EX-12 7 f54765exv12.htm EX-12 exv12
EXHIBIT 12
McKESSON CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                                         
    Years Ended March 31,  
(Dollars in millions)   2010     2009     2008     2007     2006  
 
Earnings:
                                       
Income from continuing operations before income taxes
  $ 1,864     $ 1,064     $ 1,457     $ 1,297     $ 1,171  
Adjustment to exclude equity in net income of and dividends from equity investees
    (2 )     (1 )     (17 )     (17 )     (15 )
Fixed charges
    240       195       198       141       133  
Amortization of capitalized interest
    4       4       4       3       2  
Less: Capitalized interest
          (1 )     (3 )     (3 )     (4 )
 
                             
 
                                       
Earnings as adjusted
  $ 2,106     $ 1,261     $ 1,639     $ 1,421     $ 1,287  
 
                             
 
                                       
Fixed charges:
                                       
Interest expense (a) (c)
  $ 187     $ 144     $ 142     $ 99     $ 94  
Capitalized interest
          1       3       3       4  
Portion of rental expense representative of the interest factor (b)
    53       50       53       39       35  
 
                             
 
                                       
Total fixed charges
  $ 240     $ 195     $ 198     $ 141     $ 133  
 
                             
 
                                       
Ratio:
                                       
Ratio of earnings to fixed charges
    8.8       6.5       8.3       10.1       9.7  
 
                             
 
(a)   Interest expense includes amortization of debt discounts and deferred loan costs.
 
(b)   One-third of net rent expense is the portion of rental expense deemed representative of the interest factor.
 
(c)   Interest accrued on the liability recorded for uncertain tax positions is excluded from Interest expense.