11-K 1 d943703d11k.htm FORM 11-K FORM 11-K
Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 11-K

FOR ANNUAL REPORTS OF EMPLOYEE STOCK PURCHASE, SAVINGS AND

SIMILAR PLANS PURSUANT TO SECTION 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

(Mark One)

x Annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934

For the fiscal year ended December 31, 2014

Or

 

¨ Transition report pursuant to Section 15(d) of the Securities Exchange Act of 1934

For the transition period from              to             

Commission file number 001-5231

 

A. Full title of the plan and the address of the plan, if different from that of the issuer named below.

McDONALD’S CORPORATION PROFIT SHARING AND SAVINGS PLAN

 

B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office.

McDonald’s Corporation

McDonald’s Plaza

Oak Brook, Illinois 60523

 

 


Table of Contents

McDONALD’S CORPORATION

PROFIT SHARING AND SAVINGS PLAN

FINANCIAL STATEMENTS

December 31, 2014 and 2013

CONTENTS

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

     1   

FINANCIAL STATEMENTS

  

STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS AS OF DECEMBER 31, 2014

     2   

STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS AS OF DECEMBER 31, 2013

     3   

STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS FOR THE YEAR ENDED DECEMBER 31, 2014

     4   

NOTES TO FINANCIAL STATEMENTS

     5   

SUPPLEMENTAL SCHEDULE

  

SCHEDULE H, LINE 4i – SCHEDULE OF ASSETS (HELD AT END OF YEAR)

     15   

SIGNATURE

     24   

EXHIBIT

  

EXHIBIT 23.1 – CONSENT OF CROWE HORWATH LLP

  


Table of Contents

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

McDonald’s Corporation

  Profit Sharing Administrative Committee

Oak Brook, Illinois

We have audited the accompanying statements of net assets available for benefits of the McDonald’s Corporation Profit Sharing and Savings Plan as of December 31, 2014 and 2013, and the related statement of changes in net assets available for benefits for the year ended December 31, 2014. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2014 and 2013, and the changes in net assets available for benefits for the year ended December 31, 2014 in conformity with U.S. generally accepted accounting principles.

The supplemental Schedule H, Line 4i - Schedule of Assets (Held at End of Year) as of December 31, 2014 has been subjected to audit procedures performed in conjunction with the audit of McDonald’s Corporation Profit Sharing and Savings Plan’s financial statements. The supplemental schedule is the responsibility of the Plan’s management. Our audit procedures included determining whether the information presented in the supplemental schedule reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental schedule. In forming our opinion on the supplemental schedule, we evaluated whether the supplemental schedule, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental schedule is fairly stated in all material respects in relation to the financial statements as a whole.

/s/ Crowe Horwath LLP

Oak Brook, Illinois

June 24, 2015

 

 

1.


Table of Contents

McDONALD’S CORPORATION PROFIT SHARING AND SAVINGS PLAN

STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS

December 31, 2014

(Amounts in thousands)

 

 

 

     Participant-
Directed
Investments
    ESOP         
       Allocated
Account
    Unallocated
Account
     Total
2014
 

ASSETS

         

Investments, at fair value

         

US Treasury securities

   $ 31,582      $ —       $ —        $ 31,582   

Mortgage backed securities and corporate bonds

     23,525        —         —          23,525   

Mutual funds

     274,031        —         —          274,031   

American depository receipts and common stock other than McDonald’s Corporation common stock

     335,716        —         —          335,716   

McDonald’s Corporation common stock

     763,217        312,045        83,480         1,158,742   

Collective funds

     1,347,424        5,161        1,586         1,354,171   

Wrapper contracts

     85        —         —          85   
  

 

 

   

 

 

   

 

 

    

 

 

 

Total investments, at fair value

     2,775,580        317,206        85,066         3,177,852   

Receivables

         

Company contributions

     14,678        —         —          14,678   

Accrued income

     541        —         —          541   

Pending trades due from brokers

     5,281        —         —          5,281   

Other Receivables

     25        —         —          25   

Interfund receivables

     76        (76     —          —    

Participant loans

     34,349        —         —          34,349   
  

 

 

   

 

 

   

 

 

    

 

 

 

Total receivables

     54,950        (76     —          54,874   
  

 

 

   

 

 

   

 

 

    

 

 

 

Total assets

     2,830,530        317,130        85,066         3,232,726   

LIABILITIES

         

Management expenses payable

     671        —          —          671   

Pending trades due to brokers

     14,322        —         —          14,322   

Accrued interest expense

     —         —         521         521   

Notes payable

     —         —         15,971         15,971   

Other liabilities

     2,215        220        —          2,435   
  

 

 

   

 

 

   

 

 

    

 

 

 

Total liabilities

     17,208        220        16,492         33,920   
  

 

 

   

 

 

   

 

 

    

 

 

 

Net assets reflecting all investments at fair value

     2,813,322        316,910        68,574         3,198,806   
  

 

 

   

 

 

   

 

 

    

 

 

 

Adjustment from fair value to contract value for fully benefit-responsive investment contracts

     (1,238     —         —          (1,238
  

 

 

   

 

 

   

 

 

    

 

 

 

NET ASSETS AVAILABLE FOR BENEFITS

   $ 2,812,084      $ 316,910      $ 68,574       $ 3,197,568   
  

 

 

   

 

 

   

 

 

    

 

 

 

See accompanying notes to financial statements.

 

 

2.


Table of Contents

McDONALD’S CORPORATION PROFIT SHARING AND SAVINGS PLAN

STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS

December 31, 2013

(Amounts in thousands)

 

 

 

     Participant-
Directed
Investments
     ESOP  
        Allocated
Account
    Unallocated
Account
    Total
2013
 

ASSETS

         

Investments, at fair value

         

Interest-bearing cash

   $ 5       $ —       $ —       $ 5   

Mutual funds

     625,882         —         —         625,882   

American depository receipts and common stock other than McDonald’s Corporation common stock

     319,000         —         —         319,000   

McDonald’s Corporation common stock

     881,090         341,532        133,940        1,356,562   

Collective funds

     948,956         6,230        2,339        957,525   

Wrapper contracts

     112         —         —         112   
  

 

 

    

 

 

   

 

 

   

 

 

 

Total investments, at fair value

     2,775,045         347,762        136,279        3,259,086   

Receivables

         

Company contributions

     9,411         —         —         9,411   

Accrued income

     838         —         —         838   

Pending trades due from brokers

     305         —         —         305   

Interfund receivables

     5,733         (184     (5,549     —    

Participant loans

     32,755         —         —         32,755   
  

 

 

    

 

 

   

 

 

   

 

 

 

Total receivables

     49,042         (184     (5,549     43,309   
  

 

 

    

 

 

   

 

 

   

 

 

 

Total assets

     2,824,087         347,578        130,730        3,302,395   

LIABILITIES

         

Management expenses payable

     654         —         —         654   

Pending trades due to brokers

     657         —         —         657   

Accrued interest expense

     —          —         756        756   

Notes payable

     —          —         23,179        23,179   

Other liabilities

     1,236         37        —         1,273   
  

 

 

    

 

 

   

 

 

   

 

 

 

Total liabilities

     2,547         37        23,935        26,519   
  

 

 

    

 

 

   

 

 

   

 

 

 

Net assets reflecting all investments at fair value

     2,821,540         347,541        106,795        3,275,876   
  

 

 

    

 

 

   

 

 

   

 

 

 

Adjustment from fair value to contract value for fully benefit-responsive investment contracts

     2,732         —         —         2,732   
  

 

 

    

 

 

   

 

 

   

 

 

 

NET ASSETS AVAILABLE FOR BENEFITS

   $ 2,824,272       $ 347,541      $ 106,795      $ 3,278,608   
  

 

 

    

 

 

   

 

 

   

 

 

 

See accompanying notes to financial statements.

 

 

3.


Table of Contents

McDONALD’S CORPORATION PROFIT SHARING AND SAVINGS PLAN

STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS

Year ended December 31, 2014

(Amounts in thousands)

 

 

 

     Participant-
Directed
Investments
    ESOP  
       Allocated
Account
    Unallocated
Account
    Total
2014
 

Additions to net assets attributed to:

        

Net appreciation in fair value of investments

        

Mutual funds

   $ 26,377      $ —       $ —       $ 26,377   

US Treasury securities

     202        —         —         202   

Mortgage backed securities and corporate bonds

     6        —         —         6   

American depository receipts and common stock other than McDonald’s Corporation common stock

     14,110        —         —         14,110   

McDonald’s Corporation common stock

     (28,588     (11,112     (3,407     (43,107

Collective funds

     38,153        —         —         38,153   

Interest income

     15,759        1        —         15,760   

Dividends

     36,727        11,284        3,478        51,489   

Commission recapture

     3        —         —         3   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

     102,749        173        71        102,993   

Contributions

        

Company

     35,879        22,491        4,521        62,891   

Participant

     55,545        —         —         55,545   

Rollovers

     2,344        —         —         2,344   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total contributions

     93,768        22,491        4,521        120,780   

Interfund transfers-in

     25,798        —         —         25,798   

Participant loan interest income

     1,337        —         —         1,337   

Other

     97        —         —         97   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total net additions

     223,749        22,664        4,592        251,005   

Deductions from net assets attributed to:

        

Benefits paid to terminated participants and withdrawals

     232,824        27,441        —         260,265   

Management and administrative expenses

     3,041        56        —         3,097   

Interfund transfers-out

     —         25,798        —         25,798   

Interest expense

     —         —         1,284        1,284   

Company matching with profit sharing forfeitures

     72        —         —         72   

Company matching with ESOP shares

     —         —         41,529        41,529   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total deductions

     235,937        53,295        42,813        332,045   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase/decrease

     (12,188     (30,631     (38,221     (81,040

Net assets available for benefits

        

Beginning of year

     2,824,272        347,541        106,795        3,278,608   
  

 

 

   

 

 

   

 

 

   

 

 

 

End of year

   $ 2,812,084      $ 316,910      $ 68,574      $ 3,197,568   
  

 

 

   

 

 

   

 

 

   

 

 

 

See accompanying notes to financial statements.

