Exhibit 12
McDONALD’S CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Dollars in Millions
Three Months Ended March 31, | Years Ended December 31, | ||||||||||||||||||||||||||
| 2009 | 2008 | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||||||||||||||
Earnings available for fixed charges | |||||||||||||||||||||||||||
- Income from continuing operations before provision for income taxes and cumulative effect of accounting changes | $ | 1,372.4 | $ | 1,363.2 | $ | 6,158.0 | $ | 3,572.1 | (1) | $ | 4,154.4 | (2) | $ | 3,660.2 | $ | 3,217.0 | (3) | ||||||||||
- Minority interest expense in operating results of majority-owned subsidiaries, including fixed charges related to redeemable preferred stock, less equity in undistributed operating results of less than 50%-owned affiliates | 0.5 | 2.1 | 10.7 | 7.2 | 5.5 | 1.2 | 4.4 | ||||||||||||||||||||
- Income tax provision (benefit) of 50%-owned affiliates included in income from continuing operations before provision for income taxes | 11.0 | 8.5 | 30.0 | 22.4 | 5.9 | (3.5 | ) | 13.1 | |||||||||||||||||||
- Portion of rent charges (after reduction for rental income from subleased properties) considered to be representative of interest factors* | 72.8 | 80.0 | 321.3 | 312.8 | 304.0 | 292.8 | 272.2 | ||||||||||||||||||||
- Interest expense, amortization of debt discount and issuance costs, and depreciation of capitalized interest* | 129.1 | 137.1 | 556.8 | 442.7 | 437.4 | 392.2 | 394.2 | ||||||||||||||||||||
| $ | 1,585.8 | $ | 1,590.9 | $ | 7,076.8 | $ | 4,357.2 | $ | 4,907.2 | $ | 4,342.9 | $ | 3,900.9 | ||||||||||||||
Fixed charges | |||||||||||||||||||||||||||
- Portion of rent charges (after reduction for rental income from subleased properties) considered to be representative of interest factors* | $ | 72.8 | $ | 80.0 | $ | 321.3 | $ | 312.8 | $ | 304.0 | $ | 292.8 | $ | 272.2 | |||||||||||||
-Interest expense, amortization of debt discount and issuance costs, and fixed charges related to redeemable preferred stock* | 124.8 | 132.8 | 539.7 | 425.9 | 418.4 | 373.4 | 375.6 | ||||||||||||||||||||
-Capitalized interest* | 2.0 | 1.8 | 12.5 | 7.0 | 5.5 | 5.0 | 4.1 | ||||||||||||||||||||
| $ | 199.6 | $ | 214.6 | $ | 873.5 | $ | 745.7 | $ | 727.9 | $ | 671.2 | $ | 651.9 | ||||||||||||||
Ratio of earnings to fixed charges | 7.94 | 7.41 | 8.10 | 5.84 | 6.74 | 6.47 | 5.98 | ||||||||||||||||||||
| * | Includes amounts of the Registrant and its majority-owned subsidiaries, and one-half of the amounts of 50%-owned affiliates. The Company records interest expense on unrecognized tax benefits in the provision for income taxes. This interest is not included in the computation of fixed charges. |
| (1) | Includes pretax charges of $1.7 billion primarily related to impairment in connection with the Company’s sale of Latam to a developmental licensee. |
| (2) | Includes pretax charges of $134.2 million primarily related to impairment. |
| (3) | Includes pretax charges of $202.1 million consisting of $130.5 million related to impairment and $120.9 million related to the correction in the Company’s lease accounting practices and policies as well as a $49.3 million gain relating to the sale of the Company’s interest in a U.S. real estate partnership. |