Exhibit 12
McKESSON CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Years Ended March 31, | ||||||||||||||||||||
(Dollars in millions) | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||
Earnings: | ||||||||||||||||||||
Income from continuing operations before income taxes | $ | 1,919 | $ | 1,635 | $ | 1,864 | $ | 1,064 | $ | 1,457 | ||||||||||
Adjustment to exclude equity in net income of and dividends from equity investees | (2 | ) | 9 | (2 | ) | (1 | ) | (17 | ) | |||||||||||
Fixed charges | 332 | 280 | 240 | 195 | 198 | |||||||||||||||
Amortization of capitalized interest | 3 | 3 | 4 | 4 | 4 | |||||||||||||||
Less: Capitalized interest | (1 | ) | (3 | ) | — | (1 | ) | (3 | ) | |||||||||||
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Earnings as adjusted | $ | 2,251 | $ | 1,924 | $ | 2,106 | $ | 1,261 | $ | 1,639 | ||||||||||
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Fixed charges: | ||||||||||||||||||||
Interest expense(a)(c) | $ | 251 | $ | 222 | $ | 187 | $ | 144 | $ | 142 | ||||||||||
Capitalized interest | 1 | 3 | — | 1 | 3 | |||||||||||||||
Portion of rental expense representative of the interest factor(b) | 80 | 55 | 53 | 50 | 53 | |||||||||||||||
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Total fixed charges | $ | 332 | $ | 280 | $ | 240 | $ | 195 | $ | 198 | ||||||||||
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Ratio: | ||||||||||||||||||||
Ratio of earnings to fixed charges | 6.8 | 6.9 | 8.8 | 6.5 | 8.3 | |||||||||||||||
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(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. |