McDonalds 2013 Annual Report Download - page 42

Download and view the complete annual report

Please find page 42 of the 2013 McDonalds annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 64

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64

34 | McDonald’s Corporation 2013 Annual Report
The following table presents the fair values of derivative instruments included on the Consolidated balance sheet as of December 31,
2013 and 2012:
Derivative Assets Derivative Liabilities
In millions Balance Sheet Classification 2013 2012 Balance Sheet Classification 2013 2012
Derivatives designated for hedge accounting
Foreign currency Prepaid expenses and other
current assets $ 28.3 $ 5.0
Accrued payroll and other
liabilities $ (28.8) $ (3.5)
Interest rate Prepaid expenses and other
current assets —4.2
Commodity Miscellaneous other assets —35.3 Other long-term liabilities —(0.2)
Foreign currency Miscellaneous other assets 2.5 2.5 Other long-term liabilities (114.7) (32.1)
Interest rate Miscellaneous other assets 24.8 38.1 Other long-term liabilities (12.0) —
Total derivatives designated for hedge accounting $ 55.6 $ 85.1 $ (155.5) $ (35.8)
Derivatives not designated for hedge accounting
Equity Prepaid expenses and other
current assets $ 6.7 $ 132.3
Foreign currency Prepaid expenses and other
current assets 9.3 1.0
Accrued payroll and other
liabilities $ (23.8) $ (6.8)
Equity Miscellaneous other assets 128.2 —
Total derivatives not designated for hedge accounting $ 144.2 $ 133.3 $ (23.8) $ (6.8)
Total derivatives $ 199.8 $ 218.4 $ (179.3) $ (42.6)
The following table presents the pretax amounts affecting income and OCI for the years ended December 31, 2013 and 2012,
respectively:
In millions
Derivatives in
Fair Value
Hedging
Relationships
Gain (Loss)
Recognized in Income
on Derivative
Hedged Items in
Fair Value
Hedging
Relationships
Gain (Loss)
Recognized in Income on
Related Hedged Items
2013 2012 2013 2012
Interest rate $ (29.5) $ (13.0) Fixed-rate debt $29.5 $ 13.0
Derivatives in
Cash Flow
Hedging
Relationships
Gain (Loss) Recognized in
Accumulated OCI on
Derivative
(Effective Portion)
Gain (Loss)
Reclassified into Income
from Accumulated OCI
(Effective Portion)
Gain (Loss)
Recognized in Income on
Derivative (Amount Excluded
from Effectiveness Testing and
Ineffective Portion)
2013 2012 2013 2012 2013 2012
Commodity $ (34.1) $ 35.1
Foreign currency (65.5) (6.4) $ (50.3) $ (15.8) $ (6.1) $ (12.3)
Interest rate(1) —(4.6) (0.4) 0.5 ——
Total $ (99.6) $ 24.1 $ (50.7) $ (15.3) $ (6.1) $ (12.3)
Gain (Loss)
Recognized in
Accumulated OCI
(Effective Portion)
Derivatives Not
Designated for
Hedge
Accounting
Gain (Loss)
Recognized in
Income
on Derivative
Net Investment
Hedging Relationships
2013 2012 2013 2012
Foreign currency denominated debt $(382.8) $ (61.7) Foreign currency $ (30.2) $ (13.4)
Foreign currency derivatives (18.4) (23.3) Equity(2) 21.8 (16.2)
Total $(401.2) $ (85.0) Total $ (8.4) $ (29.6)
Gains (losses) recognized in income on derivatives are recorded in Nonoperating (income) expense, net unless otherwise noted.
(1) The amount of gain (loss) reclassified from accumulated OCI into income is recorded in Interest expense.
(2) The amount of gain (loss) recognized in income on the derivatives used to hedge the supplemental benefit plan liabilities is primarily recorded in Selling, general &
administrative expenses.