Estee Lauder 2011 Annual Report Download - page 159

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THE EST{E LAUDER COMPANIES INC. 157
Management of The Estée Lauder Companies Inc. (including its subsidiaries) (the “Company”) is responsible for
establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) of the
Securities Exchange Act of 1934, as amended).
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
U.S. generally accepted accounting principles. A company’s internal control over financial reporting includes those
policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions
are recorded as necessary to permit preparation of financial statements in accordance with U.S. generally accepted
accounting principles, and that receipts and expenditures of the company are being made only in accordance with
authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention
or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material
effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures
may deteriorate.
Under the supervision of and with the participation of the Chief Executive Officer and the Chief Financial Officer, the
Company’s management conducted an assessment of the effectiveness of the Company’s internal control over financial
reporting based on the framework and criteria established in Internal Control — Integrated Framework, issued by the
Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, the Company’s
management has concluded that, as of June 30, 2011, the Company’s internal control over financial reporting was effective.
The effectiveness of the Company’s internal control over financial reporting as of June 30, 2011 has been audited by
KPMG LLP, an independent registered public accounting firm, as stated in their report which appears under the heading
“Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting.”
Fabrizio Freda Richard W. Kunes
President and Chief Executive Officer Executive Vice President and Chief Financial Officer
August 22, 2011
MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING