Table of Contents

1. Are you more or less optimistic about the U.S. economy compared to last quarter?	1
1b. Rate your optimism about the U.S. economy on a scale from 0-100, with 0 being the least optimistic and 
100 being the most optimistic.	2
2. Are you more or less optimistic about the financial prospects for your own company compared to last quarter?	3
2b. Rate your optimism about the financial prospects for your own company on a scale from 0-100, with 0 being the least 
optimistic and 100 being the most optimistic.	4
3. What are the top three external concerns facing your corporation? (rank #1, #2, #3)	5
3. What are the top three external concerns facing your corporation? REVERSE SCALE & WEIGHTED BY NUMBER 
OF RESPONDENTS (Higher number = greater weighted importance)	6
3. What are the top three external concerns facing your corporation? - Other specified	7
4. What are the top three internal, company-specific concerns your corporation faces? (rank # 1, #2, #3)	9
4. What are the top three internal, company-specific concerns your corporation faces?
REVERSE SCALE & WEIGHTED BY NUMBER OF RESPONDENTS (Higher number = greater weighted importance)	10
4. What are the top three internal, company-specific concerns your corporation faces? - Other specified	11
5. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months? 
(e.g., +3%, -2%, etc.) [Leave blank if not applicable]	13
5. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months 
for:   [Unweighted - Sorted]	14
5. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months?
 [All Companies - Windsorized - Revenue Weighted - Sorted]	15
5. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months?
 [All Companies - Windsorized - Employee Weighted - Sorted]	16
5. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months?
 [Public Companies - Windsorized – Revenue Weighted]	17
6a. In the past year, has your company taken steps to reduce the impact of rising fuel costs?	18
6b. If yes, what steps has your company taken? (Check all that apply)	19
Steps to reduce the impact of rising fuel costs - Other specified	20
Switching fuel source from ? to ?	21
7. How has your company responded to other recent non-fuel commodity and raw materials price increases? 
(check all that apply)	22
7. How has your company responded to other recent non-fuel commodity and raw materials price increases? - Other	23
8a. Has your company been affected by the cost or availability of credit?	24
8b. If yes, in what ways has your company been affected by the credit market turmoil? (check all that apply)	25
8b. If yes, in what ways has your company been affected by the credit market turmoil? - Other specified	26
8c. Increased cost of credit - How many basis points increase since summer 2007?	27
8a. Has your company been affected by the cost or availability of credit? - by - Credit Rating	28
8b. In what ways has your company been affected by the credit market turmoil? - by – Credit Rating	29
8c. Increased cost of credit: How many basis points increase? - by - Credit Rating	30
9a. Have the recent credit market and economic conditions caused your company to take the following actions over 
the past six months?	31
9a. Have the recent credit market and economic conditions caused your company to take action over the past six 
months? - Other action specified	32
9b. Do you anticipate that credit market and economic conditions will cause your company to take the following 
actions over the next six months?	33
9b. Do you anticipate that credit market and economic conditions will cause your company to take action over the 
next six months? - Other action specified	34
9a. Have the recent credit market and economic conditions caused your company to take the following actions over 
the past six months? - Only companies affected by the cost or availability of credit	35
9b. Do you anticipate that credit market and economic conditions will cause your company to take the following 
actions over the next six months? - Only companies affected by the cost or availability of credit	36
10. Do you expect any change in your cost of funds in the next six months?	37
11. On June 3, 2008 the annual yield on 10-yr treasury bonds was 4.0%. Please complete the following:	38
Revenue Weighted: 11. On June 3, 2008 the annual yield on 10-yr treasury bonds was 4.0%. Please complete the following:	39
Employee Weighted: 11. On June 3, 2008 the annual yield on 10-yr treasury bonds was 4.0%. Please complete the following:	40
12. When do you expect the U.S. economy to begin recovery?	41
12. Estimated number of months to beginning of recovery	42

Industry	43
Industry (Other specified)	44
Sales Revenue	46
Weighted Sales Revenue (Millions)	47
Number of Employees	48
Weighted Number of Employees	49
Headquarters	50
Ownership	51
Foreign Sales	52

1

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

1. Are you more or less optimistic about the U.S. economy compared to last quarter?

	 	Number	Percent	95% CI
	3=More optimistic	98	21.1 %	± 3.7 %
	2=No change	123	26.5 %	± 4.0 %
	1=Less optimistic	244	52.5 %	± 4.5 %
	Total	465	100.0 %

	Mean = 1.7
	SD = 0.8

	Missing Cases = 3 
	Response Percent = 99.4 %

2

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

1b. Rate your optimism about the U.S. economy on a scale from 0-100, with 0 being the least optimistic and 100 being the most optimistic.

	Minimum = 0

	Maximum = 99

	Mean = 51.78

	Median = 50

	Variance (Unbiased) = 299.61

	Standard Deviation (Unbiased) = 17.31

	Standard Error Of The Mean  = 0.84

	95 Percent Confidence Interval Around The Mean = 50.13 - 53.42

	99 Percent Confidence Interval Around The Mean = 49.61 - 53.94

Quartiles

	 1 = 40
	 2 = 50
	 3 = 65

Valid Cases = 425 
Missing Cases = 43 
Response Percent = 90.8%

3

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

2. Are you more or less optimistic about the financial prospects for your own company compared to last quarter?

	 	Number	Percent	95% CI
	3=More optimistic	168	35.9 %	± 4.4 %
	2=No change	131	28.0 %	± 4.1 %
	1=Less optimistic	169	36.1 %	± 4.4 %
	Total	468	100.0 %

	Mean = 2.0
	SD = 0.8

	Missing Cases = 0 
	Response Percent = 100.0 %

4

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

2b. Rate your optimism about the financial prospects for your own company on a scale from 0-100, with 0 being the least optimistic and 100 being the most optimistic.

	Minimum = 0

	Maximum = 100

	Mean = 63.41

	Median = 70

	Variance (Unbiased) = 433.45

	Standard Deviation (Unbiased) = 20.82

	Standard Error Of The Mean  = 1.01

	95 Percent Confidence Interval Around The Mean = 61.43 - 65.38

	99 Percent Confidence Interval Around The Mean = 60.81 - 66.00

Quartiles

	 1 = 50
	 2 = 70
	 3 = 80

Valid Cases = 427 
Missing Cases = 41 
Response Percent = 91.2%

5

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

3. What are the top three external concerns facing your corporation? (rank #1, #2, #3)

(N=468)

	Mean & SD	1st	2nd	3rd	Total	
	1.7	35	15	17	67
Other:	0.8	7.5%	3.2%	3.6%	14.3%

	1.8	110	54	62	226
Consumer demand	0.8	23.5%	11.5%	13.2%	48.3%

	1.9	87	87	53	227
Cost of fuel	0.8	18.6%	18.6%	11.3%	48.5%

	1.9	65	58	41	164
Credit markets/interest rates	0.8	13.9%	12.4%	8.8%	35.0%

	2.0	36	46	32	114
Cost of non-fuel commodities	0.8	7.7%	9.8%	6.8%	24.4%

	2.0	42	52	41	135
Housing market fallout	0.8	9.0%	11.1%	8.8%	28.8%

	2.0	24	25	26	75
Devaluation of the dollar	0.8	5.1%	5.3%	5.6%	16.0%

	2.1	4	11	6	21
International political instability	0.7	0.9%	2.4%	1.3%	4.5%

	2.2	8	15	18	41
Foreign competition	0.8	1.7%	3.2%	3.8%	8.8%

	2.3	9	20	22	51
Financial regulation	0.7	1.9%	4.3%	4.7%	10.9%

	2.3	4	11	13	28
Environmental regulation	0.7	0.9%	2.4%	2.8%	6.0%

	2.3	21	42	64	127
Inflation	0.7	4.5%	9.0%	13.7%	27.1%

	2.4	2	6	8	16
Trade policies and trade agreements	0.7	0.4%	1.3%	1.7%	3.4%

	2.4	20	24	59	103
Upcoming change in U.S. administration	0.8	4.3%	5.1%	12.6%	22.0%

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Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

3. What are the top three external concerns facing your corporation? REVERSE SCALE & WEIGHTED BY NUMBER OF RESPONDENTS (Higher number = greater weighted importance)

	Mean	SD	Total

Consumer demand	1.07	1.25	467

Cost of fuel	1.04	1.20	467

Credit markets/interest rates	0.75	1.13	467

Housing market fallout	0.58	1.00	467

Cost of non-fuel commodities	0.50	0.95	467

Inflation	0.45	0.84	467

Upcoming change in U.S. administration	0.36	0.77	467

Other:	0.33	0.86	467

Devaluation of the dollar	0.32	0.80	467

Financial regulation	0.19	0.60	467

Foreign competition	0.15	0.55	467

Environmental regulation	0.10	0.44	467

International political instability	0.09	0.42	467

Trade policies and trade agreements	0.06	0.32	467

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Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

3. What are the top three external concerns facing your corporation? - Other specified

Availability of shipping	
availability of foreign production capabilities	
Change in Govt Contract	
clients cutting prices	
commodity prices	
Competition	
competition from new market entries	
computer security	
Construction industry	
consumer credit	
Cost of Steal	
Democrat Party	
DJIA and S&P 500	
domestic competition	
domestic competition	
Economic Policies in China (rising costs of our imports)	
Economic Slowdown	
Equity markets	
Fall in demand	
FDA Regulations	
FDA regulation	
FDA regulation, trends in drug payor reimbursement,	
Federal Regulations	
Geneal Economy	
general macroeconomic weaknessa	
Government Regulation	
Government Regulation	
Government Spending	
Government regulation	
healthcare regulation	
Increase Oil/ Grain Based Raw Materials	
increase of uninsured patients	
Increased competition from players coming from other sectors	
industry actors	
industry competition	
Industry market environment	
industry regulation	
insurance pricing cycle	
Labor Market	
Labor Pool	
Legislation	
Legislative Regulation	
Market changes	
Materal cost increases	
Medical Expenses	
Medicare funding	
Medicare/Medicaid regulations	
New business opportunities	
philanthropic capacity	
Political regulation	
Potential Increases in Tax Rates	
Public view of the stock market	

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Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

3. What are the top three external concerns facing your corporation? - Other specified

Raw material supplies	
Regulations in general	
regulation in general	
Regulatory (FDA, CE)	
Regulatory Requirements	
State  regulations	
Steel Prices	
Steel prices	
Talent	
technical changes	
the impact of client's efforts to reduce operating costs in a contracting economy	
travel costs and difficulties	
Truck/SUV demand falloff	
Volatility of Steel	
Weather (Drought in southeast)	

9

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

4. What are the top three internal, company-specific concerns your corporation faces? (rank #1, #2, #3)

(N=468)

	Mean & SD	1st	2nd	3rd	Total	
	1.8	45	31	21	97
Balance sheet weakness	0.8	9.6%	6.6%	4.5%	20.7%

	1.8	126	87	75	288
Attracting and retaining qualified employees	0.8	26.9%	18.6%	16.0%	61.5%

	1.9	99	92	70	261
Ability to forecast results	0.8	21.2%	19.7%	15.0%	55.8%

	2.0	17	21	15	53
Protection of intellectual property	0.8	3.6%	4.5%	3.2%	11.3%

	2.0	41	62	47	150
Supply chain risk	0.8	8.8%	13.2%	10.0%	32.1%

	2.1	59	69	71	199
Cost of health care	0.8	12.6%	14.7%	15.2%	42.5%

	2.1	19	19	29	67
Other:	0.8	4.1%	4.1%	6.2%	14.3%

	2.2	36	57	63	156
Managing IT systems	0.8	7.7%	12.2%	13.5%	33.3%

	2.3	11	5	21	37
Personal job security	0.9	2.4%	1.1%	4.5%	7.9%

	2.3	10	15	27	52
Data security	0.8	2.1%	3.2%	5.8%	11.1%

	2.4	4	8	14	26
Auditing costs	0.8	0.9%	1.7%	3.0%	5.6%

10

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

4. What are the top three internal, company-specific concerns your corporation faces? REVERSE SCALE & WEIGHTED BY NUMBER OF RESPONDENTS (Higher number = greater weighted importance)

	Mean	SD	Total

Attracting and retaining qualified employees	1.34	1.24	467

Ability to forecast results	1.18	1.21	467

Cost of health care	0.83	1.10	467

Supply chain risk	0.63	1.01	467

Managing IT systems	0.61	0.97	467

Balance sheet weakness	0.47	0.98	467

Other:	0.27	0.72	467

Protection of intellectual property	0.23	0.70	467

Data security	0.19	0.59	467

Personal job security	0.14	0.53	467

Auditing costs	0.09	0.41	467

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Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

4. What are the top three internal, company-specific concerns your corporation faces? - Other specified

3 managing growth	
ability to increase prices	
ability to set and execute strategy	
affordable benefits	
AR/Credit Risk	
bonding capacity (construction)	
borrowing costs	
Budget	
business development	
capital borrowing	
CEO change	
Compensation Costs	
consumer credit	
cost control	
cost of treating uninsured patients	
cost pressures	
credit available	
credit performance	
customer credit risk	
Customer risk	
Data quality & timeliness	
demand	
Desparate Competition	
effectively managing business with reduced labor and capex levels	
Efficiency	
Employee Comp for rising fuel costs	
Employee Costs of Living	
Financial Security of Suppliers	
fixed costs	
governance	
growth strategy	
Incompetent Sr. Mgmt.	
increased regulation	
Increasing Cost Demands from our customers	
Indirect auditing cost resulting from the auditors asking non-value-added questions	
Inflationary costs	
Institutional lethargy	
interest rates	
Inventory Management	
Inventory levels	
Lower Margins	
M&A	
Major budget reductions	
Management Succession	
margins	
market dissolution	
mgmt-board relations	
new competitors	
New product development	
ownership transition	
Performance Reporting	
private healthcare insurance, being based outside the USA	

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Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

4. What are the top three internal, company-specific concerns your corporation faces? - Other specified

QUALITY asset growth and profitability	
Quality maintenance	
quality of management	
R&D risk	
Raw Material Cost	
Regulatory Compliance	
Retirement key personnel	
revenue uncertainty	
sales declines	
Short term focus of private equity ownership	
taking advantage of growth opportunities	
Technical challenges	
utility costs	
Worker's Comp Fraud	

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Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

5. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months? (e.g., +3%, -2%, etc.) [Leave blank if not applicable]

	Mean	SD	95% CI	Median	Minimum	Maximum	Total

Health care costs	8.27	7.68	7.52 - 9.02	8	-50	100	400

Number of foreign/off-shore outsourced
employees	7.45	33.84	2.77 - 12.13	0	-50	400	201

Technology spending	5.65	21.05	3.43 - 7.87	3	-90	200	345

Capital spending	5.47	34.85	1.90 - 9.04	2	-90	400	366

Earnings	4.96	30.83	1.77 - 8.15	4	-75	300	359

Prices of your products	4.14	8.29	3.31 - 4.98	4	-50	60	381

Wages/Salaries	3.74	8.58	2.91 - 4.56	3	-50	100	414

Share repurchases	3.64	26.46	-0.55 - 7.84	0	-50	300	153

Cash on the balance sheet	3.07	26.98	0.02 - 6.12	0	-75	200	301

Number of domestic employees overall	2.99	24.71	0.47 - 5.51	0	-90	300	369

Marketing/advertising spending	2.53	13.92	1.00 - 4.07	0	-50	150	317

Productivity (output per hour worked)	2.22	6.25	1.52 - 2.93	2	-75	35	303

Dividends	1.21	21.34	-3.79 - 6.21	0	-98	130	70

Number of domestic employees in accounting/
finance	0.13	10.05	-0.96 - 1.22	0	-80	50	326

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Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

5. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months for:   [Unweighted - Sorted]

(N=468)

	Mean & SD	Positive	Zero	Negative	Total
	  	1	0	-1	  	
	0.9	381	13	6	400
Health care costs	0.3	95.3%	3.3%	1.5%	100.0%

	0.9	381	21	12	414
Wages/Salaries	0.4	92.0%	5.1%	2.9%	100.0%

	0.7	293	44	44	381
Prices of your products	0.7	76.9%	11.5%	11.5%	100.0%

	0.6	201	75	27	303
Productivity (output per hour worked)	0.7	66.3%	24.8%	8.9%	100.0%

	0.5	216	83	48	347
Technology spending	0.7	62.2%	23.9%	13.8%	100.0%

Number of foreign/off-shore outsourced	0.4	82	116	5	203
employees	0.5	40.4%	57.1%	2.5%	100.0%

