Earnings Per Share

3 Months Ended

Mar. 31, 2023

11. Earnings Per Share

For the three months ended March 31, 2023 and 2022, approximately 1 million and 4 million of potentially dilutive shares were excluded from the computation of diluted earnings per share due to their antidilutive effect.

Basic and diluted earnings per share are as follows (in millions, except share data):


	Three Months Ended March 31,
	2023		2022
Numerator:
Net income attributable to NOW Inc.	$	31	$	30
Less: net income attributable to participating securities		—		—
Net income attributable to NOW Inc. stockholders	$	31	$	30
Denominator:
Weighted average basic common shares outstanding		110,006,858		110,602,943
Effect of dilutive securities		1,209,998		219,574
Weighted average diluted common shares outstanding		111,216,856		110,822,517
Earnings per share attributable to NOW Inc. stockholders:
Basic	$	0.28	$	0.27
Diluted	$	0.28	$	0.27

Under ASC Topic 260, “Earnings Per Share”, the two-class method requires a portion of net income attributable to NOW Inc. to be allocated to participating securities, which are unvested awards of share-based payments with non-forfeitable rights to receive dividends or dividend equivalents, if declared. For the periods that the Company recognized net income, net income allocated to these participating securities was excluded from net income attributable to NOW Inc. stockholders in the numerator of the earnings per share computation.