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)	7
3. What are the top three external concerns facing your corporation? - Other specified	8
4. What are the top three internal, company-specific concerns for your corporation? (rank #1, #2, #3)	9
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)	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 - Winsorized - 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 - Winsorized - 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 - Winsorized - Revenue Weighted]	17
6. Effect on your company...	18
7a.  By how much would your borrowing costs have to decrease to cause you to initiate, accelerate or increase investment projects in
the next year? [mean is estimate]	19
7a. It's likely we would not change investment plans in response to an interest rate decrease. Why not?	20
7b.  By how much would your borrowing costs have to increase to cause you to delay or stop investment projects in the next year?
[mean is estimate]	29
7b. It's likely we would not change investment plans in response to an interest rate increase. Why not?	30
7a.  By how much would your borrowing costs have to decrease to cause you to initiate, accelerate or increase investment projects in
the next year? [mean is estimate] [Only for those who plan to borrow to fund investment plans]	34
7b.  By how much would your borrowing costs have to increase to cause you to delay or stop investment projects in the next year?
[mean is estimate] [Only for those who plan to borrow to fund investment plans]	35
8.  Do you plan to borrow (issue debt, term loan, credit line, etc.) to fund at least part of your investment plans in the next year?	36
8b. Approximately what do you expect will be your cost of borrowing for the investment funds?	37
7a. By how much would your borrowing costs have to decrease to cause you to initiate, accelerate or increase investment projects in
the next year? [mean is estimate] [Only for those who plan to borrow to fund investment plans]	38
7b.  By how much would your borrowing costs have to increase to cause you to delay or stop investment projects in the next year?
[mean is estimate] [Only for those who plan to borrow to fund investment plans]	39
11.  How big a risk factor for your company is the judicial system (e.g., delays, uncertainty about procedures, costs, quality of decisions,
etc.) in the country where you are located?	46
12. Are you currently delaying or being extremely cautious about hiring or spending?	47
12. If you are currently delaying or being extremely cautious about hiring or spending... What's holding you back? (choose all that apply)	48
12. If you are currently delaying or being extremely cautious about hiring or spending... Other - Other Specified	49
13. On August 27, 2012 the annual yield on 10-yr treasury bonds was 1.8%. Please complete the following:	51
Revenue Weighted: 13. On August 27, 2012 the annual yield on 10-yr treasury bonds was 1.8%. Please complete the following:	52
Employee Weighted: 13. On August 27, 2012 the annual yield on 10-yr treasury bonds was 1.8%. Please complete the following:	53
Manufacturing capacity utilized	54
Manufacturing capacity utilized (Revenue Weighted)	55
Industry	56
Industry (Other specified)	57
Sales Revenue	59
Weighted Sales Revenue (Millions)	60
Number of Employees	61
Weighted Number of Employees	62
Where are you personally located?	63
Where are you personally located? - Other specified	64
Ownership	65
Foreign Sales	66
In what region of the world are most of your foreign sales?	67

 1 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

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

	 	Number	Percent	95% CI
	1=More optimistic	195	22.1 %	± 2.7 %
	0=No change	304	34.4 %	± 3.1 %
	-1=Less optimistic	384	43.5 %	± 3.3 %
	Total	883	100.0 %

	Mean = -0.2
	SD = 0.8

	Missing Cases = 4
	Response Percent = 99.5 %

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Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

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 = 100

	Mean = 52.1

	Median = 50

	Standard Deviation (Unbiased) = 17.1

	95 Percent Confidence Interval Around The Mean = 50.9 - 53.3

Quartiles

	 1 = 40
	 2 = 50
	 3 = 65

Valid Cases =764
Missing Cases =123
Response Percent = 86.1%

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Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

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	323	36.6 %	± 3.2 %
	0=No change	255	28.9 %	± 3.0 %
	-1=Less optimistic	304	34.5 %	± 3.1 %
	Total	882	100.0 %

	Mean = 0.0
	SD = 0.8

	Missing Cases = 5
	Response Percent = 99.4 %

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Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

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 = 62.0

	Median = 65

	Standard Deviation (Unbiased) = 19.8

	95 Percent Confidence Interval Around The Mean = 60.6 - 63.5

Quartiles

	 1 = 50
	 2 = 65
	 3 = 75

Valid Cases =760
Missing Cases =127
Response Percent = 85.7%

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Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

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

(N=887)

	Mean & SD	1st	2nd	3rd	Total	
	1.56	233	82	65	380
Consumer demand	0.77	26.27%	9.24%	7.33%	42.84%

	1.87	138	134	90	362
Federal government policies	0.78	15.56%	15.11%	10.15%	40.81%

	1.94	64	62	54	180
Federal budget deficit	0.81	7.22%	6.99%	6.09%	20.29%

	2.02	31	45	33	109
Financial regulation	0.77	3.49%	5.07%	3.72%	12.29%

	2.04	94	95	106	295
Price pressure from competitors	0.82	10.60%	10.71%	11.95%	33.26%

	2.07	72	85	88	245
Global financial instability	0.81	8.12%	9.58%	9.92%	27.62%

	2.08	39	41	49	129
Credit markets/interest rates	0.83	4.40%	4.62%	5.52%	14.54%

	2.11	24	15	32	71
Cost of non-fuel commodities	0.89	2.71%	1.69%	3.61%	8.00%

	2.11	14	26	21	61
Environmental regulation	0.75	1.58%	2.93%	2.37%	6.88%

	2.16	33	40	53	126
State or local government budget deficits	0.81	3.72%	4.51%	5.98%	14.21%

	2.17	39	76	70	185
National employment outlook	0.75	4.40%	8.57%	7.89%	20.86%

	2.17	8	18	15	41
Foreign competition	0.74	0.90%	2.03%	1.69%	4.62%

	2.19	28	48	52	128
Cost of fuel	0.77	3.16%	5.41%	5.86%	14.43%

	2.19	22	31	40	93
Slowing growth in major emerging markets	0.80	2.48%	3.49%	4.51%	10.48%

	2.23	19	29	39	87
Corporate tax rates	0.79	2.14%	3.27%	4.40%	9.81%

	2.23	10	20	22	52
Inflation	0.76	1.13%	2.25%	2.48%	5.86%

	2.42	3	19	21	43
Global political instability	0.63	0.34%	2.14%	2.37%	4.85%

	2.42	1	13	12	26
Currency risk	0.58	0.11%	1.47%	1.35%	2.93%

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Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

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

	Mean & SD	1st	2nd	3rd	Total	
	2.11	19	11	25	55
Other:	0.90	2.14%	1.24%	2.82%	6.20%

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Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

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	1.05	1.31	884

Federal government policies	0.87	1.16	884

Price pressure from competitors	0.65	1.04	884

Global financial instability	0.54	0.96	884

Federal budget deficit	0.42	0.90	884

National employment outlook	0.38	0.82	884

Credit markets/interest rates	0.28	0.75	884

State or local government budget deficits	0.26	0.71	884

Cost of fuel	0.26	0.70	884

Financial regulation	0.24	0.71	884

Slowing growth in major emerging markets	0.19	0.61	884

Corporate tax rates	0.17	0.58	884

Cost of non-fuel commodities	0.15	0.57	884

Environmental regulation	0.13	0.52	884

Inflation	0.10	0.45	884

Foreign competition	0.08	0.42	884

Global political instability	0.08	0.37	884

Currency risk	0.05	0.28	884

Other:	0.12	0.51	884

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Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

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

Banking/Finance/Insurance	health care costs	
Banking/Finance/Insurance	Healthcare Reform	
Banking/Finance/Insurance	Industry Consolidation	
Communications/Media	Corporate America too politicized	
Communications/Media	Individual tax rates as a Sub S corp	
Healthcare/Pharmaceutical	Gov't regulation	
Healthcare/Pharmaceutical	Health Care Reform	
Healthcare/Pharmaceutical	Health Care changes	
Healthcare/Pharmaceutical	Healthcare Payors/Reimbursement	
Healthcare/Pharmaceutical	Medicare Reimbursement	
Healthcare/Pharmaceutical	Significant reduction in payment of Medicare benefits; increasing volume of non-	
	insured patients	
Manufacturing	Gov Prime Contractor Outsourcing Plans	
Manufacturing	interest rates	
Manufacturing	No compromise congress	
Manufacturing	Price of Corn	
Manufacturing	state regulatory environment	
Manufacturing	U.S politics	
Manufacturing	Uncertain Governmental Policies	
Manufacturing	very mature markets	
Mining/Construction	Greed	
Mining/Construction	Increasing regulation, generally, not agency specific	
Other	College education costs	
Other	Conservative Capital Spending & slowed decision making  due to perceived	
	uncertainty	
Other	diminished contributions	
Other	election year	
Other	health care	
Other	Obama Care	
Other	other federal regulations	
Other	political instability in LATAM	
Other	weather/climate	
Retail/Wholesale	Consumer confidence	
Retail/Wholesale	Depressed Real Estate Market	
Retail/Wholesale	Growth of competition	
Retail/Wholesale	healthcare costs and uncertainity	
Retail/Wholesale	Lack of Major CRE Development	
Retail/Wholesale	Metals pricing	
Retail/Wholesale	State & Local taxes and regulations	
Service/Consulting	Collection	
Service/Consulting	demand for our product	
Service/Consulting	Drought/farm conditions	
Service/Consulting	Federal government uncertainty	
Service/Consulting	Health Care Reform	
Service/Consulting	Lack of substantive leadershi at all governmental levels	
Service/Consulting	Political Corporate Bureucracy	
Service/Consulting	Revitalized competitors	
Service/Consulting	Too many service jobs have been outsourced to labor markets outside the US.	
Service/Consulting	Uncertainty created by other factors	
Service/Consulting	Uncertainty on government policy	
Service/Consulting	Union Compliance	
Tech [Software/Biotech]	Corporate profitability	
Tech [Software/Biotech]	Skilled workforce	
Transportation/Energy	Raising capital in this economy	
Unspecified Industry	US political instability	

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Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

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

(N=887)

	Mean & SD	1st	2nd	3rd	Total	
	1.55	327	133	81	541
Ability to maintain margins	0.74	36.87%	14.99%	9.13%	60.99%

	1.99	95	87	92	274
Ability to forecast results	0.83	10.71%	9.81%	10.37%	30.89%

	1.99	42	48	41	131
Balance sheet weakness	0.80	4.74%	5.41%	4.62%	14.77%

Attracting and retaining qualified	2.01	106	102	109	317
employees	0.82	11.95%	11.50%	12.29%	35.74%

