XML 45 R28.htm IDEA: XBRL DOCUMENT v3.8.0.1

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income before Provision for Income Taxes, Classified by Source of Income

Income before provision for income taxes, classified by source of income, was as follows:

In millions	2017				2016				2015
U.S.	$	2,242.0			$	2,059.4			$	2,597.8
Outside the U.S.	6,331.5				4,806.6				3,957.9
Income before provision for income taxes	$	8,573.5			$	6,866.0			$	6,555.7

Provision for Income Taxes, Classified by Timing and Location of Payment

The provision for income taxes, classified by the timing and location of payment, was as follows:

In millions	2017				2016				2015
U.S. federal	$	2,030.8			$	1,046.6			$	1,072.3
U.S. state	169.8				121.3				139.5
Outside the U.S.	1,217.0				1,550.2				816.0
Current tax provision	3,417.6				2,718.1				2,027.8
U.S. federal	(120.1		)		(122.1		)		6.8
U.S. state	12.8				14.1				(3.9		)
Outside the U.S.	70.9				(430.6		)		(4.3		)
Deferred tax provision	(36.4		)		(538.6		)		(1.4		)
Provision for income taxes	$	3,381.2			$	2,179.5			$	2,026.4

Net Deferred Tax Liabilities

Net deferred tax liabilities consisted of:

In millions	December 31, 2017						2016
Property and equipment			$	1,211.5			$	1,459.8
Unrealized foreign exchange gains			—				630.9
Intangible liabilities			296.2				445.2
Other			242.0				287.6
Total deferred tax liabilities			1,749.7				2,823.5
Property and equipment			(633.8		)		(650.2		)
Employee benefit plans			(253.1		)		(395.0		)
Intangible assets			(228.8		)		(170.7		)
Deferred foreign tax credits			(208.6		)		(316.8		)
Operating loss carryforwards			(71.1		)		(292.7		)
Other			(266.0		)		(338.6		)
Total deferred tax assets before valuation allowance			(1,661.4		)		(2,164.0		)
Valuation allowance			163.2				168.0
Net deferred tax liabilities			$	251.5			$	827.5
Balance sheet presentation:
Deferred income taxes			$	1,119.4			$	1,817.1
Other assets-miscellaneous			(867.9		)		(804.0		)
Liabilities of businesses held for sale			—				(185.6		)
Net deferred tax liabilities			$	251.5			$	827.5

Statutory U.S. Federal Income Tax Rate Reconciliation to Effective Income Tax Rates

The statutory U.S. federal income tax rate reconciles to the effective income tax rates as follows:

	2017			2016			2015
Statutory U.S. federal income tax rate	35.0	%		35.0	%		35.0	%
State income taxes, net of related federal income tax benefit	1.2			1.5			1.6
Foreign income taxed at different rates	(4.6	)		(6.5	)		(4.9	)
Transition tax	13.7			—			—
US net deferred tax liability remeasurement	(6.0	)		—			—
Cash repatriation	0.3			—			(2.3	)
Other, net	(0.2	)		1.7			1.5
Effective income tax rates	39.4	%		31.7	%		30.9	%

Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits

The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits:

In millions	2017				2016
Balance at January 1	$	924.1			$	781.2
Decreases for positions taken in prior years	(13.7		)		(37.1		)
Increases for positions taken in prior years	143.9				150.1
Increases for positions related to the current year	140.2				116.6
Settlements with taxing authorities	(6.5		)		(17.7		)
Lapsing of statutes of limitations	(7.6		)		(69.0		)
Balance at December 31(1)	$	1,180.4			$	924.1

(1)

Of this amount, $1,132.3 million and $890.0 million are included in Other long-term liabilities for 2017 and 2016, respectively, and $30.8 million and $9.0 million are included in Current liabilities - income taxes for 2017 and 2016, respectively, on the consolidated balance sheet. The remainder is included in Deferred income taxes on the consolidated balance sheet.

X

- Definition

Unrecognized Tax Benefits Reconciliation, Table

+ References

No definition available.

+ Details

Name:	mcd_UnrecognizedTaxBenefitsReconciliationTableTextBlock
Namespace Prefix:	mcd_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319

+ Details

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319

+ Details

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319

+ Details

Name:	us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h)(1)(i))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

+ Details

Name:	us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration