McDonalds 2008 Annual Report Download - page 41

The reconciliations to the most comparable measurements, in accordance with accounting principles generally accepted in the U.S.,
for the numerator and denominator of the one-year and three-year ROIIC are as follows:
One-year ROIIC calculation
Years ended December 31, 2008 2007 Incremental change
NUMERATOR:
Operating income $6,442.9 $3,879.0 $ 2,563.9
Depreciation and amortization(1) 1,207.8 1,192.8 15.0
Latam transaction 1,665.3 (1,665.3)
Currency translation(2) (180.7)
Incremental adjusted operating income plus
depreciation and amortization
(at constant foreign exchange rates) $ 732.9
DENOMINATOR:
Weighted-average adjusted cash used for investing
activities(3) $ 1,911.9
Currency translation(2) (25.9)
Weighted-average adjusted cash used for
investing activities (at constant foreign
exchange rates) $ 1,886.0
One-year ROIIC 38.9%
(1) Represents depreciation and amortization from continuing operations.
(2) Represents the effect of foreign currency translation by translating results at an average
exchange rate for the periods measured.
(3) Represents one-year weighted-average adjusted cash used for investing activities,
determined by applying the weightings below to the adjusted cash used for investing
activities for each quarter in the two-year period ended December 31, 2008.
Years ended December 31,
2007 2008
Cash used for investing activities $1,150.1 $1,624.7
Less: Cash generated from investing
activities related to Boston Market (184.3)
Less: Cash generated from investing
activities related to Latam transaction (647.5)
Less: Cash generated from investing
activities related to Pret A Manger
transaction (229.4)
Adjusted cash used for investing activities $1,981.9 $1,854.1
AS A PERCENT
Quarters ended:
March 31 12.5% 87.5%
June 30 37.5 62.5
September 30 62.5 37.5
December 31 87.5 12.5
Three-year ROIIC calculation
Years ended December 31, 2008 2005 Incremental change
NUMERATOR:
Operating income $6,442.9 $3,984.0 $2,458.9
Depreciation and amortization(4) 1,207.8 1,187.6 20.2
Currency translation(5) (508.3)
Incremental adjusted operating income plus
depreciation and amortization
(at constant foreign exchange rates) $1,970.8
DENOMINATOR:
Weighted-average adjusted cash used for investing
activities(6) $5,267.5
Currency translation(5) (14.0)
Weighted-average adjusted cash used for
investing activities (at constant foreign
exchange rates) $5,253.5
Three-year ROIIC 37.5%
(4) Represents depreciation and amortization from continuing operations.
(5) Represents the effect of foreign currency translation by translating results at an average
exchange rate for the periods measured.
(6) Represents three-year weighted-average adjusted cash used for investing activities,
determined by applying the weightings below to the adjusted cash used for investing
activities for each quarter in the four-year period ended December 31, 2008.
Years ended December 31,
2005 2006 2007 2008
Cash used for investing
activities $1,817.8 $1,274.1 $1,150.1 $1,624.7
Less:
Cash (generated from)
used for investing activities
related to Boston Market
& Chipotle 109.0 (203.8) (184.3)
Less: Cash generated
from investing activities
related to Latam
transaction (647.5)
Less: Cash generated
from investing activities
related to Pret A
Manger transaction (229.4)
Adjusted cash used for
investing activities $1,708.8 $1,477.9 $1,981.9 $1,854.1
AS A PERCENT
Quarters ended:
March 31 12.5% 100.0% 100.0% 87.5%
June 30 37.5 100.0 100.0 62.5
September 30 62.5 100.0 100.0 37.5
December 31 87.5 100.0 100.0 12.5
Risk factors and cautionary statement about forward-looking information
This report includes forward-looking statements about our plans and future performance, including those under Outlook for 2009. These
statements use such words as “may,” “will,” “expect,” “believe” and “plan.” They reflect our expectations and speak only as of the date of
this report. We do not undertake to update them. Our expectations (or the underlying assumptions) may change or not be realized, and
you should not rely unduly on forward-looking statements. We have identified the principal risks and uncertainties that affect our
performance in the Company’s filings with the Securities and Exchange Commission, and investors are urged to consider these risks and
uncertainties when evaluating our historical and expected performance.
McDonald’s Corporation Annual Report 2008 39