FERGUSON PLC, 10-Q filed on 6/5/2024
Quarterly Report
v3.24.1.1.u2
Cover - shares
 9 Months Ended
Apr. 30, 2024
May 31, 2024
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Apr. 30, 2024  
Document Transition Report false  
Entity File Number 001-40066  
Entity Registrant Name Ferguson plc  
Entity Incorporation, State or Country Code Y9  
Entity Tax Identification Number 98-1499339  
Entity Address, Address Line One 1020 Eskdale Road  
Entity Address, Address Line Two Winnersh Triangle  
Entity Address, City or Town Wokingham  
Entity Address, Postal Zip Code RG41 5TS,  
Entity Address, Country GB  
City Area Code 118  
Local Phone Number 927 3800  
Title of 12(b) Security Ordinary Shares of 10 pence  
Trading Symbol FERG  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   201,940,271
Entity Central Index Key 0001832433  
Current Fiscal Year End Date --07-31  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q3  
Amendment Flag false  
v3.24.1.1.u2
Condensed Consolidated Statements of Earnings - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Apr. 30, 2024
Apr. 30, 2023
Apr. 30, 2024
Apr. 30, 2023
Income Statement [Abstract]        
Net sales $ 7,308 $ 7,140 $ 21,689 $ 21,896
Cost of sales (5,076) (5,000) (15,097) (15,273)
Gross profit 2,232 2,140 6,592 6,623
Selling, general and administrative expenses (1,522) (1,435) (4,503) (4,376)
Impairments and other charges 0 (127) 0 (127)
Depreciation and amortization (85) (81) (248) (243)
Operating profit 625 497 1,841 1,877
Interest expense, net (43) (48) (132) (136)
Other expense, net (1) (2) (4) (7)
Income before income taxes 581 447 1,705 1,734
Provision for income taxes (138) (111) (421) (429)
Net income $ 443 $ 336 $ 1,284 $ 1,305
Earnings per share, Basic (in usd per share) $ 2.19 $ 1.64 $ 6.32 $ 6.30
Earnings per share, Diluted (in usd per share) $ 2.18 $ 1.63 $ 6.30 $ 6.28
Weighted average number of shares outstanding:        
Basic (in shares) 202.6 205.4 203.3 207.1
Diluted (in shares) 203.2 206.1 203.9 207.9
v3.24.1.1.u2
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Apr. 30, 2024
Apr. 30, 2023
Apr. 30, 2024
Apr. 30, 2023
Statement of Comprehensive Income [Abstract]        
Net income $ 443 $ 336 $ 1,284 $ 1,305
Other comprehensive income (loss):        
Foreign currency translation adjustments (19) (7) (33) (25)
Pension adjustments, net of tax impacts of ($1), $0, ($3) and ($1), respectively. 2 4 7 11
Total other comprehensive loss, net of tax: (17) (3) (26) (14)
Comprehensive income $ 426 $ 333 $ 1,258 $ 1,291
v3.24.1.1.u2
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Apr. 30, 2024
Apr. 30, 2023
Apr. 30, 2024
Apr. 30, 2023
Statement of Comprehensive Income [Abstract]        
Pension adjustments, tax (expense) benefit $ (1) $ 0 $ (3) $ (1)
v3.24.1.1.u2
Condensed Consolidated Balance Sheets - USD ($)
$ in Millions
Apr. 30, 2024
Jul. 31, 2023
Assets    
Cash and cash equivalents $ 691 $ 601
Accounts receivable, less allowances of $41 and $27, respectively 3,532 3,597
Inventories 4,115 3,898
Prepaid and other current assets 946 953
Assets held for sale 30 28
Total current assets 9,314 9,077
Property, plant and equipment, net 1,692 1,595
Operating lease right-of-use assets 1,511 1,474
Deferred income taxes, net 306 300
Goodwill 2,325 2,241
Other intangible assets, net 767 783
Other non-current assets 543 524
Total assets 16,458 15,994
Liabilities and shareholders’ equity    
Accounts payable 3,638 3,408
Short-term debt 150 55
Current portion of operating lease liabilities 382 366
Other current liabilities 1,359 1,600
Total current liabilities 5,529 5,429
Long-term debt 3,518 3,711
Long-term portion of operating lease liabilities 1,155 1,126
Other long-term liabilities 734 691
Total liabilities 10,936 10,957
Shareholders’ equity:    
Ordinary shares, par value 10 pence: 500,000,000 shares authorized, 232,171,182 shares issued 30 30
Paid-in capital 855 809
Retained earnings 9,301 8,557
Treasury shares, 30 and 28 shares, respectively at cost (3,750) (3,425)
Employee Benefit Trusts, 0 and 0 shares, respectively at cost 0 (46)
Accumulated other comprehensive loss (914) (888)
Total shareholders' equity 5,522 5,037
Total liabilities and shareholders' equity $ 16,458 $ 15,994
v3.24.1.1.u2
Condensed Consolidated Balance Sheets (Parenthetical)
$ in Millions
Apr. 30, 2024
USD ($)
shares
Apr. 30, 2024
£ / shares
Jul. 31, 2023
USD ($)
shares
Jul. 31, 2023
£ / shares
Statement of Financial Position [Abstract]        
Allowance for credit loss | $ $ 41   $ 27  
Ordinary shares, par value (in pound sterling per share) | £ / shares   £ 10   £ 10
Ordinary shares, shares authorized (in shares) 500,000,000   500,000,000  
Ordinary shares, shares issued (in shares) 232,171,182   232,171,182  
Treasury stock (in shares) 29,993,774   27,893,680  
Employee Benefit Trusts (in shares) 0   274,031  
v3.24.1.1.u2
Condensed Consolidated Statements of Shareholders’ Equity - USD ($)
$ in Millions
Total
Ordinary Shares
Paid-in Capital
Retained Earnings
Treasury Shares
Employee Benefit Trusts
Accumulated Other Comprehensive Loss
Beginning balance at Jul. 31, 2022 $ 4,665 $ 30 $ 760 $ 7,594 $ (2,782) $ (107) $ (830)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Other comprehensive loss (37)            
Ending balance at Oct. 31, 2022             (867)
Beginning balance at Jul. 31, 2022 4,665 30 760 7,594 (2,782) (107) (830)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Share-based compensation 39   39        
Net income 1,305     1,305      
Cash dividends declared (704)     (704)      
Other comprehensive loss (14)           (14)
Share repurchases (570)       (570)    
Shares issued under employee share plans 0     (67) 6 61  
Ending balance at Apr. 30, 2023 4,721 30 799 8,128 (3,346) (46) (844)
Beginning balance at Oct. 31, 2022             (867)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Other comprehensive loss 26            
Ending balance at Jan. 31, 2023 4,725 30 789 7,945 (3,151) (47) (841)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Share-based compensation 10   10        
Net income 336     336      
Cash dividends declared (152)     (152)      
Other comprehensive loss (3)           (3)
Share repurchases (195)       (195)    
Shares issued under employee share plans 0     (1)   1  
Ending balance at Apr. 30, 2023 4,721 30 799 8,128 (3,346) (46) (844)
Beginning balance at Jul. 31, 2023 5,037 30 809 8,557 (3,425) (46) (888)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Other comprehensive loss (34)            
Ending balance at Oct. 31, 2023             (922)
Beginning balance at Jul. 31, 2023 5,037 30 809 8,557 (3,425) (46) (888)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Share-based compensation 44   44        
Net income 1,284     1,284      
Cash dividends declared (472)     (472)      
Other comprehensive loss (26)           (26)
Share repurchases (351)       (351)    
Shares issued under employee share plans 3     (68) 26 45  
Other 3   2     1  
Ending balance at Apr. 30, 2024 5,522 30 855 9,301 (3,750) 0 (914)
Beginning balance at Oct. 31, 2023             (922)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Other comprehensive loss 25            
Ending balance at Jan. 31, 2024 5,418 30 842 9,018 (3,575)   (897)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Share-based compensation 13   13        
Net income 443     443      
Cash dividends declared (160)     (160)      
Other comprehensive loss (17)           (17)
Share repurchases (175)       (175)    
Ending balance at Apr. 30, 2024 $ 5,522 $ 30 $ 855 $ 9,301 $ (3,750) $ 0 $ (914)
v3.24.1.1.u2
Condensed Consolidated Statements of Shareholders’ Equity (Parenthetical) - $ / shares
 3 Months Ended 9 Months Ended
Apr. 30, 2024
Apr. 30, 2023
Apr. 30, 2024
Apr. 30, 2023
Statement of Stockholders' Equity [Abstract]        
Cash dividends (in usd per share) $ 0.79 $ 0.75 $ 2.33 $ 3.41
v3.24.1.1.u2
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended 32 Months Ended
Apr. 30, 2024
Apr. 30, 2023
Apr. 30, 2024
Apr. 30, 2023
Apr. 30, 2024
Cash flows from operating activities:          
Net income $ 443 $ 336 $ 1,284 $ 1,305  
Depreciation and amortization     248 243  
Share-based compensation     39 38  
Non-cash impact of impairments and net loss on disposal of assets     0 127  
Change in deferred income taxes     (14) (88)  
(Increase) decrease in inventories     (194) 315  
Decrease in receivables and other assets     107 313  
Increase (decrease) in accounts payable and other liabilities     107 (441)  
Decrease in income taxes payable     (69) (12)  
Other operating activities     (1) 6  
Net cash provided by operating activities of continuing operations     1,507 1,806  
Net cash used in operating activities of discontinued operations     0 (4)  
Net cash provided by operating activities     1,507 1,802  
Cash flows from investing activities:          
Purchase of businesses acquired, net of cash acquired     (185) (179)  
Capital expenditures     (263) (361)  
Other investing activities     30 (3)  
Net cash used in investing activities     (418) (543)  
Cash flows from financing activities:          
Purchase of treasury shares     (421) (784) $ (2,900)
Repayments of debt     (1,480) (2,280)  
Proceeds from debt     1,375 2,250  
Change in bank overdrafts     19 1  
Cash dividends     (465) (557)  
Other financing activities     (23) (19)  
Net cash used in financing activities     (995) (1,389)  
Change in cash, cash equivalents and restricted cash     94 (130)  
Effects of exchange rate changes     (8) 20  
Cash, cash equivalents and restricted cash, beginning of period     669 785  
Cash, cash equivalents and restricted cash, end of period 755 675 755 675 755
Supplemental Disclosures:          
Cash paid for income taxes     505 529  
Cash paid for interest     162 156  
Accrued capital expenditures     9 11  
Accrued dividends $ 160 $ 153 $ 160 $ 153 $ 160
v3.24.1.1.u2
Summary of significant accounting policies
 9 Months Ended
Apr. 30, 2024
Accounting Policies [Abstract]  
Summary of significant accounting policies Summary of significant accounting policies
Background
Ferguson plc (the “Company”) (NYSE: FERG; LSE: FERG) is a public company limited by shares incorporated in Jersey under the Companies (Jersey) Law 1991 (as amended). The Company is a value-added distributor in North America providing expertise, solutions and products from infrastructure, plumbing and appliances to HVAC, fire, fabrication and more. We exist to make our customers’ complex projects simple, successful and sustainable. Ferguson is headquartered in the United Kingdom (“U.K.”), with its operations and associates solely focused on North America and managed from Newport News, Virginia. The Company’s registered office is 13 Castle Street, St Helier, Jersey, JE1 1ES, Channel Islands.
