Exhibit 11
PG&E Corporation
Computation of Earnings Per Common Share
Three months ended | Six months ended | |||||||||||
June 30, | June 30, | |||||||||||
(in millions, except per share amounts) | 2004 | 2003(1) | 2004 | 2003(1) | ||||||||
Income from continuing operations | $ | 372 | $ | 328 | $ | 3,405 | $ | 245 | ||||
Discontinued operations | - | (101) | - | (366) | ||||||||
Net income (loss) before cumulative effect of changes | 372 | 227 | 3,405 | (121) | ||||||||
Cumulative effect of changes in accounting principles | - | - | - | (6) | ||||||||
Net Income (Loss) for basic and diluted calculations | $ | 372 | $ | 227 | $ | 3,405 | $ | (127) | ||||
Weighted average common shares outstanding, | 397 | 384 | 395 | 383 | ||||||||
9.5% Convertible Subordinated Notes | 19 | 19 | 19 | 19 | ||||||||
Weighted average common shares outstanding and | 416 | 403 | 414 | 402 | ||||||||
Weighted average common shares outstanding basic | 397 | 384 | 395 | 383 | ||||||||
Employee stock options and PG&E Corporation shares | 7 | 2 | 7 | 1 | ||||||||
PG&E Corporation Warrants | 2 | 5 | 3 | 5 | ||||||||
Weighted average common shares outstanding, diluted | 406 | 391 | 405 | 389 | ||||||||
9.5% Convertible Subordinated Notes | 19 | 19 | 19 | 19 | ||||||||
Weighted average common shares outstanding and | 425 | 410 | 424 | 408 | ||||||||
Earnings (Loss) Per Common Share, Basic | ||||||||||||
Income from continuing operations | $ | 0.89 | $ | 0.81 | $ | 8.22 | $ | 0.61 | ||||
Discontinued operations | - | (0.25) | - | (0.91) | ||||||||
Cumulative effect of changes in accounting principles | - | - | - | (0.02) | ||||||||
Net earnings (loss) | $ | 0.89 | $ | 0.56 | $ | 8.22 | $ | (0.32) | ||||
Earnings (Loss) Per Common Share, Diluted | ||||||||||||
Income from continuing operations | $ | 0.88 | $ | 0.80 | $ | 8.03 | $ | 0.60 | ||||
Discontinued operations | - | (0.25) | - | (0.90) | ||||||||
Cumulative effect of changes in accounting principles | - | - | - | (0.01) | ||||||||
Net earnings (loss) | $ | 0.88 | $ | 0.55 | $ | 8.03 | $ | (0.31) | ||||
In applying the "two-class" method the following reflects the earnings (loss) allocated to common shareholders after the inclusion of participation rights related to PG&E Corporation's 9.5% Convertible Notes in the allocation of earnings. The 9.5% Convertible Notes are convertible at the option of PG&E Corporation into 18,558,655 common shares. All PG&E Corporation's participating securities participate on a 1:1 basis with common shareholders. |
Three months ended | Six months ended | ||||||||||
June 30, | June 30, | ||||||||||
Earnings (loss) allocated to common shareholders, | 2004 | 2003(1) | 2004 | 2003(1) | |||||||
Income from continuing operations | $ | 355 | $ | 312 | $ | 3,249 | $ | 233 | |||
Discontinued operations | - | (96) | - | (349) | |||||||
Cumulative effect of changes in accounting principles | - | - | - | (6) | |||||||
$ | 355 | $ | 216 | $ | 3,249 | $ | (122) | ||||
Earnings (loss) allocated to common shareholders, | |||||||||||
Income from continuing operations | $ | 356 | $ | 312 | $ | 3,252 | $ | 234 | |||
Discontinued operations | - | (96) | - | (349) | |||||||
Cumulative effect of changes in accounting principles | - | - | - | (6) | |||||||
$ | 356 | $ | 216 | $ | 3,252 | $ | (121) | ||||
(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 June 30, 2004 and 2003) and PG&E Corporation shares held by grantor trusts to secure deferred compensation obligations (281,985 shares at June 30, 2004 and 2003). |