	0.3	220	36	108	364
Earnings	0.9	60.4%	9.9%	29.7%	100.0%

	0.3	199	74	96	369
Capital spending	0.9	53.9%	20.1%	26.0%	100.0%

	0.3	147	117	58	322
Marketing/advertising spending	0.7	45.7%	36.3%	18.0%	100.0%

	0.3	24	42	6	72
Dividends	0.6	33.3%	58.3%	8.3%	100.0%

	0.2	129	100	74	303
Cash on the balance sheet	0.8	42.6%	33.0%	24.4%	100.0%

	0.2	174	86	109	369
Number of domestic employees overall	0.9	47.2%	23.3%	29.5%	100.0%

	0.1	23	125	8	156
Share repurchases	0.4	14.7%	80.1%	5.1%	100.0%

Number of domestic employees in	0.1	95	167	64	326
accounting/finance	0.7	29.1%	51.2%	19.6%	100.0%

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Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

5. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months?  [All Companies - Windsorized - Revenue Weighted - Sorted] 

	Mean	SD	95% CI	Median	Minimum	Maximum

Prices of your products	4.10	6.46	4.00 - 4.21	4	-12.10	20.39

Technology spending	3.38	11.15	3.19 - 3.57	2	-35.60	46.91

Cash on the balance sheet	3.27	17.03	2.96 - 3.58	0	-49.80	55.95

Share repurchases	2.42	9.63	2.20 - 2.64	0	-48.20	55.50

Earnings	2.36	15.91	2.11 - 2.62	5	-55.50	65.39

Capital spending	2.25	17.90	1.96 - 2.53	1	-62.80	73.78

Marketing/advertising spending	0.17	7.59	0.04 - 0.31	0	-24.80	29.81

Dividends	-0.71	11.35	-1.00 - -0.42	0	-40.60	43.04

16

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

5. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months?  [All Companies - Windsorized - Employee Weighted - Sorted]

	Mean	SD	95% CI	Median	Minimum	Maximum

Health care costs	6.55	3.54	6.49 - 6.60	6	-6.78	23.32

Number of foreign/off-shore outsourced employees	4.55	8.78	4.38 - 4.72	2	-50	73.78

Wages/Salaries	3.10	3.27	3.06 - 3.15	3	-13.10	20.56

Productivity (output per hour worked)	2.17	4.08	2.10 - 2.24	2	-10	14.47

Number of domestic employees overall	-0.17	10.15	-0.33 - -0.02	0	-45.40	51.42

Number of domestic employees in accounting/finance	-0.75	5.74	-0.84 - -0.65	0	-19.60	19.83

17

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

5. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months?  [Public Companies - Windsorized - Revenue Weighted] 

	Mean	SD	95% CI	Median	Minimum	Maximum

Earnings	2.85	12.30	2.55 - 3.14	5	-55.50	65.39

Cash on the balance sheet	0.49	11.80	0.16 - 0.82	0	-49.80	55.95

Dividends	-1.41	11.57	-1.73 - -1.09	0	-40.60	20

Share repurchases	3.64	12.40	3.26 - 4.02	0	-48.20	55.50

18

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

6a. In the past year, has your company taken steps to reduce the impact of rising fuel costs?

	 	Number	Percent	95% CI
	No	176	40.1 %	± 4.4 %
	Yes	263	59.9 %	± 4.5 %
	Total	439	100.0 %

	Missing Cases = 29 
	Response Percent = 93.8 %

19

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

6b. If yes, what steps has your company taken? (Check all that apply)

	 	Number	Percent	95% CI
	Reducing business travel	119	45.2 %	± 6.1 %
	Passed on price increases by raising our prices	119	45.2 %	± 6.1 %
	Improving facility management [e.g., reduced lighting]	113	43.0 %	± 6.0 %
	Using more efficient shipping methods [e.g., consolidating
	   shipments]	93	35.4 %	± 5.8 %
	Reduced our margins	61	23.2 %	± 5.1 %
	Telecommuting	60	22.8 %	± 5.1 %
	Using more efficient production process	59	22.4 %	± 5.1 %
	Using more fuel-efficient fleet	53	20.2 %	± 4.9 %
	Negotiated fixed price fuel contracts	45	17.1 %	± 4.6 %
	Hedging	33	12.5 %	± 4.0 %
	Other	17	6.5 %	± 3.0 %
	Switching fuel source	9	3.4 %	± 2.2 %
	Total	781

	Number of Cases =263
	Number of Responses =781
	Average Number Of Responses Per Case = 3.0
	Number Of Cases With At Least One Response =262
	Response Percent = 99.6 %

20

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

Steps to reduce the impact of rising fuel costs - Other specified 

get help from consultant on energy spend	
green technology & virtualization	
New HVAC System	
supply chain effeciencies in delivery	
walking	
Adding Fuel Surcharges	
formed energy conservation committee	
solar energy	
reduction of all travel	
Our fuel surcharge program has been in place for more than one year	
OTR truck fleet with APU to improve mpg.	
use of routing software	
purchasing consolidation	
charge freight to customers	
Passed to customer	
fuel surcharges	
Teleconferencing	

21

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

Switching fuel source from ? to ?

