Pizza Hut 2000 Annual Report Download - page 68

66 TRICON GLOBAL RESTAURANTS, INC. AND SUBSIDIARIES
Management’s Responsibility for
Financial Statements
To Our Shareholders:
We are responsible for the preparation, integrity and fair presenta-
tion of the Consolidated Financial Statements, related notes and
other information included in this annual report. The financial
statements were prepared in accordance with accounting principles
generally accepted in the United States of America and include cer-
tain 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 supported by for-
mal policies and procedures, including an active Code of Conduct
program intended to ensure employees adhere to the highest stan-
dards of personal and professional integrity. Our internal audit
function monitors and reports on the adequacy of and compliance
with the internal control system, and appropriate actions are taken
to address significant control deficiencies and other opportunities
for improving the system as they are identified.
The Consolidated 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
minutes 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 peri-
odic meetings with our independent auditors, internal 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
30, 2000 provide reasonable assurance that our assets are reasonably
safeguarded.
David J. Deno
Chief Financial Officer
The Board of Directors
TRICON Global Restaurants, Inc.:
We have audited the accompanying consolidated balance sheets of
TRICON Global Restaurants, Inc. and Subsidiaries ("TRICON") as
of December 30, 2000 and December 25, 1999, and the related con-
solidated statements of income, cash flows and shareholders’ deficit
and comprehensive income for each of the years in the three-year
period ended December 30, 2000. These consolidated financial
statements 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 auditing standards
generally accepted in the United States of America. Those standards
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 statements.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the
overall financial statement 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 30, 2000 and December 25, 1999, and
the results of its operations and its cash flows for each of the years
in the three-year period ended December 30, 2000, in conformity
with accounting principles generally accepted in the United States
of America.
KPMG LLP
Louisville, Kentucky
February 13, 2001, except as to Note 18
which is as of February 14, 2001
and Note 21 which is as of March 9, 2001
Report of Independent Auditors