Basis of presentation
The accompanying unaudited condensed consolidated financial statements and notes to the condensed consolidated financial statements are presented in accordance with the rules and regulations of the SEC and accounting principles generally accepted in the United States of America (“U.S. GAAP”), but do not include all disclosures normally required in annual consolidated financial statements. In the opinion of management, the unaudited condensed consolidated financial statements contain all normal recurring adjustments necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented. The July 31, 2023 condensed consolidated balance sheet was derived from the audited financial statements.
For the nine months ended April 30, 2023 and to conform to current period presentation, the Company has disaggregated the total change in income taxes within the cash flows from operating activities to reflect the changes in deferred income taxes separately from the changes in income taxes payable.
These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Annual Report. The financial results for the interim periods may not be indicative of the financial results for the entire fiscal year.
Use of estimates
The preparation of the Company's interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions affecting certain reported amounts. Actual results may differ from those estimates.
Cash, cash equivalents and restricted cash
Cash and cash equivalents include cash on hand, deposits with banks with original maturities of three months or less and overdrafts to the extent there is a legal right of offset and practice of net settlement with cash balances.
Restricted cash primarily consists of deferred consideration for business combinations, subject to various settlement agreements, and is recorded in prepaid and other current assets in the Company’s condensed consolidated balance sheets.
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets compared with amounts shown in the condensed consolidated statements of cash flows.
As of
(In millions)April 30, 2024July 31, 2023
Cash and cash equivalents$691 $601 
Restricted cash64 68 
Total cash, cash equivalents and restricted cash$755 $669 
Supplier finance program
In October 2023, the Company began a supplier financing program with a third party wherein certain shipping and logistics providers in the United States can opt to receive early payment at a nominal discount. The Company’s standard payment terms under this program is 45 days. All outstanding payables related to the supplier finance program are classified within accounts payable within our unaudited consolidated balance sheets and were $49 million as of April 30, 2024.
Recently issued accounting standard updates (“ASU”)
In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This ASU expands public entities’ required segment disclosures, including disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items and interim disclosures of a reportable segment’s profit or loss and assets. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of adopting this ASU on its disclosures.
In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This ASU provides qualitative and quantitative updates to the rate reconciliation and income taxes paid disclosures, among others, in order to enhance the transparency of income tax disclosures, including consistent categories and greater disaggregation of information in the rate reconciliation and disaggregation by jurisdiction of income taxes paid. The amendments in this ASU are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied prospectively; however, retrospective application is also permitted. The Company is currently evaluating the ASU to determine the impact on its disclosures.
Recent accounting pronouncements pending adoption that are not discussed above are either not applicable, or will not have, or are not expected to have, a material impact on our consolidated financial condition, results of operations, cash flows or related disclosures.
v3.24.1.1.u2
Revenue and segment information
 9 Months Ended
Apr. 30, 2024
Segment Reporting [Abstract]  
Revenue and segment information Revenue and segment information
The Company reports its financial results of operations on a geographical basis in the following two reportable segments: United States and Canada. Each segment generally derives its revenues in the same manner. The Company uses adjusted operating profit as its measure of segment profit. Adjusted operating profit is defined as profit before tax, excluding central and other costs, restructuring costs, impairments and other charges, amortization of acquired intangible assets, net interest expense, as well as other items typically recorded in net other (expense) income such as (loss)/gain on disposal of businesses, pension plan changes/closure costs and amounts recorded in connection with the Company’s interests in investees. Certain income and expenses are not allocated to the Company’s segments and, thus, the information that management uses to make operating decisions and assess performance does not reflect such amounts.
Segment details were as follows:
Three months endedNine months ended
April 30,April 30,
(In millions)2024202320242023
Net sales:
United States$6,974 $6,827 $20,667 $20,863 
Canada334 313 1,022 1,033 
Total net sales$7,308 $7,140 $21,689 $21,896 
Adjusted operating profit:
United States$685 $664 $1,976 $2,088 
Canada6 7 38 54 
Central and other costs(17)(14)(47)(39)
Corporate restructurings(1)
(12)— (20)— 
Impairments and other charges(2)
— (127)— (127)
Amortization of acquired intangible assets(37)(33)(106)(99)
Interest expense, net(43)(48)(132)(136)
Other expense, net(1)(2)(4)(7)
Income before income taxes$581 $447 $1,705 $1,734 
(1)For the three and nine months ended April 30, 2024, corporate restructuring costs related to incremental costs in connection with establishing a new corporate structure to domicile our ultimate parent company in the United States.
(2)For the three and nine months ended April 30, 2023, impairments and other charges related to the $107 million in software impairment charges in the United States, as well as charges associated with the closure of certain smaller, underperforming branches in the United States.
Our products are delivered through a common network of distribution centers, branches, specialist sales associates, counter service, showroom consultants and e-commerce. The Company recognizes revenue when a sales arrangement with a customer exists, the transaction price is fixed or determinable, collection of consideration is probable and the Company has satisfied its performance obligation per the sales arrangement. The majority of the Company’s revenue originates from sales arrangements with a single performance obligation to deliver products, whereby the performance obligations are satisfied when control of the product is transferred to the customer which is the point the product is delivered to, or collected by, the customer.
The Company determined that disaggregating net sales by end market at the segment level achieves the disclosure objective to depict how the nature, amount, timing, and uncertainty of revenue and cash flows may be impacted by economic factors. The disaggregated net sales by end market are as follows:
Three months endedNine months ended
April 30,April 30,
(In millions)2024202320242023
United States:
Residential$3,552 $3,534 $10,591 $10,956 
Non-residential:
Commercial2,337 2,231 6,929 6,764 
Civil/Infrastructure599 567 1,740 1,713 
Industrial486 495 1,407 1,430 
Total Non-residential3,422 3,293 10,076 9,907 
Total United States6,974 6,827 20,667 20,863 
Canada334 313 1,022 1,033 
Total net sales$7,308 $7,140 $21,689 $21,896 
No sales to an individual customer accounted for more than 10% of net sales during any of the periods presented.
