Revenue Recognition:  The Company recognizes sales when  title passes upon delivery of its products to customers, net of  applicable provisions for discounts, returns, and allowances.  Products are delivered upon receipt of customer purchase  orders with acceptable terms, including price and collectabil- ity that is reasonably assured. The Company offers various sales incentives to customers  and consumers. Incentives that are offered off-invoice include  prompt pay allowances, will call allowances, spoilage allow- ances, and temporary price reductions. These incentives are  recognized as reductions of revenue at the time title passes.  Coupons are used as an incentive for consumers to purchase  various products. The coupons reduce revenues at the time  they are offered, based on estimated redemption rates.  Promotional contracts are performed by customers to pro- mote the Company’s products to consumers. These incentives  reduce revenues at the time of performance through direct  payments and accrued promotional funds. Accrued promo- tional funds are unpaid liabilities for promotional contracts  in process or completed at the end of a quarter or fiscal year.  Promotional contract accruals are based on a review of the  unpaid outstanding contracts on which performance has taken  place. Estimates used to determine the revenue reduction  include the level of customer performance and the historical  spend rate versus contracted rates. Allowance for Doubtful Accounts:  The Company estimates  the allowance for doubtful accounts based on a combination of  factors, including the age of its accounts receivable balances,  customer history, collection experience, and current market  factors. Additionally, a specific reserve may be established if  the Company becomes aware of a customer’s inability to meet  its financial obligations. Advertising Expenses:  Advertising costs are expensed when  incurred. Advertising expenses include all media advertising  but exclude the costs associated with samples, demonstra- tions, and market research. Advertising costs for fiscal years  2014, 2013, and 2012 were $114.4 million, $89.9 million, and  $103.4 million, respectively. Shipping and Handling Costs:  The Company’s shipping and  handling expenses are included in cost of products sold. Research and Development Expenses:  Research and devel- opment costs are expensed as incurred and are included in  selling, general and administrative expenses. Research and  development expenses incurred for fiscal years 2014, 2013,  and 2012 were $29.9 million, $29.9 million, and $29.8 million,  respectively. Income Taxes:  The Company records income taxes in accor- dance with the liability method of accounting. Deferred taxes  are recognized for the estimated taxes ultimately payable or  recoverable based on enacted tax law. Changes in enacted tax  rates are reflected in the tax provision as they occur. In accordance with ASC 740,  Income Taxes , the Company  recognizes a tax position in its financial statements when it is  more likely than not that the position will be sustained upon  examination based on the technical merits of the position.  That position is then measured at the largest amount of bene- fit that is greater than 50 percent likely of being realized upon  ultimate settlement. Employee Stock Options:  The Company records stock- based compensation expense in accordance with ASC 718,  Compensation — Stock Compensation . For options subject  to graded vesting, the Company recognizes stock-based  compensation expense ratably over the shorter of the vesting  period or requisite service period. Stock-based compensation  expense for grants made to retirement-eligible employees is  recognized on the date of grant. Share Repurchases:  On May 24, 2010, the Company’s Board  of Directors authorized the Company to repurchase 5.0 million  shares of common stock with no expiration date. On a pre-split  basis, the Company purchased 0.6 million shares at an aver- age price of $42.86 during fiscal 2010 under this authorization. On November 22, 2010, the Board of Directors also authorized  a two-for-one stock split of the Company’s common stock. As  part of the Board’s approval of that stock split, the number of  shares remaining to be repurchased was adjusted proportion- ately. On a post-split basis, 1.2 million shares at an average  price of $39.67 were purchased during fiscal 2013 and 2.1  million shares at an average price of $28.65 were purchased  during fiscal 2012, which fully depleted that program. On January 29, 2013, the Company’s Board of Directors autho- rized the repurchase 10.0 million shares of its common stock  with no expiration date. During fiscal 2014, 1.3 million shares  were purchased at an average price of $46.87 and 0.6 million  shares were purchased during fiscal 2013 at an average price  of $42.54 under this new authorization. Supplemental Cash Flow Information:  Non-cash investment  activities presented on the Consolidated Statements of Cash  Flows generally consist of unrealized gains or losses on the  Company’s rabbi trust and other investments, amortization  of affordable housing investments, and amortization of  bond financing costs. The noted investments are included  in other assets or short-term marketable securities on the  Consolidated Statements of Financial Position. Changes in the  value of these investments are included in the Company’s net  earnings and are presented in the Consolidated Statements of  Operations as either interest and investment income (loss) or  interest expense, as appropriate. 41