Ferguson (FERG) 10-Q 7 Jun 23 2023 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Apr. 30, 2023	May 31, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 30, 2023
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		204,785,917
Entity Central Index Key	0001832433
Current Fiscal Year End Date	--07-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Statemen

Condensed Consolidated Statements of Earnings (unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Income Statement [Abstract]
Net sales	$ 7,140	$ 7,284	$ 21,896	$ 20,595
Cost of sales	(5,000)	(5,079)	(15,273)	(14,274)
Gross profit	2,140	2,205	6,623	6,321
Selling, general and administrative expenses	(1,435)	(1,415)	(4,376)	(4,091)
Impairments and other charges	127	0	127	0
Depreciation and amortization	(81)	(78)	(243)	(224)
Operating profit	497	712	1,877	2,006
Interest expense, net	(48)	(22)	(136)	(71)
Other expense, net	(2)	0	(7)	(2)
Income before income taxes	447	690	1,734	1,933
Provision for income taxes	(111)	(144)	(429)	(416)
Income from continuing operations	336	546	1,305	1,517
Income from discontinued operations (net of tax)	0	0	0	25
Net income	$ 336	$ 546	$ 1,305	$ 1,542
Earnings per share - Basic:
Continuing operations, Basic (in usd per share)	$ 1.64	$ 2.52	$ 6.30	$ 6.91
Discontinued operations, Basic (in usd per share)	0	0	0	0.11
Earnings per share, Basic (in usd per share)	1.64	2.52	6.30	7.02
Earnings per share - Diluted:
Continuing operations, Diluted (in usd per share)	1.63	2.50	6.28	6.88
Discontinued operations, Diluted (in usd per share)	0	0	0	0.11
Earnings per share, Diluted (in usd per share)	$ 1.63	$ 2.50	$ 6.28	$ 6.99
Weighted-average number of shares outstanding:
Basic (in shares)	205.4	217.1	207.1	219.5
Diluted (in shares)	206.1	218	207.9	220.6

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 336	$ 546	$ 1,305	$ 1,542
Other comprehensive income (loss):
Foreign currency translation adjustments	(7)	(13)	(25)	(27)
Pension income (loss), net of tax expense of $0, $0, $1, and $10 respectively.	4	(4)	11	(22)
Total other comprehensive income (loss), net of tax	(3)	(17)	(14)	(49)
Comprehensive income	$ 333	$ 529	$ 1,291	$ 1,493

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (unaudited) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Statement of Comprehensive Income [Abstract]
OCI, defined benefit plan, tax expense (benefit)	$ 0	$ 0	$ 1	$ 10

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Millions	Apr. 30, 2023	Jul. 31, 2022
Assets
Cash and cash equivalents	$ 625	$ 771
Accounts receivable, less allowances of $54 and $27, respectively	3,382	3,610
Inventories	4,089	4,333
Prepaid and other current assets	783	834
Assets held for sale	30	3
Total current assets	8,909	9,551
Assets, Noncurrent [Abstract]
Property, plant and equipment, net	1,542	1,376
Operating lease right-of-use assets	1,321	1,200
Deferred income taxes, net	265	177
Goodwill	2,090	2,048
Other intangible assets, net	661	782
Other non-current assets	576	527
Total assets	15,364	15,661
Liabilities, Current [Abstract]
Accounts payable	3,297	3,607
Short-term debt	55	250
Current portion of operating lease liabilities	343	321
Dividend payable	153	0
Share repurchase liability	114	324
Other current liabilities	1,163	1,297
Total current liabilities	5,125	5,799
Liabilities, Noncurrent [Abstract]
Long-term debt	3,839	3,679
Long-term portion of operating lease liabilities	995	878
Other long-term liabilities	684	640
Total liabilities	10,643	10,996
Shareholders’ equity:
Ordinary shares, par value 10 pence: 500,000,000 shares authorized, 232,171,182 shares issued	30	30
Paid-in capital	799	760
Retained earnings	8,128	7,594
Treasury shares, 27,208,571 and 21,078,577 shares, respectively at cost	(3,346)	(2,782)
Employee Benefit Trusts, 275,651 and 846,491 shares, respectively at cost	(46)	(107)
Accumulated other comprehensive loss	(844)	(830)
Total shareholders' equity	4,721	4,665
Total liabilities and shareholders' equity	$ 15,364	$ 15,661

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) $ in Millions	Apr. 30, 2023 USD ($) shares	Apr. 30, 2023 £ / shares	Jul. 31, 2022 USD ($) shares	Jul. 31, 2022 £ / shares
Statement of Financial Position [Abstract]
Allowance for credit loss | $	$ 54		$ 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)	27,208,571		21,078,577
Employee Benefit Trust (in shares)	275,651		846,491

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Shareholders’ Equity (unaudited) - 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, 2021	$ 5,003	$ 30	$ 704	$ 6,054	$ (931)	$ (58)	$ (796)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income (loss)	3
Ending balance at Oct. 31, 2021							(793)
Beginning balance at Jul. 31, 2021	5,003	30	704	6,054	(931)	(58)	(796)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation	45		45
Net income	1,542			1,542
Cash dividends declared	(550)			(550)
Other comprehensive income (loss)	(49)						(49)
Share repurchases	(1,506)				(1,414)	(92)
Shares issued under employee share plans	0			(50)	7	43
Other	18			18
Ending balance at Apr. 30, 2022	$ 4,503	30	749	7,014	(2,338)	(107)	(845)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends (in usd per share)	$ 2.505
Beginning balance at Oct. 31, 2021							(793)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income (loss)	$ (35)
Ending balance at Jan. 31, 2022	4,845	30	737	6,649	(1,636)	(107)	(828)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation	12		12
Net income	546			546
Cash dividends declared	(182)			(182)
Other comprehensive income (loss)	(17)						(17)
Share repurchases	(702)				(702)
Other	1			1
Ending balance at Apr. 30, 2022	$ 4,503	30	749	7,014	(2,338)	(107)	(845)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends (in usd per share)	$ 0.84
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 income (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 income (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)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends (in usd per share)	$ 3.41
Beginning balance at Oct. 31, 2022							(867)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income (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 income (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)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends (in usd per share)	$ 0.75

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Shareholders’ Equity (unaudited) (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Statement of Stockholders' Equity [Abstract]
Cash dividends (in usd per share)	$ 0.75	$ 0.84	$ 3.41	$ 2.505

Condensed Consolidated Statem_6

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions	9 Months Ended
	Apr. 30, 2023	Apr. 30, 2022
Cash flows from operating activities:
Net income	$ 1,305	$ 1,542
Income from discontinued operations	0	(25)
Income from continuing operations	1,305	1,517
Depreciation and amortization	243	224
Share-based compensation	38	44
Non-cash impact of impairments and net loss on disposal of assets	127	14
Decrease (increase) in inventories	315	(808)
Decrease (increase) in receivables and other assets	313	(636)
(Decrease) increase in accounts payable and other liabilities	(441)	439
Change in deferred taxes and income tax payable	(100)	(120)
Other operating activities	6	7
Net cash provided by operating activities of continuing operations	1,806	681
Net cash used in operating activities of discontinued operations	(4)	0
Net cash provided by operating activities	1,802	681
Cash flows from investing activities:
Purchase of businesses acquired, net of cash acquired	(179)	(275)
Capital expenditures	(361)	(195)
Other investing activities	(3)	(6)
Net cash used in investing activities of continuing operations	(543)	(476)
Net cash provided by investing activities of discontinued operations	0	25
Net cash used in investing activities	(543)	(451)
Cash flows from financing activities:
Purchase of own shares by Employee Benefit Trusts	0	(92)
Purchase of treasury shares	(784)	(918)
Repayments of debt	(2,280)	(575)
Proceeds from debt	2,250	1,564
Change in bank overdrafts	1	14
Cash dividends	(557)	(364)
Other financing activities	(19)	(12)
Net cash used in financing activities	(1,389)	(383)
Change in cash, cash equivalents and restricted cash	(130)	(153)
Effects of exchange rate changes	20	(19)
Cash, cash equivalents and restricted cash, beginning of period	785	1,342
Cash, cash equivalents and restricted cash, end of period	675	1,170
Supplemental Disclosures:
Cash paid for income taxes	529	536
Cash paid for interest	156	82
Accrued capital expenditures	$ 11	$ 10