The Company is a value-added distributor in North America of products from infrastructure, plumbing and appliances to HVAC, fire, fabrication and more. We offer a broad line of products, and items are regularly added to and removed from the Company's inventory. Accordingly, it would be impractical to provide sales information by product category due to the way the business is managed, and the dynamic nature of the inventory offered.
v3.24.1.1.u2
Weighted average shares
 9 Months Ended
Apr. 30, 2024
Earnings Per Share [Abstract]  
Weighted average shares Weighted average shares
The following table presents the reconciliation of our basic to diluted weighted average number of shares outstanding:
Three months endedNine months ended
April 30,April 30,
(In millions)2024202320242023
   Basic weighted average shares202.6 205.4 203.3 207.1 
   Effect of dilutive shares(1)
0.6 0.7 0.6 0.8 
   Diluted weighted average shares203.2 206.1 203.9 207.9 
Excluded anti-dilutive shares— 0.1 — 0.1 
(1)Represents the potential dilutive impact of share-based awards.
v3.24.1.1.u2
Income tax
 9 Months Ended
Apr. 30, 2024
Income Tax Disclosure [Abstract]  
Income tax Income tax
Ferguson manages its affairs so that it is centrally managed and controlled in the U.K. and therefore has its tax residency in the U.K. The provision for income taxes consists of provisions for the U.K. plus non-U.K. tax rate differentials with respect to other locations in which Ferguson’s operations are based. Accordingly, the consolidated income tax rate is a composite rate reflecting earnings in various locations and the applicable rates.
The Company’s tax provision for each period presented was calculated using an estimated annual tax rate, adjusted for discrete items occurring during the applicable period to arrive at an effective tax rate. The effective income tax rates for the relevant periods were as follows:
Three months endedNine months ended
April 30,April 30,
2024202320242023
Effective tax rate23.8 %24.8 %24.7 %24.7 %
During the three and nine months ended April 30, 2024, there have been no material changes to the Company’s unrecognized tax benefits when compared to those items disclosed in the Annual Report.
v3.24.1.1.u2
Debt
 9 Months Ended
Apr. 30, 2024
Debt Disclosure [Abstract]  
Debt Debt
The Company’s debt obligations consisted of the following:
As of
(In millions)April 30, 2024July 31, 2023
Variable-rate debt:
Receivables Facility$— $50 
Term Loan500 500 
Fixed-rate debt:
Private placement notes850 905 
Unsecured senior notes2,350 2,350 
Subtotal$3,700 $3,805 
Less: current maturities of debt(150)(55)
Unamortized discounts and debt issuance costs(19)(22)
Interest rate swap - fair value adjustment(13)(17)
Total long-term debt$3,518 $3,711 
Variable rate debt
The Company maintains a Receivables Securitization Facility (the “Receivables Facility”) that consists of funding for up to $1.1 billion, including a swingline for up to $100 million in same day funding. As of April 30, 2024, no borrowings were outstanding under the Receivables Facility. There was no significant change in interest rates from those disclosed in the Annual Report.
The Company’s Credit Agreement, dated October 7, 2022 (the “Term Loan Agreement”), provides for term loans (“Term Loan”) in an aggregate principal amount of $500 million. There was no significant change in interest rates from those disclosed in the Annual Report.
The Company maintains a revolving credit facility (the “Revolving Facility”) that has aggregate total available credit commitments of $1.35 billion. As of April 30, 2024, no borrowings were outstanding under the Revolving Facility.
Fixed rate debt
In November 2023, the Company repaid $55 million related to the 3.30% private placement notes that matured. In November 2024, an additional $150 million of such notes will mature.
Other
The Company was in compliance with all debt covenants that were in effect as of April 30, 2024.
v3.24.1.1.u2
Assets and liabilities at fair value
 9 Months Ended
Apr. 30, 2024
Fair Value Disclosures [Abstract]  
Assets and liabilities at fair value Assets and liabilities at fair value
The Company has not changed its valuation techniques for measuring fair value of any financial assets or liabilities during the periods presented. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities and other debt instruments, such as the receivables securitization facility and term loans, approximated their fair values as of April 30, 2024 and July 31, 2023.
The Company’s derivatives (interest rate swaps which are considered fair value hedges) and investments in equity instruments are carried at fair value on the condensed consolidated balance sheets (Level 2 and Level 3 fair value inputs, respectively) and are not material. The notional amount of the Company’s outstanding fair value hedges was $300 million and $355 million as of April 30, 2024 and July 31, 2023, respectively. The notional value of fair value hedges decreased in connection with the repayment of $55 million related to the 3.30% private placement notes that matured in November 2023.
Carrying amounts and the related estimated fair value (Level 2) of the Company’s long-term debt were as follows:
April 30, 2024July 31, 2023
(In millions)Carrying AmountFair ValueCarrying AmountFair Value
Unsecured senior notes$2,333 $2,183 $2,330 $2,195 
Private placement notes849 826 904 871 
v3.24.1.1.u2
Commitments and contingencies
 9 Months Ended
Apr. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and contingencies Commitments and contingencies
The Company is, from time to time, involved in various legal proceedings considered to be normal course of business in relation to, among other things, the products that we supply, contractual and commercial disputes and disputes with employees. Provision is made if, on the basis of current information and professional advice, liabilities are considered probable. In the case of unfavorable outcomes, the Company may benefit from applicable insurance protection. The Company does not expect any of its pending legal proceedings to have a material adverse effect on its results of operations, financial position or cash flows.
v3.24.1.1.u2
Accumulated other comprehensive loss
 9 Months Ended
Apr. 30, 2024
Equity [Abstract]  
Accumulated other comprehensive loss Accumulated other comprehensive loss
The change in accumulated other comprehensive loss was as follows:
(In millions, net of tax)Foreign currency translationPensionsTotal
Balance at July 31, 2023
($429)($459)($888)
Other comprehensive loss before reclassifications(35)(2)(37)
Amounts reclassified from accumulated other comprehensive loss— 3 3 
Other comprehensive (loss) income(35)1 (34)
Balance at October 31, 2023(464)(458)(922)
Other comprehensive income before reclassifications21 2 23 
Amounts reclassified from accumulated other comprehensive loss— 2 2 
Other comprehensive income21 4 25 
Balance at January 31, 2024(443)(454)(897)
Other comprehensive loss before reclassifications(19)(1)(20)
Amounts reclassified from accumulated other comprehensive loss— 3 3 
Other comprehensive (loss) income(19)2 (17)
Balance at April 30, 2024
($462)($452)($914)
(In millions, net of tax)Foreign currency translationPensionsTotal
Balance at July 31, 2022
($420)($410)($830)
Other comprehensive loss before reclassifications(36)(3)(39)
Amounts reclassified from accumulated other comprehensive loss— 2 2 
Other comprehensive loss(36)(1)(37)
Balance at October 31, 2022(456)(411)(867)
Other comprehensive income before reclassifications18 6 24 
Amounts reclassified from accumulated other comprehensive loss— 2 2 
Other comprehensive income18 8 26 
Balance at January 31, 2023(438)(403)(841)
Other comprehensive (loss) income before reclassifications(7)2 (5)
Amounts reclassified from accumulated other comprehensive loss— 2 2 
Other comprehensive (loss) income(7)4 (3)
Balance at April 30, 2023
($445)($399)($844)
Amounts reclassified from accumulated other comprehensive loss related to pension and other post-retirement items include the related income tax impacts. Such amounts consisted of the following:
Three months endedNine months ended
April 30,April 30,
(In millions)2024202320242023
Amortization of actuarial losses$4 $2 $11 $8 
Tax benefit(1)— (3)(2)
   Amounts reclassified from accumulated other comprehensive loss$3 $2 $8 $6 
v3.24.1.1.u2
Retirement benefit obligations
 9 Months Ended
Apr. 30, 2024
Retirement Benefits [Abstract]  
Retirement benefit obligations Retirement benefit obligations
The Company maintains pension plans in the U.K. and Canada. The components of net periodic pension cost, which are included in Other expense, net in the condensed consolidated statements of earnings, were as follows:
Three months endedNine months ended
April 30,April 30,
(In millions)2024202320242023
Interest cost($15)($13)($45)($38)
Expected return on plan assets16 12 46 36 
Amortization of net actuarial losses(4)(2)(11)(8)
Net periodic cost($3)($3)($10)($10)
The impact of exchange rate fluctuations is included on the amortization line above.
v3.24.1.1.u2
Shareholders’ equity
 9 Months Ended
Apr. 30, 2024
Equity [Abstract]  
Shareholders’ equity Shareholders’ equity
The following table presents a summary of the Company’s share activity:
Three months endedNine months ended
April 30,April 30,
2024202320242023
Ordinary shares:
Balance at beginning of period232,171,182 232,171,182 232,171,182 232,171,182 
Change in shares issued— — — — 
   Balance at end of period232,171,182 232,171,182 232,171,182 232,171,182 
Treasury shares:
Balance at beginning of period(29,168,420)(25,619,935)(27,893,680)(21,078,577)
Repurchases of ordinary shares(827,205)(1,588,636)(2,319,358)(6,181,156)
Treasury shares used to settle share-based compensation awards1,851 — 219,264 51,162 
   Balance at end of period(29,993,774)(27,208,571)(29,993,774)(27,208,571)
Employee Benefit Trusts:
Balance at beginning of period— (283,604)(274,031)(846,491)
Employee Benefit Trust shares used to settle share-based compensation awards— 7,953 253,212 570,840 
Shares sold upon termination of Employee Benefit Trust— — 20,819 — 
   Balance at end of period— (275,651)— (275,651)
Total shares outstanding at end of period202,177,408 204,686,960 202,177,408 204,686,960 
Two Employee Benefit Trusts had been previously established in connection with the Company’s discretionary share award plans and long-term incentive plans. As of January 31, 2024, each of these trusts had been terminated with all shares disbursed or sold. The proceeds from shares sold upon termination of the Employee Benefit Trusts were $4 million and included in other financing activities in the statement of cash flow.
