The Deckers Family, Inc. 2016 Annual Report

To: All members of Deckers Family, Inc.
From: President Dad
RE: Yearly Evaluation Report

Dear Shareholders, Partners, and Employees of DFI:

It has been six years, since I have submitted an annual report for your review. In fact, it's been so long that my title has changed from President Daddy to President Dad. This was actually a sad day for me and CEO Mom, because it meant that our junior staffers had long surpassed their probationary period, and were now moving into their own positions of responsibility.

I also had a feeling of predictions gone wrong when I read in our 2010 report that DFI had moved to its "permanent headquarters" and that "we have no plans of moving." And yet, the old adage, "the only thing that is constant is change" holds true, because we since moved to Orlando, Florida, to our new semi-permanent headquarters.

I say "semi-permanent," because the last several years have shown that making plans for permanence is optimistic at best, and foolish 95 percent of the time. But I have begun planning for our eventual departure. For example, after abandoning yet another garage workstation — this time, a 17 linear foot hand-built L-shaped work station — our new garage workstation is completely portable, which means when we move again, I can take it with us.

I'm also pleased to see the Senior Manager and Assistant Manager of Daughter Operations (SMDO, AMDO) are amenable to sharing their workspace again. As we have sought to downsize into a more lean operation, we've managed to eliminate a lot of our excess inventory, especially old and outdated electronics, uniforms, and even recreational items. This has enabled the SMDO and AMDO to merge departments with a minimum of fuss. CEO Mom and I appreciate your cooperation.

One area of special commendation is the amount of resources the Coordinator of Son Operation (CSO) consumes as he expands his operations. Despite his rapid vertical expansion over the last few years, his total resource consumption has been relatively small.

I recently mentioned during a board meeting that I consumed easily twice the resources when I was the Senior Manager of Son Operations in a previous venture in the mid-80s.

Later, after I went freelance for several years, the Assistant Manager of Son Operations took over the entire department, and his resource consumption equaled and even exceeded my previous years' performance. So we applaud DFI's SCO for expanding operations at a minimal cost.

Despite having a smaller headquarters, all members of DFI have managed to keep their personal workspaces fairly clean and organized. It has helped immensely that we have streamlined our overall inventory footprint, which means there's much less to clean and organize than when we first opened DFI in northern Indiana.

Special thanks to CSO for taking over outside grounds management. Your willingness to oversee this area, especially in the middle of summer, have not gone unnoticed or unappreciated.

The corporate cafeteria is still a problem, however, which is understandable, since we all use it. But we could keep it cleaner throughout the day, if the CSO would just remember to empty the dishwasher each morning.

(On a side note, let me warn our junior staffers: If CEO Mom points out that you left items in the cafeteria sink, don't point out her own cafeteria items around the house. This is apparently a sensitive issue, and I have been called into several lengthy meetings after forgetting to heed my own warning.)

Acting Chief of K9 Security, Sophie, was promoted to Chief of K9 Security in 2012, after CEO Mom pointed out that we didn't have the budget for an additional member of the department, and this was as good as we were going to get. So Sophie is serving as Chief of Security as well as Chief Morale Officer, and her pay has been increased to a nice dog biscuit each afternoon.

One area of concern we have is that while all three junior staffers are learning more job responsibilities, CMO Mom and I are not quite comfortable with the AMDO and CSO exploring temporary external partnerships.

The SMDO has enough experience and seniority that she has begun exploring some options, but we encourage wisdom and patience while she considers what's available. And of course, senior staff reserves the right to veto any potential partnership that can be damaging to SMDO's overall performance and well-being.

Also, President Dad has promised to block any transfer of SMDO to another company for a number of years, especially if the new venture does not have the financial stability and maturity to succeed on its own.

Deckers Family, Inc. has been in Orlando for over a year now, and while I was resistant to the change, I'm pleased to see that everyone has easily made the adjustment to the new location and climate. I'm looking forward to what 2017 can bring us as a company.





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