Summary of significant accounti

Summary of significant accounting policies	9 Months Ended
	Apr. 30, 2023
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 the disclosures normally required in annual consolidated financial statements. The unaudited condensed consolidated financial statements, in the opinion of management, 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, 2022 condensed consolidated balance sheet was derived from the audited financial statements. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s 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 that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows. As of (In millions) April 30, 2023 July 31, 2022 Cash and cash equivalents $625 $771 Restricted cash 50 14 Total cash, cash equivalents and restricted cash $675 $785 Recently issued accounting pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of Effects of Reference Rate Reform on Financial Reporting. This ASU, and subsequent clarifications, provide practical expedients for contract modification accounting related to the transition away from the London Interbank Offered Rate (“LIBOR”) and other interbank offering rates to alternative reference rates. The Company has evaluated the impact of reference rate reform and concluded the impact is not material to the Company’s consolidated financial statements. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The amendments address how to determine whether a contract liability is recognized by the acquirer in a business combination and provides specific guidance on how to recognize and measure acquired contract assets and contract liabilities from revenue contracts in a business combination. For public business entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company does not expect a material impact to the Company’s consolidated financial statements. 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.

Revenue and segment information

Revenue and segment information	9 Months Ended
	Apr. 30, 2023
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 ended Nine months ended April 30, April 30, (In millions) 2023 2022 2023 2022 Net sales: United States $6,827 $6,938 $20,863 $19,528 Canada 313 346 1,033 1,067 Total net sales $7,140 $7,284 $21,896 $20,595 Adjusted operating profit: United States $664 $736 $2,088 $2,064 Canada 7 20 54 77 Central and other costs (14) (9) (39) (39) Corporate restructurings (1) — (5) — (12) Impairments and other charges (2) (127) — (127) — Amortization of acquired intangible assets (33) (30) (99) (84) Interest expense, net (48) (22) (136) (71) Other expense, net (2) — (7) (2) Income before income taxes $447 $690 $1,734 $1,933 (1) For the three and nine months ended April 30, 2022, corporate restructuring costs related to the incremental costs of the Company’s listing in the United States. (2) See Note 4 for details regarding impairments and other charges. 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 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 ended Nine months ended April 30, April 30, (In millions) 2023 2022 2023 2022 United States: Residential $3,534 $3,752 $10,956 $10,617 Non-residential: Commercial 2,231 2,190 6,764 6,180 Civil/Infrastructure 567 558 1,713 1,532 Industrial 495 438 1,430 1,199 Total Non-residential 3,293 3,186 9,907 8,911 Total United States 6,827 6,938 20,863 19,528 Canada 313 346 1,033 1,067 Total net sales $7,140 $7,284 $21,896 $20,595 No sales to an individual customer accounted for more than 10% of net sales during any of the periods presented.

Earnings per share

Earnings per share	9 Months Ended
	Apr. 30, 2023
Earnings Per Share [Abstract]
Earnings per share	Earnings per share Basic earnings per share is calculated using our weighted-average outstanding ordinary shares. Diluted earnings per share is calculated using our weighted-average outstanding ordinary shares and the dilutive effect of share awards as determined under the treasury stock method. The following table shows the calculation of diluted shares: Three months ended Nine months ended April 30, April 30, (In millions, except per share amounts) 2023 2022 2023 2022 Income from continuing operations $336 $546 $1,305 $1,517 Income from discontinued operations (net of tax) — — — 25 Net income $336 $546 $1,305 $1,542 Weighted-average number of shares outstanding: Basic weighted-average shares 205.4 217.1 207.1 219.5 Effect of dilutive shares 0.7 0.9 0.8 1.1 Diluted weighted-average shares 206.1 218.0 207.9 220.6 Earnings per share - Basic: Continuing operations $1.64 $2.52 $6.30 $6.91 Discontinued operations — — — 0.11 Total $1.64 $2.52 $6.30 $7.02 Earnings per share - Diluted: Continuing operations $1.63 $2.50 $6.28 $6.88 Discontinued operations — — — 0.11 Total $1.63 $2.50 $6.28 $6.99 Excluded anti-dilutive shares 0.1 0.1 0.1 0.1

Impairments and other charges

Impairments and other charges	9 Months Ended
	Apr. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Impairments & other charges	Impairments and other charges Internal use software The Company has been upgrading portions of its IT systems to enhance customer experience and associate productivity. One of the solutions developed targeted certain branch transactional processes and was piloted at select locations. In the third quarter of fiscal 2023, the Company determined that this solution did not meet our customer service, speed and efficiency goals. As a result, the Company chose not to proceed with this component and recorded a non-cash impairment charge of $107 million of previously capitalized software costs in the United States. Branch closures During the third quarter of fiscal 2023, the Company recorded charges of $20 million related to the closure of 44 smaller, underperforming branches in the United States, primarily related to impairment of lease assets and related fixed assets.

Income tax

Income tax	9 Months Ended
	Apr. 30, 2023
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 ended Nine months ended April 30, April 30, 2023 2022 2023 2022 Effective tax rate, continuing operations 24.8 % 20.9 % 24.7 % 21.5 % During the year-to-date period of fiscal 2023, there have been no material changes to the Company’s unrecognized tax benefits when compared to those items disclosed in the Annual Report. As disclosed in the Annual Report, we consider foreign earnings of specific subsidiaries to be indefinitely reinvested. If at some future date, the Company ceases to be permanently reinvested in these foreign subsidiaries, the Company may be subject to foreign withholding and other taxes on these undistributed earnings and may need to record a deferred tax liability for any outside basis difference on these specific foreign subsidiaries. The potential impact in connection with these items has not materially changed since the end of fiscal 2022.

