Exhibit 18
February 29, 2012
Board of Directors
Tootsie Roll Industries, Inc.
7401 South Cicero Avenue
Chicago, IL 60629
Dear Directors:
We are providing this letter to you for inclusion as an exhibit to your Form 10-K filing pursuant to Item 601 of Regulation S-K.
We have audited the consolidated financial statements incorporated by reference in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011 and issued our report thereon dated February 29, 2012. Note 1 to the financial statements describes a change in accounting principle for a change in the approach to determining LIFO pools resulting in a change from multiple pools to a single pool. It should be understood that the preferability of one acceptable method of accounting over another for changes in LIFO applications has not been addressed in any authoritative accounting literature, and in expressing our concurrence below we have relied on management’s determination that this change in accounting principle is preferable. Based on our reading of management’s stated reasons and justification for this change in accounting principle in the Form 10-K, and our discussions with management as to their judgment about the relevant business planning factors relating to the change, we concur with management that such change represents, in the Company’s circumstances, the adoption of a preferable accounting principle in conformity with Accounting Standards Codification 250, Accounting Changes and Error Corrections.
Very truly yours,
/s/ | PRICEWATERHOUSECOOPERS LLP |
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PricewaterhouseCoopers LLP |
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