Mattel 1999 Annual Report Download - page 45

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Mattel, Inc. and Subsidiaries
MANAGEMENT REPORT ON RESPONSIBILITY FOR
FINANCIAL REPORTING
Management is responsible for the preparation of Mattel’s consolidated financial
statements and the related financial and nonfinancial information appearing in
this annual report. The financial statements have been prepared in accordance
with accounting principles generally accepted in the United States and, in the
opinion of management, present fairly Mattel’s financial position, results of
operations and cash flows. The financial statements necessarily contain some
amounts that are based on the best estimates and judgments of management.
Mattel maintains accounting and internal control systems which manage-
ment believes are adequate to provide reasonable assurance, in relation to reason-
able cost, as to the integrity and reliability of the financial statements and as to
protection of assets from unauthorized use or disposition. The selection and train-
ing of qualified personnel, the establishment and communication of accounting and
administrative policies and procedures, and a program of internal audit are impor-
tant elements of these control systems.
Mattel’s internal auditors are directed to examine the adequacy and effec-
tiveness of Mattel’s system of internal accounting, administrative and operational
controls. They conduct formal and systematic reviews to determine that operations
are adequately controlled and to assure that assets are effectively safeguarded.
The board of directors has appointed an audit committee, composed entirely
of nonemployee directors. The committee meets regularly w ith financial manage-
ment, internal auditors and the independent accountants to review accounting
control, auditing and financial reporting matters.
PricewaterhouseCoopers LLP, independent accountants, have been retained
to audit Mattel’s consolidated financial statements. They conduct a review of inter-
nal accounting controls to the extent required by auditing standards generally
accepted in the United States and perform such tests and related procedures as they
deem necessary to arrive at an opinion on the fairness of the financial statements.
Kevin M. Farr
Chief Financial Officer
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Stockholders of Mattel, Inc.
In our opinion, the accompanying consolidated balance sheets and the related con-
solidated statements of operations, of stockholders’ equity and of cash flows pre-
sent fairly, in all material respects, the financial position of Mattel, Inc. and its sub-
sidiaries at December 31 , 1 99 9 and 19 98 , and the results of their operations and
their cash flows for each of the three years in the period ended December 31 ,
19 99 , in conformity with accounting principles generally accepted in the United
States. These financial statements are the responsibility of Mattel’s management;
our responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these statements in accordance with audit-
ing standards generally accepted in the United States, which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial state-
ments, assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for the opinion expressed above.
Los Angeles, California
February 2 , 2 00 0