Debt

Debt	9 Months Ended
	Apr. 30, 2023
Debt Disclosure [Abstract]
Debt	Debt The Company’s debt obligations consisted of the following: As of (In millions) April 30, 2023 July 31, 2022 Variable-rate debt: Receivables Securitization Facility $175 $455 Term Loan 500 — Private Placement Notes: 3.43% due September 2022 — 250 3.30% due November 2023 55 55 3.44% due November 2024 150 150 3.73% due September 2025 400 400 3.51% due November 2026 150 150 3.83% due September 2027 150 150 Unsecured Senior Notes: 4.50% due October 2028 750 750 3.25% due June 2030 600 600 4.25% due April 2027 300 300 4.65% due April 2032 700 700 Subtotal $3,930 $3,960 Less: current maturities of debt (55) (250) Unamortized discounts and debt issuance costs (23) (24) Interest rate swap - fair value adjustment (13) (7) Total long-term debt $3,839 $3,679 Private Placement Notes During the first quarter of fiscal 2023, the 3.43% notes due in September 2022 were repaid at maturity. Bilateral Loan The Company previously maintained an unsecured $250 million 364-day revolving facility (the “Bilateral Loan Facility”) governed by the Revolving Facility Agreement, dated March 25, 2022, among the Company, Ferguson UK Holdings Limited, a wholly-owned subsidiary of the Company (“Ferguson UK”), Sumitomo Mitsui Banking Corporation, London Branch, as lead arranger, the lenders party thereto and SMBC Bank International PLC, as agent for the lenders (the “Bilateral Loan Agreement”). Effective December 29, 2022, the Company voluntarily cancelled the Bilateral Loan Facility in accordance with the terms of the Bilateral Loan Agreement. At the time of cancellation, no amounts were outstanding under the Bilateral Loan Agreement. Term Loan Agreement The Credit Agreement, dated October 7, 2022, among the Company, Ferguson UK, the lenders party thereto and the agent of the lenders party thereto (the “Term Loan Agreement”) provides for term loans in an aggregate principal amount of $500 million, the proceeds of which may be used for general corporate purposes. The Term Loan Agreement will mature on October 7, 2025. Term loans will bear interest at a rate per annum of the Term SOFR Rate, as defined in the Term Loan Agreement, plus a credit spread adjustment of 10 basis points plus a margin ranging from 100 to 150 basis points, determined on the basis of the Company’s corporate credit ratings (or if public credit ratings are not published, senior unsecured debt ratings). Ferguson UK may voluntarily prepay the term loans, in whole or in part, without premium or penalty, but subject to reimbursement of funding losses with respect to certain prepayments. Term loans that are prepaid may not be reborrowed. The Term Loan Agreement contains representations and warranties, affirmative and negative covenants and events of default, including, but not limited to, restrictions on the incurrence of non-guarantor subsidiary indebtedness, additional liens, mergers and sales of assets and changes in nature of business, in each case, subject to certain conditions, exceptions and thresholds. The Term Loan Agreement also requires the Company to maintain on a consolidated basis, as of the last day of each fiscal quarter, a maximum net leverage ratio of 3.50 to 1.00, with a step-up to 4.00 to 1.00 with respect to each of the four fiscal quarters ending immediately after certain material acquisitions. The Company unconditionally and irrevocably guarantees the term loans. Revolving Credit Facility The Company maintains a revolving credit facility (the “Revolving Facility”) under the Amendment and Restatement Agreement, dated October 7, 2022, among the Company, Ferguson UK, the lenders and arrangers party thereto, and the agent of the lenders party thereto (as amended from time to time, the “Revolving Facility Agreement”). The Revolving Facility has aggregate total available credit commitments of $1.35 billion. Borrowings under the Revolving Facility bear interest at a per annum rate of Term SOFR (as defined in the Revolving Facility Agreement) plus a credit spread adjustment of 10 basis points plus a margin ranging from 20 to 75 basis points, determined on the basis of the Company’s corporate credit ratings (or if public credit ratings are not published, senior unsecured debt ratings). The Company is required to pay a quarterly commitment fee and utilization fee in certain circumstances. All obligations under the Revolving Facility Agreement are unconditionally guaranteed by the Company and Ferguson UK, to the extent each entity is not the borrower with respect to such obligation. The Revolving Facility Agreement contains affirmative and negative covenants that, among other things, restrict, subject to certain conditions, exceptions and thresholds, the ability of the Company and its subsidiaries to incur indebtedness, grant liens on present or future assets or revenues, sell assets or engage in mergers or consolidations. The Revolving Facility Agreement also contains events of default, including, among others, cross-default and cross-acceleration provisions, in each case, subject to grace periods and thresholds. The Revolving Facility terminates in March 2026. As of April 30, 2023, no borrowings were outstanding under the Revolving Facility. Receivables Securitization Facility The Company maintains a Receivables Securitization Facility (as amended from time to time, the “Receivables Facility”) governed by the Receivables Purchase Agreement dated July 31, 2013, as amended from time to time. As of October 31, 2022, the Receivables Facility consists of accounts receivable funding for up to $1.1 billion, including a swingline for up to $100 million in same day funding, terminating on October 7, 2025. The Company has available to it an accordion feature whereby the facility may be increased up to $1.5 billion subject to lender participation. Interest is payable under the Receivables Facility at a rate of Term SOFR (as defined in the Receivables Facility) plus a credit spread adjustment of 10 basis points plus a margin. The Company does not factor its accounts receivable as the Receivables Facility is the Company’s only secured borrowing. The Receivables Facility contains affirmative and negative covenants that, among other things, restrict, subject to certain exceptions, the ability of the Company and its subsidiaries party thereto from granting additional liens on the accounts receivable, selling certain assets or engaging in acquisitions, mergers or consolidations, or, in the case of the borrower, incurring other indebtedness. The Receivables Facility also contains events of default and cross-default provisions, including requirements that our performance in relation to accounts receivable remains at set levels (specifically, among other things, relating to timely payments being received from debtors on the accounts receivable and to the amount of accounts receivable written off as bad debt) and that a required level of accounts receivable be generated and available to support the borrowings under the arrangements. As of April 30, 2023, $175 million in borrowings were outstanding under the Receivables Facility. The Company pays customary fees regarding unused amounts to maintain the availability under the Receivables Facility. The Company was in compliance with all debt covenants for all of these debt obligations and facilities that were in effect as of April 30, 2023.

Assets and liabilities at fair

Assets and liabilities at fair value	9 Months Ended
	Apr. 30, 2023
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, approximate the fair values of those instruments. 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 as of April 30, 2023 and July 31, 2022 was $355 million. Carrying amounts and the related estimated fair value (Level 2) of the Company’s long-term debt were as follows: April 30, 2023 July 31, 2022 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Unsecured Senior Notes $2,330 $2,226 $2,328 $2,350 Private Placement Notes 904 878 1,153 1,142

Commitments and contingencies

Commitments and contingencies	9 Months Ended
	Apr. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and contingencies	Commitments and contingencies 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 likely to arise. 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.

Accumulated other comprehensive

Accumulated other comprehensive loss	9 Months Ended
	Apr. 30, 2023
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 translation Pensions Total 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 reclassifications 18 6 24 Amounts reclassified from accumulated other comprehensive loss — 2 2 Other comprehensive income 18 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) (In millions, net of tax) Foreign currency translation Pensions Total Balance at July 31, 2021 ($396) ($400) ($796) Other comprehensive income before reclassifications — 1 1 Amounts reclassified from accumulated other comprehensive loss — 2 2 Other comprehensive income — 3 3 Balance at October 31, 2021 (396) (397) (793) Other comprehensive loss before reclassifications (14) (23) (37) Amounts reclassified from accumulated other comprehensive loss — 2 2 Other comprehensive loss (14) (21) (35) Balance at January 31, 2022 (410) (418) (828) Other comprehensive loss before reclassifications (13) (6) (19) Amounts reclassified from accumulated other comprehensive loss — 2 2 Other comprehensive loss (13) (4) (17) Balance at April 30, 2022 ($423) ($422) ($845) Amounts reclassified from accumulated other comprehensive income related to pension and other post-retirement items include the related income tax impacts. Such amounts consisted of the following: Three months ended Nine months ended April 30, April 30, (In millions) 2023 2022 2023 2022 Amortization of actuarial losses $2 $3 $8 $8 Tax benefit — (1) (2) (2) Amounts reclassified from accumulated other comprehensive loss $2 $2 $6 $6

Retirement benefit obligations

Retirement benefit obligations	9 Months Ended
	Apr. 30, 2023
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 ended Nine months ended April 30, April 30, (In millions) 2023 2022 2023 2022 Interest cost ($13) ($10) ($38) ($30) Expected return on plan assets 12 12 36 35 Amortization of net actuarial losses (2) (3) (8) (8) Net periodic cost ($3) ($1) ($10) ($3) The impact of exchange rate fluctuations is included on the amortization line above.

