Lululemon 2010 Annual Report Download - page 85

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Table of Contents
Evaluation of Disclosure Controls and Procedures
Under the supervision and with the participation of our management, including our principal executive officer
and principal financial officer, we conducted an evaluation of the effectiveness of the design and operation of our
disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act
of 1934, as amended, or the Exchange Act, as of the end of the period covered by this report, or the Evaluation Date.
Based upon the evaluation, our principal executive officer and principal financial officer concluded that our
disclosure controls and procedures were effective as of the Evaluation Date. Disclosure controls and procedures are
controls and procedures designed to reasonably ensure that information required to be disclosed in our reports filed
under the Exchange Act, such as this report, is recorded, processed, summarized and reported within the time periods
specified in the SEC’s rules and forms. Disclosure controls and procedures include controls and procedures designed
to reasonably ensure that such information is accumulated and communicated to our management, including our
chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding required
disclosure.
Inherent Limitations Over Internal Controls
Our internal control over financial reporting is designed to provide reasonable assurances regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles. Our internal control over financial reporting includes those policies and
procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of our assets; (ii) provide reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in accordance with generally accepted accounting principles,
and that our receipts and expenditures are being made only in accordance with authorizations of our management and
directors; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition,
use, or disposition of our assets that could have a material effect on the financial statements. Management, including
our principal executive officer and principal financial officer, does not expect that our internal controls will prevent
or detect all errors and all fraud. A control system, no matter how well designed and operated, can provide only
reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control
system must reflect the fact that there are resource limitations on all control systems, no evaluation of internal
controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.
Also, any evaluation of the effectiveness of controls in future periods are subject to the risk that those internal
controls may become inadequate because of changes in business conditions, or that the degree of compliance with the
policies and procedures may deteriorate.
Management’s Annual Report on Internal Control Over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting
(as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended). Management conducted an
evaluation of the effectiveness of our internal control over financial reporting based on the criteria set forth in
Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission, or COSO. Based on this evaluation, management concluded that we maintained effective internal
control over financial reporting as of January 30, 2011. The effectiveness of our internal control over financial
reporting as of January 30, 2011 has been audited by PricewaterhouseCoopers LLP our independent auditors, who
have expressed an opinion in their report on page 51 of this Form 10-K.
Changes in Internal Control Over Financial Reporting
There were no changes in our internal control over financial reporting during the fourth quarter of the fiscal year
ended January 31, 2010, which were identified in connection with management’s evaluation required by
Rules 13a-15(d) and 15d-15(d) under the Securities Exchange Act of 1934, as amended, that have materially
affected, or are reasonably likely to materially affect, our internal control over financial reporting.
80
ITEM 9A.
CONTROLS AND PROCEDURES