EX-11 12 f95893aexv11.txt EXHIBIT 11 . . . EXHIBIT 11 PG&E CORPORATION COMPUTATION OF EARNINGS PER COMMON SHARE
YEAR ENDED DECEMBER 31, (in millions, except per share amounts) 2003 2002 (1) 2001 (1) --------- --------- --------- Income from continuing operations $ 791 $ 1,723 $ 1,021 Discontinued operations (365) (2,536) 69 --------- --------- --------- Net income (loss) before cumulative effect of changes in accounting principles 426 (813) 1,090 Cumulative effect of changes in accounting principles (6) (61) 9 --------- --------- --------- NET INCOME (LOSS) 420 (874) 1,099 Add income impact of assumed conversions: Interest expense on 9.5% Convertible Subordinated Notes, net of tax 17 8 - --------- --------- --------- NET INCOME (LOSS) FOR DILUTED CALCULATIONS $ 437 $ (866) $ 1,099 ========= ========= ========= WEIGHTED AVERAGE COMMON SHARES OUTSTANDING, BASIC (2) 385 371 363 Add incremental shares from assumed conversions: Employee Stock Options, Restricted Stocks and PG&E Corporation shares held by grantor trusts 4 2 1 PG&E Corporation Warrants 5 2 - 9.5% Convertible Subordinated Notes 19 9 - --------- --------- --------- SHARES OUTSTANDING FOR DILUTED CALCULATIONS 413 384 364 ========= ========= ========= EARNINGS (LOSS) PER COMMON SHARE, BASIC Income from continuing operations $ 2.05 $ 4.64 $ 2.81 Discontinued operations (0.94) (6.84) 0.19 Cumulative effect of changes in accounting principles (0.02) (0.16) 0.02 Rounding - - 0.01 --------- --------- --------- NET EARNINGS (LOSS) $ 1.09 $ (2.36) $ 3.03 ========= ========= ========= EARNINGS (LOSS) PER COMMON SHARE, DILUTED Income from continuing operations $ 1.96 $ 4.50 $ 2.80 Discontinued operations (0.88) (6.60) 0.19 Cumulative effect of changes in accounting principles (0.02) (0.16) 0.02 Rounding - - 0.01 --------- --------- --------- NET EARNINGS (LOSS) $ 1.06 $ (2.26) $ 3.02 ========= ========= ========= PG&E Corporation reflects the preferred dividends of its subsidiary as other expense for computation of both basic and diluted earnings per share. (1) Prior period amounts of NEGT have been reclassified as discontinued operations. (2) Weighted average common shares outstanding exclude shares held by a subsidiary of PG&E Corporation (23,815,500 shares at December 31, 2003, 2002 and 2001) and PG&E Corporation shares held by grantor trusts to secure deferred compensation obligations (281,985 shares at December 31, 2003, 2002 and 2001).