EX-12 5 f20234exv12.htm EXHIBIT 12 exv12
 

EXHIBIT 12
McKESSON CORPORATION
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
                                         
    Years Ended March 31,  
(In millions)   2006     2005     2004     2003     2002  
 
Earnings:
                                        
Income (Loss) from continuing operations before income taxes
   $ 1,158     $ (245 )   $ 906     $ 848     $ 598  
 
                                        
Adjustments:
                                        
Equity in net income of and dividends from equity investees
     (17 )     (5 )     (1 )     (6 )     2  
Fixed charges
     136       161       160       167       165  
Interest Capitalized
     (4 )     (6 )     (4 )     (3 )     (2 )
 
                              
 
                                        
Earnings as adjusted
   $ 1,273     $ (95 )   $ 1,061     $ 1,006     $ 763  
 
                              
 
                                        
Fixed charges:
                                        
Interest expense (a)
   $ 94     $ 118     $ 120     $ 128.0     $ 126  
Portion of rental expense representative of the interest factor
     38       37       36       36       37  
Capitalized interest
     4       6       4       3       2  
 
                              
 
                                        
Total fixed charges
   $ 136     $ 161     $ 160     $ 167     $ 165  
 
                              
 
                                        
Ratio:
                                        
Ratio of earnings to fixed charges
     9.4 X     (b)       6.6 X     6.0 X     4.6 X
 
                              
 
(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 $256 million for ratio of earnings to fixed charges.