Share Repurchases
The Company is currently purchasing shares under a revocable purchase arrangement with repurchases recorded directly to treasury shares as incurred. As of April 30, 2024, the Company has completed $2.9 billion of the total announced authorized program.
In June 2024, the Company extended the share repurchase program by an additional $1.0 billion. As such, the Company is currently purchasing shares under an authorization that allows up to $4.0 billion in share repurchases.
v3.24.1.1.u2
Share-based compensation
 9 Months Ended
Apr. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Share-based compensation Share-based compensation
Following adoption by the board of directors of the Company (the “Board”), the Ferguson plc 2023 Omnibus Equity Incentive Plan (the “New Plan”) was approved by the shareholders of the Company at the annual general meeting on November 28, 2023, and became effective as of September 21, 2023, the date of the Board’s adoption of the New Plan. The New Plan provides for the issuance of up to 6,750,000 of the Company’s ordinary shares, subject to the share recycling and adjustment provisions as provided under the New Plan. All new share-based compensation awards granted subsequent to November 28, 2023 will be granted under the New Plan. No new awards will be granted under the Ferguson Group Ordinary Share Plan 2019, Ferguson Group Performance Ordinary Share Plan 2019 or the Ferguson Group Long Term Incentive Plan 2019 (the “Prior Plans”).
The Company grants share-based compensation awards that can be broadly characterized by the underlying vesting conditions as follows:
•Time vested awards (“time vested”) typically vest at the end of three years. The fair value of these awards are based on the closing share price on the date of grant.
•Performance vested awards (“performance vested”) typically vest following three-year performance cycles. The number of ordinary shares issued varies based upon the Company’s performance against an adjusted operating profit measure. The fair value of the award is based on the closing share price on the date of grant.
•Long-term incentive awards granted to Executive Directors (“LTI-ED”) typically vest following three-year performance cycles. The number of ordinary shares issued varies based upon multiple performance metrics as described below.
For LTI-ED awards granted prior to fiscal 2023, the number of ordinary shares to be issued upon vesting will vary based on Company measures of inflation-indexed earnings per share (“EPS”), cash flow and total shareholder return (“TSR”) compared to a peer company set. Based on the performance conditions of these awards granted prior to fiscal 2023, these awards are treated as liability-settled awards. As such, the fair value of these awards are initially determined at the date of grant and are remeasured at each balance sheet date until the liability is settled. Dividend equivalents accrue during the vesting period. As of April 30, 2024 and July 31, 2023, the total liability recorded in connection with these grants was $7 million and $13 million, respectively.
In fiscal 2024 and 2023, the Company granted LTI-ED awards in which the ordinary shares to be issued upon vesting vary based on fixed measures of Company defined EPS and return on capital employed (“ROCE”), as well as TSR compared to a peer company set. Dividend equivalents accrue during the vesting period. Based on the performance conditions of these awards, such grants are treated as equity-settled awards (“LTI-ED, equity-settled”) with the fair value determined on the date of grant. Specifically, the fair value of such awards that vest based on achievement of the EPS and ROCE measures are equal to the closing share price on the date of grant. The fair value of the awards that vest based on TSR were determined using a Monte-Carlo simulation, which estimate the fair value based on the Company's share price activity relative to the peer comparative set over the expected term of the award, risk-free interest rate, expected dividends, and the expected volatility of the shares of the Company and that of the peer company set.
The following table summarizes the share-based compensation awards activity for the nine months ended April 30, 2024:
Number of sharesWeighted average grant date fair value
Outstanding at July 31, 2023
1,158,673 $111.57 
Time vested awards granted112,579 160.82 
Performance vested awards granted209,945 158.16 
LTI-ED, equity-settled awards granted32,050149.37 
Share adjustments based on performance38,178 198.72 
Vested(471,691)98.86 
Forfeited(25,405)126.65 
Outstanding at April 30, 2024
1,054,329 $135.74 
The following table relates to time vested, performance vested and LTI-ED award activity:
Nine months ended
April 30,
(In millions, except per share amounts)2024
Fair value of awards vested$77 
Weighted average grant date fair value per share granted$158.21 
The following table relates to all share-based compensation awards:
Three months endedNine months ended
April 30,April 30,
(In millions)2024202320242023
Share-based compensation expense (within SG&A)$15 $11 $39 $38 
Income tax benefit4 3 10 10 
The total unrecognized share-based compensation expense at April 30, 2024 was $62 million and is expected to be recognized over a weighted average period of 2.1 years.
v3.24.1.1.u2
Acquisitions
 9 Months Ended
Apr. 30, 2024
Business Combination and Asset Acquisition [Abstract]  
Acquisitions Acquisitions
The Company acquired six businesses during the nine months ended April 30, 2024. Each of the acquired businesses is engaged in the distribution of plumbing, HVAC and infrastructure related products and was acquired to support growth. In each of the Company’s acquisitions, the Company has substantially purchased the acquiree's business and therefore all transactions have been accounted for as a business combination pursuant to FASB Accounting Standards Codification (ASC) 805.
The following table summarizes the preliminary purchase price allocation for the assets acquired and liabilities assumed in regards to the Company's acquisitions:
(In millions)
Intangible assets:
Trade names and brands$5 
Customer relationships81 
Other5 
Cash and cash equivalents1 
Trade and other receivables33 
Inventories35 
Property, plant and equipment3 
Right of use assets12 
Trade and other payables(28)
Lease liabilities(12)
Deferred tax(3)
Other(2)
Total130 
Goodwill92 
Consideration$222 
Satisfied by:
Cash$186 
Deferred & other consideration36 
Total consideration$222 
The fair values of the net assets acquired are considered preliminary and are based on management’s best estimates. Further adjustments may be necessary in connection with acquisitions completed in a prior period when additional information becomes available about events that existed at the date of acquisition. Amendments to fair value estimates may be made to these figures during the measurement period following the date of acquisition. There were no material adjustments in the current fiscal year that related to the closing of the measurement period of acquisitions made in the prior fiscal year. As of the date of this Quarterly Report, the Company has made all known material adjustments related to acquisitions in fiscal 2024.
The fair value estimates of intangible assets are considered non-recurring, Level 3 measurements within the fair value hierarchy and are estimated as of each respective acquisition date.
The goodwill on these acquisitions is attributable to the anticipated profitability of the new markets and product ranges to which the Company has gained access and additional profitability, operating efficiencies and other synergies available in connection with existing markets. Goodwill acquired during the nine months ended April 30, 2024 that was attributed to the United States and Canada segments were $55 million and $37 million, respectively. Goodwill that is expected to be deductible for tax purposes is $79 million.
Deferred consideration represents the expected payout due to certain sellers of acquired businesses that is subject to either 1) a contractual settle-up period or 2) a contingency related to contractually defined performance metrics. If the deferred consideration is contingent on achieving performance metrics, the liability is estimated using assumptions regarding the expectations of an acquiree’s ability to achieve the contractually defined performance metrics over a period of time that typically spans one to three years. When ultimately paid, deferred consideration is reported as a cash outflow from financing activities.
The businesses acquired during the year-to-date period of fiscal 2024 contributed $53 million to net sales and $4 million in losses to the Company’s income before income tax, including acquired intangible asset amortization, transaction and integration costs for the period between the applicable date of acquisition and April 30, 2024. Acquisition costs during the nine months ended April 30, 2024 were not material. Acquisition costs are expensed as incurred and included in SG&A in the Company’s consolidated statements of earnings.
The net outflow of cash related to business acquisitions is as follows:  
Nine months ended
(In millions)April 30, 2024
Purchase consideration$186 
Cash, cash equivalents and bank overdrafts acquired(1)
Cash consideration paid, net of cash acquired185 
Deferred and contingent consideration(1)
26 
Net cash outflow in respect of the purchase of businesses$211 
(1) Included in other financing activities in the Condensed Consolidated Statements of Cash Flows.