Shareholders_ equity

Shareholders’ equity	9 Months Ended
	Apr. 30, 2023
Equity [Abstract]
Shareholders’ equity	Shareholders’ equity The following table presents a summary of the Company’s share activity: Three months ended Nine months ended April 30, April 30, 2023 2022 2023 2022 Ordinary shares: Balance at beginning of period 232,171,182 232,171,182 232,171,182 232,171,182 Change in shares issued — — — — Balance at end of period 232,171,182 232,171,182 232,171,182 232,171,182 Treasury shares: Balance at beginning of period (25,619,935) (12,517,815) (21,078,577) (9,862,816) Repurchases of ordinary shares (1,588,636) (3,557,204) (6,181,156) (6,282,571) Treasury shares used to settle share-based compensation awards — 2,319 51,162 72,687 Balance at end of period (27,208,571) (16,072,700) (27,208,571) (16,072,700) Employee Benefit Trusts: Balance at beginning of period (283,604) (849,482) (846,491) (833,189) New shares purchased — — — (600,000) Employee Benefit Trust shares used to settle share-based compensation awards 7,953 2,840 570,840 586,547 Balance at end of period (275,651) (846,642) (275,651) (846,642) Total shares outstanding at end of period 204,686,960 215,251,840 204,686,960 215,251,840 Two Employee Benefit Trusts have been established in connection with the Company’s discretionary share option plans and long-term incentive plans. Dividends due on shares held by the Employee Benefit Trusts are waived in accordance with the provisions of the trust deeds. At April 30, 2023 and July 31, 2022, the shares held in trusts had market values of $39 million and $107 million, respectively. Share Repurchases In September 2021, the Company announced a program to repurchase up to $1.0 billion of shares. In March 2022 and September 2022, the Company announced an increase in its share repurchase program of $1.0 billion and $0.5 billion, respectively. As of April 30, 2023, the Company has completed $2.3 billion of the total announced $2.5 billion repurchase program. The Company is currently purchasing shares under an irrevocable and non-discretionary arrangement with $114 million in accrued repurchases remaining, which is recorded as a current liability in the condensed consolidated balance sheet. In June 2023, the Company extended the share repurchase program by an additional $0.5 billion, bringing the total authorized repurchases to $3.0 billion.

Share-based compensation

Share-based compensation	9 Months Ended
	Apr. 30, 2023
Share-Based Payment Arrangement [Abstract]
Share-based compensation	Share-based compensation The Ferguson Group Ordinary Share Plan 2019 (the “OSP”) and the Ferguson Group Performance Ordinary Share Plan 2019 (the “POSP”) each provides for the grant of equity awards without limitation on the number of ordinary shares that can be awarded under the plan. The Ferguson Group Long-Term Incentive Plan 2019 (“LTIP”) contains guidelines that limit the maximum number of shares that can be granted under this plan. Awards granted under the OSP vest over a period of time (“time vested”), typically three years. Dividends do not accrue during the vesting period. The fair value of the award is based on the closing share price on the date of grant. Awards granted under the POSP vest at the end of a three-year performance cycle (“performance vested”). The number of ordinary shares issued upon vesting varies based upon the Company’s performance against an adjusted operating profit measure. Dividends do not accrue during the vesting period. The fair value of the award is based on the closing share price on the date of grant. Awards granted under the LTIP vest at the end of a three-year performance period. For grants awarded 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 LTIP grants are treated as liability-settled awards. As such, the fair value of these awards is initially determined at the date of grant, and is remeasured at each balance sheet date until the liability is settled. Dividends accrue during the vesting period. As of April 30, 2023 and July 31, 2022, the total liability recorded in connection with these grants was $10 million and $11 million, respectively. In the first quarter of fiscal 2023, the Company granted awards under the LTIP 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 granted in the first quarter of fiscal 2023, these grants are treated as equity-settled awards (“LTIP, 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 was equal to the closing share price on the date of grant. The fair value of the awards that vest based on TSR was determined using a Monte-Carlo simulation, which estimated 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 incentive awards activity for the nine months ended April 30, 2023: Number of Shares Weighted-Average grant date fair value Outstanding at July 31, 2022 1,576,554 $100.03 Time vested grants 119,470 100.71 Performance vested grants 279,798 100.71 LTIP, equity-settled grants 37,676 91.84 Share adjustments based on performance (37,664) 108.33 Vested (615,611) 75.51 Forfeited (106,416) 110.83 Outstanding at April 30, 2023 1,253,807 $110.88 The following table relates to time vested, performance vested and long-term incentive awards activity: Nine months ended April 30, (In millions, except per share amounts) 2023 Fair value of awards vested $67 Weighted-average grant date fair value per share granted $99.94 The following table relates to all share-based compensation awards: Three months ended Nine months ended April 30, April 30, (In millions) 2023 2022 2023 2022 Share-based compensation expense (within SG&A) $11 $12 $38 $44 Income tax benefit 3 3 10 11 The total u nrecog nized sh are-based compensation expense at April 30, 2023 was $60 million and is expected to be recognized over a weighted-average period of 1.7 years.

Acquisitions

Acquisitions	9 Months Ended
	Apr. 30, 2023
Business Combination and Asset Acquisition [Abstract]
Acquisitions	Acquisitions The Company acquired the following businesses during the nine months ended April 30, 2023. Each of the acquired businesses is engaged in the distribution of plumbing and heating products and was acquired to support growth, primarily in the United States. All transactions have been accounted for by the acquisition method of accounting. Name Date of acquisition Location Equity/asset deal Acquired % Monark Premium Appliance August 2022 USA Asset 100 % Guarino Distributing Company, L.L.C. November 2022 USA Asset 100 % Airefco, Inc. December 2022 USA Asset 100 % Power Process Equipment, Inc. December 2022 USA Asset 100 % Pipelines, Inc. January 2023 USA Asset 100 % 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 $4 Customer relationships 62 Other 1 Right of use assets 17 Property, plant and equipment 5 Inventories 87 Trade and other receivables 32 Lease liabilities (17) Trade and other payables (39) Provisions (4) Total 148 Goodwill 52 Consideration $200 Satisfied by: Cash $179 Deferred consideration $21 Total consideration $200 The fair values of the assets acquired are considered preliminary and are based on management’s best estimates. Further adjustments may be necessary 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. As of the date of this Quarterly Report, the Company has made all known material adjustments. 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. All goodwill acquired during the nine months ended April 30, 2023 is in the United States segment with all goodwill expected to be deductible for tax purposes. 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) contingent on achieving 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 The businesses acquired during the year-to-date period of fiscal 2023 contributed $122 million to net sales and $3 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, 2023. The net outflow of cash related to business acquisitions is as follows: Nine months ended (In millions) April 30, 2023 Purchase consideration $179 Cash, cash equivalents and bank overdrafts acquired — Cash consideration paid, net of cash acquired 179 Deferred and contingent consideration (1) 17 Net cash outflow in respect of the purchase of businesses $196 (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 ended Nine months ended April 30, April 30, (In millions) 2023 2022 2023 2022 Pro forma net sales $7,140 $7,366 $22,005 $20,830 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, 2023 and 2022. 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.

Related party transactions

Related party transactions	9 Months Ended
	Apr. 30, 2023
Related Party Transactions [Abstract]
Related party transactions	Related party transactionsFor the three and nine month periods ended April 30, 2023, the Company purchased $9 million and $22 million, respectively, compared with $5 million and $16 million in 2022, respectively, of delivery, installation and related administrative services from companies that are, or are indirect wholly-owned subsidiaries of companies that are, controlled or significantly influenced by a Ferguson non-executive director. No material amounts are due to such companies. The services were purchased on an arm’s-length basis.

Summary of significant accoun_2

Summary of significant accounting policies (Policies)	9 Months Ended
	Apr. 30, 2023
Accounting Policies [Abstract]
Basis of consolidation	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 the disclosures normally required in annual consolidated financial statements. The unaudited condensed consolidated financial statements, in the opinion of management, 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, 2022 condensed consolidated balance sheet was derived from the audited financial statements. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report. The financial results for the interim periods may not be indicative of the financial results for the entire fiscal year.
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 the disclosures normally required in annual consolidated financial statements. The unaudited condensed consolidated financial statements, in the opinion of management, 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, 2022 condensed consolidated balance sheet was derived from the audited financial statements. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s 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 and cash equivalents	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.
Recently issued accounting pronouncements	Recently issued accounting pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of Effects of Reference Rate Reform on Financial Reporting. This ASU, and subsequent clarifications, provide practical expedients for contract modification accounting related to the transition away from the London Interbank Offered Rate (“LIBOR”) and other interbank offering rates to alternative reference rates. The Company has evaluated the impact of reference rate reform and concluded the impact is not material to the Company’s consolidated financial statements. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The amendments address how to determine whether a contract liability is recognized by the acquirer in a business combination and provides specific guidance on how to recognize and measure acquired contract assets and contract liabilities from revenue contracts in a business combination. For public business entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company does not expect a material impact to the Company’s consolidated financial statements. 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	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 likely to arise. 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.

