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, 2010

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, 2010 and 2009

CONTENTS

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

      1   

FINANCIAL STATEMENTS

   

STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS AS OF DECEMBER 31, 2010

      2   

STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS AS OF DECEMBER 31, 2009

      3   

STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS FOR THE YEAR ENDED DECEMBER 31, 2010

      4   

NOTES TO FINANCIAL STATEMENTS

      5   

SUPPLEMENTAL SCHEDULE

   

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

      17   

SIGNATURE

   

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 McDonald’s Corporation Profit Sharing and Savings Plan (“the Plan”) as of December 31, 2010 and 2009, and the related statement of changes in net assets available for benefits for the year ended December 31, 2010. 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, 2010 and 2009, and the changes in net assets available for benefits for the year ended December 31, 2010 in conformity with U.S. generally accepted accounting principles.

Our audit was conducted for the purpose of expressing an opinion on the basic financial statements taken as a whole. The supplemental Schedule H, Line 4i - Schedule of Assets (Held at End of Year) is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in the audit of the basic 2010 financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic 2010 financial statements taken as a whole.

/s/ Crowe Horwath LLP

Oak Brook, Illinois

June 20, 2011

 

 

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Table of Contents

McDONALD’S CORPORATION PROFIT SHARING AND SAVINGS PLAN

STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS

December 31, 2010

(Amounts in thousands)

 

 

 

     Participant-
Directed
Investments		     ESOP      Total
2010		  
       Allocated
Account		     Unallocated
Account		     

ASSETS

          

Investments, at fair value

          

Short-term investments

    $ 46,605      $ 4,501      $ 3,486       $ 54,592   

Mutual funds

      424,334        —          —           424,334   

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

      239,032        —          —           239,032   

McDonald’s Corporation common stock

      842,203        300,587        224,380         1,367,170   

Collective funds

      680,954        —          —           680,954   

Wrapper contracts

      541        —          —           541   

Securities loaned

      19,117        —          —           19,117   

Pooled cash collateral

      19,607        —          —           19,607   
                                 

Total investments, at fair value

      2,272,393        305,088        227,866         2,805,347   

Receivables

          

Company contributions

      28,537        —          —           28,537   

Accrued income

      1,124        1        —           1,125   

Other

      1        —          —           1   

Interfund receivables

      21        (21 )      —           —     

Participant loans

      29,428        —          —           29,428   
                                 

Total receivables

      59,111        (20 )      —           59,091   
                                 

Total assets

      2,331,504        305,068        227,866         2,864,438   

LIABILITIES

          

Management expenses payable

      578        —          —           578   

Obligation for collateral received for loaned securities

      19,607        —          —           19,607   

Accrued interest expense

      —          —          1,557         1,557   

Notes payable

      —          —          47,681         47,681   

Other liabilities

      1,575        22        —           1,597   
                                 

Total liabilities

      21,760        22        49,238         71,020   
                                 

Net assets reflecting all investments at fair value

      2,309,744        305,046        178,628         2,793,418   
                                 

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

      (8,980 )      —          —           (8,980 ) 
                                 

NET ASSETS AVAILABLE FOR BENEFITS

    $ 2,300,764      $ 305,046      $ 178,628       $ 2,784,438   
                                 

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, 2009

(Amounts in thousands)

 

 

 

     Participant-
Directed
Investments		      ESOP      Total
2009		  
      Allocated
Account		     Unallocated
Account		     

ASSETS

           

Investments, at fair value

           

Short-term investments

    $ 34,570       $ 4,996      $ 3,706       $ 43,272   

US Treasury bonds

      1,061         —          —           1,061   

Mutual funds

      319,428         —          —           319,428   

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

      170,477         —          —           170,477   

McDonald’s Corporation common stock

      702,839         247,574        218,874         1,169,287   

Collective funds

      680,490         —          —           680,490   

Wrapper contracts

      778         —          —           778   

Securities loaned

      66,664         —          —           66,664   

Pooled cash collateral

      68,747         —          —           68,747   
                                  

Total investments, at fair value

      2,045,054         252,570        222,580         2,520,204   

Receivables

           

Company contributions

      22,296         —          —           22,296   

Accrued income

      821         1        —           822   

Other

      9         —          —           9   

Interfund receivables

      237         (237 )      —           —     

Participant loans

      26,731         —          —           26,731   
                                  

Total receivables

      50,094         (236 )      —           49,858   
                                  

Total assets

      2,095,148         252,334        222,580         2,570,062   

LIABILITIES

           

Management expenses payable

      552         —          —           552   

Obligation for collateral received for loaned securities

      68,747         —          —           68,747   

Accrued interest expense

      —           —          1,818         1,818   

Notes payable

      —           —          55,678         55,678   

Other liabilities

      1,407         18        —           1,425   
                                  

Total liabilities

      70,706         18        57,496         128,220   
                                  

Net assets reflecting all investments at fair value

      2,024,442         252,316        165,084         2,441,842   
                                  

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

      9,265         —          —           9,265   
                                  

NET ASSETS AVAILABLE FOR BENEFITS

    $ 2,033,707       $ 252,316      $ 165,084       $ 2,451,107   
                                  

See accompanying notes to financial statements.

 

 

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Table of Contents

McDONALD’S CORPORATION PROFIT SHARING AND SAVINGS PLAN

STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS

Year ended December 31, 2010

(Amounts in thousands)

 

 

 

     Participant-
Directed
Investments		      ESOP      Total
2010		  
        Allocated
Account		      Unallocated
Account		     

Additions to net assets attributed to:

            

Net appreciation/(depreciation) in fair value of investments

            

Mutual funds

    $ 38,653       $ —         $ —         $ 38,653   

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

      35,586         —           —           35,586   

McDonald’s Corporation common stock

      160,534         56,701         45,667         262,902   

Collective funds

      24,047         —           —           24,047   

Securities lending income

      133         —           —           133   

Interest income

      23,259         6         2         23,267   

Dividends

      35,159         8,901         7,112         51,172   

Commission recapture

      39         —           —           39   
                                   

Total net investment income

      317,410         65,608         52,781         435,799   

Contributions

            

Company

      53,873         16,299         4,480         74,652   

Participant

      49,761         —           —           49,761   

Rollovers

      1,345         —           —           1,345   
                                   

Total contributions

      104,979         16,299         4,480         125,758   

Interfund transfers-in

      11,836         —           —           11,836   

Participant loan interest income

      1,338         —           —           1,338   

Other

      42         —           —           42   
                                   

Total additions

      435,605         81,907         57,261         574,773   

Deductions from net assets attributed to:

            

Benefits paid to terminated participants and withdrawals

      165,937         17,288         —           183,225   

Management and administrative expenses

      2,490         39         —           2,529   

Interfund transfers-out

      —           11,836         —           11,836   

Interest expense

      —           —           3,556         3,556   

Company matching with profit sharing forfeitures

      121         —           —           121   

Company matching with ESOP shares

      —           —           40,161         40,161   

Other

      —           14         —           14   
                                   

Total deductions

      168,548         29,177         43,717         241,442   
                                   

Net increase (decrease)

      267,057         52,730         13,544         333,331   

Net assets available for benefits

            

Beginning of year

      2,033,707         252,316         165,084         2,451,107   
                                   

End of year

    $ 2,300,764       $ 305,046       $ 178,628       $ 2,784,438   
                                   

See accompanying notes to financial statements

 

 

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Table of Contents

McDONALD’S CORPORATION PROFIT SHARING AND SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2010 and 2009

 

 

NOTE 1 - DESCRIPTION OF PLAN

General: The McDonald’s Corporation Profit Sharing and Savings Plan (the Plan) was last amended and restated in its entirety as of July 1, 2008. The Plan has been amended four times subsequent to this date with the most recent amendment on November 19, 2010.

The Plan is administered by a committee of officers (Administrative Committee) appointed by the Chief Executive Officer of McDonald’s Corporation (the Company). 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 McDonald’s Corporation or a participating employer. The term “Company” includes McDonald’s Corporation and all participating employers in describing eligibility and contributions below.

Salaried restaurant management employees and staff employees (including part-time staff employees) are eligible to make nonmatched 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 on a matched basis after one year of “eligible service” as defined by the Plan document.

Highly compensated employees under Internal Revenue Service rules will not be 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.

Salaried restaurant management employees, who are not contributing to the Plan, will be enrolled automatically at a 1% contribution level as soon as they have completed one year of service and attained age 21.

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. 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 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(n): 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 and 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, Global Themes 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 future contribution company stock limitation also applies to the Company’s discretionary matching contribution, if any.

The trustees, individuals appointed by the Compensation Committee of the Board of Directors of McDonald’s Corporation (the Board), are authorized to invest certain assets of the Plan in shares of Company stock. The allocated ESOP shares 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. The Company is required to make sufficient cash contributions to the Plan to pay the principal and interest on the loans. Unallocated ESOP common stock dividends are invested in an interest-bearing account until the note payment is due.

