MATTEL, INC. AND SUBSIDIARIES EXHIBIT 11.0 (Page 1 of 2) COMPUTATION OF INCOME (LOSS) PER COMMON AND COMMON EQUIVALENT SHARE ------------------------------------------------------------------- (In thousands, except per share amounts) For The Three Months Ended ---------------------- March 31, March 31, PRIMARY 1997 (a) 1996 - ------- --------- --------- Net income (loss) $(204,624) $ 20,534 Deduct: Dividends on convertible preferred stock (2,840) (827) --------- --------- Net income (loss) applicable to common shares $(207,464) $ 19,707 ========= ========= Applicable Shares for Computation of Income (Loss) per Share: - -------------------------------------------------- Weighted average common shares outstanding 288,382 293,371 Weighted average common equivalent shares arising from: Dilutive stock options - 3,836 Fisher-Price warrants - 986 Nonvested stock - 665 --------- --------- Weighted average number of common and common equivalent shares 288,382 298,858 ========= ========= Income (Loss) Per Common Share: - ------------------------------- Net income (loss) per common share $ (0.72) $ 0.07 ========= ========= <FN> (a) Stock options and Fisher-Price warrants have been excluded from this calculation because their impact is anti-dilutive. MATTEL, INC. AND SUBSIDIARIES EXHIBIT 11.0 (Page 2 of 2) COMPUTATION OF INCOME (LOSS) PER COMMON AND COMMON EQUIVALENT SHARE ------------------------------------------------------------------- (In thousands, except per share amounts) For The Three Months Ended ---------------------- March 31, March 31, FULLY DILUTED 1997 (a) 1996 (a) - ------------- --------- --------- Net income (loss) $(204,624) $ 20,534 Add: Interest savings, net of tax, applicable to: Assumed conversion of 7% convertible subordinated notes 182 182 --------- --------- Net income (loss) applicable to common shares $(204,442) $ 20,716 ========= ========= Applicable Shares for Computation of Income (Loss) per Share: - -------------------------------------------------- Weighted average common shares outstanding 288,382 293,371 Weighted average common equivalent shares arising from: Dilutive stock options 2,905 3,999 Assumed conversion of convertible preferred stock 10,493 2,696 Fisher-Price warrants 616 991 Assumed conversion of 7% convertible subordinated notes 783 783 Nonvested stock - 696 --------- --------- Weighted average number of common and common equivalent shares 303,179 302,536 ========= ========= Income (Loss) Per Common Share: - ------------------------------- Net income (loss) per common share $ (0.67) $ 0.07 ========= ========= <FN> (a) This calculation is submitted in accordance with Regulation S-K, Item 601 (b)(11), although it is contrary to paragraph 40 of APB Opinion No. 15 because it produces an anti-dilutive result.