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)
Nine Months Ended Three Months Ended
September 30, September 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 $ 156.0 $ 82.4 $ 75.1 $ 31.3
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Average number of common shares outstanding 95.8 96.0 96.1 95.7
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Basic earnings per common share:
Income Before Extraordinary item $ 1.65 $ .86 $ .80 $ .33
Extraordinary Item (.02) -- (.02) --
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Net Income $ 1.63 $ .86 $ .78 $ .33
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Diluted earnings per common share: (1, 2):
Net income applicable to common stock $ 156.0 $ 82.4 $ 75.1 $ 31.3
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Average number of common shares outstanding 95.8 96.0 96.1 95.7
Add common share effect, assuming conversion
of potentially dilutive securities .5 .8 .5 .7
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Average number of common shares outstanding
on a diluted basis 96.3 96.8 96.6 96.4
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Diluted earnings per common share
Income Before Extraordinary item $ 1.64 $ .85 $ .80 $ .32
Extraordinary Item (.02) -- (.02) --
-------- -------- -------- --------
Net Income $ 1.62 $ .85 $ .78 $ .32
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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 September 30, 1999 included
shares issuable pursuant to certain stock-based compensation
arrangements. These securities included 320,000 shares issuable upon
the vesting of the restricted share units as well as 147,000 shares
issuable upon the exercise of stock options calculated using the
treasury stock method.