Table of Contents

1a. 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
2a. 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 the
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 for your corporation? (rank #1, #2, #3)	8
4. What are the top three internal, company-specific concerns for your corporation? Reverse scale &
weighted by the number of respondents (Higher number = greater weighted importance)	9
4. What are the top three internal, company-specific concerns your corporation faces? - Other specified	10
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]	11
5. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the
next 12 months for:   [Unweighted - Sorted]	12
5. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the
next 12 months?  [All Companies - Winsorized - Revenue Weighted - Sorted]	13
5. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the
next 12 months?  [All Companies - Winsorized - Employee Weighted - Sorted]	14
5. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the
next 12 months?  [Public Companies - Winsorized - Revenue Weighted]	15
5b. Overall inflation was about 1.5% in 2010.  In question 5, you said that you expect your earnings to
change by X% over the next 12 months. If overall inflation is 4% in 2011, what do you expect the change
in your earnings will be over the next 12 months?	16
6a.  During 2011, does your company plan to:	17
6b.  During 2011, does your company plan to:	18
7.  Compared to Fall 2009  (Q4 2009), does your company find borrowing now:	19
8. What job functions/titles are most needed at your company right now? (Choose up to three)	20
8. What job functions/titles are most needed at your company right now? - Other specified	21
8. Jobs most needed for companies that plan to increase domestic employment	22
9.  How satisfied are you in your job compared to two years ago?	23
10.  We are trying to get a sense of what it would take for employment to return to “normal” levels. How much 
revenue growth would be required for your company to expand your workforce to pre-recession(late 2007) levels?	24
Percent increase in revenue that would be required for workforce at our firm to return to pre-recession level	25
11.  Which are the most crucial accounting issues your company faces in 2011? (Choose all that apply)	26
11. Which are the most crucial accounting issues your company faces in 2011? - Other specified	27
12.  The movement toward convergence of International Financial Reporting Standards and U.S. GAAP is
slated to intensify in the first half of 2011. How would you describe your company's readiness to comply
with global accounting standards?	28
13. On February 18, 2011 the annual yield on 10-yr treasury bonds was 3.6%. Please complete the following:	29
Revenue Weighted: 13. On February 18, 2011 the annual yield on 10-yr treasury bonds was 3.6%. Please
complete the following:	30
Employee Weighted: 13. On February 18, 2011 the annual yield on 10-yr treasury bonds was 3.6%. Please
complete the following:	31
14. In 2010, the volatility of S&P 500 returns was 12.6%. What do you think the volatility of S&P 500 returns
will be in:	32
15a. You are presented with a hypothetical investment that will double your money each year (all reinvested). 
You start with $1. How many years would you need to accumulate $1 million? No calculators please	33
16a. Has the hurdle rate your company uses to evaluate investment projects changed since 2007 (before
the recent recession)?	34
16a. Has the hurdle rate your company uses to evaluate investment projects changed since 2007 (before
the recent recession)?	35
16b. Does your company pursue all projects that are expected to earn a return higher than the hurdle rate?
(e.g., if your company's overall hurdle rate is 15%, among projects with similar risk to your company's
overall risk, would you pursue all projects that are expected to earn 16%)?	36
16b. If hurdle rate has increased: Why doesn't your company pursue all projects that are expected to earn
a return higher than the hurdle rate?	37
16b. If hurdle rate has remained the same: Why doesn't your company pursue all projects that are expected
to earn a return higher than the hurdle rate?	38
16b. If hurdle rate has decreased: Why doesn't your company pursue all projects that are expected to earn
a return higher than the hurdle rate?	40
16b. Small companies (<= 100 million): Why doesn't your company pursue all projects that are expected to
earn a return higher than the hurdle rate?	41
16b. Medium companies (100 million - <= 1 billion): Why doesn't your company pursue all projects that are
expected to earn a return higher than the hurdle rate?	42
16b. Large companies (>= 1 billion): Why doesn't your company pursue all projects that are expected to
earn a return higher than the hurdle rate?	44
Manufacturing capacity utilized	45
What do you estimate is your firm's overall weighted average cost of capital for 2011? (e.g., 11.2%)	46
Industry	47
Industry (Other specified)	48
Sales Revenue	50
Weighted Sales Revenue (Millions)	51
Number of Employees	52
Weighted Number of Employees	53
Where are you personally located?	54
Where are you personally located? - Other specified	55
Ownership	56
Foreign Sales	57
What is your company's credit rating? 	58
What is your company's credit rating? 	59
What is your company's credit rating? 	60

1 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

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

	 	Number	Percent	95% CI
	1=More optimistic	283	55.7 %	± 4.3 %
	0=No change	146	28.7 %	± 3.9 %
	-1=Less optimistic	79	15.6 %	± 3.1 %
	Total	508	100.0 %

	Mean = 0.4
	SD = 0.7

	Missing Cases = 4 
	Response Percent = 99.2 %

2 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

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 = 92

	Mean = 61.3

	Median = 60

	Standard Deviation (Unbiased) = 15.5

	95 Percent Confidence Interval Around The Mean = 59.9 - 62.7

Quartiles

	 1 = 51
	 2 = 60
	 3 = 75

Valid Cases = 458 
Missing Cases = 54 
Response Percent = 89.5%

3 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

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

	 	Number	Percent	95% CI
	1=More optimistic	264	52.1 %	± 4.3 %
	0=No change	146	28.8 %	± 3.9 %
	-1=Less optimistic	97	19.1 %	± 3.4 %
	Total	507	100.0 %

	Mean = 0.3
	SD = 0.8

	Missing Cases = 5 
	Response Percent = 99.0 %

4 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

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 = 8

	Maximum = 100

	Mean = 67.0

	Median = 70

	Standard Deviation (Unbiased) = 18.4

	95 Percent Confidence Interval Around The Mean = 65.3 - 68.7

Quartiles

	 1 = 55
	 2 = 70
	 3 = 80

Valid Cases = 454 
Missing Cases = 58 
Response Percent = 88.7%

5 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

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

(N=512)

	Mean & SD	1st	2nd	3rd	Total	
	1.6	125	65	41	231
Consumer demand	0.8	24.4%	12.7%	8.0%	45.1%

	1.8	20	21	8	49
Financial regulation	0.7	3.9%	4.1%	1.6%	9.6%

	1.9	36	39	25	100
Cost of non-fuel commodities	0.8	7.0%	7.6%	4.9%	19.5%

	1.9	67	55	53	175
Federal government agenda/policies	0.8	13.1%	10.7%	10.4%	34.2%

	1.9	35	43	29	107
Credit markets/interest rates	0.8	6.8%	8.4%	5.7%	20.9%

	2.0	36	40	41	117
Cost of fuel	0.8	7.0%	7.8%	8.0%	22.9%

	2.1	61	60	72	193
Price pressure from competitors	0.8	11.9%	11.7%	14.1%	37.7%

	2.1	10	7	14	31
Currency risk	0.9	2.0%	1.4%	2.7%	6.1%

	2.2	28	37	45	110
State or local government budget deficits	0.8	5.5%	7.2%	8.8%	21.5%

