0000950170-22-014065 | 10-Q | XBRL Viewer

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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2022	Jul. 27, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Trading Symbol	DNOW
Security Exchange Name	NYSE
Entity Registrant Name	NOW INC.
Entity Central Index Key	0001599617
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		110,851,347
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity File Number	001-36325
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	46-4191184
Entity Address, Address Line One	7402 North Eldridge Parkway
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77041
City Area Code	281
Local Phone Number	823-4700
Title of 12(b) Security	Common Stock, par value $0.01
Entity Interactive Data Current	Yes
Document Quarterly Report	true
Document Transition Report	false

Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 232	$ 313
Receivables, net	389	304
Inventories, net	331	250
Prepaid and other current assets	17	16
Total current assets	969	883
Property, plant and equipment, net	111	111
Goodwill	79	67
Intangibles, net	13	9
Other assets	30	34
Total assets	1,202	1,104
Current liabilities:
Accounts payable	290	235
Accrued liabilities	112	112
Other current liabilities	6	22
Total current liabilities	408	369
Long-term operating lease liabilities	12	17
Other long-term liabilities	5	6
Total liabilities	425	392
Commitments and contingencies
Stockholders' equity:
Preferred stock - par value $0.01; 20 million shares authorized; no shares issued and outstanding	0	0
Common stock - par value $0.01; 330 million shares authorized; 110,851,347 and 110,558,831 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively	1	1
Additional paid-in capital	2,067	2,061
Accumulated deficit	(1,147)	(1,203)
Accumulated other comprehensive loss	(144)	(147)
Total stockholders' equity	777	712
Total liabilities and stockholders' equity	$ 1,202	$ 1,104

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	330,000,000	330,000,000
Common stock, shares issued	110,851,347	110,558,831
Common stock, shares outstanding	110,851,347	110,558,831

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Revenue	$ 539	$ 400	$ 1,012	$ 761
Operating expenses:
Cost of products	411	315	777	601
Warehousing, selling and administrative	89	85	173	164
Impairment and other charges	10	0	10	4
Operating profit (loss)	29	(0)	52	(8)
Other income (expense)	(1)	(1)	9	(2)
Income (loss) before income taxes	28	(1)	61	(10)
Income tax provision (benefit)	2	1	5	2
Net income (loss)	$ 26	$ (2)	$ 56	$ (12)
Earnings (loss) per share:
Basic earnings (loss) per common share	$ 0.23	$ (0.02)	$ 0.50	$ (0.11)
Diluted earnings (loss) per common share	$ 0.23	$ (0.02)	$ 0.50	$ (0.11)
Weighted-average common shares outstanding, basic	110,772,042	110,419,322	110,687,985	110,246,306
Weighted-average common shares outstanding, diluted	111,074,333	110,419,322	110,948,917	110,246,306

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 26	$ (2)	$ 56	$ (12)
Other comprehensive income (loss):
Foreign currency translation adjustments	1	2	3	3
Comprehensive income (loss)	$ 27	$ 0	$ 59	$ (9)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities:
Net income (loss)	$ 56	$ (12)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	9	12
Provision for inventory	4	6
Impairment and other charges	10	4
Other, net	(1)	11
Change in operating assets and liabilities, net of effects of acquisitions and divestitures:
Receivables	(88)	(63)
Inventories	(87)	9
Accounts payable, accrued liabilities and other, net	46	37
Net cash provided by (used in) operating activities	(51)	4
Cash flows from investing activities:
Business acquisitions, net of cash acquired	(21)	(96)
Purchases of property, plant and equipment	(6)	(2)
Other, net	2	0
Net cash provided by (used in) investing activities	(25)	(98)
Cash flows from financing activities:
Payments relating to finance leases and other, net	0	(1)
Net cash provided by (used in) financing activities	(0)	(1)
Effect of exchange rates on cash and cash equivalents	(5)	1
Net change in cash and cash equivalents	(81)	(94)
Cash and cash equivalents, beginning of period	313	387
Cash and cash equivalents, end of period	$ 232	$ 293

Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Millions	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings (Deficit) [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Beginning balance at Dec. 31, 2020	$ 699		$ 2,051	$ (1,208)	$ (145)
Beginning balance, shares at Dec. 31, 2020		1
Net income (loss)	(10)			(10)
Stock-based compensation	2		2
Exercise of stock options	1		1
Shares withheld for taxes	(1)		(1)
Other comprehensive income	1				1
Ending balance at Mar. 31, 2021	692		2,053	(1,218)	(144)
Ending balance, shares at Mar. 31, 2021		1
Beginning balance at Dec. 31, 2020	699		2,051	(1,208)	(145)
Beginning balance, shares at Dec. 31, 2020		1
Net income (loss)	(12)
Other comprehensive income					3
Ending balance at Jun. 30, 2021	696		2,057	(1,220)	(142)
Ending balance, shares at Jun. 30, 2021		1
Beginning balance at Mar. 31, 2021	692		2,053	(1,218)	(144)
Beginning balance, shares at Mar. 31, 2021		1
Net income (loss)	(2)			(2)
Stock-based compensation	2		2
Exercise of stock options	2		2
Other comprehensive income	2				2
Ending balance at Jun. 30, 2021	696		2,057	(1,220)	(142)
Ending balance, shares at Jun. 30, 2021		1
Beginning balance at Dec. 31, 2021	712		2,061	(1,203)	(147)
Beginning balance, shares at Dec. 31, 2021		1
Net income (loss)	30			30
Stock-based compensation	2		2
Other comprehensive income	2				2
Ending balance at Mar. 31, 2022	746		2,063	(1,173)	(145)
Ending balance, shares at Mar. 31, 2022		1
Beginning balance at Dec. 31, 2021	712		2,061	(1,203)	(147)
Beginning balance, shares at Dec. 31, 2021		1
Net income (loss)	56
Other comprehensive income					3
Ending balance at Jun. 30, 2022	777		2,067	(1,147)	(144)
Ending balance, shares at Jun. 30, 2022		1
Beginning balance at Mar. 31, 2022	746		2,063	(1,173)	(145)
Beginning balance, shares at Mar. 31, 2022		1
Net income (loss)	26			26
Stock-based compensation	2		2
Exercise of stock options	2		2
Other comprehensive income	1				1
Ending balance at Jun. 30, 2022	$ 777		$ 2,067	$ (1,147)	$ (144)
Ending balance, shares at Jun. 30, 2022		1

