Cover
Cover - USD ($) | 12 Months Ended | ||
Jul. 31, 2023 | Sep. 08, 2023 | Jan. 31, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --07-31 | ||
Document Period End Date | Jul. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 1-7891 | ||
Entity Registrant Name | DONALDSON COMPANY, INC. | ||
Entity Incorporation, State | DE | ||
Entity Tax Identification Number | 41-0222640 | ||
Entity Address, Street Address | 1400 West 94th Street | ||
Entity Address, City | Minneapolis | ||
Entity Address, State | MN | ||
Entity Address, Postal Zip Code | 55431 | ||
City Area Code | 952 | ||
Local Phone Number | 887-3131 | ||
Title of each class | Common Stock, $5.00 par value | ||
Trading Symbol(s) | DCI | ||
Name of each exchange on which registered | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 7,523,208,549 | ||
Entity Common Stock, Shares Outstanding | 121,242,187 | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement for its 2023 annual meeting of stockholders (the “2023 Proxy Statement”) are incorporated by reference in Part III, as specifically set forth in Part III. | ||
Entity Central Index Key | 0000029644 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Jul. 31, 2023 | |
Auditor Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Minneapolis, Minnesota |
Auditor Firm ID | 238 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Income Statement [Abstract] | |||
Net sales | $ 3,430.8 | $ 3,306.6 | $ 2,853.9 |
Cost of sales | 2,270.2 | 2,239.2 | 1,882.2 |
Gross profit | 1,160.6 | 1,067.4 | 971.7 |
Selling, general and administrative | 602.3 | 554.8 | 519.2 |
Research and development | 78.1 | 69.1 | 67.8 |
Operating expenses | 680.4 | 623.9 | 587 |
Operating income | 480.2 | 443.5 | 384.7 |
Interest expense | 19.2 | 14.9 | 13 |
Other income, net | (7.7) | (9.8) | (9.3) |
Earnings before income taxes | 468.7 | 438.4 | 381 |
Income taxes | 109.9 | 105.6 | 94.1 |
Net earnings | $ 358.8 | $ 332.8 | $ 286.9 |
Weighted average shares – basic (in shares) | 121.8 | 123.7 | 126.4 |
Weighted average shares – diluted (in shares) | 123.6 | 125.2 | 128.2 |
Net earnings per share – basic (in usd per share) | $ 2.95 | $ 2.69 | $ 2.27 |
Net earnings per share – diluted (in usd per share) | $ 2.90 | $ 2.66 | $ 2.24 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 358.8 | $ 332.8 | $ 286.9 |
Other comprehensive income: | |||
Foreign currency translation income (loss) | 34 | (99.6) | 30 |
Pension liability adjustment, net of deferred taxes of $(0.3), $(2.1) and $(11.5), respectively | 0.3 | 7.2 | 35.3 |
Derivatives: | |||
(Loss) gain on hedging derivatives, net of deferred taxes of $0.5, $(2.0) and $(0.2), respectively | (1.4) | 7.2 | 0.8 |
Reclassification of gain (loss) on hedging derivatives to net earnings, net of taxes of $(0.1), $0.5 and $(0.1), respectively | 0.2 | (2.2) | (0.3) |
Total derivatives | (1.2) | 5 | 0.5 |
Net other comprehensive income (loss) | 33.1 | (87.4) | 65.8 |
Comprehensive income | $ 391.9 | $ 245.4 | $ 352.7 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Pension liability adjustment, net of deferred taxes | $ (0.3) | $ (2.1) | $ (11.5) |
Gains on hedging derivatives, net of deferred taxes | 0.5 | (2) | (0.2) |
Reclassifications of (gains) losses on hedging derivatives to net earnings, net of taxes | $ (0.1) | $ 0.5 | $ (0.1) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jul. 31, 2023 | Jul. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 187.1 | $ 193.3 |
Accounts receivable, less allowances of $8.3 and $7.6, respectively | 599.7 | 616.6 |
Inventories, net | 418.1 | 502.4 |
Prepaid expenses and other current assets | 81.1 | 94.2 |
Total current assets | 1,286 | 1,406.5 |
Property, plant and equipment, net | 652.9 | 594.4 |
Goodwill | 481.1 | 345.8 |
Intangible assets, net | 188.1 | 99.8 |
Other long-term assets | 162.4 | 153.8 |
Total assets | 2,770.5 | 2,600.3 |
Current liabilities: | ||
Short-term borrowings | 34.1 | 3.7 |
Current maturities of long-term debt | 125 | 0 |
Accounts payable | 304.9 | 338.5 |
Accrued employee compensation and related taxes | 119.4 | 113.8 |
Deferred revenue | 25.3 | 22.3 |
Income taxes payable | 32.3 | 31.8 |
Dividend payable | 30.4 | 28.3 |
Other current liabilities | 85 | 91.2 |
Total current liabilities | 756.4 | 629.6 |
Long-term debt | 496.6 | 644.3 |
Non-current income taxes payable | 56.5 | 69.4 |
Deferred income taxes | 32.3 | 32.7 |
Other long-term liabilities | 108 | 91.1 |
Total liabilities | 1,449.8 | 1,467.1 |
Commitments and contingencies (Note 18) | ||
Stockholders’ equity: | ||
Preferred stock, $1.00 par value, 1,000,000 shares authorized, none issued | 0 | 0 |
Common stock, $5.00 par value, 240,000,000 shares authorized, 151,643,194 shares issued | 758.2 | 758.2 |
Additional paid-in capital | 24.8 | 17 |
Retained earnings | 2,087.8 | 1,845.7 |
Accumulated other comprehensive loss | (172.5) | (205.6) |
Treasury stock, 30,528,696 and 29,089,612 shares, respectively, at cost | (1,377.6) | (1,282.1) |
Total stockholders’ equity | 1,320.7 | 1,133.2 |
Total liabilities and stockholders’ equity | $ 2,770.5 | $ 2,600.3 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jul. 31, 2023 | Jul. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 8.3 | $ 7.6 |
Preferred stock, par value (in usd per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 5 | $ 5 |
Common stock, shares authorized (in shares) | 240,000,000 | 240,000,000 |
Common stock, shares issued (in shares) | 151,643,194 | 151,643,194 |
Treasury stock, shares (in shares) | 30,528,696 | 29,089,612 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Operating Activities | |||
Net earnings | $ 358.8 | $ 332.8 | $ 286.9 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 92.3 | 93.8 | 95.3 |
Equity in earnings of affiliates, net of distributions | (1) | 0.3 | (2.1) |
Deferred income taxes | (15.3) | (1.4) | (5.9) |
Stock-based compensation expense | 20.4 | 20.4 | 14.2 |
Other, net | 7.3 | 10.6 | 19.6 |
Changes in operating assets and liabilities, excluding effect of acquired businesses: | |||
Accounts receivable, net | 30.1 | (100.8) | (92.7) |
Inventories, net | 99.8 | (147.8) | (56.3) |
Prepaid expenses and other current assets | 16.8 | (10.5) | (5.3) |
Accounts payable | (39) | 51.1 | 106.6 |
Income taxes payable | (11.5) | 4.9 | (3.6) |
Deferred revenue | 2.1 | 8.3 | (1.2) |
Accrued employee compensation and related taxes and other current liabilities | (16.3) | (8.9) | 46.4 |
Net cash provided by operating activities | 544.5 | 252.8 | 401.9 |
Investing Activities | |||
Purchases of property, plant and equipment | (118.5) | (85.5) | (59) |
Proceeds from sale of property, plant and equipment | 0.4 | 0.4 | 0.7 |
Acquisitions, net of cash acquired | (209.2) | (68.9) | 0 |
Net cash used in investing activities | (327.3) | (154) | (58.3) |
Financing Activities | |||
Proceeds from long-term debt | 189.2 | 289.3 | 7.9 |
Repayments of long-term debt | (219.6) | (90) | (170.4) |
Change in short-term borrowings | 30.4 | (43.9) | 45.2 |
Purchase of non-controlling interests | 0 | 0 | (14.4) |
Purchase right exercised in finance lease | 0 | 0 | (13.8) |
Purchase of treasury stock | (141.8) | (170.6) | (142.2) |
Dividends paid | (114.4) | (110.1) | (107.2) |
Tax withholding for stock compensation transactions | (4.3) | (1.8) | (4.2) |
Exercise of stock options | 38.3 | 12.9 | 35.8 |
Net cash used in financing activities | (222.2) | (114.2) | (363.3) |
Effect of exchange rate changes on cash | (1.2) | (14.1) | 5.9 |
Decrease in cash and cash equivalents | (6.2) | (29.5) | (13.8) |
Cash and cash equivalents, beginning of year | 193.3 | 222.8 | 236.6 |
Cash and cash equivalents, end of year | 187.1 | 193.3 | 222.8 |
Supplemental Cash Flow Information | |||
Income taxes paid | 140.9 | 102.4 | 105.9 |
Interest paid | 20.9 | 12.2 | 10.9 |
Supplemental Disclosure of Non-Cash Operating and Investing Transactions | |||
Accrued property, plant and equipment additions | 18.5 | 16.3 | 7 |
Leased assets obtained in exchange for new operating lease liabilities | 32.3 | 17 | 12.4 |
Transfer of operating lease asset and operating lease liability | $ 0 | $ 0 | $ (9.2) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Non- Controlling Interest | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning balance at Jul. 31, 2020 | $ 992.9 | $ 758.2 | $ 0 | $ 1,445.9 | $ 5.8 | $ (184) | $ (1,033) |
Comprehensive income | |||||||
Net earnings | 286.9 | 286.9 | |||||
Foreign currency translation | 30 | 30 | |||||
Pension liability adjustment, net of deferred taxes | 35.3 | 35.3 | |||||
Gains (losses) on hedging derivatives, net of deferred taxes | 0.8 | 0.8 | |||||
Reclassification of gains (losses) on hedging derivatives to net earnings | (0.3) | (0.3) | |||||
Comprehensive income | 352.7 | ||||||
Treasury stock acquired | (142.2) | (142.2) | |||||
Stock options exercised | 35.6 | (5.9) | 41.5 | ||||
Stock compensation expense | 14.2 | 14.3 | (0.1) | ||||
Deferred stock and other activity | (4.3) | (7.4) | (0.9) | 0.1 | 3.9 | ||
Purchase of non-controlling interests | (3.7) | 2.2 | (5.9) | ||||
Dividends declared | (108.1) | (108.1) | |||||
Ending balance at Jul. 31, 2021 | 1,137.1 | 758.2 | 3.2 | 1,623.8 | 0 | (118.2) | (1,129.9) |
Comprehensive income | |||||||
Net earnings | 332.8 | 332.8 | |||||
Foreign currency translation | (99.6) | (99.6) | |||||
Pension liability adjustment, net of deferred taxes | 7.2 | 7.2 | |||||
Gains (losses) on hedging derivatives, net of deferred taxes | 7.2 | 7.2 | |||||
Reclassification of gains (losses) on hedging derivatives to net earnings | (2.2) | (2.2) | |||||
Comprehensive income | 245.4 | ||||||
Treasury stock acquired | (170.6) | (170.6) | |||||
Stock options exercised | 13.3 | (2.5) | 15.8 | ||||
Stock compensation expense | 20.4 | 20.5 | (0.1) | ||||
Deferred stock and other activity | (1.7) | (4.2) | (0.2) | 2.7 | |||
Dividends declared | (110.7) | (110.7) | |||||
Ending balance at Jul. 31, 2022 | 1,133.2 | 758.2 | 17 | 1,845.7 | 0 | (205.6) | (1,282.1) |
Comprehensive income | |||||||
Net earnings | 358.8 | 358.8 | |||||
Foreign currency translation | 34 | 34 | |||||
Pension liability adjustment, net of deferred taxes | 0.3 | 0.3 | |||||
Gains (losses) on hedging derivatives, net of deferred taxes | (1.4) | (1.4) | |||||
Reclassification of gains (losses) on hedging derivatives to net earnings | 0.2 | 0.2 | |||||
Comprehensive income | 391.9 | ||||||
Treasury stock acquired | (141.8) | (141.8) | |||||
Stock options exercised | 36.9 | (5.2) | 42.1 | ||||
Stock compensation expense | 20.4 | 20.2 | 0.2 | ||||
Deferred stock and other activity | (3.5) | (7.2) | (0.3) | 4 | |||
Dividends declared | (116.4) | (116.4) | |||||
Ending balance at Jul. 31, 2023 | $ 1,320.7 | $ 758.2 | $ 24.8 | $ 2,087.8 | $ 0 | $ (172.5) | $ (1,377.6) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares | 12 Months Ended | |||
Jul. 28, 2023 | Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends, per share (in usd per share) | $ 0.25 | $ 0.96 | $ 0.90 | $ 0.86 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jul. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies Description of Business Donaldson Company, Inc. (the Company) is a global leader in technology-led filtration products and solutions. The Company’s core strengths include leading filtration technology, diverse business and a global presence. Products are manufactured and sold around the world to original equipment manufacturers (OEMs), distributors, dealers and directly to end users. Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and all its majority-owned subsidiaries. All intercompany accounts and transactions have been elimin ated. The Company’s joint ventures are not majority-owned and are accounted for under the equity method. Certain reclassifications to previously reported financial information on the Consolidated Balance Sheet, Consolidated Statements of Cash Flows and Consolidated Statements of Changes in Stockholders’ Equity have been made to conform to the current period presentation. Use of Estimates The preparation of the Company’s financial statements in conformity with generally accepted accounting principles (GAAP) in the United States (U.S.) requires management to make estimates and assumptions that affect the amount of assets and liabilities and the disclosures regarding contingent assets and liabilities at period end and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Operating Environment Inflation While inflation was not significant in the fourth quarter or the twelve months of fiscal 2023, as compared to the prior year, the Company continues to experience the effects of the prior year inflation related to raw materials and other expenses, including labor and energy. These inflationary pressures have had an adverse impact on the Company’s profit margins throughout the twelve months of fiscal 2023 when compared to the prior year, however they have been generally mitigated by pricing actions primarily implemented in the prior year. Foreign Currency Translation For most foreign operations, local currencies are considered the functional currency. Assets and liabilities of non-U.S. dollar functional currency entities are translated to U.S. dollars at fiscal year end exchange rates and the resulting gains and losses arising from the translation of net assets located outside the U.S. are recorded as a cumulative translation adjustment, a component of accumulated other comprehensive loss on the Consolidated Balance Sheets. Elements of the Consolidated Statements of Earnings are translated at average exchange rates in effect during the fiscal year. Foreign currency transaction losses are included in other income, net in the Consolidated Statements of Earnings and were $6.4 million, $6.3 million and $2.9 million in the years ended July 31, 2023, 2022 and 2021, respectively. Cash Equivalents The Company considers all highly liquid temporary investments with an original maturity of three months or less to be cash equivalents. Cash equivalents are carried at cost which approximates market value. Revenue Recognition Revenue is measured as the amount of consideration the Company expects to receive in exchange for the fulfillment of performance obligations. The transaction price of a contract could be reduced by variable consideration including volume, purchase rebates and discounts, product refunds and returns. At the time of sale to a customer, the Company records an estimate of variable consideration as a reduction from gross sales. The Company primarily relies on historical experience and anticipated future performance to estimate the variable consideration. Revenue is recognized to the extent it is probable a significant reversal of revenue will not occur when the contingency is resolved. The Company accounts for amounts billed to customers for reimbursement of shipping and handling costs by recording these amounts as revenue and accruing costs when the related revenue is recognized. For most customer contracts, the Company recognizes revenue at a point in time when control of the goods or services is transferred to the customer. For product sales, control is typically deemed to have transferred in accordance with the shipping terms, either at the time of shipment from the plants or distribution centers or the time of delivery to the customers. Revenue is recognized for services upon completion o f those services. Payment terms vary by customer and the geographic location of the customer. The Company’s contracts with customers do not include significant financing components or non-cash consideration. The Company has some contracts with customers where the performance obligations are satisfied over time. Certain customer contracts provide the Company with an enforceable right to payment of the transaction price for performance completed to date and the Company uses either an input or an output method of production to measure the progress towards the completion of the performance obligation in these arrangements, depending on the nature of the contract. The timing of revenue recognized from these products is slightly accelerated compared to revenue recognized at the time of shipment or delivery. The Company generally does not incur significant incremental costs related to obtaining or fulfilling a contract prior to the start of a project. The Company may incur certain fulfillment costs such as initial design or mobilization costs which are capitalized if they relate directly to the contract, if they are expected to generate resources that will be used to satisfy the Company’s performance obligation under the contract and if they are expected to be recovered through revenues generated under the contract. Such costs, which are amortized over the life of the respective project, were not material for any period presented. The Company does not pay upfront sales commissions on contracts when the related contract period is greater than one year and thus has not capitalized any amounts as of July 31, 2023 and 2022 , see Note 3. Shipping and Handling Shipping and handling costs on products sold of $91.2 million , $96.4 million and $79.2 million are classified as a component of operating expenses in the Consolidated Statements of Earnings for the years ended July 31, 2023, 2022 and 2021, respectively. Accounts Receivable, Net and Allowance for Doubtful Accounts Accounts receivable, net are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of credit losses in its existing accounts receivable. The Company determines the allowance based on utilization of a combination of aging schedules with reserve rates applied to both current and aged receivables using historical write-off experience, regional economic data and evaluation of specific customer accounts for risk of loss and changes in current or projected conditions to calculate the allowances related to accounts receivable, net. The Company reviews its allowance for doubtful accounts monthly. Account balances are reviewed on a pooled basis by reporting unit and geographic region and are reserved when the Company determines it is probable the receivable will not be recovered. The Company reduces the receivable and corresponding allowance when it confirms an account is uncollectible. Inventories Inventories are stated at the lower of cost and net realizable value. U.S. inventories are valued using the last-in, first-out (LIFO) method while the non-U.S. inventories are valued using the first-in, first-out (FIFO) method. Inventories valued at LIFO were approximately 29.7% and 31.6% of total inventories as of July 31, 2023 and 2022, respectively. For inventories valued under the LIFO method, the FIFO cost exceeded the LIFO carrying values by $56.1 million and $59.7 million as of July 31, 2023 and 2022, respectively. Results of operations for all periods presented were not materially affected by the liquidation of LIFO inventory. Property, Plant and Equipment Property, plant and equipment are stated at cost. Additions, improvements or major renewals are capitalized while expenditures that do not enhance or extend the asset’s useful life are expensed as incurred. Depreciation is computed using the straight-line method. Depreciation expense was $80.9 million, $85.1 million and $87.1 million in the years ended July 31, 2023, 2022 and 2021, respectively. The estimated useful lives of property, plant and equipment are 10 to 40 years for buildings, including building improvements and three Internal-Use Software and Cloud Computing Arrangements The Company capitalizes direct costs of materials and services used in the development and purchase of internal-use software. Amounts capitalized are amortized on a straight-line basis over a period of five The Company capitalizes certain costs incurred during the application development stage of implementation of internal-use software in cloud computing arrangements. Amounts capitalized are amortized on a straight-line basis over a period of five Goodwill and Intangible Assets Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations under the purchase method of accounting. Goodwill is assessed for impairment annually or if an event occurs or circumstances change that would indicate the carrying amount may be impaired. The Company performed its annual impairment assessment during the third quarter of fiscal 2023. The goodwill impairment assessment is conducted at a reporting unit level, which is one level below the operating segment level and utilizes either a qualitative or quantitative assessment. The Company determined the fair value for all its reporting units was substantially in excess of their respective carrying values and there were no indicators of impairment for any of the reporting units evaluated. In addition, as a result of the organizational redesign, the Company performed a qualitative impairment assessment based on the new segments in the second quarter of fiscal 2023 and concluded there was no impairment. An impairment loss would be recognized when the carrying amount of a reporting unit’s net assets exceeds the estimated fair value of the reporting unit, see Note 6. Intangible assets, comprised of customer relationships, patents, trademarks, technology and non-compete agreements, are amortized on a straight-line basis over their estimated useful lives of less than one year to 20 years. Business Combinations The Company allocates the purchase price of acquired businesses to the estimated fair values of the assets acquired and liabilities assumed, as well as any contingent consideration, where applicable, as of the date of acquisition. The fair values of the long-lived assets acquired, primarily intangible assets, are determined using calculations which can be complex and require significant judgment. Estimates include many factors such as the nature of the acquired company’s business, its historical financial position and results, technology obsolescence, customer retention rates, discount rates, royalty rates and expected future performance. Independent valuation specialists are used to assist in determining certain fair value calculations. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Any adjustments required after the measurement period are recorded in the Consolidated Statements of Earnings. Recoverability of Long-Lived Assets The Company reviews its long-lived assets, including identifiable intangibles, for impairment when events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. If impairment indicators are present and the estimated future undiscounted cash flows are less than the carrying value of the assets, the carrying value is reduced to the fair market value. There were no indicators of impairment or impairment charges recorded for the years ended July 31, 2023, 2022 and 2021. Income Taxes The provision for income taxes is computed based on the pretax income reported for financial statement purposes. Deferred tax assets and liabilities are recognized for the expected future tax consequences attributed to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are anticipated to reverse. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not a tax benefit will not be realized. The Company maintains a reserve for uncertain tax benefits. Benefits of tax return positions are recognized in the financial statements when the position is more likely than not to be sustained by the taxing authorities based solely on the technical merits of the position. If the recognition threshold is met, the tax benefit is measured and recognized as the largest amount of tax benefit that is greater than 50% likely to be realized, in the Company’s judgment, see Note 8. Leases The Company determines whether an arrangement that provides control over the use of an asset to the Company is a lease. The Company recognizes a lease liability and corresponding right-of-use asset on the Consolidated Balance Sheets based on the present value of future lease payments and recognizes lease expense on a straight-line basis over the lease term. Operating lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term (or at fair values in the case of those leases assumed in an acquisition). Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets and are expensed on a straight-line basis over the lease term. Variable lease expense is immaterial and primarily includes leases with payments indexed to inflation when the index changes after lease commencement. The Company has elected to separate payments fo r lease components from non-lease components for all asset classes. Lease agreements may include extension, termination or purchase options, all of which are considered in calculating the lease liability and right-of-use asset when it is reasonably certain the Company will exercise an option. The Company’s incremental borrowing rate on the commencement date is used to calculate the present value of future payments for most leases since the rate implicit in the lease is generally not readily determinable. These rates are assessed on a quarterly basis for measurement of new lease obligations, see Note 9. Stock-Based Compensation Stock-based compensation expense is recognized using the fair value method for all awards, see Note 13. Treasury Stock Repurchased common stock is stated at cost, determined on an average cost basis and is presented as a reduction of stockholders’ equity on the Consolidated Balance Sheets. Research and Development Expenses Research and development expenses include scientific research costs such as salaries, facility costs, testing, technical information technology and administrative expenditures. Research and development expenses are for the application of scientific advances to the development of new and improved products and their uses. Substantially all research and development is performed in-house. Expenses are charged against earnings in the year incurred. Foreign Currency Forward Contracts - Cash Flow Hedges and Derivatives Not Designated as Hedging Instruments The Company buys materials from foreign suppliers. Those transactions can be denominated in those suppliers’ local currency. The Company also sells to customers in foreign countries. Those transactions can