EX-12 2 mck_exhbit12x3312015.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES MCK_Exhbit 12_3.31.2015

Exhibit 12
McKESSON CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
 
Years Ended March 31,
(Dollars in millions)
2015
 
2014
 
2013
 
2012
 
2011
 
 
 
 
 
 
 
 
 
 
Earnings:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations before income taxes
$
2,657

 
$
2,171

 
$
1,950

 
$
1,915

 
$
1,600

 
 
 
 
 
 
 
 
 
 
Adjustment to exclude equity in net income of and
dividends from equity investees
(1
)
 
2

 
(1
)
 
(2
)
 
9

 
 
 
 
 
 
 
 
 
 
Fixed charges
520

 
400

 
316

 
329

 
275

 
 
 
 
 
 
 
 
 
 
Amortization of capitalized interest
1

 
2

 
2

 
3

 
3

 
 
 
 
 
 
 
 
 
 
Less: Capitalized interest
—

 
—

 
(1
)
 
(1
)
 
(2
)
 
 
 
 
 
 
 
 
 
 
Earnings as adjusted (a)
$
3,177

 
$
2,575

 
$
2,266

 
$
2,244

 
$
1,885

 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense (b) (c)
$
374

 
$
300

 
$
240

 
$
250

 
$
222

 
 
 
 
 
 
 
 
 
 
Capitalized interest
—

 
—

 
1

 
1

 
2

 
 
 
 
 
 
 
 
 
 
Portion of rental expense representative of the interest
factor (d)
146

 
100

 
75

 
78

 
51

 
 
 
 
 
 
 
 
 
 
Total fixed charges (a)
$
520

 
$
400

 
$
316

 
$
329

 
$
275

 
 
 
 
 
 
 
 
 
 
Ratio:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges (a)
6.1

 
6.4

 
7.2

 
6.8

 
6.9


(a)
Fiscal years 2011 through 2014 have been recast to exclude our Brazil pharmaceutical distribution business as a discontinued operation and reflect the reclassification of a business from discontinued operations to continuing operations.
(b)
Interest expense includes amortization of debt discounts and deferred loan costs.
(c)
Interest expense on uncertain tax liabilities is excluded from interest expense as the company records these amounts within income tax expense.
(d)
One-third of net rent expense is the portion of rental expense deemed representative of the interest factor.