	2.2	13	5	19	37
Other:	0.9	2.5%	1.0%	3.7%	7.2%

	2.2	7	22	14	43
Foreign competition	0.7	1.4%	4.3%	2.7%	8.4%

	2.2	27	46	49	122
Federal budget deficit	0.8	5.3%	9.0%	9.6%	23.8%

	2.2	25	30	44	99
National employment outlook	0.8	4.9%	5.9%	8.6%	19.3%

	2.2	20	29	37	86
Global financial instability	0.8	3.9%	5.7%	7.2%	16.8%

	2.3	4	11	14	29
Environmental regulation	0.7	0.8%	2.1%	2.7%	5.7%

6 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

3. What are the top three external concerns facing your corporation? Reverse scale & weighted by the number of respondents (Higher number = greater weighted importance)

	Mean	SD	Total

Consumer demand	1.1	1.3	512

Federal government agenda/policies	0.7	1.1	512

Price pressure from competitors	0.7	1.1	512

Credit markets/interest rates	0.4	0.9	512

Cost of fuel	0.4	0.9	512

Cost of non-fuel commodities	0.4	0.9	512

Federal budget deficit	0.4	0.9	512

State or local government budget deficits	0.4	0.8	512

National employment outlook	0.3	0.8	512

Global financial instability	0.3	0.7	512

Financial regulation	0.2	0.7	512

Foreign competition	0.2	0.5	512

Currency risk	0.1	0.5	512

Environmental regulation	0.1	0.4	512

Other:	0.1	0.5	512

7 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

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

Banking/Finance/Insurance	Insurance market pricing	
Banking/Finance/Insurance	Soft Casualty Insurance market	
Healthcare/Pharmaceutical	Government Regulations	
Healthcare/Pharmaceutical	Healthcare reform adjustments	
Healthcare/Pharmaceutical	housing	
Healthcare/Pharmaceutical	Over regulation	
Healthcare/Pharmaceutical	regulatory policies	
Manufacturing	commodity inflation	
Manufacturing	Housing Market	
Manufacturing	Inflation	
Manufacturing	Inflation - Price Government Regulation	
Manufacturing	State of Housing Industry	
Mining/Construction	Interest Rates	
Other	commodity cost inflation	
Other	excise tax	
Other	Impact of Middle East instability	
Other	Industry litigation trends	
Other	Input pricing	
Other	mid east issues	
Other	Regional employment	
Other	Stakeholder support	
Other	state regulations	
Retail/Wholesale	housing market conditions	
Retail/Wholesale	local employment	
Retail/Wholesale	Qualified employees	
Retail/Wholesale	retail bankruptcies	
Retail/Wholesale	Working with Banks	
Service/Consulting	Housing Market	
Service/Consulting	National ECONOMY	
Service/Consulting	not being the go-to firm	
Service/Consulting	Uncertainty of Insurance Regulation	
Tech [Software/Biotech]	business confidence in economy rebound	
Tech [Software/Biotech]	Inflation	
Tech [Software/Biotech]	IT dept software demand / cap ex	
Transportation/Energy	financing options	
Transportation/Energy	Global political stability	
Transportation/Energy	Political Risk (Venezuela)	
Transportation/Energy	service providers	

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Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

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

(N=512)

	Mean & SD	1st	2nd	3rd	Total	
	1.5	213	89	46	348
Ability to maintain margins	0.7	41.6%	17.4%	9.0%	68.0%

	1.9	27	32	20	79
Balance sheet weakness	0.8	5.3%	6.3%	3.9%	15.4%

	1.9	16	5	13	34
Other:	0.9	3.1%	1.0%	2.5%	6.6%

	2.0	50	54	49	153
Ability to forecast results	0.8	9.8%	10.5%	9.6%	29.9%

	2.1	12	8	14	34
Protection of intellectual property	0.9	2.3%	1.6%	2.7%	6.6%

	2.1	41	42	53	136
Working capital management	0.8	8.0%	8.2%	10.4%	26.6%

	2.1	7	15	10	32
Pension obligations	0.7	1.4%	2.9%	2.0%	6.3%

	2.1	40	60	63	163
Cost of health care	0.8	7.8%	11.7%	12.3%	31.8%

Attracting and retaining qualified	2.2	34	55	58	147
employees	0.8	6.6%	10.7%	11.3%	28.7%

	2.2	21	45	41	107
Supply chain risk	0.7	4.1%	8.8%	8.0%	20.9%

	2.2	15	25	30	70
Managing IT systems	0.8	2.9%	4.9%	5.9%	13.7%

	2.2	2	10	6	18
Counterparty risk	0.6	0.4%	2.0%	1.2%	3.5%

	2.3	25	64	80	169
Maintaining morale/productivity	0.7	4.9%	12.5%	15.6%	33.0%

	2.5	6	2	19	27
Data security	0.8	1.2%	0.4%	3.7%	5.3%

9 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

4. What are the top three internal, company-specific concerns for your corporation? Reverse scale & weighted by the number of respondents (Higher number = greater weighted importance)

	Mean	SD	Total

Ability to maintain margins	1.7	1.3	508

Ability to forecast results	0.6	1.0	508

Cost of health care	0.6	1.0	508

Maintaining morale/productivity	0.6	0.9	508

Attracting and retaining qualified employees	0.5	0.9	508

Working capital management	0.5	0.9	508

Supply chain risk	0.4	0.8	508

Balance sheet weakness	0.3	0.8	508

Managing IT systems	0.2	0.7	508

Data security	0.1	0.4	508

Pension obligations	0.1	0.5	508

Protection of intellectual property	0.1	0.5	508

Counterparty risk	0.1	0.3	508

Other:	0.1	0.6	508

10 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

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

Banking/Finance/Insurance	Achieving sales targets	
Banking/Finance/Insurance	compliance	
Banking/Finance/Insurance	Expanding distribution	
Banking/Finance/Insurance	Improve Productivity	
Banking/Finance/Insurance	Internal systems needing built / managed to accommodate significantly increased	
	regulation.	
Banking/Finance/Insurance	profitability	
Healthcare/Pharmaceutical	Gov't policies	
Healthcare/Pharmaceutical	IT Costs	
Healthcare/Pharmaceutical	M&A Opportunities	
Manufacturing	Cash Flow	
Manufacturing	execution of product development	
Manufacturing	growing effectively	
Manufacturing	managing a new plant opening	
Manufacturing	Product development cycle	
Manufacturing	Product movements outside US	
Manufacturing	wisdom in decision making	
Mining/Construction	imp margin from negative to break even	
Other	Attracting profitable customers	
Other	Budget reductions	
Other	Environmental Regulations compliance	
Other	Impact of Middle East instability	
Other	Management	
Other	Marketing Initiatives	
Retail/Wholesale	New Product Development	
Retail/Wholesale	poor board insights	
Retail/Wholesale	potential interest rate increases	
Retail/Wholesale	too much litigation	
Service/Consulting	completion of major capital project	
Service/Consulting	Cost of increasing Federal & state compliance	
Service/Consulting	Fed, State, Local awards (non-profit agency)	
Service/Consulting	too many lawyers, not enough work	
Tech [Software/Biotech]	Acquisition Integration	
Tech [Software/Biotech]	Level of revenue	
Transportation/Energy	Ability to identify new bid opportunities	
Transportation/Energy	operational performance	

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Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

