Exhibit 11
McKESSON CORPORATION
COMPUTATION OF EARNINGS PER COMMON SHARE
(unaudited)
(in millions except per share amounts)
Three Months Ended Nine Months Ended
December 31 December 31
--------------- ---------------
1995 1994 1995 1994
---- ---- ---- ----
FULLY DILUTED EARNINGS PER SHARE
Income after taxes from
continuing operations $32.9 $(276.3) $97.4 $(232.8)
Contribution adjustment -
Series B ESOP convertible
preferred stock(1) - - - (1.8)
---- ----- ---- -----
32.9 (276.3) 97.4 (234.6)
Discontinued operations - 3.0 - 21.0
Discontinued operations -
gain on sale of PCS - 576.7 - 576.7
---- ----- ---- -----
Total $32.9 $303.4 $97.4 $363.1
==== ===== ==== =====
Fully diluted shares
Common shares outstanding(2) 46.6 44.2 46.8 42.6
Convertible securities - dilutive - 1.4 - 2.5
---- ---- ---- ----
Total 46.6 45.6 46.8 45.1
==== ==== ==== ====
Fully diluted earnings (loss) per share
Continuing operations $0.70 $(6.06) $2.08 $(5.20)
Discontinued operations - 0.07 - 0.47
Discontinued operations -
gain on sale of PCS - 12.64 - 12.78
---- ----- ---- -----
Total $0.70 $ 6.65 $2.08 $ 8.05
==== ===== ==== =====
PRIMARY EARNINGS PER SHARE
Income after taxes from
continuing operations $32.9 $(276.3) $97.4 $(232.8)
Dividend requirements -
preferred stocks(1) - - - (3.5)
---- ----- ---- -----
32.9 (276.3) 97.4 (236.3)
Discontinued operations - 3.0 - 21.0
Discontinued operations -
gain on sale of PCS - 576.7 - 576.7
---- ----- ---- -----
Total $32.9 $303.4 $97.4 $361.4
==== ===== ==== =====
Primary shares
Common shares outstanding(2) 46.6 44.2 46.7 42.6
==== ==== ==== ====
Primary earnings (loss) per share
Continuing operations $0.70 $(6.24) $2.08 $(5.55)
Discontinued operations - 0.07 - 0.50
Discontinued operations -
gain on sale of PCS - 13.03 - 13.54
---- ----- ---- -----
Total $0.70 $ 6.86 $2.08 $ 8.49
==== ===== ==== =====
(1) Net of certain tax benefits.
(2) Common shares outstanding have been computed by adding the
monthly averages (beginning of the month plus end of the month
divided by 2), dividing the aggregate by 3 or 9, as
appropriate, and adjusting this total for dilutive stock
options using the treasury stock method based on the greater
of the common share price at the end of the period or the
average common share price during the period (fully diluted)
and on the average common share price during the period
(primary).