 

 

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McDONALD’S CORPORATION PROFIT SHARING AND SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2010 and 2009

 

 

 

NOTE 1 - DESCRIPTION OF PLAN (Continued)

 

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 Board. For the year ended December 31, 2010, the Company made a 4% 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.

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 matching contributions 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 will always be 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 (based on the safe harbor match) 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): 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 at an issue price of $7.188 per share. These preferred shares were held exclusively by the Leveraged ESOP and were not traded on the open market.

In 1992 and 1995, the Company redeemed the Series B preferred shares. Prior to each redemption, the Plan’s Trustees converted each share of Preferred Stock into 0.7692 shares of McDonald’s Common Stock. The unallocated shares will be released for allocation to participants as Company contributions are made to the Plan. Released shares are used to make matching allocations.

In April 1991, the Leveraged ESOP borrowed $100 million and used the proceeds of the loan to purchase 12,075,468 shares of McDonald’s Series C Convertible Preferred Stock at an issue price of $8.281 per share. These preferred shares were held exclusively by the Leveraged ESOP and were not traded on the open market. In 1995, the Company redeemed the Series C preferred shares. Prior to the redemption, the Plan’s Trustees converted each share of Series C Preferred Stock into 0.8 shares of McDonald’s Common Stock. The unallocated shares will be released for allocation to participants as Company contributions are made to the Plan. Released shares are used to make matching allocations. Due to the Leveraged ESOP refinancing discussed in Note 6, the last allocation will occur in 2018 when the refinanced loan is completely repaid.

During 2010, 582,220 shares were released from the unallocated ESOP shares with a fair value of approximately $40,161,000.

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.

 

 

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McDONALD’S CORPORATION PROFIT SHARING AND SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2010 and 2009

 

 

 

NOTE 1 - DESCRIPTION OF PLAN (Continued)

 

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 McDonald’s Corporation 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.

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, will be used to make a portion of the Company match.

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. Participants who have been in the Plan for at least 60 months are eligible to withdraw up to 75% of their ESOP and Profit Sharing Accounts while still employed with McDonald’s Corporation.

Effective July 1, 2010, the third amendment to the Plan permits participants to withdraw up to 100% of their ESOP and Profit Sharing Accounts at any time. In addition, participants can elect to receive all or any part of their Investment Savings and Stock Sharing account balances 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 method 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.

 

 

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McDONALD’S CORPORATION PROFIT SHARING AND SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2010 and 2009

 

 

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

Adoption of New Accounting Standards: In September 2010, the FASB amended existing guidance with respect to the reporting of participants loans for defined contribution pension plans. The guidance requires that loans issued to participants be reported as notes receivable, segregated from plan investments, and be measured at their unpaid principal balances plus accrued but unpaid interest. This guidance is effective for reporting periods ending after December 15, 2010, and is to be applied retrospectively to all periods presented comparatively. Early application is permitted. The adoption of this guidance by the Plan resulted in a reclassification of participant loans from investments to receivables of $26,731,000 on the statement of net assets available for benefits as of December 31, 2009. Adoption had no effect on the Plan’s net assets available for benefits.

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.

The following are descriptions of the valuation methods and assumptions used for investments of the Plan, including securities loaned and pooled cash collateral.

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.

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

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).

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 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,

 

 

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McDONALD’S CORPORATION PROFIT SHARING AND SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2010 and 2009

 

 

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

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 except for the MFO Acadian Global W Opportunistic Shorting Fund. Units of the MFO Acadian Global W Opportunistic Shorting Fund are redeemable on a daily basis, with a written redemption notification requirement of 10 business days. Short-term investments consist of a collective trust with principal preservation as its primary objective. 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, U.S. Treasury bonds, 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.

Commingled funds – securities lending collateral pools: Fair value has been determined to approximate the reported redemption values of $1.00 per unit, based upon recent transaction prices (level 2 inputs). While the collateral pools are managed to seek a constant $1.00 per share net asset value, net asset values per unit can fluctuate over time, and guarantees of principal are not provided. The collateral pools invest primarily in short-term and medium-term debt instruments of high credit quality, with the average maturities being somewhat longer than that of an SEC-registered money market fund.

 

 

9

Table of Contents

McDONALD’S CORPORATION PROFIT SHARING AND SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2010 and 2009

 

 

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

Investments measured at fair value on a recurring basis as of December 31, 2010 and 2009 are summarized below (amounts in thousands):

 

     Fair Value Measurements
at December 31, 2010 Using		  
     Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)		     Significant
Other
Observable
Inputs
(Level 2)		      Significant
Unobservable
Inputs
(Level 3)		  

Investments:

        

Pending trades, net

    $ (229 )    $ —         $ —     

Synthetic GIC wrapper contracts

      —          —           541   

Collective trusts

        

Short-term investments

      —          56,861         —     

Bond/fixed income funds

      —          359,705         —     

Common stock funds

      —          180,240         —     

Blended funds

      —          138,740         —     

Mutual funds

        

Corporate bond funds

      121,243        —           —     

US common stock

      188,970        —           —     

International common stock

      114,121        —           —     

ADR & common stock, other than

        

McDonald’s Corp. common stock

        

ADR – International large cap

      14,840        —           —     

ADR – International mid cap

      769        —           —     

ADR – International small cap

      319        —           —     

Common stocks – US large cap

      138,528        —           —     

Common stocks – US mid cap

      42,797        —           —     

Common stocks – US small cap

      38,683        —           —     

Common stocks – International large cap

      15,485        —           —     

Common stocks – International mid cap

      4,942        —           —     

Common stocks – International small cap

      2,015        —           —     

McDonald’s Corp. common stock

      1,367,170        —           —     

Commingled funds – securities lending collateral pools

      —          19,607         —     
                         
   $ 2,049,653      $ 755,153       $ 541   
                         

 

 

10

Table of Contents

McDONALD’S CORPORATION PROFIT SHARING AND SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2010 and 2009

 

 

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

     Fair Value Measurements
at December 31, 2009 Using		  
     Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)		     Significant
Other
Observable
Inputs
(Level 2)		      Significant
Unobservable
Inputs
(Level 3)		  

Investments:

        

Pending trades, net

    $ (311 )    $ —         $ —     

Synthetic GIC wrapper contracts

      —          —           778   

Collective trusts

        

Short-term investments

      —          46,074         —     

Bond/fixed income funds

      —          413,647         —     

Common stock funds

      —          136,603         —     

Blended funds

      —          127,438      

US Treasury securities

      1,061        —           —     

Mutual funds

        

Corporate bond funds

      62,309        —           —     

US common stock

      151,109        —           —     

International common stock

      106,010        —           —     

ADR & common stock, other than

        

McDonald’s Corp. common stock

        

ADR – International large cap

      16,210        —           —     

ADR – International mid cap

      2,342        —           —     

ADR – International small cap

      230        —           —     

Common stocks – US large cap

      133,345        —           —     

Common stocks – US mid cap

      41,046        —           —     

Common stocks – US small cap

      32,166        —           —     

Common stocks – International large cap

      8,587        —           —     

Common stocks – International mid cap

      2,049        —           —     

Common stocks – International small cap

      1,477        —           —     

McDonald’s Corp. common stock

      1,169,287        —           —     

Commingled funds – securities lending collateral pools

      —          68,747         —     
                         
   $ 1,726,917      $ 792,509       $ 778   
                         

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, 2010 (amounts in thousands):

 

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

Beginning balance, January 1, 2010

    $ 778   

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

      (237 ) 
        

Ending balance, December 31, 2010

    $ 541   
        

 

 

11

Table of Contents

McDONALD’S CORPORATION PROFIT SHARING AND SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2010 and 2009

 

 

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

* Unrealized appreciation (depreciation) of 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 2010 statement of net assets available for benefits, with no effect on the 2010 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.

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. As of December 31, 2010, the estimated fair value and carrying value of the Plan’s long-term debt was $56,484,000 and $47,681,000, respectively. As of December 31, 2009, the estimated fair value and carrying value of the Plan’s long-term debt was $62,749,000 and $55,678,000, respectively.

Securities Lending: The Plan may lend its securities to qualified brokers through participation in a securities lending program administered by Northern Trust. The loans are collateralized at all times primarily by an allocation of a collateral pool administered by Northern Trust with a market value at least equal to the market value plus any accrued interest or dividends of the securities on loan. The securities on loan and the collateral received from the borrowers are reflected on the statements of net assets available for benefits at fair value as of the financial statement dates. The obligation to return the collateral is also reflected on the statement of net assets as a liability (see Note 12).

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, 2010 and 2009 (amounts in thousands).

