As much as Best Buy did, since they required vendors to reimburse them for markdowns and unsold investory.
We receive vendor allowances for various programs,
primarily volume incentives and reimbursements for specific
costs such as markdowns, margin protection, advertising
and sales incentives. Vendor allowances provided as a
reimbursement of specific, incremental and identifiable
costs incurred to promote a vendor’s products are included
as an expense reduction when the cost is incurred. All other
vendor allowances, including vendor allowances received in
excess of our cost to promote a vendor’s product, are
initially deferred and recorded as a reduction of
merchandise inventories.
We receive vendor allowances for various programs, primarily volume incentives and reimbursements for specific costs such as markdowns, margin protection, advertising and sales incentives. Vendor allowances provided as a reimbursement of specific, incremental and identifiable costs incurred to promote a vendor’s products are included as an expense reduction when the cost is incurred. All other vendor allowances, including vendor allowances received in excess of our cost to promote a vendor’s product, are initially deferred and recorded as a reduction of merchandise inventories.