EXHIBIT 12
McKESSON CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES PREVIOUSLY INCLUDED IN THE ANNUAL REPORT ON FORM 10-K FOR THE FISCAL YEAR ENDED MARCH 31, 2006
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES PREVIOUSLY INCLUDED IN THE ANNUAL REPORT ON FORM 10-K FOR THE FISCAL YEAR ENDED MARCH 31, 2006
Years Ended March 31, | ||||||||||||||||||||
(In millions) | 2006 | 2005 | 2004 | 2003 | 2002 | |||||||||||||||
Earnings: | ||||||||||||||||||||
Income (Loss) from continuing operations before income taxes | $ | 1,171 | $ | (266 | ) | $ | 869 | $ | 812 | $ | 558 | |||||||||
Adjustments: | ||||||||||||||||||||
Equity in net income of and dividends from equity investees | (15 | ) | (4 | ) | (1 | ) | (6 | ) | 2 | |||||||||||
Fixed charges | 133 | 159 | 158 | 165 | 161 | |||||||||||||||
Interest Capitalized | (4 | ) | (6 | ) | (4 | ) | (3 | ) | (2 | ) | ||||||||||
Earnings as adjusted | $ | 1,285 | $ | (117 | ) | $ | 1,022 | $ | 968 | $ | 719 | |||||||||
Fixed charges: | ||||||||||||||||||||
Interest expense (a) | $ | 94 | $ | 118 | $ | 120 | $ | 128 | $ | 126 | ||||||||||
Portion of rental expense representative of the interest factor | 35 | 35 | 34 | 34 | 33 | |||||||||||||||
Capitalized interest | 4 | 6 | 4 | 3 | 2 | |||||||||||||||
Total fixed charges | $ | 133 | $ | 159 | $ | 158 | $ | 165 | $ | 161 | ||||||||||
Ratio: | ||||||||||||||||||||
Ratio of earnings to fixed charges | 9.7 | (b) | 6.5 | 5.9 | 4.5 | |||||||||||||||
(a) | Interest expense includes amortization of debt discounts and deferred loan costs. | |
(b) | Earnings for the year ended March 31, 2005 were inadequate to cover fixed charges. The coverage deficiency was $276 million for ratio of earnings to fixed charges. |