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

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- Definition

Amount of stockholders' equity (deficit), net of receivables from officers, directors, owners, and affiliates of the entity, attributable to both the parent and noncontrolling interests. Amount excludes temporary equity. Alternate caption for the concept is permanent equity.

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+ Details

Organization and Basis of Presentation	6 Months Ended
Organization and Basis of Presentation	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Basis of Presentation	1. Organization and Basis of Presentation Nature of Operations NOW Inc. (“NOW” or the “Company”) is a holding company headquartered in Houston, Texas that was incorporated in Delaware on November 22, 2013. NOW operates primarily under the DistributionNOW and DNOW brands. NOW is a global distributor of energy products as well as products for industrial applications through its locations in the United States (“U.S.”), Canada and internationally which are geographically positioned to serve the energy and industrial markets in approximately 80 countries. Additionally, through the Company’s growing DigitalNOW® platform, customers can leverage world-class technology across ecommerce, data management and supply chain optimization applications to solve a wide array of complex operational and product sourcing challenges to assist in maximizing their return on assets. The Company’s energy product offering is consumed throughout all sectors of the energy industry – from upstream drilling and completion, exploration and production, midstream infrastructure development to downstream petroleum refining and petrochemicals – as well as in other industries, such as chemical processing, mining, utilities and renewables. The industrial distribution end markets include engineering and construction firms that perform capital and maintenance projects for their end user clients. NOW also provides supply chain and materials management solutions to the same markets where the Company sells products. NOW’s supplier network consists of thousands of vendors in approximately 40 countries. Basis of Presentation All significant intercompany transactions and accounts have been eliminated. The unaudited consolidated financial information included in this report has been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and Article 10 of SEC Regulation S-X. The principles for interim financial information do not require the inclusion of all the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these financial statements should be read in conjunction with the financial statements included in the Company’s most recent Annual Report on Form 10-K. In the opinion of the Company’s management, the consolidated financial statements include all adjustments, all of which are of a normal recurring nature, necessary for a fair presentation of the results for the interim periods. The results of operations for the three and six months ended June 30, 2022, are not necessarily indicative of the results to be expected for the full year. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported and contingent amounts of assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, receivables and payables approximated fair value because of the relatively short maturity of these instruments. Cash equivalents include only those investments having a maturity date of three months or less at the time of purchase. See Note 12 “Derivative Financial Instruments” for the fair value of derivative financial instruments. Recently Issued Accounting Standards In March 2020, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848), which provides optional expedients and exceptions to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Entities that elect the relief are required to disclose the nature of the optional expedients and exceptions that are adopted and the reasons for the adoptions. The guidance is effective upon issuance and the expedients and exceptions may be applied prospectively through December 31, 2022. The Company is currently evaluating the impact of ASU 2020-04 but does not expect the adoption of this standard to have a material effect on its consolidated financial statements.

Revenue

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue

2. Revenue

The Company’s primary source of revenue is the sale of energy products and an extensive selection of products for industrial applications based upon purchase orders or contracts with customers. The majority of revenue is recognized at a point in time once the Company has determined that the customer has obtained control over the product. Control is typically deemed to have been transferred to the customer when the product is shipped, delivered or picked up by the customer. The Company does not grant extended payment terms. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to proper government authorities. Shipping and handling costs for product shipments occur prior to the customer obtaining control of the goods and are recorded in cost of products.

The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for products sold. Revenue is recorded at the transaction price net of estimates of variable consideration, which may include product returns, trade discounts and allowances. The Company accrues for variable consideration using the expected value method. Estimates of variable consideration are included in revenue to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur.

See Note 7 “Business Segments” for disaggregation of revenue by reporting segments. The Company believes this disaggregation best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

Remaining Performance Obligations

Remaining performance obligations represent the transaction price of firm orders for which work has not been performed on contracts with an original expected duration of more than one year. The Company’s contracts are predominantly short-term in nature with a contract term of one year or less. For those contracts, the Company has utilized the practical expedient in Accounting Standards Codification (“ASC”) Topic 606 exempting the Company from disclosure of the transaction price allocated to remaining performance obligations when the performance obligation is part of a contract that has an original expected duration of one year or less.

Receivables

Receivables are recorded when the Company has an unconditional right to consideration. Receivables are recorded and carried at the original invoiced amount less the allowance for doubtful accounts (“AFDA”). The estimated AFDA reflects the Company’s immediate recognition of current expected credit losses by incorporating the historical loss experience, as well as current and future market conditions that are reasonably available. Judgments in the estimate of AFDA include global economic and business conditions, oil and gas industry and market conditions, customer’s financial conditions and accounts receivable past due. As of June 30, 2022 and December 31, 2021, AFDA totaled $26 million and $25 million, respectively.