 

 

4.


Table of Contents

McDONALD’S CORPORATION PROFIT SHARING AND SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2014 and 2013

 

 

 

NOTE 1 - DESCRIPTION OF PLAN

General: The McDonald’s Corporation Profit Sharing and Savings Plan (the Plan) was amended and restated in its entirety as of January 1, 2012. The Plan has been amended four times subsequent to this date, on October 18, 2012, April 30, 2013, August 23, 2013 and May 30, 2014.

The Plan is administered by a committee of officers (Administrative Committee) appointed by the Chief Executive Officer of McDonald’s Corporation (the Company or McDonald’s). Participants should refer to the Summary Plan Description and Prospectus for a more complete description and up-to-date information.

Eligibility: In order to participate in the 401(k) feature of the Plan, all eligible employees must be at least 21 years of age, have a valid Social Security number, and be on the U.S. payroll of the Company or a participating employer. The term “Company” includes McDonald’s Corporation and all participating employers in describing eligibility and contributions below.

Restaurant management employees and staff employees (including part-time staff employees) are eligible to make 401(k) contributions, up to 50% of eligible compensation, beginning the first day of the month after completing one full calendar month of employment. All other employees are eligible to make 401(k) contributions after one year of eligibility service as defined by the Plan document. Restaurant management employees, who are not contributing to the Plan, are enrolled automatically at a 1% contribution level as soon as they have completed one year of service and attained age 21. Matching contributions are provided to eligible employees after one year of eligibility service as defined by the Plan document.

Contributions: Each year, participants may contribute up to 50% of their eligible pre-tax annual compensation, as defined by the Plan subject to Internal Revenue Service (the IRS) annual limits. Highly compensated employees under IRS rules are not able to make 401(k) contributions in their second calendar year of employment until the first of the month on or after they complete one anniversary year with at least 1,000 hours of service under the Plan.

Participants who have attained age 50 before the end of the Plan year are eligible to make catch-up contributions subject to IRS limits, and in addition, may contribute more than 50% if payroll tax and other withholding requirements are met. In accordance with Plan procedures, participants may roll over money into the Plan if it is from a: Qualified Plan, Section 403(b) tax-sheltered annuity plan, Section 457 deferred compensation plan of a state or local government entity, SIMPLE 401(k) plan, Section 403(a) annuity plan, Traditional IRA, SIMPLE IRA with at least two years participation, IRA set up to receive a distribution from an eligible employer plan or Federal thrift plan under section 7701(j).

Participants direct the investment of their contributions and Company contributions into various investment options offered by the Plan. The investment funds under the Plan are Stable Value Fund, Intermediate Bond Fund, Global Bond Fund, Blended Stock/Bond Fund, Diversified Stock Fund, S&P 500 Index Fund, International Stock Fund, International Stock Index Fund, Real Estate Securities Fund, Small Cap Index Fund, Aggressive Stock Fund, McDonald’s Common Stock Fund, and the McDonald’s ESOP Stock Fund. No more than 20% of a participant’s future 401(k) contributions may be invested in the McDonald’s Common Stock Fund.

The Company matches (after one year of eligibility service and attainment of age 21) 300% of the first 1% of eligible compensation (as defined by the Plan) and 100% of the next 4% of eligible compensation that a participant contributes to the Plan. A discretionary profit-sharing match may be contributed at the option of the Compensation Committee of the Board of Directors of the Company (the Board). For the year ended December 31, 2014, the Company made a 2% discretionary profit sharing match to the Plan. The discretionary match is allocated after the end of the year to participants eligible to share in matching contributions based on participant 401(k) contributions up to 1% of eligible compensation. ESOP shares, to the extent available, are used to make matching contributions.

 

 

(Continued)

5.


Table of Contents

McDONALD’S CORPORATION PROFIT SHARING AND SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2014 and 2013

 

 

 

NOTE 1 - DESCRIPTION OF PLAN (Continued)

 

Participant Accounts: Participants can elect, on a daily basis, to have their account balances, as well as future deferrals and Company contributions, invested in 1% increments in one or any combination of the Plan’s investment funds, including Company stock. For participants who are automatically enrolled, the participant’s 401(k) contributions are invested in the Blended Stock/Bond Fund and after 30 days are managed by Guided Choice, a managed account provider, unless the participant makes an investment election. Company regular matching contributions for each payroll period and Company discretionary matching contributions, if any, are invested in the McDonald’s ESOP Stock Fund for employees who are automatically enrolled in the Plan until the participant elects to direct such amounts to other funds offered. A participant may change how his/her existing account balance is invested at any time, but a participant may not transfer any amount into and out of the same fund more than two times within any rolling 90 day period. Participants are always able to transfer out of any fund into the Stable Value Fund even if they exceed this limit.

Each participant’s account is credited with the participant’s contribution and allocations of (a) the Company’s matching contribution and discretionary profit sharing match (if any) and (b) Plan earnings, and charged with an allocated portion of investment expenses. Allocations are based on participant earnings or account balances as defined in the Plan.

Leveraged Employee Stock Ownership Plan (Leveraged ESOP): The trustees, individuals appointed by the Compensation Committee of the Board, are authorized to invest certain assets of the Plan in shares of Company stock and to borrow money to acquire Company stock. In September 1989, the Leveraged ESOP borrowed $200 million and used the proceeds of the loan to purchase 27,826,084 shares of McDonald’s Series B Convertible Preferred Stock. The Preferred shares were redeemed by the Company for Common Stock in 1992 and 1995. In April 1991, the trustees borrowed $100 million to purchase 12,075,468 shares of McDonald’s Series C Convertible Preferred Stock, which were redeemed by the Company for Common Stock in 1995.

The Company is required to make sufficient cash contributions to the Plan to pay the principal and interest on the loans. Released ESOP shares are used to make matching Company allocations. The ESOP shares allocated to participant accounts are held by The Northern Trust Company (Northern Trust), the custodian of the Plan. The unallocated ESOP shares are also held at Northern Trust as collateral for loans from the Company to the Plan. Unallocated ESOP dividends are invested in an interest-bearing account until the note payment is due.

In 1999, the Leveraged ESOP loans were refinanced as discussed in Note 6, so that the last loan payment and allocation of ESOP Common Stock will occur in 2018.

During 2014, 430,087 shares were released from the unallocated ESOP shares with a fair value of approximately $41,529,000.

Vesting: All participants’ accounts under the Plan are 100% vested.

Diversification: Participants can elect to fully diversify all accounts in the Plan, regardless of age.

Loans: Participants may borrow from their fund accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of their vested balance reduced by the participants’ highest outstanding loan balance during the preceding 12-month period. All loans are currently subject to a $75 processing fee. Loan terms range from 12 months up to 4.5 years. Participants may not have more than one loan from the Plan outstanding at any time. The loans are secured by the balance in the participant’s account and bear interest based on the prime rate in effect on the first day of the month in which the loan is requested, plus 1%. Principal and interest are paid ratably through payroll deductions.

Payment of Benefits: Participants who terminate their employment with the Company and all other companies or entities that are owned or controlled 80% or more by the Company are entitled to receive the interest in their Plan accounts within a reasonable time following their termination. A terminated participant with benefits in excess of $1,000 will not receive a distribution from the Plan until age 70 1/2 unless an earlier distribution is elected.

Such accounts will continue to share in the allocation of investment income, and accounts will continue to be invested in accordance with the participant’s investment elections (See Note 1, Contributions). Distributions may be in the form of a lump sum or installment payments or a combination of lump sum and installment payments.

 

 

(Continued)

6.


Table of Contents

McDONALD’S CORPORATION PROFIT SHARING AND SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2014 and 2013

 

 

 

NOTE 1 - DESCRIPTION OF PLAN (Continued)

 

Participants who terminate employment after satisfying the requirements to make deferrals and are subsequently rehired can resume making deferrals as soon as administratively feasible.

Forfeitures: Amounts unclaimed for two years are considered forfeitures. These forfeitures, resulting from unclaimed amounts, are used to make a portion of the Company contribution.

In-Service Withdrawals: Participants 59 1/2 or older and terminated participants may withdraw all or any part of their account balances under the Plan at any time. The Plan permits participants to withdraw up to 100% of their ESOP, Profit Sharing, Stock Sharing, Investment Savings, and Rollover accounts at any time.

Pass Through Dividend Election: Participants are offered the choice of having dividends earned on shares of McDonald’s common stock paid directly to them in cash or reinvested in their accounts in McDonald’s stock.

