EXHIBIT 11 CHAMPION INTERNATIONAL CORPORATION AND SUBSIDIARIES Calculation of Basic Earnings Per Common Share and Diluted Earnings Per Common Share (unaudited) (in millions, except per share) Three Months Ended March 31, -------------------- 2000 1999 ------- ------ Basic earnings per common share (1): Net income applicable to common stock $ 98 $ 42 ====== ====== Average number of common shares outstanding 96.5 95.6 ====== ====== Basic earnings per common share $ 1.01 $ .44 ====== ====== Diluted earnings per common share: (1, 2): Net income applicable to common stock $ 98 $ 42 ====== ====== Average number of common shares outstanding 96.5 95.6 Add common share effect, assuming conversion of potentially dilutive securities .6 .6 ------ ------ Average number of common shares outstanding on a diluted basis 97.1 96.2 ====== ====== Diluted earnings per common share $ 1.01 $ .43 ====== ====== - ---------- NOTES: (1) Basic earnings per common share is computed by dividing net income applicable to common stockholders by the average number of common shares outstanding. The computation of diluted earnings per common share assumes that the average number of common shares outstanding is increased by dilutive common share equivalents. (2) Potentially dilutive securities at March 31, 2000 included shares issuable pursuant to certain stock-based compensation arrangements. These securities included 312,000 shares issuable upon the vesting of the restricted share units as well as 314,000 shares issuable upon the exercise of stock options calculated using the treasury stock method.