Investments at fair value:

 

     2010     2009  

McDonald’s Corporation common stock

    $ 1,367,170      $ 1,169,287   

JP Morgan Chase Bank Intermediate Bond Fund

      169,193        227,351   

JP Morgan Chase Bank Subadvised Fixed Income PIMCO Fund

      138,740 *      127,438   

Vanguard Institutional Index Fund

      149,716        126,533   

 

* Not above 5% threshold, presented for comparative purposes

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 administrative expenses charged by JPMorgan. The Stable Value Fund holds

 

 

12

Table of Contents

McDONALD’S CORPORATION PROFIT SHARING AND SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2010 and 2009

 

 

 

NOTE 4 - INVESTMENT CONTRACTS (Continued)

 

synthetic guaranteed investment contracts, with collective funds, short-term investments, and U.S. Treasury bonds 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 Plan’s administrator believes that 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.

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, 2010 and 2009.

 

     2010     2009  

Average contract yield, in the aggregate for all contracts:

     

Based on annualized earnings (1)

      3.89 %      2.92 % 

Based on interest rate credited to participants (2)

      3.26 %      2.47 % 

 

(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.

 

 

13

Table of Contents

McDONALD’S CORPORATION PROFIT SHARING AND SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2010 and 2009

 

 

 

NOTE 6 - NOTES PAYABLE (Continued)

 

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 $224,379,919 at December 31, 2010. All Notes are guaranteed by McDonald’s Corporation. 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 five years and beyond (amounts in thousands):

 

     Series A
Notes		      Series B
Notes		      Total  

2011

    $ 5,363       $ 2,702       $ 8,065   

2012

      5,425         2,733         8,158   

2013

      5,506         2,773         8,279   

2014

      4,793         2,415         7,208   

2015

      4,481         2,257         6,738   

Beyond 2015

      6,140         3,093         9,233   
                          

Total over remaining life of notes

    $ 31,708       $ 15,973       $ 47,681   
                          

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).

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. All administrative expenses associated with the Plan are paid by the Company.

NOTE 9 - INCOME TAX STATUS

The Internal Revenue Service has determined and informed the Company by letter dated March 4, 2010, that the Plan and related trust are designed, including amendments adopted through February 13, 2009, in accordance with applicable sections of the Internal Revenue Code (IRC). On March 22, 2010 the Plan was amended to adopt the proposed amendment submitted to the Internal Revenue as part of the determination letter process. Although the Plan has been amended since receiving the determination letter, 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.

 

 

14

Table of Contents

McDONALD’S CORPORATION PROFIT SHARING AND SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2010 and 2009

 

 

 

NOTE 10 - TRANSACTIONS WITH PARTIES IN INTEREST

During 2010, the Plan received $41,466,968 in common stock dividends from the Company. In connection with the Leveraged ESOP refinancing 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 2010, fees totaling $2,529,000 were paid by the Plan to the managers of the investments held in the Plan. 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).

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.

NOTE 12 - SECURITIES LENDING

The Plan lends securities, through the asset custodian, to independent third parties to increase its investment income. When the Plan lends securities, it is subject to a risk of failure by the borrower to return the loaned securities, a delay in delivery of the securities, or potential loss from declines in the value of investment collateral, in which case the Plan may incur a loss. To limit this risk, such loans are contractually required to be continuously secured by the collateral consisting of cash, cash equivalents, or U.S. Treasury bonds in an amount at least equal to the market value of the securities loaned. As of December 31, 2010, $19,116,672 of the Plan’s securities on loan were secured by cash collateral with a fair value of $19,606,665 and non-cash collateral with a fair value of $66,446. As of December 31, 2009, $66,663,833 of the Plan’s securities on loan were secured by cash collateral with a fair value of $68,747,384 and non-cash collateral with a fair value of $75,832.

Effective September 19, 2008, Northern Trust declared a collateral deficiency under its Securities Lending Authorization Agreement (“Lending Agreements”) with respect to five of its commingled cash collateral investment pools. As a consequence of the collateral deficiency, Northern Trust has allocated a portion of the collateral deficiency to each participating client, including the Plan, with the Plan’s allocation being $847,300.

On October 29, 2008, Northern Trust made cash payment of $100,240 to reduce the Plan’s allocated portion of the collateral deficiency. Effective January 1, 2009 through December 31, 2009 security lending income earned during the Plan year was held to offset the collateral deficiency. On December 3, 2009, Northern Trust made a reversal adjustment of $553,789 to reduce the collateral deficiency. On December 15, 2009 the Plan made a payment of $128,094 to reduce the liability of the collateral deficiency. The $128,094 was made up of the $100,240 cash payment from Northern Trust and $27,854 from securities lending income. On March 5, 2010, Northern Trust reversed the remaining collateral deficiency of $165,418, bringing the collateral deficiency in the Plan to zero.

 

 

15

Table of Contents

McDONALD’S CORPORATION PROFIT SHARING AND SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2010 and 2009

 

 

 

NOTE 12 - SECURITIES LENDING (Continued)

 

As of May 30, 2010, all remaining securities lending income earned in 2009 was allocated to participants. As of December 31, 2010, the Plan has not exited the Lending Agreements (See Note 14).

NOTE 13 - FORM 5500 RECONCILIATION

Following is a reconciliation of net assets available for benefits per the financial statements at December 31, 2010 and 2009 to net assets per the Form 5500 (amounts in thousands):

 

     2010      2009  

Net assets available for benefits per the financial statements

    $ 2,784,438       $ 2,451,107   

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

      8,980         (9,265 ) 
                 

Net assets per the Form 5500

    $ 2,793,418       $ 2,441,842   
                 

Following is a reconciliation of the increase in net assets available for benefits per the financial statements for the year ended December 31, 2010, to the net income per the Form 5500 (amounts in thousands):

 

Increase in net assets available for benefits per the financial statements

    $  333,331   

Change in the adjustment from fair value to contract value for fully benefit responsive investment contracts at December 31, 2010

      18,245   
        

Net income per the Form 5500

    $ 351,576   
        

NOTE 14 - SUBSEQUENT EVENTS

Effective January 13, 2011 a full recall of all outstanding securities loans described in Note 12 was approved.

Effective February 1, 2011, the Plan is no longer participating in the Securities Lending program.

Effective April 1, 2011 Acadian Asset Management LLC, the fund manager for the Global Themes Fund was replaced by Dimensional Fund Advisors and Wellington Management Company LLP, the fund manager for the Blended Stock/Bond Fund was replaced by BlackRock.

 

 

16

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, 2010

FORM 5500, SCHEDULE H, LINE 4I - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES

 

(a)   

(b) (c)

IDENTITY OF ISSUER/DESCRIPTION

    (d)
COST**		      (e)
MARKET VALUE		  
  

PENDING TRADES

      
  

United States dollar - Pending Trade Purchases

         (52,213.93 ) 
  

United States dollar - Pending Trade Purchases

         (491,780.05 ) 
  

United States dollar - Pending Trade Purchases

         (928,104.41 ) 
  

United States dollar - Pending Trade Sales

         9,752.47   
  

United States dollar - Pending Trade Sales

         557,705.45   
  

United States dollar - Pending Trade Sales

         675,786.53   
              
  

TOTAL PENDING TRADES

         (228,853.94 ) 
  

CORPORATE COMMON STOCKS & AMERICAN DEPOSITORY RECEIPTS

      
  

#REORG/CLARUS NAME CHNG WITH CU CHNG BLACK DIAMOND INC COM 2065750 1-20-2011

         203,603.40   
  

#REORG/PENN WEST STOCK MERGER PENN WEST PETROLEUM LTD 2065331 EFF DT 01/01/2011

         112,424.00   
  

#REORG/SANDSTRM SPIN OFF SANDSTORM MTLS & ENRGY LTD CM 2A22M3U EFF 5/10/10

         107,498.62   
  

1ST HORIZON NATL CORP COM

         596,209.36   
  

1ST NIAGARA FINL GROUP INC NEW COM

         84,579.00   
  

1ST UTD BANCORP INC FLA COM STK

         128,871.50   
  

99 CENTS ONLY STORES COM

         299,273.50   
  

ABBOTT LAB COM

         392,334.99   
  

ABERCROMBIE & FITCH CO CL A

         146,380.20   
  

ABM INDS INC COM

         191,043.20   
  

ACACIA RESH CORP AR ACACIA TECHNOLOGIES COM AR ACACIA TECHNOLOGIES COM

         86,458.02   

 

 

17

Table of Contents
 

ACCELRYS INC COM

        164,638.80   
 

ACCENTURE PLC SHS CL A NEW

        1,059,506.50   
 

ACCO BRANDS CORP COM

        199,521.36   
 

ACE LTD COM STK

        687,862.50   
 

ACME PACKET INC COM STK

        82,398.00   
 

ACTUANT CORP CL A NEW

        160,518.60   
 

ADR AMARIN CORP PLC SPONSORED ADR NEW

        86,016.17   
 

ADR ANHEUSER BUSCH INBEV SA/NV SPONSOREDADR

        1,070,152.05   
 

ADR ASML HOLDING NV NY REGISTERED SHS

        148,759.20   
 

ADR AXA SA SPONSORED ADR

        38,711.25   
 

ADR BAIDU INC SPONSORED ADR

        1,133,841.38   
 

ADR BASF AKTIENGESELLSCHAFT - LEVEL I

        203,898.00   
 

ADR BAYERISCHE MOTOREN WERKE AG ADR

        338,935.19   
 

ADR BHP BILLITON LTD SPONSORED ADR

        466,458.40   
 

ADR BRIT AMERN TOB PLC SPONSORED COM STK

        168,997.50   
 

ADR CHINA GRENTECH CORP LTD

        150,442.62   
 

ADR ELONG INC SPONSORED ADR ADR

        37,105.20   
 

ADR FIBRIA CELULOSE S A SPONSORED ADR REPSTG COM SHS

        1,744.00   
 

ADR FOCUS MEDIA HLDG LTD SPONSORED ADR

        395,419.83   
 

ADR LVMH MOET HENNESSY LOUIS VUITTON ADR

        154,246.95   
 

ADR NESTLE S A SPONSORED ADR REPSTG REG SH

        277,924.50   
 

ADR NOVARTIS AG

        150,322.50   
 

ADR RANDGOLD RES LTD ADR

        1,360,091.60   
 

ADR RIO TINTO PLC SPONSORED ADR

        406,742.16   
 

ADR SANOFI-AVENTIS SPONSORED ADR

        2,222,258.50   
 

ADR TENARIS S A SPONSORED ADR

        173,879.00   
 

ADR TENCENT HLDGS LTD ADR

        552,833.37   

 

 

18

Table of Contents
 

ADR TEVA PHARMACEUTICAL INDS

        1,136,538.26   
 

ADR UNILEVER N V NEW YORK SHS NEW

        164,065.00   
 

ADR UNILEVER PLC SPONSORED ADR NEW

        790,219.20   
 

ADR VALE S A ADR

        349,157.00   
 

ADR VODAFONE GROUP PLC NEW SPONSORED ADR

        2,411,737.50   
 

ADR YARA INTL ASA SPONSORED ADR

        21,750.00   
 

AEROFLEX HOLDING CORPORATION COMMON STOCK

        64,319.50   
 

AFLAC INC COM

        1,675,971.00   
 

AGILENT TECHNOLOGIES INC COM

        1,660,017.24   
 

AGNICO-EAGLE MINES LTD COM

        362,407.50   
 

AGRIUM INC COM

        172,031.25   
 

AIR TRANS SVCS GROUP INC COM STK

        43,410.50   
 

AKAMAI TECHNOLOGIES INC COM STK

        66,811.00   
 

AKORN INC COM

        87,869.32   
 

ALEXION PHARMACEUTICALS INC COM

        152,239.50   
 

ALLERGAN INC COM

        874,787.13   
 

ALLIED HEALTHCARE PRODS INC COM

        208,860.30   
 

ALPHA NAT RES INC COM STK

        115,857.90   
 

AMAZON COM INC COM

        3,568,140.00   
 

AMER GREETINGS CORP CL A COM

        780,032.00   
 

AMERESCO INC

        38,786.36   
 

AMERICAN TOWER CORP CL A

        882,011.20   
 

AMERIGON INC COM

        595,168.64   
 

AMERIGROUP CORP COM

        72,468.00   
 

AMERISOURCEBERGEN CORP COM

        126,926.40   
 

AMERN RIV BANKSHARES

        127,634.92   
 

AMTECH SYS INC COM PAR $0.01 NEW STK

        744,490.30   

 

 

19

Table of Contents
 

ANADIGICS INC COM

        690,137.91   
 

ANNALY CAP MGMT INC COM

        288,565.76   
 

ANWORTH MTG AST CORP COM

        207,165.00   
 

AON CORP COM

        1,480,141.70   
 

APACHE CORP COM

        2,043,363.74   
 

APPLE INC COM STK

        3,702,988.80   
 

APPROACH RES INC COM STK

        57,311.10   
 

ARCH COAL INC COM

        52,590.00   
 

ARCTIC CAT INC COM

        34,960.32   
 

ARDEA BIOSCIENCES INC COM STK

        15,808.00   
 

ARGO GROUP INTERNATIONAL HOLDINGS COM STK

        512,316.00   
 

ARQULE INC COM

        26,356.30   
 

ARTIO GLOBAL INVS INC COM CL A COM CL A

        146,541.25   
 

ARUBA NETWORKS INC COM

        112,125.60   
 

ASHFORD HOSPITALITY TR INC COM SHS

        56,442.85   
 

ASIA ENTERTAINMENT & RESOURCES LTD STOCK

        75,384.96   
 

ATHEROS COMMUNICATIONS INC COM

        151,941.60   
 

ATLAS PIPELN PARTNERS L P

        259,528.40   
 

AUTODESK INC COM

        192,910.00   
 

AUTOZONE INC COM

        129,480.25   
 

AVERY DENNISON CORP COM

        223,555.20   
 

AVON PRODUCTS INC COM USD0.25

        213,591.00   
 

AXCELIS TECHNOLOGIES INC COM STK ISIN# US0545401095

        423,254.88   
 

AXT INC COM

        160,274.88   
 

BAKERS FOOTWEAR GROUP INC COM

        58,438.80   
 

BANCORP INC DEL COM STK

        82,600.74   
 

BB&T CORP COM

        1,476,183.50   

 

 

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BCE INC COM NEW

        1,866,969.00   
 

BE AEROSPACE INC COM

        572,780.04   
 

BIGBAND NETWORKS INC COM CDT-COM

        146,235.60   
 

BK HAW CORP COM

        605,232.20   
 

BLACKROCK INC COM STK

        1,324,531.00   
 

BLUE COAT SYS INC COM NEW

        140,389.00   
 

BOEING CO COM

        793,887.90   
 

BORG WARNER INC COM

        141,825.60   
 

BRIGGS & STRATTON CORP CAP

        401,085.30   
 

BRIGHAM EXPL CO COM

        83,109.24   
 

BROADCOM CORP CL A

        1,197,799.20   
 

BROADSOFT INC COM

        121,143.24   
 

BROCADE COMMUNICATIONS SYS INC COM NEW STK

        179,621.95   
 

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

        77,399.25   
 

BROWN & BROWN INC COM

        392,017.50   
 

C H ROBINSON WORLDWIDE INC COM NEW COM NEW

        397,902.78   
 

CAI INTL INC COM

        49,058.80   
 

CALAVO GROWERS INC COM

        48,105.35   
 

CALLIDUS SOFTWARE INC COM STK

        617,924.16   
 

CAMERON INTL CORP COM STK

        114,649.80   
 

CANADIAN NATL RY CO COM

        191,101.25   
 

CAPSTEAD MTG CORP COM NO PAR COM NO PAR

        317,897.50   
 

CARIBOU COFFEE INC COM

        10,120.32   
 

CARMAX INC COM

        264,604.00   
 

CARRIZO OIL & GAS INC COM

        691,248.58   
 

CASELLA WASTE SYS INC CL A COM STK

        500,731.25   
 

CATERPILLAR INC COM

        384,006.00   

 

 

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CAVCO INDS INC DEL COM STK

        395,604.37   
 

CB RICHARD ELLIS GROUP INC CL A CL A

        149,504.00   
 

CDN NAT RES LTD COM CDN NAT RES COM STK

        580,524.98   
 

CDN PAC RY LTD COM CDN PAC RY LTD

        307,847.50   
 

CELGENE CORP COM

        1,237,918.48   
 

CENT EUROPEAN DISTR CORP COM STK

        363,537.50   
 

CENTURY CASINOS INC COM

        204,957.06   
 

CEPHEID INC COM

        716,215.50   
 

CEVA INC COM

        62,996.50   
 

CF INDS HLDGS INC COM

        189,210.00   
 

CHARLES RIV LABORATORIES INTL INC COM

        44,425.00   
 

CHART INDS INC COM PAR $0.01 COM PAR $0.01

        534,737.40   
 

CHEVRON CORP COM

        2,336,000.00   
 

CHIMERA INVT CORP COM STK

        1,252,982.82   
 

CIMAREX ENERGY CO COM

        123,056.70   
 

CIN BELL INC NEW COM STK

        212,156.00   
 

CISCO SYSTEMS INC

        1,066,323.30   
 

CITRIX SYS INC COM

        111,166.25   
 

CLIFFS NAT RES INC COM STK

        379,518.65   
 

COACH INC COM

        1,343,369.28   
 

COCA COLA CO COM

        2,130,948.00   
 

COGENT COMMUNICATIONS GROUP INC COM NEW

        178,616.48   
 

COGNIZANT TECHNOLOGY SOLUTIONS CORP CL ACL A

        368,721.99   
 

COINSTAR INC COM

        664,016.60   
 

COLUMBIA BKG SYS INC COM

        345,910.50   
 

COMMERCIAL VEH GROUP INC COM

        112,986.25   
 

COMPLETE PRODTN SVCS INC COM

        314,884.80   

 

