Need help with BSG year 15 decisions, production equipment fully depreciated. See screenshots. Please advise. Thank you.

F Company Internet Marketing Help Print Save Decisions DECISION ENTRIES - YEAR 15 Compensation & Training North America Europe-Africa Asia-Pacific Latin America Market Market Market Market Branded Production Production Facilities Year 14 Year 15 Year 14 Year 15 Year 14 Year 15 Year 14 Year 15 Marketing variables generated by S/Q Rating (weighted average) 6.0 * 5.9 * 5.9 * 5.8 * 5.9 * 5.7* 5.8 * 5.8 * Distribution & Warehouse production and marketing decisions in Y15. Models Available (weighted average) 108 101 106 100 115 105 105 100 Internet Marketing Brand Advertising (5000s) 17,000 17,000 15,000 15,000 15,000 15,000 13,500 13,500 Wholesale Marketing Internet Marketing Decisions Retail Price ($ per pair sold online) 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Private-Label Operations Retail Price Exceeds Wholesale Price by 54% 17% 54% 47% Celebrity Endorsements Search Engine Advertising ($000s) 10,000 10000 9,000 9000 9,000 9000 7,500 7500 Corporate Citizenship Free Shipping (from warehouse to buyer) No No v NO No v NO No No No Finance & Cash Flow FOOTWEAR INDUSTRY REPORT Marketing variables determined by Celebrity Appeal (sum of appeal indices for all celebrities prior-year decisions / outcomes. 185 225 135 220 125 185 115 215 under contract) Page 1 (Scoreboard) Brand Reputation (prior-year image rating) 83 83 83 83 83 83 83 83 Page 2 (EPS, ROE, Stock Price) Year 14 Year 15 Year 14 Year 15 Year 14 Year 15 Year 14 Year 15 Actual Projected Actual Projected Actual Projected Actual Projected Page 3 (Credit Rating. Image, CSRC) 2.4% 21.6% 20.0% 19.2% 17.1% 15.6% 24.5% 24.2% Page 3b (Bonus Point Awards) Internet Market Share (%% of total regional sales volume) Internet Sales Volume (000s of pairs sold to online customers) 585 630 466 500 352 373 459 526 Page 4 (Industry Overview) SOODS S/pair SOODS S/pair 5000s S/pair 5000S $/pair Page 5 (Financial Statistics) Revenue, Cost, and Profit Projections for Gross Internet Revenues 63,000 100.00 50,000 100.00 37,300 100.00 62.600 100.00 Page 6 (Production Benchmarks) Year 15 + Exchange Rate Adjustments 0.00 -120 -0.24 -407 1.08 -3,224 -6.13 Adjusted Gross Revenues 63,000 100.00 49,880 89.76 36,893 98.91 49,376 93.87 Page 7 (Operating Benchmarks) Page 8 (Celebrities, Price Trends) + Shipping Fees (paid by customer) 7.875 12.50 8,250 12.50 4,663 12.50 6.575 12.50 Net Internet Revenues 70,875 112.50 56, 130 112.26 41,556 111.41 15,951 106.37 COMPETITIVE INTELLIGENCE Cost of Pairs Sold 18.244 28.96 13,874 27.75 7.210 19.33 17,372 33.03 Warehouse Expenses 8.611 13.67 6,894 13.39 5,209 13.97 8,896 13.11 Projected Y15 Performance i Marketing Expenses 21,268 33.76 16,001 32.00 13,082 35.07 12.330 23.44 nvestor Administrative Expenses 2, 181 3.48 1,731 3.48 1.292 3.46 1,821 3.46 Scoring Measures Year 15 Expect. Operating Profit (Loss) 20,571 32.65 17,830 35.6 14,763 39.58 17,532 33.33 Earnings Per Share $3.48 $4.50 25.0% 31.8% 35.5% 31.3% Return On Equity 8.9%% Operating Profit Margin 29.0% Credit Rating At A- S/Q Rating 4.8 4.7 4.3 4.2 Estimated industry averages for these marketing Image Rating 71 75 variables are entered on the Wholesale Marketing Models Available 341 333 318 258 decision entry page. Change from Other Measures Year 15 Brand Advertising (5000s) 9,900 7.100 9.800 6.000 Net Revenues ($000s) 535,767 39.8% Competitive Assumptions Retail Price ($ per pair) $ 92.61 v $ 88.21 $ 81.41 v $ 95.81 v Net Profit ($ooos) 69.579 68.4 Search Engine Advertising ($000s) $ 6650 $ 6350 $ 7050 5 5050 v Ending Cash (5000s] 343,920 +138,078 Free Shipping None v Few v None v None v 20 90 270 Industry averages for these variables determined 98 99 102 98 Celebrity Appeal by prior-year decision entries and outcomes. 