Exhibit 12
McDONALD'S CORPORATION
STATEMENT RE: COMPUTATION OF RATIOS
Dollars In Millions
Nine months
Ended September 30, Years ended December 31,
2000 1999 1999 1998 1997 1996 1995
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EARNINGS AVAILABLE FOR FIXED CHARGES
- - Income before provision for income taxes $2,224.8 $2,173.8 $2,884.1 $2,307.4/(1)/ $2,407.3 $2,251.0 $2,169.1
- - Minority interest in operating results of
majority-owned subsidiaries, including
fixed charges related to redeemable
preferred stock, less equity in
undistributed operating results of
less-than-50% owned affiliates 4.8 19.9 21.9 23.7 28.3 39.6 19.6
- - Provision for income taxes of 50% owned
affiliates included in consolidated income
before provision for income taxes 72.1 42.2 72.8 99.9 69.0 73.2 73.3
- - Portion of rent charges (after reduction
for rental income from subleased
properties) considered to be representative
of interest factors* 149.0 131.4 178.5 161.3 145.9 130.9 103.8
- - Interest expense, amortization of debt
discount and issuance costs, and
Depreciation of capitalized interest* 347.0 327.0 440.1 461.9 424.8 392.2 388.8
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$2,797.7 $2,694.3 $3,597.4 $3,054.2 $3,075.3 $2,886.9 $2,754.6
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FIXED CHARGES
- - Portion of rent charges (after reduction
for rental income from subleased
properties) considered to be representative
of interest factors* $ 149.0 $ 131.4 $ 178.5 $ 161.3 $ 145.9 $ 130.9 $ 103.8
- - Interest expense, amortization of debt
discount and issuance costs, and fixed
charges related to redeemable preferred
stock* 339.5 320.5 431.3 453.4 426.1 410.4 403.4
- - Capitalized interest* 11.5 10.5 14.7 18.3 23.7 23.5 22.8
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$ 500.0 $ 462.4 $ 624.5 $ 633.0 $ 595.7 $ 564.8 $ 530.0
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RATIO OF EARNINGS TO FIXED CHARGES 5.60 5.83 5.76 4.82/(2)/ 5.16 5.11 5.20
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* Includes amounts of the Registrant and its majority-owned subsidiaries, and
one-half of the amounts of 50%-owned affiliates.
(1) Includes $160.0 million pre-tax special charge and $161.6 million of Made
For You costs for a pre-tax total of $321.6 million.
(2) Excluding the special charge and Made For You costs, the ratio of earnings
to fixed charges for the year ended December 31, 1998 was 5.33.