Earnings Per Share

6 Months Ended

Jun. 30, 2024

11. Earnings Per Share

For the three and six months ended June 30, 2024, less than 1 million and approximately 1 million, respectively, of potentially dilutive shares were excluded from the computation of diluted earnings per share due to their antidilutive effect, compared to approximately 2 million in both periods for the corresponding periods of 2023.

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


	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
Numerator:
Net income attributable to DNOW Inc.	$	24		$	34		$	45		$	65
Less: net income attributable to participating securities		(1	)		(1	)		(1	)		(1	)
Net income attributable to DNOW Inc. stockholders	$	23		$	33		$	44		$	64
Denominator:
Weighted average basic common shares outstanding		106,865,008			107,249,498			106,655,156			108,428,199
Effect of dilutive securities		757,796			878,013			830,097			1,044,006
Weighted average diluted common shares outstanding		107,622,804			108,127,511			107,485,253			109,472,205
Earnings per share attributable to DNOW Inc. stockholders:
Basic	$	0.21		$	0.31		$	0.41		$	0.59
Diluted	$	0.21		$	0.31		$	0.41		$	0.59

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.