Voting: Participants are entitled to direct the Trustees in voting shares of McDonald’s stock credited to their accounts as well as those shares not voted by other participants and unallocated shares held in the ESOP feature of the Plan.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting: The financial statements of the Plan are prepared on the accrual basis of accounting.

Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Administrative Committee to make estimates and assumptions that affect the reported amounts of assets, liabilities, and changes therein, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates.

Investment Valuation: The Plan’s investments are reported at fair value. Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date.

Fair value is the price that would be received by the Plan for an asset or paid by the Plan to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date in the Plan’s principal or most advantageous market for the asset or liability. Fair value measurements are determined by maximizing the use of observable inputs and minimizing the use of unobservable inputs when measuring fair value. The hierarchy places the highest priority on unadjusted quoted market prices in active markets for identical assets or liabilities (level 1 measurements) and gives the lowest priority to unobservable inputs (level 3 measurements). The three levels of inputs within the fair value hierarchy are defined as follows:

 

   

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Plan has the ability to access as of the measurement date.

 

   

Level 2: Significant other observable inputs other than level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

 

   

Level 3: Significant unobservable inputs that reflect the Plan’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

In some cases, a valuation technique used to measure fair value may include inputs from multiple levels of the fair value hierarchy. The lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy.

The following are descriptions of the valuation methods and assumptions used for investments of the Plan.

Common stocks and American Depository Receipts: The fair values of publicly traded common stocks and American Depository Receipts (ADR) are determined by obtaining quoted prices on nationally recognized securities exchanges (level 1 inputs).

 

 

(Continued)

7.


Table of Contents

McDONALD’S CORPORATION PROFIT SHARING AND SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2014 and 2013

 

 

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

Mutual funds: The fair values of mutual funds are valued at the daily closing price as reported by the fund. Mutual funds held by the Plan are open-end mutual funds that are registered with the Securities and Exchange Commission (level 1 inputs). These funds are required to publish their daily net asset value (“NAV”) and to transact at that price. The mutual funds held by the Plan are deemed to be actively traded.

U.S. Treasury securities: Fair values of U.S. Treasury bonds reflect the closing price reported in the active market in which the security is traded (level 1 inputs).

Mortgage-backed securities: Mortgage-backed securities (MBS) are types of asset-backed securities that are secured by a mortgage, or more commonly a collection (“pool”) of mortgages. The mortgages are sold to a group of individuals (a government agency or investment bank) that “securitizes”, or packages, the loans together into a security that can be sold to investors. The mortgages of MBS may be residential or commercial, depending on whether it is an Agency MBS or a Non-Agency MBS. The structure of an MBS may be known as “pass-through”, where the interest and principal payments from the borrower or homebuyer pass through it to the MBS holder, or it may be more complex, made up of a pool of other MBSs. Other types of MBS include collateralized mortgage obligations (CMO’s, often structured as real estate mortgage investment conduits) and collateralized debt obligations (CDOs). These are classified within level 2 of the fair value hierarchy. Fair value is estimated based on models that consider the estimated cash flows of each debt tranche of the issuer, establish a benchmark yield, and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche including, but not limited to, the prepayment speed assumptions and attributes of the collateral.

Corporate bonds: Corporate bonds are debt securities issued by corporations and sold to investors and are valued using recently executed transactions, market price quotations (where observable), bond spreads or credit default swap spreads. When observable price quotations are not available, fair value is determined based on cash flow models with yield curves, bond, or single-name credit default swap spreads and recovery rates based on collateral values as key inputs. Corporate bonds are categorized within level 2 of the fair value hierarchy.

Collective trusts: The fair values of investments in collective trusts are valued as determined by the custodian based on their net asset values and recent transaction prices. The investment objectives and underlying investments of the collective trusts vary, with some holding short term investments for principal preservation, diversified portfolios of domestic or international stocks, some holding securities of companies in a particular industry sectors, some holding short-term and/or medium-term corporate, government and government agency bonds, some holding a blend of asset back securities and corporate bonds, and others holding a blend of various domestic and international stocks. Each collective trust provides for daily redemptions by the Plan at reported net asset values per share, with no advance notice requirement. The collective trusts invest primarily in securities traded on nationally recognized securities exchanges and active dealer markets and are classified within level 2 of the fair value hierarchy.

Stable value fund: The plan investments include a Stable Value Fund which is a unitized fund managed by JPMorgan solely for the Plan. The Stable Value Fund includes synthetic guaranteed investment contracts which are comprised of collective trusts, short term investments and benefit responsive wrapper contracts (see Note 4).

Wrapper contracts: Benefit responsive wrapper contracts with various insurance carriers are utilized to provide market and cash flow risk protection to the Plan for the Stable Value Fund. The fair values of the wrapper contracts associated with the synthetic investment contracts within the Stable Value Fund have been based upon the estimated replacement costs of the wrap contracts projected for the duration of the associated portfolio and discounted back to the financial statement dates (level 3 inputs).

Contract value of the synthetic guaranteed investment contracts represents contributions made under the contracts, plus earnings, less participant withdrawals and administrative expenses.

 

 

(Continued)

8.


Table of Contents

McDONALD’S CORPORATION PROFIT SHARING AND SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2014 and 2013

 

 

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

Investments measured at fair value on a recurring basis as of December 31, 2014 and 2013 are summarized below (amounts in thousands):

 

     Fair Value Measurements
at December 31, 2014 Using
 
     Quoted Prices in
Active Markets
for Identical
Assets
(Level  1)
     Significant
Other
Observable
Inputs
(Level 2)
     Significant
Unobservable
Inputs
(Level 3)
 

Investments:

        

Synthetic GIC wrapper contracts

   $ —        $ —        $ 85   

Interest-bearing cash

     —          —          —    

Collective trusts

        

Short-term investments

     —          58,491         —    

Bond/fixed income funds

     —          547,542         —    

Common stock funds

     —          748,138         —    

US Treasury securities

     31,582         —          —    

Mortgage Backed securities and corporate bonds

     —          23,525         —    

Mutual funds

        

Corporate bond funds

     52,796         —          —    

US common stock

     221,235         —          —    

ADR & common stock, other than McDonald’s Corp. common stock

        

ADR – International large cap

     9,588         —          —    

ADR – International mid cap

     11,712         —          —    

ADR – International small cap

     232         —          —    

Common stocks – US large cap

     69,529         —          —    

Common stocks – US mid cap

     135,999         —          —    

Common stocks – US small cap

     63,650         —          —    

Common stocks – International large cap

     3,369         —          —    

Common stocks – International mid cap

     37,273         —          —    

Common stocks – International small cap

     4,364         —          —    

McDonald’s Corp. common stock

     1,158,742         —          —    
  

 

 

    

 

 

    

 

 

 
   $ 1,800,071       $ 1,377,696       $ 85   
  

 

 

    

 

 

    

 

 

 

 

 

(Continued)

9.


Table of Contents

McDONALD’S CORPORATION PROFIT SHARING AND SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2014 and 2013

 

 

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

 

     Fair Value Measurements
at December 31, 2013 Using
 
     Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
     Significant
Other
Observable
Inputs
(Level 2)
     Significant
Unobservable
Inputs
(Level 3)
 

Investments:

        

Synthetic GIC wrapper contracts

   $ —        $ —        $ 112   

Interest-bearing cash

     5         —          —    

Collective trusts

        

Short-term investments

     —          62,658         —    

Bond/fixed income funds

     —          477,898         —    

Common stock funds

     —          416,969         —    

Mutual funds

        

Corporate bond funds

     183,610         —          —    

US common stock

     400,827         —          —    

International common stock

     41,445         —          —    

ADR & common stock, other than McDonald’s Corp. common stock

        

ADR – International large cap

     24,349         —          —    

ADR – International mid cap

     100         —          —    

Common stocks – US large cap

     141,553         —          —    

Common stocks – US mid cap

     52,597         —          —    

Common stocks – US small cap

     56,897         —          —    

Common stocks – International large cap

     30,857         —          —    

Common stocks – International mid cap

     7,657         —          —    

Common stocks – International small cap

     4,990         —          —    

McDonald’s Corp. common stock

     1,356,562         —          —    
  

 

 

    

 

 

    

 

 

 
   $ 2,301,449       $ 957,525       $ 112   
  

 

 

    

 

 

    

 

 

 

The table below presents a reconciliation of Plan investments measured at fair value on a recurring basis using significant unobservable inputs (level 3) for the year ended December 31, 2014 (amounts in thousands):

 

     Fair Value Measurements Using
Significant Unobservable Inputs (Level  3)
(Wrapper Contracts)
 

Beginning balance, January 1, 2014

   $ 112   

Change in fair value of fully benefit-responsive investment contract*

     (27
  

 

 

 

Ending balance, December 31, 2014

   $ 85   
  

 

 

 

 

* Unrealized appreciation (depreciation) of the wrapper contracts associated with the fully benefit-responsive investment contract is reported as an increase (decrease) in Plan investments and as an offsetting decrease (increase) in the adjustment from fair value to contract value reported in the 2014 statement of net assets available for benefits, with no effect on the 2014 change in net assets available for benefits.

Participant Loans: Participant loans are reported at their unpaid principal balance plus any accrued but unpaid interest, with no allowance for credit losses, as repayments of principal and interest are received through payroll deductions and the notes are collateralized by the participants’ account balances.

