Earnings (Loss) Per Common Share

9 Months Ended

Dec. 31, 2021

Earnings (Loss) Per Common ShareBasic earnings (loss) per common share are computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. The computation of diluted earnings (loss) per common share is similar to that of basic earnings (loss) per common share, except that the former reflects the potential dilution that could occur if dilutive securities or other obligations to issue common stock were exercised or converted into common stock. Potentially dilutive securities include outstanding stock options, restricted stock units, and performance-based and other restricted stock units. Diluted loss per common share for the three months ended December 31, 2021 and the three and nine months ended December 31, 2020 was calculated by excluding potentially dilutive securities from the denominator of the share computation due to their anti-dilutive effects. Less than 1 million of potentially dilutive securities for the nine months ended December 31, 2021 were excluded from the computation of diluted earnings per common share as they were anti-dilutive.

The computations for basic and diluted earnings or loss per common share are as follows:


	Three Months Ended December 31,				Nine Months Ended December 31,
(In millions, except per share amounts)	2021		2020		2021		2020
Income (loss) from continuing operations	$	39	$	(6,174)	$	885	$	(5,052)
Net income attributable to noncontrolling interests	(46)		(52)		(136)		(152)
Income (loss) from continuing operations attributable to McKesson Corporation	(7)		(6,226)		749		(5,204)
Loss from discontinued operations, net of tax	—		—		(3)		(1)
Net income (loss) attributable to McKesson Corporation	$	(7)	$	(6,226)	$	746	$	(5,205)

Weighted-average common shares outstanding:
Basic	151.6		159.5		154.0		161.2
Effect of dilutive securities:
Stock options	—		—		0.2		—
Restricted stock units (1)	—		—		1.6		—
Diluted	151.6		159.5		155.8		161.2

Earnings (loss) per common share attributable to McKesson: (2)
Diluted
Continuing operations	$	(0.04)	$	(39.03)	$	4.81	$	(32.28)
Discontinued operations	—		—		(0.02)		(0.01)
Total	$	(0.04)	$	(39.03)	$	4.79	$	(32.29)
Basic
Continuing operations	$	(0.04)	$	(39.03)	$	4.87	$	(32.28)
Discontinued operations	—		—		(0.02)		(0.01)
Total	$	(0.04)	$	(39.03)	$	4.85	$	(32.29)

(1)Includes dilutive effect from restricted stock units, performance-based restricted stock units, and performance-based stock units.

(2)Certain computations may reflect rounding adjustments.