 

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COMPUTER PROGRAMS & SYS INC COM

        156,164.56   
 

COMSCORE INC COM

        531,446.51   
 

COMSTOCK RES INC COM NEW COM NEW

        616,456.00   
 

CONCHO RES INC COM STK

        144,655.50   
 

CONOCOPHILLIPS COM

        2,921,490.00   
 

CON-WAY INC COM STK

        631,198.20   
 

COOPER INDUSTRIES PLC NEW IRELAND COM STK

        214,215.75   
 

COOPER TIRE & RUBBER CO COM, NO PAR

        449,199.00   
 

CORE LABORATORIES NV NLG0.03

        133,575.00   
 

CORRECTIONS CORP AMER

        83,700.40   
 

COST PLUS INC CALIF COM

        85,544.30   
 

COSTCO WHOLESALE CORP NEW COM

        1,165,252.77   
 

COVIDIEN PLC USD0.20

        1,550,157.00   
 

CRANE CO COM

        266,955.00   
 

CRAWFORD & CO CL A CL A

        159,079.95   
 

CRAY INC COM NEW STK

        232,117.60   
 

CREE INC COM

        303,094.00   
 

CROCS INC COM

        714,075.20   
 

CROSS CTRY HEALTHCARE INC COM

        118,198.85   
 

CROWN CASTLE INTL CORP COM STK

        161,294.40   
 

CROWN HLDGS INC COM

        76,774.00   
 

CTR FINL CORP CAL COM STK

        103,527.64   
 

CUMMINS INC

        269,524.50   
 

CVS CAREMARK CORP COM STK

        643,245.00   
 

CYBERONICS INC COM

        738,555.18   
 

CYPRESS SEMICONDUCTOR CORP COM

        417,492.60   
 

DAKTRONICS INC COM

        55,497.12   

 

 

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DARDEN RESTAURANTS INC COM

        279,568.80   
 

DEERE & CO COM

        1,112,620.85   
 

DEVRY INC DEL COM

        98,359.00   
 

DIAGEO PLC SPONSORED ADR NEW

        143,085.25   
 

DIAMONDROCK HOSPITALITY CO COM STK

        256,200.00   
 

DICE HLDGS INC COM STK

        343,280.70   
 

DICKS SPORTING GOODS INC OC-COM

        101,250.00   
 

DIGITAL RLTY TR INC COM

        170,082.00   
 

DISCOVER FINL SVCS COM STK

        79,308.40   
 

DOLAN CO COM STK

        307,840.80   
 

DOLLAR GEN CORP NEW COM

        960,768.42   
 

DR PEPPER SNAPPLE GROUP INC COM STK

        93,174.00   
 

DRYSHIPS INC COM USD0.01

        676,005.00   
 

DSW INC CL A CL A

        713,301.30   
 

DYCOM INDS INC COM

        370,151.25   
 

DYNAMIC MATLS CORP COM

        413,617.82   
 

DYNAVAX TECHNOLOGIES CORP COM

        38,614.40   
 

EAST WEST BANCORP INC COM

        303,807.00   
 

EASTMAN CHEM CO COM

        218,608.00   
 

ECOLAB INC COM

        98,319.00   
 

EL PASO CORP COM

        119,643.20   
 

ELECTRO RENT CORP COM

        188,360.96   
 

ELLIS PERRY INTL INC COM

        40,545.72   
 

EMERGENCY MED SVCS CORP CL A COM STK

        171,862.60   
 

EMERGENT BIOSOLUTIONS INC COM

        865,720.92   
 

EMPIRE RESORTS INC COM STOCK

        64,673.70   
 

ENDEAVOUR MINING CORPORATION

        193,333.32   

 

 

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ENDO PHARMACEUTICALS HLDGS INC COM

        162,480.50   
 

ENDOLOGIX INC COM

        256,735.05   
 

ENERGY XXI (BERMUDA) COM STK USD $0.005

        247,950.87   
 

ENSIGN GROUP INC COM STK

        141,385.95   
 

ENTEROMEDICS INC COM NEW COM STK

        104,242.60   
 

ENTRAVISION COMMUNICATIONS CORP CL A

        220,899.21   
 

ENTROPIC COMMUNICATIONS INC COM STK

        117,381.36   
 

EQUINIX INC COM NEW COM NEW

        188,929.50   
 

ESTEE LAUDER COMPANIES INC CL A     USD0.01

        546,419.70   
 

ESTERLINE TECHNOLOGIES CORP COM STK

        349,809.00   
 

EVANS & SUTHERLAND COMPUTER CORP COM

        57,007.00   
 

EXPEDITORS INTL WASH INC COM

        389,516.40   
 

EXPRESS SCRIPTS INC COM

        1,359,033.20   
 

EZCORP INC CL A NON VTG

        342,516.25   
 

F5 NETWORKS INC COM STK

        346,225.60   
 

FASTENAL CO COM

        145,581.30   
 

FINISAR CORPORATION COMMON STOCK

        836,664.20   
 

FIRST ACCEP CORP COM STK

        149,626.80   
 

FIRST MIDWEST BANCORP INC DEL COM

        302,457.60   
 

FIRST SOLAR INC COM

        54,658.80   
 

FLOWSERVE CORP COM

        160,947.00   
 

FMC TECHNOLOGIES INC COM

        113,360.25   
 

FORMFACTOR INC COM STK

        208,591.20   
 

FORTINET INC COM

        67,935.00   
 

FORTUNE BRANDS INC COM USD3.125

        141,587.50   
 

FOSTER L B CO CL A

        29,558.68   
 

FRESH DEL MONTE PRODUCE INC COM STK

        619,758.00   

 

 

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FSI INTL INC COM

        357,989.06   
 

GENOPTIX INC COM

        570,695.10   
 

GENTEX CORP COM

        242,805.84   
 

GEO GROUP INC COM STK

        504,198.36   
 

GILEAD SCIENCES INC

        378,091.92   
 

GLOBAL INDS LTD COM

        301,316.40   
 

GOLDCORP INC NEW COM

        270,914.16   
 

GOLDMAN SACHS GROUP INC COM

        3,473,512.96   
 

GOODRICH CORPORATION

        139,150.60   
 

GOOGLE INC CL A CL A

        2,183,433.72   
 

GREAT BASIN GOLD LTD COM STK

        651,401.28   
 

GREEN MTN COFFEE ROASTERS

        97,594.20   
 

GREENBRIER COS INC COM STK

        678,375.81   
 

GUESS INC COM

        164,673.60   
 

H J HEINZ

        122,413.50   
 

HAEMONETICS CORP MASS COM

        72,025.20   
 

HANSEN NAT CORP COM

        55,939.60   
 

HARMAN INTL INDS INC NEW COM STK USD0.01

        671,164.80   
 

HARSCO CORP COM

        320,724.00   
 

HATTERAS FINL CORP COM REIT

        243,976.20   
 

HCC INS HLDGS INC COM

        424,694.50   
 

HEALTHCARE SVCS GROUP INC COM

        148,675.26   
 

HELIX ENERGY SOLUTIONS GROUP INC COM STK

        214,331.70   
 

HELMERICH & PAYNE INC COM

        247,005.60   
 

HENRY JACK & ASSOC INC COM

        106,543.25   
 

HEWLETT PACKARD CO COM

        211,678.80   
 

HILL INTL INC COM

        580,423.70   

 

 

