NOTE 6: EARNINGS PER SHARE

PG&E Corporation’s basic EPS is calculated by dividing the income available for common shareholders by the weighted average number of common shares outstanding. PG&E Corporation applies the treasury stock method of reflecting the dilutive effect of outstanding share-based compensation in the calculation of diluted EPS. The following is a reconciliation of PG&E Corporation’s income available for common shareholders and weighted average common shares outstanding for calculating diluted EPS:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions, except per share amounts)	2015		2014		2015		2014
Income available for common shareholders	$	402	$	267	$	433	$	494
Weighted average common shares outstanding, basic		480		467		479		463
Add incremental shares from assumed conversions:
Employee share-based compensation		3		2		4		2
Weighted average common share outstanding, diluted		483		469		483		465
Total earnings per common share, diluted	$	0.83	$	0.57	$	0.90	$	1.06

For each of the periods presented above, the calculation of outstanding common shares on a diluted basis excluded an insignificant amount of options and securities that were antidilutive.