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

EXHIBIT 11
PG&E CORPORATION
COMPUTATION OF EARNINGS PER COMMON SHARE

   
Three Months Ended
    
Six Months Ended
  
(in millions, except per share amounts)
  
June 30,
    
June 30,
  
   
2007
    
2006
    
2007
    
2006
  
                         
Net income
   $
269
     $
232
     $
525
     $
446
  
Less: distributed earnings to common shareholders
    
127
      
115
      
253
      
229
  
Undistributed earnings
   $
142
     $
117
     $
272
     $
217
  
                                 
Common shareholders earnings
                                
Basic
                                
Distributed earnings to common shareholders
   $
127
     $
115
     $
253
     $
229
  
Undistributed earnings allocated to common shareholders
    
135
      
111
      
258
      
206
  
Total common shareholders earnings, basic
   $
262
     $
226
     $
511
     $
435
  
Diluted
                                
Distributed earnings to common shareholders
   $
127
     $
115
     $
253
     $
229
  
Undistributed earnings allocated to common shareholders
    
135
      
111
      
258
      
206
  
Total common shareholders earnings, diluted
   $
262
     $
226
     $
511
     $
435
  
                                 
Weighted average common shares outstanding, basic
    
350
      
346
      
350
      
345
  
9.50% Convertible Subordinated Notes
    
19
      
19
      
19
      
19
  
Weighted average common shares outstanding and participating securities, basic
    
369
      
365
      
369
      
364
  
                                 
Weighted average common shares outstanding, basic
    
350
      
346
      
350
      
345
  
Employee share-based compensation and accelerated share repurchase program (1)
    
2
      
3
      
2
      
4
  
Weighted average common shares outstanding, diluted
    
352
      
349
      
352
      
349
  
9.50% Convertible Subordinated Notes
    
19
      
19
      
19
      
19
  
Weighted average common shares outstanding and participating securities, diluted
    
371
      
368
      
371
      
368
  
                                 
Net earnings per common share, basic
                                
Distributed earnings, basic (2)
   $
0.36
     $
0.33
     $
0.72
     $
0.66
  
Undistributed earnings, basic
    
0.39
      
0.32
      
0.74
      
0.60
  
Total
   $
0.75
     $
0.65
     $
1.46
     $
1.26
  
                                 
Net earnings per common share, diluted
                                
Distributed earnings, diluted
   $
0.36
     $
0.33
     $
0.72
     $
0.66
  
Undistributed earnings, diluted
    
0.38
      
0.32
      
0.73
      
0.59
  
Total
   $
0.74
     $
0.65
     $
1.45
     $
1.25
  
   
   
(1) Includes approximately 1 and 2 million shares of PG&E Corporation common stock treated as outstanding in connection with accelerated share repurchases for the three and six months ended June 30, 2006, respectively. The remaining shares relate to share-based compensation and are deemed to be outstanding per SFAS No. 128 for the purpose of calculating EPS.
  
(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.