McDonalds 2011 Annual Report Download - page 15

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Consolidated Operating Results
Operating results
2011 2010 2009
Dollars in millions, except per share data Amount
Increase/
(decrease) Amount Increase/
(decrease) Amount
Revenues
Sales by Company-operated restaurants $ 18,293 13% $ 16,233 5% $ 15,459
Revenues from franchised restaurants 8,713 11 7,842 8 7,286
Total revenues 27,006 12 24,075 6 22,745
Operating costs and expenses
Company-operated restaurant expenses 14,838 14 13,060 3 12,651
Franchised restaurants-occupancy expenses 1,481 8 1,378 6 1,302
Selling, general & administrative expenses 2,394 3 2,333 4 2,234
Impairment and other charges (credits), net (4) nm 29 nm (61)
Other operating (income) expense, net (233) (18) (198) 11 (222)
Total operating costs and expenses 18,476 11 16,602 4 15,904
Operating income 8,530 14 7,473 9 6,841
Interest expense 493 9 451 (5) 473
Nonoperating (income) expense, net 25 13 22 nm (24)
Gain on sale of investment nm (95)
Income before provision for income taxes 8,012 14 7,000 8 6,487
Provision for income taxes 2,509 22 2,054 6 1,936
Net income $ 5,503 11% $ 4,946 9% $ 4,551
Earnings per common share—diluted $ 5.27 15% $ 4.58 11% $ 4.11
Weighted-average common shares outstanding—
diluted 1,044.9 1,080.3 1,107.4
nm Not meaningful.
IMPACT OF FOREIGN CURRENCY TRANSLATION ON REPORTED RESULTS
While changes in foreign currency exchange rates affect reported results, McDonald’s mitigates exposures, where practical, by financing
in local currencies, hedging certain foreign-denominated cash flows, and purchasing goods and services in local currencies.
In 2011, foreign currency translation had a positive impact on consolidated operating results driven by the stronger Euro and Austral-
ian Dollar as well as most other currencies. In 2010, foreign currency translation had a positive impact on consolidated operating results
driven by stronger global currencies, primarily the Australian Dollar and Canadian Dollar, partly offset by the weaker Euro. In 2009, for-
eign currency translation had a negative impact on consolidated operating results, primarily caused by the weaker Euro, British Pound,
Russian Ruble, Australian Dollar and Canadian Dollar.
Impact of foreign currency translation on reported results
Reported amount Currency translation
benefit/(cost)
In millions, except per share data 2011 2010 2009 2011 2010 2009
Revenues $27,006 $24,075 $22,745 $ 944 $ 188 $(1,340)
Company-operated margins 3,455 3,173 2,807 134 35 (178)
Franchised margins 7,232 6,464 5,985 213 (14) (176)
Selling, general & administrative expenses 2,394 2,333 2,234 (55) (12) 75
Operating income 8,530 7,473 6,841 301 13 (273)
Net income 5,503 4,946 4,551 195 13 (164)
Earnings per common share—diluted 5.27 4.58 4.11 0.19 0.01 (0.15)
McDonald’s Corporation Annual Report 2011 13