Kroger 2015 Annual Report Download - page 75

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A-1
FINANCIAL REPORT 2015
MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL REPORTING
The management of The Kroger Co. has the responsibility for preparing the accompanying financial
statements and for their integrity and objectivity. The statements were prepared in accordance with
generally accepted accounting principles applied on a consistent basis and are not misstated due to
material error or fraud. The financial statements include amounts that are based on management’s
best estimates and judgments. Management also prepared the other information in the report and is
responsible for its accuracy and consistency with the financial statements.
Kroger’s financial statements have been audited by PricewaterhouseCoopers LLP, an independent
registered public accounting firm, whose selection has been ratified by the shareholders. Management
has made available to PricewaterhouseCoopers LLP all of Kroger’s financial records and related data, as
well as the minutes of the shareholders’ and directors’ meetings. Furthermore, management believes that
all representations made to PricewaterhouseCoopers LLP during its audit were valid and appropriate.
Management also recognizes its responsibility for fostering a strong ethical climate so that Kroger’s
affairs are conducted according to the highest standards of personal and corporate conduct. This
responsibility is characterized and reflected in The Kroger Co. Policy on Business Ethics, which is
publicized throughout Kroger and available on Kroger’s website at ir.kroger.com. The Kroger Co. Policy
on Business Ethics addresses, among other things, the necessity of ensuring open communication
within Kroger; potential conflicts of interests; compliance with all domestic and foreign laws, including
those related to financial disclosure; and the confidentiality of proprietary information. Kroger maintains a
systematic program to assess compliance with these policies.
MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
Management is responsible for establishing and maintaining adequate internal control over
financial reporting for the Company. With the participation of the Chief Executive Officer and the Chief
Financial Officer, our management conducted an evaluation of the effectiveness of our internal control
over financial reporting based on the framework and criteria established in Internal Control – Integrated
Framework (2013), issued by the Committee of Sponsoring Organizations of the Treadway Commission.
Our management excluded Roundy’s, Inc. from its assessment of internal control over financial reporting
because it was acquired in a purchase business combination on December 18, 2015. Roundy’s, Inc.
is a wholly-owned subsidiary whose total assets and total revenues represent 2% and less than 1%,
respectively, of the related consolidated financial statement amounts as of and for the year ended
January 30, 2016. Based on this evaluation, management has concluded that the Company’s internal
control over financial reporting was effective as of January 30, 2016.
W. Rodney McMullen J. Michael Schlotman
Chairman of the Board and
Chief Executive Officer
Executive Vice President and
Chief Financial Officer