EX-11 4 ex11.htm EXHIBIT 11 Exhibit 11
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.