XML 59 R25.htm IDEA: XBRL DOCUMENT v3.22.0.1

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Restaurant Information by Ownership Type

The following table presents restaurant information by ownership type:

Restaurants at December 31,			2021						2020						2019
Conventional franchised			21,607						21,712						21,837
Developmental licensed			7,913						7,663						7,648
Foreign affiliated			7,775						7,146						6,574
Total Franchised			37,295						36,521						36,059
Company-operated			2,736						2,677						2,636
Total Systemwide restaurants			40,031						39,198						38,695

Activity in Goodwill by Segment

The following table presents the 2021 activity in goodwill by segment:

In millions			U.S.			International Operated Markets						International Developmental Licensed Markets & Corporate						Consolidated
Balance at December 31, 2020			$	1,625.5					$	1,147.6					$	—					$	2,773.1
Net restaurant purchases (sales)			47.9						16.9						—						64.8
Currency translation			—						(55.4)						—						(55.4)
Balance at December 31, 2021			$	1,673.4					$	1,109.1					$	—					$	2,782.5

Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present financial assets and liabilities measured at fair value on a recurring basis by the valuation hierarchy as defined in the fair value guidance:

December 31, 2021
In millions						Level 1 (1)						Level 2						Carrying Value
Derivative assets						$	209.8					$	79.8								$	289.6
Derivative liabilities												$	(7.9)								$	(7.9)
December 31, 2020
In millions						Level 1 (1)						Level 2						Carrying Value
Derivative assets						$	185.6					$	41.4								$	227.0
Derivative liabilities												$	(97.5)								$	(97.5)

(1)    Level 1 is comprised of derivatives that hedge market driven changes in liabilities associated with the Company’s supplemental benefit plans.

Fair Values of Derivative Instruments Included on Consolidated Balance Sheet

The following table presents the fair values of derivative instruments included on the Consolidated Balance Sheet as of December 31, 2021 and 2020:

			Derivative Assets																		Derivative Liabilities
In millions			Balance Sheet Classification						2021						2020						Balance Sheet Classification						2021						2020
Derivatives designated as hedging instruments
Foreign currency			Prepaid expenses and other current assets						$	42.4					$	—					Accrued payroll and other liabilities						$	(3.3)					$	(64.5)
Interest rate			Prepaid expenses and other current assets						0.3						—						Accrued payroll and other liabilities						—						—
Foreign currency			Miscellaneous other assets						28.0						5.6						Other long-term liabilities						(0.5)						(15.0)
Interest rate			Miscellaneous other assets						8.6						35.8						Other long-term liabilities						(4.1)						—
Total derivatives designated as hedging instruments									$	79.3					$	41.4											$	(7.9)					$	(79.5)
Derivatives not designated as hedging instruments
Equity			Prepaid expenses and other current assets						$	9.5					$	185.6					Accrued payroll and other liabilities						$	—					$	(8.6)
Foreign currency			Prepaid expenses and other current assets						0.5						—						Accrued payroll and other liabilities						—						(9.4)
Equity			Miscellaneous other assets						200.3						—
Total derivatives not designated as hedging instruments									$	210.3					$	185.6											$	—					$	(18.0)
Total derivatives									$	289.6					$	227.0											$	(7.9)					$	(97.5)

Derivatives Pretax Amounts Affecting Income and Other Comprehensive Income

The following table presents the pre-tax amounts from derivative instruments affecting income and AOCI for the year ended December 31, 2021 and 2020, respectively:

			Location of gain or loss recognized in income on derivative			Gain (loss) recognized in AOCI															Gain (loss) reclassified into income from AOCI															Gain (loss) recognized in income on derivative
In millions																		2021																											2020									2021									2020									2021									2020
Foreign currency															Nonoperating income/expense			$	74.2																										$	(76.6)								$	(30.9)								$	(2.1)
Interest rate			Interest expense			—									(90.8)									(6.3)									(5.4)
Cash flow hedges						$	74.2								$	(167.4)								$	(37.2)								$	(7.5)
Foreign currency denominated debt			Nonoperating income/expense			$	725.8								$	(989.7)								$	47.1								$	33.7
Foreign currency derivatives			Nonoperating income/expense			40.2									(12.3)
Foreign currency derivatives(1)			Interest expense																																							$	14.7								$	14.7
Net investment hedges						$	766.0								$	(1,002.0)								$	47.1								$	33.7								$	14.7								$	14.7
Foreign currency			Nonoperating income/expense																																							$	9.4								$	(29.0)
Equity			Selling, general & administrative expenses																																							99.3									44.4
Equity			Other operating income/ expense, net																																							(11.3)									(16.0)
Undesignated derivatives																																										$	97.4								$	(0.6)
(1)The amount of gain (loss) recognized in income related to components excluded from effectiveness testing.

X

- Definition

Restaurant By Ownership Type, Table

+ References

No definition available.

+ Details

Name:	mcd_RestaurantByOwnershipTypeTableTextBlock
Namespace Prefix:	mcd_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

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

X

- Definition

Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4E
-URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624181-113959

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4A
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5618551-113959

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959

+ Details

Name:	us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624163-113959

+ Details

Name:	us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258

+ Details

Name:	us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=121556970&loc=d3e13854-109267

+ Details

Name:	us-gaap_ScheduleOfGoodwillTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration