EXHIBIT 12
McKESSON CORPORATION
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
Years Ended March 31, | ||||||||||||||||||||
(In millions) | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
Earnings: | ||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 1,297 | $ | 1,171 | $ | (266 | ) | $ | 869 | $ | 812 | |||||||||
Adjustments: | ||||||||||||||||||||
Equity in net income of and dividends from equity investees | (17 | ) | (15 | ) | (4 | ) | (1 | ) | (6 | ) | ||||||||||
Fixed charges | 141 | 133 | 159 | 158 | 165 | |||||||||||||||
Interest capitalized | (3 | ) | (4 | ) | (6 | ) | (4 | ) | (3 | ) | ||||||||||
Earnings as adjusted | $ | 1,418 | $ | 1,285 | $ | (117 | ) | $ | 1,022 | $ | 968 | |||||||||
Fixed charges: | ||||||||||||||||||||
Interest expense (a) | $ | 99 | $ | 94 | $ | 118 | $ | 120 | $ | 128 | ||||||||||
Portion of rental expense representative of the interest factor | 39 | 35 | 35 | 34 | 34 | |||||||||||||||
Capitalized interest | 3 | 4 | 6 | 4 | 3 | |||||||||||||||
Total fixed charges | $ | 141 | $ | 133 | $ | 159 | $ | 158 | $ | 165 | ||||||||||
Ratio: | ||||||||||||||||||||
Ratio of earnings to fixed charges | 10.1 | 9.7 | (b) | 6.5 | 5.9 | |||||||||||||||
(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 the ratio of earnings to fixed charges. |