What is the main purpose of this 8-K filing?

The main purpose of this 8-K filing is to inform investors about McDonald's retrospective adoption of an amendment to the Financial Accounting Standards Board's Accounting Standards Codification Topic 220, 'Comprehensive Income' (ASC 220). This change affects how comprehensive income is presented in financial statements.

Does this accounting change affect McDonald's reported net income or financial performance?

No, this amendment to ASC 220 is a presentation change. It does not alter the underlying recognition and measurement requirements, meaning it does not change McDonald's reported net income or its overall financial performance. The figures for net income remain the same; only the display of comprehensive income is affected.

What is 'Other Comprehensive Income (Loss)' and why was it negative in 2011?

Other Comprehensive Income (or Loss) includes certain gains and losses that are not reported in net income but affect the company's equity. In 2011, McDonald's reported a negative Other Comprehensive Income of $303.2 million, largely driven by foreign currency translation adjustments ($285.1 million loss) related to its international operations. This means that while the company was profitable (net income of $5,503.1 million), certain currency movements and other items reduced its total comprehensive income to $5,199.9 million.

Does this filing contain any new financial information or updates on the company's current business operations?

No, this filing is strictly for reporting a change in accounting presentation standards. It does not contain any new financial information beyond what was already disclosed in the 2011 10-K, nor does it reflect any events or business activities that have occurred since the filing of that annual report.

MCD 8-K SEC Disclosure — Sep 28, 2012

Summary

McDonald's Corporation filed an 8-K on September 28, 2012, to report the retrospective adoption of an amendment to Accounting Standards Codification Topic 220, "Comprehensive Income" (ASC 220). This accounting change primarily affects the presentation of comprehensive income information within the company's financial statements, specifically for the year ended December 31, 2011, and prior periods as disclosed in their 2011 10-K. It's important for investors to understand that this adoption is a presentation change and does not alter the underlying recognition or measurement of the company's financial results. The filing includes the unaudited Consolidated Statements of Comprehensive Income for the three years ending December 31, 2011, which illustrates the impact of the ASC 220 amendment. While net income figures remain the same, the presentation now clearly separates "Other comprehensive income (loss), net of tax." For the year 2011, this included a significant foreign currency translation adjustment loss of $285.1 million, leading to a total other comprehensive loss of $303.2 million and a comprehensive income of $5,199.9 million. Investors should note that this report serves an informational purpose regarding the accounting standard change and does not amend or restate prior financial statements or reflect any post-2011 events.

Key Highlights

1McDonald's adopted ASC 220 amendment for presentation of comprehensive income, impacting historical financial statements (2011 10-K).
2The change is purely presentational; it does not affect the recognition or measurement of the company's financial results.
3Unaudited Consolidated Statements of Comprehensive Income for 2011, 2010, and 2009 are provided to illustrate the new presentation.
4In 2011, 'Other comprehensive income (loss)' was negative $303.2 million, primarily due to foreign currency translation adjustments ($285.1 million).
5Total comprehensive income for 2011 was $5,199.9 million, compared to net income of $5,503.1 million.
6The filing is for informational purposes only and does not amend or restate previously issued financial statements.
7No information in this report reflects events occurring after the filing of the 2011 Form 10-K.

MCDONALDS CORP 8-K Report, Corporate Update (Sep 28, 2012)

Summary

Key Highlights

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