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

Dividends	23.7	77.5	3.2 - 44.1	0	-10	400	55

Capital spending	16.6	39.1	12.7 - 20.4	5	-90	300	398

Earnings	15.8	44.8	11.3 - 20.3	7	-95	400	386

Health care costs	9.8	8.7	9.0 - 10.6	10	-30	115	423

Revenue	9.7	23.7	7.4 - 12.0	6	-35	300	413

Technology spending	8.8	20.7	6.5 - 11.1	5	-50	200	314

Research and development spending	8.2	20.2	5.5 - 11.0	3	-50	150	207

Marketing/advertising spending	4.9	14.9	3.3 - 6.6	3	-85	100	313

Cash on the balance sheet	4.3	36.6	0.4 - 8.2	1	-80	400	336

Productivity (output per hour worked)	3.8	5.0	3.2 - 4.4	3	-15	29	267

Number of domestic full-time employees	2.8	11.9	1.6 - 4.0	2	-50	160	367

Wages/Salaries	2.8	4.7	2.4 - 3.3	3	-25	40	430

Prices of your products	2.7	5.7	2.1 - 3.3	3	-25	30	346

Number of offshore outsourced employees	2.1	9.0	0.7 - 3.5	0	-10	100	151

Share repurchases	1.6	13.2	-0.7 - 3.8	0	-67	100	136

Number of domestic temporary employees	-0.3	11.4	-1.8 - 1.1	0	-85	50	233

12 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

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

(N=512)

	Mean & SD	Positive	Zero	Negative	Total
	  	1	0	-1	  	
	0.9	399	12	12	423
Health care costs	0.4	94.3%	2.8%	2.8%	100.0%

	0.8	379	30	21	430
Wages/Salaries	0.5	88.1%	7.0%	4.9%	100.0%

	0.8	208	52	7	267
Productivity (output per hour worked)	0.5	77.9%	19.5%	2.6%	100.0%

	0.7	348	17	49	414
Revenue	0.7	84.1%	4.1%	11.8%	100.0%

	0.6	223	68	24	315
Technology spending	0.6	70.8%	21.6%	7.6%	100.0%

	0.6	293	25	73	391
Earnings	0.8	74.9%	6.4%	18.7%	100.0%

	0.6	281	63	56	400
Capital spending	0.7	70.3%	15.8%	14.0%	100.0%

	0.6	122	79	6	207
Research and development spending	0.6	58.9%	38.2%	2.9%	100.0%

	0.6	239	59	48	346
Prices of your products	0.7	69.1%	17.1%	13.9%	100.0%

	0.5	193	89	31	313
Marketing/advertising spending	0.7	61.7%	28.4%	9.9%	100.0%

	0.4	25	28	2	55
Dividends	0.6	45.5%	50.9%	3.6%	100.0%

	0.4	223	70	74	367
Number of domestic full-time employees	0.8	60.8%	19.1%	20.2%	100.0%

	0.2	177	73	92	342
Cash on the balance sheet	0.9	51.8%	21.3%	26.9%	100.0%

Number of offshore outsourced	0.2	37	111	3	151
employees	0.5	24.5%	73.5%	2.0%	100.0%

Number of domestic temporary	0.2	72	131	30	233
employees	0.6	30.9%	56.2%	12.9%	100.0%

	0.1	18	115	5	138
Share repurchases	0.4	13.0%	83.3%	3.6%	100.0%

13 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

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

	Mean	SD	95% CI	Median	Minimum	Maximum

Dividends	13.6	30.4	12.9 - 14.4	1	-5	175.6

Earnings	13.0	27.0	12.6 - 13.4	8	-72	103.6

Capital spending	12.1	25.0	11.8 - 12.5	5	-60	93.2

Revenue	7.6	9.4	7.4 - 7.7	5	-35	56.2

Technology spending	5.5	11.7	5.3 - 5.7	3	-31.8	49.4

Research and development spending	4.1	10.4	3.9 - 4.3	2	-31.4	47.8

Marketing/advertising spending	3.7	7.0	3.5 - 3.8	2	-24.3	34.1

Cash on the balance sheet	2.6	20.0	2.3 - 3.0	2	-67.4	76

Prices of your products	2.3	4.1	2.3 - 2.4	2.5	-8.5	13.9

Share repurchases	2.0	6.1	1.8 - 2.1	0	-24.3	27.5

14 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

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

	Mean	SD	95% CI	Median	Minimum	Maximum

Health care costs	8.3	5.1	8.2 - 8.4	8	-7.3	26.9

Number of offshore outsourced employees	3.0	5.8	2.8 - 3.1	0	-10	19.7

Productivity (output per hour worked)	2.9	3.1	2.8 - 2.9	2	-6	13.6

Wages/Salaries	2.8	2.1	2.8 - 2.8	3	-6.4	12

Number of domestic full-time employees	1.2	6.4	1.1 - 1.3	1	-20.5	26.1

Number of domestic temporary employees	0.3	6.0	0.2 - 0.4	0	-22.6	22

15 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

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

	Mean	SD	95% CI	Median	Minimum	Maximum

Earnings	18.1	25.0	17.6 - 18.7	10	-20	103.6

Dividends	14.4	31.1	13.5 - 15.2	2	-5	175.6

Revenue	8.9	7.6	8.7 - 9.0	7	-10	50

Cash on the balance sheet	6.4	19.3	6.0 - 6.9	5	-67.4	76

Share repurchases	2.5	5.9	2.3 - 2.7	0	-24.3	27.5

16 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

5b. Overall inflation was about 1.5% in 2010.  In question 5, you said that you expect your earnings to change by X% over the next 12 months. If overall inflation is 4% in 2011, what do you expect the change in your earnings will be over the next 12 months?

Percent change in earnings:

	Minimum = -100

	Maximum = 500

	Mean = 16.0

	Median = 5

	Standard Deviation (Unbiased) = 56.8

	95 Percent Confidence Interval Around The Mean = 10.1 - 21.9

Quartiles

	 1 = 0
	 2 = 5
	 3 = 15

Valid Cases = 361 
Missing Cases = 151 
Response Percent = 70.5%

17 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

6a.  During 2011, does your company plan to:

	 	Number	Percent	95% CI
	Acquire another company or companies?	90	18.0 %	± 3.3 %
	Acquire part of another company or companies?	29	5.8 %	± 2.0 %
	Both	61	12.2 %	± 2.8 %
	Neither	321	64.1 %	± 4.2 %
	Total	501	100.0 %

	Missing Cases = 11 
	Response Percent = 97.9 %

18 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

6b.  During 2011, does your company plan to:

	 	Number	Percent	95% CI
	Sell your company?	11	2.6 %	± 1.3 %
	Sell part of your company?	46	11.0 %	± 2.5 %
	Neither	360	86.3 %	± 4.0 %
	Total	417	100.0 %

	Missing Cases = 95 
	Response Percent = 81.4 %

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Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

7.  Compared to Fall 2009  (Q4 2009), does your company find borrowing now:

	 	Number	Percent	95% CI
	-2=Much more difficult	36	8.4 %	± 2.6 %
	-1=A little more difficult	50	11.7 %	± 3.0 %
	0=About the same	176	41.0 %	± 4.7 %
	+1=A little easier	111	25.9 %	± 4.2 %
	+2=Much easier	56	13.1 %	± 3.2 %
	Total	429	100.0 %

