PG&E 2013 Annual Report Download - page 77

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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 2013, 2012 and 2011.
Year Ended December 31,
2013 2012 2011
(in millions, except per share amounts)
Income available for common shareholders ....... $ 814 $ 816 $ 844
Weighted average common shares outstanding, basic 444 424 401
Add incremental shares from assumed conversions:
Employee share-based compensation ...........111
Weighted average common share outstanding, diluted 445 425 402
Total earnings per common share, diluted ........ $ 1.83 $ 1.92 $ 2.10
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.
NOTE 8: INCOME TAXES
The significant components of income tax provision (benefit) by taxing jurisdiction were as follows:
PG&E Corporation Utility
Year Ended December 31,
2013 2012 2011 2013 2012 2011
(in millions)
Current:
Federal ............ $ (218) $ (74) $ (77) $ (222) $ (52) $ (83)
State ............. (26) 33 152 (23) 41 161
Deferred:
Federal ............ 552 374 504 604 404 534
State ............. (35) (92) (135) (28) (91) (128)
Tax credits ........... (5) (4) (4) (5) (4) (4)
Income tax provision .. $ 268 $ 237 $ 440 $ 326 $ 298 $ 480
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