McDonalds 2008 Annual Report Download - page 21

6-YEAR SUMMARY
Dollars in millions, except per share data 2008 2007 2006 2005 2004 2003
Company-operated sales $16,561 16,611 15,402 14,018 13,055 11,810
Franchised revenues $ 6,961 6,176 5,493 5,099 4,834 4,344
Total revenues $23,522 22,787 20,895 19,117 17,889 16,154
Operating income $ 6,443 3,879(2) 4,433(5) 3,984 3,554(8) 2,835(9)
Income from continuing operations $ 4,313(1) 2,335(2,3) 2,866(5) 2,578(7) 2,287(8) 1,510(9)
Net income $ 4,313(1) 2,395(2,3,4) 3,544(5,6) 2,602(7) 2,279(8) 1,471(9,10)
Cash provided by operations $ 5,917 4,876 4,341 4,337 3,904 3,269
Cash used for investing activities $ 1,625 1,150 1,274 1,818 1,383 1,370
Capital expenditures $ 2,136 1,947 1,742 1,607 1,419 1,307
Cash used for (provided by) financing activities $ 4,115 3,996 5,460 (442) 1,634 1,737
Treasury stock repurchased $ 3,981 3,949 3,719 1,228 605 439
Common stock cash dividends $ 1,823 1,766 1,217 842 695 504
Financial position at year end:
Total assets $28,462 29,392 28,974 29,989 27,838 25,838
Total debt $10,218 9,301 8,408 10,137 9,220 9,731
Total shareholders’ equity $13,383 15,280 15,458 15,146 14,201 11,982
Shares outstanding in millions 1,115 1,165 1,204 1,263 1,270 1,262
Per common share:
Income from continuing operations–diluted $ 3.76(1) 1.93(2,3) 2.29(5) 2.02(7) 1.80(8) 1.18(9)
Net income–diluted $ 3.76(1) 1.98(2,3,4) 2.83(5,6) 2.04(7) 1.79(8) 1.15(9,10)
Dividends declared $ 1.63 1.50 1.00 .67 .55 .40
Market price at year end $ 62.19 58.91 44.33 33.72 32.06 24.83
Company-operated restaurants 6,502 6,906 8,166 8,173 8,179 8,030
Franchised restaurants 25,465 24,471 22,880 22,593 22,317 22,157
Total Systemwide restaurants 31,967 31,377 31,046 30,766 30,496 30,187
Franchised sales(11) $54,132 46,943 41,380 38,913 37,052 33,129
(1) Includes income of $109.0 million ($0.09 per share) from the sale of the Company’s minority ownership interest in U.K.- based Pret A Manger.
(2) Includes pretax operating charges of $1.7 billion ($1.32 per share) related to impairment and other charges primarily as a result of the Company’s sale of its businesses in 18 Latin
American and Caribbean markets to a developmental licensee (see Latam transaction note to the consolidated financial statements for further details).
(3) Includes a tax benefit of $316.4 million ($0.26 per share) resulting from the completion of an Internal Revenue Service (IRS) examination of the Company’s 2003-2004 U.S. federal tax
returns.
(4) Includes income of $60.1 million ($0.05 per share) related to discontinued operations primarily from the sale of our investment in Boston Market.
(5) Includes pretax operating charges of $134 million ($98 million after tax or $0.08 per share) related to impairment and other charges (see Impairment and other charges, net note to the
consolidated financial statements for further details).
(6) Includes income of $678 million ($0.54 per share) related to discontinued operations primarily resulting from the disposal of our investment in Chipotle.
(7) Includes a net tax benefit of $73 million ($0.05 per share) comprised of $179 million ($0.14 per share) of income tax benefit resulting from the completion of an IRS examination of the
Company’s 2000-2002 U.S. tax returns, partly offset by $106 million ($0.09 per share) of incremental tax expense resulting from the decision to repatriate certain foreign earnings
under the Homeland Investment Act (HIA).
(8) Includes pretax operating charges of $130 million related to impairment and $121 million ($12 million related to 2004 and $109 million related to prior years) for a correction in the
Company’s lease accounting practices and policies, as well as a nonoperating gain of $49 million related to the sale of the Company’s interest in a U.S. real estate partnership, for a
total pretax expense of $202 million ($148 million after tax or $0.12 per share).
(9) Includes pretax operating charges of $408 million ($323 million after tax or $0.26 per share) primarily related to the disposition of certain non-McDonald’s brands and impairment.
(10)Includes a $37 million after tax charge ($0.03 per share) to reflect the cumulative effect of the adoption of Statement of Financial Accounting Standards (SFAS) No.143, “Accounting
for Asset Retirement Obligations,” which requires legal obligations associated with the retirement of long-lived assets to be recognized at their fair value at the time the obligations are
incurred.
(11)While franchised sales are not recorded as revenues by the Company, management believes they are important in understanding the Company’s financial performance because these
sales are the basis on which the Company calculates and records franchised revenues and are indicative of the financial health of the franchisee base.
McDonald’s Corporation Annual Report 2008 19