These items are "refurbished" or "factory serviced" means that the factory got the merchandise back for a variety of reasons.  Reasons may be as follows:
 
1. A customer got this item as a gift and didnt want it so they returned it to the manufacturer 
2. A mass merchant bought too many during a holiday season and sent the goods back for partial credit. 
3. Returns from a trucking company who had temporarily "lost" the goods. 
4. A store or chain went out of business and the manufacturer got the goods back in lieu of payment.  
5. It could be that the items had worn packaging, but were on guaranteed sale.
6. It could be that the manufacturer had excess inventory of a discontinued item after a new product introduction.   
7. Goods with minor imperfections in the fit or finish can also be classified as refurbished, even when new.
These goods are inspected to ensure that they are of the same quality standard as the 'new' items and repackaged. 'Refurbished' or 'Factory Serviced' items are of the same quality as the 'new' items but at a greatly reduced price.