McKesson 2011 Annual Report Download - page 82

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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
76
7. 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. Potentially dilutive
securities primarily include outstanding stock options, RSUs and PeRSUs.
The computations for basic and diluted earnings per common share from continuing and discontinued
operations are as follows:
Years Ended March 31,
(In millions, except per share amounts)
2011
2010
2009
Income from continuing operations
$
1,130
$
1,263
$
823
Discontinued operation - gain on sale, net of tax
72
—
—
Net income
$
1,202
$
1,263
$
823
Weighted average common shares outstanding:
Basic
258
269
275
Effect of dilutive securities:
Options to purchase common stock
3
3
3
Restricted stock units
2
1
1
Diluted
263
273
279
Earnings per common share:
(1)
Basic
Continuing operations
$
4.37
$
4.70
$
2.99
Discontinued operation, net
0.28
—
—
Total
$
4.65
$
4.70
$
2.99
Diluted
Continuing operations
$
4.29
$
4.62
$
2.95
Discontinued operation, net
0.28
—
—
Total
$
4.57
$
4.62
$
2.95
(1) Certain computations may reflect rounding adjustments.
Approximately 6 million, 8 million and 5 million of potentially dilutive securities were excluded from the
computations of diluted net earnings per common share in 2011, 2010 and 2009, as they were anti-dilutive.
8. Receivables, Net
March 31,
(In millions)
2011
2010
Customer accounts
$
7,982
$
7,256
Other
1,341
968
Total
9,323
8,224
Allowances
(136)
(149)
Net
$
9,187
$
8,075
The allowances are primarily for estimated uncollectible accounts and sales returns to vendors.