PG&E 2007 Annual Report Download - page 33

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31
(unaudited, in millions, except share and per share amounts) 2007 2006
Operating Revenues $ 13,237 $ 12,539
Net Income
Earnings from operations(1) 1,006 922
Items impacting comparability(2) — 69
Reported consolidated net income 1,006 991
Income Per Common Share, diluted
Earnings from operations(1) 2.78 2.57
Items impacting comparability(2) — 0.19
Reported consolidated net earnings per common share, diluted 2.78 2.76
Dividends Declared Per Common Share 1.44 1.32
Total Assets at December 31, 36,648 34,803
Number of common shareholders at December 31, 89,166 93,170
Number of common shares outstanding at December 31,(3) 379,646,276 374,181,059
(1) Earnings from operations does not meet the guidelines of accounting principles generally accepted in the United States of America, or GAAP. It should
not be considered an alternative to net income. It refl ects net income of PG&E Corporation, on a stand-alone basis, and the Utility, but excludes items
impacting comparability, in order to provide a measure that allows investors to compare the core underlying fi nancial performance of the business from
one period to another, exclusive of items that management believes do not refl ect the normal course of operations.
(2) Items impacting comparability represent items that management does not believe are refl ective of normal core operations. For 2007, PG&E Corporation
did not have any items impacting comparability to report.
Items impacting comparability for 2006 include:
• The recovery of approximately $77 million ($0.21 per common share), after-tax, of Scheduling Coordinator costs, incurred from April 1998 through
September 2006, based on a Federal Energy Regulatory Commission order;
• An increase of approximately $18 million ($0.05 per common share), after-tax, in the estimated cost of environmental remediation associated with
the Utility’s gas compressor station located near Hinkley, California, as a result of changes in the California Regional Water Quality Control Board’s
imposed remediation levels;
• The recovery of approximately $28 million ($0.08 per common share), after-tax, of previously recorded net interest expense on the Power Exchange
Corporation liability from April 12, 2004 to February 10, 2005, in the Energy Recovery Bond Balancing Account as a result of completion of the
verifi cation audit by the CPUC in the Utility’s 2005 annual electric true-up proceeding; and
• Severance costs of approximately $18 million ($0.05 per common share), after-tax, to refl ect consolidation of various positions in connection with the
Utility’s effort to streamline processes and achieve cost and operating effi ciencies through implementation of various initiatives.
(3) The common shares outstanding include 24,665,500 shares at December 31, 2007 and December 31, 2006, held by a wholly owned subsidiary of PG&E
Corporation. These shares are accounted for as a reduction of outstanding shares in the Consolidated Financial Statements.
FINANCIAL HIGHLIGHTS
PG&E Corporation