69 69 Brand ReputationF Company Wholesale Marketing Help Print Save Decisions DECISION ENTRIES - YEAR 15 Compensation & Training North America Europe-Africa Asia-Pacific Latin America Market Market Market Market Branded Production Production Facilities Year 14 Year 15 Year 14 Year 15 Year 14 Year 15 Year 14 Year 15 Marketing variables generated by S/Q Rating (weighted average) 6.0* 5.9* 5.9- 5.8* 5.9* 5.7-* 5.8* 5.8* Distribution & Warehouse production and marketing decisions in 715. 108 106 100 115 105 105 100 Models Available (weighted average) 101 Internet Marketing Wholesale Marketing Wholesale Price to Retailers ($/pair) 65.00 65.00 68.00 68.00 65.00 65.00 68.00 68.00 Wholesale Marketing Decisions Private-Label Operations Brand Advertising (5000s) 17,000 17000 15,000 15000 v 15,000 15000 v 13,500 13500 Celebrity Endorsements Mail-In Rebate ($3 to $15 per pair) 4.00 4.00 4 00 4.00 4.00 4.00 4.00 4.00 Corporate Citizenship Delivery Time (1 to 4 week delivery) 3 3 3 Finance & Cash Flow Retailer Support ($0 to $10000 per outlet) 5,750 5750 v 5,750 5750 v 4,000 4000 4,000 4000 v FOOTWEAR INDUSTRY REPORT Marketing variables determined by prior- Retail Outlets (willing to carry your brand) 4.950 4,690 2.656 2,586 2,360 2,048 2,314 2,196 Page 1 (Scoreboard) year decisions / outcomes. Celebrity Appeal (sum of appeal indices for all celebrities 185 225 135 220 125 185 115 215 Page 2 (EPS, ROE, Stock Price) under contract) Brand Reputation (prior-year image rating) 83 83 83 83 83 83 83 83 Page 3 (Credit Rating. Image, CSRC) fear 1 Year 14 Year 15 Page 3b (Bonus Point Awards) fear 14 Year 15 Year 14 Year 15 Year 15 Actual Projected Actual Projected Actua Projected Actual Projected Page 4 (Industry Overview) Wholesale Market Share (%% of total regional sales volume) 20.9% 28.7% 25.6% 25.0% 22.49 18.9% 24. 19% 23.19% Page 5 (Financial Statistics) Pairs (000s) Available for Sale (after filling internet orders) 4.428 526 1.864 915 3.84 5.158 1.848 1,742 Wholesale Demand for Branded Pairs 3,391 3,412 2.372 2,43 1.864 1,712 1.978 2,064 Page 6 (Production Benchmarks) 80 23 47 28 44 42 45 Page 7 (Operating Benchmarks) Required Inventory (needed to achieve delivery time) +113 2,909 -555 1,546 +1.723 +3,404 176 -367 Surplus (Shortfall) of Branded Pairs Page 8 (Celebrities, Price Trends) S/pair $0005 S/pair $0005 $/pair $0005 S/pair COMPETITIVE INTELLIGENCE Revenue, Cost, and Profit Projections for Gross Wholesale Revenues 2.695 85.00 60.316 68.00 111.280 85.00 115.39 68.00 Year 15 + Exchange Rate Adjustments 0.00 -145 -0.16 -1.213 -0.71 7.074 -4.17 Projected Y15 Performance i Net Wholesale Revenues 32,695 65.00 60,171 67.84 110,067 64.29 108,322 63.83 Investor Cost of Pairs Sold 14.586 28.96 24.612 27.75 33,09 19.33 56.047 83.03 Scoring Measures Year 15 Expect. Warehouse Expenses 2.598 5.17 4.336 4.89 8.647 5.05 7.127 4.20 Earnings Per Share $3.48 $4.50 36.142 71.85 27.331 30.81 26.045 15.21 24.579 14.48 Return On Equity 8.9% 25.0% Marketing Expenses A- Administrative Expenses 1.742 3.46 3.071 3.46 5.928 3.46 5.877 3.46 