Earnings Per Share

9 Months Ended

Sep. 30, 2024

11. Earnings Per Share

For the three and nine months ended September 30, 2024, less than 1 million and approximately 1 million, respectively, of shares were excluded from the computation of diluted earnings per share due to their antidilutive effect, compared to approximately 1 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 September 30,					Nine Months Ended September 30,
	2024		2023			2024			2023
Numerator:
Net income attributable to DNOW Inc.	$	13	$	35		$	58		$	100
Less: net income attributable to participating securities		—		(1	)		(1	)		(2	)
Net income attributable to DNOW Inc. stockholders	$	13	$	34		$	57		$	98
Denominator:
Weighted average basic common shares outstanding		106,314,446		106,983,920			106,540,763			107,765,405
Effect of dilutive securities		693,608		1,134,399			784,601			1,074,137
Weighted average diluted common shares outstanding		107,008,054		108,118,319			107,325,364			108,839,542
Earnings per share attributable to DNOW Inc. stockholders:
Basic	$	0.12	$	0.32		$	0.53		$	0.91
Diluted	$	0.12	$	0.32		$	0.53		$	0.90

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.