From	To	
Diesel	Bio-Diesel	
natural gas	electricity	
purchased electricity	Wind Generated electricity	
Purchased steam	Gas Plant	
natural gas	waste fiber/biomass	
diesel	electric	
Oil	Natural Gas	
natural gas	biomass	
---	---	

22

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

7. How has your company responded to other recent non-fuel commodity and raw materials price increases? (check all that apply)

	 	Number	Percent	95% CI
	We have passed on price increases by raising our prices	213	45.5 %	± 4.5 %
	We have reduced our margins	170	36.3 %	± 4.4 %
	We have sought alternative sources and/or raw materials	111	23.7 %	± 3.9 %
	We have made no changes	85	18.2 %	± 3.5 %
	We have negotiated fixed price contracts with our vendors	82	17.5 %	± 3.5 %
	We have not been impacted	62	13.2 %	± 3.1 %
	We have hedged commodity prices	50	10.7 %	± 2.8 %
	Other	14	3.0 %	± 1.6 %
	Total	787

	Number of Cases =468
	Number of Responses =787
	Average Number Of Responses Per Case = 1.7
	Number Of Cases With At Least One Response =452
	Response Percent = 96.6 %

23

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

7. How has your company responded to other recent non-fuel commodity and raw materials price increases? - Other specified 

Consider 4 day work week	
our increase travel expenses are passed on to our clients	
recently renegotiated a recycling contract that generates over 10k a year	
off-shore sourcing	
cut out middle suppliers in the chain	
change menu to lower cost of ingredients	
Current Contacts Do No Allow Pass-Thru of increased cost	
we buy/sell commodities & adjust timing of purchases and price according to replacement cost	
N/A financial services industry - insurance	
Tried to manage utilization more effectively	
Contracts have escalator clauses for certain raw material prices changes	
material costs lowered cheaper brands	
canceled suppliers	
Foreign Corporation	
N/A	

24

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

8a. Has your company been affected by the cost or availability of credit?

	 	Number	Percent	95% CI
	1=No	297	63.9 %	± 4.4 %
	2=Yes, somewhat	107	23.0 %	± 3.8 %
	3=Yes, very much	61	13.1 %	± 3.1 %
	Total	465	100.0 %

	Mean = 1.5
	SD = 0.7

	Missing Cases = 3 
	Response Percent = 99.4 %

25

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

8b. If yes, in what ways has your company been affected by the credit market turmoil? (check all that apply)

	 	Number	Percent	95% CI
	Decreased availability of credit	97	57.7 %	± 7.6 %
	Increased cost of credit	74	44.0 %	± 7.6 %
	Other	44	26.2 %	± 6.7 %
	Experienced difficulty initiating or renewing a bank credit
	   line	43	25.6 %	± 6.7 %
	Total	258

	Number of Cases =168
	Number of Responses =258
	Average Number Of Responses Per Case = 1.5
	Number Of Cases With At Least One Response =161
	Response Percent = 95.8 %

26

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

8b. If yes, in what ways has your company been affected by the credit market turmoil? - Other specified

+70 bps for 10 yr -200 bps for 3 months net - 75 b	
Ability to place credit in secondary markets	
actually received better credit terms	
actually we are doing more business	
AMPS Refinancing tightness	
auction rate security market collapse	
can't liquidate ars	
Cancelation of bond issue	
consumer mortgage market	
current debt	
customer credit	
customer purchases delayed due to lack of credit	
Customers have had rduced ability to borrow	
customers inability to raise debt and pay us	
decreased hedge fund returns	
Did not refinance high cost debt	
EFFECTED BY AUCTION RATE SECURITY FAILURES	
financial serv client demand is soft	
guarantees	
Had to avoid modifications to credit agreements	
I has impacted our customers and thus us.	
Impact of real estate brokerage revs	
Implemented swap to fix LIBOR based debt	
inability to obtain on non-recourse basis	
Increase risk of customer default	
increase regulatory scrutiny	
Increased availability and reduced costs	
less demand for our products servicing businesses	
Limited potential buyers of the company	
lower cost of credit	
Lower leverage	
Lower LTV's on real-estate financing	
Lower margins on loans made	
Mark to market losses in CMBS	
More difficult to collect	
more fees to renew also	
more restrictive terms	
Our clients have less credit	
Planned credit increases difficult to obtain	
Rating agency requirements to increase liquidity	
Reduced growth of new emerging customers	
Reduced housing market	
Reduced number of buyers for commercial real estat	
stricter covenants	
Suspended IPO	
we're a bank	

27

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

8c. Increased cost of credit - How many basis points increase since summer 2007?

	Minimum = 2

	Maximum = 700

	Mean = 141.33

	Median = 100

	Variance (Unbiased) = 23996.35

	Standard Deviation (Unbiased) = 154.91

	Standard Error Of The Mean  = 19.07

	95 Percent Confidence Interval Around The Mean = 103.96 - 178.71

	99 Percent Confidence Interval Around The Mean = 92.23 - 190.43

Quartiles

	 1 = 50
	 2 = 100
	 3 = 200

Valid Cases = 66 
Missing Cases = 8 
Response Percent = 89.2%

28

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

8a. Has your company been affected by the cost or availability of credit? - by - Credit Rating

N=184		Total		Credit Rating	
		 		AAA/AA	A	BBB/BB	B or Less	
		 		A	B	C	D	
								
Total		184		81	39	48	16	
		100.0%		44.0%	21.2%	26.1%	8.7%	
								
1=No		115		60	23	29	3	
		62.5%		74.1%	59.0%	60.4%	18.8%	
				D	D	D	ABC	
								
2=Yes, somewhat		41		14	11	12	4	
		22.3%		17.3%	28.2%	25.0%	25.0%	
								
3=Yes, very much		28		7	5	7	9	
		15.2%		8.6%	12.8%	14.6%	56.3%	
				D	D	D	ABC	
								
Mean		1.53		1.35	1.54	1.54	2.38	
SD		0.75		0.64	0.72	0.74	0.81	
				D	D	D	ABC	

Significance Tests Between Columns:   Lower case: p<.05   Upper case: p<.01

29

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

8b. In what ways has your company been affected by the credit market turmoil? - by - Credit Rating

