Earnings Per Share

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Earnings Per Share

11. Earnings Per Share

For the three and nine months ended September 30, 2023, approximately 1 million in both periods, of potentially dilutive shares were excluded from the computation of diluted earnings per share due to their antidilutive effect, compared to approximately 2 million and 3 million, respectively, for the corresponding periods of 2022.

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Numerator:
Net income attributable to NOW Inc.	$	35		$	40		$	100		$	96
Less: net income attributable to participating securities		(1	)		(1	)		(2	)		(1	)
Net income attributable to NOW Inc. stockholders	$	34		$	39		$	98		$	95
Denominator:
Weighted average basic common shares outstanding		106,983,920			110,863,381			107,765,405			110,747,087
Effect of dilutive securities		1,134,399			569,398			1,074,137			363,754
Weighted average diluted common shares outstanding		108,118,319			111,432,779			108,839,542			111,110,841
Earnings per share attributable to NOW Inc. stockholders:
Basic	$	0.32		$	0.35		$	0.91		$	0.85
Diluted	$	0.32		$	0.35		$	0.90		$	0.85

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. Net income attributable to these participating securities was excluded from net income attributable to NOW Inc. stockholders in the numerator of the earnings per share computation.