be denominated in those customers’ local currency. Both of these transaction types can create volatility in the Company’s financial statements. The Company uses foreign currency forward contracts to manage those exposures and fluctuations. These contracts generally mature in 12 months or less, which is consistent with the forecasts of the rel ated purchases and sales. Certain contracts are designated as cash flow hedges, whereas the remaining contracts, most of which are related to certain intercompany transactions which offset balance sheet exposure, are not designated as hedging instruments, see Notes 12, 15 and 16. Net Investment Hedges The Company uses fixed-to-fixed cross-currency swap agreements to hedge its exposure to adverse foreign currency exchange rate movements for its operations in Europe. The Company has elected the spot method for designating these contracts as net investment hedges. The maturity dates range from 2027 to 2029 , see Notes 12, 15 and 16. Interest Rate Swaps - Cash Flow Hedges The Company uses swap agreements to hedge exposure related to interest expense and to manage its exposure to interest rate movements. The Company enters into interest rate s wap agreements designated as cash flow hedges to hedge future fixed-rate debt issuances, which effectively fix a portion of interest payments. The Company entered into and terminated agreements within fiscal 2021, see Notes 12, 15 and 16. Product Warranties The Company provides for estimated warranty expense at the time of sale and accrues for specific items at the time their existence is known and the amounts are determinable. The Company estimates warranty expense on certain products at the time of sale using quantitative measures based on historical warranty claim experience and evaluation of specific customer warranty issues, see Note 18. New Significant Accounting Standards Recently Adopted There were no new significant accounting standards adopted in fiscal 2023 or 2022 that had a material impact on the Company’s financial statements. New Significant Accounting Standards Not Yet Adopted The Company considers the applicability and impact of the FASB’s ASUs issued but not yet adopted. The Company assessed ASUs not listed above and determined they were either not applicable or were not expected to have a material impact on the Company’s financial reporting. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606) as if the entity had originated the contracts. The guidance is effective for fiscal years beginning after December 15, 2022, with early application permitted. This ASU is applicable to the Company’s fiscal year beginning in the first quarter of fiscal 2024. This guidance is applicable to all business combinations occurring after the effective date. In June 2022, the FASB issued ASU 2022-03, which amends Fair Value Measurement (Topic 820), Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (ASU 2022-03). This guidance clarifies guidance for fair value measurement of an equity security subject to a contractual sale restriction and establishes new disclosure requirements for such equity securities. The guidance is effective for fiscal years beginning after December 15, 2023, with early application permitted. The Company is currently evaluating the impact the adoption will have on its financial statements. |
Acquisitions
Acquisitions | 12 Months Ended |
Jul. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Note 2. Acquisitions Univercells Technologies (UTEC) On June 29, 2023, the Company acquired UTEC, headquartered in Nivelles, Belgium, for cash consideration of €134.2 million, or $146.9 million, net of cash acquired. UTEC is a global producer of innovative biomanufacturing solutions for cell and gene therapy research, development and commercial manufacturing. UTEC is reported within the Company’s Life Sciences segment. The Company assigned the fair values to the net assets acquired resulting in $97.0 million for goodwill and $51.6 million for intangible assets, as well as a deferred tax liability of $12.9 million and a deferred tax asset of $7.0 million, none of which are expected to be deductible for tax purposes. Net working capital was $(0.9) million. The purchase price allocation for this acquisition is preliminary pending the outcome of the final valuations of the net assets acquired. Net sales of UTEC were immaterial to the Consolidated Statements of Earnings for the year ended July 31, 2023. Management expects to finalize the purchase accounting by the fourth quarter of fiscal 2024 . Isolere Bio, Inc. (Isolere) On February 17, 2023, the Company acquired Isolere, headquartered in Durham, North Carolina, for cash consideration of $62.3 million, net of cash acquired. Isolere develops reagents and accompanying filtration processes used for the purification and streamlined manufacturing of biopharmaceuticals. Isolere is reported within the Company’s Life Sciences segment. The Company assigned the fair values to the net assets acquired resulting in $28.1 million for goodwill and $44.5 million for intangible assets, as well as a deferred tax liability of $10.9 million, none of which are expected to be deductible for tax purposes. Net working capital was $(0.4) million. The purchase price allocation for this acquisition is preliminary pending the outcome of the final valuations of the contingent liabilities acquired. Net sales of Isolere were immaterial to the Consolidated Statements of Earnings for the year ended July 31, 2023. Management expects to finalize the purchase accounting by the first quarter of fiscal 2024. Purchase Price Summary The components of the UTEC and Isolere acquisitions, net of cash acquired, as of the acquisition date were as follows (in millions): 2023 Intangible assets: Technology $ 84.0 Trademarks and tradenames 8.2 Customer relationships 1.2 Non-competition agreements 2.7 Intangible assets acquired 96.1 Tangible assets, net 9.6 Assets acquired, net 105.7 Goodwill 125.1 Aggregate purchase price 230.8 Add deferred tax asset 7.0 Less deferred tax liability (23.8) Less cash acquired (4.8) Acquisitions, net of cash acquired $ 209.2 Purilogics, LLC (Purilogics) On June 13, 2022, the Company acquired Purilogics, headquartered in Greenville, South Carolina, for cash consideration of approximately $19.9 million, net of cash acquired. The transaction included a maximum payout of $29.0 million in contingent consideration related to developing manufacturing capabilities, creating future technologies and attaining certain business performance results. Purilogics is a biotechnology company that leverages a novel technology platform for the development of membrane chromatography products. Purilogics offers a broad portfolio of purification tools for a wide range of biologics. Purilogics’ proprietary formulations and processes create membranes that have significant competitive advantages, enabling faster and more cost-effective production of increasingly complex biologic drugs. Purilogics is reported within the Company’s Life Sciences segment. Purchase accounting was finalized in the second quarter of fiscal 2023. Net sales of Purilogics were immaterial to the Consolidated Statements of Earnings for the year ended July 31, 2022. Solaris Biotechnology S.r.l. (Solaris) On November 22, 2021, the Company acquired Solaris, headquartered in Porto Mantovano, Italy, with U.S. operations based in Berkeley, California, for cash consideration of approximately €41 million, or $45.7 million, net of cash acquired. Solaris designs and manufactures bioprocessing equipment, including bioreactors, fermenters and tangential flow filtration systems for use in food and beverage, biotechnology and other life sciences markets. Solaris is reported within the Company’s Life Sciences segment. Purchase accounting was finalized in the fourth quarter of fiscal 2022. Net sales of Solaris were immaterial to the Consolidated Statements of Earnings for the year ended July 31, 2022. Pearson Arnold Industrial Services (PAIS) On November 1, 2021, the Company acquired PAIS, headquartered in the U.S., for cash consideration of approximately $3.3 million, net of cash acquired. PAIS provides equipment, parts and services for dust, mist and fume collection systems, industrial fans and compressed air systems. PAIS is reported within the Company’s Industrial Filtration Solutions (IFS) business in the Industrial Solutions segment. Goodwill and intangible assets acquired are deductible for tax purposes. Purchase accounting was finalized in the fourth quarter of fiscal 2022. Net sales of PAIS were immaterial to the Consolidated Statements of Earnings for the year ended July 31, 2022. Purchase Price Summary The components of acquisitions, net of cash acquired in fiscal 2022, as of each acquisition date (in millions): Intangible assets: Technology $ 45.9 Trademarks and tradenames 4.0 Customer relationships 3.0 Non-competition agreements 0.6 Backlog 0.2 Intangible assets acquired 53.7 Tangible liabilities, net (2.7) Assets acquired, net 51.0 Goodwill 42.8 Aggregate purchase price 93.8 Less contingent consideration (24.6) Less cash acquired (0.3) Acquisitions, net of cash acquired $ 68.9 Pro forma Financial Information Pro forma financial information for these acquisitions has not been presented because the acquisitions were not material to the Company’s Consolidated Statements of Earnings. See Note 6 for goodwill and intangible assets acquired. Contingent Compensation and Consideration Purilogics The Company’s acquisition purchase agreement with Purilogics includes deferred payment provisions representing potential milestone payments for its former owners. The provisions are made up of two general types of arrangements, contingent compensation and contingent consideration. The contingent compensation arrangement is contingent on the former owner’s future employment with the Company and the related amounts are recognized over the required employment period. The contingent consideration is not contingent on employment and is recorded as purchase consideration in both other current and other long-term liabilities on the Consolidated Balance Sheets at the time of the initial acquisition based on the fair value of the estimated liability. The amounts are paid over a three The total contingent compensation arrangement liability wa s $1.1 million and $0.1 million as of July 31, 2023 and 2022, respectively, which was included in other long-term liabilities on the Consolidated Balance Sheets. The maximum payout of the contingent compensation arrangement upon completion of the future performance periods was $3.0 million, inclusive of the $1.1 million and $0.1 million accrued as of July 31, 2023 and 2022, respectively. The Company primarily determines the contingent consideration liability based on the forecasted probability of achieving certain milestones. The contingent consideration liability is measured at fair value each reporting period and changes in estimates of fair value are recognized in earnings. The total contingent consideration liability was $23.2 million and $23.0 million as of July 31, 2023 and 2022, respectively and was included in other current and other long-term liabilities on the Consolidated Balance Sheets. The maximum payout of the contingent consideration was $29.0 million, inclusive of the $23.2 million and $23.0 million accrued as of July 31, 2023 and 2022, respectively. For additional discussion regarding the fair value of the Company’s contingent consideration liability, see Note 16. Other Acquisitions For other acquisitions, the total contingent compensation arrangement liability was $0.9 million and $0.3 million as of July 31, 2023 and 2022, respectively, which was included in other long-term liabilities on the Consolidated Balance Sheets. The maximum payout of the contingent compensation arrangement upon completion of the future performance periods was $3.1 million, which terminates five years from acquisition date of November 22, 2021. This is inclusive of the $0.9 million and $0.3 million accrued as of July 31, 2023 and 2022, respectively. The total contingent consideration liability was $1.7 million as of July 31, 2023 and 2022, respectively, of which , $0.0 million and $0.3 million, respectively, was included in other current liabilities and $1.7 million and $1.4 million, respectively, was included in other long-term liabilities on the Consolidated Balance Sheets. The maximum payout of the contingent consideration was $1.7 million, which terminates three years from acquisition date of November 1, 2021 and was fully accrued as of July 31, 2023 and 2022, respectively. |
Revenue
Revenue | 12 Months Ended |