Contract Assets and Liabilities

Contract assets primarily consist of retainage amounts held as a form of security by customers until the Company satisfies its remaining performance obligations. As of June 30, 2022 and December 31, 2021, contract assets were $1 million for both periods and were included in receivables, net in the consolidated balance sheets. The Company generally accounts for the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less; however, these expenses are not material.

Contract liabilities primarily consist of deferred revenues recorded when customer payments are received or due in advance of satisfying performance obligations, including amounts which are refundable, and other accrued customer liabilities. Revenue recognition is deferred to a future period until the Company completes its obligations contractually agreed with customers. As of June 30, 2022 and December 31, 2021, contract liabilities were $30 million and $27 million, respectively, and were included in accrued liabilities in the consolidated balance sheets. For the six months ended June 30, 2022, the increase in contract liabilities was primarily related to net customer deposits of approximately $17 million, partially offset by recognizing revenue of approximately $14 million that was deferred as of December 31, 2021.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

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+ Details

Property, Plant and Equipment, net

6 Months Ended

Jun. 30, 2022

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment, net

3. Property, Plant and Equipment, net

Property, plant and equipment consist of (in millions):


	Estimated Useful Lives	June 30, 2022			December 31, 2021
Information technology assets	1-7 Years	$	48		$	48
Operating equipment (1)	2-15 Years		127			129
Buildings and land (2)	5-35 Years		95			91
Construction in progress			3			3
Total property, plant and equipment			273			271
Less: accumulated depreciation			(162	)		(160	)
Property, plant and equipment, net		$	111		$	111

(1)

Includes finance lease right-of-use assets.

(2)

Land has an indefinite life.

Accrued Liabilities

6 Months Ended

Jun. 30, 2022

Payables and Accruals [Abstract]

Accrued Liabilities

4. Accrued Liabilities

Accrued liabilities consist of (in millions):


	June 30, 2022		December 31, 2021
Compensation and other related expenses	$	32	$	35
Contract liabilities		30		27
Taxes (non-income)		11		12
Current portion of operating lease liabilities		14		15
Other		25		23
Total	$	112	$	112

Debt

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Debt

5. Debt

On December 14, 2021, the Company entered into an amendment to its existing senior secured revolving credit facility with a syndicate of lenders with Wells Fargo Bank, National Association, serving as the administrative agent (as amended, the “Credit Facility”).

Effective with the amendment, the Credit Facility provides for a $500 million global revolving credit facility, of which up to $50 million is available for the Company’s Canadian subsidiaries, and the maturity is extended to December 14, 2026. The Company has the right, subject to certain conditions, to increase the aggregate principal amount of commitments under the credit facility by $250 million. The Credit Facility also provides a letter of credit sub-facility of $25 million. The obligations under the Credit Facility are secured by substantially all the assets of the Company and its subsidiaries. The Credit Facility contains customary covenants, representations and warranties and events of default. The Company will be required to maintain a fixed charge coverage ratio of at least 1.00:1.00 as of the end of each fiscal quarter if excess availability under the Credit Facility falls below the greater of 10% of the borrowing base or $40 million.

Borrowings under the Credit Facility will bear an interest rate at the Company’s option, at (i) the base rate plus an applicable margin based on the Company’s fixed charge coverage ratio (and if applicable, the Company’s leverage ratio); or (ii) the greater of LIBOR for the applicable interest period and zero, plus an applicable margin based on the Company’s fixed charge coverage ratio (and if applicable, the Company’s leverage ratio). As part of the amendment, when the fixed charge coverage ratio (as defined in the Credit Facility) is less than or equal to 1.50 to 1.00, the applicable rate for borrowings of base rate loans and Eurocurrency rate loans decreases by 0.250%. The Credit Facility includes a commitment fee on the unused portion of commitments that ranges from 25 to 37.5 basis points. Commitment fees incurred during the period were included in other income (expense) in the consolidated statements of operations.

Availability under the Credit Facility is determined by a borrowing base comprised of eligible receivables, eligible inventory and certain pledged deposits in the U.S and Canada. As of June 30, 2022, the Company had no borrowings against the Credit Facility and approximately $454 million in availability (as defined in the Credit Facility) resulting in the excess availability (as defined in the Credit Facility) of 99%, subject to certain limitations. The Company is not obligated to repay borrowings against the current Credit Facility until the expiration date.

The Company issued $5 million in letters of credit under the Credit Facility primarily for casualty insurance requirements expiring in June 2023.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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+ Details

Accumulated Other Comprehensive Income (Loss) ("AOCI")

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss) ("AOCI")

6. Accumulated Other Comprehensive Income (Loss) ("AOCI")

The components of AOCI are as follows (in millions):


	Foreign Currency Translation Adjustments
	Six Months Ended June 30,
	2022			2021
Beginning balance	$	(147	)	$	(145	)
Other comprehensive income (loss) before reclassifications		(7	)		3
Amounts reclassified from accumulated other comprehensive income (loss)		10			—
Net current-period other comprehensive income (loss)		3			3
Ending balance	$	(144	)	$	(142	)

The Company’s reporting currency is the U.S. dollar. A majority of the Company’s international entities in which there is a substantial investment have the local currency as their functional currency. As a result, foreign currency translation adjustments resulting from the process of translating the entities’ financial statements into the reporting currency are reported in other comprehensive income or loss in accordance with ASC Topic 830, “Foreign Currency Matters.”

As of June 30, 2022, the Company substantially completed the liquidation of certain foreign subsidiaries in its International segment. As a result, the Company reclassified $10 million of foreign currency translation losses from the component of AOCI into earnings, reflected in impairment and other charges in the consolidated statement of operations.