	2.07	93	135	117	345
Cost of health care	0.78	10.48%	15.22%	13.19%	38.90%

	2.09	63	69	83	215
Working capital management	0.82	7.10%	7.78%	9.36%	24.24%

	2.18	19	34	35	88
Supply chain risk	0.77	2.14%	3.83%	3.95%	9.92%

	2.21	16	20	30	66
Data security	0.81	1.80%	2.25%	3.38%	7.44%

	2.23	9	22	21	52
Pension obligations	0.73	1.01%	2.48%	2.37%	5.86%

	2.26	16	22	35	73
Protection of intellectual property	0.80	1.80%	2.48%	3.95%	8.23%

	2.27	23	62	62	147
Managing IT systems	0.72	2.59%	6.99%	6.99%	16.57%

	2.32	43	111	137	291
Maintaining morale/productivity	0.72	4.85%	12.51%	15.45%	32.81%

	2.35	6	16	21	43
Counterparty risk	0.72	0.68%	1.80%	2.37%	4.85%

	1.85	26	19	17	62
Other:	0.83	2.93%	2.14%	1.92%	6.99%

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Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

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	1.51	1.33	880

Cost of health care	0.76	1.06	880

Attracting and retaining qualified employees	0.72	1.08	880

Ability to forecast results	0.63	1.04	880

Maintaining morale/productivity	0.55	0.89	880

Working capital management	0.47	0.91	880

Balance sheet weakness	0.30	0.78	880

Managing IT systems	0.29	0.71	880

Supply chain risk	0.18	0.60	880

Protection of intellectual property	0.14	0.53	880

Data security	0.13	0.52	880

Pension obligations	0.10	0.45	880

Counterparty risk	0.08	0.39	880

Other:	0.15	0.59	880

11 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

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

Banking/Finance/Insurance	data integrity	
Banking/Finance/Insurance	Financial Regulation	
Banking/Finance/Insurance	Health of Clients	
Banking/Finance/Insurance	inflation	
Banking/Finance/Insurance	maintaining product quality	
Banking/Finance/Insurance	Obtain respective financing	
Banking/Finance/Insurance	revenue	
Banking/Finance/Insurance	Top-line growth/scale	
Communications/Media	Customer demand	
Communications/Media	product demand	
Healthcare/Pharmaceutical	Collecting Accounts Receivable	
Healthcare/Pharmaceutical	FDA Regulatory Issues	
Healthcare/Pharmaceutical	management data	
Healthcare/Pharmaceutical	Navigating regulatory changes impacting our industry of healthcare.	
Manufacturing	Abiliy to grow revenue in contracting economy	
Manufacturing	Business development	
Manufacturing	Consumer preferences	
Manufacturing	cost	
Manufacturing	growth	
Manufacturing	Improving efficiency to reduce costs.	
Manufacturing	lowe cost	
Manufacturing	new product development	
Manufacturing	Offering a strong value proposition	
Manufacturing	Productionbalance	
Manufacturing	progress of R&D programs	
Manufacturing	Quality	
Manufacturing	resource allocation	
Manufacturing	steady stream of business.	
Manufacturing	Technical	
Mining/Construction	Ability to win work	
Other	Budget reductions	
Other	CUSTOMER'S FINANCIAL HEALTH	
Other	donation & grant income instability	
Other	Expensive Customer Demands	
Other	family financial needs	
Other	keeping up with outside regulations	
Other	Loss of business	
Other	Lower internal costs	
Other	rising competition for employees	
Retail/Wholesale	Acquisition Execution	
Retail/Wholesale	Meeting forcasts	
Service/Consulting	Accountability	
Service/Consulting	Declining pool of clients	
Service/Consulting	expanding 3rd party reporting requirements	
Service/Consulting	Generating top line sales	
Service/Consulting	Growing corporate demand for services	
Service/Consulting	Growing revenue -- we cannot continue to cut costs	
Service/Consulting	Lackluster Customer Environment	
Service/Consulting	Revenue Growth	
Service/Consulting	sales force productivity	
Service/Consulting	Transition issues	
Service/Consulting	Wild Fire risks	
Tech [Software/Biotech]	Creating high value differentiation	
Tech [Software/Biotech]	Investor expectations	
Tech [Software/Biotech]	managing costs	
Tech [Software/Biotech]	N/A	
Tech [Software/Biotech]	Product not keeping up with competition	

12 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

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

Transportation/Energy	Ability to raise capital	
Transportation/Energy	Access to capital	
Transportation/Energy	commodity prices (Oil & Gas)	
Transportation/Energy	Financing R & D	
Transportation/Energy	Maintaining productivity	
Transportation/Energy	Sales and marketing traction/top line growth	

13 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

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	9.0	9.4	8.3 - 9.7	8	-50	150	660

Earnings	7.4	33.8	4.6 - 10.1	4	-80	400	584

Revenue	7.2	24.4	5.4 - 9.0	5	-83	300	689

Technology spending	6.9	27.9	4.3 - 9.5	3	-88	400	442

Capital spending	6.7	38.2	3.7 - 9.8	2	-98	400	601

Marketing/advertising spending	5.4	19.5	3.6 - 7.1	2	-50	200	474

Share repurchases	4.3	23.8	0.5 - 8.0	0	-30	200	156

Productivity (output per hour worked)	3.7	7.6	2.9 - 4.4	2	-25	100	387

Wages/Salaries	3.2	12.8	2.3 - 4.2	3	-75	200	651

Number of domestic full-time employees	3.0	16.5	1.7 - 4.3	1	-50	250	583

Research and development spending	2.8	11.9	1.4 - 4.1	0	-85	100	299

Number of offshore outsourced employees	2.6	10.8	1.0 - 4.1	0	-50	100	180

Dividends	2.4	7.4	0.8 - 4.1	0	-10	50	77

Prices of your products	1.9	5.7	1.4 - 2.4	2	-30	30	526

Cash on the balance sheet	1.8	29.2	-0.6 - 4.3	0	-95	300	552

Number of domestic temporary employees	0.5	13.9	-1.0 - 1.9	0	-75	175	345

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Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

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

(N=887)

	Mean & SD	Positive	Zero	Negative	Total
	  	1	0	-1	  	
	0.9	599	39	22	660
Health care costs	0.4	90.8%	5.9%	3.3%	100.0%

	0.8	570	46	35	651
Wages/Salaries	0.5	87.6%	7.1%	5.4%	100.0%

	0.6	261	101	25	387
Productivity (output per hour worked)	0.6	67.4%	26.1%	6.5%	100.0%

	0.6	295	98	49	442
Technology spending	0.7	66.7%	22.2%	11.1%	100.0%

	0.5	517	37	139	693
Revenue	0.8	74.6%	5.3%	20.1%	100.0%

	0.5	336	100	90	526
Prices of your products	0.8	63.9%	19.0%	17.1%	100.0%

	0.5	269	152	53	474
Marketing/advertising spending	0.7	56.8%	32.1%	11.2%	100.0%

	0.4	389	56	143	588
Earnings	0.9	66.2%	9.5%	24.3%	100.0%

	0.4	148	125	27	300
Research and development spending	0.6	49.3%	41.7%	9.0%	100.0%

	0.4	351	126	129	606
Capital spending	0.8	57.9%	20.8%	21.3%	100.0%

	0.4	328	139	117	584
Number of domestic full-time employees	0.8	56.2%	23.8%	20.0%	100.0%

	0.3	25	48	5	78
Dividends	0.6	32.1%	61.5%	6.4%	100.0%

Number of offshore outsourced	0.2	44	129	7	180
employees	0.5	24.4%	71.7%	3.9%	100.0%

	0.2	31	123	2	156
Share repurchases	0.4	19.9%	78.8%	1.3%	100.0%

Number of domestic temporary	0.2	107	189	49	345
employees	0.7	31.0%	54.8%	14.2%	100.0%

	0.2	266	114	175	555
Cash on the balance sheet	0.9	47.9%	20.5%	31.5%	100.0%

15 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

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

Revenue	6.1	14.1	5.9 - 6.2	5	-70.5	88.9

Earnings	5.0	16.5	4.8 - 5.2	4	-70.8	86.3

Technology spending	4.2	11.5	4.1 - 4.4	2	-47.8	61.6

Share repurchases	3.8	12.2	3.6 - 4.0	0	-30	50.8

Capital spending	3.7	21.7	3.5 - 3.9	2	-86.3	102

Marketing/advertising spending	3.2	8.4	3.1 - 3.3	1	-32.9	43.7

Research and development spending	2.6	6.2	2.5 - 2.7	1	-23.6	28.5

Prices of your products	2.1	3.9	2.1 - 2.2	2	-9.3	13

Dividends	2.1	5.0	2.0 - 2.1	0	-10	28

Cash on the balance sheet	-0.1	21.6	-0.4 - 0.1	0	-69.1	73.9

16 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

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	7.3	5.5	7.2 - 7.3	7	-9.3	27.3

Productivity (output per hour worked)	2.9	3.7	2.8 - 2.9	2	-11.2	18.6

Number of offshore outsourced employees	2.9	5.4	2.8 - 3.0	0	-18.5	23.7

Wages/Salaries	2.6	3.5	2.6 - 2.7	3	-21.9	28.4

Number of domestic full-time employees	1.5	6.9	1.4 - 1.6	0	-47.8	55.5

Number of domestic temporary employees	0.9	5.4	0.9 - 1.0	0	-26.8	27.8

17 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

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

Revenue	7.1	15.3	6.9 - 7.3	4	-11	88.9

Earnings	6.0	11.7	5.8 - 6.2	3	-20	86.3

Share repurchases	5.3	14.5	5.0 - 5.6	0	-20	50.8

Dividends	2.0	5.1	1.9 - 2.1	0	-10	28

Cash on the balance sheet	1.6	22.3	1.2 - 1.9	0	-69.1	73.9

18 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

6. Effect on your company...

(N=887)

		Very				Very	
	Mean & SD	Negative	Negative	Neutral	Positive	Positive	Total
	  	1	2	3	4	5	  	
6a. What is the effect on your company	2.7	16	244	597	19	2	878
of slowing growth in Asia?	0.5	1.8%	27.8%	68.0%	2.2%	0.2%	100.0%

6b. What is the effect on your company	2.5	45	393	421	18	1	878
of the current economic climate in Europe?	0.6	5.1%	44.8%	47.9%	2.1%	0.1%	100.0%

6c. What would be the effect on your	2.3	122	433	305	17	1	878
company if the Eurozone unravels?	0.7	13.9%	49.3%	34.7%	1.9%	0.1%	100.0%

19 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

7a.  By how much would your borrowing costs have to decrease to cause you to initiate, accelerate or increase investment projects in the next year? [mean is estimate]

	 	Number	Percent	95% CI
	0 percent - it's likely we would not change investment plans in
	   response to an interest rate decrease	451	67.6 %	± 3.3 %
	0.5 percent decrease in borrowing costs	20	3.0 %	± 1.0 %
	1 percent	38	5.7 %	± 1.3 %
	2 percent	51	7.6 %	± 1.5 %
	3 percent	34	5.1 %	± 1.3 %
	More than 3 percent	73	10.9 %	± 1.8 %
	Total	667	100.0 %

	Mean = 0.8
	SD = 1.3

	Missing Cases = 220
	Response Percent = 75.2 %

20 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

7a. It's likely we would not change investment plans in response to an interest rate decrease. Why not?

