Other Operating (Income) Expense, Net



In millions	2016			2015			2014
Gains on sales of restaurant businesses	$	(283.4	)	$	(145.9	)	$	(137.4	)
Equity in (earnings) losses of unconsolidated affiliates	(54.8		)	146.8			8.9
Asset dispositions and other (income) expense, net	72.3			(26.6		)	108.2
Impairment and other charges (gains), net	341.6			235.1			38.9
Total	$	75.7		$	209.4		$	18.6


▪	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) losses 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) losses from these entities representing McDonald’s share of results. For foreign affiliated markets—primarily Japan—results are reported after interest expense and income taxes.


▪	Asset dispositions and other (income) expense, net

Asset dispositions and other (income) expense, net 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.


▪	Impairment and other charges (gains), net

Impairment and other charges (gains), net includes the losses that result from the write down of goodwill and long-lived assets from their carrying value to their fair value. Charges associated with strategic initiatives, such as refranchising and restructuring activities are also included. In addition, as the Company continues to make progress towards its long-term global refranchising targets, the realized gains/losses from the sale of McDonald's businesses in certain markets are reflected in this category.