 

 

(Continued)

10.


Table of Contents

McDONALD’S CORPORATION PROFIT SHARING AND SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2014 and 2013

 

 

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

Fair Value of Long-Term Debt: The fair value of the Plan’s long-term debt is estimated based on the current rates available to the Plan for debt of the same remaining maturities (level 2). As of December 31, 2014, the estimated fair value and carrying value of the Plan’s long-term debt was $17,929,000 and $15,971,000, respectively. As of December 31, 2013, the estimated fair value and carrying value of the Plan’s long-term debt was $26,521,000 and $23,179,000, respectively.

Unallocated Net Assets Available for Benefits: Unallocated net assets available for benefits represents the fair value of shares of McDonald’s common stock purchased through the ESOP which have not been released for allocation to participants’ accounts offset by the balance of the debt issued by the ESOP. Unallocated net assets available for benefits are reduced by the fair value of the shares as they are allocated to participants as Company matching contributions.

Payment of Benefits: Benefits are recorded at the time of payment.

NOTE 3 - INVESTMENTS

The following presents the fair values of investments that represent 5 percent or more of the Plan’s net assets at December 31, 2014 and 2013 (amounts in thousands).

 

     2014      2013  

Investments at fair value:

     

McDonald’s Corporation common stock

   $ 1,158,742       $ 1,356,562   

JP Morgan Chase Bank Intermediate Bond Fund

     199,282         209,682   

Blackrock Global Allocation Fund

     248,376         222,128   

NT Collective S&P500 Index Fund

     302,885         244,268   

NOTE 4 - INVESTMENT CONTRACTS

The Plan investments include a Stable Value Fund, managed by JPMorgan, which is a unitized fund established solely for the investment of assets of the Plan. The account is credited with earnings on the underlying investments and charged for Plan withdrawals and JPMorgan’s administrative expenses. The Stable Value Fund holds synthetic guaranteed investment contracts, with collective funds and short-term investments as underlying investments. The underlying investments and wrapper contracts of these synthetic investment contracts are included in the financial statements at fair value.

The wrapper contracts within the Stable Value Fund specify certain conditions under which distributions from the contracts would be payable at amounts below contract value. Such circumstances include the termination of the Plan, a material adverse change to the provisions of the Plan, if the employer elects to withdraw from a wrapper contract in order to switch to a different investment provider, or if the terms of a successor plan (in the event of the spin-off or sale of a division) do not meet the wrapper contract issuer’s underwriting criteria for issuance of a clone wrapper contract. The contracts limit the circumstances under which the issuer may terminate the contracts. Examples of circumstances which would allow the issuer to terminate the contracts include the Plan’s loss of its qualified status, un-cured material breaches of responsibilities, or material and adverse changes to the provisions of the Plan. If one of these events were to occur, the issuer could terminate the contracts at the market value of the underlying investments. Currently, the occurrence of an event that would cause the Plan to transact contract distributions at less than contract value is not probable.

The crediting interest rates of the contracts are based on agreed-upon formulas with the issuers, as defined in the contract agreements, but cannot be less than zero. The interest rates are reviewed on a quarterly basis for resetting. The key factors that influence future interest crediting rates could include the following: the level of market interest rates; the amount and timing of participant contributions; transfers and withdrawals into/out of the contracts; and the duration of the underlying investments backing the contracts.

 

 

(Continued)

11.


Table of Contents

McDONALD’S CORPORATION PROFIT SHARING AND SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2014 and 2013

 

 

 

NOTE 4 - INVESTMENT CONTRACTS (Continued)

 

The Plan’s allocable share of the resulting gains and losses in the fair value of the investment contracts relative to the contract value is reflected as an adjustment from fair value to contract value on the statement of net assets as of December 31, 2014 and 2013.

 

     2014     2013  

Average contract yield, in the aggregate for all contracts:

    

Based on annualized earnings (1)

     1.86     1.86

Based on interest rate credited to participants (2)

     1.57     1.61

 

(1) 

Computed by dividing the annualized one-day actual earnings of the contracts on the last day of the Plan year by the fair value of the contracts’ investments on the same date

(2) 

Computed by dividing the annualized one-day earnings credited to participants on the last day of the Plan year by the fair value of the contracts’ investments on the same date.

NOTE 5 - NONPARTICIPANT-DIRECTED INVESTMENTS

The nonparticipant directed net assets of the Plan and changes therein consist of those reflected in the financial statements as “ESOP – Unallocated Account.”

NOTE 6 - NOTES PAYABLE

In September 1989, the Leveraged ESOP issued $200 million of 7.67% Guaranteed ESOP Notes, Series A, for 15 years with a final maturity of September 15, 2004. In April 1991, the Leveraged ESOP issued $100 million of 7.30% Guaranteed ESOP Notes, Series B, for 15 years with a final maturity of June 1, 2006. In November 1999, the Leveraged ESOP paid down $84,740,000 of these notes and refinanced both the Series A and Series B Notes. At that time, the Leveraged ESOP issued a $104,672,800, 7.11% ESOP Note, for 19 years with a final maturity of July 15, 2018, and a $28,305,658, 7.11% ESOP Note, for three years with a final maturity of July 15, 2002. The remaining outstanding ESOP Note is a loan directly between the ESOP and the Company.

Principal and interest payments are made according to the applicable loan schedules. Dividends on the converted common stock and Company contributions are used to repay the loans.

The Series A/B Notes are collateralized by unallocated shares of McDonald’s common stock, valued at $83,480,554 at December 31, 2014. All Notes are guaranteed by the Company. Holders of the Notes have no recourse against the assets of the ESOP, except for such collateralized shares, cash contributions to the ESOP, and earnings attributable to such collateralized shares or contributions. The unallocated shares of McDonald’s common stock may be released from collateral under certain circumstances without the consent of the holders of the Notes.

Following are maturities of the Notes for each of the next four years (amounts in thousands):

 

     Series A
Notes
     Series B
Notes
     Total  

2015

   $ 4,481       $ 2,257       $ 6,738   

2016

     2,721         1,371         4,092   

2017

     1,962         988         2,950   

2018

     1,457         734         2,191   
  

 

 

    

 

 

    

 

 

 

Total over remaining life of notes

   $ 10,621       $ 5,350       $ 15,971   
  

 

 

    

 

 

    

 

 

 

NOTE 7 - PLAN TERMINATION

Although it has not expressed any intent to do so, the McDonald’s Corporation has the right under the Plan to allow an employer to discontinue its contributions at any time and the Company may terminate the Plan subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).

 

 

(Continued)

12.


Table of Contents

McDONALD’S CORPORATION PROFIT SHARING AND SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2014 and 2013

 

 

 

NOTE 8 - ADMINISTRATIVE FEES

The investment managers’ fees applicable to each investment fund are netted against the related investment income before investment income is allocated to participants’ accounts. Fees for managed account services provided by an independent third-party are charged directly to participant accounts only for individuals that use this service. Revenue sharing received from investments in mutual funds reduces administrative fees. Remaining administrative fees associated with the Plan are paid by the Company. Effective March 3, 2014, the Plan no longer holds investments in mutual funds with revenue sharing.

NOTE 9 - INCOME TAX STATUS

The Internal Revenue Service has determined and informed the Company by letter dated September 24, 2013, that the Plan and related trust are designed, including amendments adopted through October 18, 2012, in accordance with applicable sections of the Internal Revenue Code (IRC). Although the Plan has been amended several times since that date and was amended and restated, effective January 1, 2015, to reflect the change to a corporate trustee, Plan management believes that the Plan is designed and being operated in compliance with the applicable requirements of the IRC. Therefore, they continue to believe that the Plan is qualified and the related trust was tax-exempt as of the financial statement date.

Accounting principles generally accepted in the United States of America require plan management to evaluate tax positions taken by the Plan. Plan management has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2014 and 2013, there are no uncertain positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial statements. The plan is subject to routine audits by taxing authorities; however, there are currently no audits for any tax periods in progress. The plan administrator believes it is no longer subject to income tax examinations for years prior to 2011.

NOTE 10 - TRANSACTIONS WITH PARTIES IN INTEREST

During 2014, the Plan received $42,746,696 in common stock dividends from the Company. In connection with the Leveraged ESOP discussed in Note 6, $132,978,458 of debt, at an interest rate of 7.11%, was issued directly by the Company to the Plan in 1999. This loan is intended to be an exempt loan under Section 408(b)(3) of ERISA and Section 4975(d)(3) of the IRC.

During 2014, fees totaling $3,097,000 were paid by the Plan to the managers of the investments held in the Plan and an advisor to Plan participants. These transactions qualify as party-in-interest transactions.

Certain Plan assets are held in participant loans or investments managed by Northern Trust, therefore these transactions qualify as party-in-interest. A portion of the Plan’s assets are also invested in Company stock (see Note 3).

Certain administrative functions are performed by officers or employees of the Company. No such officer or employee receives compensation from the Plan.

NOTE 11 - RISKS AND UNCERTAINTIES

The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market, liquidity and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statements of net assets available for benefits.

 

 

(Continued)

13.


