REVENUE RULE 95-72

1995-2 C.B. 74, 1995-42 I.R.B. 4

Internal Revenue Service

Revenue Rule

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: October 16, 1995

Section 472. - Last-in, First-out Inventories, 26 CFR 1.472-1: Last-in, first- out inventories.
LIFO; price indexes; department stores. The August 1995 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, August 31, 1995.

The following Department Store Inventory Price Indexes for August 1995 were issued by the Bureau of Labor Statistics on September 13, 1995. The indexes 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, August 31, 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 August 1994/August 1995/Percent Change from Aug. 1994 to Aug. 1995 [Fn1]
1. Piece Goods 467.8 534.7 14.3
2. Domestics and Draperies 649.2 663.1 2.1
3. Women's and Children's Shoes 636.4 622.3 -2.2
4. Men's Shoes 907.3 923.8 1.8
5. Infants' Wear 606.4 620.6 2.3
6. Women's Underwear 523.6 519.0 -0.9
7. Women's Hosiery 277.9 287.5 3.5
8. Women's and Girls' Accessories 557.5 550.4 -1.3
9. Women's Outerwear and Girls' Wear 407.1 404.5 -0.6
10. Men's Clothing 600.1 604.6 0.7
11. Men's Furnishings 552.3 542.4 -1.8
12. Boys' Clothing and Furnishings 477.1 477.3 0.0
13. Jewelry 1027.4 1011.2 -1.6
14. Notions 768.7 868.8 13.0
15. Toilet Articles and Drugs 852.5 861.5 1.1
16. Furniture and Bedding 646.9 659.2 1.9
17. Floor Coverings 554.2 572.4 3.3
18. Housewares 778.5 783.4 0.6
19. Major Appliances 249.5 247.7 0.7
20. Radio and Television 84.6 82.1 -3.0
21. Recreation and Education [fn2] 115.4 114.2 -1.0
22. Home Improvements [fn2] 120.1 122.2 1.7
23. Auto Accessories [fn2] 106.0 107.1 1.0
Groups 1 - 15: Soft Goods 585.7 585.2 -0.1
Groups 16 - 20: Durable Goods 465.4 465.3 0.0
Groups 21 - 23: Misc. Goods [fn2] 114.2 114.1 -0.1
Store Total [fn3] 545.3 544.9 -0.1

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 (not a toll-free call).

Rev. Rul. 95-72, 1995-2 C.B. 74, 1995-42 I.R.B. 4