Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Jan. 31, 2014 | Jun. 30, 2013 | |
Document Documentand Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'MCD | ' | ' |
Entity Registrant Name | 'MCDONALDS CORP | ' | ' |
Entity Central Index Key | '0000063908 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 989,881,374 | ' |
Entity Public Float | ' | ' | $98,932,168,368 |
Consolidated_Statement_of_Inco
Consolidated Statement of Income (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
REVENUES | ' | ' | ' |
Sales by Company-operated restaurants | $18,874.20 | $18,602.50 | $18,292.80 |
Revenues from franchised restaurants | 9,231.50 | 8,964.50 | 8,713.20 |
Total revenues | 28,105.70 | 27,567 | 27,006 |
OPERATING COSTS AND EXPENSES | ' | ' | ' |
Food & paper | 6,361.30 | 6,318.20 | 6,167.20 |
Payroll & employee benefits | 4,824.10 | 4,710.30 | 4,606.30 |
Occupancy & other operating expenses | 4,393.20 | 4,195.20 | 4,064.40 |
Franchised restaurants-occupancy expenses | 1,624.40 | 1,527 | 1,481.50 |
Selling, general & administrative expenses | 2,385.60 | 2,455.20 | 2,393.70 |
Other operating (income) expense, net | -247.2 | -243.5 | -236.8 |
Total operating costs and expenses | 19,341.40 | 18,962.40 | 18,476.30 |
Operating income | 8,764.30 | 8,604.60 | 8,529.70 |
Interest expense-net of capitalized interest of $15.5, $15.9 and $14.0 | 521.9 | 516.6 | 492.8 |
Nonoperating (income) expense, net | 37.9 | 9 | 24.7 |
Income before provision for income taxes | 8,204.50 | 8,079 | 8,012.20 |
Provision for income taxes | 2,618.60 | 2,614.20 | 2,509.10 |
Net income | $5,585.90 | $5,464.80 | $5,503.10 |
Earnings per common share–basic | $5.59 | $5.41 | $5.33 |
Earnings per common share–diluted | $5.55 | $5.36 | $5.27 |
Dividends declared per common share | $3.12 | $2.87 | $2.53 |
Weighted-average shares outstanding–basic | 998.4 | 1,010.10 | 1,032.10 |
Weighted-average shares outstanding–diluted | 1,006 | 1,020.20 | 1,044.90 |
Consolidated_Statement_of_Inco1
Consolidated Statement of Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Interest expense, capitalized interest | $15.50 | $15.90 | $14 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net income | $5,585.90 | $5,464.80 | $5,503.10 |
Foreign currency translation adjustments: | ' | ' | ' |
Gain (loss) recognized in accumulated other comprehensive income (AOCI), including net investment hedges | -279.4 | 274.7 | -310.5 |
Reclassification of (gain) loss to net income | 0 | -0.1 | 25.4 |
Foreign currency translation adjustments-net of tax benefit (expense) of $(5.3), $(47.9) and $61.0 | -279.4 | 274.6 | -285.1 |
Cash flow hedges: | ' | ' | ' |
Gain (loss) recognized in AOCI | -73.4 | 19.8 | -12.2 |
Reclassification of (gain) loss to net income | 35.9 | 10.8 | 1.8 |
Cash flow hedges-net of tax benefit (expense) of $11.4, $(8.8) and $5.8 | -37.5 | 30.6 | -10.4 |
Defined benefit pension plans: | ' | ' | ' |
Gain (loss) recognized in AOCI | -52.8 | 33.1 | -8.1 |
Reclassification of (gain) loss to net income | 0.9 | 8.4 | 0.4 |
Defined benefit pension plans-net of tax benefit (expense) of $14.2, $(16.6) and $2.9 | -51.9 | 41.5 | -7.7 |
Total other comprehensive income (loss), net of tax | -368.8 | 346.7 | -303.2 |
Comprehensive income | $5,217.10 | $5,811.50 | $5,199.90 |
Consolidated_Statement_of_Comp1
Consolidated Statement of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other comprehensive income (loss), foreign currency translation adjustment, tax | ($5.30) | ($47.90) | $61 |
Other comprehensive income (loss), derivatives qualifying as hedges, tax | 11.4 | -8.8 | 5.8 |
Other comprehensive income (loss), pension and other postretirement benefit plans, tax | $14.20 | ($16.60) | $2.90 |
Consolidated_Balance_Sheet
Consolidated Balance Sheet (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets | ' | ' |
Cash and equivalents | $2,798.70 | $2,336.10 |
Accounts and notes receivable | 1,319.80 | 1,375.30 |
Inventories, at cost, not in excess of market | 123.7 | 121.7 |
Prepaid expenses and other current assets | 807.9 | 1,089 |
Total current assets | 5,050.10 | 4,922.10 |
Other assets | ' | ' |
Investments in and advances to affiliates | 1,209.10 | 1,380.50 |
Goodwill | 2,872.70 | 2,804 |
Miscellaneous | 1,747.10 | 1,602.70 |
Total other assets | 5,828.90 | 5,787.20 |
Property and equipment | ' | ' |
Property and equipment, at cost | 40,355.60 | 38,491.10 |
Accumulated depreciation and amortization | -14,608.30 | -13,813.90 |
Net property and equipment | 25,747.30 | 24,677.20 |
Total assets | 36,626.30 | 35,386.50 |
Current liabilities | ' | ' |
Accounts payable | 1,086 | 1,141.90 |
Income taxes | 215.5 | 298.7 |
Other taxes | 383.1 | 370.7 |
Accrued interest | 221.6 | 217 |
Accrued payroll and other liabilities | 1,263.80 | 1,374.80 |
Total current liabilities | 3,170 | 3,403.10 |
Long-term debt | 14,129.80 | 13,632.50 |
Other long-term liabilities | 1,669.10 | 1,526.20 |
Deferred income taxes | 1,647.70 | 1,531.10 |
Shareholders’ equity | ' | ' |
Preferred stock, no par value; authorized – 165.0 million shares; issued – none | ' | ' |
Common stock, $.01 par value; authorized – 3.5 billion shares; issued – 1,660.6 million shares | 16.6 | 16.6 |
Additional paid-in capital | 5,994.10 | 5,778.90 |
Retained earnings | 41,751.20 | 39,278 |
Accumulated other comprehensive income | 427.6 | 796.4 |
Common stock in treasury, at cost; 670.2 and 657.9 million shares | -32,179.80 | -30,576.30 |
Total shareholders’ equity | 16,009.70 | 15,293.60 |
Total liabilities and shareholders’ equity | $36,626.30 | $35,386.50 |
Consolidated_Balance_Sheet_Par
Consolidated Balance Sheet (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Preferred stock, par value | $0 | $0 |
Preferred stock, authorized | 165,000,000 | 165,000,000 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, authorized | 3,500,000,000 | 3,500,000,000 |
Common stock, issued | 1,660,600,000 | 1,660,600,000 |
Common stock in treasury, shares | 670,200,000 | 657,900,000 |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating activities | ' | ' | ' |
Net income | $5,585.90 | $5,464.80 | $5,503.10 |
Charges and credits: | ' | ' | ' |
Depreciation and amortization | 1,585.10 | 1,488.50 | 1,415 |
Deferred income taxes | 25.2 | 134.5 | 188.4 |
Share-based compensation | 89.1 | 93.4 | 86.2 |
Other | 26.8 | -92 | -82.6 |
Changes in working capital items: | ' | ' | ' |
Accounts receivable | 56.2 | -29.4 | -160.8 |
Inventories, prepaid expenses and other current assets | -44.4 | -27.2 | -52.2 |
Accounts payable | -60.7 | 124.1 | 35.8 |
Income taxes | -154.4 | -74 | 198.5 |
Other accrued liabilities | 11.9 | -116.6 | 18.7 |
Cash provided by operations | 7,120.70 | 6,966.10 | 7,150.10 |
Investing activities | ' | ' | ' |
Capital expenditures | -2,824.70 | -3,049.20 | -2,729.80 |
Purchases of restaurant businesses | -181 | -158.5 | -186.4 |
Sales of restaurant businesses and property | 440.1 | 394.7 | 511.4 |
Other | -108.2 | -354.3 | -166.1 |
Cash used for investing activities | -2,673.80 | -3,167.30 | -2,570.90 |
Financing activities | ' | ' | ' |
Net short-term borrowings | -186.5 | -117.5 | 260.6 |
Long-term financing issuances | 1,417.20 | 2,284.90 | 1,367.30 |
Long-term financing repayments | -695.4 | -962.8 | -624 |
Treasury stock purchases | -1,777.80 | -2,615.10 | -3,363.10 |
Common stock dividends | -3,114.60 | -2,896.60 | -2,609.70 |
Proceeds from stock option exercises | 233.3 | 328.6 | 334 |
Excess tax benefit on share-based compensation | 92.6 | 142.3 | 112.5 |
Other | -11.8 | -13.6 | -10.6 |
Cash used for financing activities | -4,043 | -3,849.80 | -4,533 |
Effect of exchange rates on cash and equivalents | 58.7 | 51.4 | -97.5 |
Cash and equivalents increase (decrease) | 462.6 | 0.4 | -51.3 |
Cash and equivalents at beginning of year | 2,336.10 | 2,335.70 | 2,387 |
Cash and equivalents at end of year | 2,798.70 | 2,336.10 | 2,335.70 |
Supplemental cash flow disclosures | ' | ' | ' |
Interest paid | 532.7 | 533.7 | 489.3 |
Income taxes paid | $2,546 | $2,447.80 | $2,056.70 |
Consolidated_Statement_of_Shar
Consolidated Statement of Shareholders Equity (USD $) | Total | Common stock issued | Additional paid-in capital | Retained earnings | Pensions | Cash flow hedges | Foreign currency translation | Treasury Stock |
In Millions | ||||||||
Beginning Balance at Dec. 31, 2010 | $14,634.20 | $16.60 | $5,196.40 | $33,811.70 | ($124.60) | $15 | $862.50 | ($25,143.40) |
Beginning Balance (in shares) at Dec. 31, 2010 | ' | 1,660.60 | ' | ' | ' | ' | ' | -607 |
Net income | 5,503.10 | ' | ' | 5,503.10 | ' | ' | ' | ' |
Other comprehensive income (loss), net of tax | -303.2 | ' | ' | ' | -7.7 | -10.4 | -285.1 | ' |
Comprehensive income | 5,199.90 | ' | ' | ' | ' | ' | ' | ' |
Common stock cash dividends | -2,609.70 | ' | ' | -2,609.70 | ' | ' | ' | ' |
Treasury stock purchases (in shares) | ' | ' | ' | ' | ' | ' | ' | -41.9 |
Treasury stock purchases | -3,372.90 | ' | ' | ' | ' | ' | ' | -3,372.90 |
Share-based compensation | 86.2 | ' | 86.2 | ' | ' | ' | ' | ' |
Stock option exercises and other (including tax benefits of $116.7 in 2011, $150.8m in 2012, $93.6m in 2013) (in shares) | ' | ' | ' | ' | ' | ' | ' | 9.7 |
Stock option exercises and other (including tax benefits of $116.7 in 2011, $150.8m in 2012, $93.6m in 2013) | 452.5 | ' | 204.7 | 2.4 | ' | ' | ' | 245.4 |
Ending Balance at Dec. 31, 2011 | 14,390.20 | 16.6 | 5,487.30 | 36,707.50 | -132.3 | 4.6 | 577.4 | -28,270.90 |
Ending Balance (in shares) at Dec. 31, 2011 | ' | 1,660.60 | ' | ' | ' | ' | ' | -639.2 |
Net income | 5,464.80 | ' | ' | 5,464.80 | ' | ' | ' | ' |
Other comprehensive income (loss), net of tax | 346.7 | ' | ' | ' | 41.5 | 30.6 | 274.6 | ' |
Comprehensive income | 5,811.50 | ' | ' | ' | ' | ' | ' | ' |
Common stock cash dividends | -2,896.60 | ' | ' | -2,896.60 | ' | ' | ' | ' |
Treasury stock purchases (in shares) | ' | ' | ' | ' | ' | ' | ' | -28.1 |
Treasury stock purchases | -2,605.40 | ' | ' | ' | ' | ' | ' | -2,605.40 |
Share-based compensation | 93.4 | ' | 93.4 | ' | ' | ' | ' | ' |
Stock option exercises and other (including tax benefits of $116.7 in 2011, $150.8m in 2012, $93.6m in 2013) (in shares) | ' | ' | ' | ' | ' | ' | ' | 9.4 |
Stock option exercises and other (including tax benefits of $116.7 in 2011, $150.8m in 2012, $93.6m in 2013) | 500.5 | ' | 198.2 | 2.3 | ' | ' | ' | 300 |
Ending Balance at Dec. 31, 2012 | 15,293.60 | 16.6 | 5,778.90 | 39,278 | -90.8 | 35.2 | 852 | -30,576.30 |
Ending Balance (in shares) at Dec. 31, 2012 | ' | 1,660.60 | ' | ' | ' | ' | ' | -657.9 |
Net income | 5,585.90 | ' | ' | 5,585.90 | ' | ' | ' | ' |
Other comprehensive income (loss), net of tax | -368.8 | ' | ' | ' | -51.9 | -37.5 | -279.4 | ' |
Comprehensive income | 5,217.10 | ' | ' | ' | ' | ' | ' | ' |
Common stock cash dividends | -3,114.60 | ' | ' | -3,114.60 | ' | ' | ' | ' |
Treasury stock purchases (in shares) | ' | ' | ' | ' | ' | ' | ' | -18.7 |
Treasury stock purchases | -1,810.50 | ' | ' | ' | ' | ' | ' | -1,810.50 |
Share-based compensation | 89.1 | ' | 89.1 | ' | ' | ' | ' | ' |
Stock option exercises and other (including tax benefits of $116.7 in 2011, $150.8m in 2012, $93.6m in 2013) (in shares) | ' | ' | ' | ' | ' | ' | ' | 6.4 |
Stock option exercises and other (including tax benefits of $116.7 in 2011, $150.8m in 2012, $93.6m in 2013) | 335 | ' | 126.1 | 1.9 | ' | ' | ' | 207 |
Ending Balance at Dec. 31, 2013 | $16,009.70 | $16.60 | $5,994.10 | $41,751.20 | ($142.70) | ($2.30) | $572.60 | ($32,179.80) |
Ending Balance (in shares) at Dec. 31, 2013 | ' | 1,660.60 | ' | ' | ' | ' | ' | -670.2 |
Consolidated_Statement_of_Shar1
Consolidated Statement of Shareholders Equity (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Common stock cash dividends, per share | $1.58 | [1] | $0.77 | $0.77 | $1.47 | [2] | $0.70 | $0.70 | $3.12 | $2.87 | $2.53 |
Stock option exercises and other, tax benefits | ' | ' | ' | ' | ' | ' | ($93.60) | ($150.80) | ($116.70) | ||
[1] | Includes a $0.77 per share dividend declared and paid in third quarter and a $0.81 per share dividend declared in third quarter and paid in fourth quarter. | ||||||||||
[2] | Includes a $0.70 per share dividend declared and paid in third quarter and a $0.77 per share dividend declared in third quarter and paid in fourth quarter. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | ||||||||||||||||||||||||||||||||||||
NATURE OF BUSINESS | ||||||||||||||||||||||||||||||||||||
The Company franchises and operates McDonald’s restaurants in the global restaurant industry. All restaurants are operated either by the Company or by franchisees, including conventional franchisees under franchise arrangements, and foreign affiliates and developmental licensees under license agreements. | ||||||||||||||||||||||||||||||||||||
The following table presents restaurant information by ownership type: | ||||||||||||||||||||||||||||||||||||
Restaurants at December 31, | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||
Conventional franchised | 20,355 | 19,869 | 19,527 | |||||||||||||||||||||||||||||||||
Developmental licensed | 4,747 | 4,350 | 3,929 | |||||||||||||||||||||||||||||||||
Foreign affiliated | 3,589 | 3,663 | 3,619 | |||||||||||||||||||||||||||||||||
Franchised | 28,691 | 27,882 | 27,075 | |||||||||||||||||||||||||||||||||
Company-operated | 6,738 | 6,598 | 6,435 | |||||||||||||||||||||||||||||||||
Systemwide restaurants | 35,429 | 34,480 | 33,510 | |||||||||||||||||||||||||||||||||
The results of operations of restaurant businesses purchased and sold in transactions with franchisees were not material either individually or in the aggregate to the consolidated financial statements for periods prior to purchase and sale. | ||||||||||||||||||||||||||||||||||||
CONSOLIDATION | ||||||||||||||||||||||||||||||||||||
The consolidated financial statements include the accounts of the Company and its subsidiaries. Investments in affiliates owned 50% or less (primarily McDonald’s Japan) are accounted for by the equity method. | ||||||||||||||||||||||||||||||||||||
On an ongoing basis, the Company evaluates its business relationships such as those with franchisees, joint venture partners, developmental licensees, suppliers, and advertising cooperatives to identify potential variable interest entities. Generally, these businesses qualify for a scope exception under the variable interest entity consolidation guidance. The Company has concluded that consolidation of any such entity is not appropriate for the periods presented. | ||||||||||||||||||||||||||||||||||||
ESTIMATES IN FINANCIAL STATEMENTS | ||||||||||||||||||||||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. | ||||||||||||||||||||||||||||||||||||
REVENUE RECOGNITION | ||||||||||||||||||||||||||||||||||||
The Company’s revenues consist of sales by Company-operated restaurants and fees from franchised restaurants operated by conventional franchisees, developmental licensees and foreign affiliates. | ||||||||||||||||||||||||||||||||||||
Sales by Company-operated restaurants are recognized on a cash basis. The Company presents sales net of sales tax and other sales-related taxes. Revenues from conventional franchised restaurants include rent and royalties based on a percent of sales with minimum rent payments, and initial fees. Revenues from restaurants licensed to foreign affiliates and developmental licensees include a royalty based on a percent of sales, and may include initial fees. Continuing rent and royalties are recognized in the period earned. Initial fees are recognized upon opening of a restaurant or granting of a new franchise term, which is when the Company has performed substantially all initial services required by the franchise arrangement. | ||||||||||||||||||||||||||||||||||||
FOREIGN CURRENCY TRANSLATION | ||||||||||||||||||||||||||||||||||||
Generally, the functional currency of operations outside the U.S. is the respective local currency. | ||||||||||||||||||||||||||||||||||||
ADVERTISING COSTS | ||||||||||||||||||||||||||||||||||||
Advertising costs included in operating expenses of Company-operated restaurants primarily consist of contributions to advertising cooperatives and were (in millions): 2013–$808.4; 2012–$787.5; 2011–$768.6. Production costs for radio and television advertising are expensed when the commercials are initially aired. These production costs, primarily in the U.S., as well as other marketing-related expenses included in Selling, general & administrative expenses were (in millions): 2013–$75.4; 2012–$113.5; 2011–$74.4. Costs related to the Olympics sponsorship are included in these expenses for 2012. In addition, significant advertising costs are incurred by franchisees through contributions to advertising cooperatives in individual markets. | ||||||||||||||||||||||||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||||||||||||||||||||||||
Share-based compensation includes the portion vesting of all share-based awards granted based on the grant date fair value. | ||||||||||||||||||||||||||||||||||||
Share-based compensation expense and the effect on diluted earnings per common share were as follows: | ||||||||||||||||||||||||||||||||||||
In millions, except per share data | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||
Share-based compensation expense | $ | 89.1 | $ | 93.4 | $ | 86.2 | ||||||||||||||||||||||||||||||
After tax | $ | 60.6 | $ | 63.2 | $ | 59.2 | ||||||||||||||||||||||||||||||
Earnings per common share-diluted | $ | 0.06 | $ | 0.06 | $ | 0.05 | ||||||||||||||||||||||||||||||
Compensation expense related to share-based awards is generally amortized on a straight-line basis over the vesting period in Selling, general & administrative expenses. As of December 31, 2013, there was $109.0 million of total unrecognized compensation cost related to nonvested share-based compensation that is expected to be recognized over a weighted-average period of 2.0 years. | ||||||||||||||||||||||||||||||||||||
The fair value of each stock option granted is estimated on the date of grant using a closed-form pricing model. The following table presents the weighted-average assumptions used in the option pricing model for the 2013, 2012 and 2011 stock option grants. The expected life of the options represents the period of time the options are expected to be outstanding and is based on historical trends. Expected stock price volatility is generally based on the historical volatility of the Company’s stock for a period approximating the expected life. The expected dividend yield is based on the Company’s most recent annual dividend rate. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant with a term equal to the expected life. | ||||||||||||||||||||||||||||||||||||
Weighted-average assumptions | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
Expected dividend yield | 3.5 | % | 2.8 | % | 3.2 | % | ||||||||||||||||||||||||||||||
Expected stock price volatility | 20.6 | % | 20.8 | % | 21.5 | % | ||||||||||||||||||||||||||||||
Risk-free interest rate | 1.2 | % | 1.1 | % | 2.8 | % | ||||||||||||||||||||||||||||||
Expected life of options | 6.1 | 6.1 | 6.3 | |||||||||||||||||||||||||||||||||
(in years) | ||||||||||||||||||||||||||||||||||||
Fair value per option granted | $ | 11.09 | $ | 13.65 | $ | 12.18 | ||||||||||||||||||||||||||||||
PROPERTY AND EQUIPMENT | ||||||||||||||||||||||||||||||||||||
Property and equipment are stated at cost, with depreciation and amortization provided using the straight-line method over the following estimated useful lives: buildings–up to 40 years; leasehold improvements–the lesser of useful lives of assets or lease terms, which generally include option periods; and equipment–three to 12 years. | ||||||||||||||||||||||||||||||||||||
GOODWILL | ||||||||||||||||||||||||||||||||||||
Goodwill represents the excess of cost over the net tangible assets and identifiable intangible assets of acquired restaurant businesses. The Company's goodwill primarily results from purchases of McDonald's restaurants from franchisees and ownership increases in subsidiaries or affiliates, and it is generally assigned to the reporting unit expected to benefit from the synergies of the combination. If a Company-operated restaurant is sold within 24 months of acquisition, the goodwill associated with the acquisition is written off in its entirety. If a restaurant is sold beyond 24 months from the acquisition, the amount of goodwill written off is based on the relative fair value of the business sold compared to the reporting unit (defined as each individual country). | ||||||||||||||||||||||||||||||||||||
The Company conducts goodwill impairment testing in the fourth quarter of each year or whenever an indicator of impairment exists. If an indicator of impairment exists (e.g., estimated earnings multiple value of a reporting unit is less than its carrying value), the goodwill impairment test compares the fair value of a reporting unit, generally based on discounted future cash flows, with its carrying amount including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is measured as the difference between the implied fair value of the reporting unit's goodwill and the carrying amount of goodwill. Historically, goodwill impairment has not significantly impacted the consolidated financial statements. | ||||||||||||||||||||||||||||||||||||
The following table presents the 2013 activity in goodwill by segment: | ||||||||||||||||||||||||||||||||||||
In millions | U.S. | Europe | APMEA(1) | Other Countries | Consolidated | |||||||||||||||||||||||||||||||
& Corporate(2) | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 1,294.20 | $ | 881.4 | $ | 438.7 | $ | 189.7 | $ | 2,804.00 | ||||||||||||||||||||||||||
Net restaurant purchases (sales) | (0.6 | ) | 50.4 | 30.7 | 15.7 | 96.2 | ||||||||||||||||||||||||||||||
Currency translation | 26.3 | (40.7 | ) | (13.1 | ) | (27.5 | ) | |||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 1,293.60 | $ | 958.1 | $ | 428.7 | $ | 192.3 | $ | 2,872.70 | ||||||||||||||||||||||||||
-1 | APMEA represents Asia/Pacific, Middle East and Africa. | |||||||||||||||||||||||||||||||||||
-2 | Other Countries & Corporate represents Canada, Latin America and Corporate. | |||||||||||||||||||||||||||||||||||
LONG-LIVED ASSETS | ||||||||||||||||||||||||||||||||||||
Long-lived assets are reviewed for impairment annually in the fourth quarter and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of annually reviewing McDonald’s restaurant assets for potential impairment, assets are initially grouped together at a television market level in the U.S. and at a country level for each of the international markets. The Company manages its restaurants as a group or portfolio with significant common costs and promotional activities; as such, an individual restaurant’s cash flows are not generally independent of the cash flows of others in a market. If an indicator of impairment (e.g., negative operating cash flows for the most recent trailing 24-month period) exists for any grouping of assets, an estimate of undiscounted future cash flows produced by each individual restaurant within the asset grouping is compared to its carrying value. If an individual restaurant is determined to be impaired, the loss is measured by the excess of the carrying amount of the restaurant over its fair value as determined by an estimate of discounted future cash flows. | ||||||||||||||||||||||||||||||||||||
