Attached files
| file | filename |
|---|---|
| EX-21 - LIST OF SUBSIDIARIES OF THE REGISTRANT - MCKESSON CORP | mck_exhibit21x3312018.htm |
| EX-31.2 - CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 302 - MCKESSON CORP | mck_exhibit312x3312018.htm |
| EX-24 - POWER OF ATTORNEY - MCKESSON CORP | mck_exhibit24x3312018.htm |
| EX-32 - CERTIFICATION PURSUANT TO 18 U.S.C.SECTION 1350 - MCKESSON CORP | mck_exhibit32x3312018.htm |
| EX-31.1 - CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 302 - MCKESSON CORP | mck_exhibit311x3312018.htm |
| 10-K - 10-K - MCKESSON CORP | mck_10kx3312018.htm |
| EX-23 - CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM - MCKESSON CORP | mck_exhbit23x3312018.htm |
Exhibit 12
McKESSON CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Years Ended March 31, | |||||||||||||||||||
(Dollars in millions) | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||
Earnings: | |||||||||||||||||||
Income from continuing operations before income taxes (a) | $ | 239 | $ | 6,891 | $ | 3,250 | $ | 2,657 | $ | 2,171 | |||||||||
Adjustment for equity in net income of and dividends from equity investees | 239 | 1 | (1 | ) | (1 | ) | 2 | ||||||||||||
Fixed charges - below | 475 | 468 | 498 | 520 | 400 | ||||||||||||||
Amortization of capitalized interest | 1 | 1 | 1 | 1 | 2 | ||||||||||||||
Less: Capitalized interest | (3 | ) | (2 | ) | (1 | ) | — | — | |||||||||||
Earnings as adjusted | $ | 951 | $ | 7,359 | $ | 3,747 | $ | 3,177 | $ | 2,575 | |||||||||
Fixed charges: | |||||||||||||||||||
Interest expense (b) (c) | $ | 283 | $ | 308 | $ | 353 | $ | 374 | $ | 300 | |||||||||
Capitalized interest | 3 | 2 | 1 | — | — | ||||||||||||||
Portion of rental expense representative of the interest factor (d) | 189 | 158 | 144 | 146 | 100 | ||||||||||||||
Total fixed charges | $ | 475 | $ | 468 | $ | 498 | $ | 520 | $ | 400 | |||||||||
Ratio: | |||||||||||||||||||
Ratio of earnings to fixed charges | 2.0 | 15.7 | 7.5 | 6.1 | 6.4 | ||||||||||||||
(a) | 2018 includes non-cash goodwill impairment charges (pre-tax and after-tax) of $1,283 million for our McKesson Europe reporting unit and $455 million for our Rexall Health reporting unit within our Distributions Solutions segment. 2018 also includes pre-tax restructuring and asset impairment charges of $567 million primarily within our Distribution Solutions segment. 2017 includes a pre-tax gain of $3,947 million from the contribution of the majority of our Technology Solutions businesses and a non-cash pre-tax goodwill impairment charge of $290 million for our EIS reporting unit within our Technology Solutions segment. |
(b) | 2018 excludes a pre-tax loss on debt extinguishment of $122 million. 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. |