McKesson 2008 Annual Report Download - page 83

Download and view the complete annual report

Please find page 83 of the 2008 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 119

  • 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
  • 116
  • 117
  • 118
  • 119

McKESSON CORPORATION
FINANCIAL NOTES (Continued)
76
The computations for basic and diluted earnings per share from continuing and discontinued operations are as
follows:
Years Ended March 31,
(In millions, except per share amounts) 2008 2007 2006
Income from continuing operations $ 989 $ 968 $ 745
Interest expense on convertible junior subordinated
debentures, net of tax -- 1
Income from continuing operations – diluted 989 968 746
Discontinued operations 1 (5) (7)
Discontinued operations – gain (loss) on sales, net - (50) 13
Net income – diluted $ 990 $ 913 $ 752
Weighted average common shares outstanding:
Basic 291 298 306
Effect of dilutive securities:
Options to purchase common stock 5 6 9
Convertible junior subordinated debentures - - 1
Restricted stock 2 1 -
Diluted 298 305 316
Earnings per common share: (1)
Basic
Continuing operations $ 3.40 $ 3.25 $ 2.44
Discontinued operations - (0.02) (0.02)
Discontinued operations – gain (loss) on sales, net - (0.17) 0.04
Total $ 3.40 $ 3.06 $ 2.46
Diluted
Continuing operations $ 3.32 $ 3.17 $ 2.36
Discontinued operations - (0.02) (0.02)
Discontinued operations – gain (loss) on sales, net - (0.16) 0.04
Total $ 3.32 $ 2.99 $ 2.38
(1) Certain computations may reflect rounding adjustments.
Approximately 8 million, 11 million and 11 million stock options were excluded from the computations of
diluted net earnings per share in 2008, 2007 and 2006 as their exercise price was higher than the Company’ s average
stock price.
7. Receivables, net
March 31,
(In millions) 2008 2007
Customer accounts $ 6,390 $ 5,753
Other 984 953
Total 7,374 6,706
Allowances (161) (140)
Net $ 7,213 $ 6,566
The allowances are primarily for uncollectible accounts and sales returns.