Earnings Per Share

3 Months Ended

Mar. 31, 2024

11. Earnings Per Share

For the three months ended March 31, 2024 and 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.

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


	Three Months Ended March 31,
	2024		2023
Numerator:
Net income attributable to DNOW Inc.	$	21	$	31
Less: net income attributable to participating securities		—		—
Net income attributable to DNOW Inc. stockholders	$	21	$	31
Denominator:
Weighted average basic common shares outstanding		106,445,323		110,006,858
Effect of dilutive securities		902,398		1,209,998
Weighted average diluted common shares outstanding		107,347,721		111,216,856
Earnings per share attributable to DNOW Inc. stockholders:
Basic	$	0.20	$	0.28
Diluted	$	0.19	$	0.28

Under ASC Topic 260, “Earnings Per Share”, the two-class method requires a portion of net income attributable to DNOW 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 DNOW Inc. stockholders in the numerator of the earnings per share computation.