Losses on assets held for disposal are recognized when management and the Board of Directors, as required, have approved and committed to a plan to dispose of the assets, the assets are available for disposal, the disposal is probable of occurring within 12 months, and the net sales proceeds are expected to be less than its net book value, among other factors. Generally, such losses relate to restaurants that have closed and ceased operations as well as other assets that meet the criteria to be considered “available for sale”. | ||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||||||||||||||||||||||
The Company measures certain financial assets and liabilities at fair value on a recurring basis, and certain non-financial assets and liabilities on a nonrecurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. Fair value disclosures are reflected in a three-level hierarchy, maximizing the use of observable inputs and minimizing the use of unobservable inputs. | ||||||||||||||||||||||||||||||||||||
The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The three levels are defined as follows: | ||||||||||||||||||||||||||||||||||||
▪ | Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for an identical asset or liability in an active market. | |||||||||||||||||||||||||||||||||||
▪ | Level 2 – inputs to the valuation methodology include quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability. | |||||||||||||||||||||||||||||||||||
▪ | Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement of the asset or liability. | |||||||||||||||||||||||||||||||||||
Certain of the Company’s derivatives are valued using various pricing models or discounted cash flow analyses that incorporate observable market parameters, such as interest rate yield curves, option volatilities and currency rates, classified as Level 2 within the valuation hierarchy. Derivative valuations incorporate credit risk adjustments that are necessary to reflect the probability of default by the counterparty or the Company. | ||||||||||||||||||||||||||||||||||||
▪ | Certain Financial Assets and Liabilities Measured at Fair Value | |||||||||||||||||||||||||||||||||||
The following tables present financial assets and liabilities measured at fair value on a recurring basis by the valuation hierarchy as defined in the fair value guidance: | ||||||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||
In millions | Level 1* | Level 2 | Carrying | |||||||||||||||||||||||||||||||||
Value | ||||||||||||||||||||||||||||||||||||
Investments | $ | 27.6 | $ | 27.6 | ||||||||||||||||||||||||||||||||
Derivative assets | 128.2 | $ | 71.6 | 199.8 | ||||||||||||||||||||||||||||||||
Total assets at fair value | $ | 155.8 | $ | 71.6 | $ | 227.4 | ||||||||||||||||||||||||||||||
Derivative liabilities | $ | (179.3 | ) | $ | (179.3 | ) | ||||||||||||||||||||||||||||||
Total liabilities at fair value | $ | (179.3 | ) | $ | (179.3 | ) | ||||||||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||||||||||
In millions | Level 1* | Level 2 | Carrying | |||||||||||||||||||||||||||||||||
Value | ||||||||||||||||||||||||||||||||||||
Investments | $ | 155.1 | $ | 155.1 | ||||||||||||||||||||||||||||||||
Derivative assets | 132.3 | $ | 86.1 | 218.4 | ||||||||||||||||||||||||||||||||
Total assets at fair value | $ | 287.4 | $ | 86.1 | $ | 373.5 | ||||||||||||||||||||||||||||||
Derivative liabilities | $ | (42.6 | ) | $ | (42.6 | ) | ||||||||||||||||||||||||||||||
Total liabilities at fair value | $ | (42.6 | ) | $ | (42.6 | ) | ||||||||||||||||||||||||||||||
* | Level 1 is comprised of investments and derivatives that hedge market driven changes in liabilities associated with the Company’s supplemental benefit plans. | |||||||||||||||||||||||||||||||||||
▪ | Non-Financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | |||||||||||||||||||||||||||||||||||
Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances (e.g., when there is evidence of impairment). For the year ended December 31, 2013, no material fair value adjustments or fair value measurements were required for non-financial assets or liabilities. | ||||||||||||||||||||||||||||||||||||
▪ | Certain Financial Assets and Liabilities not Measured at Fair Value | |||||||||||||||||||||||||||||||||||
At December 31, 2013, the fair value of the Company’s debt obligations was estimated at $15.0 billion, compared to a carrying amount of $14.1 billion. The fair value was based on quoted market prices, Level 2 within the valuation hierarchy. The carrying amount for both cash equivalents and notes receivable approximate fair value. | ||||||||||||||||||||||||||||||||||||
FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||||||||||||||||||||||||||||||
The Company is exposed to global market risks, including the effect of changes in interest rates and foreign currency fluctuations. The Company uses foreign currency denominated debt and derivative instruments to mitigate the impact of these changes. The Company does not hold or issue derivatives for trading purposes. | ||||||||||||||||||||||||||||||||||||
The Company documents its risk management objective and strategy for undertaking hedging transactions, as well as all relationships between hedging instruments and hedged items. The Company’s derivatives that are designated for hedge accounting consist mainly of interest rate swaps, foreign currency forwards, foreign currency options, and cross-currency swaps, further explained in the "Fair Value," "Cash Flow" and "Net Investment" hedge sections. | ||||||||||||||||||||||||||||||||||||
The Company also enters into certain derivatives that are not designated for hedge accounting. The Company has entered into equity derivative contracts, including total return swaps, to hedge market-driven changes in certain of its supplemental benefit plan liabilities. Changes in the fair value of these derivatives are recorded primarily in Selling, general & administrative expenses together with the changes in the supplemental benefit plan liabilities. In addition, the Company uses foreign currency forwards to mitigate the change in fair value of certain foreign currency denominated assets and liabilities. Since these derivatives are not designated for hedge accounting, the changes in the fair value of these derivatives are recognized immediately in Nonoperating (income) expense together with the currency gain or loss from the hedged balance sheet position. A portion of the Company’s foreign currency options (more fully described in the "Cash Flow Hedges" section) are undesignated as hedging instruments as the underlying foreign currency royalties are earned. | ||||||||||||||||||||||||||||||||||||
All derivative instruments designated for hedge accounting are classified as fair value, cash flow or net investment hedges. All derivatives (including those not designated for hedge accounting) are recognized on the Consolidated balance sheet at fair value and classified based on the instruments’ maturity dates. Changes in the fair value measurements of the derivative instruments are reflected as adjustments to other comprehensive income ("OCI") and/or current earnings. | ||||||||||||||||||||||||||||||||||||
The following table presents the fair values of derivative instruments included on the Consolidated balance sheet as of December 31, 2013 and 2012: | ||||||||||||||||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | |||||||||||||||||||||||||||||||||||
In millions | Balance Sheet Classification | 2013 | 2012 | Balance Sheet Classification | 2013 | 2012 | ||||||||||||||||||||||||||||||
Derivatives designated for hedge accounting | ||||||||||||||||||||||||||||||||||||
Foreign currency | Prepaid expenses and other current assets | $ | 28.3 | $ | 5 | Accrued payroll and other liabilities | $ | (28.8 | ) | $ | (3.5 | ) | ||||||||||||||||||||||||
Interest rate | Prepaid expenses and other current assets | — | 4.2 | |||||||||||||||||||||||||||||||||
Commodity | Miscellaneous other assets | — | 35.3 | Other long-term liabilities | — | (0.2 | ) | |||||||||||||||||||||||||||||
Foreign currency | Miscellaneous other assets | 2.5 | 2.5 | Other long-term liabilities | (114.7 | ) | (32.1 | ) | ||||||||||||||||||||||||||||
Interest rate | Miscellaneous other assets | 24.8 | 38.1 | Other long-term liabilities | (12.0 | ) | — | |||||||||||||||||||||||||||||
Total derivatives designated for hedge accounting | $ | 55.6 | $ | 85.1 | $ | (155.5 | ) | $ | (35.8 | ) | ||||||||||||||||||||||||||
Derivatives not designated for hedge accounting | ||||||||||||||||||||||||||||||||||||
Equity | Prepaid expenses and other current assets | $ | 6.7 | $ | 132.3 | |||||||||||||||||||||||||||||||
Foreign currency | Prepaid expenses and other current assets | 9.3 | 1 | Accrued payroll and other liabilities | $ | (23.8 | ) | $ | (6.8 | ) | ||||||||||||||||||||||||||
Equity | Miscellaneous other assets | 128.2 | — | |||||||||||||||||||||||||||||||||
Total derivatives not designated for hedge accounting | $ | 144.2 | $ | 133.3 | $ | (23.8 | ) | $ | (6.8 | ) | ||||||||||||||||||||||||||
Total derivatives | $ | 199.8 | $ | 218.4 | $ | (179.3 | ) | $ | (42.6 | ) | ||||||||||||||||||||||||||
The following table presents the pretax amounts affecting income and OCI for the years ended December 31, 2013 and 2012, respectively: | ||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||
Derivatives in | Gain (Loss) | Hedged Items in | Gain (Loss) | |||||||||||||||||||||||||||||||||
Fair Value | Recognized in Income | Fair Value | Recognized in Income on | |||||||||||||||||||||||||||||||||
Hedging | on Derivative | Hedging | Related Hedged Items | |||||||||||||||||||||||||||||||||
Relationships | Relationships | |||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||
Interest rate | $ | (29.5 | ) | $ | (13.0 | ) | Fixed-rate debt | $ | 29.5 | $ | 13 | |||||||||||||||||||||||||
Derivatives in | Gain (Loss) Recognized in | Gain (Loss) | Gain (Loss) | |||||||||||||||||||||||||||||||||
Cash Flow | Accumulated OCI on Derivative | Reclassified into Income | Recognized in Income on | |||||||||||||||||||||||||||||||||
Hedging | (Effective Portion) | from Accumulated OCI | Derivative (Amount Excluded | |||||||||||||||||||||||||||||||||
Relationships | (Effective Portion) | from Effectiveness Testing and | ||||||||||||||||||||||||||||||||||
Ineffective Portion) | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Commodity | $ | (34.1 | ) | $ | 35.1 | |||||||||||||||||||||||||||||||
Foreign currency | (65.5 | ) | (6.4 | ) | $ | (50.3 | ) | $ | (15.8 | ) | $ | (6.1 | ) | $ | (12.3 | ) | ||||||||||||||||||||
Interest rate(1) | — | (4.6 | ) | (0.4 | ) | 0.5 | — | — | ||||||||||||||||||||||||||||
Total | $ | (99.6 | ) | $ | 24.1 | $ | (50.7 | ) | $ | (15.3 | ) | $ | (6.1 | ) | $ | (12.3 | ) | |||||||||||||||||||
Gain (Loss) | Derivatives Not | Gain (Loss) | ||||||||||||||||||||||||||||||||||
Recognized in | Designated for | Recognized in | ||||||||||||||||||||||||||||||||||
Net Investment | Accumulated OCI | Hedge Accounting | Income | |||||||||||||||||||||||||||||||||
Hedging Relationships | (Effective Portion) | on Derivative | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||
Foreign currency denominated debt | $ | (382.8 | ) | $ | (61.7 | ) | Foreign currency | $ | (30.2 | ) | $ | (13.4 | ) | |||||||||||||||||||||||
Foreign currency derivatives | (18.4 | ) | (23.3 | ) | Equity(2) | 21.8 | (16.2 | ) | ||||||||||||||||||||||||||||
Total | $ | (401.2 | ) | $ | (85.0 | ) | Total | $ | (8.4 | ) | $ | (29.6 | ) | |||||||||||||||||||||||
Gains (losses) recognized in income on derivatives are recorded in Nonoperating (income) expense, net unless otherwise noted. | ||||||||||||||||||||||||||||||||||||
-1 | The amount of gain (loss) reclassified from accumulated OCI into income is recorded in Interest expense. | |||||||||||||||||||||||||||||||||||
-2 | The amount of gain (loss) recognized in income on the derivatives used to hedge the supplemental benefit plan liabilities is primarily recorded in Selling, general & administrative expenses. | |||||||||||||||||||||||||||||||||||
▪ | Fair Value Hedges | |||||||||||||||||||||||||||||||||||
The Company enters into fair value hedges to reduce the | ||||||||||||||||||||||||||||||||||||
exposure to changes in the fair values of certain liabilities. The Company's fair value hedges convert a portion of its fixed-rate debt into floating-rate debt by use of interest rate swaps. At December 31, 2013, $2.2 billion of the Company's outstanding fixed-rate debt was effectively converted. All of the Company’s interest rate swaps meet the shortcut method requirements. Accordingly, changes in the fair value of the interest rate swaps are exactly offset by changes in the fair value of the underlying debt. No ineffectiveness has been recorded to net income related to interest rate swaps designated as fair value hedges for the year ended December 31, 2013. | ||||||||||||||||||||||||||||||||||||
▪ | Cash Flow Hedges | |||||||||||||||||||||||||||||||||||
The Company enters into cash flow hedges to reduce the exposure to variability in certain expected future cash flows. The types of cash flow hedges the Company enters into include interest rate swaps, foreign currency forwards, foreign currency options and cross currency swaps. | ||||||||||||||||||||||||||||||||||||
The Company periodically uses interest rate swaps to effectively convert a portion of floating-rate debt, including forecasted debt issuances, into fixed-rate debt. The agreements are intended to reduce the impact of interest rate changes on future interest expense. | ||||||||||||||||||||||||||||||||||||
To protect against the reduction in value of forecasted foreign currency cash flows (such as royalties denominated in foreign currencies), the Company uses foreign currency forwards and foreign currency options to hedge a portion of anticipated exposures. | ||||||||||||||||||||||||||||||||||||
When the U.S. dollar strengthens against foreign currencies, the decline in value of future foreign denominated royalties is offset by gains in the fair value of the foreign currency forwards and/or foreign currency options. Conversely, when the U.S. dollar weakens, the increase in the value of future foreign denominated royalties is offset by losses in the fair value of the foreign currency forwards and/or foreign currency options. | ||||||||||||||||||||||||||||||||||||
Although the fair value changes in the foreign currency options may fluctuate over the period of the contract, the Company’s total loss on a foreign currency option is limited to the upfront premium paid for the contract; however, the potential gains on a foreign currency option are unlimited. In some situations, the Company uses foreign currency collars, which limit the potential gains and lower the upfront premium paid, to protect against currency movements. | ||||||||||||||||||||||||||||||||||||
The hedges cover the next 19 months for certain exposures and are denominated in various currencies. As of December 31, 2013, the Company had derivatives outstanding with an equivalent notional amount of $730.3 million that were used to hedge a portion of forecasted foreign currency denominated royalties. | ||||||||||||||||||||||||||||||||||||
The Company excludes the time value of foreign currency options from its effectiveness assessment on its cash flow hedges. As a result, changes in the fair value of the derivatives due to this component, as well as the ineffectiveness of the hedges, are recognized in earnings currently. The effective portion of the gains or losses on the derivatives is reported in the cash flow hedging component of OCI in shareholders’ equity and reclassified into earnings in the same period or periods in which the hedged transaction affects earnings. | ||||||||||||||||||||||||||||||||||||
The Company uses cross-currency swaps to hedge the risk of cash flows associated with certain foreign currency denominated debt, including forecasted interest payments, and has elected cash flow hedge accounting. The hedges cover periods up to 47 months and have an equivalent notional amount of $346.9 million. | ||||||||||||||||||||||||||||||||||||
The Company manages its exposure to energy-related transactions in certain markets by entering into purchase and sale agreements. Previously, some of these agreements were considered commodity forwards and the Company elected cash flow hedge accounting, the impact of which was immaterial. In 2013, the Company determined these transactions were now eligible for the normal purchase/normal sale scope exception, which meant no further derivative or hedge accounting was required. | ||||||||||||||||||||||||||||||||||||
The Company recorded after tax adjustments to the cash flow hedging component of accumulated OCI in shareholders’ equity. The Company recorded a net decrease of $37.5 million for the year ended December 31, 2013 and a net increase of $30.6 million for the year ended December 31, 2012. Based on interest rates and foreign exchange rates at December 31, 2013, the $2.3 million in cumulative cash flow hedging losses, after tax, at December 31, 2013, is not expected to have a significant effect on earnings over the next 12 months. | ||||||||||||||||||||||||||||||||||||
▪ | Net Investment Hedges | |||||||||||||||||||||||||||||||||||
The Company primarily uses foreign currency denominated debt (third party and intercompany) to hedge its investments in certain foreign subsidiaries and affiliates. Realized and unrealized translation adjustments from these hedges are included in shareholders’ equity in the foreign currency translation component of OCI and offset translation adjustments on the underlying net assets of foreign subsidiaries and affiliates, which also are recorded in OCI. As of December 31, 2013, $4.7 billion of the Company’s third party foreign currency denominated debt, $4.2 billion of intercompany foreign currency denominated debt, and $827.4 million of derivatives were designated to hedge investments in certain foreign subsidiaries and affiliates. | ||||||||||||||||||||||||||||||||||||
▪ | Credit Risk | |||||||||||||||||||||||||||||||||||
The Company is exposed to credit-related losses in the event of non-performance by the counterparties to its hedging instruments. The counterparties to these agreements consist of a diverse group of financial institutions and market participants. The Company continually monitors its positions and the credit ratings of its counterparties and adjusts positions as appropriate. The Company did not have significant exposure to any individual counterparty at December 31, 2013 and has master agreements that contain netting arrangements. For financial reporting purposes, the Company presents gross derivative balances in the financial statements and supplementary data, even for counterparties subject to netting arrangements. Some of these agreements also require each party to post collateral if credit ratings fall below, or aggregate exposures exceed, certain contractual limits. At December 31, 2013, neither the Company nor its counterparties were required to post collateral on any derivative position, other than on hedges of certain of the Company’s supplemental benefit plan liabilities where its counterparties were required to post collateral on their liability positions. | ||||||||||||||||||||||||||||||||||||
INCOME TAX UNCERTAINTIES | ||||||||||||||||||||||||||||||||||||
The Company, like other multi-national companies, is regularly audited by federal, state and foreign tax authorities, and tax assessments may arise several years after tax returns have been filed. Accordingly, tax liabilities are recorded when, in management’s judgment, a tax position does not meet the more likely than not threshold for recognition. For tax positions that meet the more likely than not threshold, a tax liability may still be recorded depending on management’s assessment of how the tax position will ultimately be settled. | ||||||||||||||||||||||||||||||||||||
The Company records interest and penalties on unrecognized tax benefits in the provision for income taxes. | ||||||||||||||||||||||||||||||||||||
PER COMMON SHARE INFORMATION | ||||||||||||||||||||||||||||||||||||
Diluted earnings per common share is calculated using net income divided by diluted weighted-average shares. Diluted weighted-average shares include weighted-average shares outstanding plus the dilutive effect of share-based compensation calculated using the treasury stock method, of (in millions of shares): 2013–7.6; 2012–10.1; 2011–12.8. Stock options that were not included in diluted weighted-average shares because they would have been antidilutive were (in millions of shares): 2013–4.7; 2012–4.7; 2011–0.0. | ||||||||||||||||||||||||||||||||||||
The Company has elected to exclude the pro forma deferred tax asset associated with share-based compensation in earnings per share. | ||||||||||||||||||||||||||||||||||||
STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||||||||||||||
The Company considers short-term, highly liquid investments with an original maturity of 90 days or less to be cash equivalents. | ||||||||||||||||||||||||||||||||||||
SUBSEQUENT EVENTS | ||||||||||||||||||||||||||||||||||||
The Company evaluated subsequent events through the date the financial statements were issued and filed with the U.S. Securities and Exchange Commission ("SEC"). There were no subsequent events that required recognition or disclosure. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property and Equipment | ' | ||||||||
Property and Equipment | |||||||||
Net property and equipment consisted of: | |||||||||
In millions | December 31, 2013 | 2012 | |||||||
Land | $ | 5,849.30 | $ | 5,612.60 | |||||
Buildings and improvements | 14,715.60 | 14,089.00 | |||||||
on owned land | |||||||||
Buildings and improvements | 13,825.20 | 12,970.80 | |||||||
on leased land | |||||||||
Equipment, signs and | 5,376.80 | 5,241.00 | |||||||
seating | |||||||||
Other | 588.7 | 577.7 | |||||||
40,355.60 | 38,491.10 | ||||||||
Accumulated depreciation | (14,608.3 | ) | (13,813.9 | ) | |||||
and amortization | |||||||||
Net property and equipment | $ | 25,747.30 | $ | 24,677.20 | |||||
Depreciation and amortization expense for property and equipment was (in millions): 2013–$1,498.8; 2012–$1,402.2; 2011–$1,329.6. |
Other_Operating_Income_Expense
Other Operating (Income) Expense, Net | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||
Other Operating (Income) Expense, Net | ' | |||||||||||
Other Operating (Income) Expense, Net | ||||||||||||
In millions | 2013 | 2012 | 2011 | |||||||||
Gains on sales of restaurant | $ | (199.4 | ) | $ | (151.5 | ) | $ | (81.8 | ) | |||
businesses | ||||||||||||
