MATTEL, INC. AND SUBSIDIARIES EXHIBIT 11.0 (Page 1 of 2) COMPUTATION OF INCOME (LOSS) PER COMMON AND COMMON EQUIVALENT SHARE ------------------------------------------------------------------- FOR THE FOR THE THREE MONTHS ENDED SIX MONTHS ENDED ---------------------- ---------------------- June 30, June 30, June 30, June 30, BASIC 1998 1997 1998 1997 - ----- --------- --------- --------- --------- Net income (loss) $ 60,384 $ 75,634 $ 73,053 $(128,990) Less: Dividends on convertible preferred stock (1,990) (2,837) (3,980) (5,677) --------- --------- --------- --------- Net income (loss) applicable to common shares $ 58,394 $ 72,797 $ 69,073 $(134,667) ========= ========= ========= ========= Applicable Shares for Computation of Income (Loss) per Share: - -------------------------------------------------- Weighted average common shares outstanding 291,737 292,890 290,069 293,131 ========= ========= ========= ========= 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 FOR THE THREE MONTHS ENDED SIX MONTHS ENDED ---------------------- ---------------------- June 30, June 30, June 30, June 30, DILUTED 1997 (a) 1996 (b) 1997 (b) 1996 (b) - ------- --------- --------- --------- --------- Net income (loss) $ 60,384 $ 75,634 $ 73,053 $(128,990) Add: Interest savings, net of tax, applicable to: Assumed conversion of 7% Notes - 182 - 364 Net income (loss) applicable to common shares --------- --------- --------- --------- $ 60,384 $ 75,816 $ 73,053 $(128,626) ========= ========= ========= ========= Applicable Shares for Computation of Income (Loss) per Share: - -------------------------------------------------- Weighted average common shares outstanding 293,433 291,737 293,242 290,069 Weighted average common equivalent shares arising from: Dilutive stock options 3,627 3,352 4,024 3,072 Assumed conversion of Series B convertible preferred stock - 2,753 - 2,753 Assumed conversion of Series C convertible preferred stock 7,731 7,740 7,731 7,740 Assumed conversion of 7% Notes - 893 - 838 Disney warrant - - 15 - Stock subscription warrants 660 627 662 621 --------- --------- --------- --------- Weighted average number of common and common equivalent shares 305,451 307,102 305,674 305,093 ========= ========= ========= ========= Diluted Income (Loss) Per Common Share: - --------------------------------------- Net income (loss) per common share $ 0.20 $ 0.25 $ 0.24 $ (0.42) ========= ========= ========= ========= <FN> (a) - This calculation is submitted in accordance with Regulation S-K, Item 601 (b)(11), although it is contrary to paragraph 13 of FAS No. 128 because it produces an anti-dilutive result.