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) | 2006 | 2005 | 2006 | 2005 | |||||||||
Net income | $ | 232 | $ | 267 | $ | 446 | $ | 485 | |||||
Less: distributed earnings to common shareholders | 115 | 112 | 229 | 223 | |||||||||
Undistributed earnings | $ | 117 | $ | 155 | $ | 217 | $ | 262 | |||||
Common shareholders earnings | |||||||||||||
Basic | |||||||||||||
Distributed earnings to common shareholders | $ | 115 | $ | 112 | $ | 229 | $ | 223 | |||||
Undistributed earnings allocated to common shareholders | 111 | 147 | 206 | 249 | |||||||||
Total common shareholders earnings, basic | $ | 226 | $ | 259 | $ | 435 | $ | 472 | |||||
Diluted | |||||||||||||
Distributed earnings to common shareholders | $ | 115 | $ | 112 | $ | 229 | $ | 223 | |||||
Undistributed earnings allocated to common shareholders | 111 | 148 | 206 | 250 | |||||||||
Total common shareholders earnings, diluted | $ | 226 | $ | 260 | $ | 435 | $ | 473 | |||||
Weighted average common shares outstanding, basic | 346 | 370 | 345 | 379 | |||||||||
9.50% Convertible Subordinated Notes | 19 | 19 | 19 | 19 | |||||||||
Weighted average common shares outstanding and participating securities, basic | 365 | 389 | 364 | 398 | |||||||||
Weighted average common shares outstanding, basic | 346 | 370 | 345 | 379 | |||||||||
Employee share-based compensation and accelerated share repurchase program (1) | 3 | 4 | 4 | 4 | |||||||||
Weighted average common shares outstanding, diluted (2) | 349 | 374 | 349 | 383 | |||||||||
9.50% Convertible Subordinated Notes | 19 | 19 | 19 | 19 | |||||||||
Weighted average common shares outstanding and participating securities, diluted | 368 | 393 | 368 | 402 | |||||||||
Net earnings per common share, basic | |||||||||||||
Distributed earnings, basic | $ | 0.33 | $ | 0.30 | $ | 0.66 | $ | 0.59 | |||||
Undistributed earnings, basic | 0.32 | 0.40 | 0.60 | 0.66 | |||||||||
Total | $ | 0.65 | $ | 0.70 | $ | 1.26 | $ | 1.25 | |||||
Net earnings per common share, diluted | |||||||||||||
Distributed earnings, diluted | $ | 0.33 | $ | 0.30 | $ | 0.66 | $ | 0.58 | |||||
Undistributed earnings, diluted | 0.32 | 0.40 | 0.59 | 0.65 | |||||||||
Total | $ | 0.65 | $ | 0.70 | $ | 1.25 | $ | 1.23 | |||||
(1) Includes approximately 1 million and 2 million shares treated as outstanding in connection with the accelerated share repurchase program for the three and six months ended June 30, 2006 respectively. The remaining approximately 2 million shares relate to share-based compensation and are deemed to be outstanding per SFAS No. 128 for the purpose of calculating EPS for the three and six months ended June 30, 2006. | |||||||||||||
(2) Options to purchase PG&E Corporation common shares of 6,500 for the three months ended June 30, 2005 and 4,650 and 6,500 for the six months ended June 30, 2006 and June 30, 2005, respectively, were outstanding, but not included in the computation of diluted EPS because the option exercise prices were greater than the average market price. All options to purchase PG&E Corporation common shares for the three months ended June 30, 2006 have option exercise prices lower than the average market price and are included in the computation of diluted EPS. |