NOTE 7: 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 for 2016, 2015, and 2014.

	Year Ended December 31,
(in millions, except per share amounts)	2016		2015		2014
Income available for common shareholders	$	1,393	$	874	$	1,436
Weighted average common shares outstanding, basic		499		484		468
Add incremental shares from assumed conversions:
Employee share-based compensation		2		3		2
Weighted average common share outstanding, diluted		501		487		470
Total earnings per common share, diluted	$	2.78	$	1.79	$	3.06

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.