N=69		Total		Credit Rating	
		 		AAA/AA	A	BBB/BB	B or Less	
		 		A	B	C	D	
								
Total		69		21	16	19	13	
		100.0%		30.4%	23.2%	27.5%	18.8%	
								
Increased cost of credit		38		10	13	6	9	
		55.1%		47.6%	81.3%	31.6%	69.2%	
				b	aC	Bd	c	
								
Decreased availability of		37		10	8	9	10	
credit		53.6%		47.6%	50.0%	47.4%	76.9%	
								
Other		20		8	2	8	2	
		29.0%		38.1%	12.5%	42.1%	15.4%	
								
Experienced difficulty
initiating or renewing a bank		
14		
2	
3	
2	
7	
credit line		20.3%		9.5%	18.8%	10.5%	53.8%	
				D		d	Ac	

Significance Tests Between Columns:   Lower case: p<.05   Upper case: p<.01

30

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

8c. Increased cost of credit: How many basis points increase? - by - Credit Rating

N=62		Total		Credit Rating	
				AAA/AA	A	BBB/BB	B or Less	
				A	B	C	D	
								
Number		62		20	16	14	12	
Percent		100.0%		32.3%	25.8%	22.6%	19.4%	
								
How many basis points increase since summer 2007?	
								
N		55		15	14	14	12	
Mean		142.64		85.67	93.71	90.93	331.25	
SD		158.74		59.73	86.25	98.51	221.85	
				D	D	D	ABC	

Significance Tests Between Columns:   Lower case: p<.05   Upper case: p<.01

31

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

9a. Have the recent credit market and economic conditions caused your company to take the following actions over the past six months?

(N=468)

	Yes	No	Total	
	158	295	453
Delay, reduce or cancel new investment plans	34.9%	65.1%	100.0%

	166	291	457
Delay, reduce or cancel hiring plans	36.3%	63.7%	100.0%

	157	295	452
Initiate a substantial cost cutting program	34.7%	65.3%	100.0%

	14	52	66
Other:	21.2%	78.8%	100.0%

32

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

9a. Have the recent credit market and economic conditions caused your company to take action over the past six months? - Other action specified 

Canceled bond issue in NY	
re-evaluate our invetment policies	
Filed for Bankruptcy	
impact is focused on the specific product lines impacted by economy	
Evaluate contracts, outsourcing plans, slow hiring	
Controlling overtime	
na	
seek alt higher cost sources	
shorten our credit terms	
Open a new office	
Investigate real-estate financing alternatives	
Cancel planned sale of the company	
Defer sale of company	
Austerity regarding travel costs	
reduce inventory levels	
Recent issuance may have been larger	
Facility Closure	
initiate a cost cutting program	
develop restructuring alternatives / plans	
change accounts receovable terms and become more agressive in collection activity	
Refinance and increase debt	

33

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

9b. Do you anticipate that credit market and economic conditions will cause your company to take the following actions over the next six months?

(N=468)

	Yes	No	Total	
	173	273	446
Delay, reduce or cancel new investment plans	38.8%	61.2%	100.0%

	190	265	455
Delay, reduce or cancel hiring plans	41.8%	58.2%	100.0%

	180	266	446
Initiate a substantial cost cutting program	40.4%	59.6%	100.0%

	8	49	57
Other:	14.0%	86.0%	100.0%

34

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

9b. Do you anticipate that credit market and economic conditions will cause your company to take action over the next six months? - Other action specified 

Plan to issue bonds in foreign markets	
Shut the doors	
Manage costs in relation to revenue growth	
na	
reduce borrowing capacity	
Full impacts are not yet known / understood in the financial sector.	
Focus on better Inventory Management	
Review all internal procedures and practices	
downsizing dramatically	
in-court (Ch 11) or out-of-court restructuring	
9a programs cross over time frame	

35

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

9a. Have the recent credit market and economic conditions caused your company to take the following actions over the past six months? - Only companies affected by the cost or availability of credit

(N=168)

	Yes	No	Total	
	87	77	164
Delay, reduce or cancel new investment plans	53.0%	47.0%	100.0%

	78	87	165
Delay, reduce or cancel hiring plans	47.3%	52.7%	100.0%

	78	85	163
Initiate a substantial cost cutting program	47.9%	52.1%	100.0%

	8	9	17
Other:	47.1%	52.9%	100.0%

36

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

9b. Do you anticipate that credit market and economic conditions will cause your company to take the following actions over the next six months? - Only companies affected by the cost or availability of credit

(N=168)

	Yes	No	Total	
	91	69	160
Delay, reduce or cancel new investment plans	56.9%	43.1%	100.0%

	93	71	164
Delay, reduce or cancel hiring plans	56.7%	43.3%	100.0%

	87	73	160
Initiate a substantial cost cutting program	54.4%	45.6%	100.0%

	7	9	16
Other:	43.8%	56.3%	100.0%

37

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

10. Do you expect any change in your cost of funds in the next six months?

	 	Number	Percent	95% CI
	-1=Decrease	28	6.0 %	± 2.2 %
	0=Stay the same	261	56.4 %	± 4.5 %
	+1=Increase	174	37.6 %	± 4.4 %
	Total	463	100.0 %

	Mean = 0.3
	SD = 0.6

	Missing Cases = 5 
	Response Percent = 98.9 %

38

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

11. On June 3, 2008 the annual yield on 10-yr treasury bonds was 4.0%. Please complete the following:

	Mean	SD	95% CI	Median	Minimum	Maximum	Total

Over the next 10 years, I expect the average
annual S&P 500 return will be: There is a 1-in-10
chance it will be less than:	2.62	4.65	2.17 - 3.07	3	-40	20	406

