EX-12 4 mck_exhbit12x3312014.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES MCK_Exhbit 12_3.31.2014

Exhibit 12
McKESSON CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
 
Years Ended March 31,
(Dollars in millions)
2014
 
2013
 
2012
 
2011
 
2010
 
 
 
 
 
 
 
 
 
 
Earnings:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations before income taxes
$
2,096

 
$
1,928

 
$
1,893

 
$
1,579

 
$
1,806

 
 
 
 
 
 
 
 
 
 
Adjustment to exclude equity in net income of and
dividends from equity investees
2

 
(1
)
 
(2
)
 
9

 
(2
)
 
 
 
 
 
 
 
 
 
 
Fixed charges
401

 
317

 
328

 
277

 
236

 
 
 
 
 
 
 
 
 
 
Amortization of capitalized interest
2

 
2

 
3

 
3

 
4

 
 
 
 
 
 
 
 
 
 
Less: Capitalized interest
—

 
(1
)
 
(1
)
 
(3
)
 
(1
)
 
 
 
 
 
 
 
 
 
 
Earnings as adjusted (a)
$
2,501

 
$
2,245

 
$
2,221

 
$
1,865

 
$
2,043

 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Expense (b) (c)
$
302

 
$
239

 
$
251

 
$
222

 
$
186

 
 
 
 
 
 
 
 
 
 
Capitalized interest
—

 
1

 
1

 
3

 
1

 
 
 
 
 
 
 
 
 
 
Portion of rental expense representative of the interest
factor (d)
99

 
77

 
76

 
52

 
49

 
 
 
 
 
 
 
 
 
 
Total fixed charges (a)
$
401

 
$
317

 
$
328

 
$
277

 
$
236

 
 
 
 
 
 
 
 
 
 
Ratio:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges (a)
6.2

 
7.1

 
6.8

 
6.7

 
8.7


(a)
Fiscal years 2010 through 2013 have been recast to exclude discontinued operations.
(b)
Interest expense includes amortization of debt discounts and deferred loan costs.
(c)
Interest accrued on the liability recorded for uncertain tax positions is excluded from Interest expense.
(d)
One-third of net rent expense is the portion of rental expense deemed representative of the interest factor.