McDonalds 2009 Annual Report Download - page 29

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 (dollars in millions):
One-year ROIIC Calculation
Years ended December 31, 2009 2008 Incremental change
NUMERATOR:
Operating income $6,841.0 $6,442.9 $ 398.1
Depreciation and amortization 1,216.2 1,207.8 8.4
Currency translation(1) 324.3
Incremental adjusted operating income plus
depreciation and amortization (at constant
foreign exchange rates) $ 730.8
DENOMINATOR:
Weighted–average adjusted cash used for investing
activities(2) $1,893.8
Currency translation(1) 31.1
Weighted–average adjusted cash used for
investing activities (at constant foreign
exchange rates) $1,924.9
One-year ROIIC(3) 38.0%
(1) Represents the effect of foreign currency translation by translating results at an average
exchange rate for the periods measured.
(2) 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, 2009.
Years ended December 31,
2008 2009
Cash used for investing activities $1,624.7 $1,655.3
Less: Cash generated from investing
activities related to Pret A Manger
transaction (229.4)
Less: Cash generated from investing
activities related to Redbox transaction (144.9)
Adjusted cash used for investing
activities $1,854.1 $1,800.2
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
(3) The impact of impairment and other charges (credits), net between 2009 and 2008
benefited the one-year ROIIC by 4.0 percentage points.
Three-year ROIIC Calculation
Years ended December 31, 2009 2006 Incremental change
NUMERATOR:
Operating income $6,841.0 $4,433.0 $2,408.0
Depreciation and amortization(4) 1,216.2 1,191.0 25.2
Currency translation(5) (128.6)
Incremental adjusted operating income plus
depreciation and amortization (at constant
foreign exchange rates) $2,304.6
DENOMINATOR:
Weighted–average adjusted cash used for investing
activities(6) $5,471.9
Currency translation(5) (95.5)
Weighted–average adjusted cash used for
investing activities (at constant foreign
exchange rates) $5,376.4
Three-year ROIIC(7) 42.9%
(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, 2009.
Years ended December 31,
2006 2007 2008 2009
Cash used for investing
activities $1,274.1 $1,150.1 $1,624.7 $1,655.3
Less: Cash generated
from investing activities
related to Boston
Market & Chipotle (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)
Less: Cash generated
from investing activities
related to Redbox
transaction (144.9)
Adjusted cash used for
investing activities $1,477.9 $1,981.9 $1,854.1 $1,800.2
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
(7) The impact of impairment and other charges (credits), net between 2009 and 2006
benefited the three-year ROIIC by 4.4 percentage points.
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 2010. 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 2009 27