Exhibit (11) McKESSON CORPORATION COMPUTATION OF EARNINGS (LOSS) PER COMMON SHARE (unaudited) (in millions except per share amounts) Three Months Ended June 30 ------------------- 1997 1996 ------ ------ FULLY DILUTED EARNINGS (LOSS) PER SHARE Income (loss) after taxes from continuing operations $ 37.6 $(21.4) Dividends on preferred securities of subsidiary trust 1.6 - Income from discontinued operations - 3.3 ----- ----- Total $ 39.2 $(18.1) ===== ===== Fully diluted shares Common shares outstanding(1) 47.7 43.8 Convertible preferred securities - dilutive 2.7 - ----- ----- Total 50.4 43.8 ===== ===== Fully diluted earnings (loss) per share Continuing operations $ 0.78 $(0.49) Discontinued operations - 0.08 ----- ----- Total $ 0.78 $(0.41) ===== ===== PRIMARY EARNINGS (LOSS) PER SHARE Income (loss) after taxes Continuing operations $ 37.6 $(21.4) Discontinued operations - 3.3 ----- ----- Total $ 37.6 $(18.1) ===== ===== Primary shares Common shares outstanding(1) 47.6 43.8 ===== ===== Primary earnings (loss) per share Continuing operations $ 0.79 $(0.49) Discontinued operations - 0.08 ----- ----- Total $ 0.79 $(0.41) ===== ===== (1) 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 and, in the calculation for the three months ended June 30, 1997, adjusting this total for dilutive stock options using the treasury stock method. The calculations for the three months ended June 30, 1996, exclude stock options which were anti-dilutive due to the net loss incurred for the period.