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Earnings Per Share
6 Months Ended
Jun. 30, 2014
Earnings Per Share [Abstract]  
Earnings Per Share

9. Earnings Per Share

In conjunction with the Separation, NOV distributed to its stockholders all 107,053,031 shares of common stock of NOW Inc. after the market closed on May 30, 2014. Each NOV stockholder received one share of NOW common stock for every four shares of NOV common stock held at the close of business on the record date of May 22, 2014 and not sold prior to close of business May 30, 2014. On June 2, 2014, NOW Inc. stock began trading the “regular-way” on the New York Stock Exchange under the symbol “DNOW”. Subsequent to the Separation through June 30, 2014, the Company has not granted any stock options, PSAs, RSAs or RSUs.

Basic earnings per share is based on net income attributable to the Company’s earnings and is calculated based upon the daily weighted-average number of common shares outstanding during the periods presented. Also, this calculation includes fully vested stock and unit awards that have not yet been issued as common stock. Diluted EPS includes the above, plus unvested stock, unit or option awards granted and vested unexercised stock options, but only to the extent these instruments dilute earnings per share.

For comparative purposes, and to provide a more meaningful calculation of weighted-average shares outstanding, the Company has assumed the 107,053,031 shares of common stock of NOW Inc. that was distributed on May 30, 2014 to be outstanding as of the beginning of each period prior to the separation presented in the calculation of weighted-average shares. In addition, the Company has assumed the dilutive securities outstanding at May 30, 2014, were also outstanding for each of the periods prior to the Separation presented.

For the three and six months ended June 30, 2014, 1,992,899 stock options, RSAs and RSUs were excluded from the computation of diluted earnings per share due to their antidilutive effect.

 

     Three Months Ended June 30      Six Months Ended June 30  

(In millions, except share data)

   2014      2013      2014      2013  

Numerator for basic and diluted net income per share attributable to the Company’s stockholders:

           

Net income attributable to the Company

   $ 27       $ 33       $ 68       $ 74   
  

 

 

    

 

 

    

 

 

    

 

 

 

Denominator for basic net income per share attributable to the Company’s stockholders:

           

Weighted average common shares outstanding

     107,053,082         107,053,031         107,053,058         107,053,031   

Effect of dilutive securities:

           

Dilutive effect of stock based compensation

     497,263         415,837         456,550         415,837   
  

 

 

    

 

 

    

 

 

    

 

 

 

Denominator for diluted net income per share attributable to the Company’s stockholders:

     107,550,345         107,468,868         107,509,608         107,468,868   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income per share attributable to the Company’s stockholders:

           

Basic

   $ 0.25       $ 0.31       $ 0.64       $ 0.69   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted

   $ 0.25       $ 0.31       $ 0.63       $ 0.69