Credit Rating At Image Rating 71 75 Operating Profit (Loss) 22,354 -44.44 821 0.93 36,354 21.23 14,692 8.66 Change from Year 15 1.4% 13.69 Other Measures Operating Profit Margin 68.49 33.0% Net Revenues ($000s) 535,767 39.8% Competitive Assumptions S/Q Rating 4.8 v 4.7 V 4.3 v 4.2 V Net Profit ($poos) 69.579 -68.4 Model Availability 333 models 318 models 258 v models Ending Cash (5000s] 343,920 +138,078 341 | models Wholesale Price ($ per pair) 60.20 5 67.10 V 59.01 5 62.61 v of 1 170 Brand Advertising (5000s) 9900 v 5 7100 9800 6000 v Rebate Offer ($ per pair) 3.80 v 3.80 3.80 3.80 v Delivery Time (weeks) 2.4 weeks 2.4 weeks 2.4 weeks 2.4 weeks Retailer Support ($ per outlet) 5 4650 5 3450 v 5 2650 |2500 Industry averages for these variables determined by prior-year Retail Outlets 1,882 outlets 1,362 outlets 1,199 outlets 1,217 outlets decision entries and outcomes. Celebrity Appeal 98 99 102 98 Brand Reputation 69 69 69 69F Company Corporate Citizenship Help Print Save Decisions DECISION ENTRIES - YEAR 15 Compensation & Training CORPORATE SOCIAL RESPONSIBILITY AND CITIZENSHIP Branded Production Below are seven CSRC initiatives that can be used to develop a "social responsibility Which (if any) of the seven initiatives to pursue and how much to spend is entirely Production Facilities strategy" for your company. The drop-down selection boxes below offer several optional voluntary. There is no pressure to spend anything on these initiatives. The company can Distribution & Warehouse actions. perform successfully without undertaking any social responsibility initiatives. In Year 10 Internet Marketing prior company management spent no money on any of the seven optional social While undertaking CSRC initiatives is often considered "the right thing to do", one reason responsibility initiatives. Wholesale Marketing to operate in a socially responsible manner is to enhance the company's image Private-Label Operations Aggressive and astute pursuit of a social responsibility strategy over 5 years can The Help button at the top-right offers further information and guid-ance regarding the Celebrity Endorsements increase the company's Image Rating by 15 to 20 points. seven CSRC initiatives. Corporate Citizenship CSRC INITIATIVES Finance & Cash Flow Use of Recycled Boxing / Packaging $ Yesv Involves the use of recycled packaging materials to box each pair of athletic footwear at company distribution centers. Increases FOOTWEAR INDUSTRY REPORT shoe packaging costs by $0.15 per pair. Page 1 (Scoreboard) Energy Efficiency Initiatives 200 v Involves investments at each production facility for each million pairs of production capability to improve energy efficiency and use renewable energy sources. Treated as capital investment depreciated at 10% per year. Page 2 (EPS, ROE, Stock Price) Charitable Contributions $ 0 or 3% v of pretax profit Involves making tax-deductible donations to charities and charitable causes. Reported on the Income Statement under "Other Expense" (reduces pre-tax profits). Page 3 (Credit Rating. Image, CSRC) Ethics Training / Enforcement |Yes v Involves training for and development / enforcement of a code of ethics for company managers at all levels. Increases corporate administrative Page 3b (Bonus Point Awards) expenses by $400k annually. Page 4 (Industry Overview) Cafeteria and On-Site Child Care Facilities for Plant Employees Continue Involves one-time capital investment of $2.5 