Jul. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 3. Revenue The Company recognizes revenue on a wide range of filtration solutions sold to customers in many industries around the globe. Most of the Company’s performance obligations within customer sales contracts are for manufactured filtration systems and replacement parts. The Company also performs limited services and installation. Customer contracts may include multiple performance obligations and the transaction price is allocated to each distinct performance obligation based on its relative standalone selling price. Revenue Disaggregation Net sales, generally disaggregated by location where the customer’s order was placed, were as follows (in millions): Year Ended July 31, 2023 2022 2021 U.S. and Canada $ 1,464.7 $ 1,336.8 $ 1,084.2 Europe, Middle East and Africa (EMEA) 1,007.8 963.6 865.7 Asia Pacific (APAC) 608.8 669.0 649.2 Latin America (LATAM) 349.5 337.2 254.8 Total net sales $ 3,430.8 $ 3,306.6 $ 2,853.9 See Note 19 for net sales disaggregated by segment and business unit. Contract Assets and Liabilities The satisfaction of performance obligations and the resulting recognition of revenue typically correspond with billing of the customer. In limited circumstances, the customer may be billed at a time later than when revenue is recognized, resulting in contract assets, which are reported in other current assets on the Consolidated Balance Sheets. Contract assets were $13.3 million and $17.7 million as of July 31, 2023 and 2022, respectively. In other limited circumstances, the customer may make a payment at a time earlier than when revenue is recognized and prior to the satisfaction of performance obligations, resulting in contract liabilities, which are reported in deferred revenue on the Consolidated Balance Sheets. Contract liabilities were $25.3 million and $22.3 million as of July 31, 2023 and 2022, respectively. The Company will recognize revenue in future periods related to remaining performance obligations for certain open contracts. Generally, these contracts have terms of one year or less. The amount of revenue related to unsatisfied performance obligations in which the original duration of the contract is greater than one year is not significant. None of the Company’s contracts contained a significant financing component. |
Inventories, Net
Inventories, Net | 12 Months Ended |
Jul. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 4. Inventories, Net The components of inventories, net were as follows (in millions): July 31, 2023 2022 Raw materials $ 155.1 $ 197.6 Work in process 50.9 56.1 Finished products 212.1 248.7 Total inventories, net $ 418.1 $ 502.4 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Jul. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Note 5. Property, Plant and Equipment, Net The components of property, plant and equipment, net were as follows (in millions): July 31, 2023 2022 Land $ 29.3 $ 25.6 Buildings 430.8 396.2 Machinery and equipment 989.0 940.1 Computer software 142.0 141.0 Construction in progress 107.7 72.1 Less accumulated depreciation (1,045.9) (980.6) Total property, plant and equipment, net $ 652.9 $ 594.4 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jul. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 6. Goodwill and Intangible Assets Goodwill The Company allocates goodwill to reporting units within its Mobile Solutions, Industrial Solutions and Life Sciences segments. There were no dispositions or impairment charges recorded during the years ended July 31, 2023, 2022 and 2021. Goodwill is assessed for impairment annually during the third quarter of the fiscal year, or more frequently if events or changes in circumstances indicate the asset may be impaired. The Company performed its annual impairment assessment during the third quarter of fiscal 2023 and did not record any impairment as a result of this assessment. In addition, as a result of the organizational redesign, the Company performed a qualitative impairment assessment based on the new segments in the second quarter of fiscal 2023 and concluded there was no impairment. Goodwill by reportable segment was as follows (in millions): Mobile Industrial Life Sciences Segment Total Balance as of July 31, 2021 (1) $ 25.6 $ 296.9 $ — $ 322.5 Goodwill acquired — 2.1 40.7 42.8 Foreign exchange translation (0.3) (16.9) (2.3) (19.5) Balance as of July 31, 2022 (1) $ 25.3 $ 282.1 $ 38.4 $ 345.8 Goodwill acquired — — 125.1 125.1 Foreign exchange translation 0.2 7.0 3.0 10.2 Balance as of July 31, 2023 $ 25.5 $ 289.1 $ 166.5 $ 481.1 (1) All prior segment information has been recast to reflect the Company’s new segment structure and current period presentation (see Note 19). Intangible Assets Intangible assets preliminarily recognized from the UTEC acquisition were $51.6 million, of which $42.3 million was technology with an 18 year useful life, $6.7 million was trademarks with a 10 year useful life, $1.4 million was non-competition agreements with a 2 year useful life and $1.2 million was customer relationships with a 20 year useful life. Intangible assets recognized from the Isolere acquisition were $44.5 million, of which $41.7 million was technology with a 20 year useful life, trademarks and tradenames were $1.5 million with a 10 year useful life and non-competition agreements were $1.3 million with a three year useful life. Intangible assets recognized from the Purilogics acquisition in fiscal 2022 were $29.9 million, of which $28.6 million was technology with a 20 year useful life, trademarks and tradenames were $0.7 million with a 10 year useful life and non-competition agreements were $0.6 million with a five year useful life. Intangible assets recognized from other acquisitions in fiscal 2022 were $23.8 million, of which technology was $17.3 million with a 15 year useful life, trademarks and tradenames were $3.3 million with a 10 year useful life, customer relationships were $3.0 million with a 20 year useful life and backlog was $0.2 million with a six month useful life. There was a foreign currency translation gain of $3.2 million in fiscal 2023 and translation loss of $6.3 million in fiscal 2022. Intangible asset classes were as follows (in millions): Year Ended July 31, 2023 Weighted Amortizable Life (in Years) Gross Carrying Amount Accumulated Amortization Net Customer relationships 10.8 $ 107.8 $ (65.6) $ 42.2 Patents 18.9 33.4 (6.3) 27.1 Trademarks 9.0 15.9 (3.9) 12.0 Technology 17.2 116.3 (12.9) 103.4 Non-compete agreements 3.1 4.0 (0.6) 3.4 Total intangible assets $ 277.4 $ (89.3) $ 188.1 Year Ended July 31, 2022 Weighted Amortizable Life (in Years) Gross Carrying Amount Accumulated Amortization Net Customer relationships 11.4 $ 104.0 $ (60.2) $ 43.8 Patents 19.9 33.4 (4.7) 28.7 Trademarks 7.9 7.3 (2.6) 4.7 Technology 12.0 30.6 (9.1) 21.5 Non-compete agreements 6.4 1.2 (0.1) 1.1 Total intangible assets $ 176.5 $ (76.7) $ 99.8 Intangible asset amortization expense was $11.4 million, $9.2 million and $8.2 million for the fiscal 2023, 2022 and 2021, respectively and is included in operating expenses in the Consolidated Statements of Earnings. Amortization expense relating to existing intangible assets as of July 31, 2023 was as follows (in millions): 2024 $ 15.2 2025 15.0 2026 13.9 2027 13.4 2028 13.0 Thereafter 117.6 Total amortization expense $ 188.1 |
Short-Term Borrowings and Long-
Short-Term Borrowings and Long-Term Debt | 12 Months Ended |
Jul. 31, 2023 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings and Long-Term Debt | Note 7. Short-Term Borrowings and Long-Term Debt Short-Term Borrowings Short-term borrowings were as follows (in millions): European Commercial Paper Program U.S. Credit Facilities European Operations Credit Facilities Rest of the World Credit Facilities Total Year Ended July 31, 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Available credit facilities $ 110.3 $ 102.1 $ 100.0 $ 100.0 $ 45.0 $ 42.4 $ 50.8 $ 52.8 $ 306.1 $ 297.3 Reductions to borrowing capacity: Outstanding borrowings 24.3 — 9.8 — — — — 3.7 34.1 3.7 Other non-borrowing reductions — — — — 28.8 27.0 18.8 19.1 47.6 46.1 Total reductions 24.3 — 9.8 — 28.8 27.0 18.8 22.8 81.7 49.8 Remaining borrowing capacity $ 86.0 $ 102.1 $ 90.2 $ 100.0 $ 16.2 $ 15.4 $ 32.0 $ 30.0 $ 224.4 $ 247.5 Weighted average interest rate as of July 31, 2023 and 2022 4.09 % N/A 6.17 % N/A N/A N/A N/A 0.37 % 4.69 % 0.37 % Other non-borrowing reductions include financial instruments such as bank guarantees and foreign currency exchange instruments. Commitment fees for the years ended July 31, 2023 and 2022 were not material. Long-Term Debt Long-term debt was as follows: Interest Rate Outstanding Balance Financial Instrument Fixed or Variable Amount Maturity Date July 31, 2023 July 31, 2022 July 31, 2023 July 31, 2022 Unsecured senior notes Fixed $125.0 million March 27, 2024 3.72 % 3.72 % $ 125.0 $ 125.0 Unsecured senior notes Fixed $125.0 million June 17, 2030 3.18 % 3.18 % 125.0 125.0 Unsecured senior notes Fixed $100.0 million August 5, 2031 2.50 % 2.50 % 100.0 100.0 Unsecured revolving credit facility Variable $500.0 million May 21, 2026 5.09 % 2.88 % 96.2 125.0 Unsecured term loan Variable €80.0 million October 28, 2024 4.41 % 0.91 % 88.2 81.7 Unsecured senior notes Fixed $50.0 million November 5, 2028 2.12 % 2.12 % 50.0 50.0 Unsecured senior notes Fixed $25.0 million April 16, 2025 2.93 % 2.93 % 25.0 25.0 Unsecured term loan Variable ¥1.0 billion July 31, 2028 0.57 % 0.41 % 7.0 7.5 Unsecured term loan Variable ¥1.0 billion July 15, 2026 0.49 % 0.49 % 7.0 7.5 Debt issuance costs, net (1.8) (2.4) Subtotal 621.6 644.3 Less current maturities (125.0) — Total long-term debt $ 496.6 $ 644.3 The Company’s $500.0 million revolving credit facility is with a group of lenders and allows for borrowings in multiple currencies. The interest rate is calculated using the appropriate benchmark rate plus the applicable rate. The borrowing availability can be reduced or the agreement terminated early at the option of the Company. The Company can request to increase the revolving credit facility by up to $250.0 million, subject to terms of the credit facility agreement, including written notification and lender acceptance, through an accordion feature. Borrowings are automatically rolled over until the credit facility maturity date, unless the agreement is terminated early or the Company is found to be in default. The total facility includes a commitment fee of 0.08% to 0.25%, depending on the Company’s leverage ratio. Certain debt agreements contain financial c ovenants related to interest coverage and leverage ratios, as well as other non-financial covenants. As of July 31, 2023, the Company was in compliance with all such covenants. The Company has long-term borrowing capacity of $396.3 million available for further borrowing under the existing credit facility as of July 31, 2023. The remaining borrowing capacity has been reduced for standby letters of credit as discussed in Note 17. Future maturities of the Company’s long-term debt as of July 31, 2023 were as follows (in millions): 2024 $ 125.0 2025 113.2 2026 103.2 2027 — 2028 7.0 Thereafter 275.0 Total future maturities payments 623.4 Less debt issuance costs, net (1.8) Total future maturities payments, net of debt issuance costs $ 621.6 |
Income Taxes
Income Taxes | 12 Months Ended |
Jul. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8. Income Taxes The components of earnings before income taxes were as follows (in millions): Year Ended July 31, 2023 2022 2021 U.S. $ 178.0 $ 132.8 $ 114.1 Foreign 290.7 305.6 266.9 Total $ 468.7 $ 438.4 $ 381.0 The components of the provision for income taxes were as follows (in millions): Year Ended July 31, 2023 2022 2021 Current Federal $ 38.1 $ 17.4 $ 13.2 State 7.3 4.9 3.9 Foreign 79.8 84.7 82.9 Total current 125.2 107.0 100.0 Deferred Federal (13.3) 2.8 (1.9) State (1.8) (0.3) (0.2) Foreign (0.2) (3.9) (3.8) Total deferred (15.3) (1.4) (5.9) Total provision for income taxes $ 109.9 $ 105.6 $ 94.1 The reconciliation of the U.S. statutory federal income tax rate with the effective income tax rate was as follows: Year Ended July 31, 2023 2022 2021 U.S. statutory federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes 0.9 0.9 0.8 Foreign operations 3.8 3.6 4.4 Global Intangible Low Tax Income 0.2 0.3 0.6 Foreign Derived Intangible Income (1.6) (0.6) (0.7) Research and development credit (0.7) (0.6) (0.7) Change in unrecognized tax benefits — (0.8) 0.2 Tax benefits on stock-based compensation (0.7) (0.5) (1.0) Other 0.5 0.8 0.1 Effective income tax rate 23.4 % 24.1 % 24.7 % The tax effects of temporary differences that give rise to deferred tax assets and liabilities were as follows (in millions): July 31, 2023 2022 Deferred tax assets Accrued expenses $ 12.2 $ 11.6 Compensation and retirement plans 24.7 26.4 Capitalization of R&D costs 17.6 — Net operating loss (NOL) and tax credit carryforwards 15.1 6.4 Operating lease assets 15.0 11.6 Other 6.2 6.4 Gross deferred tax assets 90.8 62.4 Valuation allowance (6.4) (3.4) Deferred tax assets, net of valuation allowance 84.4 59.0 Deferred tax liabilities Depreciation and amortization (79.5) (57.0) Operating lease liabilities (15.1) (11.6) Other (4.2) (2.4) Deferred tax liabilities (98.8) (71.0) Net deferred tax liability $ (14.4) $ (12.0) The activity in the NOL and tax credit valuation allowances was as follows (in millions): Year Ended July 31, 2023 2022 2021 Balance as of beginning of year $ (3.4) $ (4.6) $ (8.1) Additions charged to costs and expenses (3.0) (0.9) (0.8) Deductions from reserves — 2.1 4.3 Balance as of end of year $ (6.4) $ (3.4) $ (4.6) As of July 31, 2023, the Company had def erred tax assets related to U.S. federal foreign tax credits of $3.9 million, related to state research and development credits of $3.6 million and related to foreign operating loss carryovers of $7.1 million. The U.S. federal tax credits will expire after 10 years, the state portion after one r a valuation allowance against certain of these deferred tax assets based on management’s determination it is more likely than not the tax benefits related to these assets will not be realized. As of July 31, 2023, the total undistributed earnings of the Company’s non-U.S. subsidiaries were $1.3 billion , of which $943.6 million were not considered indefinitely reinvested. The Company is subject to foreign withholding taxes on a small portion of these earnings distributable in the future in the form of dividends. Thus, the Company provides for foreign withholding taxes payable upon future dividend distributions of the earnings not considered indefinitely reinvested annually. For the year ended July 31, 2023, the Company recognized a tax charge of $3.6 million related to these foreign withholding taxes. The remaining $355.1 million of earnings are considered indefinitely reinvested and it is not practicable to estimate, within any reasonable range, the additional taxes that may be payable on the potential distribution of the portion of the undistributed earnings considered indefinitely reinvested. The transition tax related to the U.S. Tax Cuts and Jobs Act of 2017 on undistributed earnings was accrued in fiscal 2018 and it is payable over an eight year period. The portion not due within 12 months classified in non-current income taxes payable on the Consolidated Balance Sheets as of July 31, 2023 was $39.8 million. The reconciliation of the beginning and ending amount of gross unrecognized tax benefits was as follows (in millions): Year Ended July 31, 2023 2022 2021 Balance as of beginning of year $ 15.2 $ 18.7 $ 16.9 Additions for tax positions of the current year 2.5 2.7 4.7 Additions for tax positions of prior years — — 2.7 Reductions for tax positions of prior years 0.1 (1.1) (1.0) Reductions due to lapse of applicable statute of limitations (2.8) (5.1) (4.6) Balance as of end of year $ 15.0 $ 15.2 $ 18.7 The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income taxes in the Consolidated Statements of Earnings. As of July 31, 2023 and 2022, accrued interest and penalties on a gross basis were $1.7 million and $1.1 million, respectively. During the year ended July 31, 2023, the Company recognized interest expense, net of tax benefit, of $0.7 million. If the Company were to prevail on all unrecognized tax benefits recorded, substantially all the unrecognized tax benefits would benefit the effective tax rate. With an average statute of limitations of five years, up to $4.0 million of the unrecognized tax benefits could potentially expire in the next 12 months, unless extended by an audit. The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The U.S. Internal Revenue Service has completed examinations of the Company’s U.S. federal income tax returns through fiscal 2019 . With few exceptions, the Company is no longer subject to state and foreign income tax examinations by tax authorities for years before fiscal 2018. The Company believes it is remote that any adjustment necessary to the reserve for income taxes for the next 12 months will be material. However, it is possible the ultimate resolution of audits or disputes may result in a material change to the Company’s reserve for income taxes, although the quantification of such potential adjustments cannot be made at this time. |
Leases
Leases | 12 Months Ended |
Jul. 31, 2023 | |
Leases [Abstract] | |
Leases | Note 9. Leases The Company enters into operating leases primarily for office, production and warehouse facilities, production and non-production equip ment, automobiles and computer equipment. As of July 31, 2023 and 2022, the Company had no financing lease obligations. The Company’s operating lease costs were as follows (in millions): Year Ended July 31, 2023 2022 Operating lease cost $ 24.5 $ 21.4 Short-term lease cost 3.2 3.1 Total lease costs $ 27.7 $ 24.5 Supplemental balance sheet information for the Company was as follows (in millions): July 31, Balance Sheet Location 2023 2022 Right-of-use lease assets Other long-term assets $ 59.4 $ 44.7 Current lease liabilities Other current liabilities $ 17.8 $ 16.3 Long-term lease liabilities Other long-term liabilities $ 42.4 $ 28.5 Additional information related to operating leases was as follows: July 31, 2023 2022 Weighted average remaining lease term (years) 4.2 3.4 Weighted average discount rate 3.89 % 3.17 % Remaining payments for operating leases having initial terms of more than one year as of July 31, 2023 were as follows (in millions): 2024 $ 19.6 2025 15.2 2026 11.3 2027 8.1 2028 5.7 Thereafter 5.3 Total future lease payments 65.2 Less imputed interest 5.0 Present value of future lease payments $ 60.2 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jul. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 10. Earnings Per Share Basic net earnings per share (EPS) is computed by dividing net earnings by the weighted average number of outstanding common shares. Diluted net EPS is computed by dividing net earnings by the weighted average number of outstanding common shares and common share equivalents relating to stock options and other stock incentive plans. Basic and diluted net EPS calculations were as follows (in millions, except per share amounts): Year Ended July 31, 2023 2022 2021 Net earnings $ 358.8 $ 332.8 $ 286.9 Weighted average common shares outstanding Weighted average common shares – basic 121.8 123.7 126.4 Dilutive impact of stock-based awards 1.8 1.5 1.8 Weighted average common shares – diluted 123.6 125.2 128.2 Net EPS – basic $ 2.95 $ 2.69 $ 2.27 Net EPS – diluted $ 2.90 $ 2.66 $ 2.24 Stock options excluded from net EPS calculation 0.0 1.6 0.8 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jul. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Note 11. Stockholders’ Equity Share Repurchases The Company’s Board of Directors has authorized the repurchase of up to 13.0 million shares of common stock under the Company’s stock repurchase plan. This repurchase authorization is effective until terminated by the Board of Directors. During the year ended July 31, 2023, the Company repurchased 2.5 million shares for $141.8 million. During the year ended July 31, 2022, the Company repurchased 2.9 million shares for $170.6 million. As of July 31, 2023, the Company had remaining authorization to repurchase 2.9 million shares under this plan. Treasury stock share activity was as follows: Year Ended July 31, 2023 2022 Balance as of beginning of year 29,089,612 26,620,560 Stock repurchases 2,485,000 2,900,000 Net issuance upon exercise of stock options (941,837) (360,448) Issuance under compensation plans (84,942) (52,678) Other activity (19,137) (17,822) Balance as of end of year 30,528,696 29,089,612 Dividends Paid and Declared Dividends paid were 94.0 cents and 89.0 cents per common share for the years ended July 31, 2023 and 2022, respectively. On July 28, 2023, the Company’s Board of Directors declared a cash dividend in the amount of 25.0 cents per common share, payable August 30, 2023, to stockholders of record as of August 15, 2023. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Jul. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note 12. Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss for the years ended July 31, 2023 and 2022 were as follows (in millions): Foreign Pension Derivative Total Balance as of July 31, 2022, net of tax $ (143.6) $ (67.5) $ 5.5 $ (205.6) Other comprehensive income (loss) before reclassifications and tax 34.0 (6.9) (1) (1.9) 25.2 Tax benefit — 2.2 0.5 2.7 Other comprehensive income (loss) before reclassifications, net of tax 34.0 (4.7) (1.4) 27.9 Reclassifications, before tax — 7.5 (2) 0.3 7.8 Tax expense — (2.5) (0.1) (2.6) Reclassifications, net of tax — 5.0 0.2 (3) 5.2 Other comprehensive income (loss), net of tax 34.0 0.3 (1.2) 33.1 Balance as of July 31, 2023, net of tax $ (109.6) $ (67.2) $ 4.3 $ (172.5) Balance as of July 31, 2021, net of tax $ (44.0) $ (74.7) $ 0.5 $ (118.2) Other comprehensive (loss) income before reclassifications and tax (99.6) (6.2) (1) 9.2 (96.6) Tax benefit (expense) — 1.4 (2.0) (0.6) Other comprehensive (loss) income before reclassifications, net of tax (99.6) (4.8) 7.2 (97.2) Reclassifications, before tax — 15.5 (2) (2.7) 12.8 Tax (expense) benefit — (3.5) 0.5 (3.0) Reclassifications, net of tax — 12.0 (2.2) (3) 9.8 Other comprehensive (loss) income, net of tax (99.6) 7.2 5.0 (87.4) Balance as of July 31, 2022, net of tax $ (143.6) $ (67.5) $ 5.5 $ (205.6) (1) In fiscal 2023 and 2022, pension settlement accounting was triggered. In addition, pension curtailment accounting was triggered in fiscal 2023. Remeasurements of the Company’s pension obligations resulted in an increase of $6.9 million and $6.2 million in fiscal 2023 and 2022, respectively, to accumulated other comprehensive loss on the Consolidated Balance Sheets, see Note 14. (2) Amounts include reclassifications of $6.6 million and $3.0 million, a foreign currency translation gain of $1.4 million and loss of $4.9 million and net amortization of prior service costs and actuarial losses of $2.3 million and $7.6 million in fiscal 2023 and 2022, respectively. Amounts are included in other income, net in the Consolidated Statements of Earnings, see Note 14. (3) Relates to designated foreign currency forward contracts that were reclassified from accumulated other comprehensive loss on the Consolidated Balance Sheets to net sales, cost of sales and operating expenses in the Consolidated Statements of Earnings, see Note 15. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jul. 31, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | Note 13. Stock-Based Compensation The Company recognizes compensation expense for all stock-based awards based on the grant date fair value of the award. Stock-based awards consist primarily of non-qualified stock options, performance-based awards, restricted stock awards and restricted stock units. Grants related to restricted stock awards and restricted stock units are immaterial. The Company issues treasury shares for stock options and performance-b ased awards. Stock Options The exercise price of options granted is equal to the market price of the Company’s common stock at the date of the grant. Options are generally exercisable for up to 10 years from the date of grant and vest in equal increments over three years. Pretax stock-based compensation expense associated with options was $12.4 million, $11.6 million and $10.8 million for the years ended July 31, 2023, 2022 and 2021, respectively. Fair value is calculated using the Black-Scholes option pricing model. The weighted average fair value for options granted during the years ended July 31, 2023, 2022 and 2021 was $15.67, $14.24 and $10.23 per share, respectively. The fair value of these awards was determined using the following inputs: Year Ended July 31, 2023 2022 2021 Risk-free interest rate 3.8% - 4.2% 1.2% - 1.8% 0.5% - 1.3% Expected volatility 26.8% - 27.5% 26.0% - 27.0% 25.4% - 26.6% Expected dividend yield 1.6 % 1.6 % 1.6 % Expected life: Director grants 8 years 8 years 8 years Officer grants 7 years 7 years 8 years Non-officer grants 7 years 7 years 7 years Option activity was as follows: Options Weighted Balance outstanding as of July 31, 2020 6,533,979 $ 42.44 Granted 1,004,631 46.61 Exercised (1,030,938) 36.00 Expired/forfeited (62,929) 49.95 Balance outstanding as of July 31, 2021 6,444,743 44.05 Granted 898,726 59.18 Exercised (365,267) 37.02 Expired/forfeited (51,041) 53.15 Balance outstanding as of July 31, 2022 6,927,161 46.32 Granted 920,816 51.35 Exercised (1,006,602) 40.48 Expired/forfeited (63,968) 53.47 Balance outstanding as of July 31, 2023 6,777,407 $ 47.80 The total intrinsic value of options exercised during the years ended July 31, 2023, 2022 and 2021 was $20.2 million, $7.8 million and $22.6 million, respectively. The number of shares authorized as of July 31, 2023 for outstanding options and future grants was 8,585,779. Forfeited options are recorded as an offset to operating expenses in the Consolidated Statements of Earnings in the period in which they occur. Outstanding and exercisable stock options as of July 31, 2023 were as follows: Range of Exercise Prices Number Weighted Weighted Number Weighted Weighted $28.00 to $37.99 672,703 2.3 $ 29.24 672,703 2.3 $ 29.24 $38.00 to $43.99 1,393,425 2.3 41.29 1,393,425 2.3 41.29 $44.00 to $49.99 1,452,757 5.9 45.96 1,162,081 5.5 45.93 $50.00 to $55.99 1,656,918 7.8 51.34 769,671 6.2 51.75 $56.00 and above 1,601,604 6.9 59.27 995,816 6.0 59.17 6,777,407 5.5 $ 47.80 4,993,696 4.4 $ 45.93 As of July 31, 2023, the aggregate intrinsic value of stock options outstanding and exercisable was $101.9 million and $84.4 million, respectively. For the year ended July 31, 2023, activity for non-vested stock options that contain vesting provisions was as follows: Options Weighted Balance outstanding as of beginning of year 1,809,473 $ 12.31 Granted 920,816 15.67 Vested (895,862) 11.78 Forfeited (50,716) 13.61 Balance outstanding as of end of year 1,783,711 $ 14.27 As of July 31, 2023, there was $8.1 million of total unrecognized compensation expense related to non-vested stock options, which is expected to be recognized over the remaining vesting period during fiscal 2024, 2025 and 2026. Performance-Based Awards Performance-based awards are payable in common stock and are based on a formula that measures Company performance over a three year period. These awards are settled after three years with payouts ranging from 0% to 200% of the target award depending on achievement. Pretax performance-based awards expense was $6.3 million, $7.2 million and $1.9 million for the years ended July 31, 2023, 2022 and 2021, respectively. The weighted average grant date fair value related to the Company’s performance-based awards was as follows: Year Ended July 31, 2023 2022 2021 Weighted average grant date fair value $ 50.89 $ 59.40 $ 46.06 Performance-based awards for non-vested activity were as follows: Performance Shares Weighted Balance outstanding as of July 31, 2022 188,206 $ 52.20 Granted 113,100 50.89 Vested (98,853) 46.06 Forfeited (7,692) 54.76 Balance outstanding as of July 31, 2023 194,761 $ 54.46 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jul. 31, 2023 | |
