EXHIBIT 11
CHAMPION INTERNATIONAL CORPORATION AND SUBSIDIARIES
CALCULATION OF PRIMARY EARNINGS (LOSS) PER COMMON SHARE AND FULLY DILUTED
EARNINGS (LOSS) PER COMMON SHARE
Years Ended December 31
-------------------------------------------------
1995 1994 1993
------------ ------------ ------------
(in thousands, except per share amounts)
Primary earnings (loss) per common share (1, 3):
Net income (loss) $ 771,835 $ 63,305 $ (156,243)
Dividends on preference shares 13,258 27,750 27,750
------------ ------------ ------------
Net income (loss) applicable to common stock $ 758,577 $ 35,555 $ (183,993)
============ ============ ============
Average number of common shares outstanding 94,725 93,061 92,788
============ ============ ============
Per share $ 8.01 $ .38 $ (1.98)
============ ============ ============
Fully diluted earnings (loss) per common share (2, 3):
Net income (loss) applicable to common stock $ 758,577 $ 35,555 $ (183,993)
Add income effect, assuming conversion of
dilutive convertible securities 15,106 --- ---
------------ ------------ ------------
Net income (loss) on a fully diluted basis $ 773,683 $ 35,555 $ (183,993)
============ ============ ============
Average number of common shares outstanding 94,725 93,061 92,788
Add common share effect, assuming conversion
of dilutive convertible securities 6,171 --- ---
------------ ------------ ------------
Average number of common shares outstanding
on a fully diluted basis 100,896 93,061 92,788
============ ============ ============
Per share $ 7.67 $ .38 $ (1.98)
============ ============ ============
- --------------------------------------------
Notes:
(1) Common stock equivalents have not been included in the above
calculation since their effect is insignificant.
(2) The computation of fully diluted earnings per share assumes that the
average number of common shares outstanding during the year is
increased by the conversion of securities having a dilutive effect,
and that net income applicable to common stock is increased by
dividends and after-tax interest on such securities.
(3) Earnings per share was calculated for each three month and twelve
month period on a stand-alone basis. On June 22, 1995, the company
purchased all 7,894,737 shares of common stock that were issued on
that date upon conversion of the $92.50 Preference Stock. On June 27,
1995, the company called all $149,893,000 of its 6 1/2% Convertible
Subordinated Debentures due April 15, 2011 for redemption on August 8,
1995. Virtually all of the Debentures were converted into an aggregate
of 4,309,070 shares of common stock during the third quarter. The
company purchased an additional 3,186,000 shares of common stock at
various times during 1995. As a result of all of these transactions,
the sum of the earnings per share for the four quarters of 1995 does
not equal the earnings per share for the twelve months ended December
31, 1995.