Equity in earnings of | (78.2 | ) | (143.5 | ) | (178.0 | ) | ||||||
unconsolidated affiliates | ||||||||||||
Asset dispositions and other | 30.4 | 51.5 | 23 | |||||||||
expense | ||||||||||||
Total | $ | (247.2 | ) | $ | (243.5 | ) | $ | (236.8 | ) | |||
▪ | Gains on sales of restaurant businesses | |||||||||||
The Company’s purchases and sales of businesses with its franchisees are aimed at achieving an optimal ownership mix in each market. Resulting gains or losses on sales of restaurant businesses are recorded in operating income because these transactions are a recurring part of our business. | ||||||||||||
▪ | Equity in earnings of unconsolidated affiliates | |||||||||||
Unconsolidated affiliates and partnerships are businesses in which the Company actively participates but does not control. The Company records equity in earnings from these entities representing McDonald’s share of results. For foreign affiliated markets—primarily Japan—results are reported after interest expense and income taxes. McDonald’s share of results for partnerships in certain consolidated markets such as the U.S. are reported before income taxes. These partnership restaurants are operated under conventional franchise arrangements and, therefore, are classified as conventional franchised restaurants. | ||||||||||||
▪ | Asset dispositions and other expense | |||||||||||
Asset dispositions and other expense consists of gains or losses on excess property and other asset dispositions, provisions for restaurant closings and uncollectible receivables, asset write-offs due to restaurant reinvestment, and other miscellaneous income and expenses. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Contingencies | ' |
Contingencies | |
In the ordinary course of business, the Company is subject to proceedings, lawsuits and other claims primarily related to competitors, customers, employees, franchisees, government agencies, intellectual property, shareholders and suppliers. The Company is required to assess the likelihood of any adverse judgments or outcomes to these matters as well as potential ranges of probable losses. A determination of the amount of accrual required, if any, for these contingencies is made after careful analysis of each matter. The required accrual may change in the future due to new developments in each matter or changes in approach such as a change in settlement strategy in dealing with these matters. The Company does not believe that any such matter currently being reviewed will have a material adverse effect on its financial condition or results of operations. |
Franchise_Arrangements
Franchise Arrangements | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Disclosure Franchise Arrangements Additional Information [Abstract] | ' | |||||||||||||
Franchise Arrangements | ' | |||||||||||||
Franchise Arrangements | ||||||||||||||
Conventional franchise arrangements generally include a lease and a license and provide for payment of initial fees, as well as continuing rent and royalties to the Company based upon a percent of sales with minimum rent payments that parallel the Company’s underlying leases and escalations (on properties that are leased). Under this arrangement, franchisees are granted the right to operate a restaurant using the McDonald’s System and, in most cases, the use of a restaurant facility, generally for a period of 20 years. These franchisees pay related occupancy costs including property taxes, insurance and maintenance. Affiliates and developmental licensees operating under license agreements pay a royalty to the Company based upon a percent of sales, and may pay initial fees. | ||||||||||||||
Revenues from franchised restaurants consisted of: | ||||||||||||||
In millions | 2013 | 2012 | 2011 | |||||||||||
Rents | $ | 6,054.40 | $ | 5,863.50 | $ | 5,718.50 | ||||||||
Royalties | 3,100.40 | 3,032.60 | 2,929.80 | |||||||||||
Initial fees | 76.7 | 68.4 | 64.9 | |||||||||||
Revenues from franchised | $ | 9,231.50 | $ | 8,964.50 | $ | 8,713.20 | ||||||||
restaurants | ||||||||||||||
Future minimum rent payments due to the Company under existing franchise arrangements are: | ||||||||||||||
In millions | Owned sites | Leased sites | Total | |||||||||||
2014 | $ | 1,321.40 | $ | 1,381.80 | $ | 2,703.20 | ||||||||
2015 | 1,279.40 | 1,332.30 | 2,611.70 | |||||||||||
2016 | 1,228.50 | 1,278.20 | 2,506.70 | |||||||||||
2017 | 1,166.90 | 1,209.70 | 2,376.60 | |||||||||||
2018 | 1,121.90 | 1,138.60 | 2,260.50 | |||||||||||
Thereafter | 9,636.40 | 8,405.80 | 18,042.20 | |||||||||||
Total minimum payments | $ | 15,754.50 | $ | 14,746.40 | $ | 30,500.90 | ||||||||
At December 31, 2013, net property and equipment under franchise arrangements totaled $15.5 billion (including land of $4.4 billion) after deducting accumulated depreciation and amortization of $8.1 billion. |
Leasing_Arrangements
Leasing Arrangements | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Leases [Abstract] | ' | |||||||||||||
Leasing Arrangements | ' | |||||||||||||
Leasing Arrangements | ||||||||||||||
At December 31, 2013, the Company was the lessee at 14,815 restaurant locations through ground leases (the Company leases the land and the Company or franchisee owns the building) and through improved leases (the Company leases land and buildings). Lease terms for most restaurants, where market conditions allow, are generally for 20 years and, in many cases, provide for rent escalations and renewal options, with certain leases providing purchase options. Escalation terms vary by geographic segment with examples including fixed-rent escalations, escalations based on an inflation index, and fair-value market adjustments. The timing of these escalations generally ranges from annually to every five years. For most locations, the Company is obligated for the related occupancy costs including property taxes, insurance and maintenance; however, for franchised sites, the Company requires the franchisees to pay these costs. In addition, the Company is the lessee under non-cancelable leases covering certain offices and vehicles. | ||||||||||||||
The following table provides detail of rent expense: | ||||||||||||||
In millions | 2013 | 2012 | 2011 | |||||||||||
Company-operated | ||||||||||||||
restaurants: | ||||||||||||||
U.S. | $ | 61.6 | $ | 59.1 | $ | 55.9 | ||||||||
Outside the U.S. | 713.4 | 661 | 620.4 | |||||||||||
Total | 775 | 720.1 | 676.3 | |||||||||||
Franchised restaurants: | ||||||||||||||
U.S. | 441.6 | 433 | 420 | |||||||||||
Outside the U.S. | 572 | 519.7 | 514.7 | |||||||||||
Total | 1,013.60 | 952.7 | 934.7 | |||||||||||
Other | 104 | 104.2 | 101.7 | |||||||||||
Total rent expense | $ | 1,892.60 | $ | 1,777.00 | $ | 1,712.70 | ||||||||
Rent expense included percent rents in excess of minimum rents (in millions) as follows–Company-operated restaurants: 2013–$175.6; 2012–$169.6; 2011–$165.2. Franchised restaurants: 2013–$187.4; 2012–$178.7; 2011–$173.4. | ||||||||||||||
Future minimum payments required under existing operating leases with initial terms of one year or more are: | ||||||||||||||
In millions | Restaurant | Other | Total | |||||||||||
2014 | $ | 1,361.50 | $ | 78.9 | $ | 1,440.40 | ||||||||
2015 | 1,266.30 | 67.5 | 1,333.80 | |||||||||||
2016 | 1,160.40 | 57.9 | 1,218.30 | |||||||||||
2017 | 1,051.40 | 47.4 | 1,098.80 | |||||||||||
2018 | 947.7 | 42 | 989.7 | |||||||||||
Thereafter | 7,444.90 | 187 | 7,631.90 | |||||||||||
Total minimum payments | $ | 13,232.20 | $ | 480.7 | $ | 13,712.90 | ||||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
Income before provision for income taxes, classified by source of income, was as follows: | ||||||||||||
In millions | 2013 | 2012 | 2011 | |||||||||
U.S. | $ | 2,912.70 | $ | 2,879.70 | $ | 3,202.80 | ||||||
Outside the U.S. | 5,291.80 | 5,199.30 | 4,809.40 | |||||||||
Income before provision for | $ | 8,204.50 | $ | 8,079.00 | $ | 8,012.20 | ||||||
income taxes | ||||||||||||
The provision for income taxes, classified by the timing and location of payment, was as follows: | ||||||||||||
In millions | 2013 | 2012 | 2011 | |||||||||
U.S. federal | $ | 1,238.20 | $ | 1,129.90 | $ | 1,173.40 | ||||||
U.S. state | 175 | 189.8 | 165.2 | |||||||||
Outside the U.S. | 1,180.20 | 1,160.00 | 982.1 | |||||||||
Current tax provision | 2,593.40 | 2,479.70 | 2,320.70 | |||||||||
U.S. federal | 46.2 | 144.9 | 189 | |||||||||
U.S. state | (6.7 | ) | 5.5 | 8.6 | ||||||||
Outside the U.S. | (14.3 | ) | (15.9 | ) | (9.2 | ) | ||||||
Deferred tax provision | 25.2 | 134.5 | 188.4 | |||||||||
Provision for income taxes | $ | 2,618.60 | $ | 2,614.20 | $ | 2,509.10 | ||||||
Net deferred tax liabilities consisted of: | ||||||||||||
In millions | December 31, 2013 | 2012 | ||||||||||
Property and equipment | $ | 1,812.40 | $ | 1,713.90 | ||||||||
Other | 639.8 | 636.4 | ||||||||||
Total deferred tax liabilities | 2,452.20 | 2,350.30 | ||||||||||
Property and equipment | (407.9 | ) | (403.6 | ) | ||||||||
Employee benefit plans | (388.9 | ) | (362.9 | ) | ||||||||
Intangible assets | (210.1 | ) | (258.0 | ) | ||||||||
Deferred foreign tax credits | (192.3 | ) | (179.5 | ) | ||||||||
Operating loss carryforwards | (154.0 | ) | (92.4 | ) | ||||||||
Other | (347.6 | ) | (319.4 | ) | ||||||||
Total deferred tax assets | (1,700.8 | ) | (1,615.8 | ) | ||||||||
before valuation allowance | ||||||||||||
Valuation allowance | 172.8 | 127 | ||||||||||
Net deferred tax liabilities | $ | 924.2 | $ | 861.5 | ||||||||
Balance sheet presentation: | ||||||||||||
Deferred income taxes | $ | 1,647.70 | $ | 1,531.10 | ||||||||
Other assets-miscellaneous | (621.4 | ) | (603.6 | ) | ||||||||
Current assets-prepaid expenses | (102.1 | ) | (66.0 | ) | ||||||||
and other current assets | ||||||||||||
Net deferred tax liabilities | $ | 924.2 | $ | 861.5 | ||||||||
The statutory U.S. federal income tax rate reconciles to the effective income tax rates as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Statutory U.S. federal income tax rate | 35 | % | 35 | % | 35 | % | ||||||
State income taxes, net of related | 1.3 | 1.6 | 1.4 | |||||||||
federal income tax benefit | ||||||||||||
Benefits and taxes related to foreign | (4.0 | ) | (4.1 | ) | (4.7 | ) | ||||||
operations | ||||||||||||
Other, net | (0.4 | ) | (0.1 | ) | (0.4 | ) | ||||||
Effective income tax rates | 31.9 | % | 32.4 | % | 31.3 | % | ||||||
As of December 31, 2013 and 2012, the Company’s gross unrecognized tax benefits totaled $512.7 million and $482.4 million, respectively. After considering the deferred tax accounting impact, it is expected that about $380 million of the total as of December 31, 2013 would favorably affect the effective tax rate if resolved in the Company’s favor. | ||||||||||||
The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits: | ||||||||||||
In millions | 2013 | 2012 | ||||||||||
Balance at January 1 | $ | 482.4 | $ | 565 | ||||||||
Decreases for positions taken in prior years | (38.3 | ) | (65.7 | ) | ||||||||
Increases for positions taken in prior years | 29.4 | 36.9 | ||||||||||
Increases for positions related to the current | 53.8 | 47.3 | ||||||||||
year | ||||||||||||
Settlements with taxing authorities | (2.4 | ) | (95.8 | ) | ||||||||
Lapsing of statutes of limitations | (12.2 | ) | (5.3 | ) | ||||||||
Balance at December 31(1) | $ | 512.7 | $ | 482.4 | ||||||||
-1 | Of this amount, $495.1 million and $481.7 million are included in long-term liabilities for 2013 and 2012, respectively, and $16.8 million is included in current liabilities - income taxes for 2013 on the Consolidated balance sheet. The remainder is included in deferred income taxes on the Consolidated balance sheet. | |||||||||||
In December 2012, the Company reached a final settlement with the Internal Revenue Service ("IRS") Appeals Division regarding its U.S. federal income tax returns for 2007 and 2008. The Company agreed to a settlement of about $80 million, primarily related to proposed foreign tax credit adjustments of about $400 million. The liabilities previously recorded and determined in accordance with Topic 740 - Income Taxes of the Accounting Standards Codification ("ASC") related to this matter were adequate. Additionally, no cash payment was made related to this settlement as the Company had previously made a tax deposit with the IRS. The agreement did not have a material impact on the Company's cash flows, results of operations or financial position. | ||||||||||||
The Company's 2009 and 2010 U.S. federal income tax returns are currently under examination and the completion of the field examination is expected in 2014. In connection with this examination, the Company agreed to certain adjustments that have been proposed by the IRS and appropriately accounted for these adjustments in accordance with ASC 740. The Company is also under audit in multiple state and foreign tax jurisdictions. It is reasonably possible that the audits in certain of these jurisdictions could be completed within 12 months. Due to the expected settlement of the 2009 and 2010 IRS agreed adjustments, the possible completion of the aforementioned state and foreign tax audits and the expiration of the statute of limitations in multiple tax jurisdictions, it is reasonably possible that the total amount of unrecognized tax benefits could decrease within the next 12 months by $120 million to $140 million, of which $5 million to $10 million could favorably affect the effective tax rate. | ||||||||||||
Also in connection with the Company’s 2009 and 2010 U.S. federal income tax returns, the Company received notices of proposed adjustments ("NOPAs") in 2014 and expects to receive additional NOPAs within the next 12 months from the IRS related to certain transfer pricing matters. It is reasonably possible that the receipt of these future NOPAs will provide new information that causes the Company to reassess the total amount of unrecognized tax benefits recorded. In addition, the Company is currently under audit in other tax jurisdictions. Completion of the tax audits for certain jurisdictions is not expected within 12 months. However, it is reasonably possible that, as a result of audit progression within the next 12 months, there may be new information that causes the Company to reassess the total amount of unrecognized tax benefits recorded. While the Company cannot estimate the impact that new information may have on our unrecognized tax benefit balance, we believe that the liabilities recorded are appropriate and adequate as determined under ASC 740. | ||||||||||||
The Company is generally no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years prior to 2007. | ||||||||||||
The Company had $55.4 million and $37.7 million accrued for interest and penalties at December 31, 2013 and 2012, respectively. The Company recognized interest and penalties related to tax matters of $14.4 million in 2013, $11.2 million in 2012, and $4.8 million in 2011, which are included in the provision for income taxes. | ||||||||||||
Deferred U.S. income taxes have not been recorded for temporary differences related to investments in certain foreign subsidiaries and corporate joint ventures. These temporary differences were approximately $16.1 billion at December 31, 2013 and consisted primarily of undistributed earnings considered permanently invested in operations outside the U.S. Determination of the deferred income tax liability on these unremitted earnings is not practicable because such liability, if any, is dependent on circumstances existing if and when remittance occurs. |
Segment_and_Geographic_Informa
Segment and Geographic Information | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Segment and Geographic Information | ' | ||||||||||||
Segment and Geographic Information | |||||||||||||
The Company operates in the global restaurant industry and manages its business as distinct geographic segments. All intercompany revenues and expenses are eliminated in computing revenues and operating income. Corporate general and administrative expenses are included in Other Countries & Corporate and consist of home office support costs in areas such as facilities, finance, human resources, information technology, legal, marketing, restaurant operations, supply chain and training. Corporate assets include corporate cash and equivalents, asset portions of financial instruments and home office facilities. | |||||||||||||
In millions | 2013 | 2012 | 2011 | ||||||||||
U.S. | $ | 8,851.30 | $ | 8,813.70 | $ | 8,528.20 | |||||||
Europe | 11,299.80 | 10,827.40 | 10,886.40 | ||||||||||
APMEA | 6,477.20 | 6,391.10 | 6,019.50 | ||||||||||
Other Countries & | 1,477.40 | 1,534.80 | 1,571.90 | ||||||||||
Corporate | |||||||||||||
Total revenues | $ | 28,105.70 | $ | 27,567.00 | $ | 27,006.00 | |||||||
U.S. | $ | 3,779.30 | $ | 3,750.40 | $ | 3,666.20 | |||||||
Europe | 3,370.60 | 3,195.80 | 3,226.70 | ||||||||||
APMEA | 1,479.70 | 1,566.10 | 1,525.80 | ||||||||||
Other Countries & | 134.7 | 92.3 | 111 | ||||||||||
Corporate | |||||||||||||
Total operating income | $ | 8,764.30 | $ | 8,604.60 | $ | 8,529.70 | |||||||
U.S. | $ | 11,711.80 | $ | 11,431.60 | $ | 10,865.50 | |||||||
Europe | 15,096.30 | 14,223.30 | 12,015.10 | ||||||||||
APMEA | 6,202.70 | 6,419.30 | 5,824.20 | ||||||||||
Other Countries & | 3,615.50 | 3,312.30 | 4,285.10 | ||||||||||
Corporate | |||||||||||||
Total assets | $ | 36,626.30 | $ | 35,386.50 | $ | 32,989.90 | |||||||
U.S. | $ | 875.5 | $ | 1,065.00 | $ | 786.5 | |||||||
Europe | 1,157.30 | 1,114.70 | 1,130.10 | ||||||||||
APMEA | 654.6 | 716.6 | 614.1 | ||||||||||
Other Countries & | 137.3 | 152.9 | 199.1 | ||||||||||
Corporate | |||||||||||||
Total capital expenditures | $ | 2,824.70 | $ | 3,049.20 | $ | 2,729.80 | |||||||
U.S. | $ | 503.6 | $ | 477.1 | $ | 446 | |||||||
Europe | 627.1 | 573.5 | 570.3 | ||||||||||
APMEA | 319.2 | 296.2 | 267.5 | ||||||||||
Other Countries & | 135.2 | 141.7 | 131.2 | ||||||||||
Corporate | |||||||||||||
Total depreciation and amortization | $ | 1,585.10 | $ | 1,488.50 | $ | 1,415.00 | |||||||
Total long-lived assets, primarily property and equipment, were (in millions)–Consolidated: 2013–$30,679.8; 2012– $29,644.5; 2011–$27,587.6; U.S. based: 2013–$11,632.2; 2012–$11,308.7; 2011–$10,724.9. |
Debt_Financing
Debt Financing | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||
Debt Financing | ' | ||||||||||||||||
Debt Financing | |||||||||||||||||
LINE OF CREDIT AGREEMENTS | |||||||||||||||||
At December 31, 2013, the Company had a $1.5 billion line of credit agreement expiring in November 2016 with fees of 0.065% per annum on the total commitment, which remained unused. Fees and interest rates on this line are based on the Company’s long-term credit rating assigned by Moody’s and Standard & Poor’s. In addition, the Company's subsidiaries had unused lines of credit that were primarily uncommitted, short-term and denominated in various currencies at local market rates of interest. | |||||||||||||||||
The weighted-average interest rate of short-term borrowings was 5.1% at December 31, 2013 (based on $609.7 million of foreign currency bank line borrowings) and 4.1% at December 31, 2012 (based on $581.3 million of foreign currency bank line borrowings and $200.0 million of commercial paper). | |||||||||||||||||
DEBT OBLIGATIONS | |||||||||||||||||
The Company has incurred debt obligations principally through public and private offerings and bank loans. There are no provisions in the Company’s debt obligations that would accelerate repayment of debt as a result of a change in credit ratings or a material adverse change in the Company’s business. Certain of the Company’s debt obligations contain cross-acceleration provisions, and restrictions on Company and subsidiary mortgages and the long-term debt of certain subsidiaries. Under certain agreements, the Company has the option to retire debt prior to maturity, either at par or at a premium over par. The Company has no current plans to retire a significant amount of its debt prior to maturity. | |||||||||||||||||
ESOP LOANS | |||||||||||||||||
Borrowings related to the leveraged Employee Stock Ownership Plan ("ESOP") at December 31, 2013, which include $23.2 million of loans from the Company to the ESOP, are reflected as debt with a corresponding reduction of shareholders’ equity (additional paid-in capital included a balance of $19.9 million and $27.2 million at December 31, 2013 and 2012, respectively). The ESOP is repaying the loans and interest through 2018 using Company contributions and dividends from its McDonald’s common stock holdings. As the principal amount of the borrowings is repaid, the debt and the unearned ESOP compensation (additional paid-in capital) are reduced. | |||||||||||||||||
The following table summarizes the Company’s debt obligations (interest rates and debt amounts reflected in the table include the effects of interest rate swaps). | |||||||||||||||||
Interest rates(1) | Amounts outstanding | ||||||||||||||||
December 31 | December 31 | ||||||||||||||||
In millions of U.S. Dollars | Maturity dates | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Fixed | 4.6 | % | 4.8 | % | $ | 6,460.60 | $ | 7,075.70 | |||||||||
Floating | 3.2 | 1.2 | 1,900.00 | 1,650.00 | |||||||||||||
Total U.S. Dollars | 2014-2043 | 8,360.60 | 8,725.70 | ||||||||||||||
Fixed | 3.3 | 3.7 | 2,884.90 | 1,847.20 | |||||||||||||
Floating | 2.8 | 2.9 | 357.2 | 348 | |||||||||||||
Total Euro | 2014-2025 | 3,242.10 | 2,195.20 | ||||||||||||||
Fixed | 2.9 | 2.9 | 118.7 | 144.2 | |||||||||||||
Floating | 0.4 | 0.4 | 759.8 | 923.3 | |||||||||||||
Total Japanese Yen | 2014-2030 | 878.5 | 1,067.50 | ||||||||||||||
Total British Pounds Sterling-Fixed | 2020-2032 | 6 | 6 | 744.3 | 730.1 | ||||||||||||
Fixed | — | 3 | — | 32.1 | |||||||||||||
Floating | 5.4 | 5.6 | 525.1 | 470.8 | |||||||||||||
Total Chinese Renminbi | 2014 | 525.1 | 502.9 | ||||||||||||||
Fixed | 1.9 | 1.9 | 281 | 273.3 | |||||||||||||
Floating | 3.6 | 4.4 | 85.4 | 95.5 | |||||||||||||
Total other currencies(2) | 2014-2021 | 366.4 | 368.8 | ||||||||||||||
Debt obligations before fair value adjustments(3) | 14,117.00 | 13,590.20 | |||||||||||||||
Fair value adjustments(4) | 12.8 | 42.3 | |||||||||||||||
Total debt obligations(5) | $ | 14,129.80 | $ | 13,632.50 | |||||||||||||
-1 | Weighted-average effective rate, computed on a semi-annual basis. | ||||||||||||||||
-2 | Primarily consists of Swiss Francs and Korean Won. | ||||||||||||||||
-3 | Aggregate maturities for 2013 debt balances, before fair value adjustments, were as follows (in millions): 2014–$0.0; 2015–$1,199.2; 2016–$2,094.6; 2017–$1,054.2; 2018–$1,003.9; Thereafter–$8,765.1. These amounts include a reclassification of short-term obligations totaling $1.2 billion to long-term obligations as they are supported by a long-term line of credit agreement expiring in November 2016. | ||||||||||||||||
-4 | The carrying value of underlying items in fair value hedges, in this case debt obligations, are adjusted for fair value changes to the extent they are attributable to the risk designated as being hedged. The related hedging instrument is also recorded at fair value in prepaid expenses and other current assets, miscellaneous other assets or other long-term liabilities. | ||||||||||||||||
