EX-12 2 mck_exhbit12x3312015.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Exhibit 12
McKESSON CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

| Years Ended March 31,
(Dollars in millions) | 2015 |  | 2014 |  | 2013 |  | 2012 |  | 2011
Earnings: |  |  |  |  |  |  |  |  |
Income from continuing operations before income taxes | $ | 2,657 |  |  | $ | 2,171 |  |  | $ | 1,950 |  |  | $ | 1,915 |  |  | $ | 1,600 |
Adjustment to exclude equity in net income of and dividends from equity investees | (1 | ) |  | 2 |  |  | (1 | ) |  | (2 | ) |  | 9 |
Fixed charges | 520 |  |  | 400 |  |  | 316 |  |  | 329 |  |  | 275 |
Amortization of capitalized interest | 1 |  |  | 2 |  |  | 2 |  |  | 3 |  |  | 3 |
Less: Capitalized interest | — |  |  | — |  |  | (1 | ) |  | (1 | ) |  | (2 | )
Earnings as adjusted (a) | $ | 3,177 |  |  | $ | 2,575 |  |  | $ | 2,266 |  |  | $ | 2,244 |  |  | $ | 1,885 |
Fixed charges: |  |  |  |  |  |  |  |  |
Interest expense (b) (c) | $ | 374 |  |  | $ | 300 |  |  | $ | 240 |  |  | $ | 250 |  |  | $ | 222 |
Capitalized interest | — |  |  | — |  |  | 1 |  |  | 1 |  |  | 2 |
Portion of rental expense representative of the interest factor (d) | 146 |  |  | 100 |  |  | 75 |  |  | 78 |  |  | 51 |
Total fixed charges (a) | $ | 520 |  |  | $ | 400 |  |  | $ | 316 |  |  | $ | 329 |  |  | $ | 275 |
Ratio: |  |  |  |  |  |  |  |  |
Ratio of earnings to fixed charges (a) | 6.1 |  |  | 6.4 |  |  | 7.2 |  |  | 6.8 |  |  | 6.9 |

(a) | Fiscal years 2011 through 2014 have been recast to exclude our Brazil pharmaceutical distribution business as a discontinued operation and reflect the reclassification of a business from discontinued operations to continuing operations.

(b) | Interest expense includes amortization of debt discounts and deferred loan costs.

(c) | Interest expense on uncertain tax liabilities is excluded from interest expense as the company records these amounts within income tax expense.

(d) | One-third of net rent expense is the portion of rental expense deemed representative of the interest factor.