million and increased administrative costs of $600k Improved Working annually per facility. Results in a one-time productivity increase of 100 pairs per year at each facility. Page 5 (Financial Statistics) Conditions Additional Safety Equipment and Improved Lighting / Ventilation Continue Involves one-time capital investment of $3.0 million and increased administrative costs of $500k annually per facility. Results in a one-time productivity increase of 100 pairs per year at each facility. Page 6 (Production Benchmarks) Involves compliance monitoring of supplier employment practices and working conditions to prevent 50+ hour work weeks, Page 7 (Operating Benchmarks) Institution of a Supplier Code of Conduct Yes v substandard wages, use of underage labor, exposure to toxic materials, and lax safety practices. Entails added annual Page 8 (Celebrities, Price Trends) administrative costs of $750k per facility. Cash Outlays for Corporate Social Responsibility and Citizenship in Year 15 Total Cash Outlays (5000s) $14.874 Per Pair Sold ($ per pair) $2.18 COMPETITIVE INTELLIGENCE Company CSRC Efforts i Year 10 Year 11 Year 12 Year 13 Year 14 Industry 7 CSRC Cash Outlays Projected Y15 Performance Year 13 Year 14 Recycled Boxing / Packaging No No No No Yes High 15,449 17,650 Investor Energy Efficiency Initiatives (5000=) 500 500 125 200 Scoring Measures Year 15 Expect. Thousands of $ Average 5,380 7,806 Charitable Contributions (5000s 0 1,684 1,861 2.150 9.742 Earnings Per Share $3.48 $4.50 Low 0 Ethics Training / Enforcement No Yes Yes No Yes Return On Equity 8.9%% 25.0% High 1.41 1.50 No Yes Yes Yes Yes Credit Rating At A- Facilities Improved Working Conditions S Per Unit Sold Average 0.54 0.70 Image Rating 71 75 Safety/Lighting No Yes Yes Yes Yes Low 0.00 0.00 Change from Supplier Code of Conduct No No No No Yes Other Measures Year 15 Y14 Thousands of S 19.864 14.581 4.825 17.660 Industry 7 CSRC Cash Outlays Table Net Revenues ($000s) 535,767 39.8%% Total Cash Outlays $ Per Unit Sold 0.00 1.69 1.16 0.39 1.50 Net Profit ($000s) 89,579 68.4 Ending Cash (5000s] 343,920 138,078 Company CSRC Efforts TableF Company Compensation & Training Help Print Save Decisions DECISION ENTRIES - YEAR 15 Compensation & Training North America Europe-Africa Asia-Pacific Latin America Facility Facility Facility Facility Branded Production Industry Industry Industry Industry Production Facilities Prior-Year Compensation and Productivity Data Average Company F Average Company F Average Company F Average Company F Distribution & Warehouse Workforce Compensation Base Wages 86.368 36,442 21.018 12,682 2,862 12.425 0 (total $ per year) Incentive Pay 4.696 2,587 4.650 2.263 1,932 Internet Marketing Fringe Benefits 700 500 250 700 500 1.000 Wholesale Marketing Total Regular Compensation 41,765 39,529 25,918 15,625 15,294 12,425 Private-Label Operations Overtime Pay (included incentives) 5,921 11,453 2.213 4.245 Celebrity Endorsements Total Compensation 47,686 50,982 25.918 17,838 19.539 12,425 Corporate Citizenship 12.6% 0.0% 0.0% Incentive Pay as a % of Regular Compensation 1.2% 6.5% 17.9% 0.09 14.5% Finance & Cash Flow Workforce Productivity (pairs per worker per year) 4.834 6,251 3.475 3.488 3,896 3.872 FOOTWEAR INDUSTRY REPORT North America Europe-Africa Asia-Pacific Latin America Facility Facility Facility Facility Page 1 (Scoreboard) Minimum Wage = 21,228 Minimum Wage = 12,487 Page 2 (EPS, ROE, Stock Price) Minimum Wage = 35,380 Minimum Wage = 12,487 Compensation and Training of Base Wage (% change from prior year) +1% v 36,806 0% v +1% 12,991 0% v 0 Page 3 (Credit Rating, Image, CSRC) Production Workers Page 3b (Bonus Point Awards) Incentive Pay ($ per non-rejected pair) $ 0.50 v 2,606 $ 0.00 0 $ 0.50 v 1,923 $ 0.00 0 Page 4 (Industry Overview) Fringe Benefits ($ per year) $ 500 500 $ 0 v 0 $ 500 v 500 $ 0 v Page 5 (Financial Statistics) Total Regular Compensation ($ per year) 39,912 15,414 Page 6 (Production Benchmarks) Overtime Pay (includes incentives) 11,534 4,281 Page 7 (Operating Benchmarks) Total Compensation ($ per year) 51,446 19,695 Page 8 (Celebrities, Price Trends) Incentive Pay as % of Regular Comp. 6.5% 0.0% 12.5% 0.0% COMPETITIVE INTELLIGENCE Best Practices Training ($ per worker) $ 800 per worker $ 0 v per worker $ 400 per worker $ 0 v per worker Materials Cost Impact i Std -0.26 Sup -0.37 Std 0.00 Sup 0.00 Std -0.19 Sup -0.27 Std 0.00 Sup 0.00 Projected Y15 Performance (from cumulative BP expenditures) Investor 4( v to 1 Staff = 39 0 v to 1 Staff = 0 Scoring Measures Year 15 Expect. Supervisory Staff (ratio of production workers to supervisors) 4( |to 1 Staff = 5 0 v to 1 Staff = 0 53.48 $4.50 Ind. Avg. Co. F Ind. Avg Co. F Ind. Avg Co. F Ind. Avg. Co. F Earnings Per Share Return On Equity 25.0% Prior-Year Supervisory Compensation (3/year/supervisor) 62,933 62.436 37.09 26,119 28,016 25,888 Credit Rating A+ A- Minimum Salary = 62,438 Minimum Salary = 37,482 Minimum Salary = 26,018 Minimum Salary = 26,016 Image Rating 71 75 Supervisory Compensation (% change) +1% v 83,060 0% v +1% v 26,276 0% v Change from Other Measures Year 15 Y14 Net Revenues (soo0s] Projected Workforce Productivity (pairs per worker in Y15) 5,304 3,882 635.76 39.8% 189 1,546 Net Profit (30005] 89,579 -88.4 Number of Workers Employed (given branded production entries) Ending Cash ($0ous) 343,920 +138,078 $0005 Wpair $0005 S/pair 50005 Wpair $0005 S/pair 0.00 20 170 Cost of Labor Associated Production Production Workers Base Wages B.956 5.80 0 0.00 20,084 2.79 0 Incentive Pay 493 0.41 0.00 2.973 0.41 0.00 Per pair figures not adjusted for rejected pairs. Fringe Benefits 95 0.08 0.00 773 0.11 0.00 Overtime Pay 2.180 1.82 0.00 6.61 0.92 0.00 Total 9,724 8.10 0.00 30,448 4.23 0.00 Best Practices Training Expenditures 151 0.13 0.00 618 0.09 0.00 Supervisory Compensation (salary + benefits) 315 0.26 0.00 1.025 0. 14 0.00 Total Cost of Production Labor 10, 190 8.49 0 0.00 32,091 4.46 0.00F Company Branded Production Help Print Save Decisions DECISION ENTRIES - YEAR 15 Compensation & Training North America Europe-Africa Asia-Pacific Latin America Branded Production Branded Footwear Production Facility Facility Facility Facility Production Facilities Branded Production Materials Standard Materials % 78 % 100 % 78 % 100% Distribution & Warehouse Specs (see anticipa 's at battam of page) Superior Materials % 22 6 22 * 9% 0 v " Internet Marketing Number of Models / Styles (50 to 500 models) 100 v 50 100 50 Wholesale Marketing Enhanced Styling / Features ($000s per model) $ 34 k/model $ 0 k/model $ 40 v k/model 0 v k/model Private-Label Operations Celebrity Endorsements TOM / 6-Sigma Quality Program ($/pr. produced) $ 1.50 v per pair $ 0.00 w per pair $ 1.50 w per pair $ 0.00 per pair Corporate Citizenship Projected S/Q Rating (the style/quality rating ranges from 0.5 to 10.0 stars) 6.0* 0.0* 5.8* 0.0* Finance & Cash Flow Projected