Banking/Finance/Insurance	Already funded.	
Banking/Finance/Insurance	Because we do not typically borrow	
Banking/Finance/Insurance	because we're USAA	
Banking/Finance/Insurance	Board reluctance to act.	
Banking/Finance/Insurance	Borrowing is not significant to our business.	
Banking/Finance/Insurance	Company has cash to invest.	
Banking/Finance/Insurance	Do not borrow	
Banking/Finance/Insurance	internally funded by reserves	
Banking/Finance/Insurance	investment projects based on growth	
Banking/Finance/Insurance	investment prospect potential returns are too low given the lack of economic	
	growth	
Banking/Finance/Insurance	Lack of demand.	
Banking/Finance/Insurance	Margins too tight to launch substantial new investments at this time.	
Banking/Finance/Insurance	No investments being considered	
Banking/Finance/Insurance	Not a capital operation	
Banking/Finance/Insurance	Not applicable to our business	
Banking/Finance/Insurance	Our cost of capital is already low. And we already have an aggressive cap exp	
	plan.	
Banking/Finance/Insurance	Our cost of funds is very low - 40 basis points. Our investment initiatives are	
	more predicated on level of credit losses (we are a bank)	
Banking/Finance/Insurance	Our current cash position would not require any additional debt.	
Banking/Finance/Insurance	Our investment plans are the underpinnings of a 5 year strategy of which 2012 is	
	year 3.  It was well thought out and our competitors are on a similar trajectory so	
	to stall investment now would have a negative effect on future results.	
Banking/Finance/Insurance	present investment plans are firm and within our budget irrespective of rates.	
Banking/Finance/Insurance	Rates already at historic lows.  Our investments are mainly internally financed.	
Banking/Finance/Insurance	Rates are so low that these costs are irrelevant	
Banking/Finance/Insurance	Spending needed for end clients	
Banking/Finance/Insurance	sufficient einteranal cash flow	
Banking/Finance/Insurance	sufficient internally generated capital.  Not in a capital intensive business	
Banking/Finance/Insurance	The borrowing costs can't go any lower.	
Banking/Finance/Insurance	The current administration's policies are strangling our business.  we might not be	
	in business 12 months from now if Obama is re-elected, and he continues with his	
	anti-business policies.	
Banking/Finance/Insurance	The issue we have is not one of capital but finding the right talent for the projects	
	we are working through	
Banking/Finance/Insurance	We are a community bank, our borrowing costs are already essentially zero.	
Banking/Finance/Insurance	we are very regulated industry	
Banking/Finance/Insurance	We borrow so little.  Very cash based business	
Banking/Finance/Insurance	We have a domninant position in a niche market.  There is limited to no	
	opportunity for investment within our core competencies.	
Banking/Finance/Insurance	we have cash on our BS that we can use.	
Banking/Finance/Insurance	we would need to detect a sustained increase in long term demand to justify any	
	change in investment projects	
Communications/Media	current financing is favorable and cheap and we have lots of debt capacity	
Communications/Media	Interest rates are low.  Negative outlook in Europe and need to ensure adequate	
	cash supplies.	
Communications/Media	marginal interest rate change will not be big enough to impact investments.	
	Headcount resource constraints will be primary limit on incremental investment.	
Communications/Media	My company has signficant cash on hand and our business model generates	
	excess free cash flow that is used to fund new business ventures.	
Communications/Media	No coherent plan yet	
Communications/Media	No debt now. Not interest rate sensitive.	
Communications/Media	We have a good interest rate and untapped cash and short term credit which	
	should provide resources necessary.  Also, we have significant capital investment	
	projects that we have held off funding and need to be completed.	
Healthcare/Pharmaceutical	Borrowing costs are already low. Future margins are the concern.	

21 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

7a. It's likely we would not change investment plans in response to an interest rate decrease. Why not?

Healthcare/Pharmaceutical	Borrowing costs are already very low	
Healthcare/Pharmaceutical	Cost to borrow already very low.	
Healthcare/Pharmaceutical	Don't borrow funds	
Healthcare/Pharmaceutical	don't need to borrow to meet our goals	
Healthcare/Pharmaceutical	Investments funded from operating cash	
Healthcare/Pharmaceutical	Longer term view. Net / net - interest rate changes don't impact total operating	
	earnings because we retain significant cash balances.	
Healthcare/Pharmaceutical	More driven by end-market fundamentals and pricing pressure.	
Healthcare/Pharmaceutical	Our Cash position is strong with AAA rating.  Change in investment plans will be	
	impacted more due to Sales Growth opportunities.	
Healthcare/Pharmaceutical	Our debt limit is maxed out.	
Healthcare/Pharmaceutical	Relative interest rates are so low now that any drop would have a minimal impact	
	based upon our projected need for capital	
Healthcare/Pharmaceutical	The targets we are looking at are high margin enough that interest rates would not	
	affect what we are looking at.	
Healthcare/Pharmaceutical	We are cash flow positive, no debt and one year's cash to revenue on our balance	
	sheet.	
Healthcare/Pharmaceutical	We are venture-backed, so any debt, while cheaper, would most likely be senior	
	to our investors claim on IP and profits. Debt may be used to help finance an	
	upcoming equipment purchase or bridge to a transaction; interest rate changes	
	would not affect our decision given the much higher cost of VC equity capital	
Healthcare/Pharmaceutical	We have already been expanding and investing in capital projects for the past	
	several years, and we need controled expansion.	
Healthcare/Pharmaceutical	We have several projects in the pipeline currently.  Interest rates are already very	
	low.  If rates dropped, we still couldn't develope any more capital projects.	
Healthcare/Pharmaceutical	We have sufficient cash for all projects	
Manufacturing	Aerospace & defeneis an investment driven business.  If you cut investments	
	now, you cut revenue later.	
Manufacturing	Already financed invextments for next year	
Manufacturing	Already have a very low cost of capital. Investment decisions will be more	
	impacted by strong/weak potential return from those projects.	
Manufacturing	Already quite levered	
Manufacturing	At the current rate environment, the rates are very competitive and do not have	
	much room to decrease.	
Manufacturing	Balance Sheet Weakness	
Manufacturing	Based on other factors such as cash flow.	
Manufacturing	Borrowing costs already very low.	
Manufacturing	borrowing costs are already low	
Manufacturing	Capital investments are made to increase capacity in response to customer	
	demands.	
Manufacturing	Company has sufficient cash to support investment projects	
Manufacturing	Company is cash rich, and will invest in itself	
Manufacturing	cost of borrowing is not part of decision to add capital	
Manufacturing	costs are currently very low.	
Manufacturing	Credit is hard enough to get where we would not be picky	
Manufacturing	Current borrowing rate is already less than 2%	
Manufacturing	Current demand does not justify any significant investment	
Manufacturing	Current rates are at an all time low, we have suficient funding on hand, and have	
	projects in place that need more than cash to accellerate.	
Manufacturing	demand for our product and our ability to raise prices accelerates our investment	
	projects.	
Manufacturing	Enough Cash Reserves	
Manufacturing	Equity Based	
Manufacturing	Fixed Budgeted Capital allocation form parent company.  Our capital	
	expenditures are not financed.	

22 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

7a. It's likely we would not change investment plans in response to an interest rate decrease. Why not?

Manufacturing	Forecasted sales will determine the justfication for increased investment plans	
	much more than interest rates, which we feel will continue to be low for quite	
	some time.	
Manufacturing	Foreign funding from parent company	
Manufacturing	how much lower could borrowing costs go?	
Manufacturing	If we need additional equipment to meet customer demand we will purchase it.	
	Regardless of what the interst rates are doing at that time.	
Manufacturing	INTEREST RATES ARE ALREADY VERY LOW	
Manufacturing	Interest rate is already extremely low	
Manufacturing	Interest rates are already extremely low	
Manufacturing	Interest rates are still very low and investment is already limited	
Manufacturing	Internally financed by parent company	
Manufacturing	Invest based on demand, not borrowing cost.	
Manufacturing	Investment expectations exceed cost of capital	
Manufacturing	Investment more heavily driven by sales growth expectations, in turn driven	
	predominantly by international growth by our primary customers.	
Manufacturing	Investment plans are weighted towards future returns.  Current borrowing rates	
	are low so there isn't much of an opportunity for a further reduction.	
Manufacturing	Investment returns not that sensitive	
Manufacturing	investment opportunities are less than reasonable borrowing costs	
Manufacturing	It is already at very low rates, so further decrease would not significantly impact	
	any ROI calculations.	
Manufacturing	It is not a question of price, it is a question of availabilty.  If you can't get	
	financing, it doesn't matter what it costs.  Money is very cheap right now, if you	
	can get it.	
Manufacturing	It is the depreciation expense that we cannot afford. Interest rates are really low	
	for us.	
Manufacturing	Limited borrowing capacity	
Manufacturing	My concern is not the cost of money.  My concern is the value of the investment.	
Manufacturing	nc	
Manufacturing	Near-term cap ex will not be significant or require new borrowing.	
Manufacturing	No investment plans projected currently.	
Manufacturing	NO PLANS TO EXPAND	
Manufacturing	Other factors are more important to our investment decisions	
Manufacturing	Our borrowing costs are favorable and our access to capital is sufficient	
Manufacturing	Our company generates a significant amount of cash (good or bad economy) and	
	our current sr. term A debt has an attractive interest rate.  We as a company will	
	not limit our investment (in the short term) in order to continue to develop our	
	products and facilities to position us for future growth.	
Manufacturing	Our growth path is incremental at this time.	
Manufacturing	Our investment projects mostly involve replacing worn out equipment. If the rate	
	was low one year with the next year forecast of a significant increase it might	
	accelerate one or two projects.	
Manufacturing	Our returns would be well in excess of these costs.  Currently sitting on cash as	
	well.	
Manufacturing	Presently borrowing costs are low enough to have have little impact on such a	
	decision	
Manufacturing	Rates are already at all time lows for us so further decrease, while welcomed,	
	would likely not affect or investment plans.	
Manufacturing	Rates are already at historic lows, so lower rates would not impact our decisions.	
Manufacturing	Rates are already extremely low	
Manufacturing	Rates are already so historically low that there is not room to lower them enough	
	to make a significant difference.	
Manufacturing	Rates are already so low that borrowing costs are not a significant factor in the	
	decision process.	
Manufacturing	Rates are already very low.	
Manufacturing	Rates are low enough already	

23 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

7a. It's likely we would not change investment plans in response to an interest rate decrease. Why not?