Pro forma disclosures
If each acquisition had been completed on the first day of the prior fiscal year, the Company’s unaudited pro forma net sales would have been:
Three months endedNine months ended
April 30,April 30,
(In millions)2024202320242023
Pro forma net sales$7,328 $7,213 $21,848 $22,107 
The impact on income before income tax, including additional amortization, transaction costs and integration costs would not be material in the three and nine months ended April 30, 2024 and 2023.
These unaudited pro forma results do not necessarily represent financial results that would have been achieved had the acquisition actually occurred at the beginning of the prior fiscal year.
v3.24.1.1.u2
Related party transactions
 9 Months Ended
Apr. 30, 2024
Related Party Transactions [Abstract]  
Related party transactions Related party transactions
For the nine months ended April 30, 2024, the Company purchased $8 million of delivery, installation and related administrative services from a company that is, or is an indirect wholly-owned subsidiary of a company that is, controlled or significantly influenced by a Ferguson Non-Employee Director. In the three and nine months ended April 30, 2023, the Company purchased $9 million and $22 million, respectively, of such services. These services were purchased on an arm’s-length basis. In December 2023, this related party relationship ended. As a result, in the three months ended April 30, 2024 we did not have, nor do we expect in the future to have, any services provided by this company which would constitute a related party transaction. No material amounts are due to any related party entities.
v3.24.1.1.u2
Subsequent Events
 9 Months Ended
Apr. 30, 2024
Subsequent Events [Abstract]  
Subsequent event Subsequent event
The Company held a Special Meeting on May 30, 2024 at which the Company’s shareholders voted on the establishment of a new corporate structure to domicile the Company’s ultimate parent company in the United States and other related governance matters. Shareholders approved the transaction and, subject to the satisfaction of the conditions to the completion of the transaction, the effective date is expected to be August 1, 2024.
v3.24.1.1.u2
Summary of significant accounting policies (Policies)
 9 Months Ended
Apr. 30, 2024
Accounting Policies [Abstract]  
Basis of presentation
Basis of presentation
The accompanying unaudited condensed consolidated financial statements and notes to the condensed consolidated financial statements are presented in accordance with the rules and regulations of the SEC and accounting principles generally accepted in the United States of America (“U.S. GAAP”), but do not include all disclosures normally required in annual consolidated financial statements. In the opinion of management, the unaudited condensed consolidated financial statements contain all normal recurring adjustments necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented. The July 31, 2023 condensed consolidated balance sheet was derived from the audited financial statements.
For the nine months ended April 30, 2023 and to conform to current period presentation, the Company has disaggregated the total change in income taxes within the cash flows from operating activities to reflect the changes in deferred income taxes separately from the changes in income taxes payable.
These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Annual Report. The financial results for the interim periods may not be indicative of the financial results for the entire fiscal year.
Use of estimates
Use of estimates
The preparation of the Company's interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions affecting certain reported amounts. Actual results may differ from those estimates.
Cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash
Cash and cash equivalents include cash on hand, deposits with banks with original maturities of three months or less and overdrafts to the extent there is a legal right of offset and practice of net settlement with cash balances.
Restricted cash primarily consists of deferred consideration for business combinations, subject to various settlement agreements, and is recorded in prepaid and other current assets in the Company’s condensed consolidated balance sheets.
Supplier finance program
Supplier finance program
In October 2023, the Company began a supplier financing program with a third party wherein certain shipping and logistics providers in the United States can opt to receive early payment at a nominal discount. The Company’s standard payment terms under this program is 45 days. All outstanding payables related to the supplier finance program are classified within accounts payable within our unaudited consolidated balance sheets and were $49 million as of April 30, 2024.
Recently issued accounting standard updates (“ASU”)
Recently issued accounting standard updates (“ASU”)
In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This ASU expands public entities’ required segment disclosures, including disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items and interim disclosures of a reportable segment’s profit or loss and assets. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of adopting this ASU on its disclosures.
In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This ASU provides qualitative and quantitative updates to the rate reconciliation and income taxes paid disclosures, among others, in order to enhance the transparency of income tax disclosures, including consistent categories and greater disaggregation of information in the rate reconciliation and disaggregation by jurisdiction of income taxes paid. The amendments in this ASU are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied prospectively; however, retrospective application is also permitted. The Company is currently evaluating the ASU to determine the impact on its disclosures.
Recent accounting pronouncements pending adoption that are not discussed above are either not applicable, or will not have, or are not expected to have, a material impact on our consolidated financial condition, results of operations, cash flows or related disclosures.
Legal matters
The Company is, from time to time, involved in various legal proceedings considered to be normal course of business in relation to, among other things, the products that we supply, contractual and commercial disputes and disputes with employees. Provision is made if, on the basis of current information and professional advice, liabilities are considered probable. In the case of unfavorable outcomes, the Company may benefit from applicable insurance protection. The Company does not expect any of its pending legal proceedings to have a material adverse effect on its results of operations, financial position or cash flows.
v3.24.1.1.u2
Summary of significant accounting policies (Tables)
 9 Months Ended
Apr. 30, 2024
Accounting Policies [Abstract]  
Schedule of Cash and Cash Equivalents
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets compared with amounts shown in the condensed consolidated statements of cash flows.
As of
(In millions)April 30, 2024July 31, 2023
Cash and cash equivalents$691 $601 
Restricted cash64 68 
Total cash, cash equivalents and restricted cash$755 $669 
v3.24.1.1.u2
Revenue and segment information (Tables)
 9 Months Ended
Apr. 30, 2024
Segment Reporting [Abstract]  
Schedule of Segment Reporting
Segment details were as follows:
Three months endedNine months ended
April 30,April 30,
(In millions)2024202320242023
Net sales:
United States$6,974 $6,827 $20,667 $20,863 
Canada334 313 1,022 1,033 
Total net sales$7,308 $7,140 $21,689 $21,896 
Adjusted operating profit:
United States$685 $664 $1,976 $2,088 
Canada6 7 38 54 
Central and other costs(17)(14)(47)(39)
Corporate restructurings(1)
(12)— (20)— 
Impairments and other charges(2)
— (127)— (127)
Amortization of acquired intangible assets(37)(33)(106)(99)
Interest expense, net(43)(48)(132)(136)
Other expense, net(1)(2)(4)(7)
Income before income taxes$581 $447 $1,705 $1,734 
(1)For the three and nine months ended April 30, 2024, corporate restructuring costs related to incremental costs in connection with establishing a new corporate structure to domicile our ultimate parent company in the United States.
(2)For the three and nine months ended April 30, 2023, impairments and other charges related to the $107 million in software impairment charges in the United States, as well as charges associated with the closure of certain smaller, underperforming branches in the United States.
The disaggregated net sales by end market are as follows:
Three months endedNine months ended
April 30,April 30,
(In millions)2024202320242023
United States:
Residential$3,552 $3,534 $10,591 $10,956 
Non-residential:
Commercial2,337 2,231 6,929 6,764 
Civil/Infrastructure599 567 1,740 1,713 
Industrial486 495 1,407 1,430 
Total Non-residential3,422 3,293 10,076 9,907 
Total United States6,974 6,827 20,667 20,863 
Canada334 313 1,022 1,033 
Total net sales$7,308 $7,140 $21,689 $21,896 
v3.24.1.1.u2
Weighted average shares (Tables)
 9 Months Ended
Apr. 30, 2024
Earnings Per Share [Abstract]  
Schedule of Weighted Average Shares, Basic and Diluted
The following table presents the reconciliation of our basic to diluted weighted average number of shares outstanding:
Three months endedNine months ended
April 30,April 30,
(In millions)2024202320242023
   Basic weighted average shares202.6 205.4 203.3 207.1 
   Effect of dilutive shares(1)
0.6 0.7 0.6 0.8 
   Diluted weighted average shares203.2 206.1 203.9 207.9 
Excluded anti-dilutive shares— 0.1 — 0.1 
(1)Represents the potential dilutive impact of share-based awards.
