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,
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1996 1995 1994
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Net income (loss) $ 141,306 $ 771,835 $ 63,305
Dividends on preference shares --- 13,258 27,750
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Net income (loss) applicable to common stock $ 141,306 $ 758,577 $ 35,555
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Average number of common shares outstanding 95,524 94,725 93,061
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Per share $ 1.48 $ 8.01 $ .38
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Fully diluted earnings (loss) per common
share (2,3):
Net income (loss) applicable to common stock $ 141,306 $ 758,577 $ 35,555
Add income effect, assuming conversion of
dilutive convertible securities --- 15,106 ---
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Net income (loss) on a fully diluted basis $ 141,306 $ 773,683 $ 35,555
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Average number of common shares outstanding 95,524 94,725 93,061
Add common share effect, assuming conversion
of dilutive convertible securities --- 6,171 ---
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Average number of common shares outstanding
on a fully diluted basis 95,524 100,896 93,061
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Per share $ 1.48 $ 7.67 $ .38
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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 Cumulative Convertible 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.