EXHIBIT 11
CHAMPION INTERNATIONAL CORPORATION AND SUBSIDIARIES
CALCULATION OF BASIC EARNINGS (LOSS) PER COMMON SHARE AND DILUTED
EARNINGS (LOSS) PER COMMON SHARE
(In millions, except per share)
Years Ended December 31,
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1997 1996 1995
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Basic earnings (loss) per common share (1):
Net income (loss) $ (548.5) $ 141.3 $ 771.8
Dividends on preference shares ___ ___ 13.2
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Net income (loss) applicable to common stock $ (548.5) $ 141.3 $ 758.6
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Average number of common shares outstanding 95.8 95.5 94.7
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Basic earnings (loss) per share $ (5.72) $ 1.48 $ 8.01
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Diluted earnings (loss) per common share (1, 2):
Net income (loss) applicable to common stock $ (548.5) $ 141.3 $ 758.6
Add income effect, assuming conversion of
potentially dilutive securities ___ ___ 15.1
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Net income (loss) on a diluted basis $ (548.5) $ 141.3 $ 773.7
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Average number of common shares outstanding 95.8 95.5 94.7
Add common share effect, assuming conversion
of potentially dilutive securities ___ 0.3 6.2
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Average number of common shares outstanding
on a diluted basis 95.8 95.8 100.9
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Diluted earnings (loss) per share $ (5.72) $ 1.48 $ 7.67
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Notes:
(1) In December 1997, the company adopted Statement of Financial
Accounting Standards No. 128, "Earnings Per Share". Under this
standard, basic earnings per share is computed by dividing net
income applicable to common stockholders by the average number of
common shares outstanding during the year. The computation of
diluted earnings per share assumes that the average number of common
shares outstanding is increased by dilutive common share equivalents
and 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.
(2) Potentially dilutive securities at December 31, 1997 included shares
issuable pursuant to certain stock-based compensation. These
securities included 450,000 shares issuable upon the vesting of the
restricted share units issued in 1996 as well as 270,000 shares
issuable upon the exercise of stock options calculated using the
treasury stock method. Potentially dilutive securities in 1997 were
not included in the computation of diluted earnings per share
because the effect would have been antidilutive.