v3.24.1.1.u2
Income tax (Tables)
 9 Months Ended
Apr. 30, 2024
Income Tax Disclosure [Abstract]  
Schedule of Reconciliation of Income Tax Expense The effective income tax rates for the relevant periods were as follows:
Three months endedNine months ended
April 30,April 30,
2024202320242023
Effective tax rate23.8 %24.8 %24.7 %24.7 %
v3.24.1.1.u2
Debt (Tables)
 9 Months Ended
Apr. 30, 2024
Debt Disclosure [Abstract]  
Schedule of Debt
The Company’s debt obligations consisted of the following:
As of
(In millions)April 30, 2024July 31, 2023
Variable-rate debt:
Receivables Facility$— $50 
Term Loan500 500 
Fixed-rate debt:
Private placement notes850 905 
Unsecured senior notes2,350 2,350 
Subtotal$3,700 $3,805 
Less: current maturities of debt(150)(55)
Unamortized discounts and debt issuance costs(19)(22)
Interest rate swap - fair value adjustment(13)(17)
Total long-term debt$3,518 $3,711 
v3.24.1.1.u2
Assets and liabilities at fair value (Tables)
 9 Months Ended
Apr. 30, 2024
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Recorded at Fair Value
Carrying amounts and the related estimated fair value (Level 2) of the Company’s long-term debt were as follows:
April 30, 2024July 31, 2023
(In millions)Carrying AmountFair ValueCarrying AmountFair Value
Unsecured senior notes$2,333 $2,183 $2,330 $2,195 
Private placement notes849 826 904 871 
v3.24.1.1.u2
Accumulated other comprehensive loss (Tables)
 9 Months Ended
Apr. 30, 2024
Equity [Abstract]  
Schedule of Accumulated Other Comprehensive Loss
The change in accumulated other comprehensive loss was as follows:
(In millions, net of tax)Foreign currency translationPensionsTotal
Balance at July 31, 2023
($429)($459)($888)
Other comprehensive loss before reclassifications(35)(2)(37)
Amounts reclassified from accumulated other comprehensive loss— 3 3 
Other comprehensive (loss) income(35)1 (34)
Balance at October 31, 2023(464)(458)(922)
Other comprehensive income before reclassifications21 2 23 
Amounts reclassified from accumulated other comprehensive loss— 2 2 
Other comprehensive income21 4 25 
Balance at January 31, 2024(443)(454)(897)
Other comprehensive loss before reclassifications(19)(1)(20)
Amounts reclassified from accumulated other comprehensive loss— 3 3 
Other comprehensive (loss) income(19)2 (17)
Balance at April 30, 2024
($462)($452)($914)
(In millions, net of tax)Foreign currency translationPensionsTotal
Balance at July 31, 2022
($420)($410)($830)
Other comprehensive loss before reclassifications(36)(3)(39)
Amounts reclassified from accumulated other comprehensive loss— 2 2 
Other comprehensive loss(36)(1)(37)
Balance at October 31, 2022(456)(411)(867)
Other comprehensive income before reclassifications18 6 24 
Amounts reclassified from accumulated other comprehensive loss— 2 2 
Other comprehensive income18 8 26 
Balance at January 31, 2023(438)(403)(841)
Other comprehensive (loss) income before reclassifications(7)2 (5)
Amounts reclassified from accumulated other comprehensive loss— 2 2 
Other comprehensive (loss) income(7)4 (3)
Balance at April 30, 2023
($445)($399)($844)
Schedule of Reclassification Out of Accumulated Other Comprehensive Income
Amounts reclassified from accumulated other comprehensive loss related to pension and other post-retirement items include the related income tax impacts. Such amounts consisted of the following:
Three months endedNine months ended
April 30,April 30,
(In millions)2024202320242023
Amortization of actuarial losses$4 $2 $11 $8 
Tax benefit(1)— (3)(2)
   Amounts reclassified from accumulated other comprehensive loss$3 $2 $8 $6 
v3.24.1.1.u2
Retirement benefit obligations (Tables)
 9 Months Ended
Apr. 30, 2024
Retirement Benefits [Abstract]  
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets The components of net periodic pension cost, which are included in Other expense, net in the condensed consolidated statements of earnings, were as follows:
Three months endedNine months ended
April 30,April 30,
(In millions)2024202320242023
Interest cost($15)($13)($45)($38)
Expected return on plan assets16 12 46 36 
Amortization of net actuarial losses(4)(2)(11)(8)
Net periodic cost($3)($3)($10)($10)
v3.24.1.1.u2
Shareholders’ equity (Tables)
 9 Months Ended
Apr. 30, 2024
Equity [Abstract]  
Schedule of Share Activity
The following table presents a summary of the Company’s share activity:
Three months endedNine months ended
April 30,April 30,
2024202320242023
Ordinary shares:
Balance at beginning of period232,171,182 232,171,182 232,171,182 232,171,182 
Change in shares issued— — — — 
   Balance at end of period232,171,182 232,171,182 232,171,182 232,171,182 
Treasury shares:
Balance at beginning of period(29,168,420)(25,619,935)(27,893,680)(21,078,577)
Repurchases of ordinary shares(827,205)(1,588,636)(2,319,358)(6,181,156)
Treasury shares used to settle share-based compensation awards1,851 — 219,264 51,162 
   Balance at end of period(29,993,774)(27,208,571)(29,993,774)(27,208,571)
Employee Benefit Trusts:
Balance at beginning of period— (283,604)(274,031)(846,491)
Employee Benefit Trust shares used to settle share-based compensation awards— 7,953 253,212 570,840 
Shares sold upon termination of Employee Benefit Trust— — 20,819 — 
   Balance at end of period— (275,651)— (275,651)
Total shares outstanding at end of period202,177,408 204,686,960 202,177,408 204,686,960 
v3.24.1.1.u2
Share-based compensation (Tables)
 9 Months Ended
Apr. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of Award Activity
The following table summarizes the share-based compensation awards activity for the nine months ended April 30, 2024:
Number of sharesWeighted average grant date fair value
Outstanding at July 31, 2023
1,158,673 $111.57 
Time vested awards granted112,579 160.82 
Performance vested awards granted209,945 158.16 
LTI-ED, equity-settled awards granted32,050149.37 
Share adjustments based on performance38,178 198.72 
Vested(471,691)98.86 
Forfeited(25,405)126.65 
Outstanding at April 30, 2024
1,054,329 $135.74 
The following table relates to time vested, performance vested and LTI-ED award activity:
Nine months ended
April 30,
(In millions, except per share amounts)2024
Fair value of awards vested$77 
Weighted average grant date fair value per share granted$158.21 
Schedule of Share-Based Compensation Awards
The following table relates to all share-based compensation awards:
Three months endedNine months ended
April 30,April 30,
(In millions)2024202320242023
Share-based compensation expense (within SG&A)$15 $11 $39 $38 
Income tax benefit4 3 10 10 
v3.24.1.1.u2
Acquisitions (Tables)
 9 Months Ended
Apr. 30, 2024
Business Combination and Asset Acquisition [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
The following table summarizes the preliminary purchase price allocation for the assets acquired and liabilities assumed in regards to the Company's acquisitions:
(In millions)
Intangible assets:
Trade names and brands$5 
Customer relationships81 
Other5 
Cash and cash equivalents1 
Trade and other receivables33 
Inventories35 
Property, plant and equipment3 
Right of use assets12 
Trade and other payables(28)
Lease liabilities(12)
Deferred tax(3)
Other(2)
Total130 
Goodwill92 
Consideration$222 
Satisfied by:
Cash$186 
Deferred & other consideration36 
Total consideration$222 
Schedule of Businesses Acquired
The net outflow of cash related to business acquisitions is as follows:  
Nine months ended
(In millions)April 30, 2024
Purchase consideration$186 
Cash, cash equivalents and bank overdrafts acquired(1)
Cash consideration paid, net of cash acquired185 
Deferred and contingent consideration(1)
26 
Net cash outflow in respect of the purchase of businesses$211 
(1) Included in other financing activities in the Condensed Consolidated Statements of Cash Flows.
