amount of purchase incentives accrued.  Upon program completion, differences between estimates and actual incentives 
subsequently received have not been material.  Benefits under these supplier purchasing programs are recognized under the 
Company’s LIFO inventory accounting method as a reduction of cost of sales when the inventories representing these purchases are 
recorded as cost of sales.  Accrued ince ntives expected to be settled as a credit against purchases are reported on the c onsolidated 
balance sheet as an offset to amounts due to the related supplier. 
Property and Related Depreciation a nd Amortization 
Property and equipment are recorded at cost.  Depreciation is computed using the straight-line method over the estimated useful lives 
of the assets and is included in selling, distribution and administrative expenses in the accompanying statements of consolidated 
income.  
Buildings, building improvements and leasehold improvements are depreciated over ten to thirty years or the life of the lease 
if a shorter period, and equipment is depreciated over three to eight years.  The Company capitalizes internal use software 
development costs in accordance with guidance on accounting for costs of computer software developed or obtained for internal use.  
Amortization of software begins when it is ready for its intended use, and is amortized on a straight-line basis over the  estimated 
useful life of the software, generally not to exceed twelve years.  Capitalized software and hardware costs are classified as property on 
the consolidated balance sheets.  The carrying values of property and equipment are reviewed for impairment when events or changes 
in circumstances indicate that the recorded value cannot be recovered from undiscounted future cash flows.  Impairment losses, if 
any, would be measured based upon the difference between the carrying amount and the fair value of the assets. 
  
 
Goodwill and Intangible Assets 
Goodwill is recognized as the excess cost of an acquired entity over the net amount assigned to assets acquired and liabilities assumed.  
Goodwill is not amortized.  Goodwill is reviewed for impairment annually as of January 1 or whenever changes in conditions indicate an 
evaluation should be completed.  These conditions could include a significant change in the business climate, legal factors, operating 
performance indicators, competition, or sale or disposition of a significant portion of a reporting unit.  The Company utilizes discoun ted 
cash flow models and market multiples for comparable businesses to determine the fair value of reporting units.  Evaluating impairment 
requires significant judgment by management, including estimated future operating results, estimated future cash flows, the long-term 
rate of growth of the business, and determination of an appropriate discount rate.  While the Company uses available information to 
prepare the estimates and evaluations, actual results could differ significantly. 
The Company recogn izes acquired intangible assets such as custome r relationships, trade names, vendor relationships, and non-
competition agreements apart from goodwill.  Customer relationship intangibles are amortized using the sum-of-the-y ears-digits 
method over estimated useful lives consistent with assumptions used in the determination of their value.  Amortization of all other 
finite-lived intangible assets is computed using the straight-line method over the estimated period of benefit.  The Company also 
maintains intang ible assets with indefinite lives which are not amo rtized.  Amortization of intangible assets is included in selling, 
distribution and administrative expenses in the accompanying statements of consolidated income.  Intangible assets with finite lives are 
reviewed for impairment when changes in conditions indicate carrying value may not be recoverable.  Intangible assets with indefinite