EX-12.1 3 d322004dex121.htm EX-12.1

EX-12.1

Exhibit 12.1

McKESSON CORPORATION

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

		Nine Months Ended				Years Ended March 31,
(Dollars in millions)		December 31, 2016				2016				2015				2014				2013				2012
Earnings:
Income from continuing operations before income taxes		$	2,217			$	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			344				498				520				400				316				329
Amortization of capitalized interest			1				1				1				2				2				3
Less: Capitalized interest			(1	)			(1	)			—				—				(1	)			(1	)
Earnings as adjusted		$	2,561			$	3,747			$	3,177			$	2,575			$	2,266			$	2,244
Fixed charges:
Interest expense (a) (b)		$	231			$	353			$	374			$	300			$	240			$	250
Capitalized interest			1				1				—				—				1				1
Portion of rental expense representative of the interest factor (c)			112				144				146				100				75				78
Total fixed charges		$	344			$	498			$	520			$	400			$	316			$	329
Ratio:
Ratio of earnings to fixed charges			7.4				7.5				6.1				6.4				7.2				6.8

(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.