Earnings (Loss) Per Common Share

6 Months Ended

Sep. 30, 2023

Basic earnings (loss) per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. The computation of diluted earnings 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 restricted stock units. Less than one million of potentially dilutive securities for the three and six months ended September 30, 2023 and 2022 were excluded from the computation of diluted earnings per common share as they were anti-dilutive.

The computations for basic and diluted earnings per common share were as follows:


	Three Months Ended September 30,				Six Months Ended September 30,
(In millions, except per share amounts)	2023		2022		2023		2022
Income from continuing operations	$	703	$	973	$	1,700	$	1,780
Net income attributable to noncontrolling interests	(39)		(41)		(78)		(82)
Income from continuing operations attributable to McKesson Corporation	664		932		1,622		1,698
Loss from discontinued operations, net of tax	—		(6)		—		(4)
Net income attributable to McKesson Corporation	$	664	$	926	$	1,622	$	1,694

Weighted-average common shares outstanding:
Basic	134.1		143.1		134.8		143.7
Effect of dilutive securities:
Stock options	0.2		0.2		0.2		0.3
Restricted stock units (1)	0.5		0.8		0.7		1.0
Diluted	134.8		144.1		135.7		145.0

Earnings (loss) per common share attributable to McKesson Corporation: (2)
Diluted
Continuing operations	$	4.92	$	6.46	$	11.95	$	11.71
Discontinued operations	—		(0.04)		—		(0.03)
Total	$	4.92	$	6.42	$	11.95	$	11.68
Basic
Continuing operations	$	4.95	$	6.51	$	12.03	$	11.81
Discontinued operations	—		(0.04)		—		(0.02)
Total	$	4.95	$	6.47	$	12.03	$	11.79

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

(2)Certain computations may reflect rounding adjustments.