EX-12 2 mck_exhibit12x33117.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit


Exhibit 12
McKESSON CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
 
Years Ended March 31,
(Dollars in millions)
2017
 
2016
 
2015
 
2014
 
2013
 
 
 
 
 
 
 
 
 
 
Earnings:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations before income taxes (d)
$
6,891

 
$
3,250

 
$
2,657

 
$
2,171

 
$
1,950

 
 
 
 
 
 
 
 
 
 
Adjustment for equity in net income of and
dividends from equity investees
1

 
(1
)
 
(1
)
 
2

 
(1
)
 
 
 
 
 
 
 
 
 
 
Fixed charges - below
468

 
498

 
520

 
400

 
316

 
 
 
 
 
 
 
 
 
 
Amortization of capitalized interest
1

 
1

 
1

 
2

 
2

 
 
 
 
 
 
 
 
 
 
Less: Capitalized interest
(2
)
 
(1
)
 
—

 
—

 
(1
)
 
 
 
 
 
 
 
 
 
 
Earnings as adjusted
$
7,359

 
$
3,747

 
$
3,177

 
$
2,575

 
$
2,266

 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense (a) (b)
$
308

 
$
353

 
$
374

 
$
300

 
$
240

 
 
 
 
 
 
 
 
 
 
Capitalized interest
2

 
1

 
—

 
—

 
1

 
 
 
 
 
 
 
 
 
 
Portion of rental expense representative of the interest
factor (c)
158

 
144

 
146

 
100

 
75

 
 
 
 
 
 
 
 
 
 
Total fixed charges
$
468

 
$
498

 
$
520

 
$
400

 
$
316

 
 
 
 
 
 
 
 
 
 
Ratio:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
15.7

 
7.5

 
6.1

 
6.4

 
7.2


(a)
Interest expense includes amortization of debt discounts and deferred loan costs.
(b)
Interest expense on uncertain tax liabilities is excluded from interest expense as the company records these amounts within income tax expense.
(c)
One-third of net rent expense is the portion of rental expense deemed representative of the interest factor.
(d)
2017 includes a pre-tax gain of $3,947 million from the deconsolidation of the majority of our Technology Solutions businesses.