Earnings Per Share

6 Months Ended

Jun. 30, 2023

11. Earnings Per Share

For the three and six months ended June 30, 2023, approximately 2 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 June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Numerator:
Net income attributable to NOW Inc.	$	34		$	26		$	65		$	56
Less: net income attributable to participating securities		(1	)		(1	)		(1	)		(1	)
Net income attributable to NOW Inc. stockholders	$	33		$	25		$	64		$	55
Denominator:
Weighted average basic common shares outstanding		107,249,498			110,772,042			108,428,199			110,687,985
Effect of dilutive securities		878,013			302,291			1,044,006			260,932
Weighted average diluted common shares outstanding		108,127,511			111,074,333			109,472,205			110,948,917
Earnings per share attributable to NOW Inc. stockholders:
Basic	$	0.31		$	0.23		$	0.59		$	0.50
Diluted	$	0.31		$	0.23		$	0.59		$	0.50

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.