Income Statement

Difficulty level: Basic

The income statement presents information on the financial results of a company's business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

McDonald's Corp., Consolidated Income Statement

USD $ in thousands

 
12 months ended Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Sales by Company-operated restaurants 18,169,300  18,874,200  18,602,500  18,292,800  16,233,300 
Revenues from franchised restaurants 9,272,000  9,231,500  8,964,500  8,713,200  7,841,300 
Revenues 27,441,300  28,105,700  27,567,000  27,006,000  24,074,600 
Food & paper (6,129,700) (6,361,300) (6,318,200) (6,167,200) (5,300,100)
Payroll & employee benefits (4,756,000) (4,824,100) (4,710,300) (4,606,300) (4,121,400)
Occupancy & other operating expenses (4,402,600) (4,393,200) (4,195,200) (4,064,400) (3,638,000)
Company-operated restaurant expenses (15,288,300) (15,578,600) (15,223,700) (14,837,900) (13,059,500)
Franchised restaurants, occupancy expenses (1,697,300) (1,624,400) (1,527,000) (1,481,500) (1,377,800)
Gross margin 10,455,700  10,902,700  10,816,300  10,686,600  9,637,300 
Selling, general & administrative expenses (2,487,900) (2,385,600) (2,455,200) (2,393,700) (2,333,300)
Gains on sales of restaurant businesses 137,000  199,400  151,500  81,800  79,400 
Equity in earnings (losses) of unconsolidated affiliates (9,000) 78,200  143,500  178,000  164,300 
Asset dispositions and other expense (146,600) (30,400) (51,500) (23,000) (74,600)
Other operating income (expense), net (18,600) 247,200  243,500  236,800  169,100 
Operating income 7,949,200  8,764,300  8,604,600  8,529,700  7,473,100 
Interest expense, net of capitalized interest (570,500) (521,900) (516,600) (492,800) (450,900)
Nonoperating income (expense), net (6,700) (37,900) (9,000) (24,700) (21,900)
Income before provision for income taxes 7,372,000  8,204,500  8,079,000  8,012,200  7,000,300 
Provision for income taxes (2,614,200) (2,618,600) (2,614,200) (2,509,100) (2,054,000)
Net income 4,757,800  5,585,900  5,464,800  5,503,100  4,946,300 
Source: McDonald's Corp., Annual Reports
Item Description The company
Revenues Aggregate revenue recognized during the period (derived from goods sold, services rendered, insurance premiums, or other activities that constitute an entity's earning process). For financial services companies, also includes investment and interest income, and sales and trading gains. McDonald's Corp.'s revenues increased from 2012 to 2013 but then declined significantly from 2013 to 2014.
Operating income The net result for the period of deducting operating expenses from operating revenues. McDonald's Corp.'s operating income increased from 2012 to 2013 but then declined significantly from 2013 to 2014.
Income before provision for income taxes Sum of operating profit and nonoperating income (expense) before income (loss) from equity method investments, income taxes, extraordinary items, cumulative effects of changes in accounting principles, and noncontrolling interest. McDonald's Corp.'s income before provision for income taxes increased from 2012 to 2013 but then declined significantly from 2013 to 2014.
Net income The portion of consolidated profit or loss for the period, net of income taxes, which is attributable to the parent. If the entity does not present consolidated financial statements, the amount of profit or loss for the period, net of income taxes. McDonald's Corp.'s net income increased from 2012 to 2013 but then declined significantly from 2013 to 2014.

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