DNOW Inc.

Allowance for credit losses is estimated based on an evaluation of accounts receivable aging and the related historical loss experience. In accordance with ASU 2025-05, the Company assumes that current conditions as of the balance sheet date will remain unchanged over the remaining life of the asset when estimating expected credit losses on current trade receivables and contract assets. Judgments in the estimate of allowance for credit losses include global economic and business conditions, oil and gas industry and market conditions, customers' financial conditions and accounts receivable past due. As of June 30, 2026 and December 31, 2025, the allowance for credit losses totaled$20 million and$14 million, respectively. For the three months ended June 30, 2026 and 2025, the provision for credit losses totaled $2 million and less than $1 million, respectively, and $7 million and $1 million for the six months ended June 30, 2026 and 2025, respectively.