CarMax 2000 Annual Report Download - page 83

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MANAGEMENT’S REPORT
CIRCUIT CITY STORES, INC. 2000 ANNUAL REPORT 81
BOARD OF DIRECTORS
The Board of Directors and Stockholders
of Circuit City Stores, Inc.:
The consolidated financial statements of Circuit City Stores,Inc.and sub-
sidiaries,as well as the financial statements of the Circuit City Group and
the CarMax Group,have been prepared under the direction of manage-
ment,which is responsible for their integrity and objectivity. These finan-
cial statements have been prepared in conformity with generally accepted
accounting principles,except for the Circuit City Group,which has accounted
for its interest in the CarMax Group in a manner similar to the equity
method of accounting.Generally accepted accounting principles require
that the CarMax Group be consolidated with the Circuit City Group.How-
ever,management feels the manner in which the Circuit City Group is
presented more clearly indicates the performance of the Circuit City busi-
ness.The financial statements include amounts that are the best estimates
and judgments of management with consideration given to materiality.
Management is responsible for maintaining an internal control structure
designed to provide reasonable assurance that the books and records
reflect the transactions of the Company and that the Company’s estab-
lished policies and procedures are carefully followed. Because of inherent
limitations in any system,there can be no absolute assurance that errors
or irregularities will not occur.Nevertheless,management believes that
the internal control structure provides reasonable assurance that assets
are safeguarded and that financial information is objective and reliable.
The Company’s and the Groups’ financial statements have been audited by
KPMG LLP,independent auditors.Their Independent Auditors’ Reports,
which are based on audits made in accordance with generally accepted
auditing standards,express opinions as to the fair presentation of the
financial statements in conformity with generally accepted accounting
principles.In performing their audits,KPMG LLP considers the Com-
pany’s internal control structure to the extent it deems necessary in
order to issue its opinions on the Company’s and the Groups’ financial
statements.
The audit committee of the board of directors is composed solely of out-
side directors.The committee meets periodically with management,the
internal auditors and the independent auditors to assure each is properly
discharging its responsibilities.KPMG LLP and the internal auditors have
full and free access to meet privately with the audit committee to discuss
accounting controls,audit findings and financial reporting matters.
Richard L. Sharp
Chairman and Chief Executive Officer
Michael T.Chalifoux
Executive Vice President, Chief Financial Officer
and Corporate Secretary
April 5,2000
Richard L.Sharp (3)
Chairman and Chief Executive Officer
Alan L.Wurtzel (2,5)
Vice Chairman of the Board
W.Alan McCollough (3)
President and Chief Operating Officer
Michael T. Chalifoux (3)
Executive Vice President,
Chief Financial Officer and Corporate Secretary
Richard N. Cooper (4,5)
Professor of Economics,
Harvard University;
Boston,Massachusetts
Barbara S. Feigin (4,5)
Consultant;
Retired,Executive Vice President,
Worldwide Director of Strategic Services,
Grey Advertising,Inc.;
New York,New York
James F. Hardymon (1,2)
Retired,Chairman and Chief Executive Officer,
Textron,Inc.;
Providence,Rhode Island
Robert S. Jepson Jr. (1,2)
Chairman and Chief Executive Officer,
Jepson Associates,Inc.;
Savannah,Georgia
Major General Hugh G. Robinson
(Ret.), P.E. (2,4)
Chairman and Chief Executive Officer,
The Tetra Group;
Dallas,Texas
Walter J. Salmon (1,2)
Stanley Roth Senior Professor
of Retailing, Emeritus,
Harvard Business School;
Boston,Massachusetts
Mikael Salovaara (4,5)
Partner,
Greycliff Partners;
Morristown, New Jersey
John W. Snow (1,2)
Chairman,President and
Chief Executive Officer,
CSX Corporation;
Richmond,Virginia
Edward Villanueva (4,5)
Financial Consultant,
Retired,
Former Vice President and Treasurer
(1) Compensation and Personnel Committee Member
(2) Nominating and Governance Committee Member
(3) Executive Committee Member
(4) Audit Committee Member
(5) Pension Investment Committee Member