-5 | The increase in debt obligations from December 31, 2012 to December 31, 2013 was primarily due to net issuances of $0.5 billion. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Employee Benefit Plans | ' |
Employee Benefit Plans | |
The Company’s Profit Sharing and Savings Plan for U.S.-based employees includes a 401(k) feature, a regular employee match feature, and a discretionary employer profit sharing match. The 401(k) feature allows participants to make pretax contributions that are matched each pay period from shares released under the ESOP. The Profit Sharing and Savings Plan also provides for a discretionary employer profit sharing match after the end of the year for those participants eligible to share in the match. | |
All current account balances and future contributions and related earnings can be invested in several investment alternatives as well as McDonald’s common stock in accordance with each participant’s elections. Participants’ contributions to the 401(k) feature and the discretionary employer matching contribution feature are limited to 20% investment in McDonald’s common stock. Participants may choose to make separate investment choices for current account balances and for future contributions. | |
The Company also maintains certain nonqualified supplemental benefit plans that allow participants to (i) make tax-deferred contributions and (ii) receive Company-provided allocations that cannot be made under the Profit Sharing and Savings Plan because of IRS limitations. The investment alternatives and returns are based on certain market-rate investment alternatives under the Profit Sharing and Savings Plan. Total liabilities were $531.1 million at December 31, 2013, and $493.5 million at December 31, 2012, and were primarily included in other long-term liabilities on the Consolidated balance sheet. | |
The Company has entered into derivative contracts to hedge market-driven changes in certain of the liabilities. At December 31, 2013, derivatives with a fair value of $128.2 million indexed to the Company's stock and a total return swap with a notional amount of $181.4 million indexed to certain market indices were included at their fair value in Miscellaneous other assets and Prepaid expenses and other current assets, respectively, on the Consolidated balance sheet. Changes in liabilities for these nonqualified plans and in the fair value of the derivatives are recorded primarily in Selling, general & administrative expenses. Changes in fair value of the derivatives indexed to the Company’s stock are recorded in the income statement because the contracts provide the counterparty with a choice to settle in cash or shares. | |
Total U.S. costs for the Profit Sharing and Savings Plan, including nonqualified benefits and related hedging activities, were (in millions): 2013–$21.9; 2012–$27.9; 2011–$41.3. Certain subsidiaries outside the U.S. also offer profit sharing, stock purchase or other similar benefit plans. Total plan costs outside the U.S. were (in millions): 2013–$51.2; 2012–$62.5; 2011–$58.3. | |
The total combined liabilities for international retirement plans were $75.0 million and $77.7 million at December 31, 2013 and 2012, respectively. Other post-retirement benefits and post- employment benefits were immaterial. |
Sharebased_Compensation
Share-based Compensation | 12 Months Ended | ||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||||||||||
Share-based Compensation | ' | ||||||||||||||||||||||||||||||
Share-based Compensation | |||||||||||||||||||||||||||||||
The Company maintains a share-based compensation plan which authorizes the granting of various equity-based incentives including stock options and restricted stock units (RSUs) to employees and nonemployee directors. The number of shares of common stock reserved for issuance under the plans was 73.1 million at December 31, 2013, including 46.0 million available for future grants. | |||||||||||||||||||||||||||||||
STOCK OPTIONS | |||||||||||||||||||||||||||||||
Stock options to purchase common stock are granted with an exercise price equal to the closing market price of the Company’s stock on the date of grant. Substantially all of the options become exercisable in four equal installments, beginning a year from the date of the grant, and generally expire 10 years from the grant date. | |||||||||||||||||||||||||||||||
Intrinsic value for stock options is defined as the difference between the current market value of the Company’s stock and the exercise price. During 2013, 2012 and 2011, the total intrinsic value of stock options exercised was $325.2 million, $469.8 million and $416.5 million, respectively. Cash received from stock options exercised during 2013 was $233.3 million and the tax benefit realized from stock options exercised totaled $98.9 million. The Company uses treasury shares purchased under the Company’s share repurchase program to satisfy share-based exercises. | |||||||||||||||||||||||||||||||
A summary of the status of the Company’s stock option grants as of December 31, 2013, 2012 and 2011, and changes during the years then ended, is presented in the following table: | |||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||
Options | Shares in | Weighted- | Weighted- | Aggregate | Shares in | Weighted- | Shares in | Weighted- | |||||||||||||||||||||||
millions | average | average | intrinsic | millions | average | millions | average | ||||||||||||||||||||||||
exercise | remaining | value in | exercise | exercise | |||||||||||||||||||||||||||
price | contractual | millions | price | price | |||||||||||||||||||||||||||
life in years | |||||||||||||||||||||||||||||||
Outstanding at beginning of year | 27.4 | $ | 59.86 | 31.7 | $ | 47.77 | 37.4 | $ | 42.47 | ||||||||||||||||||||||
Granted | 3.7 | 94.36 | 4.9 | 99.63 | 3.9 | 75.97 | |||||||||||||||||||||||||
Exercised | (5.7 | ) | 40.12 | (8.6 | ) | 38.51 | (9.0 | ) | 37.46 | ||||||||||||||||||||||
Forfeited/expired | (0.3 | ) | 79.15 | (0.6 | ) | 55.28 | (0.6 | ) | 55 | ||||||||||||||||||||||
Outstanding at end of year | 25.1 | $ | 69.15 | 5.9 | $ | 713.7 | 27.4 | $ | 59.86 | 31.7 | $ | 47.77 | |||||||||||||||||||
Exercisable at end of year | 15.6 | $ | 56.43 | 4.5 | $ | 638.6 | 17.1 | 21.9 | |||||||||||||||||||||||
RSUs | |||||||||||||||||||||||||||||||
RSUs generally vest 100% on the third anniversary of the grant and are payable in either shares of McDonald’s common stock or cash, at the Company’s discretion. Certain executives have been awarded RSUs that vest based on Company performance. The fair value of each RSU granted is equal to the market price of the Company’s stock at date of grant less the present value of expected dividends over the vesting period. | |||||||||||||||||||||||||||||||
A summary of the Company’s RSU activity during the years ended December 31, 2013, 2012 and 2011 is presented in the following table: | |||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||
RSUs | Shares in | Weighted- | Shares in | Weighted- | Shares in | Weighted- | |||||||||||||||||||||||||
millions | average | millions | average | millions | average | ||||||||||||||||||||||||||
grant date | grant date | grant date | |||||||||||||||||||||||||||||
fair value | fair value | fair value | |||||||||||||||||||||||||||||
Nonvested at beginning of year | 1.8 | $ | 68.23 | 2.1 | $ | 56.78 | 2.3 | $ | 51.17 | ||||||||||||||||||||||
Granted | 1 | 83.98 | 0.5 | 90.34 | 0.6 | 67.96 | |||||||||||||||||||||||||
Vested | (0.7 | ) | 56.93 | (0.8 | ) | 50.69 | (0.7 | ) | 49.88 | ||||||||||||||||||||||
Forfeited | (0.1 | ) | 82.44 | 0 | 68.72 | (0.1 | ) | 50.16 | |||||||||||||||||||||||
Nonvested at end of year | 2 | $ | 78.89 | 1.8 | $ | 68.23 | 2.1 | $ | 56.78 | ||||||||||||||||||||||
The total fair value of RSUs vested during 2013, 2012 and 2011 was $60.2 million, $76.4 million and $55.5 million, respectively. The tax benefit realized from RSUs vested during 2013 was $18.3 million. |
Quarterly_Results_Unaudited
Quarterly Results (Unaudited) | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||||||
Quarterly Results (Unaudited) | ' | |||||||||||||||||||||||||||||||||||
Quarterly Results (Unaudited) | ||||||||||||||||||||||||||||||||||||
Quarters ended | Quarters ended | Quarters ended | Quarters ended | |||||||||||||||||||||||||||||||||
December 31 | September 30 | June 30 | March 31 | |||||||||||||||||||||||||||||||||
In millions, except per share data | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||
Sales by Company-operated | $ | 4,744.30 | $ | 4,658.40 | $ | 4,923.10 | $ | 4,838.40 | $ | 4,761.40 | $ | 4,673.50 | $ | 4,445.40 | $ | 4,432.20 | ||||||||||||||||||||
restaurants | ||||||||||||||||||||||||||||||||||||
Revenues from franchised | 2,348.90 | 2,293.70 | 2,400.30 | 2,314.00 | 2,322.40 | 2,242.40 | 2,159.90 | 2,114.40 | ||||||||||||||||||||||||||||
restaurants | ||||||||||||||||||||||||||||||||||||
Total revenues | 7,093.20 | 6,952.10 | 7,323.40 | 7,152.40 | 7,083.80 | 6,915.90 | 6,605.30 | 6,546.60 | ||||||||||||||||||||||||||||
Company-operated margin | 815.6 | 827.3 | 918.7 | 924 | 841.9 | 849.7 | 719.4 | 777.8 | ||||||||||||||||||||||||||||
Franchised margin | 1,927.20 | 1,901.00 | 1,991.90 | 1,930.60 | 1,923.30 | 1,866.20 | 1,764.70 | 1,739.70 | ||||||||||||||||||||||||||||
Operating income | 2,200.40 | 2,197.80 | 2,416.70 | 2,287.20 | 2,197.70 | 2,155.00 | 1,949.50 | 1,964.60 | ||||||||||||||||||||||||||||
Net income | $ | 1,397.00 | $ | 1,396.10 | $ | 1,522.20 | $ | 1,455.00 | $ | 1,396.50 | $ | 1,347.00 | $ | 1,270.20 | $ | 1,266.70 | ||||||||||||||||||||
Earnings per common | $ | 1.41 | $ | 1.39 | $ | 1.53 | $ | 1.45 | $ | 1.39 | $ | 1.33 | $ | 1.27 | $ | 1.24 | ||||||||||||||||||||
share—basic | ||||||||||||||||||||||||||||||||||||
Earnings per common | $ | 1.4 | $ | 1.38 | $ | 1.52 | $ | 1.43 | $ | 1.38 | $ | 1.32 | $ | 1.26 | $ | 1.23 | ||||||||||||||||||||
share—diluted | ||||||||||||||||||||||||||||||||||||
Dividends declared per | $ | 1.58 | (1) | $ | 1.47 | (2) | $ | 0.77 | $ | 0.7 | $ | 0.77 | $ | 0.7 | ||||||||||||||||||||||
common share | ||||||||||||||||||||||||||||||||||||
Weighted-average | 992.5 | 1,002.40 | 997.3 | 1,006.10 | 1,001.40 | 1,013.80 | 1,002.70 | 1,018.20 | ||||||||||||||||||||||||||||
common shares—basic | ||||||||||||||||||||||||||||||||||||
Weighted-average | 999.3 | 1,010.70 | 1,004.20 | 1,015.40 | 1,008.70 | 1,023.90 | 1,010.80 | 1,030.00 | ||||||||||||||||||||||||||||
common shares—diluted | ||||||||||||||||||||||||||||||||||||
Market price per common | ||||||||||||||||||||||||||||||||||||
share: | ||||||||||||||||||||||||||||||||||||
High | $ | 99.27 | $ | 94.16 | $ | 101.81 | $ | 94 | $ | 103.7 | $ | 99.5 | $ | 99.78 | $ | 102.22 | ||||||||||||||||||||
Low | 93.14 | 83.31 | 94.01 | 86.15 | 95.16 | 85.92 | 89.25 | 95.13 | ||||||||||||||||||||||||||||
Close | 97.03 | 88.21 | 96.21 | 91.75 | 99 | 88.53 | 99.69 | 98.1 | ||||||||||||||||||||||||||||
-1 | Includes a $0.77 per share dividend declared and paid in third quarter and a $0.81 per share dividend declared in third quarter and paid in fourth quarter. | |||||||||||||||||||||||||||||||||||
-2 | Includes a $0.70 per share dividend declared and paid in third quarter and a $0.77 per share dividend declared in third quarter and paid in fourth quarter. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||||||||||||||||||||||
NATURE OF BUSINESS | ' | |||||||||||||||||||||||||||||||||||
NATURE OF BUSINESS | ||||||||||||||||||||||||||||||||||||
The Company franchises and operates McDonald’s restaurants in the global restaurant industry. All restaurants are operated either by the Company or by franchisees, including conventional franchisees under franchise arrangements, and foreign affiliates and developmental licensees under license agreements. | ||||||||||||||||||||||||||||||||||||
CONSOLIDATION | ' | |||||||||||||||||||||||||||||||||||
CONSOLIDATION | ||||||||||||||||||||||||||||||||||||
The consolidated financial statements include the accounts of the Company and its subsidiaries. Investments in affiliates owned 50% or less (primarily McDonald’s Japan) are accounted for by the equity method. | ||||||||||||||||||||||||||||||||||||
On an ongoing basis, the Company evaluates its business relationships such as those with franchisees, joint venture partners, developmental licensees, suppliers, and advertising cooperatives to identify potential variable interest entities. Generally, these businesses qualify for a scope exception under the variable interest entity consolidation guidance. The Company has concluded that consolidation of any such entity is not appropriate for the periods presented. | ||||||||||||||||||||||||||||||||||||
ESTIMATES IN FINANCIAL STATEMENTS | ' | |||||||||||||||||||||||||||||||||||
ESTIMATES IN FINANCIAL STATEMENTS | ||||||||||||||||||||||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. | ||||||||||||||||||||||||||||||||||||
REVENUE RECOGNITION | ' | |||||||||||||||||||||||||||||||||||
REVENUE RECOGNITION | ||||||||||||||||||||||||||||||||||||
The Company’s revenues consist of sales by Company-operated restaurants and fees from franchised restaurants operated by conventional franchisees, developmental licensees and foreign affiliates. | ||||||||||||||||||||||||||||||||||||
Sales by Company-operated restaurants are recognized on a cash basis. The Company presents sales net of sales tax and other sales-related taxes. Revenues from conventional franchised restaurants include rent and royalties based on a percent of sales with minimum rent payments, and initial fees. Revenues from restaurants licensed to foreign affiliates and developmental licensees include a royalty based on a percent of sales, and may include initial fees. Continuing rent and royalties are recognized in the period earned. Initial fees are recognized upon opening of a restaurant or granting of a new franchise term, which is when the Company has performed substantially all initial services required by the franchise arrangement. | ||||||||||||||||||||||||||||||||||||
FOREIGN CURRENCY TRANSLATION | ' | |||||||||||||||||||||||||||||||||||
FOREIGN CURRENCY TRANSLATION | ||||||||||||||||||||||||||||||||||||
Generally, the functional currency of operations outside the U.S. is the respective local currency. | ||||||||||||||||||||||||||||||||||||
ADVERTISING COSTS | ' | |||||||||||||||||||||||||||||||||||
ADVERTISING COSTS | ||||||||||||||||||||||||||||||||||||
Advertising costs included in operating expenses of Company-operated restaurants primarily consist of contributions to advertising cooperatives and were (in millions): 2013–$808.4; 2012–$787.5; 2011–$768.6. Production costs for radio and television advertising are expensed when the commercials are initially aired. These production costs, primarily in the U.S., as well as other marketing-related expenses included in Selling, general & administrative expenses were (in millions): 2013–$75.4; 2012–$113.5; 2011–$74.4. Costs related to the Olympics sponsorship are included in these expenses for 2012. In addition, significant advertising costs are incurred by franchisees through contributions to advertising cooperatives in individual markets. | ||||||||||||||||||||||||||||||||||||
SHARE-BASED COMPENSATION | ' | |||||||||||||||||||||||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||||||||||||||||||||||||
Share-based compensation includes the portion vesting of all share-based awards granted based on the grant date fair value. | ||||||||||||||||||||||||||||||||||||
PROPERTY AND EQUIPMENT | ' | |||||||||||||||||||||||||||||||||||
PROPERTY AND EQUIPMENT | ||||||||||||||||||||||||||||||||||||
Property and equipment are stated at cost, with depreciation and amortization provided using the straight-line method over the following estimated useful lives: buildings–up to 40 years; leasehold improvements–the lesser of useful lives of assets or lease terms, which generally include option periods; and equipment–three to 12 years. | ||||||||||||||||||||||||||||||||||||
GOODWILL | ' | |||||||||||||||||||||||||||||||||||
GOODWILL | ||||||||||||||||||||||||||||||||||||
Goodwill represents the excess of cost over the net tangible assets and identifiable intangible assets of acquired restaurant businesses. The Company's goodwill primarily results from purchases of McDonald's restaurants from franchisees and ownership increases in subsidiaries or affiliates, and it is generally assigned to the reporting unit expected to benefit from the synergies of the combination. If a Company-operated restaurant is sold within 24 months of acquisition, the goodwill associated with the acquisition is written off in its entirety. If a restaurant is sold beyond 24 months from the acquisition, the amount of goodwill written off is based on the relative fair value of the business sold compared to the reporting unit (defined as each individual country). | ||||||||||||||||||||||||||||||||||||
The Company conducts goodwill impairment testing in the fourth quarter of each year or whenever an indicator of impairment exists. If an indicator of impairment exists (e.g., estimated earnings multiple value of a reporting unit is less than its carrying value), the goodwill impairment test compares the fair value of a reporting unit, generally based on discounted future cash flows, with its carrying amount including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is measured as the difference between the implied fair value of the reporting unit's goodwill and the carrying amount of goodwill. Historically, goodwill impairment has not significantly impacted the consolidated financial statements. | ||||||||||||||||||||||||||||||||||||
LONG-LIVED ASSETS | ' | |||||||||||||||||||||||||||||||||||
LONG-LIVED ASSETS | ||||||||||||||||||||||||||||||||||||
Long-lived assets are reviewed for impairment annually in the fourth quarter and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of annually reviewing McDonald’s restaurant assets for potential impairment, assets are initially grouped together at a television market level in the U.S. and at a country level for each of the international markets. The Company manages its restaurants as a group or portfolio with significant common costs and promotional activities; as such, an individual restaurant’s cash flows are not generally independent of the cash flows of others in a market. If an indicator of impairment (e.g., negative operating cash flows for the most recent trailing 24-month period) exists for any grouping of assets, an estimate of undiscounted future cash flows produced by each individual restaurant within the asset grouping is compared to its carrying value. If an individual restaurant is determined to be impaired, the loss is measured by the excess of the carrying amount of the restaurant over its fair value as determined by an estimate of discounted future cash flows. | ||||||||||||||||||||||||||||||||||||
Losses on assets held for disposal are recognized when management and the Board of Directors, as required, have approved and committed to a plan to dispose of the assets, the assets are available for disposal, the disposal is probable of occurring within 12 months, and the net sales proceeds are expected to be less than its net book value, among other factors. Generally, such losses relate to restaurants that have closed and ceased operations as well as other assets that meet the criteria to be considered “available for sale”. | ||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||||||||||||||||||||||
The Company measures certain financial assets and liabilities at fair value on a recurring basis, and certain non-financial assets and liabilities on a nonrecurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. Fair value disclosures are reflected in a three-level hierarchy, maximizing the use of observable inputs and minimizing the use of unobservable inputs. | ||||||||||||||||||||||||||||||||||||
The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The three levels are defined as follows: | ||||||||||||||||||||||||||||||||||||
▪ | Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for an identical asset or liability in an active market. | |||||||||||||||||||||||||||||||||||
▪ | Level 2 – inputs to the valuation methodology include quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability. | |||||||||||||||||||||||||||||||||||
▪ | Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement of the asset or liability. | |||||||||||||||||||||||||||||||||||
Certain of the Company’s derivatives are valued using various pricing models or discounted cash flow analyses that incorporate observable market parameters, such as interest rate yield curves, option volatilities and currency rates, classified as Level 2 within the valuation hierarchy. Derivative valuations incorporate credit risk adjustments that are necessary to reflect the probability of default by the counterparty or the Company. | ||||||||||||||||||||||||||||||||||||
▪ | Certain Financial Assets and Liabilities Measured at Fair Value | |||||||||||||||||||||||||||||||||||
The following tables present financial assets and liabilities measured at fair value on a recurring basis by the valuation hierarchy as defined in the fair value guidance: | ||||||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||
In millions | Level 1* | Level 2 | Carrying | |||||||||||||||||||||||||||||||||
Value | ||||||||||||||||||||||||||||||||||||
Investments | $ | 27.6 | $ | 27.6 | ||||||||||||||||||||||||||||||||
Derivative assets | 128.2 | $ | 71.6 | 199.8 | ||||||||||||||||||||||||||||||||
Total assets at fair value | $ | 155.8 | $ | 71.6 | $ | 227.4 | ||||||||||||||||||||||||||||||
Derivative liabilities | $ | (179.3 | ) | $ | (179.3 | ) | ||||||||||||||||||||||||||||||
Total liabilities at fair value | $ | (179.3 | ) | $ | (179.3 | ) | ||||||||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||||||||||
In millions | Level 1* | Level 2 | Carrying | |||||||||||||||||||||||||||||||||
Value | ||||||||||||||||||||||||||||||||||||
Investments | $ | 155.1 | $ | 155.1 | ||||||||||||||||||||||||||||||||
Derivative assets | 132.3 | $ | 86.1 | 218.4 | ||||||||||||||||||||||||||||||||
Total assets at fair value | $ | 287.4 | $ | 86.1 | $ | 373.5 | ||||||||||||||||||||||||||||||
Derivative liabilities | $ | (42.6 | ) | $ | (42.6 | ) | ||||||||||||||||||||||||||||||
Total liabilities at fair value | $ | (42.6 | ) | $ | (42.6 | ) | ||||||||||||||||||||||||||||||
* | Level 1 is comprised of investments and derivatives that hedge market driven changes in liabilities associated with the Company’s supplemental benefit plans. | |||||||||||||||||||||||||||||||||||
▪ | Non-Financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | |||||||||||||||||||||||||||||||||||
Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances (e.g., when there is evidence of impairment). For the year ended December 31, 2013, no material fair value adjustments or fair value measurements were required for non-financial assets or liabilities. | ||||||||||||||||||||||||||||||||||||
▪ | Certain Financial Assets and Liabilities not Measured at Fair Value | |||||||||||||||||||||||||||||||||||
At December 31, 2013, the fair value of the Company’s debt obligations was estimated at $15.0 billion, compared to a carrying amount of $14.1 billion. The fair value was based on quoted market prices, Level 2 within the valuation hierarchy. The carrying amount for both cash equivalents and notes receivable approximate fair value. | ||||||||||||||||||||||||||||||||||||
FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | ' | |||||||||||||||||||||||||||||||||||
FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||||||||||||||||||||||||||||||
The Company is exposed to global market risks, including the effect of changes in interest rates and foreign currency fluctuations. The Company uses foreign currency denominated debt and derivative instruments to mitigate the impact of these changes. The Company does not hold or issue derivatives for trading purposes. | ||||||||||||||||||||||||||||||||||||
The Company documents its risk management objective and strategy for undertaking hedging transactions, as well as all relationships between hedging instruments and hedged items. The Company’s derivatives that are designated for hedge accounting consist mainly of interest rate swaps, foreign currency forwards, foreign currency options, and cross-currency swaps, further explained in the "Fair Value," "Cash Flow" and "Net Investment" hedge sections. | ||||||||||||||||||||||||||||||||||||
The Company also enters into certain derivatives that are not designated for hedge accounting. The Company has entered into equity derivative contracts, including total return swaps, to hedge market-driven changes in certain of its supplemental benefit plan liabilities. Changes in the fair value of these derivatives are recorded primarily in Selling, general & administrative expenses together with the changes in the supplemental benefit plan liabilities. In addition, the Company uses foreign currency forwards to mitigate the change in fair value of certain foreign currency denominated assets and liabilities. Since these derivatives are not designated for hedge accounting, the changes in the fair value of these derivatives are recognized immediately in Nonoperating (income) expense together with the currency gain or loss from the hedged balance sheet position. A portion of the Company’s foreign currency options (more fully described in the "Cash Flow Hedges" section) are undesignated as hedging instruments as the underlying foreign currency royalties are earned. | ||||||||||||||||||||||||||||||||||||
All derivative instruments designated for hedge accounting are classified as fair value, cash flow or net investment hedges. All derivatives (including those not designated for hedge accounting) are recognized on the Consolidated balance sheet at fair value and classified based on the instruments’ maturity dates. Changes in the fair value measurements of the derivative instruments are reflected as adjustments to other comprehensive income ("OCI") and/or current earnings. | ||||||||||||||||||||||||||||||||||||
The following table presents the fair values of derivative instruments included on the Consolidated balance sheet as of December 31, 2013 and 2012: | ||||||||||||||||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | |||||||||||||||||||||||||||||||||||
In millions | Balance Sheet Classification | 2013 | 2012 | Balance Sheet Classification | 2013 | 2012 | ||||||||||||||||||||||||||||||
Derivatives designated for hedge accounting | ||||||||||||||||||||||||||||||||||||
Foreign currency | Prepaid expenses and other current assets | $ | 28.3 | $ | 5 | Accrued payroll and other liabilities | $ | (28.8 | ) | $ | (3.5 | ) | ||||||||||||||||||||||||
Interest rate | Prepaid expenses and other current assets | — | 4.2 | |||||||||||||||||||||||||||||||||
Commodity | Miscellaneous other assets | — | 35.3 | Other long-term liabilities | — | (0.2 | ) | |||||||||||||||||||||||||||||
Foreign currency | Miscellaneous other assets | 2.5 | 2.5 | Other long-term liabilities | (114.7 | ) | (32.1 | ) | ||||||||||||||||||||||||||||
Interest rate | Miscellaneous other assets | 24.8 | 38.1 | Other long-term liabilities | (12.0 | ) | — | |||||||||||||||||||||||||||||
Total derivatives designated for hedge accounting | $ | 55.6 | $ | 85.1 | $ | (155.5 | ) | $ | (35.8 | ) | ||||||||||||||||||||||||||
Derivatives not designated for hedge accounting | ||||||||||||||||||||||||||||||||||||
Equity | Prepaid expenses and other current assets | $ | 6.7 | $ | 132.3 | |||||||||||||||||||||||||||||||
Foreign currency | Prepaid expenses and other current assets | 9.3 | 1 | Accrued payroll and other liabilities | $ | (23.8 | ) | $ | (6.8 | ) | ||||||||||||||||||||||||||
Equity | Miscellaneous other assets | 128.2 | — | |||||||||||||||||||||||||||||||||
Total derivatives not designated for hedge accounting | $ | 144.2 | $ | 133.3 | $ | (23.8 | ) | $ | (6.8 | ) | ||||||||||||||||||||||||||
Total derivatives | $ | 199.8 | $ | 218.4 | $ | (179.3 | ) | $ | (42.6 | ) | ||||||||||||||||||||||||||
The following table presents the pretax amounts affecting income and OCI for the years ended December 31, 2013 and 2012, respectively: | ||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||
Derivatives in | Gain (Loss) | Hedged Items in | Gain (Loss) | |||||||||||||||||||||||||||||||||
Fair Value | Recognized in Income | Fair Value | Recognized in Income on | |||||||||||||||||||||||||||||||||
Hedging | on Derivative | Hedging | Related Hedged Items | |||||||||||||||||||||||||||||||||
Relationships | Relationships | |||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||
Interest rate | $ | (29.5 | ) | $ | (13.0 | ) | Fixed-rate debt | $ | 29.5 | $ | 13 | |||||||||||||||||||||||||
Derivatives in | Gain (Loss) Recognized in | Gain (Loss) | Gain (Loss) | |||||||||||||||||||||||||||||||||
Cash Flow | Accumulated OCI on Derivative | Reclassified into Income | Recognized in Income on | |||||||||||||||||||||||||||||||||
Hedging | (Effective Portion) | from Accumulated OCI | Derivative (Amount Excluded | |||||||||||||||||||||||||||||||||
Relationships | (Effective Portion) | from Effectiveness Testing and | ||||||||||||||||||||||||||||||||||
Ineffective Portion) | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Commodity | $ | (34.1 | ) | $ | 35.1 | |||||||||||||||||||||||||||||||
Foreign currency | (65.5 | ) | (6.4 | ) | $ | (50.3 | ) | $ | (15.8 | ) | $ | (6.1 | ) | $ | (12.3 | ) | ||||||||||||||||||||
Interest rate(1) | — | (4.6 | ) | (0.4 | ) | 0.5 | — | — | ||||||||||||||||||||||||||||
Total | $ | (99.6 | ) | $ | 24.1 | $ | (50.7 | ) | $ | (15.3 | ) | $ | (6.1 | ) | $ | (12.3 | ) | |||||||||||||||||||
Gain (Loss) | Derivatives Not | Gain (Loss) | ||||||||||||||||||||||||||||||||||
Recognized in | Designated for | Recognized in | ||||||||||||||||||||||||||||||||||
Net Investment | Accumulated OCI | Hedge Accounting | Income | |||||||||||||||||||||||||||||||||
Hedging Relationships | (Effective Portion) | on Derivative | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||
Foreign currency denominated debt | $ | (382.8 | ) | $ | (61.7 | ) | Foreign currency | $ | (30.2 | ) | $ | (13.4 | ) | |||||||||||||||||||||||
Foreign currency derivatives | (18.4 | ) | (23.3 | ) | Equity(2) | 21.8 | (16.2 | ) | ||||||||||||||||||||||||||||
Total | $ | (401.2 | ) | $ | (85.0 | ) | Total | $ | (8.4 | ) | $ | (29.6 | ) | |||||||||||||||||||||||
Gains (losses) recognized in income on derivatives are recorded in Nonoperating (income) expense, net unless otherwise noted. | ||||||||||||||||||||||||||||||||||||
-1 | The amount of gain (loss) reclassified from accumulated OCI into income is recorded in Interest expense. | |||||||||||||||||||||||||||||||||||
-2 | The amount of gain (loss) recognized in income on the derivatives used to hedge the supplemental benefit plan liabilities is primarily recorded in Selling, general & administrative expenses. | |||||||||||||||||||||||||||||||||||
▪ | Fair Value Hedges | |||||||||||||||||||||||||||||||||||
The Company enters into fair value hedges to reduce the | ||||||||||||||||||||||||||||||||||||
exposure to changes in the fair values of certain liabilities. The Company's fair value hedges convert a portion of its fixed-rate debt into floating-rate debt by use of interest rate swaps. At December 31, 2013, $2.2 billion of the Company's outstanding fixed-rate debt was effectively converted. All of the Company’s interest rate swaps meet the shortcut method requirements. Accordingly, changes in the fair value of the interest rate swaps are exactly offset by changes in the fair value of the underlying debt. No ineffectiveness has been recorded to net income related to interest rate swaps designated as fair value hedges for the year ended December 31, 2013. | ||||||||||||||||||||||||||||||||||||
▪ | Cash Flow Hedges | |||||||||||||||||||||||||||||||||||
The Company enters into cash flow hedges to reduce the exposure to variability in certain expected future cash flows. The types of cash flow hedges the Company enters into include interest rate swaps, foreign currency forwards, foreign currency options and cross currency swaps. | ||||||||||||||||||||||||||||||||||||
The Company periodically uses interest rate swaps to effectively convert a portion of floating-rate debt, including forecasted debt issuances, into fixed-rate debt. The agreements are intended to reduce the impact of interest rate changes on future interest expense. | ||||||||||||||||||||||||||||||||||||
To protect against the reduction in value of forecasted foreign currency cash flows (such as royalties denominated in foreign currencies), the Company uses foreign currency forwards and foreign currency options to hedge a portion of anticipated exposures. | ||||||||||||||||||||||||||||||||||||
When the U.S. dollar strengthens against foreign currencies, the decline in value of future foreign denominated royalties is offset by gains in the fair value of the foreign currency forwards and/or foreign currency options. Conversely, when the U.S. dollar weakens, the increase in the value of future foreign denominated royalties is offset by losses in the fair value of the foreign currency forwards and/or foreign currency options. | ||||||||||||||||||||||||||||||||||||
Although the fair value changes in the foreign currency options may fluctuate over the period of the contract, the Company’s total loss on a foreign currency option is limited to the upfront premium paid for the contract; however, the potential gains on a foreign currency option are unlimited. In some situations, the Company uses foreign currency collars, which limit the potential gains and lower the upfront premium paid, to protect against currency movements. | ||||||||||||||||||||||||||||||||||||
The hedges cover the next 19 months for certain exposures and are denominated in various currencies. As of December 31, 2013, the Company had derivatives outstanding with an equivalent notional amount of $730.3 million that were used to hedge a portion of forecasted foreign currency denominated royalties. | ||||||||||||||||||||||||||||||||||||
The Company excludes the time value of foreign currency options from its effectiveness assessment on its cash flow hedges. As a result, changes in the fair value of the derivatives due to this component, as well as the ineffectiveness of the hedges, are recognized in earnings currently. The effective portion of the gains or losses on the derivatives is reported in the cash flow hedging component of OCI in shareholders’ equity and reclassified into earnings in the same period or periods in which the hedged transaction affects earnings. | ||||||||||||||||||||||||||||||||||||
The Company uses cross-currency swaps to hedge the risk of cash flows associated with certain foreign currency denominated debt, including forecasted interest payments, and has elected cash flow hedge accounting. The hedges cover periods up to 47 months and have an equivalent notional amount of $346.9 million. | ||||||||||||||||||||||||||||||||||||
The Company manages its exposure to energy-related transactions in certain markets by entering into purchase and sale agreements. Previously, some of these agreements were considered commodity forwards and the Company elected cash flow hedge accounting, the impact of which was immaterial. In 2013, the Company determined these transactions were now eligible for the normal purchase/normal sale scope exception, which meant no further derivative or hedge accounting was required. | ||||||||||||||||||||||||||||||||||||
The Company recorded after tax adjustments to the cash flow hedging component of accumulated OCI in shareholders’ equity. The Company recorded a net decrease of $37.5 million for the year ended December 31, 2013 and a net increase of $30.6 million for the year ended December 31, 2012. Based on interest rates and foreign exchange rates at December 31, 2013, the $2.3 million in cumulative cash flow hedging losses, after tax, at December 31, 2013, is not expected to have a significant effect on earnings over the next 12 months. | ||||||||||||||||||||||||||||||||||||
▪ | Net Investment Hedges | |||||||||||||||||||||||||||||||||||
The Company primarily uses foreign currency denominated debt (third party and intercompany) to hedge its investments in certain foreign subsidiaries and affiliates. Realized and unrealized translation adjustments from these hedges are included in shareholders’ equity in the foreign currency translation component of OCI and offset translation adjustments on the underlying net assets of foreign subsidiaries and affiliates, which also are recorded in OCI. As of December 31, 2013, $4.7 billion of the Company’s third party foreign currency denominated debt, $4.2 billion of intercompany foreign currency denominated debt, and $827.4 million of derivatives were designated to hedge investments in certain foreign subsidiaries and affiliates. | ||||||||||||||||||||||||||||||||||||
▪ | Credit Risk | |||||||||||||||||||||||||||||||||||
The Company is exposed to credit-related losses in the event of non-performance by the counterparties to its hedging instruments. The counterparties to these agreements consist of a diverse group of financial institutions and market participants. The Company continually monitors its positions and the credit ratings of its counterparties and adjusts positions as appropriate. The Company did not have significant exposure to any individual counterparty at December 31, 2013 and has master agreements that contain netting arrangements. For financial reporting purposes, the Company presents gross derivative balances in the financial statements and supplementary data, even for counterparties subject to netting arrangements. Some of these agreements also require each party to post collateral if credit ratings fall below, or aggregate exposures exceed, certain contractual limits. At December 31, 2013, neither the Company nor its counterparties were required to post collateral on any derivative position, other than on hedges of certain of the Company’s supplemental benefit plan liabilities where its counterparties were required to post collateral on their liability positions. | ||||||||||||||||||||||||||||||||||||
INCOME TAX UNCERTAINTIES | ' | |||||||||||||||||||||||||||||||||||
INCOME TAX UNCERTAINTIES | ||||||||||||||||||||||||||||||||||||
The Company, like other multi-national companies, is regularly audited by federal, state and foreign tax authorities, and tax assessments may arise several years after tax returns have been filed. Accordingly, tax liabilities are recorded when, in management’s judgment, a tax position does not meet the more likely than not threshold for recognition. For tax positions that meet the more likely than not threshold, a tax liability may still be recorded depending on management’s assessment of how the tax position will ultimately be settled. | ||||||||||||||||||||||||||||||||||||
The Company records interest and penalties on unrecognized tax benefits in the provision for income taxes. | ||||||||||||||||||||||||||||||||||||
PER COMMON SHARE INFORMATION | ' | |||||||||||||||||||||||||||||||||||
PER COMMON SHARE INFORMATION | ||||||||||||||||||||||||||||||||||||
Diluted earnings per common share is calculated using net income divided by diluted weighted-average shares. Diluted weighted-average shares include weighted-average shares outstanding plus the dilutive effect of share-based compensation calculated using the treasury stock method, of (in millions of shares): 2013–7.6; 2012–10.1; 2011–12.8. Stock options that were not included in diluted weighted-average shares because they would have been antidilutive were (in millions of shares): 2013–4.7; 2012–4.7; 2011–0.0. | ||||||||||||||||||||||||||||||||||||
The Company has elected to exclude the pro forma deferred tax asset associated with share-based compensation in earnings per share. | ||||||||||||||||||||||||||||||||||||
STATEMENT OF CASH FLOWS | ' | |||||||||||||||||||||||||||||||||||
STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||||||||||||||
The Company considers short-term, highly liquid investments with an original maturity of 90 days or less to be cash equivalents. | ||||||||||||||||||||||||||||||||||||
SUBSEQUENT EVENTS | ' | |||||||||||||||||||||||||||||||||||
SUBSEQUENT EVENTS | ||||||||||||||||||||||||||||||||||||
The Company evaluated subsequent events through the date the financial statements were issued and filed with the U.S. Securities and Exchange Commission ("SEC"). There were no subsequent events that required recognition or disclosure. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||||||||||||||||||||||
Restaurant Information by Ownership Type | ' | |||||||||||||||||||||||||||||||||||
The following table presents restaurant information by ownership type: | ||||||||||||||||||||||||||||||||||||
Restaurants at December 31, | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||
Conventional franchised | 20,355 | 19,869 | 19,527 | |||||||||||||||||||||||||||||||||
Developmental licensed | 4,747 | 4,350 | 3,929 | |||||||||||||||||||||||||||||||||
Foreign affiliated | 3,589 | 3,663 | 3,619 | |||||||||||||||||||||||||||||||||
Franchised | 28,691 | 27,882 | 27,075 | |||||||||||||||||||||||||||||||||
Company-operated | 6,738 | 6,598 | 6,435 | |||||||||||||||||||||||||||||||||
Systemwide restaurants | 35,429 | 34,480 | 33,510 | |||||||||||||||||||||||||||||||||
Share-Based Compensation Expense and Effect on Diluted Earnings Per Common Share | ' | |||||||||||||||||||||||||||||||||||
Share-based compensation expense and the effect on diluted earnings per common share were as follows: | ||||||||||||||||||||||||||||||||||||
In millions, except per share data | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||
Share-based compensation expense | $ | 89.1 | $ | 93.4 | $ | 86.2 | ||||||||||||||||||||||||||||||
After tax | $ | 60.6 | $ | 63.2 | $ | 59.2 | ||||||||||||||||||||||||||||||
Earnings per common share-diluted | $ | 0.06 | $ | 0.06 | $ | 0.05 | ||||||||||||||||||||||||||||||
Weighted-Average Assumptions | ' | |||||||||||||||||||||||||||||||||||
The following table presents the weighted-average assumptions used in the option pricing model for the 2013, 2012 and 2011 stock option grants. The expected life of the options represents the period of time the options are expected to be outstanding and is based on historical trends. Expected stock price volatility is generally based on the historical volatility of the Company’s stock for a period approximating the expected life. The expected dividend yield is based on the Company’s most recent annual dividend rate. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant with a term equal to the expected life. | ||||||||||||||||||||||||||||||||||||
Weighted-average assumptions | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
Expected dividend yield | 3.5 | % | 2.8 | % | 3.2 | % | ||||||||||||||||||||||||||||||
Expected stock price volatility | 20.6 | % | 20.8 | % | 21.5 | % | ||||||||||||||||||||||||||||||
Risk-free interest rate | 1.2 | % | 1.1 | % | 2.8 | % | ||||||||||||||||||||||||||||||
Expected life of options | 6.1 | 6.1 | 6.3 | |||||||||||||||||||||||||||||||||
(in years) | ||||||||||||||||||||||||||||||||||||
Fair value per option granted | $ | 11.09 | $ | 13.65 | $ | 12.18 | ||||||||||||||||||||||||||||||
Activity in Goodwill by Segment | ' | |||||||||||||||||||||||||||||||||||
The following table presents the 2013 activity in goodwill by segment: | ||||||||||||||||||||||||||||||||||||
In millions | U.S. | Europe | APMEA(1) | Other Countries | Consolidated | |||||||||||||||||||||||||||||||
& Corporate(2) | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 1,294.20 | $ | 881.4 | $ | 438.7 | $ | 189.7 | $ | 2,804.00 | ||||||||||||||||||||||||||
Net restaurant purchases (sales) | (0.6 | ) | 50.4 | 30.7 | 15.7 | 96.2 | ||||||||||||||||||||||||||||||
Currency translation | 26.3 | (40.7 | ) | (13.1 | ) | (27.5 | ) | |||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 1,293.60 | $ | 958.1 | $ | 428.7 | $ | 192.3 | $ | 2,872.70 | ||||||||||||||||||||||||||
-1 | APMEA represents Asia/Pacific, Middle East and Africa. | |||||||||||||||||||||||||||||||||||
-2 | Other Countries & Corporate represents Canada, Latin America and Corporate. | |||||||||||||||||||||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | |||||||||||||||||||||||||||||||||||
The following tables present financial assets and liabilities measured at fair value on a recurring basis by the valuation hierarchy as defined in the fair value guidance: | ||||||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||
In millions | Level 1* | Level 2 | Carrying | |||||||||||||||||||||||||||||||||
Value | ||||||||||||||||||||||||||||||||||||
Investments | $ | 27.6 | $ | 27.6 | ||||||||||||||||||||||||||||||||
Derivative assets | 128.2 | $ | 71.6 | 199.8 | ||||||||||||||||||||||||||||||||
Total assets at fair value | $ | 155.8 | $ | 71.6 | $ | 227.4 | ||||||||||||||||||||||||||||||
Derivative liabilities | $ | (179.3 | ) | $ | (179.3 | ) | ||||||||||||||||||||||||||||||
Total liabilities at fair value | $ | (179.3 | ) | $ | (179.3 | ) | ||||||||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||||||||||
In millions | Level 1* | Level 2 | Carrying | |||||||||||||||||||||||||||||||||
Value | ||||||||||||||||||||||||||||||||||||
Investments | $ | 155.1 | $ | 155.1 | ||||||||||||||||||||||||||||||||
Derivative assets | 132.3 | $ | 86.1 | 218.4 | ||||||||||||||||||||||||||||||||
Total assets at fair value | $ | 287.4 | $ | 86.1 | $ | 373.5 | ||||||||||||||||||||||||||||||
Derivative liabilities | $ | (42.6 | ) | $ | (42.6 | ) | ||||||||||||||||||||||||||||||
Total liabilities at fair value | $ | (42.6 | ) | $ | (42.6 | ) | ||||||||||||||||||||||||||||||