Table of Contents

McDONALD’S CORPORATION PROFIT SHARING AND SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2014 and 2013

 

 

 

NOTE 12 - FORM 5500 RECONCILIATION

Following is a reconciliation of net assets available for benefits per the financial statements at December 31, 2014 and 2013 to net assets per the Form 5500 (amounts in thousands):

 

     2014      2013  

Net assets available for benefits per the financial statements

   $ 3,197,568       $ 3,278,608   

Adjustment from contract value to fair value for fully benefit responsive investment contracts

     1,238         (2,732
  

 

 

    

 

 

 

Net assets per the Form 5500

   $ 3,198,806       $ 3,275,876   
  

 

 

    

 

 

 

Following is a reconciliation of the increase (decrease) in net assets available for benefits per the financial statements for the year ended December 31, 2014, to the net income per the Form 5500 (amounts in thousands):

 

Decrease in net assets available for benefits per the financial statements

   $ (81,040

Change in the adjustment from contract value to fair value for fully benefit responsive investment contracts at December 31, 2014

     3,970   
  

 

 

 

Net loss per the Form 5500

   $ (77,070
  

 

 

 

NOTE 13 - SUBSEQUENT EVENTS

Effective January 1, 2015 the Plan was amended and restated in its entirety.

Effective January 1, 2015, for participants who are automatically enrolled, Company regular matching contributions for each payroll period and Company discretionary matching contributions, if any, are invested in the Blended Stock/Bond Fund and after 30 days are managed by Guided Choice, a managed account provider, unless the participant makes an investment election.

Effective January 1, 2015, the trustee for the Plan is The Northern Trust Company.

Effective April 1, 2015, revenue sharing received from a mutual fund reduces the investment expenses for that Plan Fund. Thus, all administrative expenses associated with the Plan are paid by the Company and the only persons benefiting from revenue sharing are plan participants.

 

 

14.


Table of Contents

 

 

 

MCDONALD’S CORPORATION, EIN 36-2361282

MCDONALD’S CORPORATION PROFIT SHARING and SAVINGS PLAN, PLAN NUMBER 001

PLAN YEAR END DECEMBER 31, 2014

FORM 5500, SCHEDULE H, LINE 4I - SCHEDULE OF ASSETS HELD AT THE END OF YEAR

 

(a)    (b) (c)    (d)    (e)  
    

IDENTITY OF ISSUER/DESCRIPTION

   COST**    MARKET VALUE  
  

CORPORATE COMMON STOCKS & AMERICAN DEPOSITORY RECEIPTS

     
  

8X8 INC NEW COM

        166,510.48   
  

#REORG/COVIDIEN PLC CASH & STK MERGER MEDTRONIC HLDG 291SAC1 1-27-2015

        3,641,168.00   
  

#REORG/TREE NAME CHANGE LENDINGTREE INC NEW 291YAG1 01-08-2015

        231,113.54   
  

AAC HLDGS INC COM USD0.001

        178,593.92   
  

ABBOTT LAB COM

        1,662,228.44   
  

ACCELERON PHARMA INC COM

        142,515.68   
  

ACE LTD COM STK

        2,171,232.00   
  

ACTAVIS PLC COM

        2,678,351.05   
  

ADOBE SYS INC COM

        1,579,044.00   
  

ADR ALIBABA GROUP HLDG LTD-SP A

        1,909,065.98   
  

ADR ARM HLDS PLC SPONSORED ISIN US0420681068

        1,093,235.60   
  

ADR ASML HLDG NV NY REG 2012 (POST REV SPLIT)

        1,908,591.00   
  

ADR AXA SA SPONSORED ADR

        334,995.15   
  

ADR BASF AKTIENGESELLSCHAFT - LEVEL I

        811,384.70   
  

ADR BHP BILLITON LTD SPONSORED ADR

        1,326,852.80   
  

ADR BRIT AMERN TOB PLC SPONSORED COM STK

        1,191,303.18   
  

ADR FLAMEL TECHNOLOGIES SA SPONSORED ADR

        104,647.17   
  

ADR INDUSTRIA DE DISENO TEXTIL INDITEX SA ADR ADR

        1,595,938.00   
  

ADR NESTLE S A SPONSORED ADR REPSTG REG SH

        1,325,355.60   
  

ADR NOVARTIS AG

        1,195,314.00   
  

ADR NOVO-NORDISK A S ADR

        1,344,844.96   
  

ADR RIO TINTO PLC SPONSORED ADR

        1,667,740.48   
  

ADR SILICON MOTION TECHNOLOGY CORP SPONSORED ADR REPSTG SHS

        127,568.10   
  

ADR TENARIS S A SPONSORED ADR

        1,064,902.50   
  

ADR TENCENT HLDGS LTD ADR

        273,266.83   
  

ADR UNILEVER N V NEW YORK SHS NEW

        1,022,223.36   
  

ADR VALE S A ADR

        384,918.08   
  

ADR VODAFONE GROUP PLC NEW SPONSORED ADRNO PAR

        2,754,409.53   
  

ADR YARA INTL ASA SPONSORED ADR

        95,874.56   
  

AEGEAN MARINE PETROLEUM NETWORK INC COM STK USD0.01

        69,917.74   
  

AEGION CORP 10

        1,437,622.50   
  

AERIE PHARMACEUTICALS INC COM

        88,270.56   
  

AGCO CORP COM

        1,965,070.00   
  

AGRIUM INC COM

        189,440.00   
  

ALDER BIOPHARMACEUTICALS INC COM

        81,684.72   
  

ALEXION PHARMACEUTICALS INC COM

        1,610,686.15   
  

ALLEGION PLC COMMON STOCK

        387,776.32   
  

ALLERGAN INC COM

        1,127,152.18   
  

ALLIED MOTION TECHNOLOGIES INC COM

        7,533.42   
  

AMAG PHARMACEUTICALS INC COM STK

        133,443.22   
  

AMAZON COM INC COM

        2,533,387.05   
  

AMBARELLA INC SHS

        137,704.80   
  

AMERICAN TOWER CORP

        2,863,190.25   

 

 

15.


Table of Contents

 

 

 

  

AMERIPRISE FINL INC COM

        2,797,087.50   
  

AMERISAFE INC COM

        727,744.80   
  

AMN HEALTHCARE SVCS INC COM

        161,641.20   
  

AMSURG CORP COM

        1,269,188.70   
  

ANI PHARMACEUTICALS INC COM

        61,690.66   
  

APPLE INC COM STK

        5,892,194.78   
  

APPLIED MATERIALS INC COM

        492,917.60   
  

AQUINOX PHARMACEUTICALS INC COM

        30,307.50   
  

ARATANA THERAPEUTICS INC COM

        55,509.30   
  

ARC DOCUMENT SOLUTIONS INC COM

        79,205.00   
  

ASSOCTD BANC-CORP COM

        906,070.05   
  

ATLAS FINANCIAL HLDGS INC COM

        55,031.04   
  

ATRICURE INC COM STK

        115,049.44   
  

AUSPEX PHARMACEUTICALS INC COM

        103,228.16   
  

AVALANCHE BIOTECHNOLOGIES INC. COM

        72,576.00   
  

AVISTA CORP COM ISIN # US05379B1070

        586,633.25   
  

BANK OF AMERICA CORP

        4,278,393.50   
  

BARNES GROUP INC COM

        939,868.95   
  

BBCN BANCORP INC COM

        469,363.20   
  

BIOGEN IDEC INC COM STK

        2,616,141.15   
  

BLUEBIRD BIO INC COM

        153,722.72   
  

BOEING CO COM

        6,069,806.04   
  

BRINKER INTL INC COM

        1,294,994.85   
  

BRINKS CO COM

        1,919,602.40   
  

BRISTOL MYERS SQUIBB CO COM

        4,173,834.21   
  

BROADCOM CORP CL A

        1,169,910.00   
  

BROOKFIELD ASSET MGMT INC VOTING SHS CL A VOTING SHS CL A

        495,885.96   
  

BROOKS AUTOMATION INC COM

        1,432,207.50   
  

BUILD-A-BEAR WORKSHOP INC COM STK

        55,978.50   
  

CAL MAINE FOODS INC COM NEW STK

        760,694.70   
  

CALAMOS ASSET MGMT INC CL A COM STK

        685,980.00   
  

CALAVO GROWERS INC COM

        99,755.70   
  

CALLIDUS SOFTWARE INC COM STK

        240,916.49   
  

CAMERON INTL CORP COM STK

        1,630,867.50   
  

CANADIAN NATL RY CO COM

        2,364,164.28   
  

CANADIAN PAC RY LTD COM CANADIAN PACIFICRAILWAY LTD

        4,121,639.10   
  

CAPELLA ED CO COM

        123,059.04   
  

CARBO CERAMICS INC COM

        1,201,900.50   
  

CBL & ASSOC PPTYS INC COM

        792,433.10   
  

CDN NAT RES LTD COM CDN NAT RES COM STK

        871,217.44   
  

CELGENE CORP COM

        1,818,843.60   
  

CEMPRA INC COM

        91,853.57   
  

CENTENE CORP DEL COM

        2,026,632.75   
  

CHICAGO BRDG & IRON CO N V COM NV

        1,576,558.90   
  

CHIPOTLE MEXICAN GRILL INC COM STK

        943,939.29   
  

CITIGROUP INC COM NEW COM NEW

        3,430,574.00   
  

CNO FINL GROUP INC COM

        1,370,453.70   
  

COGNEX CORP COM

        1,456,882.50   
  

COLUMBIA SPORTSWEAR CO COM

        1,353,570.60   
  

COMCAST CORP NEW-CL A

        5,510,950.00   
  

COMFORT SYS USA INC COM

        44,922.88   

 

 

16.