Manufacturing	Rates are low now	
Manufacturing	Rates are low now.  Plan to borrow the money I need now	
Manufacturing	Rates are reasonable as they stand	
Manufacturing	Rates are too low now to create a stimulus with lower rates	
Manufacturing	Rates are very low already	
Manufacturing	rates are already very low; company is positive cash-flow so no immediate need	
	to borrow	
Manufacturing	Self financed	
Manufacturing	Start up and be can't borrow.	
Manufacturing	The absolute $ amount would not be significant enough as our projects are not	
	that much impacted at the margin.	
Manufacturing	The interest rate will not fluctuate that great to influence our decisions in this area.	
Manufacturing	We already have exceptionally low financing available to us.  Our weighted	
	average interest rate on debt is currently the lowest in our history.	
Manufacturing	We already have very low interest cost	
Manufacturing	We already plan significant capital spending and our current borrowing costs are	
	very low as compared to historical rates.	
Manufacturing	We are a branch, and investments are Corporate mandated.	
Manufacturing	We are absorbing very significant investments from the last 2 years and must	
	regain prior efficincy levels before significant new investments.	
Manufacturing	We are internally financing our investments	
Manufacturing	we are not debt burdened	
Manufacturing	We don't borrow to fund investment projects.	
Manufacturing	we don't borrow money	
Manufacturing	We fund all growth from retained earnings.	
Manufacturing	We fund internally for the most part.	
Manufacturing	We have a stated strategy and borrowing costs would likely not cause us to	
	accelerate our plan.	
Manufacturing	We have adequate cash to fund our investment projects.	
Manufacturing	We have been getting good rates so far but I need revenue to stay consistent to	
	want to invest in projects - we need the sales	
Manufacturing	We have cash, in fact more cash than innovative ideas.  Our capital spending is	
	either driven by various EHSQ compliance reasons or strategic in nature, not as	
	sensitive to financial issues.	
Manufacturing	We have no debt and don't plan to barrow money.	
Manufacturing	We have no projects being delayed due to funding.	
Manufacturing	We need to see reliable growth before we are willing to invest any further.	
Manufacturing	We only have long term debt at this time.  A change in the interest rate would be	
	immaterial to our cost structure.  Also, interest rates are already as low as they	
	can go for our current facility, should borrowing become necessary on our	
	revolver.	
Manufacturing	WE PAY ACSH	
Manufacturing	We're very cash-generative so all our key needs are funded.	
Manufacturing	We self-fund all projects	
Manufacturing	We usually do not borrow for this purpose.	
Mining/Construction	Already too close to zero percent currently	
Mining/Construction	Balance Sheet weakness would prevent capital spending	
Mining/Construction	CURRENTLY OWNER OF COMPANY FINANCES ALL CAPITAL	
	PURCHASES INTERNALLY	
Mining/Construction	Interest rates are low now.	
Mining/Construction	minimal debt	
Mining/Construction	Our interest rates are mostly set already, and a decrease isn't going to drive our	
	plans.	
Mining/Construction	our production would have to increase by 75% to initiate, accelelerate or increase	
	plant investment.	
Mining/Construction	Real property and owned equipment is not a part of our plan.  We rent/lease what	
	we need.	

24 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

7a. It's likely we would not change investment plans in response to an interest rate decrease. Why not?

Mining/Construction	We are already high yield borrowers highly levered.	
Mining/Construction	We are already highly leveraged and cannot afford to take on more debt regardless	
	of cost.	
Mining/Construction	We do not borrow to fund investments, self-funded 100%.	
Mining/Construction	We have lots of cash	
Mining/Construction	We internally fund most capital additions.	
Mining/Construction	We need a better economic and regulatory climate.  A decrease in interest rates is	
	not what we need.	
Mining/Construction	we prefer to self-finance projects	
Other	About the only borrowing we do is typically tied to acquisitions and short-term	
	in nature due to our strong cash flows.	
Other	All projects are funded at current interest rate levels	
Other	As an electric utility, we will borrow and build what is necessary and adjust our	
	prices accordingly.	
Other	Base investments on WACC -- separate investment from financing decisions	
Other	Borrowing costs don't drive our investment decisions unless they rise	
	dramatically.	
Other	Borrowing is inevitable and will be driven by operational needs and our ability to	
	service that debt without regard to interest rate decrease.	
Other	Borrowing rates are at a low enough level already that a further decrease would	
	only justify investment projects that were not that compelling to begin with.	
Other	Continue to expand without regard thereto	
Other	Don't really have investment projects outside our 401K.	
Other	Interest rates already at historic lows.  It's not high interest rates that are holding	
	us back, but uncertainty about federal policies and loss of financial wealth of our	
	customers.	
Other	Interest rates are at an all time low and even a decrease of 3% would not	
	significantly increase the NOI on an investment.	
Other	interest rates are already negligible	
Other	Investment is focused on growth, not impacted by borrowing costs.	
Other	Investment plans are driven by perception of demand/opportunity more than by	
	cost of funds	
Other	Most of our capital is maintenance of a highly-capital-intensive business	
Other	Not the key factor	
Other	Our borrowing costs are relatively low at 2.35% and we use little leverage in our	
	operations	
Other	Our borrowing rates are very favorable currently and have not impacted any	
	investment plans.	
Other	Our revenue is from fee driven services provided to third parties. The third	
	parties bear the cost of financing the assets that provide the source of our revenue	
	(management of real estate investment properties)	
Other	Our spending is not capital intensive. We are in the franchise business.	
Other	Overall interest expenses will continue to drop based on company's historic rates,	
	and financing is in place which will insure that result.	
Other	rate is not the issue, it is availability	
Other	Rates are very favorable now	
Other	Strategic change in business model	
Other	The main driver of investment decisions for us is consumer demand and/or new	
	products/new market entries. Borrowing costs in an important factor, but at	
	current levels not a determinant one.	
Other	very little debt on balance sheet	
Other	We are already receiving low enough interest rates on borrowing to expand.  A	
	further lowering would not really change our growth plans.	
Other	We are currently in a holding pattern on capital investments regardless of rates	
	until the overall economy recovers more.	

25 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

7a. It's likely we would not change investment plans in response to an interest rate decrease. Why not?

Other	We are currently on a plan to reduce our debt levels to bring us back to	
	investment grade credit. As a result, a decrease in interest rates would most likely	
	not cause us to accelerate/increase investment projects in the next 12 to 24	
	months.	
Other	We are in growth mode.  Borrowing rate is below expected return.	
Other	We are not credit dependent in our investment projects.	
Other	We are using internal cash flow to fund expansion rather than participating in the	
	financial market.	
Other	We do not borrow under variable rates	
Other	We do not typically finance investment plans	
Other	We fund our own investment projects.	
Other	we have a significant increase in locked in contracts that require investment in	
	equipment and resources whether the rate goes up, down or sideways	
Other	We have excellent borrowing rates now.	
Other	We have plenty of liquidity	
Other	We have taken advantage of the low interest rate environment during the past	
	several years to raise capital for investment projects.	
Other	We need to make the investment to be competitive	
Other	We would not increase projects to have them not be fully utilized.	
Retail/Wholesale	Access and cost of money is not an issue.	
Retail/Wholesale	Already planning for substantial IT investments which will trigger borrowing.	
Retail/Wholesale	At the moment, our company enjoys extremely low cost of funds, and banks are	
	clamoring for our business. I can imagine that they could get much lower.	
Retail/Wholesale	Balance sheet weakness does not allow further borrowing	
Retail/Wholesale	Borrowing costs are set by our parent company.	
Retail/Wholesale	Can't relaistically get much lower	
Retail/Wholesale	Company change in ownership has set us on a path of expansion	
Retail/Wholesale	Current rate environment is very low, Credit appears avaialble	
Retail/Wholesale	Ease of borrowing and relief on taxes would have to change	
Retail/Wholesale	extremely low borrowing cost already and limited/reduced borrowing over the	
	past 36 months and continuing for an estimated 24 additional months	
Retail/Wholesale	Growth drives investment levels	
Retail/Wholesale	Have not tapped our Line of credit for three years.  If our profits decline and we	
	need borrow from our bank, a 1% decrease would allow us to continue investing	
Retail/Wholesale	Interest costs are already low	
Retail/Wholesale	Interest rates are currently near record lows.  A decrease would not prompt	
	additional spending.	
Retail/Wholesale	Internally funded, lack of profitable opportunities	
Retail/Wholesale	Low leverage and excess cash on hand.	
Retail/Wholesale	Maintain proper WCR and cash flow exposure	
Retail/Wholesale	Need	
Retail/Wholesale	no plans for investment projects	
Retail/Wholesale	not capital constrained at this point	
Retail/Wholesale	Our investment is more a function of total budgets and not interest rates.	
Retail/Wholesale	Our plans are not dependent upon financing.	
Retail/Wholesale	Our plans are predicated on forecasted demand and interest rates do not affect	
	that demand.	
Retail/Wholesale	Project investments would be funded by our private equity investors.	
Retail/Wholesale	project needs determine timeframe not borrowing costs.	
Retail/Wholesale	rate already too low	
Retail/Wholesale	Rates already extremely low - further reductions can only be minimual and will	
	not drive investment decisions	
Retail/Wholesale	Rates are low	
Retail/Wholesale	Rates are rock bottome	
Retail/Wholesale	Recently renegotiated our Line-of-Credit, adding to our credit availability - with	
	tiered pricing tied to Balance Sheet leverage improvements	
Retail/Wholesale	Restraints and floors oninterest rates in effect.	

26 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

7a. It's likely we would not change investment plans in response to an interest rate decrease. Why not?

