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51
PART II
Item 8. Financial Statements and Supplementary Data.
Management’s Report on the Financial Statements
Our management is responsible for the preparation, integrity andobjectivity of the accompanying consolidated financial
statements andthe related financial information. The financial statements have been prepared in conformity with accounting
principles generally accepted in the United States of America and necessarily include certain amounts that are based on
estimates and informed judgments. Our management also prepared the related financial information included in this Annual
Report onForm10-K and is responsible for its accuracy and consistency with the financial statements.
The consolidated financial statements have been audited by Deloitte & Touche LLP for the year ended February 25,2006,
andby Ernst & YoungLLP for the years endedFebruary 26, 2005 and February 28, 2004, independent registered public
accountingfirms who conducted theiraudits in accordance with the standards of the Public Company Accounting Oversight
Board (United States). The independent registered public accountingfirm’s responsibility is to express an opinion as tothe
fairness with which such financial statements present ourfinancial position, results of operations and cash flows in
accordance with accounting principles generally accepted in the United States.
Management’s Annual Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintainingadequate internal control over financial reporting as
defined in Rule 13a-15(f) under the Securities Exchange Act of 1934. Ourinternal control over financial reporting is
designed under the supervision of our principal executive officer and principal financial and accounting officer, and effected
by our Board of Directors, management and other personnel, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles
generally accepted in the United States and include those policies and procedures that:
(1) Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect our transactions and the
dispositions of our assets;
(2)Provide reasonable assurance that our transactions are recorded as necessary to permit preparation of financial
statements in accordance with accounting principles generally accepted in the United States, andthat our receipts and
expenditures are beingmade only in accordance with authorizations of our management and Board of Directors; and
(3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition
of ourassets that could have amaterial effect on our financial statements.
Because of its inherent limitations, internal control over financial reportingmay not prevent or detect misstatements.
Therefore, even those systems determined to be effectivecan provide only reasonable assurance with respect to financial
statement preparation and presentation.
Under the supervision and with the participation of our management, including our principal executive officerand principal
financial andaccountingofficer, we assessed the effectiveness of our internalcontrol over financial reporting as of
February 25, 2006, using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission
(COSO) inInternal Control — Integrated Framework. Based on its assessment, management has concludedthat ourinternal
control overfinancial reporting was effective as of February 25, 2006. During its assessment, management did not identify
any material weaknesses in ourinternal control over financial reporting. Deloitte & Touche LLP, the independentregistered
accountingfirm thataudited our consolidated financial statements for the year ended February 25, 2006, included in
Item 8, Financial Statements and Supplementary Data,of this Annual Report on Form 10-K, has issued an unqualified
attestation report on management’s assessment of internal control over financial reporting.
Bradbury H. Anderson
Vice Chairmanand Chief Executive Officer
(Principal Executive Officer)
Darren R. Jackson
Executive Vice President — Finance
and Chief Financial Officer
(Principal Financial and Accounting Officer)