DNOW Inc.

The Company conducts certain operations through contractual arrangements with entities that are considered VIE. The Company is the primary beneficiary and consolidates the VIE as it has the power to direct the activities that most significantly affect the VIE’s economic performance and has the obligation to absorb the VIE’s losses or the right to receive benefits. For the three and nine months ended September 30, 2026, net loss attributable to noncontrolling interests was less than$1 million for each period, and for the three and nine months ended September 30, 2025, net income attributable to noncontrolling interests was less than $1 million and approximately$1 million, respectively.

The assets of the VIE can only be used to settle its own obligations and its creditors have no recourse to the Company’s assets. As of September 30, 2026 and December 31, 2025, the VIE’s assets were primarily current assets of$26 million and$24 million, respectively, including cash and cash equivalents, receivables, net, inventories, net and prepaid and other current assets. As of September 30, 2026 and December 31, 2025, the VIE’s liabilities were primarily current liabilities of$13 million and$8 million, respectively, including accounts payable and accrued liabilities.