QuickLinks -- Click here to rapidly navigate through this document
Exhibit 12. McDonald's Corporation statement Re: computation of ratios
| DOLLARS IN MILLIONS | Years ended December 31, 2002 | 2001 | 2000 | 1999 | 1998 | |||||||||||||
| Earnings available for fixed charges | ||||||||||||||||||
Income before provision for income taxes and cumulative effect of accounting change | $ | 1,662.1 | (1) | $ | 2,329.7 | (3) | $ | 2,882.3 | $ | 2,884.1 | $ | 2,307.4 | (5) | |||||
Minority interest expense (income) in operating results of majority-owned subsidiaries, including fixed charges related to redeemable preferred stock, less equity in undistributed operating results of less than 50%-owned affiliates | 6.6 | (15.4 | ) | 16.2 | 21.9 | 23.7 | ||||||||||||
Income tax provision (benefit) of 50%-owned affiliates included in consolidated income before provision for income taxes | (9.5 | ) | 51.0 | 93.7 | 72.8 | 99.9 | ||||||||||||
Portion of rent charges (after reduction for rental income from subleased properties) considered to be representative of interest factors * | 266.7 | 252.5 | 207.0 | 178.5 | 161.3 | |||||||||||||
Interest expense, amortization of debt discount and issuance costs, and depreciation of capitalized interest * | 419.7 | 510.3 | 470.3 | 440.1 | 461.9 | |||||||||||||
| $ | 2,345.6 | $ | 3,128.1 | $ | 3,669.5 | $ | 3,597.4 | $ | 3,054.2 | |||||||||
Fixed charges | ||||||||||||||||||
Portion of rent charges (after reduction for rental income from subleased properties) considered to be representative of interest factors * | $ | 266.7 | $ | 252.5 | $ | 207.0 | $ | 178.5 | $ | 161.3 | ||||||||
Interest expense, amortization of debt discount and issuance costs, and fixed charges related to redeemable preferred stock * | 401.7 | 492.9 | 457.9 | 431.3 | 453.4 | |||||||||||||
Capitalized interest * | 14.4 | 15.4 | 16.5 | 14.7 | 18.3 | |||||||||||||
| $ | 682.8 | $ | 760.8 | $ | 681.4 | $ | 624.5 | $ | 633.0 | |||||||||
| Ratio of earnings to fixed charges | 3.44 | (2) | 4.11 | (4) | 5.39 | 5.76 | 4.82 | (6) | ||||||||||
- *
- Includes amounts of the Registrant and its majority-owned subsidiaries, and one-half of the amounts of 50%-owned affiliates.
- (1)
- Includes pretax operating charges of $853.2 million primarily related to restructuring markets and eliminating positions, restaurant closings/asset impairment and the write-off of technology costs.
- (2)
- Excluding the charges in (1) above, the ratio of earnings to fixed charges for the year ended December, 31 2002 would have been 4.69.
- (3)
- Includes a net pretax expense of $252.9 million consisting of charges primarily related to the U.S. business reorganization and other global change initiatives and restaurant closings/asset impairment, partly offset by a gain on the initial public offering of McDonald's Japan.
- (4)
- Excluding the items in (3) above, the ratio of earnings to fixed charges for the year ended December 31, 2001 would have been 4.45.
- (5)
- Includes pretax operating charges of $321.6 million consisting of $161.6 million of Made For You costs and the $160.0 million charge related to the home office productivity initiative.
- (6)
- Excluding the charges in (5) above, the ratio of earnings to fixed charges for the year ended December 31, 1998 would have been 5.33.
85