McKesson (MCK) 10-K 2009 FY Annual report

Exhibit 12

McKESSON CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

	Years Ended March 31,
(Dollars in millions)	2009			2008			2007			2006			2005
Earnings:
Income (Loss) from continuing operations before income taxes	$	1,064		$	1,457		$	1,297		$	1,171		$	(266	)
Adjustment to exclude equity in net income of and dividends from equity investees		(1	)		(17	)		(17	)		(15	)		(4	)
Fixed charges		195			198			141			133			159
Amortization of capitalized interest		4			4			3			2			1
Less: Capitalized interest		(1	)		(3	)		(3	)		(4	)		(6	)
Earnings as adjusted	$	1,261		$	1,639		$	1,421		$	1,287		$	(116	)
Fixed charges:
Interest expense(a) (c)	$	144		$	142		$	99		$	94		$	118
Capitalized interest		1			3			3			4			6
Portion of rental expense representative of the interest factor(b)		50			53			39			35			35
Total fixed charges	$	195		$	198		$	141		$	133		$	159
Ratio:
Ratio of earnings to fixed charges		6.5			8.3			10.1			9.7			(d	)

(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 uncertain tax positions as a result of the implementation of FIN 48 is excluded from Interest expense in the computation of Fixed charges.
(d)	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.