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)
Six Months Ended Three Months Ended
June 30, June 30,
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1999 1998 1999 1998
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Basic earnings per common share (1):
Net income applicable to common stock $ 80.9 $ 51.1 $ 39.3 $ 32.1
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Average number of common shares outstanding 95.7 96.2 95.8 96.2
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Basic earnings per common share $ .85 $ .53 $ .41 $ .33
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Diluted earnings per common share: (1, 2):
Net income applicable to common stock $ 80.9 $ 51.1 $ 39.3 $ 32.1
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Average number of common shares outstanding 95.7 96.2 95.8 96.2
Add common share effect, assuming conversion
of potentially dilutive securities .6 .8 .5 .8
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Average number of common shares outstanding
on a diluted basis 96.3 97.0 96.3 97.0
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Diluted earnings per common share $ .84 $ .53 $ .41 $ .33
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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 June 30, 1999 included shares
issuable pursuant to certain stock-based compensation arrangements.
These securities included 319,500 shares issuable upon the vesting
of the restricted share units as well as 155,000 shares issuable
upon the exercise of stock options calculated using the treasury
stock method.