Segment and Geographic Information

12 Months Ended

Dec. 31, 2018

The Company franchises and operates McDonald’s restaurants in the global restaurant industry. The following reporting segments reflect how management reviews and evaluates operating performance through December 31, 2018:


▪	U.S. - the Company's largest segment.


▪	International Lead Markets - established markets including Australia, Canada, France, Germany, the U.K. and related markets.


▪	High Growth Markets - markets the Company believes have relatively higher restaurant expansion and franchising potential including China, Italy, Korea, Poland, Russia, Spain, Switzerland, the Netherlands and related markets.


▪	Foundational Markets & Corporate - the remaining markets in the McDonald's system, most of which operate under a largely franchised model. Corporate activities are also reported within this segment.

All intercompany revenues and expenses are eliminated in computing revenues and operating income. Corporate general and administrative expenses consist of home office support costs in areas such as facilities, finance, human resources, information technology, legal, marketing, restaurant operations, supply chain and training. Corporate assets include corporate cash and equivalents, asset portions of financial instruments and home office facilities.



In millions	2018		2017		2016
U.S.	$	7,665.8	$	8,006.4	$	8,252.7
International Lead Markets	7,600.1		7,340.3		7,223.4
High Growth Markets	3,988.7		5,533.2		6,160.7
Foundational Markets & Corporate	1,770.6		1,940.5		2,985.1
Total revenues	$	21,025.2	$	22,820.4	$	24,621.9
U.S.	$	4,015.6	$	4,022.4	$	3,768.7
International Lead Markets	3,485.7		3,166.5		2,838.4
High Growth Markets	1,001.2		2,001.4		1,048.8
Foundational Markets & Corporate	320.1		362.4		88.6
Total operating income	$	8,822.6	$	9,552.7	$	7,744.5
U.S.	$	14,483.8	$	12,648.6	$	11,960.6
International Lead Markets	12,713.0		11,844.3		9,112.5
High Growth Markets	4,404.9		4,480.7		5,208.6
Foundational Markets & Corporate	1,209.5		4,830.1		4,742.2
Total assets	$	32,811.2	$	33,803.7	$	31,023.9
U.S.	$	1,849.8	$	861.2	$	586.7
International Lead Markets	436.4		515.3		635.6
High Growth Markets	285.6		378.5		493.2
Foundational Markets & Corporate	169.9		98.7		105.6
Total capital expenditures	$	2,741.7	$	1,853.7	$	1,821.1
U.S.	$	598.4	$	524.1	$	510.3
International Lead Markets	472.9		461.1		451.6
High Growth Markets	233.0		231.7		362.0
Foundational Markets & Corporate	177.7		146.5		192.6
Total depreciation and amortization	$	1,482.0	$	1,363.4	$	1,516.5

Total long-lived assets, primarily property and equipment, were (in millions)–Consolidated: 2018–$27,511.7; 2017– $27,164.2; 2016–$25,200.4; U.S. based: 2018–$13,602.4; 2017–$12,308.7; 2016–$11,689.7.

Effective January 1, 2019, McDonald’s operates under a new organizational structure designed to continue the Company's efforts toward efficiently driving growth through the Velocity Growth Plan with the following three segments:


•	U.S. - the Company’s largest market.


•	International Operated Markets - comprised of wholly-owned markets, or countries in which the Company operates restaurants, including Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain and the U.K.

•

International Developmental Licensed Markets - comprised primarily of developmental licensee and affiliate markets in the McDonald’s system. Corporate activities will also be reported in this segment.