Summary of significant accoun_3

Summary of significant accounting policies (Tables)	9 Months Ended
	Apr. 30, 2023
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 that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows. As of (In millions) April 30, 2023 July 31, 2022 Cash and cash equivalents $625 $771 Restricted cash 50 14 Total cash, cash equivalents and restricted cash $675 $785

Revenue and segment informati_2

Revenue and segment information (Tables)	9 Months Ended
	Apr. 30, 2023
Segment Reporting [Abstract]
Schedule of Segment Reporting	Segment details were as follows: Three months ended Nine months ended April 30, April 30, (In millions) 2023 2022 2023 2022 Net sales: United States $6,827 $6,938 $20,863 $19,528 Canada 313 346 1,033 1,067 Total net sales $7,140 $7,284 $21,896 $20,595 Adjusted operating profit: United States $664 $736 $2,088 $2,064 Canada 7 20 54 77 Central and other costs (14) (9) (39) (39) Corporate restructurings (1) — (5) — (12) Impairments and other charges (2) (127) — (127) — Amortization of acquired intangible assets (33) (30) (99) (84) Interest expense, net (48) (22) (136) (71) Other expense, net (2) — (7) (2) Income before income taxes $447 $690 $1,734 $1,933 (1) For the three and nine months ended April 30, 2022, corporate restructuring costs related to the incremental costs of the Company’s listing in the United States. (2) See Note 4 for details regarding impairments and other charges. 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 ended Nine months ended April 30, April 30, (In millions) 2023 2022 2023 2022 United States: Residential $3,534 $3,752 $10,956 $10,617 Non-residential: Commercial 2,231 2,190 6,764 6,180 Civil/Infrastructure 567 558 1,713 1,532 Industrial 495 438 1,430 1,199 Total Non-residential 3,293 3,186 9,907 8,911 Total United States 6,827 6,938 20,863 19,528 Canada 313 346 1,033 1,067 Total net sales $7,140 $7,284 $21,896 $20,595

Earnings per share (Tables)

Earnings per share (Tables)	9 Months Ended
	Apr. 30, 2023
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table shows the calculation of diluted shares: Three months ended Nine months ended April 30, April 30, (In millions, except per share amounts) 2023 2022 2023 2022 Income from continuing operations $336 $546 $1,305 $1,517 Income from discontinued operations (net of tax) — — — 25 Net income $336 $546 $1,305 $1,542 Weighted-average number of shares outstanding: Basic weighted-average shares 205.4 217.1 207.1 219.5 Effect of dilutive shares 0.7 0.9 0.8 1.1 Diluted weighted-average shares 206.1 218.0 207.9 220.6 Earnings per share - Basic: Continuing operations $1.64 $2.52 $6.30 $6.91 Discontinued operations — — — 0.11 Total $1.64 $2.52 $6.30 $7.02 Earnings per share - Diluted: Continuing operations $1.63 $2.50 $6.28 $6.88 Discontinued operations — — — 0.11 Total $1.63 $2.50 $6.28 $6.99 Excluded anti-dilutive shares 0.1 0.1 0.1 0.1

Income tax (Tables)

Income tax (Tables)	9 Months Ended
	Apr. 30, 2023
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 ended Nine months ended April 30, April 30, 2023 2022 2023 2022 Effective tax rate, continuing operations 24.8 % 20.9 % 24.7 % 21.5 %

Debt (Tables)

Debt (Tables)	9 Months Ended
	Apr. 30, 2023
Debt Disclosure [Abstract]
Schedule of Debt	The Company’s debt obligations consisted of the following: As of (In millions) April 30, 2023 July 31, 2022 Variable-rate debt: Receivables Securitization Facility $175 $455 Term Loan 500 — Private Placement Notes: 3.43% due September 2022 — 250 3.30% due November 2023 55 55 3.44% due November 2024 150 150 3.73% due September 2025 400 400 3.51% due November 2026 150 150 3.83% due September 2027 150 150 Unsecured Senior Notes: 4.50% due October 2028 750 750 3.25% due June 2030 600 600 4.25% due April 2027 300 300 4.65% due April 2032 700 700 Subtotal $3,930 $3,960 Less: current maturities of debt (55) (250) Unamortized discounts and debt issuance costs (23) (24) Interest rate swap - fair value adjustment (13) (7) Total long-term debt $3,839 $3,679

Assets and liabilities at fai_2

Assets and liabilities at fair value (Tables)	9 Months Ended
	Apr. 30, 2023
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, 2023 July 31, 2022 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Unsecured Senior Notes $2,330 $2,226 $2,328 $2,350 Private Placement Notes 904 878 1,153 1,142

Accumulated other comprehensi_2

Accumulated other comprehensive loss (Tables)	9 Months Ended
	Apr. 30, 2023
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The change in accumulated other comprehensive loss was as follows: (In millions, net of tax) Foreign currency translation Pensions Total 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 reclassifications 18 6 24 Amounts reclassified from accumulated other comprehensive loss — 2 2 Other comprehensive income 18 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) (In millions, net of tax) Foreign currency translation Pensions Total Balance at July 31, 2021 ($396) ($400) ($796) Other comprehensive income before reclassifications — 1 1 Amounts reclassified from accumulated other comprehensive loss — 2 2 Other comprehensive income — 3 3 Balance at October 31, 2021 (396) (397) (793) Other comprehensive loss before reclassifications (14) (23) (37) Amounts reclassified from accumulated other comprehensive loss — 2 2 Other comprehensive loss (14) (21) (35) Balance at January 31, 2022 (410) (418) (828) Other comprehensive loss before reclassifications (13) (6) (19) Amounts reclassified from accumulated other comprehensive loss — 2 2 Other comprehensive loss (13) (4) (17) Balance at April 30, 2022 ($423) ($422) ($845)
Reclassification out of Accumulated Other Comprehensive Income	Amounts reclassified from accumulated other comprehensive income related to pension and other post-retirement items include the related income tax impacts. Such amounts consisted of the following: Three months ended Nine months ended April 30, April 30, (In millions) 2023 2022 2023 2022 Amortization of actuarial losses $2 $3 $8 $8 Tax benefit — (1) (2) (2) Amounts reclassified from accumulated other comprehensive loss $2 $2 $6 $6

Retirement benefit obligations

Retirement benefit obligations (Tables)	9 Months Ended
	Apr. 30, 2023
Retirement Benefits [Abstract]
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets	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 ended Nine months ended April 30, April 30, (In millions) 2023 2022 2023 2022 Interest cost ($13) ($10) ($38) ($30) Expected return on plan assets 12 12 36 35 Amortization of net actuarial losses (2) (3) (8) (8) Net periodic cost ($3) ($1) ($10) ($3)

Shareholders_ equity (Tables)

Shareholders’ equity (Tables)	9 Months Ended
	Apr. 30, 2023
Equity [Abstract]
Schedule of Stockholders' Equity	The following table presents a summary of the Company’s share activity: Three months ended Nine months ended April 30, April 30, 2023 2022 2023 2022 Ordinary shares: Balance at beginning of period 232,171,182 232,171,182 232,171,182 232,171,182 Change in shares issued — — — — Balance at end of period 232,171,182 232,171,182 232,171,182 232,171,182 Treasury shares: Balance at beginning of period (25,619,935) (12,517,815) (21,078,577) (9,862,816) Repurchases of ordinary shares (1,588,636) (3,557,204) (6,181,156) (6,282,571) Treasury shares used to settle share-based compensation awards — 2,319 51,162 72,687 Balance at end of period (27,208,571) (16,072,700) (27,208,571) (16,072,700) Employee Benefit Trusts: Balance at beginning of period (283,604) (849,482) (846,491) (833,189) New shares purchased — — — (600,000) Employee Benefit Trust shares used to settle share-based compensation awards 7,953 2,840 570,840 586,547 Balance at end of period (275,651) (846,642) (275,651) (846,642) Total shares outstanding at end of period 204,686,960 215,251,840 204,686,960 215,251,840

Share-based compensation (Table

Share-based compensation (Tables)	9 Months Ended
	Apr. 30, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of Award Activity	The following table summarizes the share-based incentive awards activity for the nine months ended April 30, 2023: Number of Shares Weighted-Average grant date fair value Outstanding at July 31, 2022 1,576,554 $100.03 Time vested grants 119,470 100.71 Performance vested grants 279,798 100.71 LTIP, equity-settled grants 37,676 91.84 Share adjustments based on performance (37,664) 108.33 Vested (615,611) 75.51 Forfeited (106,416) 110.83 Outstanding at April 30, 2023 1,253,807 $110.88 The following table relates to time vested, performance vested and long-term incentive awards activity: Nine months ended April 30, (In millions, except per share amounts) 2023 Fair value of awards vested $67 Weighted-average grant date fair value per share granted $99.94
Schedule of Share-Based Compensation Awards	The following table relates to all share-based compensation awards: Three months ended Nine months ended April 30, April 30, (In millions) 2023 2022 2023 2022 Share-based compensation expense (within SG&A) $11 $12 $38 $44 Income tax benefit 3 3 10 11

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Apr. 30, 2023
Business Combination and Asset Acquisition [Abstract]
Schedule of Business Acquisitions	Name Date of acquisition Location Equity/asset deal Acquired % Monark Premium Appliance August 2022 USA Asset 100 % Guarino Distributing Company, L.L.C. November 2022 USA Asset 100 % Airefco, Inc. December 2022 USA Asset 100 % Power Process Equipment, Inc. December 2022 USA Asset 100 % Pipelines, Inc. January 2023 USA Asset 100 % The net outflow of cash related to business acquisitions is as follows: Nine months ended (In millions) April 30, 2023 Purchase consideration $179 Cash, cash equivalents and bank overdrafts acquired — Cash consideration paid, net of cash acquired 179 Deferred and contingent consideration (1) 17 Net cash outflow in respect of the purchase of businesses $196 (1) Included in other financing activities in the Condensed Consolidated Statements of Cash Flows.
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 $4 Customer relationships 62 Other 1 Right of use assets 17 Property, plant and equipment 5 Inventories 87 Trade and other receivables 32 Lease liabilities (17) Trade and other payables (39) Provisions (4) Total 148 Goodwill 52 Consideration $200 Satisfied by: Cash $179 Deferred consideration $21 Total consideration $200
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 ended Nine months ended April 30, April 30, (In millions) 2023 2022 2023 2022 Pro forma net sales $7,140 $7,366 $22,005 $20,830

Summary of significant accoun_4

Summary of significant accounting policies - Cash and Cash Equivalents (Details) - USD ($) $ in Millions	Apr. 30, 2023	Jul. 31, 2022	Apr. 30, 2022	Jul. 31, 2021
Accounting Policies [Abstract]
Cash and cash equivalents	$ 625	$ 771
Restricted cash	50	14
Total cash, cash equivalents and restricted cash	$ 675	$ 785	$ 1,170	$ 1,342

Revenue and segment informati_3

Revenue and segment information - Narrative (Details)	9 Months Ended
	Apr. 30, 2023 segment
Segment Reporting [Abstract]
Number of reportable segments	2

Revenue and segment informati_4

Revenue and segment information - Items not Allocated (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Net sales:
Total net sales	$ 7,140	$ 7,284	$ 21,896	$ 20,595
Adjusted operating profit:
Adjusted segment operating profit	497	712	1,877	2,006
Central and other costs	(14)	(9)	(39)	(39)
Impairments and other charges	(127)	0	(127)	0
Amortization of acquired intangible assets	(33)	(30)	(99)	(84)
Interest expense, net	(48)	(22)	(136)	(71)
Other expense, net	(2)	0	(7)	(2)
Income before income taxes	447	690	1,734	1,933
United States
Net sales:
Total net sales	6,827	6,938	20,863	19,528
Adjusted operating profit:
Adjusted segment operating profit	664	736	2,088	2,064
Canada
Net sales:
Total net sales	313	346	1,033	1,067
Adjusted operating profit:
Adjusted segment operating profit	7	20	54	77
Corporate restructurings
Adjusted operating profit:
Corporate restructurings	$ 0	$ (5)	$ 0	$ (12)

Revenue and segment informati_5

Revenue and segment information - Disaggregation of Net Sales (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Segment Reporting Information [Line Items]
Total net sales	$ 7,140	$ 7,284	$ 21,896	$ 20,595
United States
Segment Reporting Information [Line Items]
Total net sales	6,827	6,938	20,863	19,528
Canada
Segment Reporting Information [Line Items]
Total net sales	313	346	1,033	1,067
Residential | United States
Segment Reporting Information [Line Items]
Total net sales	3,534	3,752	10,956	10,617
Non-residential: | United States
Segment Reporting Information [Line Items]
Total net sales	3,293	3,186	9,907	8,911
Commercial | United States
Segment Reporting Information [Line Items]
Total net sales	2,231	2,190	6,764	6,180
Civil/Infrastructure | United States
Segment Reporting Information [Line Items]
Total net sales	567	558	1,713	1,532
Industrial | United States
Segment Reporting Information [Line Items]
Total net sales	$ 495	$ 438	$ 1,430	$ 1,199

Earnings per share (Details)

Earnings per share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Earnings Per Share [Abstract]
Income from continuing operations	$ 336	$ 546	$ 1,305	$ 1,517
Income from discontinued operations (net of tax)	0	0	0	25
Net income	$ 336	$ 546	$ 1,305	$ 1,542
Weighted-average number of shares outstanding:
Basic weighted-average shares (in shares)	205.4	217.1	207.1	219.5
Effect of dilutive shares (in shares)	0.7	0.9	0.8	1.1
Diluted weighted-average shares (in shares)	206.1	218	207.9	220.6
Earnings per share - Basic:
Continuing operations, Basic (in usd per share)	$ 1.64	$ 2.52	$ 6.30	$ 6.91
Discontinued operations, Basic (in usd per share)	0	0	0	0.11
Earnings per share, Basic (in usd per share)	1.64	2.52	6.30	7.02
Earnings per share - Diluted:
Continuing operations, Diluted (in usd per share)	1.63	2.50	6.28	6.88
Discontinued operations, Diluted (in usd per share)	0	0	0	0.11
Earnings per share, Diluted (in usd per share)	$ 1.63	$ 2.50	$ 6.28	$ 6.99
Excluded anti-dilutive shares (in shares)	0.1	0.1	0.1	0.1

Impairments and other charges (

Impairments and other charges (Details) $ in Millions	3 Months Ended		9 Months Ended
	Apr. 30, 2023 USD ($) branch	Apr. 30, 2022 USD ($)	Apr. 30, 2023 USD ($)	Apr. 30, 2022 USD ($)
Finite-Lived Intangible Assets [Line Items]
Impairments and other charges	$ 127	$ 0	$ 127	$ 0
Number of branches closed | branch	44
Software and technology development costs
Finite-Lived Intangible Assets [Line Items]
Impairments and other charges	$ 107
Leases and Related Fixed Assets
Finite-Lived Intangible Assets [Line Items]
Impairments and other charges	$ 20

Income tax - Schedule of Effect

Income tax - Schedule of Effective Income Tax Rate (Details)	3 Months Ended		9 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Income Tax Disclosure [Abstract]
Effective tax rate, continuing operations	24.80%	20.90%	24.70%	21.50%

