MCDONALDS CORP - FORM 10-K - EX-12 - COMPUTATION OF RATIOS - February 25, 2016

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EX-32.1 - SECTION 906 CERTIFICATION OF CEO - MCDONALDS CORPmcd-12312015xex321.htm
10-K - FORM 10-K - MCDONALDS CORPmcd-12312015x10k.htm
EX-21 - SUBSIDIARIES OF THE REGISTRANT - MCDONALDS CORPmcd-12312015xex21.htm
EX-23 - CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM - MCDONALDS CORPmcd-12312015xex23.htm
EX-24 - POWER OF ATTORNEY - MCDONALDS CORPmcd-12312015xex24.htm
EX-31.1 - SECTION 302 CERTIFICATION OF CEO - MCDONALDS CORPmcd-12312015xex311.htm
EX-31.2 - SECTION 302 CERTIFICATION OF CFO - MCDONALDS CORPmcd-12312015xex312.htm
EX-32.2 - SECTION 906 CERTIFICATION OF CFO - MCDONALDS CORPmcd-12312015xex322.htm
10-K - PDF OF ENTIRE FORM 10-K - MCDONALDS CORPmcd1231201510k.pdf


Exhibit 12. Computation of Ratios
 
Ratio of Earnings to Fixed Charges
Dollars in millions
Years ended December 31, 2015
 
 
2014

 
2013

 
2012

 
2011

Earnings available for fixed charges
 
 
 
 
 
 
 
 
 
 
 
Income before provision for income taxes
 
 
$
6,555.7

 
$
7,372.0

 
$
8,204.5

 
$
8,079.0

 
$
8,012.2

Noncontrolling interest expense in operating results
of majority-owned subsidiaries less equity in
undistributed operating results of less than
50%-owned affiliates
 
 
7.3

 
6.3

 
9.0

 
11.1

 
13.3

Income tax provision (benefit) of 50%-owned
affiliates included in income from continuing
operations before provision for income taxes
 
 
3.7

 
(0.1
)
 
23.8

 
64.0

 
65.5

Portion of rent charges (after reduction for rental
income from subleased properties) considered
to be representative of interest factors*
 
 
365.1

 
374.6

 
374.6

 
358.1

 
339.4

Interest expense, amortization of debt discount and
issuance costs, and depreciation of capitalized
interest*
 
 
660.4

 
596.1

 
548.9

 
550.1

 
520.5

 
 
 
$
7,592.2

 
$
8,348.9

 
$
9,160.8

 
$
9,062.3

 
$
8,950.9

Fixed charges
 
 
 

 
 

 
 

 
 

 
 

Portion of rent charges (after reduction for rental
income from subleased properties) considered
to be representative of interest factors*
 
 
$
365.1

 
$
374.6

 
$
374.6

 
$
358.1

 
$
339.4

Interest expense, amortization of debt discount
and issuance costs*
 
 
643.7

 
579.8

 
532.1

 
532.8

 
503.0

Capitalized interest*
 
 
9.4

 
14.8

 
15.6

 
16.1

 
14.0

 
 
 
$
1,018.2

 
$
969.2

 
$
922.3

 
$
907.0

 
$
856.4

Ratio of earnings to fixed charges
 
 
7.46

 
8.61

 
9.93

 
9.99

 
10.45

*
Includes amounts of the Company and its majority-owned subsidiaries, and one-half of the amounts of 50%-owned affiliates. The Company records interest expense on unrecognized tax benefits in the provision for income taxes. This interest is not included in the computation of fixed charges.
Return on Average Assets
 
 
 
 
 
 
 
Dollars in millions
Years ended December 31, 2015
 
 
2014

 
2013

Operating income
 
 
$
7,145.5

 
$
7,949.2

 
$
8,764.3

Average assets(1)
 
 
$
34,137.6

 
$
36,456.0

 
$
35,406.0

Return on average assets
 
 
20.9
%
 
21.8
%
 
24.8
%
(1)
Represents the average of the month-end balances of total assets for the past 13 months.
Return on Average Common Equity
 
 
 
 
 
 
 
Dollars in millions
Years ended December 31, 2015
 
 
2014

 
2013

Net income
 
 
$
4,529.3

 
$
4,757.8

 
$
5,585.9

Average shareholders' equity(1)
 
