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PART II
improper override. Because of such limitations, there is a risk that material misstatements may not be prevented or detected on a timely
basis by internal control over financial reporting. However, these inherent limitations are known features of the financial reporting process,
and it is possible to design into the process safeguards to reduce, though not eliminate, this risk.
Under the supervision and with the participation of our management, including our principal executive and principal financial officers, we
assessed as of December 31, 2012, the effectiveness of our internal control over financial reporting. This assessment was based on criteria
established in the framework in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission. Based on our assessment using those criteria, our management concluded that our internal control over financial
reporting as of December 31, 2012, was effective.
PricewaterhouseCoopers LLP, the independent registered public accounting firm that audited the financial statements included in this 2012
Annual Report on Form 10-K, has audited the effectiveness of our internal control over financial reporting as of December 31, 2012. Their
report is included on page F-2 of our 2012 Annual Report.
Changes in Internal Control over Financial Reporting
Our management has evaluated, with the participation of our principal executive and principal financial officers, whether any changes in our
internal control over financial reporting that occurred during our last fiscal quarter (the registrant’s fourth fiscal quarter in the case of an
annual report) have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Based on
the evaluation we conducted, our management has concluded that no such changes have occurred.
We also continue to implement an enterprise resource planning (“ERP”) system on a worldwide basis, which is expected to improve the
efficiency of our supply chain and financial transaction processes. The implementation is expected to occur in phases over the next several
years. The implementation of a worldwide ERP system will likely affect the processes that constitute our internal control over financial
reporting and will require testing for effectiveness.
We completed implementation in certain significant markets and will continue to roll-out the ERP system over the next several years. As with
any new information technology application we implement, this application, along with the internal controls over financial reporting
included in this process, were tested for effectiveness prior to and concurrent with the implementation in these countries. We concluded, as
part of our evaluation described in the above paragraph, that the implementation of an ERP system in these countries is not reasonably likely
to materially affect our internal control over financial reporting.
ITEM 9B. OTHER INFORMATION
Not applicable.