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HILLTOP HLDGS INC COM STK

        140,864.00   
 

HISOFT TECHNOLOGY INT-ADR

        45,300.00   
 

HONEYWELL INTL INC COM STK

        2,227,404.00   
 

HOSPIRA INC COM

        322,723.55   
 

HUGHES COMMUNICATIONS INC COM STK

        480,548.52   
 

IBERIABANK CORP COM

        892,863.00   
 

IHS INC COM CL A COM CL A

        229,111.50   
 

ILLUMINA INC COM

        932,428.14   
 

INGERSOLL-RAND PLC COM STK

        1,165,430.41   
 

INTEGRATED ELECTRICAL SVCS INC COM NEW STK

        74,340.49   
 

INTER PARFUMS INC COM

        52,911.95   
 

INTERACTIVE INTELLIGENCE INC COM STOCK

        75,314.64   
 

INTERCONTINENTALEXCHANGE INC COM

        139,405.50   
 

INTERDIGITAL INC PA COM

        67,040.40   
 

INTERMEC INC COM

        363,949.68   
 

INTERNATIONAL BUSINESS MACHS CORP COM

        2,496,240.84   
 

INTERNATIONAL COAL GROUP INC NEW COM

        716,058.36   
 

INTERNET CAP GROUP INC COM NEW

        24,529.50   
 

INTEROIL CORP COM

        1,709,860.75   
 

INTERPUBLIC GROUP COMPANIES INC COM

        283,660.20   
 

INTERTAPE POLYMER GROUP INC COM

        94,266.65   
 

INTL FLAVORS & FRAGRANCES INC COM

        49,197.15   
 

INTL PAPER CO COM

        61,290.00   
 

INTREPID POTASH INC COM

        322,856.82   
 

INTUIT COM

        204,595.00   
 

INTUITIVE SURGICAL INC COM NEW STK

        87,635.00   
 

INVESCO LTD COM STK USD0.10

        324,569.40   

 

 

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IPG PHOTONICS CORP COM

        666,454.74   
 

IROBOT CORP COM

        27,666.56   
 

ITC HLDGS CORP COM STK

        86,772.00   
 

IXIA COM

        602,234.20   
 

JAKKS PAC INC COM

        50,378.30   
 

JAMES RIV COAL CO COM NEW STK

        972,342.71   
 

JETBLUE AWYS CORP COM

        148,791.10   
 

JOHNSON CTL INC COM

        1,537,550.00   
 

JOY GLOBAL INC COM

        187,380.00   
 

JUNIPER NETWORKS INC COM

        1,704,707.16   
 

KAYDON CORP COM

        181,407.60   
 

KENNAMETAL INC CAP

        664,703.70   
 

KENNEDY-WILSON HLDGS INC COM

        158,291.55   
 

KEY ENERGY SVCS INC

        208,393.90   
 

KIRBY CORP COM

        259,895.00   
 

KNIGHT CAP GROUP INC COM

        359,505.30   
 

KODIAK OIL & GAS CORP COM

        645,268.80   
 

KOHLS CORP COM

        176,605.00   
 

KORN / FERRY INTL COM NEW

        182,776.99   
 

KRAFT FOODS INC CL A

        1,000,316.46   
 

KRISPY KREME DOUGHNUTS INC COM STK

        60,062.90   
 

K-SWISS INC CL A

        36,898.73   
 

LABORATORY CORP AMER HLDGS COM NEW COM NEW

        66,819.20   
 

LAM RESH CORP COM

        181,230.00   
 

LEXICON PHARMACEUTICALS INC COM STK

        19,873.44   
 

LINCOLN NATL CORP COM

        161,993.25   
 

LINDSAY CORPORATION COM

        558,939.15   

 

 

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LITHIA MTRS INC CL A

        31,380.84   
 

LIVEPERSON INC COM STK ISIN# US5381461012

        73,427.40   
 

LO JACK CORP COM

        301,843.50   
 

LOGMEIN INC COM

        172,039.20   
 

LOWES COS INC COM

        1,978,812.00   
 

LUCARA DIAMOND CORP

        126,493.34   
 

LYONDELLBASELL INDU-CL A-W/I

        114,552.00   
 

M & T BK CORP COM

        104,460.00   
 

MAGNUM HUNTER RES CORP DEL COM

        110,232.00   
 

MANPOWER INC WIS COM

        411,705.60   
 

MANULIFE FINL CORP COM

        33,501.00   
 

MARATHON OIL CORP COM

        2,032,576.70   
 

MARRIOTT INTL INC NEW COM STK CL A

        1,544,291.04   
 

MARVELL TECH GROUP COM USD0.002

        278,546.80   
 

MASTERCARD INC CL A

        1,402,928.60   
 

MCMORAN EXPL CO COM

        925,200.06   
 

MEAD JOHNSON NUTRITION COM USD0.01

        911,402.25   
 

MEDCO HEALTH SOLUTIONS INC COM

        1,010,219.76   
 

MEDICIS PHARMACEUTICAL CORP CL A NEW

        74,342.25   
 

MEDIDATA SOLUTIONS INC COM

        54,064.32   
 

MELCO CROWN ENTERTAINMENT LTD

        373,898.04   
 

MEMC ELECTR MATLS INC COM

        240,232.10   
 

MERCADOLIBRE INC COM STK

        51,987.00   
 

MERCK & CO INC NEW COM

        2,385,415.52   
 

MERCURY GEN CORP NEW COM

        153,932.79   
 

MERGE HEALTHCARE INC COM STK

        127,286.25   
 

METLIFE INC COM

        1,553,178.00   

 

 

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MFA FINL INC

        112,444.80   
 

MFC MARKET VECTORS ETF TR JR GOLD MINERSETF

        242,571.09   
 

MICRON TECH INC COM

        343,063.52   
 

MICROSOFT CORP COM

        2,099,584.00   
 

MIDSOUTH BANCORP INC COM

        112,051.20   
 

MINERA ANDES INC COM

        785,655.20   
 

MOLSON COORS BREWING CO CL B CL B

        1,161,898.50   
 

MONSANTO CO NEW COM

        2,174,160.80   
 

MORGAN STANLEY COM STK USD0.01

        385,348.02   
 

MORGANS HOTEL GROUP CO COM STK

        40,334.29   
 

MOVADO GROUP INC COM

        293,618.88   
 

MRV COMMUNICATIONS INC COM

        486,584.65   
 

MSCI INC CL A CL A

        86,880.80   
 

NABORS INDUSTRIES COM USD0.10

        299,701.50   
 

NEKTAR THERAPEUTICS COM

        175,351.10   
 

NEO MATL TECHNOLOGIES INC COM STK

        99,058.10   
 

NETAPP INC COM STK

        2,050,722.48   
 

NETLOGIC MICROSYSTEMS INC COM

        126,268.20   
 

NETSCOUT SYS INC COM

        200,302.05   
 

NEUROCRINE BIOSCIENCES INC COM

        58,973.16   
 

NEWFIELD EXPLORATION

        120,423.70   
 

NEWMONT MINING CORP NEW COM

        2,244,713.63   
 

NEWPARK RES INC COM PAR $0.01 NEW COM PAR $0.01 NEW

        397,129.04   
 

NII HLDGS INC COM NEW CL B NEW

        95,572.40   
 

NIKE INC CL B

        1,839,263.44   
 

NN INC COM

        66,472.08   
 

NOBLE CORPORATION (SWITZERLAND) COM USD0.10

        292,062.05   

 

 

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NORDSTROM INC COM

        161,467.80   
 

NORTHERN OIL & GAS INC NEV COM STK

        146,498.64   
 

NORTHWEST BANCSHARES INC MD COM

        50,156.40   
 

NPS PHARMACEUTICALS INC COM

        63,745.10   
 

NUANCE COMMUNICATIONS INC COM

        235,431.00   
 

OCCIDENTAL PETROLEUM CORP

        4,518,289.80   
 

OIL STS INTL INC COM ISIN US6780261052

        102,544.00   
 

OMNICELL INC COM

        128,027.00   
 

OMNIVISION TECHNOLOGIES INC COM

        713,541.78   
 

ON ASSIGNMENT INC COM

        231,623.00   
 

ON SEMICONDUCTOR CORP COM

        825,345.56   
 

ONCOGENEX PHARMACEUTICALS INC COM STK

        34,033.33   
 

ONYX PHARMACEUTICALS INC DEL COM

        54,198.90   
 

OPENTABLE INC COM

        22,553.60   
 

ORACLE CORP COM

        1,789,358.40   
 

ORASURE TECHNOLOGIES INC COM

        294,584.00   
 

ORBITAL SCI CORP COM

        315,363.30   
 

ORIGEN FINL INC COM

        166,851.50   
 

OSI SYS INC COM

        245,539.08   
 

OUTDOOR CHANNEL HLDGS INC COM NEW COM NEW

        141,055.41   
 

OWENS ILL INC COM NEW

        1,089,850.00   
 

P F CHANGS CHINA BISTRO INC COM STK

        30,045.20   
 

PAC PREMIER BANCORP COM

        191,171.97   
 

PANTRY INC COM ISIN #US6986571031

        159,177.90   
 

PARAMETRIC TECHNOLOGY CORP COM NEW STK

        209,529.00   
 

PARKER-HANNIFIN CORP COM

        91,478.00   
 

PARTNERRE HLDG LTD COM STK

        84,367.50   

 

 