 
$
10,034.3

 
$
15,178.0

 
$
15,581.7

Return on average common equity
 
 
45.1
%
 
31.3
%
 
35.8
%
(1)
Represents the average of the month-end balances of shareholders' equity for the past 13 months.
Fixed-Rate Debt as a Percent of Total Debt(1)(2)
 
 
 
 
 
 
 
Dollars in millions
Years ended December 31, 2015
 
 
2014

 
2013

Total debt obligations
 
 
$
24,122.1

 
$
14,935.7

 
$
14,129.8

Fair value adjustments
 
 
(1.8
)
 
(4.7
)
 
(12.8
)
Deferred debt costs
 
 
106.0

 
54.0

 
0.0

Debt obligations before fair value adjustments and deferred debt costs
 
 
$
24,226.3

 
$
14,985.0

 
$
14,117.0

Fixed-rate debt
 
 
$
19,611.3

 
$
11,155.3

 
$
10,489.5

Fixed-rate debt as a percent of total debt
 
 
81
%
 
74
%
 
74
%
(1)
Based on debt obligations before the effects of fair value hedging adjustments and deferred debt costs. These effects are excluded as they have no impact on the obligation at maturity. See Debt financing note to the consolidated financial statements.
(2)
Includes the effect of interest rate swaps.




Foreign Currency-Denominated Debt as a Percent of Total Debt(1)
 
 
 
 
 
 
Dollars in millions
Years ended December 31, 2015
 
 
2014

 
2013

Total debt obligations
 
 
$
24,122.1

 
$
14,935.7

 
$
14,129.8

Fair value adjustments
 
 
(1.8
)
 
(4.7
)
 
(12.8
)
Deferred debt costs
 
 
106.0

 
54.0

 
0.0

Debt obligations before fair value adjustments and deferred debt costs
 
 
$
24,226.3

 
$
14,985.0

 
$
14,117.0

Foreign currency-denominated debt
 
 
$
7,016.1

 
$
5,930.3

 
$
5,756.4

Foreign currency-denominated debt as a percent of total debt
 
 
29
%
 
40
%
 
41
%
(1)
Based on debt obligations before the effects of fair value hedging adjustments and deferred debt costs. These effects are excluded as they have no impact on the obligation at maturity. See Debt financing note to the consolidated financial statements.
Total Debt as a Percent of Total Capitalization(1)(2)
 
 
 
 
 
 
Dollars in millions
Years ended December 31, 2015
 
 
2014

 
2013

Total debt obligations
 
 
$
24,122.1

 
$
14,935.7

 
$
14,129.8

Fair value adjustments
 
 
(1.8
)
 
(4.7
)
 
(12.8
)
Deferred debt costs
 
 
106.0

 
54.0

 
0.0

Debt obligations before fair value adjustments and deferred debt costs
 
 
$
24,226.3

 
$
14,985.0

 
$
14,117.0

Total capitalization
 
 
$
31,314.2

 
$
27,838.4

 
$
30,126.7

Total debt as a percent of total capitalization
 
 
77
%
 
54
%
 
47
%
(1)
Based on debt obligations before the effects of fair value hedging adjustments and deferred debt costs. These effects are excluded as they have no impact on the obligation at maturity. See Debt financing note to the consolidated financial statements.
(2)
Total capitalization represents debt obligations before fair value adjustments and deferred debt costs, and total shareholders' equity.
Cash Provided by Operations as a Percent of Total Debt(1)
 
 
 
 
 
 
Dollars in millions
Years ended December 31, 2015
 
 
2014

 
2013

Total debt obligations
 
 
$
24,122.1

 
$
14,935.7

 
$
14,129.8

Fair value adjustments
 
 
(1.8
)
 
(4.7
)
 
(12.8
)
Deferred debt costs
 
 
106.0

 
54.0

 
0.0

Debt obligations before fair value adjustments and deferred debt costs
 
 
$
24,226.3

 
$
14,985.0

 
$
14,117.0

Cash provided by operations
 
 
$
6,539.1

 
$
6,730.3

 
$
7,120.7

Cash provided by operations as a percent of total debt
 
 
27
%
 
45
%
 
50
%
(1)
Based on debt obligations before the effects of fair value hedging adjustments and deferred debt costs. These effects are excluded as they have no impact on the obligation at maturity. See Debt financing note to the consolidated financial statements.
Return on Incremental Invested Capital
 
 
 
 
 
 
 
See Part II, Item 7, page 28 of this Form 10-K for the calculation.


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