EX-11 4 q306exhibit11.htm EXHIBIT 11 EXHIBIT 11
EXHIBIT 11
PG&E CORPORATION
COMPUTATION OF EARNINGS PER COMMON SHARE

   
Three Months Ended
  
Nine Months Ended
  
(in millions, except share amounts)
 
September 30,
  
September 30,
  
   
2006
  
2005
  
2006
  
2005
  
                   
Net income
 
$
393
  
$
252
  
$
839
  
$
737
  
Less: distributed earnings to common shareholders
   
115
   
111
   
344
   
334
 
Undistributed earnings
    
278
   
141
   
495
   
403
 
Less: undistributed earnings from discontinued operations
    
-
   
13
   
-
   
13
 
Undistributed earnings from continuing operations
  
$
278
  
$
128
  
$
495
  
$
390
  
                           
Common shareholders earnings
                          
Basic
                          
Distributed earnings to common shareholders
  
$
115
  
$
111
  
$
344
  
$
334
  
Undistributed earnings allocated to common shareholders - continuing operations
    
264
   
122
   
469
   
371
 
Undistributed earnings allocated to common shareholders - discontinued operations
    
-
   
12
   
-
   
12
 
Total common shareholders earnings, basic
  
$
379
  
$
245
  
$
813
  
$
717
  
Diluted
                          
Distributed earnings to common shareholders
  
$
115
  
$
111
  
$
344
  
$
334
  
Undistributed earnings allocated to common shareholders - continuing operations
    
264
   
122
   
469
   
371
 
Undistributed earnings allocated to common shareholders - discontinued operations
    
-
   
12
   
-
   
12
 
Total common shareholders earnings, diluted
  
$
379
  
$
245
  
$
813
  
$
717
  
                           
Weighted average common shares outstanding, basic
    
347
   
372
   
345
   
376
 
9.50% Convertible Subordinated Notes
    
19
   
19
   
19
   
19
 
Weighted average common shares outstanding and participating securities, basic
    
366
   
391
   
364
   
395
 
                           
Weighted average common shares outstanding, basic
    
347
   
372
   
345
   
376
 
Employee share-based compensation and accelerated share repurchase program (1)
    
2
   
4
   
4
   
4
 
Weighted average common shares outstanding, diluted(2)
    
349
   
376
   
349
   
380
 
9.50% Convertible Subordinated Notes
    
19
   
19
   
19
   
19
 
Weighted average common shares outstanding and participating securities, diluted
    
368
   
395
   
368
   
399
 
                           
Net earnings per common share, basic
                          
Distributed earnings, basic
  
$
0.33
  
$
0.30
  
$
1.00
  
$
0.89
  
Undistributed earnings - continuing operations, basic
    
0.76
   
0.33
   
1.36
   
0.99
 
Undistributed earnings - discontinued operations, basic
    
-
   
0.03
   
-
   
0.03
 
Total
  
$
1.09
  
$
0.66
  
$
2.36
  
$
1.91
  
                           
Net earnings per common share, diluted
                          
Distributed earnings, diluted
  
$
0.33
  
$
0.30
  
$
0.99
  
$
0.88
  
Undistributed earnings - continuing operations, basic
    
0.76
   
0.32
   
1.34
   
0.98
 
Undistributed earnings - discontinued operations, basic
    
-
   
0.03
   
-
   
0.03
 
Total
  
$
1.09
  
$
0.65
  
$
2.33
  
$
1.89
  
     
 
(1) Includes approximately one million shares treated as outstanding in connection with the November 2005 ASR for the nine months ended September 30, 2006.  The remaining approximately three million shares relate to share-based compensation and are deemed to be outstanding in accordance with SFAS No. 128 for the purpose of calculating EPS for the nine months ended September 30, 2006.
 
(2) Options to purchase 23,000 shares of PG&E Corporation common stock were excluded from the computation of diluted EPS for the three and nine months ended September 30, 2005 because the exercise prices of these options were greater than the average market price of PG&E Corporation common stock over these periods. All options to purchase shares of PG&E Corporation common stock were included in the computation of diluted EPS for the three and nine months ended September 30, 2006 because the option exercise prices of these options were lower than the average market price of PG&E Corporation common stock over these periods.