REVENUE RULE 95-36

1995-17 I.R.B. 9

Internal Revenue Service

Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: April 24, 1995

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

LIFO; price indexes; department stores. The February 1995 Bureau of Labor Statistics prices 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, February 28, 1995.

The following Department Store Inventory Price Indexes for February 1995 were issued by the Bureau of Labor Statistics on March 16, 1995. The indexes are accepted by the Internal Revenue Service, under s 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, February 28, 1995.

The Department Store Inventory Price Indexes are prepared on a national basis and include (a) 23 major groups of departments, (b) three special combinations of the major groups--soft goods, durable goods, and miscellaneous goods, and (c) a store total, which covers all departments, including some not listed separately, except for the following: candy, foods, liquor, tobacco, and contract departments.

BUREAU OF LABOR STATISTICS, DEPARTMENT STORE INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS
(January 1941 = 100, unless otherwise noted)

Groups February 1994/February 1995/Percent Change from Feb. 1994 to Feb. 1995 [Fn1]
1. Piece Goods 456.6 480.0 5.1
2. Domestics and Draperies 642.1 645.9 0.6
3. Women's and Children's Shoes 645.7 633.8 -1.8
4. Men's Shoes 915.8 925.5 1.1
5. Infants' Wear 602.7 617.3 2.4
6. Women's Underwear 517.7 518.2 0.1
7. Women's Hosiery 275.3 283.0 2.8
8. Women's and Girls' Accessories 556.8 542.0 -2.7
9. Women's Outerwear and Girls' Wear 425.9 413.0 -3.0
10. Men's Clothing 599.3 602.4 0.5
11. Men's Furnishings 545.7 560.5 2.7
12. Boys' Clothing and Furnishings 479.4 488.9 2.0
13. Jewelry 985.6 995.5 1.0
14. Notions 627.1 750.7 19.7
15. Toilet Articles and Drugs 843.9 839.3 -0.5
16. Furniture and Bedding 634.5 654.9 3.2
17. Floor Coverings 522.7 579.6 10.9
18. Housewares 774.4 771.1 -0.4
19. Major Appliances 250.1 246.4 -1.5
20. Radio and Television 86.3 85.6 -0.8
21. Recreation and Education [fn2] 114.7 114.7 0.0
22. Home Improvements [fn2] 124.9 121.3 -2.9
23. Auto Accessories [fn2] 106.6 107.0 0.4
Groups 1 - 15: Soft Goods 586.8 586.4 -0.1
Groups 16 - 20: Durable Goods 463.1 465.1 0.4
Groups 21 - 23: Misc. Goods [fn2] 114.7 114.3 0.3
Store Total [fn3] 545.8 545.8 0.0

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, including some not listed separately, except for the following: candy, foods, liquor, tobacco, and contract departments.

DRAFTING INFORMATION

The principal author of this revenue ruling is Stan Michaels of the Office of Assistant Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling, contact Mr. Michaels on (202) 622- 4970 a toll-free call.

Rev. Rul. 95-36, 1995-17 I.R.B. 9