Reject Rate (percentage of pairs that will fail inspection) 1.5% 0.0% 0.9% 0.0% FOOTWEAR INDUSTRY REPORT Maximum Y15 Production Capability Without Overtime 6,000 pairs 1,000 pairs 8,000 pairs 3,000 pairs (assuming all unused facility space is filled at the beginning of the year with Page 1 (Scoreboard) production equipment) Maximum Overtime 7,200 pairs 1,200 pairs 9.600 pairs 3,600 pairs Page 2 (EPS, ROE, Stock Price) Total Branded Production Needed in Year 15 9,900 This figure is an approximation given beginning inventories, projected reject rates, and entries that currently reside on the Intemet and Wholesale Marketing (to satisfy projected demand in all four regions) before rejects) decision pages. The company must schedule production of about this many pairs to satisfy projected demand and inventory requirements. Page 3 (Credit Rating, Image, CSRC) Note: To install production equipment at the beginning of the current year in a facility that currently has unused space, go to the Production Facilities decision entry page (the next item in the Page 3b (Bonus Point Awards) decision entries menu). Page 4 (Industry Overview) North America Europe-Africa Asia-Pacific Latin America Page 5 (Financial Statistics) Facility Facility Facility Facility Page 6 (Production Benchmarks) Year 15 Production Capability Regular-Time 1,000 pairs 0 pairs 6,000 pairs 0 pairs Page 7 (Operating Benchmarks) 000s of pairs before rejects) Overtime (20% maximum) 200 0 1,200 0 Page 8 (Celebrities, Price Trends) Total Production Capability 1,200 pairs 0 pairs 7,200 pairs 0 pairs Pairs to be Manufactured in Y15 (000s) Total = 8,400 1200 pairs 0 pairs 7200 pairs 0 pairs COMPETITIVE INTELLIGENCE Branded Footwear Production Regular-Time Production 1,000 pairs 0 pairs 6,000 pairs 0 pairs Projected Y15 Performance i (000s of pairs) Overtime Production 200 0 1,200 0 Rejected Pairs (and reject rate) 18 (1.5%) 0 (0.0%) 65 (0.9%) 0 (0.0%) Investor Scoring Measures Year 15 Expect Net Branded Production 1,182 7,135 Earnings Per Share $3.48 $4.50 Production Capability Remaining for Private-Label 0 pairs 0 pairs 0 pairs 0 pairs Return On Equity 8.9% 25.0%% Credit Rating A+ A- Cost of Rejected Pairs (in $000s and $ per pair produced) $520 So.44 $0.00 $1.142 SO. 16 SO 50.00 Image Rating 71 75 $0005 S/pair $000s S/pair 5000s $/pair 50005 S/pai Change from Other Measures Year 15 Y14 Costs Associated with the Production of Materials Cost 9.934 8.40 0.00 60.158 8.43 0.00 Net Revenues (5000s) 535.767 .39.8% Branded Footwear Labor Cost (including supervisory costs) 10.190 8.62 0.00 32.091 4.50 O 0.00 89,579 -88.4 .400 2.88 .00 0.56 0 0.00 Net Profit (5000s) Enhanced Styling/Features 0.00 343.920 +138,078 TOM / 6-Sigma Quality Program .800 1.52 0.00 10.800 1.51 0.00 Ending Cash ($000s) Production Run Set-Up .000 0.85 0 0.00 2.000 0.28 0.00 Maintenance (of facilities and equipment) 3.023 2.56 75 0.00 5.820 0.82 246 0.00 Depreciation (of facilities and equipment) 5.018 4 25 638 0.00 14.968 2.10 1.388 0.00 Total Branded Production Cost 34,365 29.07 713 0.00 129,846 18.20 1,634 0.00 Anticipated Y15 Materials Prices Standard Materials | 7.80 |per pair Superior Materials | 11.0: | per pair Beginning figures represent actual materials prices from the prior year.F Company Production Facilities Help Print Save Decisions DECISION ENTRIES - YEAR 15 Compensation & Training North America Europe-Africa Asia-Pacific Latin America Branded Production