Business Segments

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Business Segments

7. Business Segments

Operating results by reportable segment are as follows (in millions):


	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Revenue:
United States	$	408		$	296		$	742		$	548
Canada		72			51			154			109
International		59			53			116			104
Total revenue	$	539		$	400		$	1,012		$	761
Operating profit (loss):
United States	$	32		$	(3	)	$	46		$	(16	)
Canada		6			2			13			6
International		(9	)		1			(7	)		2
Total operating profit (loss)	$	29		$	—		$	52		$	(8	)

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

8. Income Taxes

The effective tax rates for the three and six months ended June 30, 2022, were 7.1% and 8.2%, respectively, compared to (88.9%) and (14.8%), respectively, for the corresponding periods of 2021. In general, the effective tax rate differs from the U.S. statutory rate due to recurring items, such as differing tax rates on income earned in foreign jurisdictions, nondeductible expenses, state income taxes and the change in valuation allowance recorded against deferred tax assets. For the three and six months ended June 30, 2022, the effective tax rate was primarily driven by the recognition of tax expense from earnings in Canada offset by current year realization of deferred tax assets and corresponding release of valuation allowance in the U.S., as well as impairment charges incurred as a result of substantially completing the liquidation of certain foreign subsidiaries with no associated tax benefit. The current geopolitical conditions and the COVID-19 pandemic have had an impact on the global supply chain and create continuing uncertainty in the Company’s short-term results. Consequently, the Company is continuing to rely on the discrete-period method for calculating its interim period tax provision for the three and six months ended June 30, 2022. The Company will evaluate its use of this method each quarter until such time as a return to the annualized estimated effective tax rate method is deemed appropriate.

The Company is subject to taxation in the U.S., various states and foreign jurisdictions. The Company has significant operations in the U.S. and Canada and to a lesser extent in various other international jurisdictions. Tax years that remain subject to examination vary by legal entity but are generally open in the U.S. for the tax years ending after 2017 and outside the U.S. for the tax years ending after 2015.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Earnings (Loss) Per Share

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Earnings (Loss) Per Share

9. Earnings (Loss) Per Share

For the three and six months ended June 30, 2022, approximately 2 million and 3 million, respectively, of potentially dilutive shares were excluded from the computation of diluted earnings per share due to their antidilutive effect. For the three and six months ended June 30, 2021, approximately 6 million of potentially dilutive shares were excluded in both periods from the computation of diluted earnings per share due to the Company recognizing a net loss.

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


	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Numerator:
Net income (loss) attributable to the Company	$	26		$	(2	)	$	56		$	(12	)
Less: net income attributable to participating securities		(1	)		—			(1	)		—
Net income (loss) attributable to the Company's stockholders	$	25		$	(2	)	$	55		$	(12	)
Denominator:
Weighted average basic common shares outstanding		110,772,042			110,419,322			110,687,985			110,246,306
Effect of dilutive securities		302,291			—			260,932			—
Weighted average diluted common shares outstanding		111,074,333			110,419,322			110,948,917			110,246,306
Earnings (loss) per share attributable to the Company's stockholders:
Basic	$	0.23		$	(0.02	)	$	0.50		$	(0.11	)
Diluted	$	0.23		$	(0.02	)	$	0.50		$	(0.11	)

Under ASC Topic 260, “Earnings Per Share”, the two-class method requires a portion of net income attributable to the Company 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 loss is not allocated to unvested awards in periods the Company determines that those shares are not obligated to participate in losses. For the periods that the Company recognized net income, net income attributable to the Company allocated to these participating securities was excluded from net income attributable to the Company’s stockholders in the numerator of the earnings per share computation.

Stock-based Compensation and Outstanding Awards

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

Stock-based Compensation and Outstanding Awards

10. Stock-based Compensation and Outstanding Awards

For the six months ended June 30, 2022, the Company granted 1,152,413 shares of restricted stock awards ("RSAs") and restricted stock units ("RSUs") with a weighted average fair value of $9.86 per share. In addition, the Company granted performance stock awards ("PSAs") to senior management employees with potential payouts varying from zero to 701,668 shares. The RSAs and RSUs vest on the first and third anniversary of the date of grant. The PSAs can be earned based on performance against established metrics over a three-year performance period.

Stock-based compensation expense totaled $2 million and $4 million for the three and six months ended June 30, respectively, in both 2022 and 2021.

Commitments and Contingencies

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

11. Commitments and Contingencies

The Company is involved in various claims, regulatory agency audits and pending or threatened legal actions involving a variety of matters with entities such as suppliers, customers, parties to acquisitions and divestitures, government authorities and other external parties. The Company regularly reviews and records the estimated probable liability in an amount believed to be sufficient and continues to periodically reexamine the estimates of probable liabilities and any associated expenses to make appropriate adjustments to such estimates as necessary. These estimated liabilities are based on the Company’s assessment of the nature of these matters, their progress toward resolution, the advice of legal counsel and outside experts as well as management’s intention and past experience regarding the valuation of these claims. The Company has also assessed the potential for additional losses above the amounts accrued as well as potential losses for matters that are not probable but are reasonably possible. The total potential loss on these matters cannot be determined. While the Company has established estimates it believes to be reasonable under the facts known, the outcomes of litigation and similar disputes are often difficult to reliably predict and may result in decisions or settlements that are contrary to, or in excess of, the Company's expectations.

The Company’s business is affected both directly and indirectly by governmental laws and regulations relating to the oilfield service industry in general, as well as by environmental and safety regulations that specifically apply to the Company’s business. Although the Company has not incurred material costs in connection with its compliance with such laws, there can be no assurance that other

developments, such as new environmental laws, regulations and enforcement policies hereunder may not result in additional, presently unquantifiable costs or liabilities to the Company. The Company does not accrue for contingent losses that, in its judgment, are considered to be reasonably possible, but not probable. Estimating reasonably possible losses also requires the analysis of multiple possible outcomes that often depend on judgments about potential actions by third parties.