Schedule of Business Acquisition, Pro Forma Information
If each acquisition had been completed on the first day of the prior fiscal year, the Company’s unaudited pro forma net sales would have been:
Three months endedNine months ended
April 30,April 30,
(In millions)2024202320242023
Pro forma net sales$7,328 $7,213 $21,848 $22,107 
v3.24.1.1.u2
Summary of significant accounting policies - Cash and Cash Equivalents (Details) - USD ($)
$ in Millions
Apr. 30, 2024
Jul. 31, 2023
Accounting Policies [Abstract]    
Cash and cash equivalents $ 691 $ 601
Restricted cash 64 68
Total cash, cash equivalents and restricted cash $ 755 $ 669
v3.24.1.1.u2
Summary of significant accounting policies - Narrative (Details)
$ in Millions
Apr. 30, 2024
USD ($)
Accounting Policies [Abstract]  
Supplier finance program, payment timing, period 45 days
Supplier finance program, obligation, current $ 49
v3.24.1.1.u2
Revenue and segment information - Narrative (Details)
 9 Months Ended
Apr. 30, 2024
segment
Segment Reporting [Abstract]  
Number of reportable segments 2
v3.24.1.1.u2
Revenue and segment information - Items not Allocated (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Apr. 30, 2024
Apr. 30, 2023
Apr. 30, 2024
Apr. 30, 2023
Net sales:        
Total net sales $ 7,308 $ 7,140 $ 21,689 $ 21,896
Adjusted operating profit:        
Central and other costs (17) (14) (47) (39)
Impairments and other charges 0 (127) 0 (127)
Amortization of acquired intangible assets (37) (33) (106) (99)
Interest expense, net (43) (48) (132) (136)
Other expense, net (1) (2) (4) (7)
Income before income taxes 581 447 1,705 1,734
Software impairment charges   107   107
Corporate restructurings        
Adjusted operating profit:        
Corporate restructurings (12) 0 (20) 0
United States        
Net sales:        
Total net sales 6,974 6,827 20,667 20,863
Adjusted operating profit:        
Adjusted operating profit: 685 664 1,976 2,088
Canada        
Net sales:        
Total net sales 334 313 1,022 1,033
Adjusted operating profit:        
Adjusted operating profit: $ 6 $ 7 $ 38 $ 54
v3.24.1.1.u2
Revenue and segment information - Disaggregation of Net Sales (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Apr. 30, 2024
Apr. 30, 2023
Apr. 30, 2024
Apr. 30, 2023
Segment Reporting Information [Line Items]        
Total net sales $ 7,308 $ 7,140 $ 21,689 $ 21,896
United States        
Segment Reporting Information [Line Items]        
Total net sales 6,974 6,827 20,667 20,863
Canada        
Segment Reporting Information [Line Items]        
Total net sales 334 313 1,022 1,033
Residential | United States        
Segment Reporting Information [Line Items]        
Total net sales 3,552 3,534 10,591 10,956
Non-residential: | United States        
Segment Reporting Information [Line Items]        
Total net sales 3,422 3,293 10,076 9,907
Commercial | United States        
Segment Reporting Information [Line Items]        
Total net sales 2,337 2,231 6,929 6,764
Civil/Infrastructure | United States        
Segment Reporting Information [Line Items]        
Total net sales 599 567 1,740 1,713
Industrial | United States        
Segment Reporting Information [Line Items]        
Total net sales $ 486 $ 495 $ 1,407 $ 1,430
v3.24.1.1.u2
Weighted average shares (Details) - shares
shares in Millions
 3 Months Ended 9 Months Ended
Apr. 30, 2024
Apr. 30, 2023
Apr. 30, 2024
Apr. 30, 2023
Earnings Per Share [Abstract]        
Basic weighted-average shares (in shares) 202.6 205.4 203.3 207.1
Effect of dilutive shares (in shares) 0.6 0.7 0.6 0.8
Diluted weighted-average shares (in shares) 203.2 206.1 203.9 207.9
Excluded anti-dilutive shares (in shares) 0.0 0.1 0.0 0.1
v3.24.1.1.u2
Income tax - Schedule of Effective Income Tax Rate (Details)
 3 Months Ended 9 Months Ended
Apr. 30, 2024
Apr. 30, 2023
Apr. 30, 2024
Apr. 30, 2023
Income Tax Disclosure [Abstract]        
Effective tax rate 23.80% 24.80% 24.70% 24.70%
v3.24.1.1.u2
Debt - Schedule of Debt (Details) - USD ($)
$ in Millions
Apr. 30, 2024
Jul. 31, 2023
Oct. 07, 2022
Debt Instrument [Line Items]      
Subtotal $ 3,700 $ 3,805  
Less: current maturities of debt (150) (55)  
Unamortized discounts and debt issuance costs (19) (22)  
Interest rate swap - fair value adjustment (13) (17)  
Total long-term debt 3,518 3,711  
Receivables Facility | Receivables Facility      
Debt Instrument [Line Items]      
Subtotal 0 50  
Term Loan | Term Loan      
Debt Instrument [Line Items]      
Subtotal 500 500 $ 500
Private placement notes | Private placement notes      
Debt Instrument [Line Items]      
Subtotal 850 905  
Unsecured senior notes | Unsecured senior notes      
Debt Instrument [Line Items]      
Subtotal $ 2,350 $ 2,350  
v3.24.1.1.u2
Debt - Narrative (Details) - USD ($)
 1 Months Ended 9 Months Ended
Nov. 30, 2024
Nov. 30, 2023
Apr. 30, 2024
Apr. 30, 2023
Jul. 31, 2023
Oct. 07, 2022
Schedule Of Long-Term And Short-Term Debt [Line Items]            
Term loan principal amount     $ 3,700,000,000   $ 3,805,000,000  
Repayments of debt     1,480,000,000 $ 2,280,000,000    
Line of Credit | Revolving Credit Facility            
Schedule Of Long-Term And Short-Term Debt [Line Items]            
Line of credit facility     1,350,000,000      
Borrowings outstanding     0      
Receivables Facility | Receivables Facility            
Schedule Of Long-Term And Short-Term Debt [Line Items]            
Debt instrument, face amount     1,100,000,000      
Swingline adjustment     100,000,000      
Term loan principal amount     0      
Term Loan | Term Loan            
Schedule Of Long-Term And Short-Term Debt [Line Items]            
Term loan principal amount     $ 500,000,000   $ 500,000,000 $ 500,000,000
Private placement notes | Private placement notes            
Schedule Of Long-Term And Short-Term Debt [Line Items]            
Repayments of debt   $ 55,000,000        
Interest rate (in percent)   3.30%        
Private placement notes, 2024 | Private placement notes | Forecast            
Schedule Of Long-Term And Short-Term Debt [Line Items]            
Repayments of debt $ 150,000,000          
v3.24.1.1.u2
Assets and liabilities at fair value - Narrative (Details) - USD ($)
$ in Millions
 1 Months Ended 9 Months Ended
Nov. 30, 2023
Apr. 30, 2024
Apr. 30, 2023
Jul. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Hedged liability, fair value hedge   $ 300   $ 355
Repayments of debt   $ 1,480 $ 2,280  
Private placement notes | Private placement notes        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Repayments of debt $ 55      
Interest rate (in percent) 3.30%      
v3.24.1.1.u2
Assets and liabilities at fair value -Debt Measured at Fair Value (Details) - Level 2 - USD ($)
$ in Millions
Apr. 30, 2024
Jul. 31, 2023
Unsecured senior notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Carrying Amount $ 2,333 $ 2,330
Fair Value 2,183 2,195
Private placement notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Carrying Amount 849 904
Fair Value $ 826 $ 871
v3.24.1.1.u2
Accumulated other comprehensive loss - Change in AOCI (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Apr. 30, 2024
Jan. 31, 2024
Oct. 31, 2023
Apr. 30, 2023
Jan. 31, 2023
Oct. 31, 2022
Apr. 30, 2024
Apr. 30, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]                
Beginning balance $ 5,418   $ 5,037 $ 4,725   $ 4,665 $ 5,037 $ 4,665
Other comprehensive (loss) income before reclassifications (20) $ 23 (37) (5) $ 24 (39)    
Amounts reclassified from accumulated other comprehensive loss 3 2 3 2 2 2    
Total other comprehensive loss, net of tax: (17) 25 (34) (3) 26 (37) (26) (14)
Ending balance 5,522 5,418   4,721 4,725   5,522 4,721
AOCI Attributable to Parent                
AOCI Attributable to Parent, Net of Tax [Roll Forward]                
Beginning balance (897) (922) (888) (841) (867) (830) (888) (830)
Total other comprehensive loss, net of tax: (17)     (3)     (26) (14)
Ending balance (914) (897) (922) (844) (841) (867) (914) (844)
Foreign currency translation                
AOCI Attributable to Parent, Net of Tax [Roll Forward]                
Beginning balance (443) (464) (429) (438) (456) (420) (429) (420)
Other comprehensive (loss) income before reclassifications (19) 21 (35) (7) 18 (36)    
Amounts reclassified from accumulated other comprehensive loss 0 0 0 0 0 0    
Total other comprehensive loss, net of tax: (19) 21 (35) (7) 18 (36)    
Ending balance (462) (443) (464) (445) (438) (456) (462) (445)
Pensions                
AOCI Attributable to Parent, Net of Tax [Roll Forward]                
Beginning balance (454) (458) (459) (403) (411) (410) (459) (410)
Other comprehensive (loss) income before reclassifications (1) 2 (2) 2 6 (3)    
Amounts reclassified from accumulated other comprehensive loss 3 2 3 2 2 2    
Total other comprehensive loss, net of tax: 2 4 1 4 8 (1)    
Ending balance $ (452) $ (454) $ (458) $ (399) $ (403) $ (411) $ (452) $ (399)
v3.24.1.1.u2
Accumulated other comprehensive loss - Reclassification Out of AOCI (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Apr. 30, 2024
Apr. 30, 2023
Apr. 30, 2024
Apr. 30, 2023
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Tax benefit $ 138 $ 111 $ 421 $ 429