Retirement Benefits, Description [Abstract] | |
Employee Benefit Plans | Note 14. Employee Benefit Plans Defined Benefit Pension Plans The Company has defined benefit pension plans for certain hourly and salaried employees. They consist of plans in the U.S., Belgium, Germany, Mexico and the United Kingdom. These plans generally provide pension benefits based on years of service and compensation level. Components of net periodic pension costs other than the service cost component are included in other income, net in the Consolidated Statements of Earnings. Net periodic pension costs for the Company’s pension plans were as follows (in millions): Year Ended July 31, 2023 2022 2021 Net periodic pension costs Service cost $ 6.7 $ 6.9 $ 7.5 Interest cost 17.0 10.6 10.2 Expected return on assets (25.3) (24.8) (23.7) Prior service cost amortization — 0.2 0.3 Actuarial loss amortization 2.1 6.9 8.2 Settlement charge 5.5 3.0 2.0 Curtailment charge 0.2 — 0.8 Net periodic pension costs 6.2 2.8 5.3 Other changes recognized in other comprehensive income (loss): Prior service cost (0.4) — — Net actuarial (loss) gain (5.9) (1.3) 35.9 Amortization of prior service cost 0.2 0.3 1.2 Amortization of net actuarial loss 7.7 9.9 10.2 Total recognized in other comprehensive income 1.6 8.9 47.3 Total recognized in net periodic pension costs and other comprehensive (loss) income $ (4.6) $ 6.1 $ 42.0 The changes in projected benefit obligations, fair value of plan assets and funded status of the Company’s pension plans for the years ended July 31, 2023 and 2022 were as follows (in millions): Year Ended July 31, 2023 2022 Change in projected benefit obligation Projected benefit obligation, beginning of year $ 442.6 $ 579.9 Service cost 6.7 6.9 Interest cost 17.0 10.6 Plan amendments 0.2 — Participant contributions 0.7 0.7 Actuarial gain (42.0) (100.3) Foreign currency exchange rates 9.2 (25.4) Settlements paid (17.0) (12.9) Acquisition 1.2 — Benefits paid (17.5) (16.9) Projected benefit obligation, end of year 401.1 442.6 Change in fair value of plan assets Fair value of plan assets, beginning of year 459.8 591.3 Actual return on plan assets (22.1) (80.7) Company contributions 2.6 2.3 Participant contributions 0.7 0.7 Foreign currency exchange rates 8.3 (24.0) Settlements paid (17.0) (12.9) Acquisition 1.2 — Benefits paid (17.5) (16.9) Fair value of plan assets, end of year 416.0 459.8 Funded status of plans, end of year $ 14.9 $ 17.2 Amounts recognized on the Consolidated Balance Sheets Other long-term assets $ 34.7 $ 38.3 Other current liabilities (1.7) (1.8) Other long-term liabilities (18.1) (19.3) Net recognized asset $ 14.9 $ 17.2 T he net overfunded status of $14.9 million and $17.2 million as of July 31, 2023 and 2022, respectively, is recognized on the Consolidated Balance Sheets. The pension-related accumulated other comprehensive loss as of July 31, 2023 and 2022, prior to the consideration of income taxes, was $109.0 million and $110.2 million, respectively, and consisted primarily of unrecognized actuarial losses. Th e accu mulated benefit obligation for all defined benefit pension plans was $384.4 million and $424.1 million as of July 31, 2023 and 2022, respectively. The decrease in the accumulated benefit obligation during fiscal 2023 is due to actuarial gains. Pension settlement accounting was triggered in fiscal 2023 and 2022 as a result of the amount of lump sum distributions in the defined benefit pension plans exceeding the service and interest cost threshold. The projected benefit obligation and fair value of plan assets for pension plans with projected benefit obligations in excess of plan assets were $73.5 million and $53.7 million , res pectively, as of July 31, 2023 and $70.3 million and $49.2 million, respectively, as of July 31, 2022. The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets wer e $15.0 million , $15.0 million and $5.0 million , r espectively, as of July 31, 2023 and $12.8 million, $12.8 million and $3.1 million, respectively, as of July 31, 2022. Assumptions The significant assumptions used in determining the actuarial present value of the projected benefit obligation were as follows: Year Ended July 31, 2023 2022 U.S. plans Discount rate 5.58 % 4.62 % Expected rate of return on plan assets 5.66 % 5.41 % Rate of compensation increase N/A N/A Non-U.S. plans Discount rate 4.80 % 3.26 % Expected rate of return on plan assets 4.39 % 3.40 % Rate of compensation increase 3.12 % 2.99 % The weighted average discount rates, expected returns on plan assets and rates of increase in future compensation levels used to determine the net periodic pension costs were as follows: Year Ended July 31, 2023 2022 2021 U.S. plans Discount rate 4.62 % 2.55 % 2.37 % Expected rate of return on plan assets 5.66 % 5.41 % 5.33 % Rate of compensation increase N/A N/A N/A Non-U.S. plans Discount rate 3.26 % 1.60 % 1.52 % Expected rate of return on plan assets 4.39 % 3.40 % 3.13 % Rate of compensation increase 3.12 % 2.99 % 2.86 % Discount Rates The Company’s objective in selecting a discount rate is to select the best estimate of the rate at which the benefit obligations could be effectively settled on the measurement date, taking into account the nature and duration of the benefit obligations of the plan. In making this best estimate, the Company looks at the rates of return on high-quality fixed-income investments currently available and expected to be available, during the period to maturity of the benefits. This process includes assessing the universe of bonds available on the measurement date with a quality rating of Aa or better. Similar appropriate benchmarks are used to determine the discount rate for the non-U.S. plans. Expected Long-Term Rate of Return on Plan Assets The Company considers historical returns and future expected returns for each asset class, as well as the target asset allocation to develop the assumption for each of its U.S. pension plans. The assumption for non-U.S. pension plans reflects the investment allocation and expected total portfolio returns specific to each plan and country. Mortality Rates The Company’s actuary uses the Pr i-2012 mortality table issued by the Society of Actuaries during the pre-retirement period and the Mercer Industry Longevity Experience Study (MILES) table for post-retirement mortality, both reflecting the Scale MMP-2021 mortality improvement projection scale for its U.S. pension plans. These assumptions were u sed for determining the benefit obligations as of July 31, 2023 and for developing the annual expense for its U.S. pension plans for the fiscal year ending July 31, 2024. The Company follows the local actuaries’ recommendations for non-U.S. pension plans. Service and Interest Costs The Company uses a full yield curve approach to estimate service and interest costs by applying specific spot rates along the yield curve used to determine the benefit obligation of relevant projected cash outflows. This method provides a precise measurement of service and interest costs by aligning the timing of the plans’ liability cash flows to the corresponding spot rate on the yield curve. Investments Global Equity Securities Global equity securities consist primarily of publicly traded U.S. and non-U.S. equities, mutual funds, collective investment trusts, diversified growth investment funds and private equity. Publicly traded equities and index funds are valued at the closing price reported in the active market in which the individual securities are traded. Private equity consists of interests in partnerships that invest in U.S. and non-U.S. equity and debt securities. This may include a diversified mix of partnership interests including buyouts, restructured or distressed debt, growth equity, mezzanine or subordinated debt, real estate, special situation partnerships and venture capital investments. Interests in these funds are valued at net asset value (NAV). Fixed Income Securities Fixed income securities consist primarily of investment and non-investment grade debt securities, debt securities issued by the U.S. Treasury, multi-asset credit investment funds and exchange-traded funds. Government, corporate and other bonds and notes, interest rate and inflation swaps, physical inflation-linked and nominal gilts, synthetic gilts, money market instruments and cash are valued at the closing price reported if they are traded on an active market or if they are traded at yields currently available on comparable securities of issuers with similar credit ratings. Fixed income securities also include smaller allocations to alternative investments, private equity and alternative fixed income investments. Alternative investments consist primarily of private placement funds, private equity investments and alternative fixed income-like investments. Private equity consists of interests in partnerships that invest in U.S. and non-U.S. equity and debt securities. This may include a diversified mix of partnership interests including buyouts, restructured or distressed debt, growth equity, mezzanine or subordinated debt, real estate, special situation partnerships and venture capital investments. Alternative fixed income securities consist primarily of private partnership interests in hedge funds. Interests in these funds are valued at NAV, which is determined by the administrator or custodian of the fund based on the fair value of the underlying assets owned by the fund less its liabilities. Insurance Contracts Insurance contracts are individual contracts whereby an insurance company offers a guaranteed minimum interest return. The Company does not have any influence on the investment decisions made by the insurer. European insurers, in general, are strictly regulated by an external control mechanism and have to invest for their guaranteed interest products within certain boundaries. Typically, they have a strategic asset allocation with 80% to 90% fixed income products and 10% to 20% equity-type products, including real estate. Real Assets Funds Real assets funds consist of interests in partnerships that invest in private real estate and commodities investments. Interests in partnerships are valued using NAV. Fair Value of Plan Assets Fair value measurements of plan assets are reported in one of three levels based on the lowest level of significant input used. For Level 1, inputs to the fair value measurement are quoted prices in active markets for identical assets or liabilities. For Level 2, inputs to the fair value measurement include quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. For Level 3, inputs to the fair value measurement are unobservable inputs or are based on valuation techniques. The estimated fair value of pension plan assets and their respective levels in the fair value hierarchy by asset category were as follows (in millions): Level 1 Level 2 Level 3 Total Balances as of July 31, 2023 Cash and cash equivalents $ 3.6 $ 0.7 $ — $ 4.3 Global equity securities 61.2 55.7 — 116.9 Fixed income securities 90.1 117.2 — 207.3 Insurance contracts — — 41.3 41.3 Total investments in the fair value hierarchy $ 154.9 $ 173.6 $ 41.3 369.8 Investments using NAV as practical expedient 46.2 Total assets $ 416.0 Balances as of July 31, 2022 Cash and cash equivalents $ 6.6 $ 0.8 $ — $ 7.4 Global equity securities 136.5 — — 136.5 Fixed income securities 114.1 115.7 — 229.8 Insurance contracts — — 35.4 