EXHIBIT 11
McKESSON CORPORATION - CONSOLIDATED
COMPUTATION OF EARNINGS PER COMMON SHARE
FOR THE FIVE YEARS ENDED MARCH 31
(in thousands except per share amounts)
1996 1995 1994 1993 1992
-------- --------- -------- -------- ---------
FULLY DILUTED EARNINGS PER SHARE
Income (loss) after taxes from continuing operations $120,695 $(150,068) $ 69,229 $ 66,771 $ 15,550
Dividend requirements - convertible preferred stocks -- -- -- -- (7,081)/(1)/
Interest charges on convertible debentures - net of tax -- -- 18 1,352 -- /(2)/
Contribution adjustment - Series B ESOP convertible
preferred stock/(3)/ -- (1,836) (3,706) (3,758) -- /(2)/
-------- --------- -------- -------- ---------
120,695 (151,904) 65,541 64,365 8,469
Discontinued operations 14,738 (23,074) 55,161 47,964 16,783
Discontinued operations
Gain on sale/donation of Armor All stock -- 996 32,666 -- --
Gain on sale of PCS -- 576,656 -- -- --
Extraordinary item -- (4,186) -- --
Cumulative effects of accounting changes -- -- (16,660) -- (110,500)
-------- --------- -------- -------- ---------
Total $135,433 $ 402,674 $132,522 $112,329 $ (85,248)
======== ========= ======== ======== =========
Fully diluted shares
Common shares outstanding/(4)/ 46,740 43,568 40,943 40,025 38,776
Convertible securities - dilutive -- 1,882 3,160 4,783 -- /(2)/
-------- --------- -------- -------- ---------
Total 46,740 45,450 44,103 44,808 38,776
======== ========= ======== ======== =========
Fully diluted earnings (loss) per share
Continuing operations $ 2.59 $ (3.34) $ 1.49 $ 1.44 $ .22
Discontinued operations .31 (.51) 1.25 1.07 .43
Discontinued operations
Gain on sale/donation of Armor All stock -- .02 .74 -- --
Gain on sale of PCS -- 12.69 -- -- --
Extraordinary item -- -- (.10) -- --
Cumulative effects of accounting changes -- -- (.38) -- (2.85)
-------- --------- -------- -------- ---------
$ 2.90 $ 8.86 $ 3.00 $ 2.51 $ (2.20)
======== ========= ======== ======== =========
PRIMARY EARNINGS PER SHARE
Income (loss) after taxes from continuing operations $120,695 $(150,068) $ 69,229 $ 66,771 $ 15,550
Dividend requirements - convertible preferred stocks/(1)/ -- (3,501) (7,052) (7,010) (7,081)
-------- --------- -------- -------- ---------
120,695 (153,569) 62,177 59,761 8,469
Discontinued operations 14,738 (23,074) 55,161 47,964 16,783
Discontinued operations
Gain on sale/donation of Armor All stock -- 996 32,666 -- --
Gain on sale of PCS -- 576,656 -- -- --
Extraordinary item -- -- (4,186) -- --
Cumulative effects of accounting changes -- -- (16,660) -- (110,500)
-------- --------- -------- -------- ---------
Total $135,433 $ 401,009 $129,158 $107,725 $ (85,248)
======== ========= ======== ======== =========
Common shares outstanding/(4)/ 46,646 43,568 40,789 40,025 38,776
======== ========= ======== ======== =========
Primary earnings per share
Continuing operations $ 2.59 $ (3.52) $ 1.53 $ 1.49 $ .22
Discontinued operations .31 (.53) 1.35 1.20 .43
Discontinued operations
Gain on sale/donation of Armor All stock -- .02 .80 -- --
Gain on sale of PCS -- 13.23 -- -- --
Extraordinary item -- -- (.10) -- --
Cumulative effects of accounting changes -- -- (.41) -- (2.85)
-------- --------- -------- -------- ---------
Total $ 2.90 $ 9.20 $ 3.17 $ 2.69 $ (2.20)
======== ========= ======== ======== =========
(1) Net of certain related tax benefits.
(2) 1992 fully diluted earnings per share computation excludes the effect of
convertible securities which were anti-dilutive.
(3) Represents the assumed additional ESOP contribution expense that the Company
would have incurred if the Series B ESOP convertible preferred stock had
been converted at the beginning of the period presented.
(4) Common shares outstanding have been computed by adding the monthly average
(beginning of the monthly plus end of the month divided by 2), dividing the
aggregate by 12 and adjusting this total for dilutive stock options using
the treasury stock method.