Earnings (Loss) Per Common Share

3 Months Ended

Jun. 30, 2021

Basic earnings (loss) per common share are computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. The computation of diluted earnings (loss) per common share is similar to that of basic earnings (loss) per common share, except that the former reflects the potential dilution that could occur if dilutive securities or other obligations to issue common stock were exercised or converted into common stock.

Potentially dilutive securities include outstanding stock options, restricted stock units, and performance-based and other restricted stock units. Approximately 1 million and 3 million of potentially dilutive securities for the three months ended June 30, 2021 and 2020 were excluded from the computation of diluted net earnings per common share as they were anti-dilutive.

The computations for basic and diluted earnings or loss per common share are as follows:


	Three Months Ended June 30,
(In millions, except per share amounts)		2021		2020
Income from continuing operations		$	536	$	495
Net income attributable to noncontrolling interests		(47)		(50)
Income from continuing operations attributable to McKesson Corporation		489		445
Loss from discontinued operations, net of tax		(3)		(1)
Net income attributable to McKesson Corporation		$	486	$	444

Weighted-average common shares outstanding:
Basic		156.2		162.0
Effect of dilutive securities:
Stock options		0.1		—
Restricted stock units (1)		1.8		1.2
Diluted		158.1		163.2

Earnings (loss) per common share attributable to McKesson: (2)
Diluted
Continuing operations		$	3.09	$	2.72
Discontinued operations		(0.02)		—
Total		$	3.07	$	2.72
Basic
Continuing operations		$	3.13	$	2.74
Discontinued operations		(0.02)		—
Total		$	3.11	$	2.74

(1)Includes dilutive effect from restricted stock units, performance-based restricted stock units, and performance-based stock units.

(2)Certain computations may reflect rounding adjustments.