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COML METALS CO COM

        716,760.00   
  

CONCHO RES INC COM STK

        1,292,460.75   
  

CONSOLIDATED COMMUNICATIONS HLDGS INC COM STK

        751,410.00   
  

CONVENANT TRANSN GROUP INC CL A

        81,763.76   
  

CORE LABORATORIES NV NLG0.03

        681,004.06   
  

CORE-MARK HLDG CO INC COM

        104,537.84   
  

COSTCO WHOLESALE CORP NEW COM

        2,004,345.00   
  

COWEN GROUP INC NEW CL A CL A

        1,089,600.00   
  

CRAFT BREW ALLIANCE INC COM

        79,346.32   
  

CROSS CTRY HEALTHCARE INC COM

        99,353.28   
  

CUBIC CORP COM

        929,622.40   
  

CVB FINL CORP COM

        1,261,174.50   
  

DARLING INGREDIENTS INC COMSTK

        2,035,191.20   
  

DAVE & BUSTERS ENTMT INC COM

        70,597.80   
  

DENNYS CORP COM

        66,334.54   
  

DEVRY EDUCATION GROUP INC

        1,129,786.00   
  

DIAGEO PLC SPONSORED ADR NEW

        1,203,079.05   
  

DIEBOLD INC COM

        1,959,065.20   
  

DISCOVERY COMMUNICATIONS INC NEW COM SERA STK

        207,354.55   
  

DISCOVERY COMMUNICATIONS INC NEW COM SERC COM SER C

        206,939.64   
  

DUNKIN BRANDS GROUP INC COM

        312,240.65   
  

DYAX CORP COM

        66,321.02   
  

EAST WEST BANCORP INC COM

        1,313,817.40   
  

EATON CORP PLC COM USD0.50

        1,275,609.20   
  

ELLIE MAE INC COM STK

        129,790.08   
  

ENCANA CORP COM NPV

        951,482.00   
  

ENSCO PLC SHS CLASS A COM

        468,717.50   
  

EOG RESOURCES INC COM

        1,138,905.90   
  

EPLUS INC COM

        62,368.56   
  

EVINE LIVE INC CL A CL A

        71,389.47   
  

EXELON CORP COM

        2,221,092.00   
  

EXPRESS SCRIPTS HLDG CO COM

        2,832,211.50   
  

F N B CORP PA COM

        932,400.00   
  

FACEBOOK INC CL A CL A

        3,459,874.92   
  

FIESTA RESTAURANT GROUP INC COM

        202,524.80   
  

FIREEYE INC COM

        465,489.20   
  

FIVE PRIME THERAPEUTICS INC COM

        61,560.00   
  

FMR BROS CO DEL

        69,884.85   
  

FOAMIX PHARMACEUTICALS LTD COM ILS0.16

        42,641.83   
  

FOOT LOCKER INC COM

        723,879.30   
  

FORD MTR CO DEL COM PAR $0.01 COM PAR $0.01

        2,016,550.00   
  

FRESH MKT INC COM

        1,251,244.00   
  

FXCM INC

        88,135.83   
  

GATX CORP COM

        761,254.20   
  

GENERAL ELECTRIC CO

        4,916,278.50   
  

GILEAD SCIENCES INC

        1,471,115.82   
  

GLACIER BANCORP INC NEW COM

        619,826.40   
  

GLOBAL INDEMNITY PLC COM USD0.0001

        793,225.20   
  

GLOBANT SA USD1.20

        125,100.58   
  

GOLDMAN SACHS GROUP INC COM

        4,704,060.27   
  

GOOD TIMES RESTAURANTS INC COM

        44,488.32   

 

 

17.


Table of Contents

 

 

 

  

GOOGLE INC CL A

        1,643,984.68   
  

GOOGLE INC COM USD0.001 CL’C’

        1,639,209.60   
  

GRAN TIERRA ENERGY INC COM

        431,739.00   
  

GROUP 1 AUTOMOTIVE INC COM

        1,249,750.90   
  

GTT COMMUNICATIONS INC COM

        157,225.32   
  

HAWAIIAN HOLDINGS INC COM

        101,725.25   
  

HEALTHSTREAM INC COM STK ISIN# US42222N1037

        118,863.36   
  

HERON THERAPEUTICS INC COM

        76,254.80   
  

HILL ROM HLDGS INC COM STK

        1,997,471.70   
  

HONEYWELL INTL INC COM STK

        3,587,128.00   
  

HORNBECK OFFSHORE SVCS INC NEW COM

        632,989.50   
  

ICONIX BRAND GROUP INC COM

        1,955,258.35   
  

ICU MED INC COM

        614,250.00   
  

IGI LAB INC

        87,841.60   
  

ILLUMINA INC COM

        1,523,892.48   
  

IMMUNOMEDICS INC COM

        634,248.00   
  

INCONTACT INC COM

        146,766.63   
  

INFINITY PHARMACEUTICALS INC COM STK

        109,176.96   
  

INGERSOLL-RAND PLC COM STK

        1,331,316.78   
  

INPHI CORP

        47,419.68   
  

INSIGHT ENTERPRISES INC COM

        507,314.55   
  

INSTALLED BLDG PRODS INC COM

        45,690.48   
  

INSTEEL INDS INC COM

        64,727.10   
  

INTERCONTINENTAL EXCHANGE INC COM

        1,918,787.50   
  

INTREPID POTASH INC COM

        1,270,714.00   
  

INVENTURE FOODS INC COM STK

        102,786.32   
  

IPG PHOTONICS CORP COM

        1,273,640.00   
  

JOHNSON CTL INC COM

        3,221,861.00   
  

KADANT INC COM

        893,928.60   
  

KARYOPHARM THERAPEUTICS INC COM

        86,762.74   
  

KIRKLANDS INC COM

        78,839.40   
  

KONA GRILL INC COM

        57,032.30   
  

KOPPERS HLDGS INC COM

        1,141,950.90   
  

K2M GROUP HLDGS INC COM

        87,654.00   
  

LACLEDE GROUP INC COM

        799,596.00   
  

LADENBURG THALMANN FINL SVCS INC COM ISIN US50575Q1022

        2,464.80   
  

LAS VEGAS SANDS CORP COM STK

        1,729,736.56   
  

LDR HLDG CORP COM

        118,729.16   
  

LENDINGCLUB CORP COM

        55,432.30   
  

LIBERTY MEDIA CORP DEL COM SER C COM SERC

        1,222,547.00   
  

LIBERTY TAX INC CL A CL A

        46,319.04   
  

LINDSAY CORPORATION COM

        503,722.50   
  

LINKEDIN CORP CL A

        1,841,585.07   
  

LOXO ONCOLOGY INC COM

        48,245.50   
  

MACROGENICS INC COM

        132,669.81   

*

  

MANULIFE FINL CORP COM

        309,009.83   
  

MARCUS & MILLICHAP INC COM

        129,741.50   
  

MARINEMAX INC COM

        143,678.30   
  

MARRIOTT INTL INC NEW COM STK CL A

        1,620,917.19   
  

MASTERCARD INC CL A

        3,548,844.24   
  

MATTSON TECH INC COM

        42,214.40   

 

 

18.


Table of Contents

 

 

 

  

