breakage n
1. the quantity broken; "the total breakage was huge"
2. reimbursement for goods damaged while in transit or in use
3. the act of breaking something; "the breakage was unavoidable" [syn: break, breaking]

Breakage \Break"age\, n.
1. The act of breaking; a break; a breaking; also, articles broken.
2. An allowance or compensation for things broken accidentally, as in transportation or use.

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Breakage is a term used in accounting to indicate gift cards that have been sold but never redeemed. Revenue from breakage is almost entirely profit, since companies need not provide any goods or services for unredeemed gift cards.

Breakage is a term used in sales, distribution, and multi-level marketing organizations to indicate commissions that are lost for the failure to meet certain conditions or requirements. Revenue from breakage is almost entirely profit as commissions lost for failure to meet those conditions or requirements can never be recovered.

US States have varying regulations about the accounting practices of unused gift cards. Some states consider unredeemed gift cards to be abandoned property, and as such lay claim to the value of unredeemed cards. Retailers oppose such laws, because it pays for the expense of issuing and accounting for the card, only to have the value on the card confiscated by the government.

• Red Robin Gourmet Burgers Inc. Reports Operating Results (10-Q) - GuruFocus
  The determination of the gift card breakage rate is based upon the Company’s specific historical redemption patterns. The Company recognizes gift card breakage by applying its estimate of the rate of gift card breakage over the period of estimated ... Read more on this news related to 'Breakage'
• Residential Door Interlock Switches have rugged plastic housing. - ThomasNet Industrial News Room
  Units include door-closure retention cam that ensures safety, internal solenoid control that reduces power consumption and extends solenoid life, and metal key that resists bending and breakage. Units also include manual override to allow actuation without ... Read more on this news related to 'Breakage'
• Docs rewire nerves in paralyzed man’s arm giving him limited hand use - SlashGear
  The surgeons used the healthy nerves above the spinal breakage and connected those healthy nerves to the anterior interosseous nerve in the forearm that controls hand movement. After surgery, the men underwent physical therapy, and began to move his thumb ... Read more on this news related to 'Breakage'