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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
76
8. Earnings Per Common Share
Basic earnings per common share are computed by dividing net income by the weighted average number of
common shares outstanding during the reporting period. Diluted earnings per common share are computed similar
to basic earnings per common 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.
The computations for basic and diluted earnings per common share are as follows:
Years Ended March 31,
(In millions, except per share amounts) 2012 2011 2010
Income from continuing operations $ 1,403 $ 1,130 $ 1,263
Discontinued operation - gain on sale, net of tax — 72 —
N
et income $ 1,403 $ 1,202 $ 1,263
Weighted average common shares outstanding:
Basic 246 258 269
Effect of dilutive securities:
Options to purchase common stock 2 3 3
Restricted stock units 3 2 1
Diluted 251 263 273
Earnings per common share:
(
1
)
Basic
Continuing operations $ 5.70 $ 4.37 $ 4.70
Discontinued operation, net — 0.28 —
Total $ 5.70 $ 4.65 $ 4.70
Diluted
Continuing operations $ 5.59 $ 4.29 $ 4.62
Discontinued operation, net — 0.28 —
Total $ 5.59 $ 4.57 $ 4.62
(1) Certain computations may reflect rounding adjustments.
Potentially dilutive securities primarily include outstanding stock options, RSUs and PeRSUs. Approximately
4 million, 6 million and 8 million of potentially dilutive securities were excluded from the computations of diluted
net earnings per common share in 2012, 2011 and 2010, as they were anti-dilutive.
9. Receivables, Net
March 31,
(In millions) 2012 2011
Customer accounts $ 8,562 $ 7,982
Other 1,537 1,341
Total 10,099 9,323
Allowances (122) (136)
Net $ 9,977 $ 9,187
Other receivables primarily include amounts due from suppliers and customer unbilled receivables. The
allowances are primarily for estimated uncollectible accounts.