EXHIBIT 11
McKESSON CORPORATION - CONSOLIDATED
COMPUTATION OF EARNINGS PER COMMON SHARE
FOR THE FIVE YEARS ENDED MARCH 31
(in thousands except per share amounts)
1997 1996 1995 1994 1993
-------- -------- ---------- --------- ---------
FULLY DILUTED EARNINGS PER SHARE
Income (loss) after taxes from continuing operations $ 5,149 $120,695 $(150,068) $ 69,229 $ 66,771
Dividends requirements - convertible preferred
securities of subsidiary trust 665 - - - -
Interest charges on convertible debentures - net of tax - - - 18 1,352
Contribution adjustment - Series B ESOP convertible
preferred stock/(1)/ - - (1,836) (3,706) (3,758)
-------- -------- --------- -------- --------
5,814 120,695 (151,904) 65,541 64,365
Discontinued operations 8,583 14,738 (23,074) 55,161 47,964
Discontinued operations -
Gain on sale/donation of Armor All stock 120,178 - 996 32,666 -
Gain on sale of PCS - - 576,656 - -
Extraordinary item - - - (4,186) -
Cumulative effects of accounting changes - - - (16,660) -
-------- -------- --------- -------- --------
Total $134,575 $135,433 $ 402,674 $132,522 $112,329
======== ======== ========= ======== ========
Fully diluted shares
Common shares outstanding/(2)/ 44,827 46,740 43,568 40,943 40,025
Convertible securities - dilutive 283 - 1,882 3,160 4,783
-------- -------- --------- -------- --------
Total 45,110 46,740 45,450 44,103 44,808
======== ======== ========= ======== ========
Fully diluted earnings per share
Continuing operations $ 0.13 $ 2.59 $ (3.34) $ 1.49 $ 1.44
Discontinued operations 0.19 0.31 (0.51) 1.25 1.07
Discontinued operations -
Gain on sale/donation of Armor All stock 2.66 - 0.02 0.74 -
Gain on sale of PCS - - 12.69 - -
Extraordinary item - - - (0.10) -
Cumulative effects of accounting changes - - - (0.38) -
-------- -------- --------- -------- --------
Total $ 2.98 $ 2.90 $ 8.86 $ 3.00 $ 2.51
======== ======== ========= ======== ========
PRIMARY EARNINGS PER SHARE
Income (loss) after taxes from continuing operations $ 5,149 $120,695 $(150,068) $ 69,229 $ 66,771
Dividend requirements - convertible preferred stock - - (3,501) (7,052) (7,010)
-------- -------- --------- -------- --------
5,149 120,695 (153,569) 62,177 59,761
Discontinued operations 8,583 14,738 (23,074) 55,161 47,964
Discontinued operations -
Gain on sale/donation of Armor All stock 120,178 - 996 32,666 -
Gain on sale of PCS - - 576,656 - -
Extraordinary item - - - (4,186) -
Cumulative effects of accounting changes - - - (16,660) -
-------- -------- --------- -------- --------
Total $133,910 $135,433 $ 401,009 $129,158 $107,725
======== ======== ========= ======== ========
Common shares outstanding 44,544 46,646 43,568 40,789 40,025
======== ======== ========= ======== ========
Primary earnings per share
Continuing operations $ 0.12 $ 2.59 $ (3.52) $ 1.53 $ 1.49
Discontinued operations 0.19 0.31 (0.53) 1.35 1.20
Discontinued operations -
Gain on sale/donation of Armor All stock 2.70 - 0.02 0.80 -
Gain on sale of PCS - - 13.23 - -
Extraordinary item - - - (0.10) -
Cumulative effects of accounting changes - - - (0.41) -
-------- -------- --------- -------- --------
Total $ 3.01 $ 2.90 $ 9.20 $ 3.17 $ 2.69
======== ======== ========= ======== ========
(1) 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.
(2) Common shares outstanding have been computed by adding the monthly average
(beginning of the month 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.
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