35.4 Total investments in the fair value hierarchy $ 257.2 $ 116.5 $ 35.4 409.1 Investments using NAV as practical expedient 50.7 Total assets $ 459.8 Certain investments, valued at NAV, had the following unfunded commitments and/or redemption restrictions (in millions): July 31, 2023 July 31, 2022 NAV Unfunded Commitments NAV Unfunded Commitments Redemption Frequency Redemption Notice (Days) Global equity securities $ 33.6 $ 1.8 $ 37.0 $ 1.8 Daily 0 - 5 Fixed income securities 9.5 — 10.8 — Daily, Weekly and Quarterly 0 - 60 Real asset funds 3.1 4.2 2.9 4.2 Not eligible N/A Total U.S. assets $ 46.2 $ 6.0 $ 50.7 $ 6.0 The changes in the fair values of the pension plans’ Level 3 assets were as follows (in millions): Year Ended July 31, 2023 2022 2021 Balance as of beginning of year $ 35.4 $ 37.7 $ 35.4 Unrealized gains 2.7 3.5 3.6 Foreign currency exchange 3.0 (5.6) 0.1 Purchases and sales, net 0.2 (0.2) (1.4) Balance as of end of year $ 41.3 $ 35.4 $ 37.7 Investment Policies and Strategies For U.S. pension plans, t he Company uses a total return on investment approach to achieve a long-term return on plan assets, with what the Company believes to be a prudent level of risk for the purpose of meeting its retirement income commitments to employees. The U.S. pension plans’ investments are diversified to assist in managing risk. During the year ended July 31, 2023, the Company’s asset allocation was as follows: Salaried Pension Plan Hourly Pension Plan Global equity securities 33 % 32 % Fixed income securities 65 67 Real asset funds 1 — Cash and cash equivalents 1 1 Total 100 % 100 % The target allocation guidelines are determined in conjunction with the Company’s investment consultant and through the use of modeling the risk/return trade-offs among asset classes utilizing assumptions about expected annual return, expected volatility/standard deviation of returns and expected correlations with other asset classes. For non-U.S. plans, the general investment objectives are to maintain a suitably diversified portfolio of secure assets with appropriate liquidity that will generate income and capital growth to meet, together with any new contributions from members and the Company, the cost of current and future benefits. Investment policy and performance is measured and monitored on an ongoing basis. Estimated Contributions and Future Payments The Company’s general funding policy is to make at least the minimum required contributions as required by applicable regulations, plus any additional amounts it determines to be appropriate. The Company made contributions of $2.6 million to its pension plans during the year ended July 31, 2023. Future required pension plan contributions may change significantly depending on the actual rate of return on plan assets, discount rates and regulatory requirements. Estimated future benefit required payments for the Company’s pension plans as of July 31, 2023 were as follows (in millions): 2024 $ 33.0 2025 $ 28.7 2026 $ 30.9 2027 $ 28.8 2028 $ 28.9 2029-2033 $ 161.5 Retirement Savings The Company provides a contributory employee savings plan to U.S. employees that permits participants to make contributions by salary reduction pursuant to section 401(k) of the Internal Revenue Code. For eligible employees, employee contributions of up to 50% of compensation are matched at a rate equaling 100% of the first 3% contributed and 50% of the next 2% contributed. In addition, the Company contributes 3% of compensation annually for eligible employees. Total contribution expense for this plan was $28.6 million, $27.2 million and $25.2 million for the years ended July 31, 2023, 2022 and 2021, respectively. Deferred Compensation and Other Benefit Plans The Company provides various deferred compensation and other benefit plans to certain executives. The deferred compensation plan allows eligible employees to defer the receipt of all or a portion of their cash bonus and other stock-related compensation and up to 75% of their salary to future periods. Other benefit plans are provided to supplement the benefits for a select group of highly compensated individuals that are reduced because of compensation limitations set by the Internal Revenue Code. The Company has recorded a liability of $1.9 million and $2.6 million as of July 31, 2023 and 2022, respectively, related primarily to its deferred compensation plans. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging | 12 Months Ended |
Jul. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging | Note 15. Derivative Instruments and Hedging Derivative Fair Value Measurements The Company enters into derivative instrument agreements, including foreign currency forward contracts and net investment hedges, to manage risk in connection with changes in foreign currency. The Company only enters into derivative instrument agreements with counterparties who have highly rated credit. There is risk the counterparties to derivative contracts will fail to meet their contractual obligations. In order to mitigate counterparty credit risk, the Company only enters into contracts with carefully selected financial institutions based upon their credit ratings and certain other financial factors. Contract provisions may require the posting of collateral or settlement of the contracts for various reasons, including if the Company’s credit ratings are downgraded below its investment grade credit rating by any of the major credit agencies or for cross default contractual provisions if there is a failure under other financing arrangements related to payment terms or covenants. As of July 31, 2023 and 2022, no collateral was posted. The Company does not enter into derivative instrument agreements for trading or speculative purposes. For discussion on the fair value of the Company’s derivatives, see Note 16. Foreign Currency Forward Contracts - Cash Flow Hedges and Derivatives Not Designated as Hedging Instruments The Company buys materials from foreign suppliers. Those transactions can be denominated in those suppliers’ local currency. The Company also sells to customers in foreign countries. Those transactions can be denominated in those customers’ local currency. Both of these transaction types can create volatility in the Company’s financial statements. The Company uses foreign currency forward contracts to manage those exposures and fluctuations. These contracts generally mature in 12 months or less, which is consistent with the forecasts of the related purchases and sales. Certain contracts are designated as cash flow hedges, whereas the remaining contracts, most of which are related to certain intercompany transactions which offset balance sheet exposure, are not designated as hedging instruments. The total notional amounts of the foreign currency forward contracts designated as hedges as of July 31, 2023 and 2022 were $84.9 million and $158.0 million, respectively. The total notional amounts of the foreign currency forward contracts not designated as hedges as of July 31, 2023 and 2022 were $147.5 million and $151.6 million , respectively. Changes in the fair value of the Company’s designated hedges are reporte d in accumulated other comprehensive loss on the Consolidated Balance Sheets until the related transaction occurs, see Note 12. Designated hedges are recognized as a component of net sales, cost of sales, operating expenses and other income, net in the Consolidated Statements of Earnings upon occurrence of the related hedged transaction. H edges which are not designated are recognized in other income, net in the Consolidated Statements of Earnings along with the related hedged transactions. Changes in the fair value of hedges which are not designated, are recognized in other income, net in the Consolidated Statements of Earnings. Amounts related to foreign currency forward contracts designated as hedges are expected to be reclassified into earnings during the next 12 months based upon the timing of inventory purchases and sales. Net Investment Hedges The Company uses fixed-to-fixed cross-currency swap agreements to hedge its exposure to adverse foreign currency exchange rate movements for its operations in Europe. The Company has elected the spot method for designating these contracts as net investment hedges. The total notional amount of net investment hedges as of July 31, 2023 and 2022 was €80 million, or $88.8 million . The maturity dates range from 2027 to 2029. Gains and losses resulting from a change in fair value of the net investment hedge are offset by gains and losses on the underlying foreign currency exposure and are included in accumulated other comprehensive loss on the Consolidated Balance Sheets. Amounts related to excluded components associated with the net investment hedge are expected to be reclassified into earnings in interest expense in the Consolidated Statements of Earnings through their maturity. Interest Rate Swaps - Cash Flow Hedges The Company uses swap agreements to hedge exposure related to interest expense and to manage its exposure to interest rate movemen ts. In fiscal 2021, the Company entered into interest rate swap agreements designated as cash flow hedges with aggregate notional amounts of $40.0 million and $25.0 million, respectively, hedging future fixed-rate debt issuances, which effectively fixed a portion of interest payments based on the 10 year treasury rates. Both instruments terminated in fiscal 2021, generating a realized gain of $2.6 million and were subsequently recorded in accumulated other comprehensive loss on the Consolidated Balance Sheets. The gain is amortized in interest expense in the Consolidated Statements of Earnings over the life of the related debt. As of July 31, 2023 and 2022, there were no outstanding interest rate swap arrangements. Cash Flows Cash flows from derivative transactions are recorded in operating activities in the Consolidated Statements of Cash Flows. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jul. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 16. Fair Value Measurements Fair value measurements of financial instruments are reported in one of three levels based on the lowest level of significant input used. For Level 1, inputs to the fair value measurement are quoted prices in active markets for identical assets or liabilities. For Level 2, inputs to the fair value measurement include quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. For Level 3, inputs to the fair value measurement are unobservable inputs or are based on valuation techniques. Short-Term Financial Instruments As of July 31, 2023 and 2022, the carrying va lues of cash and cash equivalents, ac counts receivable, short-term borrowings and accounts payable approximate fair value because of the short-term nature of these instrume nts and a re classified as Level 1 in the fair value hierarchy. Long-Term Debt As of July 31, 2023, the estimated fair v alues of fixed interest rate long-term debt were $378.9 million compared to the carrying values of $425.0 million. As of July 31, 2022, the estimated fair values of fixed interest rate long-term debt were $396.9 million compared to the carrying values of $425.0 million. The fair values are estimated by discounting the projected cash flows using the interest rates at which similar amounts of debt could currently be borrowed. The carrying values of total variable interest rate long-term debt were $198.4 million and $221.7 million as of July 31, 2023 and 2022, respectively and approximate their fair values. Long-term debt is classified as Level 2 in the fair value hierarchy. Equity Method Investments The Company holds equity method investments in its joint ventures, which are included in other long-term assets on the Consolidated Balance Sheets. The aggregate carrying amount of these investments was $24.4 million and $22.4 million as of July 31, 2023 and 2022, respectively. These equity method investments are measured at fair value on a non-recurring basis. The fair value of the Company’s equity method investments has not been adjusted as there have been no triggering events or changes in circumstance that would have had an adverse impact on the value of these investments. In the event these investments are required to be measured, they would fall within Level 3 of the fair value hierarchy due to the use of significant unobservable inputs to determine fair value, as the investments are in privately-held entities. Derivative Fair Value Measurements The fair values of the Company’s foreign currency forward contracts, net investment hedges and interest rate swaps reflect the amounts that would be received to sell the assets or paid to transfer the liabilities in an orderly transaction between market participants at the measurement date (exit price). The fair values are based on inputs other than quoted prices that are observable for the asset or liability and are determined by standard calculations and models that use readily observable market parameters. These inputs include foreign currency exchange rates and interest rates. Industry standard