The Company maintains credit arrangements with several banks providing for standby letters of credit, including bid and performance bonds, and other bonding requirements. As of June 30, 2022, the Company was contingently liable for approximately $13 million of outstanding standby letters of credit and surety bonds. The Company does not believe, based on historical experience and information currently available, that it is probable that any amounts will be required to be paid on those letters of credit and surety bonds.

In 2021, the Company completed an acquisition which included a contingent consideration arrangement that required additional consideration to be paid based on the achievement of a specified performance target over the earn-out period of one year. The fair value of contingent consideration liability included in other current liabilities in the consolidated balance sheet as of December 31, 2021, was approximately $13 million. As of March 31, 2022, the earn-out period was completed and the Company calculated the contingent consideration threshold was not achieved. As a result, the Company recognized a benefit of approximately $13 million in other income (expense) in the consolidated statement of operations in the three months ended March 31, 2022. However, the Company is currently in disagreement with the sellers on certain aspects of the agreement. The Company does not believe at this time that resolution of the matter will have a material impact on its consolidated financial statements, but the final outcome has not been determined.

Derivative Financial Instruments

6 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

12. Derivative Financial Instruments

The Company is exposed to certain risks relating to its ongoing business operations. The Company has entered into certain financial derivative instruments to manage this risk.

The derivative financial instruments the Company has entered into are forward exchange contracts which have terms of less than one year to economically hedge foreign currency exchange rate risk on recognized nonfunctional currency monetary accounts. The purpose of the Company’s foreign currency hedging activities is to economically hedge the Company’s risk from changes in the fair value of nonfunctional currency denominated monetary accounts.

The Company records all derivative financial instruments at their fair value in its consolidated balance sheets. None of the derivative financial instruments that the Company holds are designated as either a fair value hedge or cash flow hedge and the gain or loss on the derivative instrument is recorded in earnings. The Company has determined that the fair value of its derivative financial instruments are computed using level 2 inputs (inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly for substantially the full term of the asset or liability) in the fair value hierarchy as the fair value is based on publicly available foreign exchange rates at each financial reporting date. As of June 30, 2022 and December 31, 2021, the fair value of the Company’s foreign currency forward contracts totaled an asset of less than $1 million and a liability of less than $1 million in both periods. The Company's foreign currency forward contract assets were included in prepaid and other current assets in the consolidated balance sheets and the Company's foreign contract liabilities were included in other current liabilities in the consolidated balance sheets.

For the three and six months ended June 30, 2022, the Company recorded a loss of less than $1 million in both periods related to changes in fair value. For the three and six months ended June 30, 2021, the Company recorded a gain of less than $1 million in both periods related to changes in fair value. All gains and losses were included in other income (expense) in the consolidated statements of operations. The notional principal associated with those contracts was $11 million and $9 million as of June 30, 2022 and December 31, 2021, respectively.

As of June 30, 2022, the Company’s financial instruments do not contain any credit-risk-related or other contingent features that could cause accelerated payments when the Company’s financial instruments are in net liability positions. The Company does not use derivative financial instruments for trading or speculative purposes.

Acquisitions

6 Months Ended

Jun. 30, 2022

Business Combinations [Abstract]

Acquisitions

13. Acquisition

During the three months ended June 30, 2022, the Company completed an acquisition for a net purchase price consideration of approximately $21 million cash. The acquisition expands NOW's product offering in the U.S. Process Solutions reporting unit. The Company completed its preliminary valuations as of the acquisition date of the acquired net assets and recognized goodwill of $12 million and intangible assets of $4 million in the United States segment, which are subject to change. If additional information is obtained about these assets and liabilities within the measurement period (not to exceed one year from the date of acquisition), the Company will refine its estimate of fair value to allocate the purchase price more accurately; any such revisions are not expected to be significant. All of the goodwill is expected to be deductible for income tax purposes. The Company has not presented supplemental pro forma information because the acquired operations did not materially impact the Company’s consolidated operating results.

Subsequent Event

6 Months Ended

Jun. 30, 2022

Subsequent Events [Abstract]

Subsequent Event

14. Subsequent Event

On August 3, 2022, the Company’s board of directors approved a share repurchase program, under which the Company is authorized to purchase up to $80 million of its outstanding common stock through December 31, 2024.

