EX-12 2 mck_exhibit12x33117.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) | 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013
Earnings: |  |  |  |  |  |  |  |  |
Income from continuing operations before income taxes (d) | $ | 6,891 |  |  | $ | 3,250 |  |  | $ | 2,657 |  |  | $ | 2,171 |  |  | $ | 1,950 |
Adjustment for equity in net income of and dividends from equity investees | 1 |  |  | (1 | ) |  | (1 | ) |  | 2 |  |  | (1 | )
Fixed charges - below | 468 |  |  | 498 |  |  | 520 |  |  | 400 |  |  | 316 |
Amortization of capitalized interest | 1 |  |  | 1 |  |  | 1 |  |  | 2 |  |  | 2 |
Less: Capitalized interest | (2 | ) |  | (1 | ) |  | — |  |  | — |  |  | (1 | )
Earnings as adjusted | $ | 7,359 |  |  | $ | 3,747 |  |  | $ | 3,177 |  |  | $ | 2,575 |  |  | $ | 2,266 |
Fixed charges: |  |  |  |  |  |  |  |  |
Interest expense (a) (b) | $ | 308 |  |  | $ | 353 |  |  | $ | 374 |  |  | $ | 300 |  |  | $ | 240 |
Capitalized interest | 2 |  |  | 1 |  |  | — |  |  | — |  |  | 1 |
Portion of rental expense representative of the interest factor (c) | 158 |  |  | 144 |  |  | 146 |  |  | 100 |  |  | 75 |
Total fixed charges | $ | 468 |  |  | $ | 498 |  |  | $ | 520 |  |  | $ | 400 |  |  | $ | 316 |
Ratio: |  |  |  |  |  |  |  |  |
Ratio of earnings to fixed charges | 15.7 |  |  | 7.5 |  |  | 6.1 |  |  | 6.4 |  |  | 7.2 |

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

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

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

(d) | 2017 includes a pre-tax gain of $3,947 million from the deconsolidation of the majority of our Technology Solutions businesses.