EX-12 2 f29988exv12.htm EXHIBIT 12 exv12
 

EXHIBIT 12
McKESSON CORPORATION
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
                                         
    Years Ended March 31,  
(In millions)   2007     2006     2005     2004     2003  
 
Earnings:
                                        
Income (loss) from continuing operations before income taxes
   $ 1,297     $ 1,171     $ (266 )   $ 869     $ 812  
 
                                        
Adjustments:
                                        
Equity in net income of and dividends from equity investees
     (17 )     (15 )     (4 )     (1 )     (6 )
Fixed charges
     141       133       159       158       165  
Interest capitalized
     (3 )     (4 )     (6 )     (4 )     (3 )
 
                              
 
                                        
Earnings as adjusted
   $ 1,418     $ 1,285     $ (117 )   $ 1,022     $ 968  
 
                              
 
                                        
Fixed charges:
                                        
Interest expense (a)
   $ 99     $ 94     $ 118     $ 120     $ 128  
Portion of rental expense representative of the interest factor
     39       35       35       34       34  
Capitalized interest
     3       4       6       4       3  
 
                              
 
                                        
Total fixed charges
   $ 141     $ 133     $ 159     $ 158     $ 165  
 
                              
 
                                        
Ratio:
                                        
Ratio of earnings to fixed charges
     10.1       9.7       (b)       6.5       5.9  
 
                              
 
(a)   Interest expense includes amortization of debt discounts and deferred loan costs.
 
(b)   Earnings for the year ended March 31, 2005 were inadequate to cover fixed charges. The coverage deficiency was $276 million for the ratio of earnings to fixed charges.