Organization and Basis of Presentation (Policies)	6 Months Ended
Organization and Basis of Presentation (Policies)	Jun. 30, 2022
Accounting Policies [Abstract]
Nature of Operations	Nature of Operations NOW Inc. (“NOW” or the “Company”) is a holding company headquartered in Houston, Texas that was incorporated in Delaware on November 22, 2013. NOW operates primarily under the DistributionNOW and DNOW brands. NOW is a global distributor of energy products as well as products for industrial applications through its locations in the United States (“U.S.”), Canada and internationally which are geographically positioned to serve the energy and industrial markets in approximately 80 countries. Additionally, through the Company’s growing DigitalNOW® platform, customers can leverage world-class technology across ecommerce, data management and supply chain optimization applications to solve a wide array of complex operational and product sourcing challenges to assist in maximizing their return on assets. The Company’s energy product offering is consumed throughout all sectors of the energy industry – from upstream drilling and completion, exploration and production, midstream infrastructure development to downstream petroleum refining and petrochemicals – as well as in other industries, such as chemical processing, mining, utilities and renewables. The industrial distribution end markets include engineering and construction firms that perform capital and maintenance projects for their end user clients. NOW also provides supply chain and materials management solutions to the same markets where the Company sells products. NOW’s supplier network consists of thousands of vendors in approximately 40 countries.
Basis of Presentation	Basis of Presentation All significant intercompany transactions and accounts have been eliminated. The unaudited consolidated financial information included in this report has been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and Article 10 of SEC Regulation S-X. The principles for interim financial information do not require the inclusion of all the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these financial statements should be read in conjunction with the financial statements included in the Company’s most recent Annual Report on Form 10-K. In the opinion of the Company’s management, the consolidated financial statements include all adjustments, all of which are of a normal recurring nature, necessary for a fair presentation of the results for the interim periods. The results of operations for the three and six months ended June 30, 2022, are not necessarily indicative of the results to be expected for the full year.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported and contingent amounts of assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, receivables and payables approximated fair value because of the relatively short maturity of these instruments. Cash equivalents include only those investments having a maturity date of three months or less at the time of purchase. See Note 12 “Derivative Financial Instruments” for the fair value of derivative financial instruments.
Recently Issued Accounting Standards	Recently Issued Accounting Standards In March 2020, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848), which provides optional expedients and exceptions to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Entities that elect the relief are required to disclose the nature of the optional expedients and exceptions that are adopted and the reasons for the adoptions. The guidance is effective upon issuance and the expedients and exceptions may be applied prospectively through December 31, 2022. The Company is currently evaluating the impact of ASU 2020-04 but does not expect the adoption of this standard to have a material effect on its consolidated financial statements.
Accumulated Other Comprehensive Income (Loss)	The Company’s reporting currency is the U.S. dollar. A majority of the Company’s international entities in which there is a substantial investment have the local currency as their functional currency. As a result, foreign currency translation adjustments resulting from the process of translating the entities’ financial statements into the reporting currency are reported in other comprehensive income or loss in accordance with ASC Topic 830, “Foreign Currency Matters.”
Revenue Recognition	The Company’s primary source of revenue is the sale of energy products and an extensive selection of products for industrial applications based upon purchase orders or contracts with customers. The majority of revenue is recognized at a point in time once the Company has determined that the customer has obtained control over the product. Control is typically deemed to have been transferred to the customer when the product is shipped, delivered or picked up by the customer. The Company does not grant extended payment terms. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to proper government authorities. Shipping and handling costs for product shipments occur prior to the customer obtaining control of the goods and are recorded in cost of products. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for products sold. Revenue is recorded at the transaction price net of estimates of variable consideration, which may include product returns, trade discounts and allowances. The Company accrues for variable consideration using the expected value method. Estimates of variable consideration are included in revenue to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. See Note 7 “Business Segments” for disaggregation of revenue by reporting segments. The Company believes this disaggregation best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
Remaining Performance Obligations	Remaining Performance Obligations Remaining performance obligations represent the transaction price of firm orders for which work has not been performed on contracts with an original expected duration of more than one year. The Company’s contracts are predominantly short-term in nature with a contract term of one year or less. For those contracts, the Company has utilized the practical expedient in Accounting Standards Codification (“ASC”) Topic 606 exempting the Company from disclosure of the transaction price allocated to remaining performance obligations when the performance obligation is part of a contract that has an original expected duration of one year or less.
Receivables	Receivables Receivables are recorded when the Company has an unconditional right to consideration. Receivables are recorded and carried at the original invoiced amount less the allowance for doubtful accounts (“AFDA”). The estimated AFDA reflects the Company’s immediate recognition of current expected credit losses by incorporating the historical loss experience, as well as current and future market conditions that are reasonably available. Judgments in the estimate of AFDA include global economic and business conditions, oil and gas industry and market conditions, customer’s financial conditions and accounts receivable past due. As of June 30, 2022 and December 31, 2021, AFDA totaled $26 million and $25 million, respectively.
Contract Assets and Liabilities	Contract Assets and Liabilities Contract assets primarily consist of retainage amounts held as a form of security by customers until the Company satisfies its remaining performance obligations. As of June 30, 2022 and December 31, 2021, contract assets were $1 million for both periods and were included in receivables, net in the consolidated balance sheets. The Company generally accounts for the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less; however, these expenses are not material. Contract liabilities primarily consist of deferred revenues recorded when customer payments are received or due in advance of satisfying performance obligations, including amounts which are refundable, and other accrued customer liabilities. Revenue recognition is deferred to a future period until the Company completes its obligations contractually agreed with customers. As of June 30, 2022 and December 31, 2021, contract liabilities were $30 million and $27 million, respectively, and were included in accrued liabilities in the consolidated balance sheets. For the six months ended June 30, 2022, the increase in contract liabilities was primarily related to net customer deposits of approximately $17 million, partially offset by recognizing revenue of approximately $14 million that was deferred as of December 31, 2021.

Property, Plant and Equipment, net (Tables)

6 Months Ended

Jun. 30, 2022

Property, Plant and Equipment [Abstract]

Summary of Property, Plant and Equipment

Property, plant and equipment consist of (in millions):


	Estimated Useful Lives	June 30, 2022			December 31, 2021
Information technology assets	1-7 Years	$	48		$	48
Operating equipment (1)	2-15 Years		127			129
Buildings and land (2)	5-35 Years		95			91
Construction in progress			3			3
Total property, plant and equipment			273			271
Less: accumulated depreciation			(162	)		(160	)
Property, plant and equipment, net		$	111		$	111

(1)

Includes finance lease right-of-use assets.

(2)

Land has an indefinite life.