Over the next 10 years, I expect the average
annual S&P 500 return will be: Expected return:	8.14	7.48	7.43 - 8.85	7	0	100	426

Over the next 10 years, I expect the average
annual S&P 500 return will be: There is a 1-in-10
chance it will be greater than:	12.12	11.56	10.99 - 13.24	10	2.30	100	405

Over the next year, I expect the average annual
S&P 500 return will be: There is a 1-in-10 chance it
will be less than:	-2.74	6.92	-3.42 - -2.07	0	-35	20	404

Over the next year, I expect the average annual
S&P 500 return will be: Expected return:	4.19	6.08	3.61 - 4.77	4	-20	100	423

Over the next year, I expect the average annual
S&P 500 return will be: There is a 1-in-10 chance it
will be greater than:	9.04	7.09	8.35 - 9.73	8	0	100	404

39

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

Revenue Weighted: 11. On June 3, 2008 the annual yield on 10-yr treasury bonds was 4.0%. Please complete the following:

	Mean	SD	95% CI	Median	Minimum	Maximum

Over the next 10 years, I expect the average annual S&P
500 return will be: There is a 1-in-10 chance it will be less
than:	2.65	3.35	2.60 - 2.69	3	-6.49	11.73

Over the next 10 years, I expect the average annual S&P
500 return will be: Expected return:	7.47	3.33	7.42 - 7.52	7	0	22.80

Over the next 10 years, I expect the average annual S&P
500 return will be: There is a 1-in-10 chance it will be
greater than:	11.64	5.97	11.55 - 11.72	10	3	34.78

Over the next year, I expect the average annual S&P 500
return will be: There is a 1-in-10 chance it will be less
than:	-3.24	6.49	-3.34 - -3.15	-2	-16.30	10.82

Over the next year, I expect the average annual S&P 500
return will be: Expected return:	4.00	4.08	3.94 - 4.06	4	-7.73	16.11

Over the next year, I expect the average annual S&P 500
return will be: There is a 1-in-10 chance it will be greater
than:	8.76	4.87	8.69 - 8.83	8	0	22.94

40

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

Employee Weighted: 11. On June 3, 2008 the annual yield on 10-yr treasury bonds was 4.0%. Please complete the following:

	Mean	SD	95% CI	Median	Minimum	Maximum

Over the next 10 years, I expect the average annual S&P
500 return will be: There is a 1-in-10 chance it will be less
than:	2.86	3.28	2.82 - 2.91	3	-6.49	11.73

Over the next 10 years, I expect the average annual S&P
500 return will be: Expected return:	7.43	3.31	7.39 - 7.48	7	0	22.80

Over the next 10 years, I expect the average annual S&P
500 return will be: There is a 1-in-10 chance it will be
greater than:	11.62	5.72	11.54 - 11.71	10	2.30	34.78

Over the next year, I expect the average annual S&P 500
return will be: There is a 1-in-10 chance it will be less
than:	-3.10	6.56	-3.19 - -3.00	-1	-16.30	10.82

Over the next year, I expect the average annual S&P 500
return will be: Expected return:	4.14	4.11	4.08 - 4.20	5	-7.73	16.11

Over the next year, I expect the average annual S&P 500
return will be: There is a 1-in-10 chance it will be greater
than:	9.19	4.86	9.12 - 9.26	9	0	22.94

41

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

12. When do you expect the U.S. economy to begin recovery?

	 	Number	Percent	Cumulative
	Recovery already began	36	7.9 %	7.9 %
	2008, Quarter 3	27	5.9 %	13.8 %
	2008, Quarter 4	68	14.8 %	28.6 %
	2009, Quarter 1	82	17.9 %	46.5 %
	2009, Quarter 2	108	23.6 %	70.1 %
	2009, Quarter 3	73	15.9 %	86.0 %
	2009, Quarter 4	23	5.0 %	91.0 %
	2010 or beyond	41	9.0 %	100.0 %
	Total	458	100.0 %	100.0 %

	Missing Cases = 10 
	Response Percent = 97.9 %

42

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

12. Estimated number of months to beginning of recovery

Number of months

	Minimum = 0

	Maximum = 23

	Mean = 10.50

	Median = 11.50

	Variance (Unbiased) = 36.93

	Standard Deviation (Unbiased) = 6.08

	Standard Error Of The Mean  = 0.28

	95 Percent Confidence Interval Around The Mean = 9.94 - 11.05

	99 Percent Confidence Interval Around The Mean = 9.77 - 11.23

Quartiles

	 1 = 5.50
	 2 = 11.50
	 3 = 14.50

Valid Cases = 458 
Missing Cases = 0 
Response Percent = 100.0%

43

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

Industry

	 	Number	Percent	95% CI
	Manufacturing	102	22.2 %	± 3.8 %
	Retail/Wholesale	70	15.2 %	± 3.2 %
	Other	67	14.6 %	± 3.2 %
	Banking/Finance/Insurance	66	14.3 %	± 3.2 %
	Healthcare/Pharmaceutical	46	10.0 %	± 2.7 %
	Service/Consulting	36	7.8 %	± 2.4 %
	Tech [Software/Biotech]	23	5.0 %	± 2.0 %
	Transportation/Energy	22	4.8 %	± 1.9 %
	Mining/Construction	17	3.7 %	± 1.7 %
	Communications/Media	11	2.4 %	± 1.4 %
	Total	460	100.0 %