* | Level 1 is comprised of investments and derivatives that hedge market driven changes in liabilities associated with the Company’s supplemental benefit plans. | |||||||||||||||||||||||||||||||||||
Fair Values of Derivative Instruments Included on Consolidated Balance Sheet | ' | |||||||||||||||||||||||||||||||||||
The following table presents the fair values of derivative instruments included on the Consolidated balance sheet as of December 31, 2013 and 2012: | ||||||||||||||||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | |||||||||||||||||||||||||||||||||||
In millions | Balance Sheet Classification | 2013 | 2012 | Balance Sheet Classification | 2013 | 2012 | ||||||||||||||||||||||||||||||
Derivatives designated for hedge accounting | ||||||||||||||||||||||||||||||||||||
Foreign currency | Prepaid expenses and other current assets | $ | 28.3 | $ | 5 | Accrued payroll and other liabilities | $ | (28.8 | ) | $ | (3.5 | ) | ||||||||||||||||||||||||
Interest rate | Prepaid expenses and other current assets | — | 4.2 | |||||||||||||||||||||||||||||||||
Commodity | Miscellaneous other assets | — | 35.3 | Other long-term liabilities | — | (0.2 | ) | |||||||||||||||||||||||||||||
Foreign currency | Miscellaneous other assets | 2.5 | 2.5 | Other long-term liabilities | (114.7 | ) | (32.1 | ) | ||||||||||||||||||||||||||||
Interest rate | Miscellaneous other assets | 24.8 | 38.1 | Other long-term liabilities | (12.0 | ) | — | |||||||||||||||||||||||||||||
Total derivatives designated for hedge accounting | $ | 55.6 | $ | 85.1 | $ | (155.5 | ) | $ | (35.8 | ) | ||||||||||||||||||||||||||
Derivatives not designated for hedge accounting | ||||||||||||||||||||||||||||||||||||
Equity | Prepaid expenses and other current assets | $ | 6.7 | $ | 132.3 | |||||||||||||||||||||||||||||||
Foreign currency | Prepaid expenses and other current assets | 9.3 | 1 | Accrued payroll and other liabilities | $ | (23.8 | ) | $ | (6.8 | ) | ||||||||||||||||||||||||||
Equity | Miscellaneous other assets | 128.2 | — | |||||||||||||||||||||||||||||||||
Total derivatives not designated for hedge accounting | $ | 144.2 | $ | 133.3 | $ | (23.8 | ) | $ | (6.8 | ) | ||||||||||||||||||||||||||
Total derivatives | $ | 199.8 | $ | 218.4 | $ | (179.3 | ) | $ | (42.6 | ) | ||||||||||||||||||||||||||
Derivatives Pretax Amounts Affecting Income and Other Comprehensive Income | ' | |||||||||||||||||||||||||||||||||||
The following table presents the pretax amounts affecting income and OCI for the years ended December 31, 2013 and 2012, respectively: | ||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||
Derivatives in | Gain (Loss) | Hedged Items in | Gain (Loss) | |||||||||||||||||||||||||||||||||
Fair Value | Recognized in Income | Fair Value | Recognized in Income on | |||||||||||||||||||||||||||||||||
Hedging | on Derivative | Hedging | Related Hedged Items | |||||||||||||||||||||||||||||||||
Relationships | Relationships | |||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||
Interest rate | $ | (29.5 | ) | $ | (13.0 | ) | Fixed-rate debt | $ | 29.5 | $ | 13 | |||||||||||||||||||||||||
Derivatives in | Gain (Loss) Recognized in | Gain (Loss) | Gain (Loss) | |||||||||||||||||||||||||||||||||
Cash Flow | Accumulated OCI on Derivative | Reclassified into Income | Recognized in Income on | |||||||||||||||||||||||||||||||||
Hedging | (Effective Portion) | from Accumulated OCI | Derivative (Amount Excluded | |||||||||||||||||||||||||||||||||
Relationships | (Effective Portion) | from Effectiveness Testing and | ||||||||||||||||||||||||||||||||||
Ineffective Portion) | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Commodity | $ | (34.1 | ) | $ | 35.1 | |||||||||||||||||||||||||||||||
Foreign currency | (65.5 | ) | (6.4 | ) | $ | (50.3 | ) | $ | (15.8 | ) | $ | (6.1 | ) | $ | (12.3 | ) | ||||||||||||||||||||
Interest rate(1) | — | (4.6 | ) | (0.4 | ) | 0.5 | — | — | ||||||||||||||||||||||||||||
Total | $ | (99.6 | ) | $ | 24.1 | $ | (50.7 | ) | $ | (15.3 | ) | $ | (6.1 | ) | $ | (12.3 | ) | |||||||||||||||||||
Gain (Loss) | Derivatives Not | Gain (Loss) | ||||||||||||||||||||||||||||||||||
Recognized in | Designated for | Recognized in | ||||||||||||||||||||||||||||||||||
Net Investment | Accumulated OCI | Hedge Accounting | Income | |||||||||||||||||||||||||||||||||
Hedging Relationships | (Effective Portion) | on Derivative | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||
Foreign currency denominated debt | $ | (382.8 | ) | $ | (61.7 | ) | Foreign currency | $ | (30.2 | ) | $ | (13.4 | ) | |||||||||||||||||||||||
Foreign currency derivatives | (18.4 | ) | (23.3 | ) | Equity(2) | 21.8 | (16.2 | ) | ||||||||||||||||||||||||||||
Total | $ | (401.2 | ) | $ | (85.0 | ) | Total | $ | (8.4 | ) | $ | (29.6 | ) | |||||||||||||||||||||||
Gains (losses) recognized in income on derivatives are recorded in Nonoperating (income) expense, net unless otherwise noted. | ||||||||||||||||||||||||||||||||||||
-1 | The amount of gain (loss) reclassified from accumulated OCI into income is recorded in Interest expense. | |||||||||||||||||||||||||||||||||||
-2 | The amount of gain (loss) recognized in income on the derivatives used to hedge the supplemental benefit plan liabilities is primarily recorded in Selling, general & administrative expenses. |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Net Property and Equipment | ' | ||||||||
Net property and equipment consisted of: | |||||||||
In millions | December 31, 2013 | 2012 | |||||||
Land | $ | 5,849.30 | $ | 5,612.60 | |||||
Buildings and improvements | 14,715.60 | 14,089.00 | |||||||
on owned land | |||||||||
Buildings and improvements | 13,825.20 | 12,970.80 | |||||||
on leased land | |||||||||
Equipment, signs and | 5,376.80 | 5,241.00 | |||||||
seating | |||||||||
Other | 588.7 | 577.7 | |||||||
40,355.60 | 38,491.10 | ||||||||
Accumulated depreciation | (14,608.3 | ) | (13,813.9 | ) | |||||
and amortization | |||||||||
Net property and equipment | $ | 25,747.30 | $ | 24,677.20 | |||||
Other_Operating_Income_Expense1
Other Operating (Income) Expense, Net (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||
Other Operating (Income) Expense by Component | ' | |||||||||||
Other Operating (Income) Expense, Net | ||||||||||||
In millions | 2013 | 2012 | 2011 | |||||||||
Gains on sales of restaurant | $ | (199.4 | ) | $ | (151.5 | ) | $ | (81.8 | ) | |||
businesses | ||||||||||||
Equity in earnings of | (78.2 | ) | (143.5 | ) | (178.0 | ) | ||||||
unconsolidated affiliates | ||||||||||||
Asset dispositions and other | 30.4 | 51.5 | 23 | |||||||||
expense | ||||||||||||
Total | $ | (247.2 | ) | $ | (243.5 | ) | $ | (236.8 | ) |
Franchise_Arrangements_Tables
Franchise Arrangements (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Disclosure Franchise Arrangements Additional Information [Abstract] | ' | |||||||||||||
Revenues from Franchised Restaurants | ' | |||||||||||||
Revenues from franchised restaurants consisted of: | ||||||||||||||
In millions | 2013 | 2012 | 2011 | |||||||||||
Rents | $ | 6,054.40 | $ | 5,863.50 | $ | 5,718.50 | ||||||||
Royalties | 3,100.40 | 3,032.60 | 2,929.80 | |||||||||||
Initial fees | 76.7 | 68.4 | 64.9 | |||||||||||
Revenues from franchised | $ | 9,231.50 | $ | 8,964.50 | $ | 8,713.20 | ||||||||
restaurants | ||||||||||||||
Future Minimum Payments | ' | |||||||||||||
Future minimum rent payments due to the Company under existing franchise arrangements are: | ||||||||||||||
In millions | Owned sites | Leased sites | Total | |||||||||||
2014 | $ | 1,321.40 | $ | 1,381.80 | $ | 2,703.20 | ||||||||
2015 | 1,279.40 | 1,332.30 | 2,611.70 | |||||||||||
2016 | 1,228.50 | 1,278.20 | 2,506.70 | |||||||||||
2017 | 1,166.90 | 1,209.70 | 2,376.60 | |||||||||||
2018 | 1,121.90 | 1,138.60 | 2,260.50 | |||||||||||
Thereafter | 9,636.40 | 8,405.80 | 18,042.20 | |||||||||||
Total minimum payments | $ | 15,754.50 | $ | 14,746.40 | $ | 30,500.90 | ||||||||
Future minimum payments required under existing operating leases with initial terms of one year or more are: | ||||||||||||||
In millions | Restaurant | Other | Total | |||||||||||
2014 | $ | 1,361.50 | $ | 78.9 | $ | 1,440.40 | ||||||||
2015 | 1,266.30 | 67.5 | 1,333.80 | |||||||||||
2016 | 1,160.40 | 57.9 | 1,218.30 | |||||||||||
2017 | 1,051.40 | 47.4 | 1,098.80 | |||||||||||
2018 | 947.7 | 42 | 989.7 | |||||||||||
Thereafter | 7,444.90 | 187 | 7,631.90 | |||||||||||
Total minimum payments | $ | 13,232.20 | $ | 480.7 | $ | 13,712.90 | ||||||||
Leasing_Arrangements_Tables
Leasing Arrangements (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Leases [Abstract] | ' | |||||||||||||
Detail of Rent Expense | ' | |||||||||||||
The following table provides detail of rent expense: | ||||||||||||||
In millions | 2013 | 2012 | 2011 | |||||||||||
Company-operated | ||||||||||||||
restaurants: | ||||||||||||||
U.S. | $ | 61.6 | $ | 59.1 | $ | 55.9 | ||||||||
Outside the U.S. | 713.4 | 661 | 620.4 | |||||||||||
Total | 775 | 720.1 | 676.3 | |||||||||||
Franchised restaurants: | ||||||||||||||
U.S. | 441.6 | 433 | 420 | |||||||||||
Outside the U.S. | 572 | 519.7 | 514.7 | |||||||||||
Total | 1,013.60 | 952.7 | 934.7 | |||||||||||
Other | 104 | 104.2 | 101.7 | |||||||||||
Total rent expense | $ | 1,892.60 | $ | 1,777.00 | $ | 1,712.70 | ||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | ' | |||||||||||||
Future minimum rent payments due to the Company under existing franchise arrangements are: | ||||||||||||||
In millions | Owned sites | Leased sites | Total | |||||||||||
2014 | $ | 1,321.40 | $ | 1,381.80 | $ | 2,703.20 | ||||||||
2015 | 1,279.40 | 1,332.30 | 2,611.70 | |||||||||||
2016 | 1,228.50 | 1,278.20 | 2,506.70 | |||||||||||
2017 | 1,166.90 | 1,209.70 | 2,376.60 | |||||||||||
2018 | 1,121.90 | 1,138.60 | 2,260.50 | |||||||||||
Thereafter | 9,636.40 | 8,405.80 | 18,042.20 | |||||||||||
Total minimum payments | $ | 15,754.50 | $ | 14,746.40 | $ | 30,500.90 | ||||||||
Future minimum payments required under existing operating leases with initial terms of one year or more are: | ||||||||||||||
In millions | Restaurant | Other | Total | |||||||||||
2014 | $ | 1,361.50 | $ | 78.9 | $ | 1,440.40 | ||||||||
2015 | 1,266.30 | 67.5 | 1,333.80 | |||||||||||
2016 | 1,160.40 | 57.9 | 1,218.30 | |||||||||||
2017 | 1,051.40 | 47.4 | 1,098.80 | |||||||||||
2018 | 947.7 | 42 | 989.7 | |||||||||||
Thereafter | 7,444.90 | 187 | 7,631.90 | |||||||||||
Total minimum payments | $ | 13,232.20 | $ | 480.7 | $ | 13,712.90 | ||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income before Provision for Income Taxes, Classified by Source of Income | ' | |||||||||||
Income before provision for income taxes, classified by source of income, was as follows: | ||||||||||||
In millions | 2013 | 2012 | 2011 | |||||||||
U.S. | $ | 2,912.70 | $ | 2,879.70 | $ | 3,202.80 | ||||||
Outside the U.S. | 5,291.80 | 5,199.30 | 4,809.40 | |||||||||
Income before provision for | $ | 8,204.50 | $ | 8,079.00 | $ | 8,012.20 | ||||||
income taxes | ||||||||||||
Provision for Income Taxes, Classified by Timing and Location of Payment | ' | |||||||||||
The provision for income taxes, classified by the timing and location of payment, was as follows: | ||||||||||||
In millions | 2013 | 2012 | 2011 | |||||||||
U.S. federal | $ | 1,238.20 | $ | 1,129.90 | $ | 1,173.40 | ||||||
U.S. state | 175 | 189.8 | 165.2 | |||||||||
Outside the U.S. | 1,180.20 | 1,160.00 | 982.1 | |||||||||
Current tax provision | 2,593.40 | 2,479.70 | 2,320.70 | |||||||||
U.S. federal | 46.2 | 144.9 | 189 | |||||||||
U.S. state | (6.7 | ) | 5.5 | 8.6 | ||||||||
Outside the U.S. | (14.3 | ) | (15.9 | ) | (9.2 | ) | ||||||
Deferred tax provision | 25.2 | 134.5 | 188.4 | |||||||||
Provision for income taxes | $ | 2,618.60 | $ | 2,614.20 | $ | 2,509.10 | ||||||
Net Deferred Tax Liabilities | ' | |||||||||||
Net deferred tax liabilities consisted of: | ||||||||||||
In millions | December 31, 2013 | 2012 | ||||||||||
Property and equipment | $ | 1,812.40 | $ | 1,713.90 | ||||||||
Other | 639.8 | 636.4 | ||||||||||
Total deferred tax liabilities | 2,452.20 | 2,350.30 | ||||||||||
Property and equipment | (407.9 | ) | (403.6 | ) | ||||||||
Employee benefit plans | (388.9 | ) | (362.9 | ) | ||||||||
Intangible assets | (210.1 | ) | (258.0 | ) | ||||||||
Deferred foreign tax credits | (192.3 | ) | (179.5 | ) | ||||||||
Operating loss carryforwards | (154.0 | ) | (92.4 | ) | ||||||||
Other | (347.6 | ) | (319.4 | ) | ||||||||
Total deferred tax assets | (1,700.8 | ) | (1,615.8 | ) | ||||||||
before valuation allowance | ||||||||||||
Valuation allowance | 172.8 | 127 | ||||||||||
Net deferred tax liabilities | $ | 924.2 | $ | 861.5 | ||||||||
Balance sheet presentation: | ||||||||||||
Deferred income taxes | $ | 1,647.70 | $ | 1,531.10 | ||||||||
Other assets-miscellaneous | (621.4 | ) | (603.6 | ) | ||||||||
Current assets-prepaid expenses | (102.1 | ) | (66.0 | ) | ||||||||
and other current assets | ||||||||||||
Net deferred tax liabilities | $ | 924.2 | $ | 861.5 | ||||||||
Statutory U.S. Federal Income Tax Rate Reconciliation to Effective Income Tax Rates | ' | |||||||||||
The statutory U.S. federal income tax rate reconciles to the effective income tax rates as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Statutory U.S. federal income tax rate | 35 | % | 35 | % | 35 | % | ||||||
State income taxes, net of related | 1.3 | 1.6 | 1.4 | |||||||||
federal income tax benefit | ||||||||||||
Benefits and taxes related to foreign | (4.0 | ) | (4.1 | ) | (4.7 | ) | ||||||
operations | ||||||||||||
Other, net | (0.4 | ) | (0.1 | ) | (0.4 | ) | ||||||
Effective income tax rates | 31.9 | % | 32.4 | % | 31.3 | % | ||||||
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits | ' | |||||||||||
The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits: | ||||||||||||
In millions | 2013 | 2012 | ||||||||||
Balance at January 1 | $ | 482.4 | $ | 565 | ||||||||
Decreases for positions taken in prior years | (38.3 | ) | (65.7 | ) | ||||||||
Increases for positions taken in prior years | 29.4 | 36.9 | ||||||||||
Increases for positions related to the current | 53.8 | 47.3 | ||||||||||
year | ||||||||||||
Settlements with taxing authorities | (2.4 | ) | (95.8 | ) | ||||||||
Lapsing of statutes of limitations | (12.2 | ) | (5.3 | ) | ||||||||
Balance at December 31(1) | $ | 512.7 | $ | 482.4 | ||||||||
-1 | Of this amount, $495.1 million and $481.7 million are included in long-term liabilities for 2013 and 2012, respectively, and $16.8 million is included in current liabilities - income taxes for 2013 on the Consolidated balance sheet. The remainder is included in deferred income taxes on the Consolidated balance sheet. |
Segment_and_Geographic_Informa1
Segment and Geographic Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Revenues and Operating Income by Geographic Segment | ' | ||||||||||||
In millions | 2013 | 2012 | 2011 | ||||||||||
U.S. | $ | 8,851.30 | $ | 8,813.70 | $ | 8,528.20 | |||||||
Europe | 11,299.80 | 10,827.40 | 10,886.40 | ||||||||||
APMEA | 6,477.20 | 6,391.10 | 6,019.50 | ||||||||||
Other Countries & | 1,477.40 | 1,534.80 | 1,571.90 | ||||||||||
Corporate | |||||||||||||
Total revenues | $ | 28,105.70 | $ | 27,567.00 | $ | 27,006.00 | |||||||
U.S. | $ | 3,779.30 | $ | 3,750.40 | $ | 3,666.20 | |||||||
Europe | 3,370.60 | 3,195.80 | 3,226.70 | ||||||||||
APMEA | 1,479.70 | 1,566.10 | 1,525.80 | ||||||||||
Other Countries & | 134.7 | 92.3 | 111 | ||||||||||
Corporate | |||||||||||||
Total operating income | $ | 8,764.30 | $ | 8,604.60 | $ | 8,529.70 | |||||||
U.S. | $ | 11,711.80 | $ | 11,431.60 | $ | 10,865.50 | |||||||
Europe | 15,096.30 | 14,223.30 | 12,015.10 | ||||||||||
APMEA | 6,202.70 | 6,419.30 | 5,824.20 | ||||||||||
Other Countries & | 3,615.50 | 3,312.30 | 4,285.10 | ||||||||||
Corporate | |||||||||||||
Total assets | $ | 36,626.30 | $ | 35,386.50 | $ | 32,989.90 | |||||||
U.S. | $ | 875.5 | $ | 1,065.00 | $ | 786.5 | |||||||
Europe | 1,157.30 | 1,114.70 | 1,130.10 | ||||||||||
APMEA | 654.6 | 716.6 | 614.1 | ||||||||||
Other Countries & | 137.3 | 152.9 | 199.1 | ||||||||||
Corporate | |||||||||||||
Total capital expenditures | $ | 2,824.70 | $ | 3,049.20 | $ | 2,729.80 | |||||||
U.S. | $ | 503.6 | $ | 477.1 | $ | 446 | |||||||
Europe | 627.1 | 573.5 | 570.3 | ||||||||||
APMEA | 319.2 | 296.2 | 267.5 | ||||||||||
Other Countries & | 135.2 | 141.7 | 131.2 | ||||||||||
Corporate | |||||||||||||
Total depreciation and amortization | $ | 1,585.10 | $ | 1,488.50 | $ | 1,415.00 | |||||||
Debt_Financing_Tables
Debt Financing (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||
Summary of Debt Obligations | ' | ||||||||||||||||
The following table summarizes the Company’s debt obligations (interest rates and debt amounts reflected in the table include the effects of interest rate swaps). | |||||||||||||||||
Interest rates(1) | Amounts outstanding | ||||||||||||||||
December 31 | December 31 | ||||||||||||||||
In millions of U.S. Dollars | Maturity dates | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Fixed | 4.6 | % | 4.8 | % | $ | 6,460.60 | $ | 7,075.70 | |||||||||
Floating | 3.2 | 1.2 | 1,900.00 | 1,650.00 | |||||||||||||
Total U.S. Dollars | 2014-2043 | 8,360.60 | 8,725.70 | ||||||||||||||
Fixed | 3.3 | 3.7 | 2,884.90 | 1,847.20 | |||||||||||||
Floating | 2.8 | 2.9 | 357.2 | 348 | |||||||||||||
Total Euro | 2014-2025 | 3,242.10 | 2,195.20 | ||||||||||||||
Fixed | 2.9 | 2.9 | 118.7 | 144.2 | |||||||||||||
Floating | 0.4 | 0.4 | 759.8 | 923.3 | |||||||||||||
Total Japanese Yen | 2014-2030 | 878.5 | 1,067.50 | ||||||||||||||
Total British Pounds Sterling-Fixed | 2020-2032 | 6 | 6 | 744.3 | 730.1 | ||||||||||||
Fixed | — | 3 | — | 32.1 | |||||||||||||
Floating | 5.4 | 5.6 | 525.1 | 470.8 | |||||||||||||
Total Chinese Renminbi | 2014 | 525.1 | 502.9 | ||||||||||||||
Fixed | 1.9 | 1.9 | 281 | 273.3 | |||||||||||||
Floating | 3.6 | 4.4 | 85.4 | 95.5 | |||||||||||||
Total other currencies(2) | 2014-2021 | 366.4 | 368.8 | ||||||||||||||
Debt obligations before fair value adjustments(3) | 14,117.00 | 13,590.20 | |||||||||||||||
Fair value adjustments(4) | 12.8 | 42.3 | |||||||||||||||
Total debt obligations(5) | $ | 14,129.80 | $ | 13,632.50 | |||||||||||||
-1 | Weighted-average effective rate, computed on a semi-annual basis. | ||||||||||||||||
-2 | Primarily consists of Swiss Francs and Korean Won. | ||||||||||||||||
-3 | Aggregate maturities for 2013 debt balances, before fair value adjustments, were as follows (in millions): 2014–$0.0; 2015–$1,199.2; 2016–$2,094.6; 2017–$1,054.2; 2018–$1,003.9; Thereafter–$8,765.1. These amounts include a reclassification of short-term obligations totaling $1.2 billion to long-term obligations as they are supported by a long-term line of credit agreement expiring in November 2016. | ||||||||||||||||
-4 | The carrying value of underlying items in fair value hedges, in this case debt obligations, are adjusted for fair value changes to the extent they are attributable to the risk designated as being hedged. The related hedging instrument is also recorded at fair value in prepaid expenses and other current assets, miscellaneous other assets or other long-term liabilities. | ||||||||||||||||
-5 | The increase in debt obligations from December 31, 2012 to December 31, 2013 was primarily due to net issuances of $0.5 billion. |
Sharebased_Compensation_Tables
Share-based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||||||||||
Summary of Stock Option Grants | ' | ||||||||||||||||||||||||||||||
A summary of the status of the Company’s stock option grants as of December 31, 2013, 2012 and 2011, and changes during the years then ended, is presented in the following table: | |||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||
Options | Shares in | Weighted- | Weighted- | Aggregate | Shares in | Weighted- | Shares in | Weighted- | |||||||||||||||||||||||
millions | average | average | intrinsic | millions | average | millions | average | ||||||||||||||||||||||||
exercise | remaining | value in | exercise | exercise | |||||||||||||||||||||||||||
price | contractual | millions | price | price | |||||||||||||||||||||||||||
life in years | |||||||||||||||||||||||||||||||
Outstanding at beginning of year | 27.4 | $ | 59.86 | 31.7 | $ | 47.77 | 37.4 | $ | 42.47 | ||||||||||||||||||||||
Granted | 3.7 | 94.36 | 4.9 | 99.63 | 3.9 | 75.97 | |||||||||||||||||||||||||
Exercised | (5.7 | ) | 40.12 | (8.6 | ) | 38.51 | (9.0 | ) | 37.46 | ||||||||||||||||||||||
Forfeited/expired | (0.3 | ) | 79.15 | (0.6 | ) | 55.28 | (0.6 | ) | 55 | ||||||||||||||||||||||
Outstanding at end of year | 25.1 | $ | 69.15 | 5.9 | $ | 713.7 | 27.4 | $ | 59.86 | 31.7 | $ | 47.77 | |||||||||||||||||||
Exercisable at end of year | 15.6 | $ | 56.43 | 4.5 | $ | 638.6 | 17.1 | 21.9 | |||||||||||||||||||||||
Summary of Restricted Stock Unit Activity | ' | ||||||||||||||||||||||||||||||
A summary of the Company’s RSU activity during the years ended December 31, 2013, 2012 and 2011 is presented in the following table: | |||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||
RSUs | Shares in | Weighted- | Shares in | Weighted- | Shares in | Weighted- | |||||||||||||||||||||||||
millions | average | millions | average | millions | average | ||||||||||||||||||||||||||
grant date | grant date | grant date | |||||||||||||||||||||||||||||
fair value | fair value | fair value | |||||||||||||||||||||||||||||
Nonvested at beginning of year | 1.8 | $ | 68.23 | 2.1 | $ | 56.78 | 2.3 | $ | 51.17 | ||||||||||||||||||||||
Granted | 1 | 83.98 | 0.5 | 90.34 | 0.6 | 67.96 | |||||||||||||||||||||||||
Vested | (0.7 | ) | 56.93 | (0.8 | ) | 50.69 | (0.7 | ) | 49.88 | ||||||||||||||||||||||
Forfeited | (0.1 | ) | 82.44 | 0 | 68.72 | (0.1 | ) | 50.16 | |||||||||||||||||||||||
Nonvested at end of year | 2 | $ | 78.89 | 1.8 | $ | 68.23 | 2.1 | $ | 56.78 | ||||||||||||||||||||||
Quarterly_Results_Unaudited_Ta
Quarterly Results (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||||||
Quarterly Results | ' | |||||||||||||||||||||||||||||||||||
Quarterly Results (Unaudited) | ||||||||||||||||||||||||||||||||||||
Quarters ended | Quarters ended | Quarters ended | Quarters ended | |||||||||||||||||||||||||||||||||
December 31 | September 30 | June 30 | March 31 | |||||||||||||||||||||||||||||||||
In millions, except per share data | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||
Sales by Company-operated | $ | 4,744.30 | $ | 4,658.40 | $ | 4,923.10 | $ | 4,838.40 | $ | 4,761.40 | $ | 4,673.50 | $ | 4,445.40 | $ | 4,432.20 | ||||||||||||||||||||
restaurants | ||||||||||||||||||||||||||||||||||||
Revenues from franchised | 2,348.90 | 2,293.70 | 2,400.30 | 2,314.00 | 2,322.40 | 2,242.40 | 2,159.90 | 2,114.40 | ||||||||||||||||||||||||||||
restaurants | ||||||||||||||||||||||||||||||||||||
Total revenues | 7,093.20 | 6,952.10 | 7,323.40 | 7,152.40 | 7,083.80 | 6,915.90 | 6,605.30 | 6,546.60 | ||||||||||||||||||||||||||||
Company-operated margin | 815.6 | 827.3 | 918.7 | 924 | 841.9 | 849.7 | 719.4 | 777.8 | ||||||||||||||||||||||||||||
Franchised margin | 1,927.20 | 1,901.00 | 1,991.90 | 1,930.60 | 1,923.30 | 1,866.20 | 1,764.70 | 1,739.70 | ||||||||||||||||||||||||||||