Accrued Liabilities (Tables)

6 Months Ended

Jun. 30, 2022

Payables and Accruals [Abstract]

Summary of Accrued Liabilities

Accrued liabilities consist of (in millions):


	June 30, 2022		December 31, 2021
Compensation and other related expenses	$	32	$	35
Contract liabilities		30		27
Taxes (non-income)		11		12
Current portion of operating lease liabilities		14		15
Other		25		23
Total	$	112	$	112

Accumulated Other Comprehensive Income (Loss) ("AOCI") (Tables)

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Components of AOCI

The components of AOCI are as follows (in millions):


	Foreign Currency Translation Adjustments
	Six Months Ended June 30,
	2022			2021
Beginning balance	$	(147	)	$	(145	)
Other comprehensive income (loss) before reclassifications		(7	)		3
Amounts reclassified from accumulated other comprehensive income (loss)		10			—
Net current-period other comprehensive income (loss)		3			3
Ending balance	$	(144	)	$	(142	)

Business Segments (Tables)

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Summary of Operating Results by Reportable Segment

Operating results by reportable segment are as follows (in millions):


	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Revenue:
United States	$	408		$	296		$	742		$	548
Canada		72			51			154			109
International		59			53			116			104
Total revenue	$	539		$	400		$	1,012		$	761
Operating profit (loss):
United States	$	32		$	(3	)	$	46		$	(16	)
Canada		6			2			13			6
International		(9	)		1			(7	)		2
Total operating profit (loss)	$	29		$	—		$	52		$	(8	)

Earnings (Loss) Per Share (Tables)

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings (Loss) Per Share

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


	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Numerator:
Net income (loss) attributable to the Company	$	26		$	(2	)	$	56		$	(12	)
Less: net income attributable to participating securities		(1	)		—			(1	)		—
Net income (loss) attributable to the Company's stockholders	$	25		$	(2	)	$	55		$	(12	)
Denominator:
Weighted average basic common shares outstanding		110,772,042			110,419,322			110,687,985			110,246,306
Effect of dilutive securities		302,291			—			260,932			—
Weighted average diluted common shares outstanding		111,074,333			110,419,322			110,948,917			110,246,306
Earnings (loss) per share attributable to the Company's stockholders:
Basic	$	0.23		$	(0.02	)	$	0.50		$	(0.11	)
Diluted	$	0.23		$	(0.02	)	$	0.50		$	(0.11	)

Organization and Basis of Presentation - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2022 GeographicMarket Country
Basis Of Presentation And Organization [Abstract]
Number of geographical area covered \| GeographicMarket	80
Number of countries distribution occur through vendors \| Country	40

Revenue - Additional Information (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Disaggregation Of Revenue [Line Items]
Allowance for doubtful accounts receivable	$ 26	$ 25
Contract liabilities	30	27
Deferred revenue		14
Increase in contract liabilities for net customer deposits	17
Receivables Net [Member]
Disaggregation Of Revenue [Line Items]
Contract Assets	$ 1	$ 1
Maximum [Member]
Disaggregation Of Revenue [Line Items]
Amortization period of revenue recognized	1 year

Property, Plant and Equipment, net - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 273	$ 271
Less: accumulated depreciation	(162)	(160)
Property, plant and equipment, net	111	111
Information Technology Assets [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	48	48
Operating Equipment [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	127	129
Buildings and Land [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	95	91
Construction in Progress [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 3	$ 3
Minimum [Member] \| Information Technology Assets [Member]
Property Plant And Equipment [Line Items]
Property plant and equipment estimated useful lives	1 year
Minimum [Member] \| Operating Equipment [Member]
Property Plant And Equipment [Line Items]
Property plant and equipment estimated useful lives	2 years
Minimum [Member] \| Buildings [Member]
Property Plant And Equipment [Line Items]
Property plant and equipment estimated useful lives	5 years
Maximum [Member] \| Information Technology Assets [Member]
Property Plant And Equipment [Line Items]
Property plant and equipment estimated useful lives	7 years
Maximum [Member] \| Operating Equipment [Member]
Property Plant And Equipment [Line Items]
Property plant and equipment estimated useful lives	15 years
Maximum [Member] \| Buildings [Member]
Property Plant And Equipment [Line Items]
Property plant and equipment estimated useful lives	35 years

Property, Plant and Equipment, net - Summary of Property, Plant and Equipment (Parenthetical) (Detail)	6 Months Ended
	Jun. 30, 2022
Land [Member]
Property Plant And Equipment [Line Items]
Estimated Useful Lives	indefinite life

Accrued Liabilities - Summary of Accrued Liabilities (Detail) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Compensation and other related expenses	$ 32	$ 35
Contract liabilities	30	27
Taxes (non-income)	11	12
Current portion of operating lease liabilities	14	15
Other	25	23
Total	$ 112	$ 112

Debt - Additional Information (Detail) - USD ($)		6 Months Ended
Debt - Additional Information (Detail) - USD ($)	Dec. 14, 2021	Jun. 30, 2022
Debt Instrument [Line Items]
Agreement date	Dec. 14, 2021
Senior secured revolving credit facility commitment	$ 500,000,000
Increase in aggregate principal amount	$ 250,000,000
Description of line of credit	The Company will be required to maintain a fixed charge coverage ratio of at least 1.00:1.00 as of the end of each fiscal quarter if excess availability under the Credit Facility falls below the greater of 10% of the borrowing base or $40 million.
Minimum amount of credit facility required to maintain coverage ratio percentage	10.00%
Minimum amount of credit facility required to maintain coverage ratio	$ 25,000,000	$ 40,000,000
Fixed charge coverage ratio	100.00%
Euro currency rate loans member
Debt Instrument [Line Items]
Interest rate	0.25%
Senior Secured Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of credit facility borrowings		0
Line of Credit Facility, Available Borrowing Capacity		$ 454,000,000
Line Of credit Unused Capacity Percentage		99.00%
Letters of credit		$ 5,000,000
Casualty insurance, expiration month and year		2023-06
Minimum [Member]
Debt Instrument [Line Items]
Unused portion of commitment fee range	0.25%
Maximum [Member]
Debt Instrument [Line Items]
Fixed charge coverage ratio	150.00%
Unused portion of commitment fee range	0.375%
Canadian Subsidiaries [Member]
Debt Instrument [Line Items]
Senior secured revolving credit facility commitment	$ 50,000,000