Retail/Wholesale	The investment plans are not tied to the interest rate, but rather to sales and profit	
Retail/Wholesale	The rates are low enough - borrowing cap is the issue	
Retail/Wholesale	They are already low. Even if real rates decrease, we aren't going to borrow for	
	any less...	
Retail/Wholesale	Too much economic uncertainty - want to be able to respond should the fiscal	
	cliff scenario occur in the US	
Retail/Wholesale	We already view rates at a historic low and are aggressively pursuing options to	
	acquire other business and take on new debt. It is doubtful a further decline would	
	cause us to accelerate that initiative further.	
Retail/Wholesale	We are a privately-held company that with commercial financing that is backed	
	by substantial liquid assets--borrowing costs are immaterial to our decisions on	
	capex and other investments.	
Retail/Wholesale	We are already investing as much as we can in new technology and warehouse	
	expansion	
Retail/Wholesale	We are not planning capital in the next 12 months	
Retail/Wholesale	We borrow very litle and would not base our investment decisions on the cost of	
	borrowing.	
Retail/Wholesale	We do not borrow to finance capital improvements or investments	
Retail/Wholesale	We do not rely heavy on debt financing	
Retail/Wholesale	We don't need to borrow. Have cash on hand	
Retail/Wholesale	We self fund all projects.	
Retail/Wholesale	We will do our improvements regardless of interest rates.	
Service/Consulting	Borrowing costs are already very low. Overall economy is weak not warranting	
	any need for additional investment	
Service/Consulting	Borrowing costs are factored into the annual and five year project budgets.  The	
	projects are necessary to replace aging equipment.	
Service/Consulting	Calculated demand has more influence.	
Service/Consulting	cash on hand	
Service/Consulting	Company does not borrow money.  Plans based on cash flow projections.	
Service/Consulting	Cost of financing is not the primary driver of investment decisions.	
Service/Consulting	Current rates already very favorable.	
Service/Consulting	Deep pockets	
Service/Consulting	demand doesn't justify it	
Service/Consulting	financing costs are nominal costs at the current interest rates. Revenue demand is	
	very weak and therefore fewer investment opportunities outside of those for	
	productivity improvement.	
Service/Consulting	I have to borrow regardless.	
Service/Consulting	Industry requires minimal investment	
Service/Consulting	Interest rate has already been calculated in our projections and plans - We don't	
	anticipate investing more because of interest rates.	
Service/Consulting	Interest rates are already low and our investment would primarily be driven by	
	the business case for the investment.  Interest costs should not be a significant	
	enough cost in our investment at current rates	
Service/Consulting	Interest rates are low enough now that they do not provide much of a hurdle.	
Service/Consulting	Investment will be driven by customer demand.	
Service/Consulting	Investments internally financed.	
Service/Consulting	It's not a capital intensive business. It's where we are in the IT product cycle that	
	counts.	
Service/Consulting	Limited use of borrowed capital	
Service/Consulting	Minimal use of borrowing, therefore impact would not be significant	
Service/Consulting	no borrowing is anticipated. all funded from cash flow	
Service/Consulting	no expansion plans	
Service/Consulting	Our cash position is good.	
Service/Consulting	Our company has not debt and an ample supply of cash reserves.	
Service/Consulting	Our engineering service industry is based more on government spending and our	
	capital investment is PEOPLE	
Service/Consulting	Our investments do not rely on the use of debt.	

27 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

7a. It's likely we would not change investment plans in response to an interest rate decrease. Why not?

Service/Consulting	Plans are static and economy is questionable	
Service/Consulting	Rates are fairly low already.	
Service/Consulting	rates are already low enough	
Service/Consulting	rates at record lows	
Service/Consulting	Services organization without significant capex requirements.  Low ROI on any	
	significant capex.	
Service/Consulting	uncertain returns	
Service/Consulting	Uncertainty of business climate	
Service/Consulting	We already have very low rates.	
Service/Consulting	We are 100% owner financed.	
Service/Consulting	We are already investing heavier than the normal runrate of investment.	
Service/Consulting	we are internally funding projects	
Service/Consulting	We are not investment intensive.	
Service/Consulting	We are not reviewing any plans.	
Service/Consulting	We are planning an expansion that has to happen to stay viable in this market.	
Service/Consulting	We attract all the capital needed for our businesses.	
Service/Consulting	We borrow as needed for operations.	
Service/Consulting	We can self fund	
Service/Consulting	We do not use significant amounts of borrowed funds.	
Service/Consulting	we don't have any plans to borrow	
Service/Consulting	We fund investment projects internally.	
Service/Consulting	We have enough cash on our balance sheet to fund anticipated growth.	
Service/Consulting	We have no company debt.	
Service/Consulting	We have no need for debt at the moment.	
Tech [Software/Biotech]	amount already leveraged	
Tech [Software/Biotech]	borrowing costs are alreay very low	
Tech [Software/Biotech]	Cash from operations sufficient to meet investment neds	
Tech [Software/Biotech]	Funding mostly with internally generated cash	
Tech [Software/Biotech]	Growth demands investments in markets and customer support and infrastructure	
Tech [Software/Biotech]	It is not interest rates but ROI and uncertainty	
Tech [Software/Biotech]	Our borrowing costs are already very low and our balance sheet is healthy.	
Tech [Software/Biotech]	Our revenue is directly tied to our investment in new products and customer	
	experience.  We believe that we must continue investing to maintain our market	
	share and margin.	
Tech [Software/Biotech]	sales are sluggish so we're not inclined to take on additional debt without the	
	revenue to pay back loans	
Tech [Software/Biotech]	The borrowing costs are not the critical factor in our investment decision.	
Tech [Software/Biotech]	They are about as low as they can be already.	
Tech [Software/Biotech]	they are relatively low now. incremental change will not alter the course	
Tech [Software/Biotech]	try not to borrow for growth	
Tech [Software/Biotech]	Very selective in investments -- not agressive in borrowing for such.	
Tech [Software/Biotech]	We are mostly equity funded, so debt is not a big driver.  However, if it were,	
	today's rates are already pretty low, so lowering them more may not help drive	
	investment.	
Tech [Software/Biotech]	we are not leveraged.	
Tech [Software/Biotech]	We currently hold no debt and have substanital cash reserves so we don't	
	anticipate borrowoing at all in the next year.	
Tech [Software/Biotech]	We have been funding investments internally	
Tech [Software/Biotech]	We have made all the acquisitions we can absorb at this point	
Transportation/Energy	Already highly leveraged.  It may cause us to refinance, but not change current	
	investment plans.	
Transportation/Energy	Bank agreements limiting capital investment	
Transportation/Energy	Capital expenditure decisions are based more on levels of free cash flows versus	
	debt	
Transportation/Energy	Cost of investment is not primary factor in our investment project criterea	

28 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

7a. It's likely we would not change investment plans in response to an interest rate decrease. Why not?

Transportation/Energy	Currently financing capital additions in the 3% range.  The desired yields on a	
	project just won't be effected by couple points of interest cost one way or the	
	other.	
Transportation/Energy	Customer demand drives capital investments	
Transportation/Energy	demand	
Transportation/Energy	Excess capcity of ships	
Transportation/Energy	Interests rates are low enough for investments to be made.  However, near and	
	mid term economic conditions do not allow for these decisions to be executed at	
	this time.	
Transportation/Energy	Investments are closely tied to new business and therefore not driven by interest	
	rates.	
Transportation/Energy	Large current cash balances and reasonable borrowing costs at any likely level	
Transportation/Energy	More dependendent on availability of project financing.  Has not been available.	
Transportation/Energy	Most of our investments are funded by internally generated cash flow.  In	
	addition, borrowing costs are less impactful on our investment decisions than	
	customer demand. Finally, borrowing costs cant get much lower, can they?	
Transportation/Energy	Our borrowing costs are already low enough to entice us to borrow should be	
	believe additional investment dollars were needed.	
Transportation/Energy	Our business is capital intensive, therefore we must maintain a certain amount of	
	asset replacement annually or suffer by incurring higher maintenance cost than we	
	should.	
Transportation/Energy	THEY ARE AT ALL TIME LOWS NOW	
Transportation/Energy	We already expanded our business by 40% 2011 and 2012	
Transportation/Energy	We are not financing investment with debt.	
Transportation/Energy	We are working to de-leverage our balance sheet and would not increase planned	
	debt levels as a result of decreased interest rates.	
Transportation/Energy	WE don't have alot of projects in the works	
Transportation/Energy	We have sufficient IRR opportunities that interest costs are not an issue.	
Unspecified Industry	More dependent on customer demand than interest rates	
Unspecified Industry	We are already in the process of taking advantage of the low interest rate	
	environment	

29 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

7b.  By how much would your borrowing costs have to increase to cause you to delay or stop investment projects in the next year? [mean is estimate]

	 	Number	Percent	95% CI
	0 percent - it's likely we would not change investment plans in
	   response to an interest rate increase	254	38.8 %	± 3.0 %
	0.5 percent increase in borrowing costs	35	5.4 %	± 1.3 %
	1 percent	56	8.6 %	± 1.6 %
	2 percent	106	16.2 %	± 2.1 %
	3 percent	71	10.9 %	± 1.8 %
	More than 3 percent	132	20.2 %	± 2.3 %
	Total	654	100.0 %

	Mean = 1.5
	SD = 1.4

	Missing Cases = 233
	Response Percent = 73.7 %

30 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

7b. It's likely we would not change investment plans in response to an interest rate increase. Why not?