Net income (443) (336) (1,284) (1,305)
Reclassification out of Accumulated Other Comprehensive Income | Employee Benefit Trusts        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Amortization of actuarial losses 4 2 11 8
Tax benefit (1) 0 (3) (2)
Net income $ 3 $ 2 $ 8 $ 6
v3.24.1.1.u2
Retirement benefit obligations - Net Periodic Cost (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Apr. 30, 2024
Apr. 30, 2023
Apr. 30, 2024
Apr. 30, 2023
Retirement Benefits [Abstract]        
Interest cost $ (15) $ (13) $ (45) $ (38)
Expected return on plan assets 16 12 46 36
Amortization of net actuarial losses (4) (2) (11) (8)
Net periodic cost $ (3) $ (3) $ (10) $ (10)
v3.24.1.1.u2
Shareholders’ equity - Schedule of Share Activity (Details) - shares
 3 Months Ended 9 Months Ended
Apr. 30, 2024
Apr. 30, 2023
Apr. 30, 2024
Apr. 30, 2023
Jan. 31, 2024
Jul. 31, 2023
Jan. 31, 2023
Jul. 31, 2022
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Balance at beginning of period (in shares)     232,171,182          
Treasury stock, beginning balance (in shares) (29,993,774)   (29,993,774)     (27,893,680)    
Treasury stock, ending balance (in shares) (29,993,774)   (29,993,774)          
Balance at end of period (in shares) 232,171,182   232,171,182          
Total shares outstanding at end of period (in shares) 202,177,408 204,686,960 202,177,408 204,686,960        
Ordinary Shares                
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Balance at beginning of period (in shares) 232,171,182 232,171,182 232,171,182 232,171,182        
Change in shares issued (in shares) 0 0 0 0        
Balance at end of period (in shares) 232,171,182 232,171,182 232,171,182 232,171,182        
Treasury Shares                
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Treasury stock, beginning balance (in shares) (29,993,774) (27,208,571) (29,993,774) (27,208,571) (29,168,420) (27,893,680) (25,619,935) (21,078,577)
Repurchases of ordinary shares (in shares) (827,205) (1,588,636) (2,319,358) (6,181,156)        
Treasury shares used to settle share-based compensation awards (in shares) 1,851 0 219,264 51,162        
Treasury stock, ending balance (in shares) (29,993,774) (27,208,571) (29,993,774) (27,208,571)        
Employee Benefit Trusts                
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Balance at beginning of period (in shares) 0 283,604 274,031 846,491        
Employee Benefit Trust shares used to settle share-based compensation awards (in shares) 0 7,953 253,212 570,840        
Shares sold upon termination of Employee Benefit Trust (in shares) 0 0 20,819 0        
Balance at end of period (in shares) 0 275,651 0 275,651        
v3.24.1.1.u2
Shareholders’ equity - Narrative (Details)
$ in Millions
 9 Months Ended 32 Months Ended
Apr. 30, 2024
USD ($)
trust
Apr. 30, 2023
USD ($)
Apr. 30, 2024
USD ($)
Jun. 05, 2024
USD ($)
Class of Stock [Line Items]        
Number of employee benefit trusts | trust 2      
Proceeds from shares sold in period $ 4   $ 4  
Purchase of treasury shares $ 421 $ 784 $ 2,900  
Subsequent Event        
Class of Stock [Line Items]        
Stock repurchase program, authorized amount, increase       $ 1,000
Authorized stock to repurchased       $ 4,000
v3.24.1.1.u2
Share-based compensation - Narrative (Details) - USD ($)
$ in Millions
 9 Months Ended
Apr. 30, 2024
Sep. 21, 2023
Jul. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Share based payment, cost not yet recognized $ 62    
Share based payment, cost not yet recognized, period for recognition (in years) 2 years 1 month 6 days    
2023 Omnibus Equity Incentive Plan      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Number of shares authorized (in shares)   6,750,000  
Time vested awards granted      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Share based compensation, award vesting period (in years) 3 years    
Performance vested awards granted      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Share based compensation, award vesting period (in years) 3 years    
LTI-ED, equity-settled awards granted      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Share based compensation, award vesting period (in years) 3 years    
Employee Stock | Ferguson Group Long-Term Incentive Plan      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Liability in connection with grants $ 7   $ 13
v3.24.1.1.u2
Share-based compensation - Schedule of Awards (Details)
 9 Months Ended
Apr. 30, 2024
$ / shares
shares
Number of shares  
Beginning Balance Outstanding (in shares) | shares 1,158,673
Vested (in shares) | shares (471,691)
Forfeited (in shares) | shares (25,405)
Ending Balance Outstanding (in shares) | shares 1,054,329
Weighted average grant date fair value  
Outstanding, Weighted average grant date fair value, Beginning Balance (in usd per share) | $ / shares $ 111.57
Vested, Weighted average grant date fair value (in usd per share) | $ / shares 98.86
Forfeited, Weighted average grant date fair value (in usd per share) | $ / shares 126.65
Outstanding, Weighted average grant date fair value, Ending Balance (in usd per share) | $ / shares $ 135.74
Time vested awards granted  
Number of shares  
Grants (in shares) | shares 112,579
Weighted average grant date fair value  
Granted, Weighted average grant date fair value (in usd per share) | $ / shares $ 160.82
Performance vested awards granted  
Number of shares  
Grants (in shares) | shares 209,945
Weighted average grant date fair value  
Granted, Weighted average grant date fair value (in usd per share) | $ / shares $ 158.16
LTI-ED, equity-settled awards granted  
Number of shares  
Grants (in shares) | shares 32,050
Weighted average grant date fair value  
Granted, Weighted average grant date fair value (in usd per share) | $ / shares $ 149.37
Share adjustments based on performance  
Number of shares  
Share adjustments based on performance (in shares) | shares 38,178
Weighted average grant date fair value  
Share adjustments based on performance, Weighted average grant date fair value (in usd per share) | $ / shares $ 198.72
v3.24.1.1.u2
Share-based compensation - Summary of Time Vested, Performance Vested and Long-Term Incentive Awards (Details)
$ / shares in Units, $ in Millions
 9 Months Ended
Apr. 30, 2024
USD ($)
$ / shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Fair value of awards vested | $ $ 77
Time Vested, Performance Vested, and Long Term Incentive Awards  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Weighted-average grant date fair value per share granted (in usd per share) | $ / shares $ 158.21
v3.24.1.1.u2
Share-based compensation - Schedule of Expense (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Apr. 30, 2024
Apr. 30, 2023
Apr. 30, 2024
Apr. 30, 2023
Share-Based Payment Arrangement [Abstract]        
Share-based compensation expense (within SG&A) $ 15 $ 11 $ 39 $ 38
Income tax benefit $ 4 $ 3 $ 10 $ 10
v3.24.1.1.u2
Acquisitions - Narrative (Details)
$ in Millions
 9 Months Ended
Apr. 30, 2024
USD ($)
business
Business Acquisition [Line Items]  
Number of businesses acquired | business 6
Goodwill $ 92
Goodwill, expected tax deductible amount 79
Revenue since acquisition date 53
Loss since acquisition date 4
United States  
Business Acquisition [Line Items]  
Goodwill 55
Canada  
Business Acquisition [Line Items]  
Goodwill $ 37
Minimum  
Business Acquisition [Line Items]  
Service period (in years) 1 year
Maximum  
Business Acquisition [Line Items]  
Service period (in years) 3 years
v3.24.1.1.u2
Acquisitions - Schedule of Assets and Liabilities Acquired (Details)
$ in Millions
 9 Months Ended
Apr. 30, 2024
USD ($)
Business Acquisition [Line Items]  
Cash and cash equivalents $ 1
Trade and other receivables 33
Inventories 35
Property, plant and equipment 3
Right of use assets 12
Trade and other payables (28)
Lease liabilities (12)
Deferred tax (3)
Other (2)
Total 130
Goodwill 92
Total consideration 222
Cash 186
Deferred & other consideration 36
Trade names and brands  
Business Acquisition [Line Items]  
Intangible assets: 5
Customer relationships  
Business Acquisition [Line Items]  
Intangible assets: 81
Other  
Business Acquisition [Line Items]  
Intangible assets: $ 5
v3.24.1.1.u2
Acquisitions - Net Cash Outflow (Details) - USD ($)
$ in Millions
 9 Months Ended
Apr. 30, 2024
Apr. 30, 2023
Business Combination and Asset Acquisition [Abstract]    
Purchase consideration $ 186  
Cash, cash equivalents and bank overdrafts acquired (1)  
Cash consideration paid, net of cash acquired 185 $ 179
Deferred and contingent consideration 26  
Net cash outflow in respect of the purchase of businesses $ 211  
v3.24.1.1.u2
Acquisitions - Pro Forma (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Apr. 30, 2024
Apr. 30, 2023
Apr. 30, 2024
Apr. 30, 2023
Business Combination and Asset Acquisition [Abstract]        
Pro forma net sales $ 7,328 $ 7,213 $ 21,848 $ 22,107
v3.24.1.1.u2
Related party transactions (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Apr. 30, 2023
Apr. 30, 2024
Apr. 30, 2023
Non-Executive Directors      
Related Party Transaction [Line Items]      
Purchases from related party $ 9 $ 8 $ 22