Pizza Hut 1999 Annual Report Download - page 68

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management’s responsibility
for financial statements
To Our Shareholders:
We are responsible for the preparation, integrity and fair pres-
entation of the Consolidated Financial Statements, related
notes and other information included in this annual report. The
financial statements were prepared in accordance with gener-
ally accepted accounting principles and include certain
amounts based upon our estimates and assumptions, as
required. Other financial information presented in the annual
report is derived from the financial statements.
We maintain a system of internal control over financial report-
ing, designed to provide reasonable assurance as to the
reliability of the financial statements, as well as to safeguard
assets from unauthorized use or disposition. The system is sup-
ported by formal policies and procedures, including an active
Code of Conduct program intended to ensure employees
adhere to the highest standards of personal and professional
integrity. Our internal audit function monitors and reports on
the adequacy of and compliance with the internal control sys-
tem, and appropriate actions are taken to address significant
control deficiencies and other opportunities for improving the
system as they are identified.
The financial statements have been audited and reported on
by our independent auditors, KPMG LLP, who were given free
access to all financial records and related data, including min-
utes of the meetings of the Board of Directors and Committees
of the Board. We believe that management representations
made to the independent auditors were valid and appropriate.
The Audit Committee of the Board of Directors, which is com-
posed solely of outside directors, provides oversight to our
financial reporting process and our controls to safeguard assets
through periodic meetings with our independent auditors, inter-
nal auditors and management. Both our independent auditors
and internal auditors have free access to the Audit Committee.
Although no cost-effective internal control system will preclude
all errors and irregularities, we believe our controls as of
December 25, 1999 provide reasonable assurance that our
assets are reasonably safeguarded.
David J. Deno
Chief Financial Officer
report of
independent auditors
The Board of Directors
TRICON Global Restaurants, Inc.:
We have audited the accompanying consolidated balance
sheet of TRICON Global Restaurants, Inc. and Subsidiaries
(“TRICON”) as of December 25, 1999 and December 26,
1998, and the related consolidated statements of operations,
cash flows and shareholders’ (deficit) equity and comprehen-
sive income for each of the years in the three-year period
ended December 25, 1999. These consolidated financial state-
ments are the responsibility of TRICON’s management. Our
responsibility is to express an opinion on these consolidated
financial statements based on our audits.
We conducted our audits in accordance with generally
accepted auditing standards. Those standards require that we
plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material mis-
statement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the finan-
cial statements. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial state-
ment presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred
to above present fairly, in all material respects, the financial
position of TRICON as of December 25, 1999 and
December 26, 1998, and the results of its operations and its
cash flows for each of the years in the three-year period ended
December 25, 1999, in conformity with generally accepted
accounting principles.
KPMG LLP
Louisville, Kentucky
February 8, 2000, except as to
Note 11, which is as of
February 25, 2000