	Missing Cases = 8 
	Response Percent = 98.3 %

44

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

Industry (Other specified)

Aerospace	
aerospace/defense	
AGRIBUSINESS	
Agricultural Processing	
Agriculture	
Aquarium	
Business Services	
Business Services / data	
Commercial Real Estate	
construction/property mgt	
Education	
Education	
Education	
education	
Educational Testing	
Electric Utility	
electric utiility	
Entertainment	
entertainment	
Food Service	
food services	
Forestry	
Forestry	
Gaming	
Government	
Government	
government	
government	
government	
govt	
Healthcare staffing	
Higher Education	
Homebuilding	
Hospitality	
Hospitality related support services	
hospitality	
Industrial Distribution	
Infant formula	
K-12 Education	
Local Government	
Meat Processor	
medical devices	
Multiple service utility	
Natural Gas Drilling, MFG, Exploration	
Newspaper Distribution	
Not-for-profit	
not-for-profit	
outsourced service provider	
Professional Association	
Real Estate	
Real Estate	
Real Estate	

45

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

Industry (Other specified)

Real Estate	
Real Estate	
Real Estate Development/Management	
Real Estate Development/Sales	
real estate	
real estate advisory	
regualtory agency	
Religious Non Profit	
Research	
Sports/Entertainment	
telecommunications	
waste paper broker	

46

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

Sales Revenue

	 	Number	Percent	95% CI
	Less than $25 million	33	7.2 %	± 2.3 %
	$25-$99 million	110	23.9 %	± 3.9 %
	$100-$499 million	163	35.4 %	± 4.3 %
	$500-$999 million	44	9.5 %	± 2.7 %
	$1-$4.9 billion	51	11.1 %	± 2.8 %
	$5-$9.9 billion	22	4.8 %	± 1.9 %
	More than $10 billion	38	8.2 %	± 2.5 %
	Total	461	100.0 %

	Missing Cases = 7 
	Response Percent = 98.5 %

47

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

Weighted Sales Revenue (Millions)

	Minimum = 25

	Maximum = 11000

	Mean = 1790.77

	Median = 300

	Variance (Unbiased) = 10556526.50

	Standard Deviation (Unbiased) = 3249.08

	Standard Error Of The Mean  = 151.32

	95 Percent Confidence Interval Around The Mean = 1494.17 - 2087.37

	99 Percent Confidence Interval Around The Mean = 1401.11 - 2180.43

	Skewness = 2.06

	Kolmogorov-Smirnov Statistic For Normality = 8.28

Quartiles

	 1 = 62
	 2 = 300
	 3 = 750

Valid Cases = 461 
Missing Cases = 7 
Response Percent = 98.5%

48

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

Number of Employees

	 	Number	Percent	95% CI
	Fewer than 100	51	12.7 %	± 2.8 %
	100-499	123	30.6 %	± 4.0 %
	500-999	53	13.2 %	± 2.9 %
	1,000-2,499	58	14.4 %	± 3.0 %
	2,500-4,999	25	6.2 %	± 2.0 %
	5,000-9,999	30	7.5 %	± 2.2 %
	Over 10,000	62	15.4 %	± 3.1 %
	Total	402	100.0 %

	Missing Cases = 66 
	Response Percent = 85.9 %

49

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

Weighted Number of Employees

	Minimum = 100

	Maximum = 12000

	Mean = 3099.50

	Median = 750

	Variance (Unbiased) = 18264588.28

	Standard Deviation (Unbiased) = 4273.71

	Standard Error Of The Mean  = 213.15

	95 Percent Confidence Interval Around The Mean = 2681.72 - 3517.28

	99 Percent Confidence Interval Around The Mean = 2550.63 - 3648.37

	Skewness = 1.32

	Kolmogorov-Smirnov Statistic For Normality = 6.69

Quartiles

	 1 = 300
	 2 = 750
	 3 = 3750

Valid Cases = 402 
Missing Cases = 66 
Response Percent = 85.9%

50

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

Headquarters

	 	Number	Percent	95% CI
	Midwest U.S.	140	30.1 %	± 4.2 %
	Northeast U.S.	111	23.9 %	± 3.9 %
	South Atlantic U.S.	77	16.6 %	± 3.4 %
	Pacific US	56	12.0 %	± 3.0 %
	South Central U.S.	41	8.8 %	± 2.6 %
	Europe	12	2.6 %	± 1.4 %
	Mountain U.S.	11	2.4 %	± 1.4 %
	Asia	7	1.5 %	± 1.1 %
	Canada	5	1.1 %	± 0.9 %
	Central/Latin America	5	1.1 %	± 0.9 %
	Total	465	100.0 %

	Missing Cases = 3 
	Response Percent = 99.4 %

51

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

Ownership

	 	Number	Percent	95% CI
	Private	264	62.7 %	± 4.5 %
	Public, NYSE	70	16.6 %	± 3.2 %
	Public, NASDAQ/AMEX	41	9.7 %	± 2.6 %
	Nonprofit	26	6.2 %	± 2.1 %
	Government	20	4.8 %	± 1.8 %
	Total	421	100.0 %

	Missing Cases = 47 
	Response Percent = 90.0 %

52

Duke University/CFO Business Outlook Survey - U.S. - Second Quarter, 2008

Foreign Sales

	 	Number	Percent	95% CI
	0%	198	42.9 %	± 4.5 %
	1-24%	181	39.2 %	± 4.4 %
	25-50%	43	9.3 %	± 2.6 %
	More than 50%	40	8.7 %	± 2.5 %
	Total	462	100.0 %

	Missing Cases = 6 
	Response Percent = 98.7 %