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PATRICK INDS INC COM

        64,235.43   
 

PEPSICO INC COM

        2,900,652.00   
 

PETAQUILLA RES LTD COM

        72,790.37   
 

PETRO DEV CORP COM

        74,542.86   
 

PETROHAWK ENERGY CORP COM

        98,550.00   
 

PFIZER INC COM STK $.11 1/9 PAR

        3,065,125.50   
 

PHILLIPS VAN HEUSEN CORP COM

        488,957.60   
 

PIER 1 IMPORTS INC COM

        657,079.50   
 

PIONEER NAT RES CO COM STK

        163,221.60   
 

PLAINS EXPL & PRODTN CO COM

        179,501.90   
 

PLANTRONICS INC NEW COM

        191,683.00   
 

PLEXUS CORP COM

        117,262.60   
 

PMC SIERRA INC COM

        100,932.50   
 

POLO RALPH LAUREN CORP CL A

        1,238,089.04   
 

POTASH CORP SASK INC COM

        268,010.73   
 

POWER ONE INC NEW COM USD0.001

        265,954.80   
 

POWERWAVE TECHNOLOGIES INC COM

        30,830.52   
 

PRECISION CASTPARTS CORP COM

        1,372,053.76   
 

PREMIERE GLOBAL SVCS INC COM

        217,022.00   
 

PRICELINE COM INC COM NEW STK

        325,633.25   
 

PRIDE INTL INC DEL COM

        124,806.00   
 

PRIMORIS SVCS CORP COM

        546,336.72   
 

PROTALIX BIOTHERAPEUTICS INC COM STK

        57,504.76   
 

PUDA COAL INC COM PAR $.001 COM PAR $.001

        41,279.69   
 

QEP RES INC COM STK

        88,959.50   
 

QUALCOMM INC COM

        2,714,229.56   
 

QUESTAR CORP COM

        69,465.90   

 

 

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QUESTCOR PHARMACEUTICALS INC COM

        79,630.38   
 

RADIANT SYS INC COM

        122,821.32   
 

RANGE RES CORP COM

        596,929.58   
 

RARE ELEMENT RES LTD COM

        40,551.50   
 

RAYMOND JAMES FNCL INC COM STK

        630,292.50   
 

REALD INC COM

        172,238.40   
 

RED HAT INC COM

        737,977.90   
 

REDWOOD TR INC COM

        129,876.07   
 

REGAL ENTMT GROUP CL A CL A

        193,651.30   
 

RENTRAK CORP COM

        71,117.28   
 

REX ENERGY CORP COM STK

        266,994.00   
 

RICHARDSON ELECTRS LTD COM

        60,261.95   
 

RIVERBED TECHNOLOGY INC COM

        40,093.80   
 

ROSS STORES INC COM

        235,606.25   
 

ROYAL CARIBBEAN CRUISES COM STK

        112,330.00   
 

ROYAL GOLD INC COM STK USD0.01

        325,867.95   
 

RSC HLDGS INC COM

        654,683.84   
 

SALESFORCE COM INC COM STK

        1,629,144.00   
 

SAN GOLD CORP COM STK

        265,267.00   
 

SANDISK CORP COM

        188,969.40   
 

SANDRIDGE ENERGY INC COM

        66,429.00   
 

SANDSTORM METALS & ENERGY LTD COM

        12,601.22   
 

SANDSTORM RES LTD COM

        212,630.20   
 

SANDSTORM RES LTD R1933

        101,081.87   
 

SANDSTORM RESOURCES LTD WARRANT 800132938 LTD PW EXP19OCT15(R1933)

        997.58   
 

SANDVINE CORP COM

        527,107.20   
 

SATCON TECH CORP COM

        711,369.00   

 

 

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SCHLUMBERGER LTD COM COM

        2,734,374.50   
 

SCHOLASTIC CORP COM

        411,344.50   
 

SCHWAB CHARLES CORP COM NEW

        1,599,648.12   
 

SCRIPPS NETWORKS INTERACTIVE INC CL A COM STK

        166,997.25   
 

SEMILEDS CORP COM

        32,216.45   
 

SHIRE PLC ADR

        953,823.64   
 

SHORETEL INC COM

        816,605.79   
 

SIERRA BANCORP COM STK

        158,643.05   
 

SILICON IMAGE INC COM STK

        785,656.20   
 

SILVER STD RES INC COM

        173,948.08   
 

SILVER WHEATON CORP COM

        80,812.80   
 

SMITH MICRO SOFTWARE INC COM STK

        446,103.08   
 

SODASTREAM INTERNATIONAL LTD COM STK

        45,633.10   
 

SPARTAN STORES INC COM

        303,828.75   
 

SPDR KBW REGL BKG ETF

        153,859.65   
 

SPECTRUM PHARMACEUTICALS INC COM

        298,013.73   
 

STANDARD MTR PRODS INC COM

        44,894.90   
 

STANDARD PKG CORP COM

        156,654.77   
 

STAR BULK CARRIERS CORP COM STK

        157,997.25   
 

STARWOOD HOTELS & RESORTS WORLDWIDE INC COM STK

        275,333.40   
 

STERLING BANCORP COM

        100,103.67   
 

STONERIDGE INC COM

        31,611.58   
 

STRYKER CORP

        127,537.50   
 

SUCCESSFACTORS INC COM STK

        123,080.00   
 

SUN COMMUNITIES INC COM

        285,633.25   
 

SUNCOR ENERGY INC NEW COM STK

        291,961.25   
 

SUPPORT COM INC COM

        807,492.24   

 

 

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SYNCHRONOSS TECHNOLOGIES INC COM STK

        638,582.68   
 

SYNNEX CORP COM STK

        419,952.00   
 

SYNOVUS FINL CORP COM

        271,590.00   
 

T ROWE PRICE GROUP INC

        232,989.40   
 

TAL INTL GROUP INC COM STK

        77,391.09   
 

TALISMAN ENERGY INC COM

        34,394.50   
 

TARGACEPT INC COM

        26,261.50   
 

TARGET CORP COM STK

        1,105,249.53   
 

TD AMERITRADE HLDG CORP COM STK

        160,465.50   
 

TEAM INC COM STK

        36,759.80   
 

TECK RESOURCES LIMITED

        27,823.50   
 

TEMPUR-PEDIC INTL INC COM

        82,924.20   
 

TENNECO INC

        686,507.64   
 

TEXAS INSTRUMENTS INC COM

        1,387,750.00   
 

TEXTRON INC COM

        364,056.00   
 

T-HQ INC COM NEW

        296,970.30   
 

TIDEWATER INC COM

        886,744.80   
 

TIER TECHNOLOGIES INC COM DELAWARE

        417,682.70   
 

TIFFANY & CO COM

        858,516.49   
 

TIME WARNER INC USD0.01

        794,599.00   
 

TITAN INTL INC ILL COM

        1,060,162.24   
 

TITAN MACHY INC COM

        668,166.00   
 

TOREADOR RES CORP COM

        27,020.32   
 

TOWER INTL INC COM STK

        30,992.88   
 

TPC GROUP INC COM

        54,606.32   
 

TRANSCEND SVCS INC COM NEW COM NEW

        143,085.36   
 

TRANSOCEAN LTD

        275,607.15   

 

 

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TRAVELZOO INC COM STK

        72,464.76   
 

TRIANGLE PETROLEUM CORPORATION COMMON STOCK

        103,623.00   
 

TRIDENT MICROSYSTEMS INC COM

        267,320.40   
 

TRILOGY ENERGY COR COM NPV

        447,610.33   
 

TW TELECOM INC CL A STK

        603,143.75   
 

TWIN DISC INC COM

        22,275.56   
 

TX CAP BANCSHARES INC COM

        215,890.50   
 

U M H PPTYS INC COM STK

        343,740.00   
 

U S HOME SYS INC COM

        107,042.10   
 

UBS AG SHS COM

        121,878.00   
 

ULTRATECH INC EFF 06-10-03

        60,276.16   
 

UNDER ARMOR INC CL A

        355,472.88   
 

UNION PAC CORP COM

        819,855.68   
 

UNITED CMNTY BK BLAIRSVILLE GA CDT-CAP STK CDT-CAP STK

        11,337.30   
 

UNITED CONTL HLDGS INC COM STK

        149,803.98   
 

UNITED PARCEL SVC INC CL B

        463,278.14   
 

UNITED STS STL CORP NEW COM

        290,347.40   
 

UNITED TECHNOLOGIES CORP COM

        843,091.20   
 

UNIVEST CORP PA COM

        84,271.32   
 

UNUM GROUP

        74,597.60   
 

UNVL HEALTH SERVICES INC CL B COM

        284,618.10   
 

URANIUM ENERGY CORP COM

        37,127.88   
 

URBAN OUTFITTERS INC COM

        119,283.11   
 

US BANCORP

        1,847,445.00   
 

UTD THERAPEUTICS CORP DEL COM STK

        290,812.00   
 

UTSTARCOM INC COM

        439,097.24   
 

VALEANT PHARMACEUTICALS INTERNATIONAL INC COMMON STOCK

        71,007.90   

 

