EXHIBIT 11
PG&E CORPORATION
COMPUTATION OF EARNINGS PER COMMON SHARE
Three months ended | Nine months ended | |||||||||||||
(in millions, except per share amounts) | September 30, | September 30, | ||||||||||||
2003 | 2002(1) | 2003 | 2002(1) | |||||||||||
Income from continuing operations | $ | 508 | $ | 479 | $ | 754 | $ | 1,532 | ||||||
Discontinued operations | 2 | (13) | (365) | (156) | ||||||||||
Net income before cumulative effect of changes | ||||||||||||||
in accounting principles | 510 | 466 | 389 | 1,376 | ||||||||||
Cumulative effect of changes in accounting principles | - | - | (6) | (61) | ||||||||||
Net Income | 510 |
| 466 | 383 | 1,315 | |||||||||
Interest expense on 9.5% Convertible Subordinated Notes | 4 |
| 3 | 12 | 4 | |||||||||
Net Income for Diluted Calculations | $ | 514 | $ | 469 | $ | 395 | $ | 1,319 | ||||||
Weighted average common shares outstanding, basic(2) | 387 | 373 | 384 | 368 | ||||||||||
Add: | Employee stock options and PG&E Corporation | |||||||||||||
shares held by grantor trusts | 5 | - | 2 | 2 | ||||||||||
PG&E Corporation Warrants | 5 | 3 | 5 | 1 | ||||||||||
9.5% Convertible Subordinated Notes | 19 | 19 | 19 | 7 | ||||||||||
Shares outstanding for diluted calculations | 416 | 395 | 410 | 378 | ||||||||||
Earnings Per Common Share, Basic | ||||||||||||||
Income from continuing operations | $ | 1.31 | $ | 1.28 | $ | 1.96 | $ | 4.16 | ||||||
Discontinued operations | 0.01 | (0.03) | (0.95) | (0.42) | ||||||||||
Cumulative effect of changes in accounting principles | - | - | (0.01) | (0.17) | ||||||||||
Net earnings | $ | 1.32 | $ | 1.25 | $ | 1.00 | $ | 3.57 | ||||||
Earnings Per Common Share, Diluted | ||||||||||||||
Income from continuing operations | $ | 1.24 | $ | 1.22 | $ | 1.86 | $ | 4.06 | ||||||
Discontinued operations | - | (0.03) | (0.89) | (0.41) | ||||||||||
Cumulative effect of changes in accounting principles | - | - | (0.01) | (0.16) | ||||||||||
Net earnings | $ | 1.24 | $ | 1.19 | $ | 0.96 | $ | 3.49 | ||||||
(1) Prior period amounts of NEGT, Inc. have been reclassified to discontinued operations.
(2) Weighted average common shares outstanding exclude shares held by a subsidiary of PG&E Corporation (23,815,500 shares at September 30, 2003 and 2002) and PG&E Corporation shares held by grantor trusts to secure deferred compensation obligations (281,985 shares at September 30, 2003 and 2002).