	Mean = 0.2
	SD = 1.1

	Missing Cases = 1 
	Response Percent = 99.8 %

20 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

8. What job functions/titles are most needed at your company right now? (Choose up to three)

	 	Number	Percent	95% CI
	Skilled labor/professional staff	142	28.9 %	± 4.0 %
	Sales staff	141	28.7 %	± 4.0 %
	Engineers/product development staff	130	26.5 %	± 3.9 %
	Information technology staff	108	22.0 %	± 3.7 %
	Finance staff	87	17.7 %	± 3.4 %
	Mid-level managers	62	12.6 %	± 2.9 %
	Line workers	60	12.2 %	± 2.9 %
	Customer service staff	52	10.6 %	± 2.7 %
	Senior managers	45	9.2 %	± 2.6 %
	Marketing staff	44	9.0 %	± 2.5 %
	Other	35	7.1 %	± 2.3 %
	Administrative/clerical staff	30	6.1 %	± 2.1 %
	Human resources staff	22	4.5 %	± 1.8 %
	Manual laborers	21	4.3 %	± 1.8 %
	Total	979

	Number of Cases =491
	Number of Responses =979
	Average Number Of Responses Per Case = 2.0
	Number Of Cases With At Least One Response =491
	Response Percent = 100.0 %

21 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

8. What job functions/titles are most needed at your company right now? - Other specified

Banking/Finance/Insurance	Actuaries	
Banking/Finance/Insurance	finance technical professionals	
Banking/Finance/Insurance	Regulatory Compliance staff	
Communications/Media	Legal	
Healthcare/Pharmaceutical	Registered Nurses	
Manufacturing	cost analyst	
Manufacturing	General Managers	
Manufacturing	International sales	
Manufacturing	Maintenance support	
Manufacturing	Manufacturing managers	
Manufacturing	None	
Manufacturing	none	
Manufacturing	regulatory staff	
Manufacturing	Research	
Manufacturing	Sales Manager	
Manufacturing	Supervisors	
Mining/Construction	no staffing issues	
Mining/Construction	none	
Mining/Construction	Project Managers	
Other	None	
Other	none	
Other	none	
Other	OTR DRIVERS	
Other	Plenty of talent out there	
Other	too many functions	
Retail/Wholesale	Buyers	
Retail/Wholesale	Chief Merchant	
Retail/Wholesale	None	
Retail/Wholesale	none	
Retail/Wholesale	none	
Retail/Wholesale	vehicle repair techs	
Service/Consulting	No critical needs at this time	
Service/Consulting	route drivers	
Transportation/Energy	CDL drivers	
Transportation/Energy	Drivers	
Transportation/Energy	Truck Drivers	

22 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

8. Jobs most needed for companies that plan to increase domestic employment (among firms hiring)

	 	Number	Percent	95% CI
	Engineers/product development staff	78	32.9 %	± 6.0 %
	Skilled labor/professional staff	74	31.2 %	± 5.9 %
	Sales staff	65	27.4 %	± 5.7 %
	Information technology staff	58	24.5 %	± 5.5 %
	Finance staff	43	18.1 %	± 4.9 %
	Line workers	42	17.7 %	± 4.9 %
	Mid-level managers	33	13.9 %	± 4.4 %
	Customer service staff	32	13.5 %	± 4.4 %
	Marketing staff	23	9.7 %	± 3.8 %
	Senior managers	18	7.6 %	± 3.4 %
	Administrative/clerical staff	16	6.8 %	± 3.2 %
	Other	15	6.3 %	± 3.1 %
	Manual laborers	12	5.1 %	± 2.8 %
	Human resources staff	9	3.8 %	± 2.5 %
	Total	518

	Number of Cases =237
	Number of Responses =518
	Average Number Of Responses Per Case = 2.2
	Number Of Cases With At Least One Response =237
	Response Percent = 100.0 %

23 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

9.  How satisfied are you in your job compared to two years ago?

	 	Number	Percent	95% CI
	-1=Less satisfied	119	24.1 %	± 3.8 %
	0=About the same	222	44.9 %	± 4.4 %
	+1=More satisfied	153	31.0 %	± 4.1 %
	Total	494	100.0 %

	Mean = 0.1
	SD = 0.7

	Missing Cases = 0 
	Response Percent = 100.0 %

24 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

10.  We are trying to get a sense of what it would take for employment to return to “normal” levels. How much revenue growth would be required for your company to expand your workforce to pre-recession (late 2007) levels?

	 	Number	Percent	95% CI
	An increase in revenue could return our workforce to a pre-
	   recession level	217	42.7 %	± 4.3 %
	We are already at pre-recession workforce level	190	37.4 %	± 4.2 %
	We do not expect to return to pre-recession workforce levels	101	19.9 %	± 3.5 %
	Total	508	100.0 %

	Missing Cases = 4 
	Response Percent = 99.2 %

25 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

Percent increase in revenue that would be required for workforce at our firm to return to pre-recession level

% increase in revenue

	Minimum = 2

	Maximum = 500

	Mean = 40.2

	Median = 20

	Standard Deviation (Unbiased) = 73.4

	95 Percent Confidence Interval Around The Mean = 30.5 - 50.0

Quartiles

	 1 = 15
	 2 = 20
	 3 = 30

Valid Cases = 217 
Missing Cases = 0 
Response Percent = 100.0%

26 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

11.  Which are the most crucial accounting issues your company faces in 2011? (Choose all that apply)

	 	Number	Percent	95% CI
	Convergence to IFRS	161	34.1 %	± 4.3 %
	Fair value measurement	149	31.6 %	± 4.2 %
	Revenue recognition	141	29.9 %	± 4.1 %
	Accounting for income taxes	116	24.6 %	± 3.9 %
	Lease accounting	108	22.9 %	± 3.8 %
	Accounting for legal/environmental liability contingencies	80	16.9 %	± 3.4 %
	Accounting for post-retirement benefits, including pensions	56	11.9 %	± 2.9 %
	Accounting for executive compensation	42	8.9 %	± 2.6 %
	Other	41	8.7 %	± 2.6 %
	Total	894

	Number of Cases =472
	Number of Responses =894
	Average Number Of Responses Per Case = 1.9
	Number Of Cases With At Least One Response =472
	Response Percent = 100.0 %

27 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

11. Which are the most crucial accounting issues your company faces in 2011? - Other specified

Banking/Finance/Insurance	acquisition assimilati	
Banking/Finance/Insurance	Regulatory limits????	
Banking/Finance/Insurance	XBRL	
Communications/Media	Tax Inflation Adjustme	
Healthcare/Pharmaceutical	Inventory valuation	
Manufacturing	Acquisition accounting	
Manufacturing	Bonus Depreciation	
Manufacturing	Contingent Liabilities	
Manufacturing	hedge accounting	
Manufacturing	hedging instruments	
Manufacturing	internationl expansion	
Manufacturing	no significant issues	
Manufacturing	Obtaining information	
Manufacturing	private company issues	
Mining/Construction	closely held - no issu	
Mining/Construction	going concern	
Mining/Construction	Multi-employer pension	
Other	asset impairment	
Other	Financial Reporting	
Other	health care costs	
Other	Hedge accounting	
Other	No major issues	
Other	None	
Other	System Conversion	
Retail/Wholesale	bank covenants	
Retail/Wholesale	consolidations	
Retail/Wholesale	Foreign Sub Deemed Div	
Retail/Wholesale	Goodwill valuation	
Retail/Wholesale	n/a	
Retail/Wholesale	No serious issues	
Retail/Wholesale	None	
Retail/Wholesale	none	
Service/Consulting	Asset impairments	
Service/Consulting	collecting old AR	
Service/Consulting	consolidations	
Service/Consulting	Impairment evaluation	
Service/Consulting	Job Cost Estimation	
Service/Consulting	none	
Transportation/Energy	Budgeting	
Transportation/Energy	electronic invoicing	
Transportation/Energy	Going 'public' in 2011	
Unspecified Industry	ARRA grant reporting	

28 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

12.  The movement toward convergence of International Financial Reporting Standards and U.S. GAAP is slated to intensify in the first half of 2011. How would you describe your company's readiness to comply with global accounting standards?

