drugs 798.2 816.6 2.3
16. Furniture and Bedding 592.3 601.7 1.6
17. Floor Coverings 534.2 522.1 -2.3
18. Housewares 759.8 760.5 0.1
19. Major Appliances 248.0 248.1 0.0
20. Radio and Television 88.9 88.4 -0.6
21. Recreation and Education [fn2] 114.5 115.2 0.6
22. Home Improvements [fn2] 116.1 117.6 1.3
23. Auto Accessories [fn2] 107.8 108.3 0.5
Groups 1-15: Soft Goods 577.9 585.4 1.3
Groups 16-20: Durable Goods 456.3 456.7 0.1
Groups 21-23: Misc. Goods [fn2] 113.4 114.2 0.7
Store Total [fn3] 537.9 542.8 0.9

fn1. Absence of a minus sign before percentage change in this column signifies price increase.
fn2. Indexes on a January 1986 = 100 base.
fn3. The store total index covers all departments, with the following exceptions: candy, foods, liquor, tobacco, as well as contract departments.

DRAFTING INFORMATION

The principal author of this revenue ruling is Harry-Todd Astrov of the Office of Assistant Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling contact Mr. Astrov on (202) 622-4970 (not a toll-free call).