COST Financial_Report

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Unformatted text preview: ;#xA0 </tr> <tr bgcolor=3D#CCEEFF> <td va lign=3Dtop> <p style=3D'TEXT-INDENT: -1em </td> <td va lign=3Dbottom><font siz e=3D1>&#xA0 <td va lign=3Dbottom><font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>$</font></td> <td va lign=3Dbottom a lign=3Dright><font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>7,09 6 </font></td> <td va lign=3Dbottom nowra p=3Dnowra p><font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>&#xA0 <td va lign=3Dbottom><font siz e=3D1>&#xA0 <td va lign=3Dbottom><font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>$</font></td> <td va lign=3Dbottom a lign=3Dright><font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>6 ,6 38</font></td> <td va lign=3Dbottom nowra p=3Dnowra p><font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>&#xA0 </tr> <tr style=3D'FONT-SIZ E: 1px'> <td va lign=3Dbottom></td> <td va lign=3Dbottom>&#xA0 <td va lign=3Dbottom> <p style=3D'BORDER-TOP: #000000 3px double'>&#xA0 </td> <td va lign=3Dbottom> <p style=3D'BORDER-TOP: #000000 3px double'>&#xA0 </td> <td>&#xA0 <td va lign=3Dbottom>&#xA0 <td va lign=3Dbottom> <p style=3D'BORDER-TOP: #000000 3px double'>&#xA0 </td> <td va lign=3Dbottom> <p style=3D'BORDER-TOP: #000000 3px double'>&#xA0 </td> <td>&#xA0 </tr> </ta ble> <p style=3D'MARGIN-TOP: 12px <font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>Mercha ndise inventories a re va lued a t the lower of cost or ma rket, a s determined prima rily by the reta il inventory method, a nd a re sta ted using the la st-in, first-out (LIFO) method for substa ntia lly a ll U.S. mercha ndise inventories. Mercha ndise inventories for a ll foreign opera tions a re prima rily va lued by the reta il inventory method a nd a re sta ted using the first-in, first-out (FIFO) method. The Compa ny believes the LIFO method more fa irly presents the results of opera tions by more closely ma tching current costs with current revenues. The Compa ny records a n a djustment ea ch qua rter, if necessa ry, for the projected a nnua l effect of infla tion or defla tion, a nd these estima tes a re a djusted to a ctua l results determined a t yea r-end, when a ctua l infla tion ra tes a nd inventory levels ha ve been determined.</font></p> <p style=3D'MARGIN-TOP: 12px <font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>Due to net infla tiona ry trends in 2012 a nd 2011, mercha ndise inventories va lued a t LIFO were lower tha n FIFO, resulting in a cha rge to mercha ndise costs of $21 a nd $87, respectively. At the end 2012 a nd 2011, the cumula tive impa ct of the LIFO va lua tion on mercha ndise inventories wa s $108 a nd $87, respectively. At the end of 2010, mercha ndise inventories va lued a t LIFO a pproxima ted FIFO a fter considering the lower of cost or ma rket principle.</font></p> <p style=3D'MARGIN-TOP: 12px &#xA0 <p style=3D'MARGIN-TOP: 12px <font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>The Compa ny provides for estima ted inventory losses between physica l inventory counts a s a percenta ge of net sa les, using estima tes ba sed on the Compa ny&#x2019 to reflect the results of the a ctua l physica l inventory counts, which genera lly occur in the second a nd fourth fisc...
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This document was uploaded on 04/07/2014.

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