EXHIBIT 11
PG&E CORPORATION
COMPUTATION OF EARNINGS PER COMMON SHARE
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
(in millions, except share amounts) | 2005 | 2004 | 2005 | 2004 | ||||||||
Net income | $ | 267 | $ | 372 | $ | 485 | $ | 3,405 | ||||
Less: distributed earnings to common shareholders | 112 | - | 223 | - | ||||||||
Undistributed earnings | 155 | 372 | 262 | 3,405 | ||||||||
Common shareholders earnings | ||||||||||||
Basic | ||||||||||||
Distributed earnings to common shareholders | $ | 112 | $ | - | $ | 223 | $ | - | ||||
Undistributed earnings allocated to common shareholders | 147 | 355 | 249 | 3,249 | ||||||||
Total common shareholders earnings, basic | $ | 259 | $ | 355 | $ | 472 | $ | 3,249 | ||||
Diluted | ||||||||||||
Distributed earnings to common shareholders | $ | 112 | $ | - | $ | 223 | $ | - | ||||
Undistributed earnings allocated to common shareholders | 148 | 356 | 250 | 3,252 | ||||||||
Total common shareholders earnings, diluted | $ | 260 | $ | 356 | $ | 473 | $ | 3,252 | ||||
Weighted average common shares outstanding, basic | 370 | 397 | 379 | 395 | ||||||||
9.50% Convertible Subordinated Notes | 19 | 19 | 19 | 19 | ||||||||
Weighted average common shares outstanding and participating securities, basic | 389 | 416 | 398 | 414 | ||||||||
Weighted average common shares outstanding, basic | 370 | 397 | 379 | 395 | ||||||||
Employee stock compensation, restricted stock, accelerated share repurchase agreement and PG&E Corporation shares held by grantor trusts | 5 | 7 | 5 | 7 | ||||||||
PG&E Corporation warrants | - | 2 | - | 3 | ||||||||
Rounding | (1) | - | (1) | - | ||||||||
Weighted average common shares outstanding, diluted(1) | 374 | 406 | 383 | 405 | ||||||||
9.50% Convertible Subordinated Notes | 19 | 19 | 19 | 19 | ||||||||
Weighted average common shares outstanding and participating securities, diluted | 393 | 425 | 402 | 424 | ||||||||
Net earnings per common share, basic | ||||||||||||
Distributed earnings, basic | $ | 0.30 | $ | - | $ | 0.59 | $ | - | ||||
Undistributed earnings, basic | 0.40 | 0.89 | 0.66 | 8.22 | ||||||||
Total | $ | 0.70 | $ | 0.89 | $ | 1.25 | $ | 8.22 | ||||
Net earnings per common share, diluted | ||||||||||||
Distributed earnings, diluted | $ | 0.30 | $ | - | $ | 0.58 | $ | - | ||||
Undistributed earnings, diluted | 0.40 | 0.88 | 0.65 | 8.03 | ||||||||
Total | $ | 0.70 | $ | 0.88 | $ | 1.23 | $ | 8.03 | ||||
(1) | Options to purchase 6,500 PG&E Corporation common shares were outstanding during the three and six months ended June 30, 2005 and, 8,235,055 and 7,874,615 for the three and six months ended June 30, 2004, respectively, but not included in the computation of diluted earnings per common share because the option exercise prices were greater than the average market price. |