Banking/Finance/Insurance	Already funded.	
Banking/Finance/Insurance	Because we do not typically borrow	
Banking/Finance/Insurance	because we're USAA	
Banking/Finance/Insurance	Company has cash to invest.	
Banking/Finance/Insurance	internally funded by reserves	
Banking/Finance/Insurance	Lack of demand from market place.	
Banking/Finance/Insurance	Margins too tight to launch substantial new investments at this time.	
Banking/Finance/Insurance	Mission critical investments need to be made for the future of teh business	
Banking/Finance/Insurance	Need to invest for the future of the business, would find offsets elsewhere	
Banking/Finance/Insurance	Not a capital operation	
Banking/Finance/Insurance	Our borrowing costs are locked in and we have covered all planned investments	
Banking/Finance/Insurance	Our current cash position would not require any additional debt.	
Banking/Finance/Insurance	Rates are so low that these costs are irrelevant	
Banking/Finance/Insurance	same reason as in 7 a.	
Banking/Finance/Insurance	See previous response	
Banking/Finance/Insurance	Spending needed for end clients	
Banking/Finance/Insurance	sufficient internal cash flow	
Banking/Finance/Insurance	sufficient internally generated capital.  Not in a capital intensive business	
Banking/Finance/Insurance	The issue we have is not one of capital but finding the right talent for the projects	
	we are working through	
Banking/Finance/Insurance	We actually need the interest rate environment to increase to benefit our	
	profitability.	
Banking/Finance/Insurance	We are cash rich and do not forsee the need to finance any of our growth	
	initiatives.  Rising rates would actually be welcomed as we are a net investor.	
Banking/Finance/Insurance	We fund purchases internally, without borrowing.	
Banking/Finance/Insurance	We have a domninant position in a niche market.  There is limited to no	
	opportunity for investment within our core competencies.	
Communications/Media	No coherent plan yet	
Communications/Media	No debt now.	
Communications/Media	These are must do projects to insure a future for the company	
Communications/Media	We've locked in fixed interest rates on debt refinanced in the last 18 months.	
Healthcare/Pharmaceutical	Access to capital is not presenlty limiting	
Healthcare/Pharmaceutical	Don't borrow funds	
Healthcare/Pharmaceutical	Investments funded from operating cash	
Healthcare/Pharmaceutical	Our Cash position is strong with AAA rating.  Change in investment plans will be	
	impacted more due to Sales Growth opportunities.	
Healthcare/Pharmaceutical	utilizing internal funds	
Healthcare/Pharmaceutical	We are cash flow positive, no debt and one year's cash to revenue on our balance	
	sheet.  Any investments in projects are made from existing cash and/or short-term	
	projected cash flow.	
Healthcare/Pharmaceutical	We are venture-backed, so any debt, while cheaper, would most likely be senior	
	to our investors claim on IP and profits. Debt may be used to help finance an	
	upcoming equipment purchase or bridge to a transaction; interest rate changes	
	would not affect our decision given the much higher cost of VC equity capital	
Healthcare/Pharmaceutical	We have several projects in the pipeline currently.  If rates increased, we still need	
	the capital projects in the pipeline and our increase in investment income from	
	fixed rate instruments would probably offset most of the interest expense.	
Healthcare/Pharmaceutical	We have sufficient cash for all projects	
Healthcare/Pharmaceutical	We've already made significant investments, so a change now wouldn't change	
	anything for us.  It's already done.	
Manufacturing	As long as the IRR exceeds WACC we would invest	
Manufacturing	Based on other factors such as cash flow.	
Manufacturing	Capital required to run the business.	
Manufacturing	Cash from operations is sufficient to fund our capital projects.	
Manufacturing	Company is cash rich, and will invest in itself	
Manufacturing	Credit is hard enough to get where we would not be picky	
Manufacturing	Debt Free	

31 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

7b. It's likely we would not change investment plans in response to an interest rate increase. Why not?

Manufacturing	Equity Based	
Manufacturing	Foreign funding from parent comapny	
Manufacturing	I depends who is elected in November to determine if I make any investments.	
Manufacturing	If return is good relative to borrowing costs, we will make the investment	
Manufacturing	Interest rates are still very low and investment is already limited	
Manufacturing	Internally financed by parent company	
Manufacturing	Invest based on demand, not borrowing cost.May purchase earlier than norm or	
	lock in rates.	
Manufacturing	Investment returns not that sensitive	
Manufacturing	investment opportunities return projections far outweigh reasonable borrowing	
	costs	
Manufacturing	nc	
Manufacturing	No plans currently considered.	
Manufacturing	NO PLANS TO EXPAND	
Manufacturing	Our investment rate is as low as we dare go already.	
Manufacturing	Project payback projections would be adjusted	
Manufacturing	Rates are low and if there is a worthwhile project an increase in rates will not be	
	likely to change what we do	
Manufacturing	Same	
Manufacturing	Same	
Manufacturing	same as 7.a.	
Manufacturing	Same as first comment	
Manufacturing	same as other	
Manufacturing	Same as previous answer	
Manufacturing	See other side	
Manufacturing	Self financed	
Manufacturing	Short term rates are not that likely to move up that fast and it is unlikely in this	
	environment that the Fed will raise rates.	
Manufacturing	Strategic initiatives planned will deliver returns far in excess of any (even 3+%)	
	borrowing cost increase.	
Manufacturing	Strtegic driven investment, long term focus	
Manufacturing	We are internally financing our investments	
Manufacturing	we are not debt burdened or driven by borrowing funds. Most capital spending	
	and other are internally driven by cash generation	
Manufacturing	We can't borrow anyway as a start up	
Manufacturing	we don't borrow money	
Manufacturing	We don't use external financing	
Manufacturing	We fund all growth from retained earnings.  Raid inflation, however, would cause	
	us to reconsider.	
Manufacturing	We fund internally for the most part.	
Manufacturing	We have adequate cash to fund our investment projects.	
Manufacturing	WE PAY CASH	
Manufacturing	We Self-fund all projects	
Manufacturing	We usually do not borrow for this purpose.	
Mining/Construction	minimal debt	
Mining/Construction	Most projects are mandatory.	
Mining/Construction	No projects on the horizon.	
Mining/Construction	OWNER FINANCES ALL CAPITAL PURCHASES INTERNALLY	
Mining/Construction	Same as in the 'decrease' question.	
Mining/Construction	see previous answer	
Mining/Construction	We do not borrow to fund investments, self-funded 100%.	
Mining/Construction	We internally fund most capital additions.	
Other	As an electric utility, we will borrow and build what is necessary and adjust our	
	prices accordingly.	
Other	Continue to expand without regard thereto	
Other	Don't really have investment projects outside our 401K.	
Other	Funds have been raised or commitments secured.	

32 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

7b. It's likely we would not change investment plans in response to an interest rate increase. Why not?

Other	look left	
Other	Our borrowing costs are relatively low at 2.35% and we use little leverage in our	
	operations	
Other	Our business plans are in place and would require larger increase to derail current	
	plans.	
Other	rate is not issue, it is availability	
Other	Same reason as 7a.	
Other	See answer to 7.a.	
Other	Strategic change in business model	
Other	The fees and costs associated with investment projects has dropped the effective	
	rate of return to almost zero.	
Other	Total debt is the key	
Other	We are not credit dependent in our investment projects.	
Other	We do not borrow but rather use operating cash to fund operating costs and	
	capital expenditures.	
Other	We do not borrow under variable rates	
Other	We do not typically finance investment plans	
Other	We have plenty of liquidity	
Retail/Wholesale	Access and cost of money is not an issue.	
Retail/Wholesale	Balance sheet weakness does not allow further borrowing	
Retail/Wholesale	Borrowing costs are set by our parent company.	
Retail/Wholesale	Current sales is not meeting advertising expenses.	
Retail/Wholesale	Internally funded	
Retail/Wholesale	Low leverage and excess cash on hand.	
Retail/Wholesale	Our plans are not dependent upon financing	
Retail/Wholesale	Our plans are predicated on forecasted demand and interest rates do not affect	
	that demand.	
Retail/Wholesale	Project investments would be funded by our private equity investors.	
Retail/Wholesale	project needs determine timeframe not borrowing costs.	
Retail/Wholesale	Projects that we are forecasting have significant ROI's, so we would likely go	
	forward with all initiatives planned.	
Retail/Wholesale	Rates would have to increase dramatically to alter current investment plans,	
	though a significant rise could make potential acquisitions too expensive	
Retail/Wholesale	See answer to previous question	
Retail/Wholesale	The investments projects are necessary to maintain our business.  Not planning	
	on much discretionary investment	
Retail/Wholesale	We are a privately-held company that with commercial financing that is backed	
	by substantial liquid assets--borrowing costs are immaterial to our decisions on	
	capex and other investments.	
Retail/Wholesale	We are not planning capital in the next 12 months	
Retail/Wholesale	We do not borrow to finance capital improvements or investments	
Retail/Wholesale	We do not rely heavy on debt financing	
Retail/Wholesale	We have interest rate swap hedges in place.	
Retail/Wholesale	We self fund all projects.	
Retail/Wholesale	We would use cash on hand	
Service/Consulting	Borrowing costs are factored into the annual and five year project budgets.  The	
	projects are necessary to replace aging equipment.	
Service/Consulting	Borrowing unnecessary for expertise consulting	
Service/Consulting	cash flow will fund our needs	
Service/Consulting	Company does not borrow money.  Plans based on cash flow projections.	
Service/Consulting	Cost of financing is not the primary driver of investment decisions.	
Service/Consulting	Deep pockets	
Service/Consulting	EWe don't jave any investplans requiring additional borrowing.	
Service/Consulting	financing costs are nominal costs at the current interest rates.	
Service/Consulting	I have capital projects that have to move ahead to stay in business.	
Service/Consulting	Investments internally financed.	
Service/Consulting	No company debt at this time.	

33 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

7b. It's likely we would not change investment plans in response to an interest rate increase. Why not?

Service/Consulting	our cash position is good.	
Service/Consulting	Our investment is line-of-credit for salaries. It is more affected by the amount of	
	credit we can get than by the interest rate	
Service/Consulting	Our investments do not rely on the use of debt.	
Service/Consulting	Same	
Service/Consulting	Same reason.	
Service/Consulting	See box on left	
Service/Consulting	Uncertainity of business climate	
Service/Consulting	We are 100% owner financed.	
Service/Consulting	We are a services industry cash generator, not a capital intensive cash burner.	
Service/Consulting	We are currently not reviewing any opportunities.	
Service/Consulting	we are internally funding projects	
Service/Consulting	We do not use significant amounts of borrowed funds.	
Service/Consulting	We have ample cash reserves.	
Service/Consulting	We have enough cash on hand to self-fund without borrowing.	
Service/Consulting	We have enough cash on our balance sheet to fund anticipated growth.	
Service/Consulting	We have no need for debt at the moment.	
Service/Consulting	We need to invest to grow - we would look for reduction in other areas to offset.	
Service/Consulting	While capital availability is integral to execution we believe capital is always	
	available for compelling business propositions.	
Tech [Software/Biotech]	Cash from operations sufficient to meet investment neds	
Tech [Software/Biotech]	Funding mostly with internally generated cash	
Tech [Software/Biotech]	sales are sluggish so we're not inclined to take on additional debt without the	
	revenue to pay back loans	
Tech [Software/Biotech]	Same as previous	
Tech [Software/Biotech]	Same as previous answer	
Tech [Software/Biotech]	The borrowing costs are not the critical factor in our investment decision.	
Tech [Software/Biotech]	we are already locked into spending	
Tech [Software/Biotech]	We are not leveraged	
Tech [Software/Biotech]	We can afford to pay a higher cost of debt if needed to meet our objectives	
Tech [Software/Biotech]	We currently hold no debt and have substanital cash reserves so we don't	
	anticipate borrowoing at all in the next year.	
Tech [Software/Biotech]	We will stick with our existing investment plan for the next 3-5 years since our	
	investment cycles require stability to be effective	
Transportation/Energy	Already highly leveraged.  We would be unlikely to change investment plans.	
Transportation/Energy	Capital expenditure decisions are based more on levels of free cash flows versus	
	debt	
Transportation/Energy	Capital investments are funded by internally generated cash flow.  We have fixed	
	rate term debt, so the increase would not impact our cash flows enough to curtail	
	investment.	
Transportation/Energy	Customer demand drives capital investments	
Transportation/Energy	Investments are closely tied to new business and therefore not driven by interest	
	rates.	
Transportation/Energy	Large current cash balances and reasonable borrowing costs at any likely level	
Transportation/Energy	No large purchases need to be financed in the next 12 months	
Transportation/Energy	See response to 7a.	
Transportation/Energy	We are not financing investment with debt.	
Transportation/Energy	We have sufficient IRR opportunities that interest costs are not an issue.	
Unspecified Industry	Same answer given to the previous question	