Debt - Schedule of Debt (Detail

Debt - Schedule of Debt (Details) - USD ($) $ in Millions	Apr. 30, 2023	Oct. 07, 2022	Jul. 31, 2022
Debt Instrument [Line Items]
Subtotal	$ 3,930		$ 3,960
Less: current maturities of debt	(55)		(250)
Unamortized discounts and debt issuance costs	(23)		(24)
Interest rate swap - fair value adjustment	(13)		(7)
Long-term debt	3,839		3,679
Receivables Securitization Facility | Receivables Securitization Facility
Debt Instrument [Line Items]
Subtotal	175		455
Term Loan | Term Loan
Debt Instrument [Line Items]
Subtotal	$ 500	$ 500	0
Private Placement Notes: | 3.43% due September 2022
Debt Instrument [Line Items]
Interest rate (in percent)	3.43%
Subtotal	$ 0		250
Private Placement Notes: | 3.30% due November 2023
Debt Instrument [Line Items]
Interest rate (in percent)	3.30%
Subtotal	$ 55		55
Private Placement Notes: | 3.44% due November 2024
Debt Instrument [Line Items]
Interest rate (in percent)	3.44%
Subtotal	$ 150		150
Private Placement Notes: | 3.73% due September 2025
Debt Instrument [Line Items]
Interest rate (in percent)	3.73%
Subtotal	$ 400		400
Private Placement Notes: | 3.51% due November 2026
Debt Instrument [Line Items]
Interest rate (in percent)	3.51%
Subtotal	$ 150		150
Private Placement Notes: | 3.83% due September 2027
Debt Instrument [Line Items]
Interest rate (in percent)	3.83%
Subtotal	$ 150		150
Unsecured Senior Notes: | 4.50% due October 2028
Debt Instrument [Line Items]
Interest rate (in percent)	4.50%
Subtotal	$ 750		750
Unsecured Senior Notes: | 3.25% due June 2030
Debt Instrument [Line Items]
Interest rate (in percent)	3.25%
Subtotal	$ 600		600
Unsecured Senior Notes: | 4.25% due April 2027
Debt Instrument [Line Items]
Interest rate (in percent)	4.25%
Subtotal	$ 300		300
Unsecured Senior Notes: | 4.65% due April 2032
Debt Instrument [Line Items]
Interest rate (in percent)	4.65%
Subtotal	$ 700		$ 700

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($)			1 Months Ended
	Oct. 07, 2022	Mar. 25, 2022	Oct. 31, 2022	Apr. 30, 2023	Jul. 31, 2022
Schedule Of Long-Term And Short-Term Debt [Line Items]
Term loan principal amount				$ 3,930,000,000	$ 3,960,000,000
Private Placement Notes: | 3.43% due September 2022
Schedule Of Long-Term And Short-Term Debt [Line Items]
Interest rate (in percent)				3.43%
Term loan principal amount				$ 0	250,000,000
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
Line of Credit | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR)
Schedule Of Long-Term And Short-Term Debt [Line Items]
Credit spread adjustment	0.10%
Line of Credit | Revolving Credit Facility | Minimum | Secured Overnight Financing Rate (SOFR)
Schedule Of Long-Term And Short-Term Debt [Line Items]
Additional margin spread on variable rate	0.0020
Line of Credit | Revolving Credit Facility | Maximum | Secured Overnight Financing Rate (SOFR)
Schedule Of Long-Term And Short-Term Debt [Line Items]
Additional margin spread on variable rate	0.0075
Line of Credit | Revolving Credit Facility | Bilateral Loan Agreement
Schedule Of Long-Term And Short-Term Debt [Line Items]
Line of credit facility		$ 250,000,000
Debt instrument, term (in years)		364 days
Receivables Securitization Facility | Receivables Securitization Facility
Schedule Of Long-Term And Short-Term Debt [Line Items]
Term loan principal amount				175,000,000	455,000,000
Debt instrument, face amount			$ 1,100,000,000
Swingline adjustment			100,000,000
Accordion feature, maximum amount			$ 1,500,000,000
Total long-term debt				175,000,000
Receivables Securitization Facility | Receivables Securitization Facility | Secured Overnight Financing Rate (SOFR)
Schedule Of Long-Term And Short-Term Debt [Line Items]
Credit spread adjustment			0.10%
Term Loan | Term Loan
Schedule Of Long-Term And Short-Term Debt [Line Items]
Term loan principal amount	$ 500,000,000			$ 500,000,000	$ 0
Leverage ratio, maximum				3.50
Leverage ratio, step-up				4
Term Loan | Term Loan | Secured Overnight Financing Rate (SOFR)
Schedule Of Long-Term And Short-Term Debt [Line Items]
Credit spread adjustment	0.10%
Term Loan | Term Loan | Minimum | Secured Overnight Financing Rate (SOFR)
Schedule Of Long-Term And Short-Term Debt [Line Items]
Additional margin spread on variable rate	0.0100
Term Loan | Term Loan | Maximum | Secured Overnight Financing Rate (SOFR)
Schedule Of Long-Term And Short-Term Debt [Line Items]
Additional margin spread on variable rate	0.0150

Assets and liabilities at fai_3

Assets and liabilities at fair value - Narrative (Details) - USD ($) $ in Millions	Apr. 30, 2023	Jul. 31, 2022
Fair Value Disclosures [Abstract]
Hedged liability, fair value hedge	$ 355	$ 355

Assets and liabilities at fai_4

Assets and liabilities at fair value -Debt Measured at Fair Value (Details) - Level 2 - USD ($) $ in Millions	Apr. 30, 2023	Jul. 31, 2022
Unsecured Senior Notes:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	$ 2,330	$ 2,328
Fair Value	2,226	2,350
Private Placement Notes:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	904	1,153
Fair Value	$ 878	$ 1,142

Accumulated other comprehensi_3

Accumulated other comprehensive loss - Change in AOCI (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Apr. 30, 2023	Jan. 31, 2023	Oct. 31, 2022	Apr. 30, 2022	Jan. 31, 2022	Oct. 31, 2021	Apr. 30, 2023	Apr. 30, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 4,725		$ 4,665	$ 4,845		$ 5,003	$ 4,665	$ 5,003
Other comprehensive income before reclassifications	(5)	$ 24	(39)	(19)	$ (37)	1
Amounts reclassified from accumulated other comprehensive (loss) income	2	2	2	2	2	2
Total other comprehensive income (loss), net of tax	(3)	26	(37)	(17)	(35)	3	(14)	(49)
Ending balance	4,721	4,725		4,503	4,845		4,721	4,503
AOCI Attributable to Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(841)	(867)	(830)	(828)	(793)	(796)	(830)	(796)
Total other comprehensive income (loss), net of tax	(3)			(17)			(14)	(49)
Ending balance	(844)	(841)	(867)	(845)	(828)	(793)	(844)	(845)
Foreign currency translation
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(438)	(456)	(420)	(410)	(396)	(396)	(420)	(396)
Other comprehensive income before reclassifications	(7)	18	(36)	(13)	(14)	0
Amounts reclassified from accumulated other comprehensive (loss) income	0	0	0	0	0	0
Total other comprehensive income (loss), net of tax	(7)	18	(36)	(13)	(14)	0
Ending balance	(445)	(438)	(456)	(423)	(410)	(396)	(445)	(423)
Pensions
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(403)	(411)	(410)	(418)	(397)	(400)	(410)	(400)
Other comprehensive income before reclassifications	2	6	(3)	(6)	(23)	1
Amounts reclassified from accumulated other comprehensive (loss) income	2	2	2	2	2	2
Total other comprehensive income (loss), net of tax	4	8	(1)	(4)	(21)	3
Ending balance	$ (399)	$ (403)	$ (411)	$ (422)	$ (418)	$ (397)	$ (399)	$ (422)

Accumulated other comprehensi_4

Accumulated other comprehensive loss - Reclassification Out of AOCI (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Tax benefit	$ 111	$ 144	$ 429	$ 416
Net income	(336)	(546)	(1,305)	(1,542)
Reclassification out of Accumulated Other Comprehensive Income | Employee Benefit Trusts
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amortization of actuarial losses	2	3	8	8
Tax benefit	0	(1)	(2)	(2)
Net income	$ 2	$ 2	$ 6	$ 6

