McKesson 2006 Annual Report Download - page 72

Download and view the complete annual report

Please find page 72 of the 2006 McKesson annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 115

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115

McKESSON CORPORATION
FINANCIAL NOTES (Continued)
Basic earnings per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during
the reporting period. Diluted earnings (loss) per share is computed similar to basic earnings per share except that it reflects the potential
dilution that could occur if dilutive securities or other obligations to issue common stock were exercised or converted into common stock. For
2005, because of our reported net loss, potentially dilutive securities were excluded from the per share computations due to their antidilutive
effect.
The computations for basic and diluted earnings (loss) per share from continuing operations are as follows:
Approximately 11 million and 38 million stock options were excluded from the computations of diluted net earnings per share in 2006 and
2004 as their exercise price was higher than the Company’s average stock price.
67
6. Other Income, Net
Years Ended March 31,
(In millions) 2006 2005 2004
Interest income $104 $41 $28
Equity in earnings, net 20 15 7
Other, ne
t
14 12 13
Total $138 $68 $48
7. Earnin
g
s (Loss) Per Share
Years Ended March 31,
(In millions, except per share amounts) 2006 2005 2004
Income from continuing operations $ 737 $ (160) $ 643
Interest expense on convertible junior subordinated debentures, net of tax 1 — 6
Income from continuing operations — diluted 738 (160)649
Discontinued operation 1 3 4
Discontinued operation — gain on sale, net 13 — —
Net income (loss) — diluted $ 752 $ (157) $ 653
Weighted average common shares outstanding:
Basic 306 294 290
Effect of dilutive securities:
Options to purchase common stoc
k
9 — 4
Convertible junior subordinated debentures 1 — 5
Dilute
d
316 294 299
Earnings per common share: (1)
Basic
Continuing operations $2.42 $(0.54) $2.22
Discontinued operation
—
0.01 0.01
Discontinued operation — gain on sale, net 0.04 — —
Total $2.46 $(0.53) $2.23
Dilute
d
Continuing operations $2.34 $(0.54) $2.18
Discontinued operation
—
0.01 0.01
Discontinued operation — gain on sale, ne
t
0.04 —
—
Total $2.38 $(0.53) $2.19
(1) Certain computations may reflect rounding adjustments.