34 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

7a.  By how much would your borrowing costs have to decrease to cause you to initiate, accelerate or increase investment projects in the next year? [mean is estimate] [Only for those who plan to borrow to fund investment plans]

	 	Number	Percent	95% CI
	0 percent - it's likely we would not change investment plans in
	   response to an interest rate decrease	197	66.1 %	± 5.3 %
	0.5 percent decrease in borrowing costs	6	2.0 %	± 1.4 %
	1 percent	19	6.4 %	± 2.5 %
	2 percent	31	10.4 %	± 3.1 %
	3 percent	16	5.4 %	± 2.3 %
	More than 3 percent	29	9.7 %	± 3.0 %
	Total	298	100.0 %

	Mean = 0.8
	SD = 1.2

	Missing Cases = 35
	Response Percent = 89.5 %

35 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

7b.  By how much would your borrowing costs have to increase to cause you to delay or stop investment projects in the next year? [mean is estimate] [Only for those who plan to borrow to fund investment plans]

	 	Number	Percent	95% CI
	0 percent - it's likely we would not change investment plans in
	   response to an interest rate increase	81	26.8 %	± 4.6 %
	0.5 percent increase in borrowing costs	16	5.3 %	± 2.3 %
	1 percent	35	11.6 %	± 3.3 %
	2 percent	55	18.2 %	± 4.0 %
	3 percent	41	13.6 %	± 3.6 %
	More than 3 percent	74	24.5 %	± 4.5 %
	Total	302	100.0 %

	Mean = 1.8
	SD = 1.4

	Missing Cases = 31
	Response Percent = 90.7 %

36 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

8.  Do you plan to borrow (issue debt, term loan, credit line, etc.) to fund at least part of your investment plans in the next year?

	 	Number	Percent	95% CI
	No	464	58.2 %	± 3.4 %
	Yes	333	41.8 %	± 3.4 %
	Total	797	100.0 %

	Missing Cases = 0
	Response Percent = 100.0 %

37 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

8b. Approximately what do you expect will be your cost of borrowing for the investment funds?

	Mean	SD	Median	Minimum	Maximum	Total

Cost of borrowing %	5.1	2.7	5	0	15	238

38 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

7a. By how much would your borrowing costs have to decrease to cause you to initiate, accelerate or increase investment projects in the next year? [mean is estimate] [Only for those who plan to borrow to fund investment plans]

N=333		Total		Cost of Borrowing Investment Funds	
		 		<3%	3%-5.9%	6%-8.9%	9%-11.9%	12%-14.9%	15%+	
		 		A	B	C	D	E	F	
										
Total		333		31	132	52	15	4	4	
		100.0%		13.0%	55.5%	21.8%	6.3%	1.7%	1.7%	
										
0 percent - it's likely we
would not change
investment plans in
response to an interest		

197		

23	

94	

18	

5	

2	

1	
rate decrease		66.1%		74.2%	79.7%	38.3%	38.5%	66.7%	33.3%	
				Cd	CD	AB	aB			
										
0.5 percent decrease in		6		1	1	2	0	0	0	
borrowing costs		2.0%		3.2%	0.8%	4.3%	0.0%	0.0%	0.0%	
										
1 percent		19		1	7	5	1	0	0	
		6.4%		3.2%	5.9%	10.6%	7.7%	0.0%	0.0%	
										
2 percent		31		1	8	10	3	0	1	
		10.4%		3.2%	6.8%	21.3%	23.1%	0.0%	33.3%	
				cdf	Cd	aB	ab		a	
										
3 percent		16		2	2	5	1	0	1	
		5.4%		6.5%	1.7%	10.6%	7.7%	0.0%	33.3%	
					cF	b			B	
										
More than 3 percent		29		3	6	7	3	1	0	
		9.7%		9.7%	5.1%	14.9%	23.1%	33.3%	0.0%	
					cde	b	b	b		
										
Mean		0.8		0.6	0.4	1.4	1.6	1.2	1.7	
SD		1.2		1.3	1.0	1.4	1.5	2.0	1.5	
				cd	CDf	aB	aB		b	

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

39 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

7b.  By how much would your borrowing costs have to increase to cause you to delay or stop investment projects in the next year? [mean is estimate] [Only for those who plan to borrow to fund investment plans]

N=333		Total		Cost of Borrowing Investment Funds	
		 		<3%	3%-5.9%	6%-8.9%	9%-11.9%	12%-14.9%	15%+	
		 		A	B	C	D	E	F	
										
Total		333		31	132	52	15	4	4	
		100.0%		13.0%	55.5%	21.8%	6.3%	1.7%	1.7%	
										
0 percent - it's likely we
would not change
investment plans in
response to an interest		

81		

11	

35	

7	

7	

0	

0	
rate increase		26.8%		36.7%	28.9%	14.9%	53.8%	0.0%	0.0%	
				c		aD	C			
										
0.5 percent increase in		16		1	5	4	1	0	1	
borrowing costs		5.3%		3.3%	4.1%	8.5%	7.7%	0.0%	33.3%	
				f	f				ab	
										
1 percent		35		2	13	8	0	0	0	
		11.6%		6.7%	10.7%	17.0%	0.0%	0.0%	0.0%	
										
2 percent		55		9	21	13	3	0	1	
		18.2%		30.0%	17.4%	27.7%	23.1%	0.0%	33.3%	
										
3 percent		41		3	13	6	1	1	1	
		13.6%		10.0%	10.7%	12.8%	7.7%	33.3%	33.3%	
										
More than 3 percent		74		4	34	9	1	2	0	
		24.5%		13.3%	28.1%	19.1%	7.7%	66.7%	0.0%	
				e			e	ad		
										
Mean		1.8		1.5	1.8	1.8	1.0	3.3	1.8	
SD		1.4		1.3	1.4	1.2	1.3	0.3	1.3	
				e		de	cE	acD		

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

46 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

11.  How big a risk factor for your company is the judicial system (e.g., delays, uncertainty about procedures, costs, quality of decisions, etc.) in the country where you are located?

	 	Number	Percent	95% CI
	1=Not a significant factor	276	31.5 %	± 3.1 %
	2=	133	15.2 %	± 2.4 %
	3=	208	23.7 %	± 2.8 %
	4=	180	20.5 %	± 2.7 %
	5=Very significant factor	79	9.0 %	± 1.9 %
	Total	876	100.0 %

	Mean = 2.6
	SD = 1.4

	Missing Cases = 11
	Response Percent = 98.8 %

47 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

12. Are you currently delaying or being extremely cautious about hiring or spending? 

(N=887)

	Yes	No	Total	
	588	266	854
about hiring?	68.9%	31.1%	100.0%

	674	180	854
about spending?	78.9%	21.1%	100.0%

48 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

12. If you are currently delaying or being extremely cautious about hiring or spending... What's holding you back? (choose all that apply)

	 	Number	Percent	95% CI
	Concern about demand for our products	414	58.2 %	± 3.6 %
	Concern about unemployment and its impact on the economy	370	52.0 %	± 3.7 %
	Concern about government budget deficits	361	50.8 %	± 3.7 %
	Concern about the U.S. presidential election	361	50.8 %	± 3.7 %
	Concern about potential changes in U.S. tax policy	321	45.1 %	± 3.7 %
	Regulatory environment	248	34.9 %	± 3.5 %
	Global economic turmoil	232	32.6 %	± 3.5 %
	Concern about slowing growth in major emerging markets	199	28.0 %	± 3.3 %
	Concern about Federal Reserve policy	161	22.6 %	± 3.1 %
	Difficulty obtaining funds	112	15.8 %	± 2.7 %
	Other (please specify)	41	5.8 %	± 1.7 %
	Total	2820

	Number of Cases = 711
	Number of Responses = 2820
	Average Number Of Responses Per Case = 4.0
	Number Of Cases With At Least One Response = 707
	Response Percent = 99.4 %

49 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

12. If you are currently delaying or being extremely cautious about hiring or spending... Other - Other Specified

keeping a positive bottom line	
	
rapid growth in FTE over last few years	
	
health care costs	
	
Environmental regulations	
	
healthcare	
	
price competition/shrinking markets	
	
Prioritization of needs across portfolio of companies.	
	
a negative energy policy	
	
Healthcare Reform	
	
So much uncertainty	
	
State and Local Budgets/Spending	
	
Congressional gridlock	
	
Maintaining Margins	
	
Concern about possible sequestration of military spending	
	
Obama Care	
	
Concern about unemployment adn consumer disposable income shrinking	
	
entitlements0	
	
Fuel costs	
	
Healthcare bill	
	
Obama Care	
	
Uncertainty due to gridlock in Washington	
	
Shorter term projects	
	
Parent Company Profit Expectations	
	
Global impact on our customers.	
	
