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. |