EXHIBIT 11
PG&E CORPORATION
COMPUTATION OF EARNINGS PER COMMON SHARE
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(in millions, except per share amounts) | 2004 | 2003(1) | 2004 | 2003(1) | |||||||||||||
Income from continuing operations | $ | 228 | $ | 508 | $ | 3,633 | $ | 754 | |||||||||
Discontinued operations | - | 2 | - | (365) | |||||||||||||
Net income (loss) before cumulative effect of changes in | 228 | 510 | 3,633 | (389) | |||||||||||||
Cumulative effect of changes in accounting principles | - | - | - | (6) | |||||||||||||
Net Income (Loss) for basic and diluted calculations | $ | 228 | $ | 510 | $ | 3,633 | $ | (383) | |||||||||
Weighted average common shares outstanding, basic (2) | 399 | 387 | 397 | 384 | |||||||||||||
9.50% Convertible Subordinated Notes | 19 | 19 | 19 | 19 | |||||||||||||
Weighted average common shares outstanding and participating securities, basic | 418 | 406 | 416 | 403 | |||||||||||||
Weighted average common shares outstanding, basic | 399 | 387 | 397 | 384 | |||||||||||||
Employee stock options and PG&E Corporation shares | 7 | 5 | 6 | 2 | |||||||||||||
PG&E Corporation Warrants | 2 | 5 | 3 | 5 | |||||||||||||
Weighted average common shares outstanding, diluted | 408 | 397 | 406 | 391 | |||||||||||||
9.50% Convertible Subordinated Notes | 19 | 19 | 19 | 19 | |||||||||||||
Weighted average common shares outstanding and | 427 | 416 | 425 | 410 | |||||||||||||
Earnings (Loss) Per Common Share, Basic | |||||||||||||||||
Income from continuing operations | $ | 0.55 | $ | 1.25 | $ | 8.73 | $ | 1.87 | |||||||||
Discontinued operations | - | - | - | (0.91) | |||||||||||||
Cumulative effect of changes in accounting principles | - | - | - | (0.01) | |||||||||||||
Rounding | - | 0.01 | - | - | |||||||||||||
Net earnings (loss) | $ | 0.55 | $ | 1.26 | $ | 8.73 | $ | 0.95 | |||||||||
Earnings (Loss) Per Common Share, Diluted | |||||||||||||||||
Income from continuing operations | $ | 0.53 | $ | 1.22 | $ | 8.55 | $ | 1.84 | |||||||||
Discontinued operations | - | - | - | (0.89) | |||||||||||||
Cumulative effect of changes in accounting principles | - | - | - | (0.01) | |||||||||||||
Rounding | - | 0.01 | - | (0.01) | |||||||||||||
Net earnings (loss) | $ | 0.53 | $ | 1.23 | $ | 8.55 | $ | (0.93) | |||||||||
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 9.50% Convertible Notes in the allocation of earnings. The 9.50% Convertible Notes are convertible at the option of the holders 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 | Nine months ended | |||||||||||
September 30, | September 30, | |||||||||||
Earnings (loss) allocated to common share holders, basic | 2004 | 2003(1) | 2004 | 2003(1) | ||||||||
Income from continuing operations | $ | 218 | $ | 484 | $ | 3,467 | $ | 718 | ||||
Discontinued operations | - | 2 | - | (348) | ||||||||
Cumulative effect of changes in accounting principles | - | - | - | (6) | ||||||||
$ | 218 | $ | 486 | $ | 3,467 | $ | 364 | |||||
Earnings (loss) allocated to common shareholders, diluted | ||||||||||||
Income from continuing operations | $ | 218 | $ | 485 | $ | 3,471 | $ | 719 | ||||
Discontinued operations | - | 2 | - | (348) | ||||||||
Cumulative effect of changes in accounting principles | - | - | - | (6) | ||||||||
$ | 218 | $ | 487 | $ | 3,471 | $ | 365 | |||||
(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, 2004 and 2003) and PG&E Corporation shares held by grantor trusts to secure deferred compensation obligations (281,985 shares at September 30, 2004 and 2003). | |||||||||||