Retirement benefit obligation_2

Retirement benefit obligations - Net Periodic Cost (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Retirement Benefits [Abstract]
Interest cost	$ (13)	$ (10)	$ (38)	$ (30)
Expected return on plan assets	12	12	36	35
Amortization of net actuarial losses	(2)	(3)	(8)	(8)
Net periodic cost	$ (3)	$ (1)	$ (10)	$ (3)

Shareholders_ equity - Summary

Shareholders’ equity - Summary of Share Activity (Details) - shares	3 Months Ended		9 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022	Jan. 31, 2023	Jul. 31, 2022	Jan. 31, 2022	Jul. 31, 2021
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Total shares outstanding at end of period (in shares)	204,686,960	215,251,840	204,686,960	215,251,840
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)	(27,208,571)	(16,072,700)	(27,208,571)	(16,072,700)	(25,619,935)	(21,078,577)	(12,517,815)	(9,862,816)
Repurchases of ordinary shares (in shares)	(1,588,636)	(3,557,204)	(6,181,156)	(6,282,571)
Treasury shares used to settle share-based compensation awards (in shares)	0	2,319	51,162	72,687
Treasury stock, ending balance (in shares)	(27,208,571)	(16,072,700)	(27,208,571)	(16,072,700)
Employee Benefit Trusts
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period (in shares)	283,604	849,482	846,491	833,189
New shares purchased (in shares)	0	0	0	(600,000)
Employee Benefit Trust shares used to settle share-based compensation awards (in shares)	7,953	2,840	570,840	586,547
Balance at end of period (in shares)	275,651	846,642	275,651	846,642

Shareholders_ equity - Narrativ

Shareholders’ equity - Narrative (Details) $ in Millions	9 Months Ended		20 Months Ended
	Apr. 30, 2023 USD ($) trust	Apr. 30, 2022 USD ($)	Apr. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Jul. 31, 2022 USD ($)	Mar. 31, 2022 USD ($)	Sep. 30, 2021 USD ($)
Class of Stock [Line Items]
Number of employee benefit trusts | trust	2
Market value of shares held in trusts	$ 39		$ 39			$ 107
Authorized stock to repurchased	2,500		2,500					$ 1,000
Increase to share buy back program					$ 500		$ 1,000
Purchase of treasury shares	784	$ 918	2,300
Remaining liability related to agreement	$ 114		$ 114
Subsequent Event
Class of Stock [Line Items]
Authorized stock to repurchased				$ 3,000
Increase to share buy back program				$ 500

Share-based compensation - Narr

Share-based compensation - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Apr. 30, 2023	Jul. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share based payment, cost not yet recognized	$ 60
Share based payment, cost not yet recognized, period for recognition (in years)	1 year 8 months 12 days
Employee Stock | Ferguson Group Ordinary Share Plan
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 Performance Share Plan
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]
Share based compensation, award vesting period (in years)	3 years
Liability in connection with grants	$ 10	$ 11

Share-based compensation - Summ

Share-based compensation - Summary of Awards (Details)	9 Months Ended
	Apr. 30, 2023 $ / shares shares
Number of Shares
Beginning Balance Outstanding (in shares) | shares	1,576,554
Vested (in shares) | shares	(615,611)
Forfeited (in shares) | shares	(106,416)
Ending Balance Outstanding (in shares) | shares	1,253,807
Weighted-Average grant date fair value
Outstanding, Weighted Average grant date fair value, Beginning Balance (in usd per share) | $ / shares	$ 100.03
Vested, Weighted Average grant date fair value (in usd per share) | $ / shares	75.51
Forfeited, Weighted Average grant date fair value (in usd per share) | $ / shares	110.83
Outstanding, Weighted Average grant date fair value, Ending Balance (in usd per share) | $ / shares	$ 110.88
Time vested grants
Number of Shares
Grants (in shares) | shares	119,470
Weighted-Average grant date fair value
Granted, Weighted Average grant date fair value (in usd per share) | $ / shares	$ 100.71
Performance vested grants
Number of Shares
Grants (in shares) | shares	279,798
Weighted-Average grant date fair value
Granted, Weighted Average grant date fair value (in usd per share) | $ / shares	$ 100.71
LTIP, equity-settled grants
Number of Shares
Grants (in shares) | shares	37,676
Weighted-Average grant date fair value
Granted, Weighted Average grant date fair value (in usd per share) | $ / shares	$ 91.84
Share adjustments based on performance
Number of Shares
Share adjustments based on performance (in shares) | shares	(37,664)
Weighted-Average grant date fair value
Share adjustments based on performance, Weighted Average grant date fair value (in usd per share) | $ / shares	$ 108.33

Share-based compensation - Su_2

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, 2023 USD ($) $ / shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Fair value of awards vested | $	$ 67
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	$ 99.94

Share-based compensation - Sche

Share-based compensation - Schedule of Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Share-Based Payment Arrangement [Abstract]
Share-based compensation expense (within SG&A)	$ 11	$ 12	$ 38	$ 44
Income tax benefit	$ 3	$ 3	$ 10	$ 11

Acquisitions - Businesses Acqui

Acquisitions - Businesses Acquired (Details)	Jan. 31, 2023	Dec. 31, 2022	Nov. 30, 2022	Aug. 31, 2022
Monark Premium Appliance
Business Acquisition [Line Items]
Acquired %				100%
Guarino Distributing Company, L.L.C.
Business Acquisition [Line Items]
Acquired %			100%
Airefco, Inc.
Business Acquisition [Line Items]
Acquired %		100%
Power Process Equipment, Inc.
Business Acquisition [Line Items]
Acquired %		100%
Pipelines, Inc.
Business Acquisition [Line Items]
Acquired %	100%

Acquisitions - Schedule of Asse

Acquisitions - Schedule of Assets and Liabilities Acquired (Details) $ in Millions	9 Months Ended
	Apr. 30, 2023 USD ($)
Business Acquisition [Line Items]
Right of use assets	$ 17
Property, plant and equipment	5
Inventories	87
Trade and other receivables	32
Lease liabilities	(17)
Trade and other payables	(39)
Provisions	(4)
Total	148
Goodwill	52
Total consideration	200
Cash	179
Deferred consideration	21
Trade names and brands
Business Acquisition [Line Items]
Intangible assets:	4
Customer relationships
Business Acquisition [Line Items]
Intangible assets:	62
Other
Business Acquisition [Line Items]
Intangible assets:	$ 1

Acquisitions - Narrative (Detai

Acquisitions - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Business Acquisition [Line Items]
Revenue since acquisition date			$ 122
Earnings (loss) since acquisition date			(3)
Pro forma net sales	$ 7,140	$ 7,366	$ 22,005	$ 20,830
Minimum
Business Acquisition [Line Items]
Service period (in years)			1 year
Maximum
Business Acquisition [Line Items]
Service period (in years)			3 years

Acquisitions - Net Cash Outflow

Acquisitions - Net Cash Outflow (Details) - USD ($) $ in Millions	9 Months Ended
	Apr. 30, 2023	Apr. 30, 2022
Business Combination and Asset Acquisition [Abstract]
Purchase consideration	$ 179
Cash, cash equivalents and bank overdrafts acquired	0
Cash consideration paid, net of cash acquired	179	$ 275
Deferred and contingent consideration	17
Net cash outflow in respect of the purchase of businesses	$ 196

Acquisitions - Pro Forma (Detai

Acquisitions - Pro Forma (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Business Combination and Asset Acquisition [Abstract]
Pro forma net sales	$ 7,140	$ 7,366	$ 22,005	$ 20,830

Related party transactions (Det

Related party transactions (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Non-Executive Directors
Related Party Transaction [Line Items]
Purchases from related party	$ 9	$ 5	$ 22	$ 16