Earnings Per Common Share

3 Months Ended

Jun. 30, 2023

Earnings Per Common ShareBasic earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. The computation of diluted earnings per common share is similar to that of basic earnings 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 restricted stock units. Less than 1.0 million of potentially dilutive securities for the three months ended June 30, 2023 and 2022 were excluded from the computation of diluted earnings per common share as they were anti-dilutive.

The computations for basic and diluted earnings per common share were as follows:


	Three Months Ended June 30,
(In millions, except per share amounts)	2023		2022
Income from continuing operations	$	997	$	807
Net income attributable to noncontrolling interests	(39)		(41)
Income from continuing operations attributable to McKesson Corporation	958		766
Income from discontinued operations, net of tax	—		2
Net income attributable to McKesson Corporation	$	958	$	768

Weighted-average common shares outstanding:
Basic	135.5		144.2
Effect of dilutive securities:
Stock options	0.2		0.3
Restricted stock units (1)	0.9		1.4
Diluted	136.6		145.9

Earnings per common share attributable to McKesson Corporation: (2)
Diluted
Continuing operations	$	7.02	$	5.25
Discontinued operations	—		0.01
Total	$	7.02	$	5.26
Basic
Continuing operations	$	7.07	$	5.31
Discontinued operations	—		0.01
Total	$	7.07	$	5.32

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

(2)Certain computations may reflect rounding adjustments.