beatandraise : SEC Filings Research with AI

beatandraise.com

2.2.0.25falsefalse117 - Disclosure - Leasing Arrangementstruefalsefalse1falsefalseUSDfalsefalse1/1/2010 - 12/31/2010 USD ($) USD ($) / shares $eol_PE2163----1010-K0023_STD_365_20101231_0http://www.sec.gov/CIK0000063908duration2010-01-01T00:00:002010-12-31T00:00:00iso4217_USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170pureStandardhttp://www.xbrl.org/2003/instancepure0YearStandardhttp://www.mcdonalds.com/20101231Yearmcd0sharesStandardhttp://www.xbrl.org/2003/instanceshares0iso4217_USD_per_sharesDividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instanceshares0USDUSD$5false0us-gaap_LeasesOfLesseeDisclosureTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse< NumericAmount>00<div> Leasing Arrangements     At December 31, 2010, the Company was the lessee at 13,957 restaurant locations through ground leases (the Company leases the land and the Company or franchisee owns the building) and through improved leases (the Company leases land and buildings). Lease terms for most restaurants, where market conditions allow, are generally for 20 years and, in many cases, provide for rent escalations and renewal options, with certain leases providing purchase options. Escalation terms vary by geographic segment with examples including fixed-rent escalations, escalations based on an inflation index, and fair-value market adjustments. The timing of these escalations generally ranges from annually to every five years. For most locations, the Company is obligated for the related occupancy costs including property taxes, insurance and maintenance; however, for franchised sites, the Company requires the franchisees to pay these costs. In addition, the Company is the lessee under noncancelable leases covering certain offices and vehicles. Future minimum payments required under existing operating leases with initial terms of one year or more are:       <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="42%"></td> <td valign="bottom" width="7%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="11%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="11%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">In millions</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">Restaurant</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">Other</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">Total</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> </tr> <tr> <td valign="top"> 2011 </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,124.1</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom">$</td> <td valign="bottom" align="right">76.4</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,200.5</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td valign="top"> 2012 </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,054.7</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">60.9</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,115.6</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td valign="top"> 2013 </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">986.7</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">47.5</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,034.2</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td valign="top"> 2014 </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">885.5</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">40.4</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">925.9</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td valign="top"> 2015 </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">797.4</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">29.6</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">827.0</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="top"> Thereafter </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">5,823.6</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">194.5</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">6,018.1</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Total minimum payments </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">10,672.0</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">449.3</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">11,121.3</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> </tr> </table> The following table provides detail of rent expense:       <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="42%"></td> <td valign="bottom" width="7%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="11%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="11%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">In millions</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">2010</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">2009</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">2008</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> </tr> <tr> <td valign="top"> Company-operated restaurants: </td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">    </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">    </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> U.S. </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">60.4</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom">$</td> <td valign="bottom" align="right">65.2</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom">$</td> <td valign="bottom" align="right">73.7</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="top"> Outside the U.S. </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">545.0</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">506.9</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">532.0</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="top"> Total </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">605.4</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">572.1</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">605.7</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td valign="top"> Franchised restaurants: </td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">    </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">    </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> U.S. </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">409.7</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">393.9</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">374.7</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="top"> Outside the U.S. </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">463.5</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">431.4</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">409.4</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="top"> Total </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">873.2</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">825.3</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">784.1</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="top"> Other </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">98.1</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">98.9</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">101.8</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Total rent expense </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">1,576.7</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">1,496.3</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">1,491.6</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> </tr> </table> Rent expense included percent rents in excess of minimum rents (in millions) as follows–Company-operated restaurants: 2010–$142.5; 2009–$129.6; 2008–$130.2. Franchised restaurants: 2010–$167.3; 2009–$154.7; 2008–$143.5. </div>Leasing Arrangements     At December 31, 2010, the Company was the lessee at 13,957 restaurant locations through ground leases (the CompanyfalsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringDisclosure of lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. This element can be used to disclose the entity's entire lease disclosure as a single block of text.Refer ence 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 13 -Paragraph 16 falsefalseLeasing Arrangements11Leasing ArrangementsUnKnownUnKnownUnKnownUnKnownfalsetrue