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				Nine Months Ended
	September 30,				September 30,
(in millions, except per share amounts)	2016		2015		2016		2015
Income available for common shareholders	$	388	$	307	$	701	$	740
Weighted average common shares outstanding, basic		501		486		497		481
Add incremental shares from assumed conversions:
Employee share-based compensation		2		3		3		3
Weighted average common shares outstanding, diluted		503		489		500		484
Total earnings per common share, diluted	$	0.77	$	0.63	$	1.40	$	1.53

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.