McKesson Corporation reported unaudited consolidated earnings results for the third quarter and nine months ended December 31, 2011. The company reported that revenues for the third quarter ended December 31, 2011 were up 9% to $30.8 billion compared to $28.2 billion a year ago. Net income for the period was $300 million compared to net income of $155 million for the comparable period of last year. On the basis of U.S. generally accepted accounting principles ("GAAP"), third-quarter earnings per diluted share was $1.20 compared to $0.60 a year ago. Third-quarter GAAP results included a pre-tax charge of $27 million ($15 million after-tax or six cents per diluted share), recorded in the Distribution Solutions segment, to increase an existing litigation reserve for claims against McKesson relating to First DataBank's published drug reimbursement benchmarks, commonly referred to as Average Wholesale Prices ("AWP"). Last year's third-quarter GAAP results also included a pre-tax AWP litigation charge of $189 million ($133 million after-tax or 52 cents per diluted share). Third-quarter Adjusted Earnings per diluted share was $1.40 compared to $1.28 a year ago. Operating income was $492 million versus $307 million of prior year period. Income from continuing operations was $300 million or $1.20 diluted earnings per share from continuing operations against Income from continuing operations of $155 million or $0.60 diluted earnings per share from continuing operations for the same period last year. For the nine months, net income was $882 million or $3.51 diluted earnings per share on revenues of $91,035 million compared to net income of $780 million or $2.96 diluted earnings per share on revenues of $83,231 million for the corresponding period of last year. Operating income was $1,442 million versus $1,198 million of prior year period. Income from continuing operations was $882 million or $3.51 diluted earnings per share from continuing operations against $708 million or $2.69 diluted earnings per share from continuing operations for the same period last year. Net cash provided by operating activities was $1,716 million against $1,338 million of previous year period. Property acquisitions were $170 million versus $157 million of prior year period. Capitalized spending was $307 million for the first 9 months of the fiscal year. Based on year-to-date progress the company continues to expect adjusted earnings between $6.19 and $6.39 per diluted share for the fiscal year ending March 31, 2012 which excludes the following GAAP items: Amortization of acquisition-related intangible assets of approximately 48 cents per diluted share in Fiscal 2012; Acquisition-related expenses of approximately seven cents per diluted share in Fiscal 2012 and Litigation reserve adjustments of 37 cents per diluted share. For the full fiscal year, excluding the product alignment charge, the company now expects to be more towards the midpoint of long-term adjusted operating margin goal range of 14% to 16%, For the full year, the company continue to expect to generate in excess of $2 billion in cash flow from operations. Capitalized spending is expected at $450 million to $500 million for the full year.