Equipment for Footwear Production Facility Facility Facility Facility Production Facilities Space Available for Footwear Production Equipment in Y15 6,000 pairs 1,000 pairs 8,000 pairs 3,000 pairs Distribution & Warehouse Production Equipment in Place at Beginning of Y15 (000s) 1,000 pairs 0 pairs 6,000 pairs 0 pairs Internet Marketing Purchase of Production New (000s of pairs) 0 |pairs 0 |pairs 0 pairs 0 |pairs Equipment Wholesale Marketing Refurbished (000s of pairs) 0 pairs 0 |pairs 0 |pairs 0 pairs Private-Label Operations Sale of Existing Equipment (oldest equipment will be sold first) 0 pairs 0 vpairs 0 |pairs 0 |pairs Celebrity Endorsements Corporate Citizenship Total Footwear Production Capability in Y15 (without OT) 1,000 pairs 0 pairs 6,000 pairs 0) pairs Percentage of New / Refurbished Production Equipment 100% 0% 0% 0% 33% 679 0% 0% Finance & Cash Flow FOOTWEAR INDUSTRY REPORT North America Europe-Africa Asia-Pacific Latin America Production Improvement Options Facility Facility Facility Facility Page 1 (Scoreboard) Capital outlay ($000s) $2,500 bl $15,000 $0 Page 2 (EPS, ROE, Stock Price) Option Purchase of special equipment to Done No A reduce reject rate by 50% Projected annual cost savings at No v No v current reject rate ($000s) $10 50 5-929 Page 3 (Credit Rating, Image, CSRC) Option Layout revisions to reduce production Capital outlay ($000s) $1,600 50 $9,600 50 Page 3b (Bonus Point Awards) Done No No No B run setup costs by 50% Projected annual cost savings at $340 $40 Page 4 (Industry Overview) current model count ($000s) Page 5 (Financial Statistics) Option Purchase of special equipment to Capital outlay ($000s) $4,800 60 $28,800 50 No v No v No v No V C increase S/Q rating by 1 star Projected annual cost savings at $741 $1,809 Page 6 (Production Benchmarks) current S/Q effort ($000s) Option Robot-assisted production to increase Capital outlay ($000s) $14,400 50 $86,400 Page 7 (Operating Benchmarks) No No No v No v D worker productivity by 50% Projected annual cost savings at current production / comp. $1,80 $1,509 Page 8 (Celebrities, Price Trends) North America Europe-Africa Asia-Pacific Latin America COMPETITIVE INTELLIGENCE Space for Production Equipment (000s of pairs w/o OT) Facility Facility Facility Facility Projected Y15 Performance i Equipment Space at the End of Year 14 5,000 pairs 0 pairs 7,000 pairs 2,000 pairs Construction of Additional Space (initiated in Y14) 1,000 1,000 1,000 1,000 Investor Scoring Measures Year 15 Expect. Space Available for Equipment in Year 15 6,000 pairs 1,000 pairs 8,000 pairs 3,000 pairs Earnings Per Share $3.48 $4.50 Construction of New / Additional Space (available in Year 16) pairs pairs 0 v pairs 0 v pairs Return On Equity 8.9% 25.0% Credit Rating A+ A- Space Available for Production Equipment in Year 16 6,000 pairs 1,000 pairs 8,000 pairs 3,000 pairs Image Rating 71 75 Capital Outlays Purchase of New Equipment S Change from Other Measures Year 15 in Year 15 (3000s) Purchase of Refurbished Equipment 0 Net Revenues ($000s) 535,787 30.87 - Book Value of Equipment Sold Net Profit ($000s) 89.579 -68.4 Equipment Upgrade Options 0 0 Ending Cash (5000s] 343,920 +138,078 Energy Efficiency Initiatives 200 0 1.200 170 New / Additional Facility Space Net Capital Outlays in Year 15 S 200 S S 1,200 SF Company Distribution & Warehouse Help Print Save Decisions DECISION ENTRIES - YEAR 15 Compensation & Training North America Europe-Africa