Operating income | 2,200.40 | 2,197.80 | 2,416.70 | 2,287.20 | 2,197.70 | 2,155.00 | 1,949.50 | 1,964.60 | ||||||||||||||||||||||||||||
Net income | $ | 1,397.00 | $ | 1,396.10 | $ | 1,522.20 | $ | 1,455.00 | $ | 1,396.50 | $ | 1,347.00 | $ | 1,270.20 | $ | 1,266.70 | ||||||||||||||||||||
Earnings per common | $ | 1.41 | $ | 1.39 | $ | 1.53 | $ | 1.45 | $ | 1.39 | $ | 1.33 | $ | 1.27 | $ | 1.24 | ||||||||||||||||||||
share—basic | ||||||||||||||||||||||||||||||||||||
Earnings per common | $ | 1.4 | $ | 1.38 | $ | 1.52 | $ | 1.43 | $ | 1.38 | $ | 1.32 | $ | 1.26 | $ | 1.23 | ||||||||||||||||||||
share—diluted | ||||||||||||||||||||||||||||||||||||
Dividends declared per | $ | 1.58 | (1) | $ | 1.47 | (2) | $ | 0.77 | $ | 0.7 | $ | 0.77 | $ | 0.7 | ||||||||||||||||||||||
common share | ||||||||||||||||||||||||||||||||||||
Weighted-average | 992.5 | 1,002.40 | 997.3 | 1,006.10 | 1,001.40 | 1,013.80 | 1,002.70 | 1,018.20 | ||||||||||||||||||||||||||||
common shares—basic | ||||||||||||||||||||||||||||||||||||
Weighted-average | 999.3 | 1,010.70 | 1,004.20 | 1,015.40 | 1,008.70 | 1,023.90 | 1,010.80 | 1,030.00 | ||||||||||||||||||||||||||||
common shares—diluted | ||||||||||||||||||||||||||||||||||||
Market price per common | ||||||||||||||||||||||||||||||||||||
share: | ||||||||||||||||||||||||||||||||||||
High | $ | 99.27 | $ | 94.16 | $ | 101.81 | $ | 94 | $ | 103.7 | $ | 99.5 | $ | 99.78 | $ | 102.22 | ||||||||||||||||||||
Low | 93.14 | 83.31 | 94.01 | 86.15 | 95.16 | 85.92 | 89.25 | 95.13 | ||||||||||||||||||||||||||||
Close | 97.03 | 88.21 | 96.21 | 91.75 | 99 | 88.53 | 99.69 | 98.1 | ||||||||||||||||||||||||||||
-1 | Includes a $0.77 per share dividend declared and paid in third quarter and a $0.81 per share dividend declared in third quarter and paid in fourth quarter. | |||||||||||||||||||||||||||||||||||
-2 | Includes a $0.70 per share dividend declared and paid in third quarter and a $0.77 per share dividend declared in third quarter and paid in fourth quarter. |
Restaurant_Information_by_Owne
Restaurant Information by Ownership Type (Detail) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restaurant | Restaurant | Restaurant | |
Segment Reporting Information [Line Items] | ' | ' | ' |
Number of Restaurants | 35,429 | 34,480 | 33,510 |
Franchised restaurants: | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Number of Restaurants | 28,691 | 27,882 | 27,075 |
Company-operated restaurants: | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Number of Restaurants | 6,738 | 6,598 | 6,435 |
Conventional franchised | Franchised restaurants: | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Number of Restaurants | 20,355 | 19,869 | 19,527 |
Developmental licensed | Franchised restaurants: | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Number of Restaurants | 4,747 | 4,350 | 3,929 |
Affiliated | Franchised restaurants: | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Number of Restaurants | 3,589 | 3,663 | 3,619 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Share data in Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Derivative, Notional Amount | $827,400,000 | ' | ' |
Advertising costs of Company-operated restaurants | 808,400,000 | 787,500,000 | 768,600,000 |
Other marketing-related expenses | 75,400,000 | 113,500,000 | 74,400,000 |
Dilutive effect of share-based compensation | 7.6 | 10.1 | 12.8 |
Stock options that were not included in diluted weighted-average shares | 4.7 | 4.7 | 0 |
Unrecognized compensation cost related to nonvested share-based compensation that is expected to be recognized | 109,000,000 | ' | ' |
Weighted-average expected recognition period for unrecognized share-based compensation costs | '2 years | ' | ' |
Goodwill impairment test period | '24 months | ' | ' |
Long lived assets impairment test period | '24 months | ' | ' |
Debt obligations, carrying amount | 14,100,000,000 | ' | ' |
Net increase (decrease) after-tax related to the cash flow hedges component of accumulate OCI in shareholders' equity | -37,500,000 | 30,600,000 | -10,400,000 |
Cumulative deferred hedging losses, after tax, included in accumulated other comprehensive income | 2,300,000 | ' | ' |
Level 2 | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Debt obligations, fair value | 15,000,000,000 | ' | ' |
Interest Rate Swap | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Derivative, Notional Amount | 2,200,000,000 | ' | ' |
Royalty Arrangement | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Derivative, Notional Amount | 730,300,000 | ' | ' |
Period covered by hedge | '19 months | ' | ' |
Cross Currency Swap | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Derivative, Notional Amount | 346,900,000 | ' | ' |
Period covered by hedge | '47 months | ' | ' |
Building [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property and equipment, estimated useful life maximum | '40 years | ' | ' |
Leasehold Improvements [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property and equipment, estimated useful life | 'the lesser of useful lives of assets or lease terms | ' | ' |
Minimum | Equipment [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property and equipment, estimated useful life maximum | '3 years | ' | ' |
Maximum | Equipment [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property and equipment, estimated useful life maximum | '12 years | ' | ' |
Intercompany Debt [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Forgein currency denominated debt designated to hedge investments in certain foreign subsidiaries and affiliates | 4,200,000,000 | ' | ' |
Debt [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Forgein currency denominated debt designated to hedge investments in certain foreign subsidiaries and affiliates | $4,700,000,000 | ' | ' |
ShareBased_Compensation_Expens
Share-Based Compensation Expense and Effect on Diluted Earnings Per Common Share (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accounting Policies [Abstract] | ' | ' | ' |
Share-based compensation expense | $89.10 | $93.40 | $86.20 |
After tax | $60.60 | $63.20 | $59.20 |
Earnings per common share-diluted | $0.06 | $0.06 | $0.05 |
WeightedAverage_Assumptions_De
Weighted-Average Assumptions (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Accounting Policies [Abstract] | ' | ' | ' |
Expected dividend yield | 3.50% | 2.80% | 3.20% |
Expected stock price volatility | 20.60% | 20.80% | 21.50% |
Risk-free interest rate | 1.20% | 1.10% | 2.80% |
Expected life of options In years | '6 years 1 month 6 days | '6 years 1 month 6 days | '6 years 3 months 18 days |
Fair value per option granted | $11.09 | $13.65 | $12.18 |
Activity_in_Goodwill_by_Segmen
Activity in Goodwill by Segment (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | |
Goodwill [Line Items] | ' | |
Goodwill, beginning balance | $2,804 | |
Goodwill, period increase (decrease) | 96.2 | |
Goodwill, ending balance | 2,872.70 | |
U.S. | ' | |
Goodwill [Line Items] | ' | |
Goodwill, beginning balance | 1,294.20 | |
Goodwill, period increase (decrease) | -0.6 | |
Goodwill, ending balance | 1,293.60 | |
Europe | ' | |
Goodwill [Line Items] | ' | |
Goodwill, beginning balance | 881.4 | |
Goodwill, period increase (decrease) | 50.4 | |
Goodwill, ending balance | 958.1 | |
APMEA | ' | |
Goodwill [Line Items] | ' | |
Goodwill, beginning balance | 438.7 | [1] |
Goodwill, period increase (decrease) | 30.7 | [1] |
Goodwill, ending balance | 428.7 | [1] |
Other Countries & Corporate | ' | |
Goodwill [Line Items] | ' | |
Goodwill, beginning balance | 189.7 | [2] |
Goodwill, period increase (decrease) | 15.7 | [2] |
Goodwill, ending balance | 192.3 | [2] |
Currency Translation Adjustments | ' | |
Goodwill [Line Items] | ' | |
Goodwill, period increase (decrease) | -27.5 | |
Currency Translation Adjustments | Europe | ' | |
Goodwill [Line Items] | ' | |
Goodwill, period increase (decrease) | 26.3 | |
Currency Translation Adjustments | APMEA | ' | |
Goodwill [Line Items] | ' | |
Goodwill, period increase (decrease) | -40.7 | [1] |
Currency Translation Adjustments | Other Countries & Corporate | ' | |
Goodwill [Line Items] | ' | |
Goodwill, period increase (decrease) | ($13.10) | [2] |
[1] | APMEA represents Asia/Pacific, Middle East and Africa. | |
[2] | Other Countries & Corporate represents Canada, Latin America and Corporate. |
Financial_Assets_and_Liabiliti
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Investments | $27.60 | $155.10 |
Derivative assets | 199.8 | 218.4 |
Total assets at fair value | 227.4 | 373.5 |
Derivative payables | -179.3 | -42.6 |
Total liabilities at fair value | -179.3 | -42.6 |
Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Investments | 27.6 | 155.1 |
Derivative assets | 128.2 | 132.3 |
Total assets at fair value | 155.8 | 287.4 |
Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Derivative assets | 71.6 | 86.1 |
Total assets at fair value | 71.6 | 86.1 |
Derivative payables | -179.3 | -42.6 |
Total liabilities at fair value | ($179.30) | ($42.60) |
Fair_Values_of_Derivative_Inst
Fair Values of Derivative Instruments Included on Consolidated Balance Sheet (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives Fair Value | $199.80 | $218.40 |
Liability Derivatives Fair Value | -179.3 | -42.6 |
Designated as Hedging Instrument | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives Fair Value | 55.6 | 85.1 |
Liability Derivatives Fair Value | -155.5 | -35.8 |
Derivatives Not Designated as Hedging Instruments | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives Fair Value | 144.2 | 133.3 |
Liability Derivatives Fair Value | -23.8 | -6.8 |
Foreign currency | Prepaid expenses and other current assets | Designated as Hedging Instrument | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives Fair Value | 28.3 | 5 |
Foreign currency | Prepaid expenses and other current assets | Derivatives Not Designated as Hedging Instruments | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives Fair Value | 9.3 | 1 |
Foreign currency | Accrued payroll and other liabilities | Designated as Hedging Instrument | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability Derivatives Fair Value | -28.8 | -3.5 |
Foreign currency | Accrued payroll and other liabilities | Derivatives Not Designated as Hedging Instruments | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability Derivatives Fair Value | -23.8 | -6.8 |
Foreign currency | Miscellaneous other assets | Designated as Hedging Instrument | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives Fair Value | 2.5 | 2.5 |
Foreign currency | Other long- term liabilities | Designated as Hedging Instrument | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability Derivatives Fair Value | -114.7 | -32.1 |
Interest rate | Prepaid expenses and other current assets | Designated as Hedging Instrument | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives Fair Value | 0 | 4.2 |
Interest rate | Miscellaneous other assets | Designated as Hedging Instrument | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives Fair Value | 24.8 | 38.1 |
Interest rate | Other long- term liabilities | Designated as Hedging Instrument | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability Derivatives Fair Value | -12 | 0 |
Commodity | Miscellaneous other assets | Designated as Hedging Instrument | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives Fair Value | 0 | 35.3 |
Commodity | Other long- term liabilities | Designated as Hedging Instrument | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability Derivatives Fair Value | 0 | -0.2 |
Equity | Prepaid expenses and other current assets | Derivatives Not Designated as Hedging Instruments | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives Fair Value | 6.7 | 132.3 |
Equity | Miscellaneous other assets | Derivatives Not Designated as Hedging Instruments | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives Fair Value | $128.20 | $0 |
Derivatives_Pretax_Amounts_Aff
Derivatives Pretax Amounts Affecting Income and Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Derivatives in Cash Flow Hedging Relationships | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Gain (Loss) Recognized in Accumulated OCI on Derivative (Effective Portion) | ($99.60) | $24.10 | ||
Gain (Loss) Reclassified into Income from Accumulated OCI (Effective Portion) | -50.7 | -15.3 | ||
Gain (Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing and Ineffective Portion) | -6.1 | -12.3 | ||
Net Investment Hedging Relationships | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Gain (Loss) Recognized in Accumulated OCI on Derivative (Effective Portion) | -401.2 | -85 | ||
Derivatives Not Designated as Hedging Instruments | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Gain (Loss) Recognized in Income on Derivative | -8.4 | -29.6 | ||
Interest rate | Derivatives in Fair Value Hedging Relationships | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Gain (Loss) Recognized in Income on Derivative | -29.5 | -13 | ||
Gain (Loss) Recognized in Income on Related Hedged Items | 29.5 | 13 | ||
Interest rate | Derivatives in Cash Flow Hedging Relationships | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Gain (Loss) Recognized in Accumulated OCI on Derivative (Effective Portion) | 0 | [1] | -4.6 | [1] |
Gain (Loss) Reclassified into Income from Accumulated OCI (Effective Portion) | -0.4 | [1] | 0.5 | [1] |
Gain (Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing and Ineffective Portion) | 0 | [1] | 0 | [1] |
Foreign currency denominated debt | Net Investment Hedging Relationships | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Gain (Loss) Recognized in Accumulated OCI on Derivative (Effective Portion) | -382.8 | -61.7 | ||
Commodity | Derivatives in Cash Flow Hedging Relationships | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Gain (Loss) Recognized in Accumulated OCI on Derivative (Effective Portion) | -34.1 | 35.1 | ||
Foreign currency | Derivatives in Cash Flow Hedging Relationships | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Gain (Loss) Recognized in Accumulated OCI on Derivative (Effective Portion) | -65.5 | -6.4 | ||
Gain (Loss) Reclassified into Income from Accumulated OCI (Effective Portion) | -50.3 | -15.8 | ||
Gain (Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing and Ineffective Portion) | -6.1 | -12.3 | ||
Foreign currency | Derivatives Not Designated as Hedging Instruments | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Gain (Loss) Recognized in Income on Derivative | -30.2 | -13.4 | ||
Foreign currency derivatives | Net Investment Hedging Relationships | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Gain (Loss) Recognized in Accumulated OCI on Derivative (Effective Portion) | -18.4 | [2] | -23.3 | [2] |
Equity | Derivatives Not Designated as Hedging Instruments | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Gain (Loss) Recognized in Income on Derivative | $21.80 | [3] | ($16.20) | [3] |
[1] | The amount of gain (loss) reclassified from accumulated OCI into income is recorded in Interest expense. | |||
[2] | The amount of gain (loss) reclassified from accumulated OCI into income is recorded in Impairment and other charges (credits), net. | |||
[3] | The amount of gain (loss) recognized in income on the derivatives used to hedge the supplemental benefit plan liabilities is recorded in Selling, general & administrative expenses. |
Net_Property_and_Equipment_Det
Net Property and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Land | $5,849.30 | $5,612.60 |
Buildings and improvements on owned land | 14,715.60 | 14,089 |
Buildings and improvements on leased land | 13,825.20 | 12,970.80 |
Equipment, signs and seating | 5,376.80 | 5,241 |
Other | 588.7 | 577.7 |
Property and equipment, at cost | 40,355.60 | 38,491.10 |
Accumulated depreciation and amortization | -14,608.30 | -13,813.90 |
Net property and equipment | $25,747.30 | $24,677.20 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Abstract] | ' | ' | ' |
Depreciation | $1,498.80 | $1,402.20 | $1,329.60 |
Other_Operating_Income_Expense2
Other Operating (Income) Expenses by Component (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Income and Expenses [Abstract] | ' | ' | ' |
Gains on sales of restaurant businesses | ($199.40) | ($151.50) | ($81.80) |
Equity in earnings of unconsolidated affiliates | -78.2 | -143.5 | -178 |
Asset dispositions and other expense | 30.4 | 51.5 | 23 |
Total | ($247.20) | ($243.50) | ($236.80) |
Franchise_Arrangements_Additio
Franchise Arrangements - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Franchisor Disclosure [Line Items] | ' | ' |
Franchise arrangement period | '20 years | ' |
Net property and equipment | $25,747.30 | $24,677.20 |
Land | 5,849.30 | 5,612.60 |
Accumulated depreciation and amortization of property and equipment | 14,608.30 | 13,813.90 |
Franchise Arrangements | ' | ' |
Franchisor Disclosure [Line Items] | ' | ' |
Net property and equipment | 15,500 | ' |
Land | 4,400 | ' |
Accumulated depreciation and amortization of property and equipment | $8,100 | ' |
Revenues_from_Franchised_Resta
Revenues from Franchised Restaurants (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Disclosure Franchise Arrangements Additional Information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rents | ' | ' | ' | ' | ' | ' | ' | ' | $6,054.40 | $5,863.50 | $5,718.50 |
Royalties | ' | ' | ' | ' | ' | ' | ' | ' | 3,100.40 | 3,032.60 | 2,929.80 |
Initial fees | ' | ' | ' | ' | ' | ' | ' | ' | 76.7 | 68.4 | 64.9 |
Revenues from franchised restaurants | $2,348.90 | $2,400.30 | $2,322.40 | $2,159.90 | $2,293.70 | $2,314 | $2,242.40 | $2,114.40 | $9,231.50 | $8,964.50 | $8,713.20 |
Future_Minimum_Rent_Payment_du
Future Minimum Rent Payment due to Company under Existing Franchise Arrangements (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Leases Disclosure [Line Items] | ' |
2014 | $2,703.20 |
2015 | 2,611.70 |
2016 | 2,506.70 |
2017 | 2,376.60 |
2018 | 2,260.50 |
Thereafter | 18,042.20 |
Total minimum payments | 30,500.90 |
Owned sites | ' |
Leases Disclosure [Line Items] | ' |
2014 | 1,321.40 |
2015 | 1,279.40 |
2016 | 1,228.50 |
2017 | 1,166.90 |
2018 | 1,121.90 |
Thereafter | 9,636.40 |
Total minimum payments | 15,754.50 |
Leased sites | ' |
Leases Disclosure [Line Items] | ' |
2014 | 1,381.80 |
2015 | 1,332.30 |
2016 | 1,278.20 |
2017 | 1,209.70 |
2018 | 1,138.60 |
Thereafter | 8,405.80 |
Total minimum payments | $14,746.40 |
Leasing_Arrangements_Additiona
Leasing Arrangements - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restaurant | Restaurant | Restaurant | |
Operating Leased Assets [Line Items] | ' | ' | ' |
Number of Restaurants | 35,429 | 34,480 | 33,510 |
Lease term | '20 years | ' | ' |
Company-operated restaurants: | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' |
Number of Restaurants | 6,738 | 6,598 | 6,435 |
Rents in excess of minimum rents | $175.60 | $169.60 | $165.20 |
Franchised restaurants: | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' |
Number of Restaurants | 28,691 | 27,882 | 27,075 |
Rents in excess of minimum rents | $187.40 | $178.70 | $173.40 |
Ground Leases | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' |
Number of Restaurants | 14,815 | ' | ' |
Minimum | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' |
Escalation timing | '1 year | ' | ' |
Maximum | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' |
Escalation timing | '5 years | ' | ' |
Future_Minimum_Payments_Requir
Future Minimum Payments Required under Existing Operating Leases (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Leases Disclosure [Line Items] | ' |
2014 | $1,440.40 |
2015 | 1,333.80 |
2016 | 1,218.30 |
2017 | 1,098.80 |
2018 | 989.7 |
Thereafter | 7,631.90 |
Total minimum payments | 13,712.90 |
Restaurant | ' |
Leases Disclosure [Line Items] | ' |
2014 | 1,361.50 |
2015 | 1,266.30 |
2016 | 1,160.40 |
2017 | 1,051.40 |
2018 | 947.7 |
Thereafter | 7,444.90 |
Total minimum payments | 13,232.20 |
Other | ' |
Leases Disclosure [Line Items] | ' |
2014 | 78.9 |
2015 | 67.5 |
2016 | 57.9 |
2017 | 47.4 |
2018 | 42 |
Thereafter | 187 |
Total minimum payments | $480.70 |
Detail_of_Rent_Expense_Detail
Detail of Rent Expense (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Leases Disclosure [Line Items] | ' | ' | ' |
Rent Expense | $1,892.60 | $1,777 | $1,712.70 |
Company-operated restaurants: | ' | ' | ' |
Leases Disclosure [Line Items] | ' | ' | ' |
Rent Expense | 775 | 720.1 | 676.3 |
Franchised restaurants: | ' | ' | ' |
Leases Disclosure [Line Items] | ' | ' | ' |
Rent Expense | 1,013.60 | 952.7 | 934.7 |
Other | ' | ' | ' |
Leases Disclosure [Line Items] | ' | ' | ' |
Rent Expense | 104 | 104.2 | 101.7 |
U.S. | Company-operated restaurants: | ' | ' | ' |
Leases Disclosure [Line Items] | ' | ' | ' |
Rent Expense | 61.6 | 59.1 | 55.9 |
U.S. | Franchised restaurants: | ' | ' | ' |
Leases Disclosure [Line Items] | ' | ' | ' |
Rent Expense | 441.6 | 433 | 420 |
Outside the U.S. | Company-operated restaurants: | ' | ' | ' |
Leases Disclosure [Line Items] | ' | ' | ' |
Rent Expense | 713.4 | 661 | 620.4 |
Outside the U.S. | Franchised restaurants: | ' | ' | ' |
Leases Disclosure [Line Items] | ' | ' | ' |
Rent Expense | $572 | $519.70 | $514.70 |
Income_before_Provision_for_In
Income before Provision for Income Taxes, Classified by Source of Income (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
U.S. | $2,912.70 | $2,879.70 | $3,202.80 |
Outside the U.S. | 5,291.80 | 5,199.30 | 4,809.40 |
Income before provision for income taxes | $8,204.50 | $8,079 | $8,012.20 |
Provision_for_Income_Taxes_Cla
Provision for Income Taxes, Classified by Timing and Location of Payment (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
U.S. federal | $1,238.20 | $1,129.90 | $1,173.40 |
U.S. state | 175 | 189.8 | 165.2 |
Outside the U.S. | 1,180.20 | 1,160 | 982.1 |
Current tax provision | 2,593.40 | 2,479.70 | 2,320.70 |
U.S. federal | 46.2 | 144.9 | 189 |
U.S. state | -6.7 | 5.5 | 8.6 |
Outside the U.S. | -14.3 | -15.9 | -9.2 |
Deferred tax provision | 25.2 | 134.5 | 188.4 |
Provision for income taxes | $2,618.60 | $2,614.20 | $2,509.10 |
Net_Deferred_Tax_Liabilities_D
Net Deferred Tax Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule of Deferred Income Tax Assets and Liabilities | ' | ' |
Property and equipment | $1,812.40 | $1,713.90 |
Other | 639.8 | 636.4 |
Total deferred tax liabilities | 2,452.20 | 2,350.30 |
Property and equipment | -407.9 | -403.6 |
Employee benefit plans | -388.9 | -362.9 |
Intangible assets | -210.1 | -258 |
Deferred foreign tax credits | -192.3 | -179.5 |
Operating loss carryforwards | -154 | -92.4 |
Other | -347.6 | -319.4 |
Total deferred tax assets before valuation allowance | -1,700.80 | -1,615.80 |
Valuation allowance | 172.8 | 127 |
Net deferred tax liabilities | 924.2 | 861.5 |
Balance sheet presentation: [Abstract] | ' | ' |
Deferred income taxes | 1,647.70 | 1,531.10 |
Other noncurrent assets | ' | ' |
