Exhibit 12.1
McKESSON CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
For the Nine Months Ended | For the Years Ended March 31, | |||||||||||||||||||||||
(Dollars in millions) | December 31, 2011 | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 1,262 | $ | 1,635 | $ | 1,864 | $ | 1,064 | $ | 1,457 | $ | 1,297 | ||||||||||||
Adjustment to exclude equity in net income of and dividends from equity investees | 1 | 9 | (2 | ) | (1 | ) | (17 | ) | (17 | ) | ||||||||||||||
Fixed charges | 255 | 280 | 240 | 195 | 198 | 141 | ||||||||||||||||||
Amortization of capitalized interest | 3 | 3 | 4 | 4 | 4 | 3 | ||||||||||||||||||
Less: Capitalized interest | (1 | ) | (3 | ) | — | (1 | ) | (3 | ) | (3 | ) | |||||||||||||
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Earnings as adjusted | $ | 1,520 | $ | 1,924 | $ | 2,106 | $ | 1,261 | $ | 1,639 | $ | 1,421 | ||||||||||||
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Fixed charges: | ||||||||||||||||||||||||
Interest expense (a) (b) | $ | 192 | $ | 222 | $ | 187 | $ | 144 | $ | 142 | $ | 99 | ||||||||||||
Capitalized interest | 1 | 3 | — | 1 | 3 | 3 | ||||||||||||||||||
Portion of rental expense representative of the interest | 62 | 55 | 53 | 50 | 53 | 39 | ||||||||||||||||||
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Total fixed charges | $ | 255 | $ | 280 | $ | 240 | $ | 195 | $ | 198 | $ | 141 | ||||||||||||
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Ratio: | ||||||||||||||||||||||||
Ratio of earnings to fixed charges | 6.0 | 6.9 | 8.8 | 6.5 | 8.3 | 10.1 | ||||||||||||||||||
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(a) | Interest expense includes amortization of debt discounts and deferred loan costs. |
(b) | Interest accrued on the liability recorded for uncertain tax positions is excluded from Interest expense. |
(c) | One-third of net rent expense is the portion of rental expense deemed representative of the interest factor. |