	 	Number	Percent	95% CI
	Haven't begun to address convergence	190	44.2 %	± 4.7 %
	Preparing, but far from ready	167	38.8 %	± 4.6 %
	Almost ready	35	8.1 %	± 2.6 %
	Completely ready	15	3.5 %	± 1.7 %
	We already file under IFRS	23	5.3 %	± 2.1 %
	Total	430	100.0 %

	Missing Cases = 1 
	Response Percent = 99.8 %

29 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

13. On February 18, 2011 the annual yield on 10-yr treasury bonds was 3.6%. 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:	0.8	8.3	0.0 - 1.5	2	-50	56	459

Over the next 10 years, I expect the average annual S&P 500
return will be: Expected return:	7.3	6.4	6.7 - 7.8	6	-20	75	474

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:	11.7	10.1	10.8 - 12.6	10	-10	100	460

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:	-2.4	11.4	-3.4 - -1.4	0	-50	53	457

Over the next year, I expect the average annual S&P 500
return will be: Expected return:	6.5	6.0	6.0 - 7.1	6	-20	66	471

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:	12.1	7.1	11.5 - 12.8	10	-10	50	458

30 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

Revenue Weighted: 13. On February 18, 2011 the annual yield on 10-yr treasury bonds was 3.6%. 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:	1.0	5.1	0.9 - 1.0	2	-15.5	17.1

Over the next 10 years, I expect the average annual S&P 500 return
will be: Expected return:	6.7	3.4	6.6 - 6.7	6	-5.2	19.8

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:	10.5	5.5	10.4 - 10.6	10	-8.1	31.5

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:	-2.2	8.8	-2.4 - -2.1	0	-24.7	19.9

Over the next year, I expect the average annual S&P 500 return will be:
Expected return:	6.6	4.1	6.5 - 6.7	6	-5.3	18.3

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:	12.0	5.9	11.9 - 12.0	10	-1.8	26

31 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

Employee Weighted: 13. On February 18, 2011 the annual yield on 10-yr treasury bonds was 3.6%. 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:	1.2	5.1	1.1 - 1.2	2	-15.5	17.1

Over the next 10 years, I expect the average annual S&P 500 return
will be: Expected return:	6.6	3.3	6.6 - 6.7	6	-5.2	19.8

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:	10.6	5.5	10.5 - 10.7	10	-8.1	31.5

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:	-2.0	8.9	-2.1 - -1.9	0	-24.7	19.9

Over the next year, I expect the average annual S&P 500 return will be:
Expected return:	6.6	4.0	6.6 - 6.7	6	-5.3	18.3

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:	11.9	5.9	11.8 - 11.9	10	-1.8	26

32 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

14. In 2010, the volatility of S&P 500 returns was 12.6%. What do you think the volatility of S&P 500 returns will be in:

	Mean	SD	95% CI	Median	Minimum	Maximum	Total

2011?	12.1	3.9	11.7 - 12.4	11	2	40	456

2012?	11.5	4.6	11.1 - 11.9	10	3	35	454

33 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

15a. You are presented with a hypothetical investment that will double your money each year (all reinvested). You start with $1. How many years would you need to accumulate $1 million? No calculators please

	Mean	SD	95% CI	Median	Minimum	Maximum	Total

Number of years	29.0	31.8	26.0 - 32.0	20	1.5	200	428

Lower bound: I think there is a 1-in-10 chance that I would
need fewer years to accumulate $1 million	23.1	25.6	20.5 - 25.6	18	1.5	200	383

Upper bound: I think there is a 1-in-10 chance that I would
need more years to accumulate $1 million	43.7	81.4	35.6 - 51.8	25	2	999	390

34 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

16a. Has the hurdle rate your company uses to evaluate investment projects changed since 2007 (before the recent recession)?

	 	Number	Percent	95% CI
	Yes, we use a hurdle rate	205	51.3 %	± 4.8 %
	We do not use a hurdle rate	195	48.8 %	± 4.8 %
	Total	400	100.0 %

	Missing Cases = 23 
	Response Percent = 94.6 %

35 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

16a. Has the hurdle rate your company uses to evaluate investment projects changed since 2007 (before the recent recession)?

	Mean	SD	95% CI	Median	Minimum	Maximum	Total

% 2007 hurdle rate (e.g., 10%, 15%)	14.7	5.3	14.0 - 15.4	15	5	42	205

% Current hurdle rate	14.8	6.5	13.9 - 15.7	14	5	50	205

Change	0.1	3.8	-0.4 - 0.6	0	-10	20	205

36 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

16b. Does your company pursue all projects that are expected to earn a return higher than the hurdle rate? (e.g., if your company's overall hurdle rate is 15%, among projects with similar risk to your company's overall risk, would you pursue all projects that are expected to earn 16%)?

	 	Number	Percent	95% CI
	Yes	124	29.5 %	± 3.7 %
	No - Why not?	296	70.5 %	± 4.3 %
	Total	420	100.0 %

	Missing Cases = 92 
	Response Percent = 82.0 %

37 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

16b. If hurdle rate has increased: Why doesn't your company pursue all projects that are expected to earn a return higher than the hurdle rate?

Only when a Project its a Mandatory / Regulatory Obligation or Strategic Projects	
Need to also evaluate effort, risk and available resources.	
Varies from one country to another; we ask for 12% in Chile, but 18% in Argentina and we don't touch Venezuela, regardless of the	
return	
We use the expected return to prioritize projects.  If more qualify we will review financing opportunities to support above the capital	
budget amount for the year.  Large strategic projects are evaluated seperately.	
Limit on Capital and strategic fit	
distraction of too many projects at once	
limited capital to invest	
Depends on the business segment and the overall capital investment limitation.	
Availability of funding / risk aversion lternative use of funds available at higher investment return	
Not all fit in our model	
Strategic considerations, opportunity to grow business	
Cash in international location making lower returns	
limited resources and strain on employees	
Risk of missing Net Income covenants in the short term... company's investments typically have a 6 to 10 year pay back period.	
debt covenants and fear/uncertainty	
constrained  by current cash	
Limited resource, very headcount addition adverse	
Strategic Fit	
Funding constraints - more projects than we can afford	
Financing Capacity is limited	
other factors. capital allocation, available financing, bidding success, product & strategic fit.	
Depends on the risk!	
Limited by capital availability and risk profile of projects	
Capital constraints, Resource constraints, Qualitative risks	
bank covenant capital restrictions	
Geographic fit is important	
Some may exceed the hurdle rate, but are either short lived, or are not pertinent to the future direction of the business	
Regulatory or PR concerns	

38 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

16b. If hurdle rate has remained the same: Why doesn't your company pursue all projects that are expected to earn a return higher than the hurdle rate?

