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Other Operating (Income) Expense, Net
 12 Months Ended
Dec. 31, 2017
Other Income and Expenses [Abstract]  
Other Operating (Income) Expense, Net
Other Operating (Income) Expense, Net
 
In millions
2017

 
2016

 
2015

Gains on sales of restaurant
businesses
$
(295.4
)
 
$
(283.4
)
 
$
(145.9
)
Equity in (earnings) losses of
unconsolidated affiliates
(183.7
)
 
(54.8
)
 
146.8

Asset dispositions and other (income) expense, net
18.7

 
72.3

 
(26.6
)
Impairment and other charges (gains), net
(702.8
)
 
341.6

 
235.1

Total
$
(1,163.2
)
 
$
75.7

 
$
209.4


 
▪
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 and China—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 goals, the realized gains/losses from the sale of McDonald's businesses in certain markets are reflected in this category. In July 2017, the Company completed the sale of its businesses in China and Hong Kong, resulting in a gain of approximately $850 million.