EX-12 4 mcd-3312018xex12.htm COMPUTATION OF RATIOS

Exhibit 12. Computation of Ratios |  |  |  |  |  |  |  |  |  |  |  |  |
Ratio of Earnings to Fixed Charges |  |  |  |  |  |  |  |  |  |  |  |  |
Dollars in millions |  |  |  |  |  |  |  |  |  |  |  |  |
| Quarters Ended |  |  |  |  |  |  |  |  |  |
| March 31, |  | Years Ended December 31,
| 2018 |  | 2017 |  | 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013
Earnings available for fixed charges |  |  |  |  |  |  |  |  |  |  |  |  |
- Income before provision for income taxes | $ | 1,887.9 |  |  | $ | 1,807.5 |  |  | $ | 8,573.5 |  |  | $ | 6,866.0 |  |  | $ | 6,555.7 |  |  | $ | 7,372.0 |  |  | $ | 8,204.5 |
- Noncontrolling interest expense in operating results of majority-owned subsidiaries less equity in undistributed operating results of less than 50%-owned affiliates | (10.3 | ) |  | 4.1 |  |  | 5.3 |  |  | 12.5 |  |  | 7.3 |  |  | 6.3 |  |  | 9.0 |
- Income tax provision (benefit) of 50%-owned affiliates included in income from continuing operations before provision for income taxes | 14.5 |  |  | 6.6 |  |  | (36.5 | ) |  | 3.3 |  |  | 3.7 |  |  | (0.1 | ) |  | 23.8 |
- Portion of rent charges (after reduction for rental income from subleased properties) considered to be representative of interest factors* | 40.7 |  |  | 76.4 |  |  | 244.8 |  |  | 342.6 |  |  | 365.1 |  |  | 374.6 |  |  | 374.6 |
- Interest expense, amortization of debt discount and issuance costs, and depreciation of capitalized interest* | 240.6 |  |  | 222.9 |  |  | 938.3 |  |  | 904.8 |  |  | 660.4 |  |  | 596.1 |  |  | 548.9 |
| $ | 2,173.4 |  |  | $ | 2,117.5 |  |  | $ | 9,725.4 |  |  | $ | 8,129.2 |  |  | $ | 7,592.2 |  |  | $ | 8,348.9 |  |  | $ | 9,160.8 |
Fixed charges |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
- Portion of rent charges (after reduction for rental income from subleased properties) considered to be representative of interest factors* | $ | 40.7 |  |  | $ | 76.4 |  |  | $ | 244.8 |  |  | $ | 342.6 |  |  | $ | 365.1 |  |  | $ | 374.6 |  |  | $ | 374.6 |
- Interest expense, amortization of debt discount and issuance costs* | 237.0 |  |  | 219.3 |  |  | 924.0 |  |  | 888.2 |  |  | 643.7 |  |  | 579.8 |  |  | 532.1 |
- Capitalized interest* | 0.8 |  |  | 1.0 |  |  | 5.3 |  |  | 7.1 |  |  | 9.4 |  |  | 14.8 |  |  | 15.6 |
| $ | 278.5 |  |  | $ | 296.7 |  |  | $ | 1,174.1 |  |  | $ | 1,237.9 |  |  | $ | 1,018.2 |  |  | $ | 969.2 |  |  | $ | 922.3 |
Ratio of earnings to fixed charges | 7.80 |  |  | 7.14 |  |  | 8.28 |  |  | 6.57 |  |  | 7.46 |  |  | 8.61 |  |  | 9.93 |

* | Includes amounts of the Company 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.