capacity restraints	
priorities and resources available	
CApital cONSTRAINTS	
availability of funds limited to overall attractiveness of investment	
Strategic fit; more projects than can be 'afforded' are above the hurdle	
Cash/borrowing, project fit	
Capital restrictions	
Too many targets, not enough funds.	
Not enough manpower or capital	
Capex limits	
CAPITAL LIMITATIONS	
Constrain to assure focus and cash optimization	
WE expect cost reduction projects to have a simple payback of less than 1 year	
Must fit company objectives & locations	
Available capital	
The hurdle is just one benchmark. The risk of the project is factored also. Sometimes we accept lower returns because of lower or	
marketing issues. risk o	
Scarcity of recources vs Needed investments	
Capital constraints	
If it doesn't match the company mission and business focus, we won't pursue it.	
Availability of internal resources and overall capital budgeting constraints	
Depends on both strategic fit and bandwidth to take on at the time.	
Capital and organizational limitations	
Risk profile	
cash constraints versus debt paydown	
resource contraints	
Funding	
Unlimited projects, limited resources. Usually the ones we pick yiled 25% or more.	
Would still need to prioritize due to limited capital funding resources and limited personnel	
Availability of capital	
Non-quantifiable factors.	
capital constraints and limited resources	
limited capital	
Limited capital - cash flow	
Other Risk characteristics - reputation, differs from core business strategy, etc.	
if not in our flywheel	
lack of resources	
Resource and management constraints	
Unwilling to expand balance sheet to accomodate; there is forecast error in all the calculations that makes less that 100% of the	
projects above the hurdle rate truly attractive.	
other factors such as strategic fit are equally important	
Cash and management constraints	
Equity owners determine what projects that exceed the hurdle rate are approved.	
Depends on the project	
Cash flow	
Limited capital and liquidity concerns	
Insufficient resources to support talent / financial	
need to define thesis behind evaluating all potential business acquisitions	
Still weigh various economic risks and capability	
Dependent upon quality of vendor, technology obsolescence risk	
limited supply of capital forces us to choose the projects with the best returns and the lowest overall risk	
Limited Resources	
Does it strengthen our competitive advantage? (i.e. widen the moat...)	
insurnace Co. suitiability	
Still need to allocate resources & prioritize opportunities.	
Limited capital resources and limited project management and management attention to oversee all of those projects.	

39 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

16b. If hurdle rate has remained the same: Why doesn't your company pursue all projects that are expected to earn a return higher than the hurdle rate?

Limited Cash for R&D	
only those which are in our area of expertise	
Depends on strategic fit.	
Capital constraints	
Capital constraints.	
use return on invested capital	
Risk/strategy assessment/fit	
prioritization of asset capability	
Need to balance spending to capital available. If the $'s for the projects requested exceed the cash flow generated for capital, capital	
priorities need to be established.	
Capital spending dollars are limited.	
credit and payment risk	
Financial and human capital limits	
strategic issues	
Lack of human resources to execute	
Investment too large to finance or has inherent risk factors not captured sufficiently in NPV assessment.	
depends upon fit & nature of investment.	

40 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

16b. If hurdle rate has decreased: Why doesn't your company pursue all projects that are expected to earn a return higher than the hurdle rate?

Capital constraints	
capital access and no. of projects.	
Capital constraints	
Total Capital funding available	
We also use best use of funds	
We decline projects that may take us from our core strengths.	
cash position, economy risk, and management availability	
rather not say	
May not fit the overall portfolio for the long run	
Risk level, capital availability, interest rates and movement anticipated, and other similar factors would determine whether any	
individual project would be pursued.	
Resource availability	
Prioritization	
Inability to do all simultaneously...	
Funding and resource allocation	
Available Capital & Employee Resources and we would still rank the projects	
Funds and human capital availability	
One metric doesn't drive decisions.  Other business considerations (e.g. financing / capital market access, resources, internal talent /	
mgmt capability).  We look for projects that make sense across business disciplines.	
Nees to match corporate goals/capabilities	
WORKING CAPITAL/CAPEX CONSTRAINTS	
available human and financial capital	
Not enough available resources to manage all of them.	
Riskier projects are passed over	
Avoid over-leveraging and Credit limitations	
qualitative factors are also important	
Must balance with need to preserve capital, manage debt load, satisfy surety bonding company etc.	
capital constraints	
Competing for capital with other companies in the private equity portfolio	
Higher risk periods = higher reserves	
Limited resources to pursue all the projects brought forward	
Some projects are just not designed to return at that level.	
finite amount of capital	
We might not pursue a higher return project if their is more risk or high variability of expected returns.	
also need geographic and product type diversifcation	
financial capacity & project support - there are far more projects above the hurdle rate than we have to capability (financial and	
operational/people) to support	
Lack of available capital or strategic fit.	
cap availability	

41 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

16b. Small companies (<= 100 million): Why doesn't your company pursue all projects that are expected to earn a return higher than the hurdle rate?

capacity restraints	
CApital cONSTRAINTS	
Cash/borrowing, project fit	
Varies from one country to another; we ask for 12% in Chile, but 18% in Argentina and we don't touch Venezuela, regardless of the	
return	
Limit on Capital and strategic fit	
Capital restrictions	
Not enough manpower or capital	
Capex limits	
limited capital to invest	
If it doesn't match the company mission and business focus, we won't pursue it.	
Depends on both strategic fit and bandwidth to take on at the time.	
resource contraints	
Funding	
Would still need to prioritize due to limited capital funding resources and limited personnel	
resource constraints	
Availability of capital	
Available Capital & Employee Resources and we would still rank the projects	
Unwilling to expand balance sheet to accomodate; there is forecast error in all the calculations that makes less that 100% of the	
projects above the hurdle rate truly attractive.	
Still weigh various economic risks and capability	
Dependent upon quality of vendor, technology obsolescence risk	
limited resources and strain on employees	
Competing for capital with other companies in the private equity portfolio	
Risk of missing Net Income covenants in the short term... company's investments typically have a 6 to 10 year pay back period.	
prioritization of asset capability	
also need geographic and product type diversifcation	
credit and payment risk	
bank covenant capital restrictions	
strategic issues	
Some may exceed the hurdle rate, but are either short lived, or are not pertinent to the future direction of the business	
Regulatory or PR concerns	
Investment too large to finance or has inherent risk factors not captured sufficiently in NPV assessment.	

42 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

16b. Medium companies (100 million - <= 1 billion): Why doesn't your company pursue all projects that are expected to earn a return higher than the hurdle rate?

Only when a Project its a Mandatory / Regulatory Obligation or Strategic Projects	
limitation of avail capital	
We use the expected return to prioritize projects.  If more qualify we will review financing opportunities to support above the capital	
budget amount for the year.  Large strategic projects are evaluated seperately.	
Capital constraints	
Capital constraints	
WE expect cost reduction projects to have a simple payback of less than 1 year	
Must fit company objectives & locations	
We also use best use of funds	
Depends on the business segment and the overall capital investment limitation.	
Available capital	
We decline projects that may take us from our core strengths.	
focus on strategic priorities	
The hurdle is just one benchmark. The risk of the project is factored also. Sometimes we accept lower returns because of lower or	
marketing issues. risk o	
Availability of internal resources and overall capital budgeting constraints	
May not fit the overall portfolio for the long run	
Risk level, capital availability, interest rates and movement anticipated, and other similar factors would determine whether any	
individual project would be pursued.	
Resource availability	
Availability of funding / risk aversion lternative use of funds available at higher investment return	
Unlimited projects, limited resources. Usually the ones we pick yiled 25% or more.	
Inability to do all simultaneously...	
capital constraints and limited resources	
Not all fit in our model	
limited capital	
if not in our flywheel	
Resource and management constraints	
Funds and human capital availability	
Strategic considerations, opportunity to grow business	
One metric doesn't drive decisions.  Other business considerations (e.g. financing / capital market access, resources, internal talent /	
mgmt capability).  We look for projects that make sense across business disciplines.	
Cash in international location making lower returns	
other factors such as strategic fit are equally important	
WORKING CAPITAL/CAPEX CONSTRAINTS	
Equity owners determine what projects that exceed the hurdle rate are approved.	
available human and financial capital	
Riskier projects are passed over	
Depends on the project	
Cash flow	
Must balance with need to preserve capital, manage debt load, satisfy surety bonding company etc.	
Insufficient resources to support talent / financial	
need to define thesis behind evaluating all potential business acquisitions	
Limited Resources	
Higher risk periods = higher reserves	
Limited resources to pursue all the projects brought forward	
Some projects are just not designed to return at that level.	
Still need to allocate resources & prioritize opportunities.	
constrained  by current cash	
We might not pursue a higher return project if their is more risk or high variability of expected returns.	
only those which are in our area of expertise	
Capital constraints.	
Limited by capital availability and risk profile of projects	
Need to balance spending to capital available. If the $'s for the projects requested exceed the cash flow generated for capital, capital	
priorities need to be established.	
Capital spending dollars are limited.	

43 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

16b. Medium companies (100 million - <= 1 billion): Why doesn't your company pursue all projects that are expected to earn a return higher than the hurdle rate?

Lack of available capital or strategic fit.	
Capital constraints, Resource constraints, Qualitative risks	
Geographic fit is important	
Financial and human capital limits	
cap availability	
depends upon fit & nature of investment.	

44 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

16b. Large companies (>= 1 billion): Why doesn't your company pursue all projects that are expected to earn a return higher than the hurdle rate?

priorities and resources available	
availability of funds limited to overall attractiveness of investment	
Strategic fit; more projects than can be 'afforded' are above the hurdle	
Need to also evaluate effort, risk and available resources.	
capital access and no. of projects.	
distraction of too many projects at once	
Too many targets, not enough funds.	
CAPITAL LIMITATIONS	
Constrain to assure focus and cash optimization	
Total Capital funding available	
cash position, economy risk, and management availability	
rather not say	
Scarcity of recources vs Needed investments	
Capital constraints	
Capital and organizational limitations	
Risk profile	
cash constraints versus debt paydown	
Prioritization	
Funding and resource allocation	
Non-quantifiable factors.	
Limited capital - cash flow	
Other Risk characteristics - reputation, differs from core business strategy, etc.	
lack of resources	
Nees to match corporate goals/capabilities	
Cash and management constraints	
Not enough available resources to manage all of them.	
Avoid over-leveraging and Credit limitations	
qualitative factors are also important	
capital constraints	
Limited capital and liquidity concerns	
limited supply of capital forces us to choose the projects with the best returns and the lowest overall risk	
Does it strengthen our competitive advantage? (i.e. widen the moat...)	
insurnace Co. suitiability	
debt covenants and fear/uncertainty	
Limited capital resources and limited project management and management attention to oversee all of those projects.	
Limited Cash for R&D	
Limited resource, very headcount addition adverse	
finite amount of capital	
Strategic Fit	
Funding constraints - more projects than we can afford	
Financing Capacity is limited	
Depends on strategic fit.	
Capital constraints	
Depends on the risk!	
use return on invested capital	
Risk/strategy assessment/fit	
financial capacity & project support - there are far more projects above the hurdle rate than we have to capability (financial and	
operational/people) to support	
Lack of human resources to execute	
doens't fit overall strategy	

45 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

Manufacturing capacity utilized

	Mean	SD	95% CI	Median	Minimum	Maximum	Total

% of capacity utilized in 2010	67.7	18.2	64.5 - 70.8	70	17	100	127

% of planned capacity utilization in 2011	74.6	18.3	71.4 - 77.8	77	25	120	127

Manufacturing capacity utilized (Revenue Weighted)

	Mean	SD	95% CI	Median	Minimum	Maximum	Total

% of capacity utilized in 2010	73.5	15.3	70.9 - 76.2	75	25	100	127

% of planned capacity utilization in 2011	79.7	13.9	77.3 - 82.1	82	28	100	127

Change in capacity utilization in 2011 over their 2010 utilization

	Change in Capacity	Number	Percent	95% CI
	Increase	97	76.4 %	± 7.5 %
	Same	24	18.9 %	± 6.9 %
	Decrease	6	4.7 %	± 3.7 %
	Total	127	100.0 %

	Missing Cases = 0 
	Response Percent = 100.0 %

46 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

What do you estimate is your firm's overall weighted average cost of capital for 2011? (e.g., 11.2%)

	Minimum = 0.1

	Maximum = 47.3

	Mean = 10.0

	Median = 10

	Standard Deviation (Unbiased) = 5.0

	95 Percent Confidence Interval Around The Mean = 9.5 - 10.5

Quartiles

	 1 = 7
	 2 = 10
	 3 = 12

Valid Cases = 434 
Missing Cases = 78 
Response Percent = 84.8%

47 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

Industry

	 	Number	Percent	95% CI
	Manufacturing	136	27.0 %	± 3.8 %
	Other	72	14.3 %	± 3.0 %
	Retail/Wholesale	67	13.3 %	± 2.9 %
	Banking/Finance/Insurance	64	12.7 %	± 2.9 %
	Service/Consulting	43	8.5 %	± 2.4 %
	Healthcare/Pharmaceutical	35	6.9 %	± 2.2 %
	Mining/Construction	35	6.9 %	± 2.2 %
	Transportation/Energy	23	4.6 %	± 1.8 %
	Tech [Software/Biotech]	20	4.0 %	± 1.7 %
	Communications/Media	9	1.8 %	± 1.1 %
	Total	504	100.0 %

	Missing Cases = 8 
	Response Percent = 98.4 %

48 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

Industry (Other specified)

Aerospace	
Agriculture	
Aquarium	
Areospace Defense Maintenance	
Assisted Living	
ASSOCIATION VEBA	
business imaging supplies	
Business process outsourcing/receivables management	
casino resort	
chemicals/coatings	
Consumer Goods	
Defense/Military	
Education	
Entertainment	
Food Distribution	
Forest Products	
Government Pension System	
Higher Education	
higher education	
higher education	
Home Building	
Hospitality	
Hospitality	
hospitality	
Human Services	
In Vitro Diagnostics	
Industrial Gas Distribution	
international development	
k-12 Education	
leisure entertainment	
Local govt	
Media	
Merchant Banking/Corp development	
MULTIPLE INDUSTRY HOLDING CORP	
NFPO - Charity	
Non Profit	
non-profit social research	
nonprofit	
nor for profit - YMCA	
Not for Profit	
Not for profit	
Oilfield Services	
Pension Administration	
Real Estate	
Real Estate Development & Sales	
Real Estate Development/Management	
real estate	
real estate	
real estate	
real estate development	
Remanufacturing	
Rental / Service	
research/marketing	
Restaurants	
school system	
Semiconductors	
Social Services	

49 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

Industry (Other specified)

