McKesson 2005 Annual Report Download - page 68

McKESSON CORPORATION
FINANCIAL NOTES (Continued)
The following table summarizes the activity related to the customer settlement reserves for the three years ended March 31, 2005:
6. Gain (Loss) on Investments, Net
Gain (loss) on investments includes gains and losses from the sale or liquidation of investments and other-than-temporary impairment
losses. We recorded other-than-temporary impairment losses of $1.5 million and $8.5 million in 2004 and 2003 on equity investments as a
result of significant declines in the market values of these investments. We used quoted market prices, if available, to determine the fair value
of our investments. For investments that do not trade regularly, we estimated fair value using a variety of pricing techniques including
discounted cash flow analyses and market transactions.
7. Other Income, Net
8. Earnings (Loss) Per Share
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.
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Reversals of
Beginning Settlements Prior Years’ Ending
(In millions) Balance Cash Non-cash Expenses Balance
March 31, 2003 $ 133.4 $ (13.0) $ (11.2) $ (22.3) $ 86.9
March 31, 2004 86.9 (2.1) (12.2) (66.4) 6.2
March 31, 2005 6.2
—
(0.6) (4.0)1.6
Years Ended March 31,
(In millions) 2005 2004 2003
Interest income $41.0 $ 28.5 $24.4
Equity in earnings, net 14.8 7.4 12.2
Gain on sale of notes receivable 1.3 3.1 5.3
Other, net 11.6 10.4 3.2
Total $68.7 $ 49.4 $45.1