MATTEL, INC. AND SUBSIDIARIES COMPUTATION OF INCOME (LOSS) PER COMMON AND COMMON EQUIVALENT SHARE (in thousands, except per share amounts) For The For The Three Months Ended Nine Months Ended ------------------------- ----------------------------- Sept. 30, Sept. 30, Sept. 30, Sept. 30, BASIC 1999 1998 1999 1998 - ----- ----------- ----------- -------------- ----------- Net income (loss) $ 135,333 $ 168,734 $ (63,952) $ 117,355 Less: Dividends on convertible preferred stock - (1,990) (3,980) (5,970) ----------- ----------- -------------- ----------- Net income (loss) applicable to common shares $ 135,333 $ 166,744 $ (67,932) $ 111,385 =========== =========== ============== =========== Applicable Shares for Computation of Income (Loss) per Share: Weighted average common shares outstanding 425,148 399,218 410,316 387,020 =========== =========== ============== =========== Basic Income (Loss) Per Common Share: Net income (loss) per common share $ 0.32 $ 0.42 $ (0.17) $ 0.29 =========== =========== ============== =========== DILUTED - ------- Net income (loss) $ 135,333 $ 168,734 $ (63,952) $ 117,355 Less: Dividends on convertible preferred stock - - (3,980) (5,970) ----------- ----------- -------------- ----------- Net income (loss) applicable to common shares $ 135,333 $ 168,734 $ (67,932) $ 111,385 =========== =========== ============== =========== Applicable Shares for Computation of Income (Loss) per Share: Weighted average common shares outstanding 425,148 399,218 410,316 387,020 Weighted average common equivalent shares arising from: Dilutive stock options 3,711 8,747 - 9,693 Special warrants - 463 - 4,238 Assumed conversion of Series A convertible preferred stock - 18,000 - 18,000 Assumed conversion of Series C convertible preferred stock - 7,731 - - Stock subscription warrants 595 764 - 777 Nonvested stock - 200 - 142 ----------- ----------- -------------- ----------- Weighted average number of common and common equivalent shares 429,455 435,123 410,316 419,870 =========== =========== ============== =========== Diluted Income (Loss) Per Common Share: Net Income (loss) per common share $ 0.32 $ 0.39 $ (0.17) $ 0.27 =========== =========== ============== ===========