Social Services NFP	
Sports/Entertainment	
Staffing	
State/Local Government	
Supply Chain Logistics	
Tech (hardware)	
Telecommunications products	
Temporary Staffing	
US subsidiary	
Utility	
Venture Capital	
vertically integrated consumer products	
Waste Paper Broker	
Winery / Adult beverages	

50 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

Sales Revenue

	 	Number	Percent	95% CI
	Less than $25 million	54	10.7 %	± 2.7 %
	$25-$99 million	140	27.8 %	± 3.9 %
	$100-$499 million	166	32.9 %	± 4.1 %
	$500-$999 million	48	9.5 %	± 2.5 %
	$1-$4.9 billion	54	10.7 %	± 2.7 %
	$5-$9.9 billion	16	3.2 %	± 1.5 %
	More than $10 billion	26	5.2 %	± 1.9 %
	Total	504	100.0 %

	Missing Cases = 8 
	Response Percent = 98.4 %

51 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

Weighted Sales Revenue (Millions)

	Minimum = 25

	Maximum = 11000

	Mean = 1317.1

	Median = 300

	Standard Deviation (Unbiased) = 2712.2

	95 Percent Confidence Interval Around The Mean = 1080.3 - 1553.9

	99 Percent Confidence Interval Around The Mean = 1006.0 - 1628.2

	Skewness = 2.7

	Kolmogorov-Smirnov Statistic For Normality = 8.8

Quartiles

	 1 = 62
	 2 = 300
	 3 = 750

Valid Cases = 504 
Missing Cases = 8 
Response Percent = 98.4%

52 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

Number of Employees

	 	Number	Percent	95% CI
	Fewer than 100	73	16.5 %	± 3.0 %
	100-499	147	33.3 %	± 3.9 %
	500-999	69	15.6 %	± 3.0 %
	1,000-2,499	41	9.3 %	± 2.4 %
	2,500-4,999	38	8.6 %	± 2.3 %
	5,000-9,999	28	6.3 %	± 2.0 %
	Over 10,000	46	10.4 %	± 2.5 %
	Total	442	100.0 %

	Missing Cases = 70 
	Response Percent = 86.3 %

53 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

Weighted Number of Employees

	Minimum = 100

	Maximum = 12000

	Mean = 2442.1

	Median = 750

	Standard Deviation (Unbiased) = 3772.4

	95 Percent Confidence Interval Around The Mean = 2090.4 - 2793.8

	99 Percent Confidence Interval Around The Mean = 1980.0 - 2904.1

	Skewness = 1.7

	Kolmogorov-Smirnov Statistic For Normality = 6.9

Quartiles

	 1 = 300
	 2 = 750
	 3 = 3750

Valid Cases = 442 
Missing Cases = 70 
Response Percent = 86.3%

54 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

Where are you personally located?

	 	Number	Percent	95% CI
	Midwest U.S.	137	26.9 %	± 3.8 %
	Northeast U.S.	100	19.6 %	± 3.4 %
	South Atlantic U.S.	86	16.9 %	± 3.3 %
	Pacific US	76	14.9 %	± 3.1 %
	South Central U.S.	62	12.2 %	± 2.8 %
	Mountain U.S.	25	4.9 %	± 1.9 %
	Central/Latin America	12	2.4 %	± 1.3 %
	Other	5	1.0 %	± 0.9 %
	Asia	3	0.6 %	± 0.7 %
	Europe	2	0.4 %	± 0.5 %
	Canada	1	0.2 %	± 0.4 %
	Total	509	100.0 %

	Missing Cases = 3 
	Response Percent = 99.4 %

55 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

Where are you personally located? - Other specified

Eastern US	
Mideast U.S.	
Saudi Arabia	
Southeast	
Southeast US	
Various Throughout U.S.	

56 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

Ownership

	 	Number	Percent	95% CI
	Private	313	65.6 %	± 4.2 %
	Public, NYSE	72	15.1 %	± 3.0 %
	Nonprofit	40	8.4 %	± 2.3 %
	Public, NASDAQ/AMEX	36	7.5 %	± 2.2 %
	Government	16	3.4 %	± 1.5 %
	Total	477	100.0 %

	Missing Cases = 35 
	Response Percent = 93.2 %

57 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

Foreign Sales

	 	Number	Percent	95% CI
	0%	229	45.3 %	± 4.3 %
	1-24%	190	37.5 %	± 4.2 %
	25-50%	47	9.3 %	± 2.5 %
	More than 50%	40	7.9 %	± 2.3 %
	Total	506	100.0 %

	Missing Cases = 6 
	Response Percent = 98.8 %

58 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

What is your company's credit rating? 

	 	Number	Percent	Cumulative
	AAA	50	13.1 %	13.1 %
	AA+	31	8.1 %	21.1 %
	AA	46	12.0 %	33.2 %
	AA-	10	2.6 %	35.8 %
	A+	22	5.7 %	41.5 %
	A	34	8.9 %	50.4 %
	A-	19	5.0 %	55.4 %
	BBB+	29	7.6 %	62.9 %
	BBB	30	7.8 %	70.8 %
	BBB-	21	5.5 %	76.2 %
	BB+	22	5.7 %	82.0 %
	BB	13	3.4 %	85.4 %
	BB-	7	1.8 %	87.2 %
	B+	12	3.1 %	90.3 %
	B	11	2.9 %	93.2 %
	B-	10	2.6 %	95.8 %
	CCC	13	3.4 %	99.2 %
	CC	1	0.3 %	99.5 %
	D	2	0.5 %	100.0 %
	Total	383	100.0 %	100.0 %

	Missing Cases = 0 
	Response Percent = 100.0 %

59 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

What is your company's credit rating? 

N=383		Total		Credit Rating	
		 		Actual	Estimate	
		 		A	B	
						
Total		383		168	215	
		100.0%		43.9%	56.1%	
						
AAA		50		25	25	
		13.1%		14.9%	11.6%	
						
AA+		31		19	12	
		8.1%		11.3%	5.6%	
				b	a	
						
AA		46		20	26	
		12.0%		11.9%	12.1%	
						
AA-		10		4	6	
		2.6%		2.4%	2.8%	
						
A+		22		14	8	
		5.7%		8.3%	3.7%	
						
A		34		15	19	
		8.9%		8.9%	8.8%	
						
A-		19		8	11	
		5.0%		4.8%	5.1%	
						
BBB+		29		13	16	
		7.6%		7.7%	7.4%	
						
BBB		30		12	18	
		7.8%		7.1%	8.4%	
						
BBB-		21		9	12	
		5.5%		5.4%	5.6%	
						
BB+		22		10	12	
		5.7%		6.0%	5.6%	
						
BB		13		4	9	
		3.4%		2.4%	4.2%	
						
BB-		7		3	4	
		1.8%		1.8%	1.9%	
						
B+		12		5	7	
		3.1%		3.0%	3.3%	
						
B		11		3	8	
		2.9%		1.8%	3.7%	

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

60 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2011

What is your company's credit rating? 

N=383		Total		Credit Rating	
		 		Actual	Estimate	
		 		A	B	
						
B-		10		0	10	
		2.6%		0.0%	4.7%	
				B	A	
						
CCC		13		3	10	
		3.4%		1.8%	4.7%	
						
CC		1		0	1	
		0.3%		0.0%	0.5%	
						
D		2		1	1	
		0.5%		0.6%	0.5%	

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