MAVENIR SYS INC COM

        34,727.16   
  

MCGRAW HILL FINANCIAL INC

        971,305.68   
  

MERCK & CO INC NEW COM

        1,410,550.02   
  

MICHAEL KORS HOLDINGS LTD COM NPV

        552,660.90   
  

MIDDLEBY CORP COM

        1,158,479.00   
  

MIMEDX GROUP INC COM

        99,446.25   
  

MIRATI THERAPEUTICS INC COM

        49,318.76   
  

MOHAWK INDS INC COM

        1,196,272.00   
  

MONDELEZ INTL INC COM

        1,411,335.23   
  

MONSANTO CO NEW COM

        5,769,564.71   
  

MONTPELIER RE HOLDINGS LTD COM

        950,304.60   
  

MOOG INC CL A

        529,314.50   
  

MORGAN STANLEY COM STK USD0.01

        1,434,513.60   
  

MOSAIC CO/THE

        1,465,365.00   
  

MOTORCAR PTS & ACCESSORIES INC COM

        159,118.62   
  

MULTI-COLOR CORP COM

        71,602.64   
  

NABORS INDUSTRIES COM USD0.10

        1,404,734.54   
  

NATUS MED INC DEL COM

        103,542.92   
  

NAUTILUS INC COM

        97,243.08   
  

NEOGENOMICS INC COM NEW COM NEW

        126,659.58   
  

NETAPP INC COM STK

        1,991,672.50   
  

NETFLIX INC COM STK

        1,336,378.32   
  

NEWPORT CORP COM

        739,748.10   
  

NIKE INC CL B

        2,327,310.75   
  

NOBLE CORP PLC COMMON STOCK

        744,589.52   
  

NORCRAFT COS INC COM

        50,720.40   
  

NORDSON CORP COM

        1,666,784.80   
  

NORTHERN TR CORP COM

        2,446,552.60   
  

NOVA MEASURING INSTRUMENTS

        42,308.08   
  

O REILLY AUTOMOTIVE INC NEW COM USD0.01

        1,245,480.92   
  

OCCIDENTAL PETROLEUM CORP

        4,002,286.50   
  

OFG BANCORP COM

        664,085.25   
  

OGE ENERGY CORP COM

        1,400,573.00   
  

OLIN CORP COM

        242,614.35   
  

OMNICOM GROUP INC COM

        2,788,920.00   
  

ONCOTHYREON INC COM STK

        61,892.50   
  

ORACLE CORP COM

        3,267,070.50   
  

ORASURE TECHNOLOGIES INC COM

        113,162.40   
  

OWENS ILL INC COM NEW

        1,093,661.79   
  

OXFORD IMMUNOTEC GLOBAL PLC ORD GBP0.006705

        48,092.22   
  

PARAGON OFFSHORE COMMON STOCK

        41,142.81   
  

PARTNERRE HLDG LTD COM STK

        442,938.53   
  

PAYCOM SOFTWARE INC COM

        156,452.86   
  

PAYLOCITY HLDG CORP COM

        140,289.03   
  

PENTAIR PLC COM STK

        425,088.00   
  

PERNIX THERAPEUTICS HLDGS INC COM

        54,471.39   
  

PERRIGO COMPANY LIMITED COM EUR0.001

        377,614.44   
  

PFIZER INC COM

        4,317,390.00   
  

PNC FINANCIAL SERVICES GROUP COM STK

        3,425,686.50   
  

POLARIS INDS INC COM

        1,056,411.40   
  

POPEYES LA KITCHEN INC COM USD0.01

        84,742.62   

 

 

19.


Table of Contents

 

 

 

  

PORTLAND GENERAL ELECTRIC CO COM NEW COMNEW

        395,512.65   
  

POTASH CORP SASK INC COM

        1,233,762.92   
  

PRECISION CASTPARTS CORP COM

        1,655,568.24   
  

PROGRESS SOFTWARE CORP COM

        918,680.00   
  

PROOFPOINT INC COM

        228,079.67   
  

PVTPL OVASCIENCE INC COM MON STOCK

        59,741.22   
  

QUALCOMM INC COM

        2,445,457.00   
  

QUINSTREET INC COM STK

        14,847.22   
  

Q2 HLDGS INC COM

        104,430.12   
  

RECEPTOS INC COM

        121,529.92   
  

RED HAT INC COM

        1,551,155.90   
  

REGAL BELOIT CORP COM

        795,992.00   
  

RENTRAK CORP COM

        110,977.68   
  

REP AWYS HLDGS INC COM USD0.001

        103,822.44   
  

REPLIGEN CORP COM STK USD0.01

        117,354.60   
  

SAIA INC COM STK

        1,037,169.60   
  

SALESFORCE COM INC COM STK

        1,927,515.69   
  

SANDERSON FARMS INC COM

        1,476,319.25   
  

SANFILIPPO JOHN B & SON INC COM

        62,244.00   
  

SCHLUMBERGER LTD COM COM

        3,368,997.45   
  

SENSIENT TECHNOLOGIES CORP COM

        441,085.40   
  

SEQUENTIAL BRANDS GROUP INC

        85,229.47   
  

SHIRE PLC ADR

        1,192,349.40   
  

SKULLCANDY INC COM

        95,520.86   
  

SNAP-ON INC COM

        1,067,255.70   
  

SPECTRANETICS CORP COM

        242,474.96   
  

SPLUNK INC COMSTK COM USD0.001

        946,619.10   
  

SQUARE 1 FINL INC CL A CL A

        14,622.40   
  

STAMPS COM INC COM NEW

        55,716.39   
  

STARBUCKS CORP COM

        1,318,379.40   
  

SUMMIT HOTEL PROPERTIES INC COM

        135,745.28   
  

SUNCOR ENERGY INC NEW COM STK

        1,662,793.16   
  

SUNESIS PHARMACEUTICALS INC COM NEW STOCK

        47,848.20   
  

SUNOPTA INC COM

        130,041.90   
  

SUPER MICRO COMPUTER INC COM

        108,267.52   
  

SYNERGY RES CORP COM

        55,439.34   
  

TAKE-TWO INTERACTIVE SOFTWARE INC CDT-COM CDT-COM

        812,870.00   
  

TALISMAN ENERGY INC COM

        9,983.25   
  

TASER INTL INC COM

        185,810.16   
  

TECK RESOURCES LIMITED

        200,412.52   
  

TEEKAY TANKERS LTD COM STK

        1,011,893.74   
  

TESLA MTRS INC COM

        1,054,890.63   
  

TEXAS INSTRUMENTS INC COM

        2,272,262.50   
  

THE PRICELINE GROUP INC

        1,917,833.22   
  

THOR INDS INC COM STK

        1,584,752.55   
  

TIFFANY & CO COM

        1,516,663.98   
  

TIME INC NEW COM

        1,151,748.00   
  

TJX COS INC COM NEW

        1,045,227.78   
  

TOWER SEMICONDUCTOR LTD

        144,603.84   
  

TRIANGLE PETROLEUM CORPORATION COMMON STOCK

        387,180.00   
  

TRINITY IND INC COM

        1,219,275.30   

 

 

20.


Table of Contents

 

 

 

  

TRIPADVISOR INC COM COM STK

        725,993.84   
  

TRIVASCULAR TECHNOLOGIES INC COM

        46,835.82   
  

TUBEMOGUL INC COM

        102,151.50   
  

TUCOWS INC COM NEW COM NEW

        58,132.95   
  

TUESDAY MORNING CORP COM NEW ISIN US8990355054

        1,371,613.60   
  

TWENTY-FIRST CENTY FOX INC CL A CL A

        1,525,677.03   
  

TWITTER INC COM

        1,027,783.11   
  

U S PHYSICAL THERAPY COM

        65,373.68   
  

UBS GROUP AG COMMON STOCK

        279,926.90   
  

UNDER ARMOR INC CL A

        1,188,929.00   
  

UNION PAC CORP COM

        1,726,670.22   
  

UNITEDHEALTH GROUP INC COM

        3,214,662.00   
  

UNVL ELECTRS INC COM

        93,773.26   
  

VALEANT PHARMACEUTICALS INTERNATIONAL INC COMMON STOCK

        2,690,468.00   
  

VASCULAR SOLUTIONS INC COM

        60,947.04   
  

VERTEX PHARMACEUTICALS INC COM

        1,071,813.60   
  

VIACOM INC NEW CL B

        3,563,087.50   
  

VIRTUSA CORP COM

        91,090.62   
  

VISA INC COM CL A STK

        2,753,362.20   
  

VMWARE INC CL A COM CL A COM

        778,246.12   
  

WALT DISNEY CO

        1,825,402.20   
  

WALTER INVT MGMT CORP

        1,273,498.85   
  

WEATHERFORD INTERNATIONAL LTD(IE)USD0.001

        1,337,875.25   
  

WELLCARE HLTH PLANS INC COM

        1,594,015.50   
  

WERNER ENTERPRISES INC COM

        790,431.25   
  

WESTN REFNG INC COM

        1,103,553.80   
  

WIX.COM LTD COM ILS0.01

        58,023.00   
  

WORKDAY INC CL A COM USD0.001

        960,304.87   
  

XENOPORT INC COM STK

        59,960.49   
  

YODLEE INC COM

        43,724.80   
  

ZELTIQ AESTHETICS INC COM

        239,021.24   
  

ZOES KITCHEN INC COM

        50,697.45   
        

 

 

 
  

TOTAL CORPORATE COMMON STOCKS (other than employer securities) & AMERICAN DEPOSITORY RECEIPTS

        335,715,712.15   
  

McDONALD’S CORPORATION COMMON STOCK

     

*

  

MC DONALDS CORP COM

     14,058,138.70         83,480,515.80   

*

  

MC DONALDS CORP COM

        312,044,518.70   

*

  

MC DONALDS CORP COM

        763,217,327.30   
        

 

 

 
  

TOTAL McDONALD’S CORPORATION COMMON STOCK

        1,158,742,361.80   
  

INTEREST IN REGISTERED INVESTMENT CO.

     

*

  

MFO AMERICAN BEACON FDS HOLLAND LARGE CAP GROWTH FD INSTL CL

        15,427,018.31   

*

  

MFO ARTISAN MID CAP FD INSTL CL SH

        29,528,063.68   

*

  

MFO DFA EMERGING MARKETS VALUE

        25,830,227.47   

*

  

MFO NUVEEN INVT FDS INC REAL ESTATE SECSFD CL R6

        106,572,974.12   

*

  

MFO PRIMECAP ODYSSEY FDS AGGRESSIVE GROWTH FD

        43,876,415.41   

*

  

MFO DODGE & COX INC FD

        52,796,433.63   
        

 

 

 
  

TOTAL INTEREST IN REGISTERED INVESTMENT CO.

        274,031,132.62   
  

MCDONALD’S LOAN ASSETS

     

*

  

MCDONALD’S LOAN ASSET&&&

        34,348,566.51   
        

 

 

 
  

TOTAL McDONALD’S LOAN ASSETS

        34,348,566.51   

 

 

 

21.


