EX-11 11 ex11.htm PG&E CORPORATION COMPUTATION OF EARNINGS PER COMMON SHARE PG&E Corporation Computation of Earnings Per Common Share
EXHIBIT 11

PG&E CORPORATION
COMPUTATION OF EARNINGS PER COMMON SHARE

   
Year Ended December 31,
  
   
2006
  
2005
  
2004
  
(in millions, except per share amounts) 
                    
Net Income 
  
$
991
  
$
917
  
$
4,504
  
Less: distributed earnings to common shareholders
    
460
    
449
    
-
  
Undistributed earnings
    
531
    
468
    
4,504
  
Less: undistributed earnings from discontinued operations
    
-
    
13
    
684
  
Undistributed earnings from continuing operations
  
$
531
  
$
455
  
$
3,820
  
                     
Common shareholder earnings
                    
Basic 
                  
Distributed earnings to common shareholders
  
$
460
  
$
449
  
$
-
  
Undistributed earnings allocated to common shareholders - continuing operations
    
503
    
433
    
3,646
  
Undistributed earnings allocated to common shareholders - discontinued operations
    
-
    
12
    
653
  
Total common shareholders earnings, basic 
  
$
963
  
$
894
  
$
4,299
  
Diluted
                    
Distributed earnings to common shareholders 
  
$
460
  
$
449
  
$
-
  
Undistributed earnings allocated to common shareholders - continuing operations
    
504
    
433
    
3,650
  
Undistributed earnings allocated to common shareholders - discontinued operations 
    
-
    
12
    
653
  
Total common shareholders earnings, diluted
  
$
964
  
$
894
  
$
4,303
  
                     
Weighted average common shares outstanding, basic 
    
346
    
372
    
398
  
9.50% Convertible Subordinated Notes 
    
19
    
19
    
19
  
Weighted average common shares outstanding and participating securities, basic 
    
365
    
391
    
417
  
                     
Weighted average common shares outstanding, basic
    
346
    
372
    
398
  
Employee stock-based compensation and accelerated share repurchases (1) 
    
3
    
6
    
7
  
PG&E Corporation warrants 
    
-
    
-
    
2
  
Weighted average common shares outstanding, diluted
    
349
    
378
    
407
  
9.50% Convertible Subordinated Notes
    
19
    
19
    
19
  
Weighted average common shares outstanding and participating securities, diluted
    
368
    
397
    
426
  
                     
Net earnings per common share, basic 
                    
Distributed earnings, basic (2) 
  
$
1.33
  
$
1.21
  
$
-
  
Undistributed earnings - continuing operations, basic 
    
1.45
    
1.16
    
9.16
  
Undistributed earnings - discontinued operations, basic
    
-
    
0.03
    
1.64
  
Total 
  
$
2.78
  
$
2.40
  
$
10.80
  
                     
Net earnings per common share, diluted 
                
Distributed earnings, diluted 
  
$
1.32
  
$
1.19
  
$
-
  
Undistributed earnings - continuing operations, diluted 
    
1.44
    
1.15
    
8.97
  
Undistributed earnings - discontinued operations, diluted 
    
-
    
0.03
    
1.60
  
Total 
  
$
2.76
  
$
2.37
  
$
10.57
  
 
(1) Includes approximately 1 million, 2 million and 222,000 shares, respectively, of PG&E Corporation common stock treated as outstanding in connection with accelerated share repurchases for the year ended December 31, 2006, December 31, 2005 and December 31, 2004, respectively. The remaining shares of approximately 2 million at December 31, 2006, 4 million at December 31, 2005 and 6.8 million at December 31, 2004, relate to share-based compensation and are deemed to be outstanding per SFAS No. 128 for the purpose of calculating EPS.
(2)“Distributed earnings, basic” differs from actual per share amounts paid as dividends as the EPS computation under GAAP requires the use of the weighted average, rather than the actual number of shares outstanding.