Balance sheet presentation: [Abstract] | ' | ' |
Deferred tax assets | -621.4 | -603.6 |
Prepaid expenses and other current assets | ' | ' |
Balance sheet presentation: [Abstract] | ' | ' |
Deferred tax assets | ($102.10) | ($66) |
Statutory_US_Federal_Income_Ta
Statutory U.S. Federal Income Tax Rate Reconcilation to Effective Income Tax Rates (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Statutory U.S. federal income tax rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of related federal income tax benefit | 1.30% | 1.60% | 1.40% |
Benefits and taxes related to foreign operations | -4.00% | -4.10% | -4.70% |
Other, net | -0.40% | -0.10% | -0.40% |
Effective income tax rates | 31.90% | 32.40% | 31.30% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2008 | |||
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ||
Unrecognized tax benefits | $512,700,000 | [1] | $482,400,000 | [1] | $565,000,000 | ' | ' |
Income tax examination settlement | ' | ' | ' | ' | 80,000,000 | ||
Additional proposed tax liabilities adjustment from the IRS primarily related to certain foreign tax credit and transfer pricing matters | ' | ' | ' | ' | 400,000,000 | ||
Reasonably possible amount of unrecognized tax benefits decrease within the next 12 months - minimum | ' | ' | ' | 120,000,000 | ' | ||
Reasonably possible amount of unrecognized tax benefits decrease within the next 12 months - maximum | ' | ' | ' | 140,000,000 | ' | ||
Effective tax rate adjustment | 380,000,000 | ' | ' | ' | ' | ||
Accrued interest and penalties related to income tax matters | 55,400,000 | 37,700,000 | ' | ' | ' | ||
Provision for income taxes, interest and penalties expense related to tax matters | 14,400,000 | 11,200,000 | 4,800,000 | ' | ' | ||
Temporary difference for which deferred U.S. income taxes have not been recorded | 16,100,000,000 | ' | ' | ' | ' | ||
Minimum | ' | ' | ' | ' | ' | ||
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ||
Effective tax rate adjustment | ' | ' | ' | 5,000,000 | ' | ||
Maximum | ' | ' | ' | ' | ' | ||
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ||
Effective tax rate adjustment | ' | ' | ' | $10,000,000 | ' | ||
[1] | Of this amount, $495.1 million and $481.7 million are included in long-term liabilities for 2013 and 2012, respectively, and $16.8 million is included in current liabilities - income taxes for 2013 on the Consolidated balance sheet. The remainder is included in deferred income taxes on the Consolidated balance sheet. |
Reconciliation_of_Beginning_an
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Income Tax Disclosure [Abstract] | ' | ' | ||
Unrecognized tax benefits, beginning balance | $482.40 | [1] | $565 | |
Decreases for positions taken in prior years | -38.3 | -65.7 | ||
Increases for positions taken in prior years | 29.4 | 36.9 | ||
Increases for positions related to the current year | 53.8 | 47.3 | ||
Settlements with taxing authorities | -2.4 | -95.8 | ||
Lapsing of statutes of limitations | -12.2 | -5.3 | ||
Unrecognized tax benefits | $512.70 | [1] | $482.40 | [1] |
[1] | Of this amount, $495.1 million and $481.7 million are included in long-term liabilities for 2013 and 2012, respectively, and $16.8 million is included in current liabilities - income taxes for 2013 on the Consolidated balance sheet. The remainder is included in deferred income taxes on the Consolidated balance sheet. |
Reconciliation_of_Beginning_an1
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
In Millions, unless otherwise specified | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ' | ' | ' | ||
Unrecognized tax benefits | $512.70 | [1] | $482.40 | [1] | $565 |
Other long-term liabilities | ' | ' | ' | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ' | ' | ' | ||
Unrecognized tax benefits | 495.1 | 481.7 | ' | ||
Other Current Liabilities [Member] | ' | ' | ' | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ' | ' | ' | ||
Unrecognized tax benefits | $16.80 | ' | ' | ||
[1] | Of this amount, $495.1 million and $481.7 million are included in long-term liabilities for 2013 and 2012, respectively, and $16.8 million is included in current liabilities - income taxes for 2013 on the Consolidated balance sheet. The remainder is included in deferred income taxes on the Consolidated balance sheet. |
Segment_and_Geographic_Informa2
Segment and Geographic Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Entity Wide Revenue Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | $7,093.20 | $7,323.40 | $7,083.80 | $6,605.30 | $6,952.10 | $7,152.40 | $6,915.90 | $6,546.60 | $28,105.70 | $27,567 | $27,006 |
Total operating income | 2,200.40 | 2,416.70 | 2,197.70 | 1,949.50 | 2,197.80 | 2,287.20 | 2,155 | 1,964.60 | 8,764.30 | 8,604.60 | 8,529.70 |
Total assets | 36,626.30 | ' | ' | ' | 35,386.50 | ' | ' | ' | 36,626.30 | 35,386.50 | 32,989.90 |
Total capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 2,824.70 | 3,049.20 | 2,729.80 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 1,585.10 | 1,488.50 | 1,415 |
U.S. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Entity Wide Revenue Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 8,851.30 | 8,813.70 | 8,528.20 |
Total operating income | ' | ' | ' | ' | ' | ' | ' | ' | 3,779.30 | 3,750.40 | 3,666.20 |
Total assets | 11,711.80 | ' | ' | ' | 11,431.60 | ' | ' | ' | 11,711.80 | 11,431.60 | 10,865.50 |
Total capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 875.5 | 1,065 | 786.5 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 503.6 | 477.1 | 446 |
Europe | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Entity Wide Revenue Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 11,299.80 | 10,827.40 | 10,886.40 |
Total operating income | ' | ' | ' | ' | ' | ' | ' | ' | 3,370.60 | 3,195.80 | 3,226.70 |
Total assets | 15,096.30 | ' | ' | ' | 14,223.30 | ' | ' | ' | 15,096.30 | 14,223.30 | 12,015.10 |
Total capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 1,157.30 | 1,114.70 | 1,130.10 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 627.1 | 573.5 | 570.3 |
APMEA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Entity Wide Revenue Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 6,477.20 | 6,391.10 | 6,019.50 |
Total operating income | ' | ' | ' | ' | ' | ' | ' | ' | 1,479.70 | 1,566.10 | 1,525.80 |
Total assets | 6,202.70 | ' | ' | ' | 6,419.30 | ' | ' | ' | 6,202.70 | 6,419.30 | 5,824.20 |
Total capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 654.6 | 716.6 | 614.1 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 319.2 | 296.2 | 267.5 |
Other Countries & Corporate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Entity Wide Revenue Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,477.40 | 1,534.80 | 1,571.90 |
Total operating income | ' | ' | ' | ' | ' | ' | ' | ' | 134.7 | 92.3 | 111 |
Total assets | 3,615.50 | ' | ' | ' | 3,312.30 | ' | ' | ' | 3,615.50 | 3,312.30 | 4,285.10 |
Total capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 137.3 | 152.9 | 199.1 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | $135.20 | $141.70 | $131.20 |
Segment_and_Geographic_Informa3
Segment and Geographic Information - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Segment Reporting Information [Line Items] | ' | ' | ' |
Total long lived assets | $30,679.80 | $29,644.50 | $27,587.60 |
U.S. | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total long lived assets | $11,632.20 | $11,308.70 | $10,724.90 |
Debt_Financing_Additional_Info
Debt Financing - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Debt Disclosure [Line Items] | ' | ' | ' |
Weighted-average interst rate on short-term borrowings | 5.10% | 4.10% | ' |
Debt, face amount | $1,417,200,000 | $2,284,900,000 | $1,367,300,000 |
Additional paid-in capital | 5,994,100,000 | 5,778,900,000 | ' |
Employee Stock Ownership Plan (ESOP), Debt Structure, Indirect Loan, Description | 'The ESOP is repaying the loans and interest through 2018 using Company contributions and dividends from its McDonald’s common stock holdings | ' | ' |
Revolving Credit Facility Expiring In Twenty Sixteen | Unused lines of Credit [Member] | ' | ' | ' |
Debt Disclosure [Line Items] | ' | ' | ' |
Unused Line of credit | 1,500,000,000 | ' | ' |
Unused Line of credit agreement, fees | 0.07% | ' | ' |
Line of Credit Facility, Commitment Fee Description | 'Fees and interest rates on this line are based on the Company’s long-term credit rating assigned by Moody’s and Standard & Poor’s | ' | ' |
Outside the U.S. | ' | ' | ' |
Debt Disclosure [Line Items] | ' | ' | ' |
Foreign currency bank line borrowings | 609,700,000 | 581,300,000 | ' |
Outside the U.S. | Unused lines of Credit [Member] | ' | ' | ' |
Debt Disclosure [Line Items] | ' | ' | ' |
Line of Credit Facility, Currency | 'denominated in various currencies | ' | ' |
Line of Credit Facility, Interest Rate Description | 'local market rates of interest | ' | ' |
U.S. | ' | ' | ' |
Debt Disclosure [Line Items] | ' | ' | ' |
Commercial Paper | ' | 200,000,000 | ' |
Employee Stock Ownership Plan E S O P Plan | ' | ' | ' |
Debt Disclosure [Line Items] | ' | ' | ' |
Leveraged Employee Stock Ownership Plan (ESOP), loan amount | 23,200,000 | ' | ' |
Additional paid-in capital | $19,900,000 | $27,200,000 | ' |
Summary_of_Debt_Obligations_De
Summary of Debt Obligations (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Debt Disclosure [Line Items] | ' | ' | ||
Amounts outstanding | $14,129.80 | [1] | $13,632.50 | [1] |
Debt Obligations Before Fair Value Adjustments | ' | ' | ||
Debt Disclosure [Line Items] | ' | ' | ||
Amounts outstanding | 14,117 | [2] | 13,590.20 | [2] |
Derivatives in Fair Value Hedging Relationships | ' | ' | ||
Debt Disclosure [Line Items] | ' | ' | ||
Amounts outstanding | 12.8 | [3] | 42.3 | [3] |
Currency U S Dollar | ' | ' | ||
Debt Disclosure [Line Items] | ' | ' | ||
Amounts outstanding | 8,360.60 | 8,725.70 | ||
Currency U S Dollar | Fixed Rate Debt | ' | ' | ||
Debt Disclosure [Line Items] | ' | ' | ||
Interest rates | 4.60% | [4] | 4.80% | [4] |
Amounts outstanding | 6,460.60 | 7,075.70 | ||
Currency U S Dollar | Floating Rate Debt | ' | ' | ||
Debt Disclosure [Line Items] | ' | ' | ||
Interest rates | 3.20% | [4] | 1.20% | [4] |
Amounts outstanding | 1,900 | 1,650 | ||
Currency Euro | ' | ' | ||
Debt Disclosure [Line Items] | ' | ' | ||
Amounts outstanding | 3,242.10 | 2,195.20 | ||
Currency Euro | Fixed Rate Debt | ' | ' | ||
Debt Disclosure [Line Items] | ' | ' | ||
Interest rates | 3.30% | [4] | 3.70% | [4] |
Amounts outstanding | 2,884.90 | 1,847.20 | ||
Currency Euro | Floating Rate Debt | ' | ' | ||
Debt Disclosure [Line Items] | ' | ' | ||
Interest rates | 2.80% | [4] | 2.90% | [4] |
Amounts outstanding | 357.2 | 348 | ||
Currency Japanese Yen | ' | ' | ||
Debt Disclosure [Line Items] | ' | ' | ||
Amounts outstanding | 878.5 | 1,067.50 | ||
Currency Japanese Yen | Fixed Rate Debt | ' | ' | ||
Debt Disclosure [Line Items] | ' | ' | ||
Interest rates | 2.90% | [4] | 2.90% | [4] |
Amounts outstanding | 118.7 | 144.2 | ||
Currency Japanese Yen | Floating Rate Debt | ' | ' | ||
Debt Disclosure [Line Items] | ' | ' | ||
Interest rates | 0.40% | [4] | 0.40% | [4] |
Amounts outstanding | 759.8 | 923.3 | ||
Currency British Pound Sterling [Member] | Fixed Rate Debt | ' | ' | ||
Debt Disclosure [Line Items] | ' | ' | ||
Interest rates | 6.00% | [4] | 6.00% | [4] |
Amounts outstanding | 744.3 | 730.1 | ||
Currency Chinese Renminbi [Member] | ' | ' | ||
Debt Disclosure [Line Items] | ' | ' | ||
Amounts outstanding | 525.1 | 502.9 | ||
Currency Chinese Renminbi [Member] | Fixed Rate Debt | ' | ' | ||
Debt Disclosure [Line Items] | ' | ' | ||
Interest rates | 0.00% | [4] | 3.00% | [4] |
Amounts outstanding | 0 | 32.1 | ||
Currency Chinese Renminbi [Member] | Floating Rate Debt | ' | ' | ||
Debt Disclosure [Line Items] | ' | ' | ||
Interest rates | 5.40% | [4] | 5.60% | [4] |
Amounts outstanding | 525.1 | 470.8 | ||
Foreign currency denominated debt | ' | ' | ||
Debt Disclosure [Line Items] | ' | ' | ||
Amounts outstanding | 366.4 | [5] | 368.8 | [5] |
Foreign currency denominated debt | Fixed Rate Debt | ' | ' | ||
Debt Disclosure [Line Items] | ' | ' | ||
Interest rates | 1.90% | [4] | 1.90% | [4] |
Amounts outstanding | 281 | 273.3 | ||
Foreign currency denominated debt | Floating Rate Debt | ' | ' | ||
Debt Disclosure [Line Items] | ' | ' | ||
Interest rates | 3.60% | [4] | 4.40% | [4] |
Amounts outstanding | $85.40 | $95.50 | ||
[1] | he increase in debt obligations from December 31, 2012 to December 31, 2013 was primarily due to net issuances of $0.5 billion. | |||
[2] | Aggregate maturities for 2013 debt balances, before fair value adjustments, were as follows (in millions): 2014–$0.0; 2015–$1,199.2; 2016–$2,094.6; 2017–$1,054.2; 2018–$1,003.9; Thereafter–$8,765.1. These amounts include a reclassification of short-term obligations totaling $1.2 billion to long-term obligations as they are supported by a long-term line of credit agreement expiring in November 2016. | |||
[3] | The carrying value of underlying items in fair value hedges, in this case debt obligations, are adjusted for fair value changes to the extent they are attributable to the risk designated as being hedged. The related hedging instrument is also recorded at fair value in prepaid expenses and other current assets, miscellaneous other assets or other long-term liabilities. | |||
[4] | Weighted-average effective rate, computed on a semi-annual basis. | |||
[5] | Primarily consists of Swiss Francs and Korean Won. |
Summary_of_Debt_Obligations_Pa
Summary of Debt Obligations (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | ||
Net Issuance Maturities Of Debt | |||||
Debt Disclosure [Line Items] | ' | ' | ' | ||
2013 | $0 | ' | ' | ||
2014 | 1,199,200,000 | ' | ' | ||
2015 | 2,094,600,000 | ' | ' | ||
2016 | 1,054,200,000 | ' | ' | ||
2017 | 1,003,900,000 | ' | ' | ||
Thereafter | 8,765,100,000 | ' | ' | ||
Reclassification to Long Term Debt | 1,200,000,000 | ' | ' | ||
Amounts outstanding | 14,129,800,000 | [1] | 13,632,500,000 | [1] | ' |
Increase (Decrease) In debt obligations | ' | ' | $500,000,000 | ||
[1] | he increase in debt obligations from December 31, 2012 to December 31, 2013 was primarily due to net issuances of $0.5 billion. |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule Of Employee Benefit Plans [Line Items] | ' | ' | ' |
Tax-deferred contributions, description of plan | 'The Company also maintains certain nonqualified supplemental benefit plans that allow participants to (i)Â make tax-deferred contributions and (ii)Â receive Company-provided allocations that cannot be made under the Profit Sharing and Savings Plan because of IRS limitations. The investment alternatives and returns are based on certain market-rate investment alternatives under the Profit Sharing and Savings Plan. | ' | ' |
Supplemental benefit plan liabilities | $531.10 | $493.50 | ' |
Derivative contracts, reasons for holding derivative instruments | 'The Company has entered into derivative contracts to hedge market-driven changes in certain of the liabilities. | ' | ' |
Derivative contracts, fair value of derivatives indexed to the Company's stock | 128.2 | ' | ' |
Investment, indexed to the Company's prepaid expenses and other current assets | 181.4 | ' | ' |
Derivative contracts, disclosure of the effect on the results of operations | 'Changes in liabilities for these nonqualified plans and in the fair value of the derivatives are recorded primarily in Selling, general & administrative expenses. Changes in fair value of the derivatives indexed to the Company’s stock are recorded in the income statement because the contracts provide the counterparty with a choice to settle in cash or shares. | ' | ' |
Maximum | ' | ' | ' |
Schedule Of Employee Benefit Plans [Line Items] | ' | ' | ' |
Participants' future contributions to the 401(k) feature and the discretionary employer matching contribution feature | 20.00% | ' | ' |
U.S. | ' | ' | ' |
Schedule Of Employee Benefit Plans [Line Items] | ' | ' | ' |
Profit sharing and savings plan costs | 21.9 | 27.9 | 41.3 |
Outside the U.S. | ' | ' | ' |
Schedule Of Employee Benefit Plans [Line Items] | ' | ' | ' |
Profit sharing and savings plan costs | 51.2 | 62.5 | 58.3 |
Total liabilities for international retirement plans | $75 | $77.70 | ' |
Sharebased_Compensation_Additi
Share-based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Equity Instruments Other Than Options Performance Share Units [Line Items] | ' | ' | ' | ' |
Description of share based compensation plan | 'The Company maintains a share-based compensation plan which authorizes the granting of various equity-based incentives including stock options and restricted stock units (RSUs) to employees and nonemployee directors. | ' | ' | ' |
Share-based compensation plan, number of shares of common stock reserved for issuance | 73.1 | ' | ' | ' |
Stock options, number of years to expire | '10 years | ' | ' | ' |
Outstanding stock options | 25.1 | 27.4 | 31.7 | 37.4 |
Proceeds from stock option exercises | $233.30 | $328.60 | $334 | ' |
Tax benefit on stock option exercises and other | 93.6 | 150.8 | 116.7 | ' |
RSUs vested, total fair value | 60.2 | 76.4 | 55.5 | ' |
Stock Compensation Plan | ' | ' | ' | ' |
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Equity Instruments Other Than Options Performance Share Units [Line Items] | ' | ' | ' | ' |
Outstanding stock options | 46 | ' | ' | ' |
Stock Option | ' | ' | ' | ' |
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Equity Instruments Other Than Options Performance Share Units [Line Items] | ' | ' | ' | ' |
Stock options exercised total intrinsic value | 325.2 | 469.8 | 416.5 | ' |
Tax benefit on stock option exercises and other | 98.9 | ' | ' | ' |
Restricted Stock Units (RSUs) | ' | ' | ' | ' |
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Equity Instruments Other Than Options Performance Share Units [Line Items] | ' | ' | ' | ' |
Tax benefit on stock option exercises and other | $18.30 | ' | ' | ' |
Vesting percentage | 100.00% | ' | ' | ' |
Vesting period | '3 years | ' | ' | ' |
Summary_of_Stock_Option_Grants
Summary of Stock Option Grants (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock options grant shares | ' | ' | ' |
Outstanding at beginning of year | 27.4 | 31.7 | 37.4 |
Granted | 3.7 | 4.9 | 3.9 |
Exercised | -5.7 | -8.6 | -9 |
Forfeited/expired | -0.3 | -0.6 | -0.6 |
Outstanding at end of year | 25.1 | 27.4 | 31.7 |
Exercisable at end of year | 15.6 | 17.1 | 21.9 |
Stock options grant weighted-average exercise price | ' | ' | ' |
Outstanding at beginning of year | $59.86 | $47.77 | $42.47 |
Granted | $94.36 | $99.63 | $75.97 |
Exercised | $40.12 | $38.51 | $37.46 |
Forfeited/expired | $79.15 | $55.28 | $55 |
Outstanding at end of year | $69.15 | $59.86 | $47.77 |
Exercisable at end of year | $56.43 | ' | ' |
Stock options grant Weighted-average remaining contractual life | ' | ' | ' |
Outstanding at end of year | '5 years 10 months 24 days | ' | ' |
Exercisable at end of year | '4 years 6 months | ' | ' |
Stock options grant aggregate intrinsic value | ' | ' | ' |
Outstanding at end of year | $713.70 | ' | ' |
Exercisable at end of year | $638.60 | ' | ' |
Summary_of_Restricted_Stock_Un
Summary of Restricted Stock Unit Activity (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
RSUs shares | ' | ' | ' |
Nonvested at beginning of year (in shares) | 1.8 | 2.1 | 2.3 |
Granted (in shares) | 1 | 0.5 | 0.6 |
Vested (in shares) | -0.7 | -0.8 | -0.7 |
Forfeited (in shares) | -0.1 | 0 | -0.1 |
Nonvested at end of year (in shares) | 2 | 1.8 | 2.1 |
RSUs weighted-average grant date fair value | ' | ' | ' |
Nonvested at beginning of year | $68.23 | $56.78 | $51.17 |
Granted | $83.98 | $90.34 | $67.96 |
Vested | $56.93 | $50.69 | $49.88 |
Forfeited | $82.44 | $68.72 | $50.16 |
Nonvested at end of year | $78.89 | $68.23 | $56.78 |
Quarterly_Results_Detail
Quarterly Results (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Sales by Company-operated restaurants | $4,744.30 | $4,923.10 | $4,761.40 | $4,445.40 | $4,658.40 | $4,838.40 | $4,673.50 | $4,432.20 | $18,874.20 | $18,602.50 | $18,292.80 | ||
Revenues from franchised restaurants | 2,348.90 | 2,400.30 | 2,322.40 | 2,159.90 | 2,293.70 | 2,314 | 2,242.40 | 2,114.40 | 9,231.50 | 8,964.50 | 8,713.20 | ||
Total revenues | 7,093.20 | 7,323.40 | 7,083.80 | 6,605.30 | 6,952.10 | 7,152.40 | 6,915.90 | 6,546.60 | 28,105.70 | 27,567 | 27,006 | ||
Total operating income | 2,200.40 | 2,416.70 | 2,197.70 | 1,949.50 | 2,197.80 | 2,287.20 | 2,155 | 1,964.60 | 8,764.30 | 8,604.60 | 8,529.70 | ||
Net income | 1,397 | 1,522.20 | 1,396.50 | 1,270.20 | 1,396.10 | 1,455 | 1,347 | 1,266.70 | 5,585.90 | 5,464.80 | 5,503.10 | ||
Earnings per common share–basic | $1.41 | $1.53 | $1.39 | $1.27 | $1.39 | $1.45 | $1.33 | $1.24 | $5.59 | $5.41 | $5.33 | ||
Earnings per common share–diluted | $1.40 | $1.52 | $1.38 | $1.26 | $1.38 | $1.43 | $1.32 | $1.23 | $5.55 | $5.36 | $5.27 | ||
Dividends declared per common share | ' | $1.58 | [1] | $0.77 | $0.77 | ' | $1.47 | [2] | $0.70 | $0.70 | $3.12 | $2.87 | $2.53 |
Weighted-averaged common shares–basic | 992.5 | 997.3 | 1,001.40 | 1,002.70 | 1,002.40 | 1,006.10 | 1,013.80 | 1,018.20 | 998.4 | 1,010.10 | 1,032.10 | ||
Weighted-averaged common shares–diluted | 999.3 | 1,004.20 | 1,008.70 | 1,010.80 | 1,010.70 | 1,015.40 | 1,023.90 | 1,030 | 1,006 | 1,020.20 | 1,044.90 | ||
Company-operated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Margin | 815.6 | 918.7 | 841.9 | 719.4 | 827.3 | 924 | 849.7 | 777.8 | ' | ' | ' | ||
Franchised | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Margin | $1,927.20 | $1,991.90 | $1,923.30 | $1,764.70 | $1,901 | $1,930.60 | $1,866.20 | $1,739.70 | ' | ' | ' | ||
Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Market price per common share | $99.27 | $101.81 | $103.70 | $99.78 | $94.16 | $94 | $99.50 | $102.22 | $99.27 | $94.16 | ' | ||
Minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Market price per common share | $93.14 | $94.01 | $95.16 | $89.25 | $83.31 | $86.15 | $85.92 | $95.13 | $93.14 | $83.31 | ' | ||
Close Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Market price per common share | $97.03 | $96.21 | $99 | $99.69 | $88.21 | $91.75 | $88.53 | $98.10 | $97.03 | $88.21 | ' | ||
[1] | Includes a $0.77 per share dividend declared and paid in third quarter and a $0.81 per share dividend declared in third quarter and paid in fourth quarter. | ||||||||||||
[2] | Includes a $0.70 per share dividend declared and paid in third quarter and a $0.77 per share dividend declared in third quarter and paid in fourth quarter. |
Quarterly_Results_Parenthetica
Quarterly Results (Parenthetical) (Detail) (USD $) | 3 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Quarterly Financial Information Disclosure [Abstract] | ' | ' |
Dividends declared per common share, amount declared and paid in third quarter | $0.77 | $0.70 |
Dividends declared per common share, amount declared in third quarter and paid in fourth quarter | $0.81 | $0.77 |