Asia-Pacific Latin America Branded Production Branded Distribution Facility Facility Facility Facility Production Facilities Pairs Available for Shipment (000s produced after rejects) 1,182 pairs 0 pairs 7,135 pairs 0 pairs Distribution & Warehouse Pairs to be Shipped from Facility to North America Warehouse 4814 0 0 (000s of pairs) Internet Marketing Europe-Africa Warehouse 1096 0 1150 0 Wholesale Marketing Asia-Pacific Warehouse 0 3768 0 Private-Label Operations 0 Celebrity Endorsements Latin America Warehouse 0 2224 Corporate Citizenship Remaining Pairs to be Shipped 4,728 pairs 0 pairs -7 pairs 0 pairs (if left unshipped, will be shipped automatically) Finance & Cash Flow North America Europe-Africa Asia-Pacific Latin America FOOTWEAR INDUSTRY REPORT Warehouse Operations Warehouse Warehouse Warehouse Warehouse Page 1 (Scoreboard) Pairs Models Pairs Models S/Q Pairs Models S/Q Pairs Models Page 2 (EPS, ROE, Stock Price) Inventory Left Over at the End of Year 14 (000s) 193 108 5.7 * 47 106 5.6 * 1,767 115 5.6* 46 105 5.5 * Page 3 (Credit Rating. Image, CSRC) Inventory Clearance (prior to Year 15 operations) 0 pairs 0 pairs 0 pairs 0 % 0 pairs Page 3b (Bonus Point Awards) $000s $/pair $0005 $/pair $0005 S/pair $0005 S/pair Page 4 (Industry Overview) Clearance Statistics Discounted Clearance Revenues 0 0.00 0.0 0.00 0.00 0 0.00 0 0.00 0 0.00 0.00 Page 5 (Financial Statistics) Direct Cost of Pairs Cleared Margin Over Direct Cost 0 0.00 0 0.00 0 0.00 0.00 Page 6 (Production Benchmarks) Pairs Models S/Q Pairs Models S/Q Pairs Models S/Q Pairs Models S/Q Page 7 (Operating Benchmarks) Beginning Inventory (000s of pairs carried over from Year 14) 193 108 5.7 * 106 5.6 * 1,76 115 5.6* 46 105 5.5 * Page 8 (Celebrities, Price Trends) Incoming Shipments from North America Facility 4,814 100 6.0 1,096 100 6.0 0 0.0 0 0 0.0 (see Note 1 below) Europe-Africa Facility 0 0.0 0 0.0 0 0.0 0 0.0 COMPETITIVE INTELLIGENCE Asia-Pacific Facility 0. 0.0 1,150 100 5.8 3,768 100 5.8 2,224 100 5.8 0.0 Projected Y15 Performance Latin America Facility 0 0.0 i Pairs Available for Sale in Year 15 (see Nate 2 below) 5,007 101 5.9* 2,293 100 5.8 * 5,535 105 5.7* 2,270 100 5.8 * Investor Scoring Measures Year 15 Expect. Projected Demand (given branded marketing decision entries) 4,042 2,933 2,085 2,590 Earnings Per Share $3.48 $4.50 Required Inventory (needed to achieve delivery time) 23 (3-week delivery) 28 (3-week delivery) 42 (3-week delivery) 45 (3-week delivery) Return On Equity 8.9% 25.0% Projected Inventory Surplus (Shortfall) +942 (minimal -868 (minimal +3,408 (minimal) 365 (minimal) Credit Rating At A- Image Rating 71 75 Projected Distribution and Warehouse Costs $000s S/pair $000s S/pair 5000s S/pair 5000s $/pai 0.00 -0. 11 0.00 6,259 2.76 Change from Exchange Rate Cost Adjustment (an incoming shipments -161 Other Measures Year 15 Y14 Distribution and Warehouse Costs Freight on Footwear Shipments 863 0.83 2,736 1.93 3,764 0.68 4.444 1.96 Net Revenues ($000s) 535,767 39.8%% Tariffs on Pairs Imported 0.00 8,208 5.80 0.00 22,220 9.80 Net Profit ($000s) 69.57 -68.4 Inventory Storage (on Y14 inventory) 153 0.13 24 0.02 1.745 0.32 23 0.01 Ending Cash (5000s) 343,920 +138,078 Packaging / Shipping (iNet + wholesale) 10,057 8.70 10,006 7.07 11.111 2.01 13,000 5.73 170 Warehouse Lease / Maintenance 1,000 0.87 1,000 0.71 1,000 0.18 1,000 0.44 Total Dist. and Whse. Costs 12,173 10.53 21,974 15.53 17,620 3.19 40,687 17.94