Table of Contents

 

 

 

  

INTEREST-BEARING CASH

     
  

United States dollar - Cash

        0.10   
  

United States dollar - Invested cash

        263.44   
     

 

  

 

 

 
  

TOTAL INTEREST-BEARING CASH

        263.54   
  

WRAPPER CONTRACTS

     

*

  

GIC MONUMENTAL LIFE CONTRACT MDA00824TR RATE 1.65% MAT 12/31/2064

        85,413.00   
     

 

  

 

 

 
  

TOTAL WRAPPER CONTRACTS

        85,413.00   
  

COLLECTIVE TRUSTS

     

*

  

MFO ARTISAN INTERNATIONAL FUND

        35,921,395.50   

*

  

NT COLLECTIVE ALL CTY WLD EX-US INVSTBL MKT IDX FD - DC - NONLENDING - TR 3

        40,862,330.56   

*

  

MFO MANNING & NAPIER NON US EQUITY

        35,866,103.60   

*

  

NT COLLECTIVE RUSSELL 2000 INDEX FUND - DC -NON LENDING TIER THREE

        84,227,184.90   

*

  

NT COLLECTIVE S&P500 INDEX FUND - DC- NON LENDING - TIER THREE

        302,884,538.75   

*

  

MFO JP MORGAN CHASE BK LIQUIDITY FUND

        26,716,307.96   

*

  

MFO JPMCB INTER PUB BD FD

        199,282,117.47   

*

  

MFO SUBADVISED FIXED INCOME MODERATE DURATION FUND

        116,980,119.48   

*

  

MFO SUBADVISED FIXED INCOME WAMCO FUND

        141,217,802.48   

*

  

MFO BLACKROCK GLOBAL ALLOCATION COLLECTIVE FUND M

        248,375,929.42   

*

  

MFO MANULIFE AM TC STRATEGIC FIXED INCOME FUND CLASS 3 RETIREMENT B

        90,062,045.40   

*

  

MFO METROPOLITAN WEST FDS FLOATING RATE INCOME FD CL I

        527,085.94   

*

  

Northern Trust Company COLTV SHORT TERM INVT FD

        31,247,395.54   
     

 

  

 

 

 
  

TOTAL COLLECTIVE TRUSTS

        1,354,170,357.00   
  

CORPORATE BONDS & MORTGAGE BACKED SECURITIES

     
  

ZFS FINANCE USA TST FLT RT BD 144A DUE 12-15-2065/12-15-2015 BEO

        184,392.25   
  

ROYAL BK SCOTLAND 2.55% DUE 09-18-2015

        252,503.00   
  

BK AMER N A CHARLOTTE N C MEDIUM TERM TRANCHE # TR 00229 5.3 DUE 03-15-2017

        322,249.50   
  

BOARDWALK 5.2% DUE 06-01-2018

        183,399.83   
  

ENERGY TRANSFER PARTNERS 5.2 2-1-2022

        213,911.20   
  

GOLDMAN SACHS GROUP INC 5.95 DUE 01-18-2018

        249,967.80   
  

MIDAMERICAN ENERGY 4.8% DUE 09-15-2043

        203,191.80   
  

MORGAN STANLEY FORMERLY MORGAN STANLEY MORGAN STANLEY 5.95 DUE 12-28-2017

        277,787.75   
  

PUB SVC CO OKLA 6.15 DUE 08-01-2016 BEO

        214,557.00   
  

PVTPL FIRSTENERGY TRANSMISSION LLC SR NT144A 5.45% DUE 07-15-2044/05-19-2014 BEO

        188,626.55   
  

FNMA DISC NT 03-25-2015 FNMA

        1,399,575.35   
  

FNMA DISC NT 04-15-2015 0% DISC NTS 15/04/2015 USD

        1,999,416.68   
  

MFO METROPOLITAN WEST FUNDS HIGH YIELD BD FD CL I

        1,316,401.98   
  

FNMA POOL #468551 3.98% DUE 07-01-2021 BEO

        163,708.05   
  

FNMA POOL #AM0827 2.6 DUE 11-01-2022 REG

        130,852.97   
  

FNMA POOL #AM2808 2.7% 03-01-2023 BEO

        130,929.11   
  

FNMA POOL #MA1512 3.5% 07-01-2033 BEO

        265,142.52   
  

FNMA SINGLE FAMILY MORTGAGE 2.5% 15 YEARS SETTLES JANUARY

        244,350.00   
  

FNMA SINGLE FAMILY MORTGAGE 3% 15 YEARS SETTLES JANUARY

        124,729.68   
  

FNMA SINGLE FAMILY MORTGAGE 3.5% 15 YEARS SETTLES JANUARY

        105,640.60   
  

FNMA SINGLE FAMILY MORTGAGE 3.5% 30 YEARS SETTLES JANUARY

        2,606,055.00   
  

FNMA SINGLE FAMILY MORTGAGE 4% 30 YEARS SETTLES JANUARY

        1,056,581.46   
  

FNMA SINGLE FAMILY MORTGAGE 4.5% 30 YEARS SETTLES JANUARY

        922,648.65   
  

FNMA SINGLE FAMILY MTG 3 30 YEARS SETTLES JAN

        3,904,633.18   
  

GNMA II JUMBOS 3% 30 YEARS SETTLES JANUARY

        102,262.50   
  

GNMA II JUMBOS 3.5 30 YEARS SETTLES JAN

        419,875.20   
  

GNMA II JUMBOS 4 30 YEARS SETTLES JAN

        643,305.60   

 

 

22.


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GNMA II JUMBOS 4.5% 30 YEARS SETTLES JANUARY

        152,966.38   
  

CMO BANC AMER COML MTG INC SERIES 2005-5CL-A4 DUE 10-10-2045 REG

        195,303.59   
  

CMO J P MORGAN CHASE COML MTG SECS CORP 2005-CIBC13 MTG PASSTHRU DUE 01-12-43

        235,071.96   
  

CMO MORGAN STANLEY CAPITAL I 2011-C3 CL A4 4.118 7-15-2021

        194,864.40   
  

CR SUISSE COML MTG FLTG RT 5.526% DUE 01-15-2049

        296,016.23   
  

PVTPL CMO DBRR SER 2013-EZ3 CL A VAR RT DUE 12-18-2049

        264,602.58   
  

UBS-CITIGROUP COML 1.524% DUE 01-10-2045

        197,032.60   
  

PVTPL A VOCE CLO LTD / A VOCE CLO LLC SRSECD NT CL A-1B FLTG 144A 07-15-2026

        143,709.50   
  

PVTPL AMMC CLO XIV LTD / AMMC CLO XIV CORP SR SECD NT CL A-1L FLTG 07-27-2026

        128,648.00   
  

PVTPL CEDAR FDG III CLO LTD / CEDAR FDG III CL SR SECD NT CL A-1 FLTG 05-20-2026

        129,285.00   
  

PVTPL FLAGSHIP VII LTD LLC SR SECD NT CLA-1 VAR RT DUE 01-20-2026

        128,993.59   
  

PVTPL MAGNETITE CLO LTD SR 2014-8A CL A VAR RT 04-15-2026

        129,311.00   
  

CMO 2005-AR13 MTG PASSTHRU CTF CL A-1A2 DUE 10-25-2045 REG

        252,609.08   
  

FHLB DISC NT 02-09-2015 0% DISC NTS 09/02/2015 USD

        1,549,896.66   
  

FHLB DISC NT 02-23-2015

        1,699,821.51   
        

 

 

 
  

TOTAL CORPORATE BONDS & MORTGAGE BACKED SECURITIES

        23,524,827.29   
  

UNITED STATES TREASURIES

     
  

UNITED STATES TREAS BDS 3.125 DUE 08-15-2044

        2,519,155.08   
  

UNITED STATES TREAS BDS 3% DUE 11-15-2044 REG

        215,442.29   
  

UNITED STATES TREAS NTS DTD 09/30/2014 .5% DUE 09-30-2016

        15,192,173.88   
  

UNITED STATES TREAS NTS DTD 11/15/2014 2.25% DUE 11-15-2024 REG

        6,206,422.64   
  

UTD STATES TREAS 1.5% DUE 10-31-2019

        3,761,934.21   
  

UNITED STATES OF AMER TREAS NOTES INFLATION INDEX 0.125 NTS 07-15-2024

        394,861.12   
  

UNITED STATES TREAS BILLS 01-29-2015 UNITED STATES TREAS BILLS

        2,599,950.60   
  

UNITED STATES TREAS BDS 1.375 02-15-2044 REG

        691,878.82   
        

 

 

 
  

TOTAL UNITED STATES TREASURIES

        31,581,818.64   
  

TOTAL ASSETS

        3,212,200,452.55   
        

 

 

 

*

  

Party in Interest

     

**

  

Historical cost is disclosed only for nonparticipant-directed investments

     

 

 

23.


Table of Contents

SIGNATURES

The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    McDonald’s Corporation Profit Sharing and Savings Plan
Dated: June 25, 2015     By:  

    /s/ Catherine Griffin

      Name: Catherine Griffin
      Title: Corporate Vice President—Deputy General Council

 

 

 

24.


Table of Contents

EXHIBITS

 

Exhibit

Number

  

Description of Exhibit

23.1    Consent of Crowe Horwath, LLP Independent Registered Public Accounting Firm

 

 

25.