EX-12 5 mck_exhibit12x33116.htm EXHIBIT 12
Exhibit 12
McKESSON CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

| Years Ended March 31,
(Dollars in millions) | 2016 |  | 2015 |  | 2014 |  | 2013 |  | 2012
Earnings: |  |  |  |  |  |  |  |  |
Income from continuing operations before income taxes | $ | 3,250 |  |  | $ | 2,657 |  |  | $ | 2,171 |  |  | $ | 1,950 |  |  | $ | 1,915 |
Adjustment for equity in net income of and dividends from equity investees | (1 | ) |  | (1 | ) |  | 2 |  |  | (1 | ) |  | (2 | )
Fixed charges - below | 498 |  |  | 520 |  |  | 400 |  |  | 316 |  |  | 329 |
Amortization of capitalized interest | 1 |  |  | 1 |  |  | 2 |  |  | 2 |  |  | 3 |
Less: Capitalized interest | (1 | ) |  | — |  |  | — |  |  | (1 | ) |  | (1 | )
Earnings as adjusted (a) | $ | 3,747 |  |  | $ | 3,177 |  |  | $ | 2,575 |  |  | $ | 2,266 |  |  | $ | 2,244 |
Fixed charges: |  |  |  |  |  |  |  |  |
Interest expense (b) (c) | $ | 353 |  |  | $ | 374 |  |  | $ | 300 |  |  | $ | 240 |  |  | $ | 250 |
Capitalized interest | 1 |  |  | — |  |  | — |  |  | 1 |  |  | 1 |
Portion of rental expense representative of the interest factor (d) | 144 |  |  | 146 |  |  | 100 |  |  | 75 |  |  | 78 |
Total fixed charges | $ | 498 |  |  | $ | 520 |  |  | $ | 400 |  |  | $ | 316 |  |  | $ | 329 |
Ratio: |  |  |  |  |  |  |  |  |
Ratio of earnings to fixed charges | 7.5 |  |  | 6.1 |  |  | 6.4 |  |  | 7.2 |  |  | 6.8 |

(a) | Fiscal years 2011 through 2014 have been recast primarily 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.