EXHIBIT 11
PG&E CORPORATION
COMPUTATION OF EARNINGS PER COMMON SHARE
Three Months Ended | ||||||||
March 31, | ||||||||
(in millions, except share amounts) | 2007 | 2006 | ||||||
Net income | $ | 256 | $ | 214 | ||||
| Less: distributed earnings to common shareholders | 126 | 114 | ||||||
| Undistributed earnings | $ | 130 | $ | 100 | ||||
Common shareholders earnings | ||||||||
Basic | ||||||||
| Distributed earnings to common shareholders | $ | 126 | $ | 114 | ||||
| Undistributed earnings allocated to common shareholders | 123 | 95 | ||||||
Total common shareholders earnings, basic | $ | 249 | $ | 209 | ||||
Diluted | ||||||||
| Distributed earnings to common shareholders | $ | 126 | $ | 114 | ||||
| Undistributed earnings allocated to common shareholders | 123 | 95 | ||||||
Total common shareholders earnings, diluted | $ | 249 | $ | 209 | ||||
Weighted average common shares outstanding, basic | 349 | 344 | ||||||
| 9.50% Convertible Subordinated Notes | 19 | 19 | ||||||
| Weighted average common shares outstanding and participating securities, basic | 368 | 363 | ||||||
| Weighted average common shares outstanding, basic | 349 | 344 | ||||||
Employee share-based compensation and accelerated share repurchase program(1) | 2 | 5 | ||||||
Weighted average common shares outstanding, diluted | 351 | 349 | ||||||
| 9.50% Convertible Subordinated Notes | 19 | 19 | ||||||
| Weighted average common shares outstanding and participating securities, diluted | 370 | 368 | ||||||
Net earnings per common share, basic | ||||||||
Distributed earnings, basic(2) | $ | 0.36 | $ | 0.33 | ||||
| Undistributed earnings, basic | 0.35 | 0.28 | ||||||
Total | $ | 0.71 | $ | 0.61 | ||||
Net earnings per common share, diluted | ||||||||
| Distributed earnings, diluted | $ | 0.36 | $ | 0.33 | ||||
| Undistributed earnings, diluted | 0.35 | 0.27 | ||||||
Total | $ | 0.71 | $ | 0.60 | ||||
(1) Includes approximately 2.8 million shares of PG&E Corporation common stock treated as outstanding in connection with accelerated share repurchases for the three months ended March 31, 2006. The remaining shares of 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. See Note 10 of the 2006 Annual Report. | ||||||||
(2)“Distributed earnings, basic” may differ from actual per share amounts paid as dividends, as the EPS computation under GAAP requires the use of the weighted average, rather than the actual number of shares outstanding. | ||||||||