Yep, sale items or items you've used a coupon on don't count towards your dividend... only the stuff you've paid full price for.

I used my 20% membership coupon to get a 3L Camelbak bladder to put in my daypack for hiking I should have waited and used my coupon online for something more e'spensive, but I hardly ever get to go to REI (there isn't one in the city where I live, but is one near the family I've been visiting for this holiday weekend) and I REALLY just felt like leaving the store with something useful in my hands.

Anyway, back to the topic at hand... I love Timex watches, but the last one I own got left on a park bench in New York City when I had taken it off to put on sunscreen when I was on vacation a couple years ago. I ran back about 2 1/2 minutes later and it was already gone Maybe this is my chance to replace it...! Thanks for the heads up michelem.