Stock market	
	
Congressional inaction by Republicans	
	
tax policy uncertainty	
	
Uncertainty in inability to act of Congress	

50 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

12. If you are currently delaying or being extremely cautious about hiring or spending... Other - Other Specified

weather effect on crops	
	
NEW USDA  REGULATIONS	
	
Lack of Commercial Development	
	
Technical	
	
Concern about health care policy	
	
Everything is a factor!	
	
budget sequestration	
	
Liquidity	
	
caution during the recovery	
	
b/s weakness	
	
effects of the ACA	
	
Limited net profit	
	
State budget reductions	
	
Inability for Congress to work [together]	

51 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

13. On August 27, 2012 the annual yield on 10-yr treasury bonds was 1.8%. 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:	0.7	6.9	0.2 - 1.2	2	-50	50	777

Over the next 10 years, I expect the average annual S&P 500
return will be: Expected return:	5.9	5.5	5.5 - 6.3	5	-20	90	800

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:	9.5	8.4	8.9 - 10.1	8	0	100	781

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:	-2.5	9.5	-3.1 - -1.8	0	-50	50	778

Over the next year, I expect the average annual S&P 500 return
will be: Expected return:	3.8	5.0	3.5 - 4.2	4	-20	75	804

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:	8.2	6.1	7.8 - 8.6	7	-10	60	776

52 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

Revenue Weighted: 13. On August 27, 2012 the annual yield on 10-yr treasury bonds was 1.8%. 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:	0.5	5.0	0.5 - 0.5	2	-12.8	14.3

Over the next 10 years, I expect the average annual S&P 500 return will
be: Expected return:	5.5	2.9	5.5 - 5.5	5	-4.8	16.6

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:	9.1	4.8	9.1 - 9.2	8	0	25.9

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:	-3.0	8.0	-3.1 - -2.9	0	-21	16.2

Over the next year, I expect the average annual S&P 500 return will be:
Expected return:	3.7	3.2	3.7 - 3.8	4	-6	13.7

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:	8.0	4.6	7.9 - 8.0	7	-3.7	20.2

53 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

Employee Weighted: 13. On August 27, 2012 the annual yield on 10-yr treasury bonds was 1.8%. 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:	0.6	4.6	0.6 - 0.7	2	-12.8	14.3

Over the next 10 years, I expect the average annual S&P 500 return will
be: Expected return:	5.6	3.0	5.5 - 5.6	5	-4.8	16.6

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:	9.0	4.7	9.0 - 9.1	8	0	25.9

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:	-3.0	7.8	-3.1 - -2.9	0	-21	16.2

Over the next year, I expect the average annual S&P 500 return will be:
Expected return:	3.9	3.2	3.9 - 3.9	4	-6	13.7

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:	8.1	4.6	8.1 - 8.2	8	-3.7	20.2

54 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

Manufacturing capacity utilized

	Mean	SD	95% CI	Median	Minimum	Maximum	Total

% of capacity utilized in first half of 2012	73.1	17.8	70.5 - 75.7	75	10	100	184

% of capacity utilization planned for the remainder of 2012	73.2	18.0	70.6 - 75.8	75	10	100	184

55 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

Manufacturing capacity utilized (Revenue Weighted)

	Mean	SD	95% CI	Median	Minimum	Maximum	Total

% of capacity utilized in first half of 2012	74.0	16.1	71.7 - 76.3	75.5	10	100	184

% of capacity utilization planned for the remainder of 2012	72.7	14.4	70.6 - 74.7	75	10	100	184

56 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

Industry

	 	Number	Percent	95% CI
	Manufacturing	195	22.3 %	± 2.7 %
	Service/Consulting	152	17.4 %	± 2.5 %
	Retail/Wholesale	113	12.9 %	± 2.2 %
	Banking/Finance/Insurance	107	12.2 %	± 2.1 %
	Other	102	11.7 %	± 2.1 %
	Healthcare/Pharmaceutical	57	6.5 %	± 1.6 %
	Transportation/Energy	54	6.2 %	± 1.6 %
	Tech [Software/Biotech]	36	4.1 %	± 1.3 %
	Mining/Construction	33	3.8 %	± 1.2 %
	Communications/Media	26	3.0 %	± 1.1 %
	Total	875	100.0 %

	Missing Cases = 12
	Response Percent = 98.6 %

57 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

Industry (Other specified)

ACCOUNTING	
Advertising Agency	
Aerospace	
Aerospace & Defense	
AGRICULTURE	
Agriculture	
Agriculture	
Agriculture	
Agriculture	
Aquarium	
Architectural	
Beauty & Health	
Benefit Plan Administration	
beverage alcohol	
Business Trade Association	
capital goods and services	
Charity	
Church	
Commercial Real Estate	
Computer Hardware Service and Repair	
Consulting	
Consumer Goods	
consumer goods manufacturer	
Consumer Products	
county government	
Data Processing	
Defense/Aerospace	
Education	
Education	
Education	
Education	
Education	
Education	
Education	
Education	
Education	
Education	
education	
education	
Educational/Non-Profit	
Engineering Consulting Services	
Entertainment/hospitality	
entertainment	
enviro	
Federal Government	
Foundation	
franchise food	
Government	
Government	
Government contractor-services	
government	
government	
Higher Ed Association	
Horticulture IP	
Hospitality	
Hospitality	
Hospitality/Entertainment	

58 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

Industry (Other specified)

hospitality/tourism/travel	
hotel	
import/distribution	
industrial distribution	
int.logistics	
Leisure/Education	
Local government	
Local transportation agency	
Logistics	
Maritime	
Mental and Behavioral Health	
non for profit	
Non Profit Human Services	
Non-Profit	
Non-profit	
non profit	
non profit	
non profit	
non-profit	
non-profit membership	
Nonprofit membership organization	
nonprofit arts	
Not For  Profit	
Not for Profit	
Oil & Gas Contractor	
Public Education	
Publishing	
Real Estate	
Real Estate	
Real Estate Development/Management	
Real Estate Development/Operations	
Real Estate, Agriculture	
Real estate	
Real estate services	
Rental / Service	
RESIDENTIAL & COMMERCIAL RE	
Restaurants	
Restaurants	
Senior Housing and Health Care	
Single and multi family Building supply	
Staffing	
Truck Sales/Service/Parts/Leasing	
Utility	
wine services	

59 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

Sales Revenue

	 	Number	Percent	95% CI
	Less than $25 million	314	35.9 %	± 3.2 %
	$25-$99 million	215	24.6 %	± 2.8 %
	$100-$499 million	172	19.7 %	± 2.6 %
	$500-$999 million	55	6.3 %	± 1.6 %
	$1-$4.9 billion	65	7.4 %	± 1.7 %
	$5-$9.9 billion	18	2.1 %	± 0.9 %
	More than $10 billion	36	4.1 %	± 1.3 %
	Total	875	100.0 %

	Missing Cases = 12
	Response Percent = 98.6 %

60 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

Weighted Sales Revenue (Millions)

	Minimum = 25

	Maximum = 11000

	Mean = 960.0

	Median = 62

	Standard Deviation (Unbiased) = 2437.9

	95 Percent Confidence Interval Around The Mean = 798.5 - 1121.6

	99 Percent Confidence Interval Around The Mean = 747.8 - 1172.3

	Skewness = 3.3

	Kolmogorov-Smirnov Statistic For Normality = 12.1

Quartiles

	 1 = 25
	 2 = 62
	 3 = 300

Valid Cases =875
Missing Cases =12
Response Percent = 98.6%

61 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

Number of Employees

	 	Number	Percent	95% CI
	Fewer than 100	309	40.0 %	± 3.1 %
	100-499	231	29.9 %	± 2.9 %
	500-999	67	8.7 %	± 1.7 %
	1,000-2,499	45	5.8 %	± 1.4 %
	2,500-4,999	36	4.7 %	± 1.3 %
	5,000-9,999	27	3.5 %	± 1.1 %
	Over 10,000	58	7.5 %	± 1.6 %
	Total	773	100.0 %

	Missing Cases = 114
	Response Percent = 87.1 %

62 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

Weighted Number of Employees

	Minimum = 100

	Maximum = 12000

	Mean = 1633.5

	Median = 300

	Standard Deviation (Unbiased) = 3320.9

	95 Percent Confidence Interval Around The Mean = 1399.4 - 1867.6

	99 Percent Confidence Interval Around The Mean = 1325.9 - 1941.1

	Skewness = 2.4

	Kolmogorov-Smirnov Statistic For Normality = 10.9

Quartiles

	 1 = 100
	 2 = 300
	 3 = 750

Valid Cases =773
Missing Cases =114
Response Percent = 87.1%

63 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

Where are you personally located?

	 	Number	Percent	95% CI
	Midwest U.S.	266	30.2 %	± 3.0 %
	Northeast U.S.	217	24.6 %	± 2.8 %
	South Atlantic U.S.	130	14.8 %	± 2.3 %
	Pacific US	111	12.6 %	± 2.2 %
	South Central U.S.	96	10.9 %	± 2.0 %
	Mountain U.S.	51	5.8 %	± 1.5 %
	Other	7	0.8 %	± 0.6 %
	Canada	3	0.3 %	± 0.4 %
	Central/Latin America (including Mexico)	0	0.0 %	± 0.0 %
	Asia	0	0.0 %	± 0.0 %
	Europe	0	0.0 %	± 0.0 %
	Total	881	100.0 %

	Missing Cases = 6
	Response Percent = 99.3 %

64 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

Where are you personally located? - Other specified

East & West US	
Florida	
Mid-Atlantic	
Middle East	
Southeast U.S.	
Southeast U.S.	
Southeast U.S.	
Southwest	
southwest	
Texas	

65 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

Ownership

	 	Number	Percent	95% CI
	Private	611	73.4 %	± 3.1 %
	Public, NYSE	89	10.7 %	± 2.0 %
	Nonprofit	67	8.1 %	± 1.7 %
	Public, NASDAQ/AMEX	39	4.7 %	± 1.4 %
	Government	26	3.1 %	± 1.1 %
	Total	832	100.0 %

	Missing Cases = 55
	Response Percent = 93.8 %

66 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

Foreign Sales

	 	Number	Percent	95% CI
	0%	423	48.3 %	± 3.3 %
	1-24%	313	35.7 %	± 3.2 %
	25-50%	87	9.9 %	± 2.0 %
	More than 50%	53	6.1 %	± 1.6 %
	Total	876	100.0 %

	Missing Cases = 11
	Response Percent = 98.8 %

67 

Duke CFO magazine Global Business Outlook survey - U.S. - Third Quarter, 2012

In what region of the world are most of your foreign sales?

	 	Number	Percent	95% CI
	Europe	166	43.3 %	± 4.5 %
	Asia/Pacific Basin	93	24.3 %	± 3.7 %
	US/Canada	76	19.8 %	± 3.5 %
	Latin America (including Mexico)	41	10.7 %	± 2.7 %
	Africa	7	1.8 %	± 1.1 %
	Total	383	100.0 %

	Missing Cases = 70
	Response Percent = 84.5 %