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, BASIC 1998 1997 - ----- --------- --------- Net income (loss) $ 12,669 $(204,624) Less: Dividends on convertible preferred stock (1,990) (2,840) --------- --------- Net income (loss) applicable to common shares $ 10,679 $(207,464) ========= ========= Applicable Shares for Computation of Income (Loss) per Share: - -------------------------------------------------- Weighted average common shares outstanding 293,048 288,382 ========= ========= Basic Income (Loss) Per Common Share: - ------------------------------------- Net income (loss) per common share $ 0.04 $ (0.72) ========= ========= 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, DILUTED 1998 (a) 1997 (a) - ------- --------- --------- Net income (loss) $ 12,669 $(204,624) Add: Interest savings, net of tax, applicable to: Assumed conversion of 7% Notes - 182 --------- --------- Net income (loss) applicable to common shares $ 12,669 $(204,442) ========= ========= Applicable Shares for Computation of Income (Loss) per Share: - -------------------------------------------------- Weighted average common shares outstanding 293,048 288,382 Weighted average common equivalent shares arising from: Dilutive stock options 4,422 2,911 Assumed conversion of Series B convertible preferred stock - 2,753 Assumed conversion of Series C convertible preferred stock 7,731 7,740 Assumed conversion of 7% Notes - 783 Disney warrant 29 - Stock subscription warrants 665 616 --------- --------- Weighted average number of common and common equivalent shares 305,895 303,185 ========= ========= Diluted Income (Loss) Per Common Share: - --------------------------------------- Net income (loss) per common share $ 0.04 $ (0.67) ========= ========= <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.