Exhibit 12
McDONALD’S CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Dollars In Millions
| Six Months Ended June 30, |
Years Ended December 31, | ||||||||||||||||||||||||||
| 2004 | 2003 | 2003 | 2002 | 2001 | 2000 | 1999 | |||||||||||||||||||||
| Earnings available for fixed charges |
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| - Income before provision for income taxes and cumulative effect of accounting changes |
$ | 1,623.7 | $ | 1,255.8 | $ | 2,346.4 | (1) | $ | 1,662.1 | (2) | $ | 2,329.7 | (3) | $ | 2,882.3 | $ | 2,884.1 | ||||||||||
| - Minority interest expense (income) in operating results of majority-owned subsidiaries, including fixed charges related to redeemable preferred stock, less equity in undistributed operating results of less than 50%-owned affiliates |
3.2 | 3.1 | 18.1 | 6.6 | (15.4 | ) | 16.2 | 21.9 | |||||||||||||||||||
| - Income tax provision (benefit) of 50%-owned affiliates included in consolidated income before provision for income taxes |
3.6 | (3.5 | ) | (28.6 | ) | (9.5 | ) | 51.0 | 93.7 | 72.8 | |||||||||||||||||
| - Portion of rent charges (after reduction for rental income from subleased properties) considered to be representative of interest factors* |
161.1 | 141.6 | 289.6 | 266.7 | 252.5 | 207.0 | 178.5 | ||||||||||||||||||||
| - Interest expense, amortization of debt discount and issuance costs, and depreciation of capitalized interest* |
197.6 | 223.2 | 427.3 | 419.7 | 510.3 | 470.3 | 440.1 | ||||||||||||||||||||
| $ | 1,989.2 | $ | 1,620.2 | $ | 3,052.8 | $ | 2,345.6 | $ | 3,128.1 | $ | 3,669.5 | $ | 3,597.4 | ||||||||||||||
| Fixed charges |
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| - Portion of rent charges (after reduction for rental income from subleased properties) considered to be representative of interest factors* |
$ | 161.1 | $ | 141.6 | $ | 289.6 | $ | 266.7 | $ | 252.5 | $ | 207.0 | $ | 178.5 | |||||||||||||
| - Interest expense, amortization of debt discount and issuance costs, and fixed charges related to redeemable preferred stock* |
188.3 | 214.0 | 408.9 | 401.7 | 492.9 | 457.9 | 431.3 | ||||||||||||||||||||
| - Capitalized interest* |
1.8 | 4.7 | 7.9 | 14.4 | 15.4 | 16.5 | 14.7 | ||||||||||||||||||||
| $ | 351.2 | $ | 360.3 | $ | 706.4 | $ | 682.8 | $ | 760.8 | $ | 681.4 | $ | 624.5 | ||||||||||||||
| Ratio of earnings to fixed charges |
5.66 | 4.50 | 4.32 | 3.44 | 4.11 | 5.39 | 5.76 | ||||||||||||||||||||
| * | Includes amounts of the Registrant and its majority-owned subsidiaries, and one-half of the amounts of 50%-owned affiliates. |
| (1) | Includes pretax charges of $407.6 million primarily related to the disposition of certain non-McDonald’s brands and asset/goodwill impairment. |
| (2) | Includes pretax charges of $853.2 million primarily related to restructuring markets and eliminating positions, restaurant closings/asset impairment and the write-off of technology costs. |
| (3) | Includes net pretax expense of $252.9 million consisting of charges primarily related to the U.S. business reorganization and other global change initiatives and restaurant closings/asset impairment, partly offset by a gain on the initial public offering of McDonald’s Japan. |
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