Statement of Comprehensive Income
Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.
McDonald’s Corp., consolidated statement of comprehensive income
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Net Income
- Net income demonstrated a generally upward trend from 2020 to 2023, rising from $4,731 million in 2020 to a peak of $8,469 million in 2023. However, there was a slight decline in 2024 to $8,223 million. This indicates strong profitability with a minor retreat in the most recent year.
- Gain (Loss) Recognized in Accumulated Other Comprehensive Income (AOCI), Including Net Investment Hedges
- This item was volatile over the period, showing a positive value of $46 million in 2020 but flipping to negative amounts in subsequent years, notably -$216 million in 2021, -$354 million in 2022, and -$231 million in 2024, interrupted only by a positive $136 million in 2023. The fluctuations suggest exposure to gains and losses related to investments and hedges with no consistent direction.
- Reclassification of (Gain) Loss to Net Income
- Values were generally small, with an unusual spike to $504 million in 2022. Apart from this anomaly, the numbers ranged roughly between $17 million and $35 million, indicating occasional adjustments from other comprehensive income to net income.
- Foreign Currency Translation Adjustments, Net of Tax
- Adjustments fluctuated considerably, starting at $63 million in 2020, turning negative in 2021 (-$182 million), then positive again in 2022 ($150 million) and 2023 ($136 million), before returning to negative in 2024 (-$196 million). These variations reflect significant impacts from currency exchange rate movements on the reported financials.
- Gain (Loss) Recognized in AOCI
- This sub-item displayed considerable volatility, with losses and gains alternating each year. For example, after -$129 million in 2020, gains appeared in 2021 ($58 million) and 2022 ($160 million), then losses in 2023 (-$20 million) and a gain in 2024 ($125 million). The pattern indicates fluctuating market conditions affecting these components.
- Reclassification of (Gain) Loss to Net Income (Related to AOCI)
- This reclassification experienced some variability, with minor positive values in 2020 and 2021, a notable reversal to -$105 million in 2022, and negative values continuing in 2023 (-$17 million). The 2024 value was missing, indicating incomplete data.
- Cash Flow Hedges, Net of Tax
- The values ranged from negative in 2020 (-$123 million) to positive in 2021 ($87 million), followed by moderate positive and negative shifts in 2022 ($56 million), 2023 (-$36 million), and 2024 ($125 million). This suggests variable effectiveness or impact of cash flow hedging strategies across the years.
- Gain (Loss) Recognized in AOCI (Cash Flow Hedges)
- For cash flow hedges, this component showed losses and gains alternating years: $-44 million in 2020, gains in 2021 ($108 million), losses in 2022 (-$119 million), continuing losses in 2023 (-$70 million), and minor loss in 2024 (-$15 million). The consistent negative values following 2021 indicate challenges or unfavorable market movements impacting these hedges.
- Reclassification of (Gain) Loss to Net Income (Cash Flow Hedges)
- The reclassification entries were mostly negligible or zero in 2020 and 2023, missing for some years, and slightly negative (-$10 million) in 2024. This limited activity suggests minor adjustments relating to cash flow hedge gains or losses impacting net income.
- Defined Benefit Pension Plans, Net of Tax
- This item mirrored the pattern seen in cash flow hedges, with a negative $44 million in 2020, positive $108 million in 2021, followed by losses in subsequent years (-$119 million in 2022, -$69 million in 2023, and -$25 million in 2024), indicating fluctuating pension-related gains and losses, likely due to changes in actuarial assumptions or asset performance.
- Other Comprehensive Income (Loss), Net of Tax
- The other comprehensive income/loss showed a positive comeback from a loss of $104 million in 2020 to a gain of $13 million in 2021 and $87 million in 2022, but then declined to a gain of only $31 million in 2023 before swinging back to a loss of $96 million in 2024. This points to inconsistent performance in components outside net income, impacting overall comprehensive income.
- Comprehensive Income
- Comprehensive income trends largely tracked net income, starting at $4,626 million in 2020, peaking at $8,499 million in 2023, and dipping slightly to $8,127 million in 2024. The fluctuations in other comprehensive income components caused some variation but did not drastically shift the overall positive trend in comprehensive income.