EX-12 7 dex12.txt COMPUTATION OF RATIOS Exhibit 12 McDONALD'S CORPORATION STATEMENT RE: COMPUTATION OF RATIOS Dollars In Millions
Six months ended June 30, Years ended December 31, 2001 2000 2000 1999 1998 1997 1996 ------------------ --------------------------------------------------- EARNINGS AVAILABLE FOR FIXED CHARGES - Income before provision for income taxes $1,209.7 $1,435.7 $2,882.3 $2,884.1 $2,307.4(1) $2,407.3 $2,251.0 - Minority interest in operating results of majority-owned subsidiaries, including fixed charges related to redeemable preferred stock, less equity in undistributed operating results of less-than-50% owned affiliates 0.5 4.0 16.2 21.9 23.7 28.3 39.6 - Provision for income taxes of 50% owned affiliates included in consolidated income before provision for income taxes 35.0 51.8 93.7 72.8 99.9 69.0 73.2 - Portion of rent charges (after reduction for rental income from subleased properties) considered to be representative of interest factors* 112.5 95.1 207.0 178.5 161.3 145.9 130.9 - Interest expense, amortization of debt discount and issuance costs, and depreciation of capitalized interest* 263.5 229.5 470.3 440.1 461.9 424.8 392.2 ------------------ --------------------------------------------------- $1,621.2 $1,816.1 $3,669.5 $3,597.4 $3,054.2 $3,075.3 $2,886.9 ================== =================================================== FIXED CHARGES - Portion of rent charges (after reduction for rental income from subleased properties) considered to be representative of interest factors* $ 112.5 $ 95.1 $ 207.0 $ 178.5 $ 161.3 $ 145.9 $ 130.9 - Interest expense, amortization of debt discount and issuance costs, and fixed charges related to redeemable preferred stock* 254.8 224.7 457.9 431.3 453.4 426.1 410.4 - Capitalized interest* 7.2 7.5 16.5 14.7 18.3 23.7 23.5 ------------------ --------------------------------------------------- $ 374.5 $ 327.3 $ 681.4 $ 624.5 $ 633.0 $ 595.7 $ 564.8 ================== =================================================== RATIO OF EARNINGS TO FIXED CHARGES 4.33 5.55 5.39 5.76 4.82(2) 5.16 5.11 ================== ===================================================
* Includes amounts of the Registrant and its majority-owned subsidiaries, and one-half of the amounts of 50%-owned affiliates. (1) Includes $160.0 million pre-tax special charge and $161.6 million of Made For You costs for a pre-tax total of $321.6 million. (2) Excluding the special charge and Made For You costs, the ratio of earnings to fixed charges for the year ended December 31, 1998 was 5.33.