Financial Analysis

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.

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Debt The Companys debt obligations consisted of the following: As of (In millions) October 31, 2025 July 31, 2025 Variable-rate debt: Receivables Facility $ $375 Fixed-rate debt: Private placement notes 300 700 Unsecured senior notes, due April 2027 - October 2034 3,100 3,100 2031 Senior Notes, 4.35% due March 2031 750 Subtotal $4,150 $4,175 Less: current maturities of debt (400) Unamortized discounts and debt issuance costs (23) (19) Interest rate swap - fair value adjustment (3) (4) Total long-term debt $4,124 $3,752 Receivables Securitization Facility The Company maintains a Receivables Securitization Facility (the Receivables Facility) which is primarily governed by the Receivables Purchase Agreement, dated July 31, 2013, as amended from time to time. The Receivables Facility consists of funding for up to $915 million. The Company has the ability to increase the aggregate total available amount under the Receivables Facility up to a total of $1.5 billion, subject to lender participation. As of October 31, 2025, no borrowings were outstanding under the Receivables Facility. Revolving Credit Facility The Company, pursuant to a revolving credit agreement (the Revolving Credit Agreement), maintains a revolving credit facility that has aggregate total available credit commitments of $1.5 billion (the Revolving Facility). The Revolving Credit Agreement provides the Company with the ability to increase the aggregate capacity of the facility by $500 million under certain conditio …

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Share-based compensation The Company grants share-based compensation awards that can be broadly characterized by the underlying vesting conditions as follows: Time vested, restricted stock units (RSU) vest over time. RSU awards granted prior to fiscal 2025 cliff vest, typically at the end of three years. RSU awards granted in fiscal 2025 and beyond will vest in equal, annual installments over three years. The fair value of these awards is based on the closing share price on the date of grant. Multiple metric performance stock units granted to certain members of management (PSU-EX) typically vest following three-year performance cycles. The number of shares issued will vary based upon adjusted EPS growth (diluted), return on capital employed (ROCE) and relative total shareholder return (rTSR). The fair value of awards vesting based upon EPS growth (diluted) and ROCE are equal to the closing share price on the date of grant and the fair value of rTSR awards are determined using a Monte-Carlo simulation. Single metric performance stock units (PSU) typically vest following three-year performance cycles. The number of shares issued will vary based upon the Companys performance against an adjusted operating profit measure. The Company did not issue new PSUs in the current quarter. The following table summarizes the share-based incentive awards activity for the three months ended October 31, 2025: Number of shares Weighted average grant date fair value Outstanding as of July 31, 202 …

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Assets and liabilities at fair value The Company has not changed its valuation techniques for measuring the 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 Facility due to its variable interest rate, approximated their fair values as of October 31, 2025 and July 31, 2025. The Companys 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 Companys outstanding fair value hedges was $150 million as of October 31, 2025 and July 31, 2025. Carrying amounts and the related estimated fair value of the Companys long-term debt were as follows: October 31, 2025 July 31, 2025 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Unsecured senior notes $3,827 $3,829 $3,081 $3,033 Private placement notes 300 300 700 698 …

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Income tax The Companys 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 October 31, 2025 2024 Effective tax rate 19.9 % 24.7 % During the three months ended October 31, 2025, there were no material changes to the Companys unrecognized tax benefits, beyond the release of benefits following the lapse of statute of limitations, when compared to those items disclosed in the Annual Report. …

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Recently issued accounting standard updates (ASU) In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU requires new financial statement disclosures disaggregating prescribed expense categories within relevant income statement expense captions, including information about purchases of inventory, employee compensation, depreciation, and intangible asset amortization for each relevant expense caption on the face of the income statement. Per ASU No. 2025-01, the amendments under ASU No. 2024-03 are effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The ASU No. 2024-03 can be adopted either prospectively or retrospectively. The Company is currently evaluating the ASU to determine the impact 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 disaggre …

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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) income, net in the condensed consolidated statements of earnings, were as follows: Three months ended October 31, (In millions) 2025 2024 Interest cost ($17) ($16) Expected return on plan assets 16 16 Amortization of net actuarial losses (4) (4) Net periodic cost ($5) ($4) The impact of exchange rate fluctuations is included in the amortization of net actuarial losses line above.

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Segment and net sales 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 as described in Note 1, Summary of significant accounting policies included in the Annual Report. The Company uses adjusted operating profit as its measure of segment profit. Certain income and expenses are not allocated to the Companys segments and, thus, the information that management uses to make operating decisions and assess performance does not reflect such amounts. This segment structure reflects the financial information and reports used by the Companys management, specifically its chief operating decision makers (CODM), to make decisions regarding the Companys business, including resource allocations and performance assessments, as well as the current operating focus in compliance with ASC 280, Segment Reporting. The Companys CODM are the Chief Executive Officer and the Chief Financial Officer. The significant expenses reviewed by the CODM include operating costs and costs of sales. The operating costs evaluated by the CODM are primarily SG&A, including depreciation expense on long lived assets and software amortization expense. The CODM use segment adjusted operating profit to evaluate performance and allocate resources (including employees, property, and financial or capital resources) in conjunction with the annual bud …

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Stockholders equity The following table presents a summary of the Companys share activity: Three months ended October 31, 2025 2024 Ordinary shares: Balance at beginning of period 232,171,182 Treasury shares canceled (30,827,929) Ordinary shares canceled (201,343,253) Balance at end of period Common stock: Balance at beginning of period 201,343,253 Common stock issued 201,343,253 Balance at end of period 201,343,253 201,343,253 Treasury shares: Balance at beginning of period (4,759,053) (30,827,929) Treasury shares canceled 30,827,929 Share repurchases (901,308) (1,310,163) Treasury shares used to settle share-based compensation awards 212,660 248,690 Balance at end of period (5,447,701) (1,061,473) Total shares outstanding at end of period 195,895,552 200,281,780 Share Repurchases The Company is currently purchasing shares under an authorization that allows up to $5.0 billion in share repurchases. As of October 31, 2025, the Company had completed $4.2 billion in share repurchases under the authorized program. Ordinary Shares and Treasury shares As of August 1, 2024, the Company canceled all ordinary shares in connection with its completion of the transaction to establish a new corporate structure to domicile our parent company in the United States. As a result, in the first quarter of fiscal 2025, 30,827,929 ordinary shares held in treasury were canceled, 201,343,253 of outstanding ordinary shares not held in treasury were canceled and 201,343,253 shares of common stock were …

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