 

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VANTAGE DRILLING CO COM STK

        622,548.22   
 

VARIAN MEDICAL SYSTEMS INC

        111,540.80   
 

VARIAN SEMICONDUCTOR EQUIPTMENT ASSOCS INC COM

        193,057.34   
 

VERIFONE SYSTEMS INC COM

        97,171.20   
 

VERISIGN INC COM

        72,854.10   
 

VERISK ANALYTICS INC CL A CL A

        91,845.60   
 

VERTEX PHARMACEUTICALS INC COM

        645,848.11   
 

VIACOM INC NEW CL B

        2,485,527.50   
 

VIROPHARMA INC COM STK

        308,642.40   
 

VISA INC COM CL A STK

        686,556.90   
 

VITAMIN SHOPPE INC COM

        77,708.40   
 

VMWARE INC CL A COM CL A COM

        1,540,365.75   
 

VOCUS INC COM

        87,903.48   
 

VOYAGER OIL & GAS INC COM

        219,348.00   
 

WA BKG CO OAK HBR WASH COM

        94,434.48   
 

WABASH NATL CORP COM

        776,649.00   
 

WALT DISNEY CO

        2,092,682.90   
 

WALTER ENERGY INC

        232,668.80   
 

WARREN RES INC COM

        57,910.24   
 

WATSON PHARMACEUTICALS INC COM

        253,601.50   
 

WD 40 CO COM STK

        121,847.00   
 

WEATHERFORD INTL LTD

        374,490.00   
 

WELLPOINT INC COM

        756,238.00   
 

WELLS FARGO & CO NEW COM STK

        2,378,482.50   
 

WESCO INTL INC COM

        58,080.00   
 

WESTERN UNION CO

        208,541.10   
 

WESTN LIBERTY BANCORP COM STK

        42,132.80   

 

 

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Table of Contents
 

WESTPORT INNOVATIONS INC COM STK

         28,891.20   
 

WHITING PETE CORP COM STK

         87,892.50   
 

WHOLE FOODS MKT INC COM

         1,365,525.28   
  WILEY JOHN & SONS INC CL A         652,134.60   
 

WILLBROS GROUP INC COM

         199,120.14   
 

WILLIAMS CO INC COM

         119,892.00   
 

WILMINGTON TR CORP NEW COM

         39,971.40   
 

WINTRUST FINL CORP COM

         437,317.20   
 

WMS INDS INC COM STK

         137,982.00   
 

WRIGHT MED GROUP INC COM

         126,491.85   
  WYNN RESORTS LTD COM         130,838.40   
 

YAMANA GOLD INC COM STK

         165,312.00   
  YRC WORLDWIDE INC COM NEW COM NEW         3,708.84   
 

ZIOPHARM ONCOLOGY COM STK

         23,313.98   
 

ZIX CORP COM

         789,954.27   
 

ZOLL MED CORP COM

         697,541.28   
             
 

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

         258,377,476.91   
  DEPOSITORY RECEIPTS***      
  McDONALD’S CORPORATION COMMON STOCK      

*

   MC DONALDS CORP COM      46,186,439.38         224,379,919.36   

*

   MC DONALDS CORP COM         300,586,940.32   

*

   MC DONALDS CORP COM         842,203,274.28   
                   
 

TOTAL McDONALD’S CORPORATION COMMON STOCK

      46,186,439.38         1,367,170,133.96   
 

INTEREST IN REGISTERED INVESTMENT CO.

      
 

MFO ARTISAN FDS INC INTL FD INV SHS

         34,857,476.23   
 

MFO DRIEHAUS MUT FDS INTERNATIONAL DISCOVERY FD

         24,096,963.59   
 

MFO MANNING & NAPIER FD INC NEW OVERSEASSER

         55,166,220.74   

 

 

38

Table of Contents
  MFO NUVEEN REAL ESTATE CLASS I         39,253,741.87   
 

MFO PIMCO FDS PAC INVT MGMT SER FOR FUTURE I DIVERSIFIED INC FD INSTL CL

         53,277,804.58   
  MFO PIMCO FDS PAC INVT MGMT SER MODERATEDURATION FD INSTL CL         67,965,312.50   
  MFO VANGUARD INSTL INDEX FD SH BEN INT         149,716,203.12   
             
  TOTAL INTEREST IN REGISTERD INVESTMENT CO.         424,333,722.63   
  MCDONALD’S LOAN ASSETS      

*

   PARTICIPANT LOANS (Varying maturity dates and interest rates)         29,427,561.95   
             
  TOTAL McDONALD’S LOAN ASSETS         29,427,561.95   
  INTEREST BEARING CASH      

*

  

The Northern Trust Company COLTV SHORT TERM INVT FD - Short Term Investment Funds

         321,729.54   
 

United States dollar - Cash

         (28,630.23 ) 

*

  

The Northern Trust Company COLTV SHORT TERM INVT FD - Short Term Investment Funds

         21,257,157.66   

*

  

The Northern Trust Company COLTV SHORT TERM INVT FD - Short Term Investment Funds

      19.62         19.62   

*

  

The Northern Trust Company COLTV SHORT TERM INVT FD - Short Term Investment Funds

      94,276.50         94,276.50   

*

  

The Northern Trust Company COLTV SHORT TERM INVT FD - Short Term Investment Funds

      3,391,420.43         3,391,420.43   

*

  

The Northern Trust Company COLTV SHORT TERM INVT FD - Short Term Investment Funds

         4,501,288.98   

*

  

The Northern Trust Company COLTV SHORT TERM INVT FD - Short Term Investment Funds

         14,174,443.51   

*

  

The Northern Trust Company COLTV SHORT TERM INVT FD - Short Term Investment Funds

         2,968,414.29   

*

  

The Northern Trust Company COLTV SHORT TERM INVT FD - Short Term Investment Funds

         6,205,603.03   

*

  

The Northern Trust Company COLTV SHORT TERM INVT FD - Short Term Investment Funds

         1,706,601.20   
                   
  TOTAL INTEREST BEARING CASH      3,485,716.55         54,592,324.53   
  WRAPPER CONTRACTS      
  GIC BANK OF AMERICA CONTRACT # 07-072 RATE 4.00% MAT 12/31/2064         270,700.00   
  GIC STATE STREET CONT 107103 RATE 4.00% MT 12/31/2064         270,295.00   
             
  TOTAL WRAPPER CONTRACTS         540,995.00   

 

 

39

Table of Contents
 

COLLECTIVE TRUSTS

      
 

JPMCB Intermediate Bond Fund

         169,192,749.00   
 

JPMCB Liquidity Fund

         1,815,373.00   
 

JPMCB Emerging Markets FI Fund

         2,359,985.00   
 

JPMCB Corporate HY Opportunity Fund

         7,170,723.00   
 

JPMCB Subadvised Fixed Income PIMCO Fund

         138,739,869.00   
 

JPMCB Subadvised Fixed Income WAMCO Fund

         134,110,669.00   
 

US Dollar

         453,843.00   
 

MFO ACADIAN GLOBAL W OPPORTUNISTIC SHORTING FD

         5,889,384.65   
 

MFO MELLON EB DAILY LIQUIDITY SMALL CAP FD

         48,986,220.06   
 

MFO UNCONSTRAINED THEMES SER 1 WTC-CIF II

         13,009,824.76   
 

MFO WELLINGTON TR CO NATL ASSN COLTV IN TREAS INFLATION SER 1 PORTFOLIO

         16,473,433.37   
 

MFO WLNGTN TR CO NATL ASSOC MLTPL COLCT INVT FDS TR II SMA CAP OPPS

         9,207,213.48   
 

MFO WELLINGTON TR COLTV CORE BD PLUS

         30,397,903.20   
 

MFO WTC CIF II INTL EQTY SER 1

         24,842,259.44   
 

MFO WTC CIF II LARGE CAP RESH EQTY SER 1

         52,818,669.60   
 

MFO WTC CIF II UNCONSTRAINED THEMES SER

         25,486,256.17   
             
 

TOTAL COMMON COLLECTIVE TRUST

         680,954,375.73   
 

POOLED CASH COLLATERAL POOL

      
 

USA CORE POLLATERAL POOL

         19,606,664.65   
             
 

TOTAL POOLED CASH COLLATERAL

         19,606,664.65   
                   
 

TOTAL ASSETS

      49,672,155.93         2,834,774,401.42   

 

* Party in Interest
** Historical cost is disclosed only for nonparticipant-directed investments
*** Includes securities loaned

 

 

40

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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 20, 2011     By:  

    /s/ Michael D. Richard

      Michael D. Richard
      Chair of the Administrative Committee

Table of Contents

EXHIBITS

 

Exhibit
Number

   

Description of Exhibit

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