Accumulated Other Comprehensive Income (Loss) ("AOCI") - Components of AOCI (Detail) - USD ($) $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Accumulated other comprehensive income (loss), Beginning balance		$ (147)			$ (147)
Amounts reclassified from accumulated other comprehensive income (loss)					10
Net current-period other comprehensive income (loss)	$ 1	2	$ 2	$ 1
Accumulated other comprehensive income (loss), Ending balance	(144)				(144)
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated other comprehensive income (loss), Beginning balance		(147)		(145)	(147)	$ (145)
Other comprehensive income (loss) before reclassifications					(7)	3
Amounts reclassified from accumulated other comprehensive income (loss)					10
Net current-period other comprehensive income (loss)	1	$ 2	2	$ 1	3	3
Accumulated other comprehensive income (loss), Ending balance	$ (144)		$ (142)		$ (144)	$ (142)

- Definition

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References + Details

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

+ References

+ Details

Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($)
Statement of Comprehensive Income [Abstract]
Reclassification of foreign currency translation adjustments	$ 10

Business Segments - Summary of Operating Results by Reportable Segment (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenue:
Total revenue	$ 539	$ 400	$ 1,012	$ 761
Operating profit (loss):
Total operating profit (loss)	29	(0)	52	(8)
United States [Member]
Revenue:
Total revenue	408	296	742	548
Operating profit (loss):
Total operating profit (loss)	32	(3)	46	(16)
Canada [Member]
Revenue:
Total revenue	72	51	154	109
Operating profit (loss):
Total operating profit (loss)	6	2	13	6
International [Member]
Revenue:
Total revenue	59	53	116	104
Operating profit (loss):
Total operating profit (loss)	$ (9)	$ 1	$ (7)	$ 2

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

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+ Details

Income Taxes - Additional Information (Detail)	3 Months Ended		6 Months Ended
Income Taxes - Additional Information (Detail)	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Effective tax rates	7.10%	(88.90%)	8.20%	(14.80%)

Earnings (Loss) Per Share - Additional Information (Detail) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Earnings Per Share [Abstract]
Antidilutive Securities excluded from Computation of Earnings Per Share	2	6	3	6

Earnings (Loss) Per Share - Computation of Basic and Diluted Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Numerator:
Net income (loss) attributable to the Company	$ 26	$ 30	$ (2)	$ (10)	$ 56	$ (12)
Less: net income attributable to participating securities	(1)		0		(1)	0
Net income (loss) attributable to the Company's stockholders	$ 25		$ (2)		$ 55	$ (12)
Denominator:
Weighted average basic common shares outstanding	110,772,042		110,419,322		110,687,985	110,246,306
Effect of dilutive securities	302,291		0		260,932	0
Weighted average diluted common shares outstanding	111,074,333		110,419,322		110,948,917	110,246,306
Basic	$ 0.23		$ (0.02)		$ 0.50	$ (0.11)
Diluted	$ 0.23		$ (0.02)		$ 0.50	$ (0.11)

Stock-based Compensation and Outstanding Awards - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock based awards, shares granted			1,152,413
Stock-based compensation expense	$ 2	$ 2	$ 4	$ 4
Restricted Stock and Restricted Stock Units [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock based awards, shares granted			1,152,413
Weighted average grant date fair value, Granted			$ 9.86
Performance-base restricted stock [Member] \| Minimum [Member] \| Senior Management Employees [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock based awards, shares granted			0
Performance-base restricted stock [Member] \| Maximum [Member] \| Senior Management Employees [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock based awards, shares granted			701,668
Cumulative Shareholder Return Performance Stock Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Performance based restricted stock awards goals over performance period			3 years

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Jun. 30, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Contingent liability		$ 13
Fair value of contingent consideration			$ 13
Change in fair value of contingent consideration	$ 13

Derivative Financial Instruments - Additional Information (Detail) - Derivatives Not Designated as Hedging Instrument [Member] - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Derivatives Fair Value [Line Items]
Foreign currency forward contracts, notional amount	$ 11		$ 11		$ 9
Other Expense [Member] \| Maximum [Member]
Derivatives Fair Value [Line Items]
Foreign currency forward contracts, gain (loss) related to changes in fair value	1	$ 1	1	$ 1
Prepaid and Other Current Assets [Member] \| Maximum [Member]
Derivatives Fair Value [Line Items]
Foreign currency forward contracts, assets	1		1		1
Other Current Liabilities [Member] \| Maximum [Member]
Derivatives Fair Value [Line Items]
Foreign currency forward contracts, liability	$ 1		$ 1		$ 1

Acquisitions - Additional Information (Detail) $ in Millions	3 Months Ended
	Jun. 30, 2022 USD ($)
Business Combinations [Abstract]
Purchase price consideration in cash	$ 21
Intangible assets	4
Goodwill	$ 12

Subsequent Event - Additional Information (Detail) shares in Millions	Aug. 03, 2022 shares
Subsequent Event [Member]
Subsequent Event [Line Items]
Number of shares authorized to purchase	80