EXHIBIT 11
PG&E CORPORATION
COMPUTATION OF EARNINGS PER COMMON SHARE
Year Ended December 31, | ||||||||||||
(in millions, except per share amounts) | 2007 | 2006 | 2005 | |||||||||
Net Income | $ | 1,006 | $ | 991 | $ | 917 | ||||||
Less: distributed earnings to common shareholders | 508 | 460 | 449 | |||||||||
Undistributed earnings | 498 | 531 | 468 | |||||||||
Less: undistributed earnings from discontinued operations | - | - | 13 | |||||||||
Undistributed earnings from continuing operations | $ | 498 | $ | 531 | $ | 455 | ||||||
Common shareholder earnings | ||||||||||||
Basic | ||||||||||||
Distributed earnings to common shareholders | $ | 508 | $ | 460 | $ | 449 | ||||||
Undistributed earnings allocated to common shareholders - continuing operations | 472 | 503 | 433 | |||||||||
Undistributed earnings allocated to common shareholders - discontinued operations | - | - | 12 | |||||||||
Total common shareholders earnings, basic | $ | 980 | $ | 963 | $ | 894 | ||||||
Diluted | ||||||||||||
Distributed earnings to common shareholders | $ | 508 | $ | 460 | $ | 449 | ||||||
Undistributed earnings allocated to common shareholders - continuing operations | 473 | 504 | 433 | |||||||||
Undistributed earnings allocated to common shareholders - discontinued operations | - | - | 12 | |||||||||
Total common shareholders earnings, diluted | $ | 981 | $ | 964 | $ | 894 | ||||||
Weighted average common shares outstanding, basic | 351 | 346 | 372 | |||||||||
9.50% Convertible Subordinated Notes | 19 | 19 | 19 | |||||||||
Weighted average common shares outstanding and participating securities, basic | 370 | 365 | 391 | |||||||||
Weighted average common shares outstanding, basic | 351 | 346 | 372 | |||||||||
Employee stock-based compensation and accelerated share repurchases (1) | 2 | 3 | 6 | |||||||||
Weighted average common shares outstanding, diluted | 353 | 349 | 378 | |||||||||
9.50% Convertible Subordinated Notes | 19 | 19 | 19 | |||||||||
Weighted average common shares outstanding and participating securities, diluted | 372 | 368 | 397 | |||||||||
Net earnings per common share, basic | ||||||||||||
Distributed earnings, basic (2) | $ | 1.45 | $ | 1.33 | $ | 1.21 | ||||||
Undistributed earnings - continuing operations, basic | 1.34 | 1.45 | 1.16 | |||||||||
Undistributed earnings - discontinued operations, basic | - | - | 0.03 | |||||||||
Total | $ | 2.79 | $ | 2.78 | $ | 2.40 | ||||||
Net earnings per common share, diluted | ||||||||||||
Distributed earnings, diluted | $ | 1.44 | $ | 1.32 | $ | 1.19 | ||||||
Undistributed earnings - continuing operations, diluted | 1.34 | 1.44 | 1.15 | |||||||||
Undistributed earnings - discontinued operations, diluted | - | - | 0.03 | |||||||||
Total | $ | 2.78 | $ | 2.76 | $ | 2.37 | ||||||
(1) Includes approximately one million and two million shares of PG&E Corporation common stock treated as outstanding in connection with accelerated share repurchase agreements (-ASRs-) for 2006 and 2005, respectively. The remaining shares of approximately two million at December 31, 2006 and four million at December 31, 2005 relate to share-based compensation and are deemed to be outstanding under SFAS No. 128 for the purpose of calculating EPS. PG&E Corporation has no remaining obligation under these ASRs as of December 31, 2007. | ||||||||||||
(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. |