EX-11 15 ex11.htm COMPUTATION OF EARNINGS PER COMMON SHARE Unassociated Document
EXHIBIT 11

PG&E CORPORATION
COMPUTATION OF EARNINGS PER COMMON SHARE

   
Year Ended December 31,
  
               
   
2005
  
2004
  
2003
  
(in millions, except per share amounts)
                    
Net Income 
  
$
917
  
$
4,504
  
$
420
  
Less: distributed earnings to common shareholders
    
449
    
-
    
-
  
Undistributed earnings
    
468
    
4,504
    
420
  
Less: undistributed earnings (loss) from discontinued operations
    
13
    
684
    
(365
)
Undistributed earnings before cumulative effect of changes in accounting principles
    
455
    
3,820
    
785
  
Less: undistributed loss from cumulative effect of changes in accounting principles
    
-
    
-
    
(6
)
Undistributed earnings from continuing operations
  
$
455
  
$
3,820
  
$
791
  
                     
Common shareholder earnings
                    
Basic 
                    
Distributed earnings to common shareholders
  
$
449
  
$
-
  
$
-
  
Undistributed earnings allocated to common shareholders - continuing operations
    
433
    
3,646
    
754
  
Undistributed earnings (loss) allocated to common shareholders - discontinued operations
    
12
    
653
    
(348
)
Undistributed earnings (loss) allocated to common shareholders - cumulative effect in change in accounting principles
    
-
    
-
    
(6
)
Total common shareholders earnings, basic 
  
$
894
  
$
4,299
  
$
400
  
Diluted
                    
Distributed earnings to common shareholders 
  
$
449
  
$
-
  
$
-
  
Undistributed earnings allocated to common shareholders - continuing operations
    
433
    
3,650
    
755
  
Undistributed earnings (loss) allocated to common shareholders - discontinued operations 
    
12
    
653
    
(348
)
Undistributed earnings (loss) allocated to common shareholders - cumulative effect of changes in accounting principles 
    
-
    
-
    
(6
)
Total common shareholders earnings, diluted
  
$
894
  
$
4,303
  
$
401
  
                     
Weighted average common shares outstanding, basic 
    
372
    
398
    
385
  
9.50% Convertible Subordinated Notes 
    
19
    
19
    
9
  
Weighted average common shares outstanding and participating securities, basic 
    
391
    
417
    
404
  
                     
Weighted average common shares outstanding, basic
    
372
    
398
    
385
  
 Employee stock-based compensation and accelerated share repurchase program (1) 
    
6
    
7
    
4
  
 PG&E Corporation Warrants 
    
-
    
2
    
5
  
Weighted average common shares outstanding, diluted
    
378
    
407
    
394
  
9.50% Convertible Subordinated Notes
    
19
    
19
    
19
  
Weighted average common shares outstanding and participating securities, diluted
    
397
    
426
    
413
  
                     
Net earnings per common share, basic 
              
Distributed earnings, basic (2) 
  
$
1.21
  
$
-
  
$
-
  
Undistributed earnings - continuing operations, basic 
    
1.16
    
9.16
    
1.96
  
Undistributed earnings (loss) - discontinued operations, basic
    
0.03
    
1.64
    
(0.90
)
Undistributed earnings (loss) - cumulative effect of changes in accounting principles 
    
-
    
-
    
(0.01
)
Rounding 
    
-
    
-
    
(0.01
)
Total 
  
$
2.40
  
$
10.80
  
$
1.04
  
                     
Net earnings per common share, diluted 
              
Distributed earnings, diluted 
  
$
1.19
  
$
-
  
$
-
  
Undistributed earnings - continuing operations, diluted 
    
1.15
    
8.97
    
1.92
  
Undistributed earnings (loss) - discontinued operations, diluted 
    
0.03
    
1.60
    
(0.88
)
Undistributed earnings (loss) - cumulative effect of changes in accounting principles 
    
-
    
-
    
(0.01
)
Rounding
    
-
    
-
    
(0.01
)
Total 
  
$
2.37
  
$
10.57
  
$
1.02
  
(1)    Includes approximately 2 million shares and 222,000 shares, respectively, of PG&E Corporation common stock potentially issuable in settlement of an obligation of PG&E Corporation of approximately $71million and $7.4 million, respectively, under an accelerated share repurchase agreement at December 31, 2005 and December 31, 2004, respectively. The remaining shares, approximately 4 million at December 31, 2005 and 6.8 million shares at December 31, 2004, are deemed to be outstanding per SFAS No. 128 for the purpose of calculating earnings per share.

(2)   Distributed earnings, basic differs from actual per share amounts paid as dividends as the earnings per share computation under GAAP requires that we use the weighted average, rather than the actual number of shares outstanding.