EXHIBIT 11
PG&E CORPORATION
COMPUTATION OF EARNINGS PER COMMON SHARE
Three Months Ended | |||||
March 31, | |||||
(in millions, except share amounts) | 2006 | 2005 | |||
Net income | $ | 214 | $ | 218 | |
Less: distributed earnings to common shareholders | 114 | 111 | |||
Undistributed earnings | 100 | 107 | |||
Common shareholders earnings | |||||
Basic | |||||
Distributed earnings to common shareholders | $ | 114 | $ | 111 | |
Undistributed earnings allocated to common shareholders | 95 | 102 | |||
Total common shareholders earnings, basic | $ | 209 | $ | 213 | |
Diluted | |||||
Distributed earnings to common shareholders | $ | 114 | $ | 111 | |
Undistributed earnings allocated to common shareholders | 95 | 102 | |||
Total common shareholders earnings, diluted | $ | 209 | $ | 213 | |
Weighted average common shares outstanding, basic | 344 | 388 | |||
9.50% Convertible Subordinated Notes | 19 | 19 | |||
Weighted average common shares outstanding and participating securities, basic | 363 | 407 | |||
Weighted average common shares outstanding, basic | 344 | 388 | |||
Employee share-based compensation and accelerated share repurchase program(1) | 5 | 4 | |||
Weighted average common shares outstanding, diluted | 349 | 392 | |||
9.50% Convertible Subordinated Notes | 19 | 19 | |||
Weighted average common shares outstanding and participating securities, diluted | 368 | 411 | |||
Net earnings per common share, basic | |||||
Distributed earnings, basic | $ | 0.33 | $ | 0.29 | |
Undistributed earnings, basic | 0.28 | 0.26 | |||
Total | $ | 0.61 | $ | 0.55 | |
Net earnings per common share, diluted | |||||
Distributed earnings, diluted | $ | 0.33 | $ | 0.28 | |
Undistributed earnings, diluted | 0.27 | 0.26 | |||
Total | $ | 0.60 | $ | 0.54 | |
(1) Includes approximately 1.3 million PG&E Corporation common shares potentially issuable in settlement of an approximately $49.6 million obligation under an ASR at March 31, 2006 and approximately 1.5 million shares in relation to the settlement of the share forward agreement of the ASR on March 28, 2006. The remaining approximately 3 million shares at March 31, 2006 are deemed to be outstanding per SFAS No. 128 for the purpose of calculating EPS. |