data providers are the primary source for forward and spot rate information for both interest rates and foreign currency exchange rates. The fair values of the Company’s foreign currency forward contracts, net investment hedges and interest rate swaps are classified as Level 2 in the fair value hierarchy. For discussion of the Company’s derivatives and hedging, see Note 15. Fair Value of Derivative Contracts The fair value of the Company’s derivative contracts, recorded on the Consolidated Balance Sheets, was as follows (in millions): Assets Liabilities July 31, July 31, Instruments Balance Sheet Location 2023 2022 2023 2022 Designated as hedging instruments Foreign currency forward contracts Other current assets, other long-term assets $ 0.6 $ 0.3 $ 0.1 $ 2.7 Net investment hedges Other current assets, other long-term assets and other long-term liabilities 3.6 8.2 — — Total designated 4.2 8.5 0.1 2.7 Not designated as hedging instruments Foreign currency forward contracts Other current liabilities 0.7 1.7 1.4 2.5 Total not designated 0.7 1.7 1.4 2.5 Total $ 4.9 $ 10.2 $ 1.5 $ 5.2 Fair Value of Contingent Consideration The fair value of the contingent consideration liability is determined using a probability-weighted discounted cash flow method. This fair value measurement is based on unobservable inputs in the market and thus, represents a Level 3 measurement within the fair value hierarchy. This analysis reflects the contractual terms of the purchase agreement (e.g., potential payment amounts, length of measurement periods, manner of calculating any amounts due) and utilizes assumptions with regard to future cash flows, probabilities of achieving such future cash flows and a discount rate. Depending on the contractual terms of the purchase agreement, the probability of achieving future cash flows or earnings generally represent the only significant unobservable inputs. The contingent consideration liability is measured at fair value each reporting period and changes in estimates of fair value are recognized in earnings. A reconciliation of the fair value of the Company’s contingent consideration liability that use unobservable inputs was as follows (in millions): Balance as of July 31, 2022 $ 24.7 Issuances — Adjustments to fair value 0.3 Balance as of July 31, 2023 $ 25.0 Maximum potential payout $ 30.7 Balance as of July 31, 2021 $ — Issuances 24.6 Adjustments to fair value 0.1 Balance as of July 31, 2022 $ 24.7 Maximum potential payout $ 30.7 There was no contingent consideration as of and for the year ended July 31, 2021, see Note 2. |
Guarantees
Guarantees | 12 Months Ended |
Jul. 31, 2023 | |
Product Warranties Disclosures [Abstract] | |
Guarantees | Note 17. Guarantees Letters of Credit The Company has letters of credit which guarantee payment to third parties in the event the Company is in breach of contract terms as detailed in each letter of credit. The outstanding debt contingent liability for standby letters of credit was as follows (in millions): Year Ended July 31, 2023 2022 Contingent liability for standby letters of credit issued under the Company’s revolving credit facility $ 7.5 $ 7.5 Amounts drawn for letters of credit under the Company’s revolving credit facility $ — $ — Advanced Filtration Systems Inc. (AFSI) The Company has an unconsolidated joint venture, AFSI, established by the Company and Caterpillar Inc. (Caterpillar) in 1986. AFSI designs and manufactures high-efficiency fluid filters use d in Caterpillar’s machinery worldwide. The Company and Caterpillar equally own the shares of AFSI and both companies guarantee certain debt and banking services, including credit and debit cards, merchant processing and treasury management services, of the joint venture. The Company accounts for AFSI as an equity method investment. The outstanding debt relating to AFSI, of which the Company guarantees half, was $59.6 million and $68.8 million as of July 31, 2023 and 2022, respectively. AFSI has $63.0 million in a revolving credit facility which expires in 2024 and $17.0 million in an additional multi-currency revolving credit facility which terminates upon notification of either party. Earnings from AFSI, which are recorded in other income, net in the Consolidated Statements of Earnings wer e $8.5 million and $8.1 million as of July 31, 2023 and 2022, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jul. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 18. Commitments and Contingencies The Company records provisions when it is probable a liability has been incurred and the amount of the loss can be reasonably estimated. Claims and litigation are reviewed quarterly and provisions are taken or adjusted to reflect the status of a particular matter. The Company believes the estimated liability in its Consolidated Financial Statements for claims or litigation is adequate and appropriate for the probable and estimable outcomes. Liabilities recorded were not material to the Company’s financial position, results of operations or liquidity. The Company believes it is remote that the settlement of any of the currently identified claims or litigation will be materially in excess of what is accrued. Warranty Reserves The Company estimates warranty expense on certain products at the time of sale using quantitative measures based on historical warranty claim experience and evaluation of specific customer warranty i ssues . There were no individually or collectively material specific warranty matters accrued for, or significant settlements made, during the years ended July 31, 2023 and 2022. The Company’s accrued warranty reserves were $5.5 million and $4.9 million as of July 31, 2023 and 2022, respectively. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Jul. 31, 2023 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Segment Reporting | Note 19. Segment Reporting During the first quarter of fiscal 2023, the Company announced a company-wide organizational redesign to further support the Company’s growth strategies and better serve its customers. Effective November 1, 2022, as a result of the organizational redesign, the Company established a new segment reporting structure which resulted in three reportable segments: Mobile Solutions, Industrial Solutions and Life Sciences. The organizational structure also includes Corporate and Unallocated which includes interest expense and certain corporate expenses determined to be non-allocable to the segments, such as restructuring charges and business development expenses. The Company determines its operating segments consistent with the manner in which it manages its operations and evaluates performance for internal review and decision-making. All prior segment information has been recast to reflect the Company’s new segment structure and current period presentation. In fiscal 2023, Corporate and Unallocated also included a charge of $21.8 million related to the organizational redesign as well as costs associated with the exiting of a lower-margin customer program and product. The Mobile Solutions segment is organized based on a combination of customers and products and consists of the Off-Road, On-Road and Aftermarket business units. Within these business units, products consist of replacement filters for both air and liquid filtration applications and filtration housings for new equipment production and systems related to exhaust and emissions. Applications include air filtration systems, fuel, lube and hydraulic systems, emissions systems and sensors, indicators and monitoring systems. Mobile Solutions sells to original equipment manufacturers (OEMs) in the construction, mining, agriculture and transportation end markets and to independent distributors and OEM dealer networks. The Industrial Solutions segment is organized based on product type and consists of the Industrial Air Filtration, Industrial Gasses, Industrial Hydraulics, Power Generation and Aerospace and Defense business units. Within our industrial portfolio, Donaldson provides the widest product offering in the market to industrial customers consisting of equipment, ancillary components, replacement parts, performance monitoring and service globally, that cost-effectively enhances productivity and manufacturing efficiency. Industrial Air Filtration, Industrial Gasses and Industrial Hydraulics products consist of dust, fume and mist collectors, compressed air and industrial gasses purification systems, hydraulic and lubricated rotating filtration applications as well as gas and liquid filtration for industrial processes. Power Generation products consist of air inlet systems and filtration sold to gas compression, power generation and natural gas liquification industries. Aerospace and Defense products consist of air, fuel, lubrication and hydraulic filtration for fixed-wing and rotorcraft aerospace applications and ground defense vehicle and naval platforms. Industrial Solutions businesses sell through multiple channels which include OEMs, distributors and direct-to-consumer in some markets. The Life Sciences segment is organized by end market, including the Bioprocessing, Food and Beverage, Medical Device, Vehicle Electrification, Microelectronics and Disk Drive business units. Our products include gas and liquid filtration, bioprocessing equipment (including bioreactors, fermenters and filtration skids), bioprocessing consumables, (including membrane chromatography devices, reagents and filters) and specialized air and gas filtration systems for hard disk drive, semiconductor and electric vehicle applications. Life Sciences primarily sells to large OEMs and directly to various end users requiring cell growth, separation, purification, high purity filtration and device protection. The Company has manufacturing facilities that serve multiple reportable segments. As such, capital expenditure information by reportable segment has not been provided because the Company does not produce or utilize such information internally. In addition, although depreciation and amortization expense is a component of each reportable segment’s operating results, it is not discretely identifiable. The Company is an integrated enterprise, characterized by substantial intersegment cooperation, cost allocations and sharing of assets. Therefore, the Company does not represent these segments, if operated independently, would report earnings before income taxes and other financial information as stated below. Segment details were as follows (in millions): Mobile Solutions Segment Industrial Solutions Segment Life Sciences Segment Corporate and Total Year ended July 31, 2023 Net sales $ 2,174.8 $ 1,014.7 $ 241.3 $ — $ 3,430.8 Equity earnings in unconsolidated affiliates $ 3.6 $ — $ — $ — $ 3.6 Earnings (loss) before income taxes $ 330.4 $ 186.2 $ 9.9 $ (57.8) $ 468.7 Assets $ 1,243.8 $ 788.1 $ 513.8 $ 224.8 $ 2,770.5 Equity investments in unconsolidated affiliates $ 24.2 $ 0.2 $ — $ — $ 24.4 Year ended July 31, 2022 Net sales $ 2,126.5 $ 901.0 $ 279.1 $ — $ 3,306.6 Equity earnings in unconsolidated affiliates $ 1.7 $ — $ — $ — $ 1.7 Earnings (loss) before income taxes $ 293.8 $ 133.0 $ 64.9 $ (53.3) $ 438.4 Assets $ 1,319.4 $ 816.0 $ 267.8 $ 197.1 $ 2,600.3 Equity investments in unconsolidated affiliates $ 22.3 $ 0.1 $ — $ — $ 22.4 Year ended July 31, 2021 Net sales $ 1,818.4 $ 781.0 $ 254.5 $ — $ 2,853.9 Equity earnings in unconsolidated affiliates $ 4.2 $ — $ — $ — $ 4.2 Earnings (loss) before income taxes $ 276.1 $ 81.0 $ 65.2 $ (41.3) $ 381.0 Assets $ 1,216.0 $ 812.0 $ 139.8 $ 232.4 $ 2,400.2 Equity investments in unconsolidated affiliates $ 24.0 $ 0.2 $ — $ — $ 24.2 Net sales by business unit were as follows (in millions): Year Ended July 31, 2023 2022 2021 Mobile Solutions segment Off-Road $ 428.7 $ 390.5 $ 316.3 On-Road 145.8 136.1 138.8 Aftermarket 1,600.3 1,599.9 1,363.3 Total Mobile Solutions segment 2,174.8 2,126.5 1,818.4 Industrial Solutions segment Industrial Filtration Solutions 872.2 780.5 684.8 Aerospace and Defense 142.5 120.5 96.2 Total Industrial Solutions segment 1,014.7 901.0 781.0 Life Sciences segment Total Life Sciences segment 241.3 279.1 254.5 Total Company $ 3,430.8 $ 3,306.6 $ 2,853.9 Net sales, generally disaggregated by location where the customer’s order was received and property, plant and equipment, net by geographic region were as follows (in millions): Net Sales Property, Plant and Equipment, Net Year ended July 31, 2023 U.S. and Canada $ 1,464.7 $ 219.7 EMEA 1,007.8 202.4 APAC 608.8 76.5 LATAM 349.5 154.3 Total $ 3,430.8 $ 652.9 Year ended July 31, 2022 U.S. and Canada $ 1,336.8 $ 218.1 EMEA 963.6 184.3 APAC 669.0 59.5 LATAM 337.2 132.5 Total $ 3,306.6 $ 594.4 Year ended July 31, 2021 U.S. and Canada $ 1,084.2 $ 214.0 EMEA 865.7 220.4 APAC 649.2 60.4 LATAM 254.8 123.0 Total $ 2,853.9 $ 617.8 Concentrations There were no customers that accounted for over 10% of net sales for the years ended July 31, 2023, 2022 or 2021. There were no customers that accounted for over 10% of gross accounts receivable as of July 31, 2023 or 2022. |
Restructuring
Restructuring | 12 Months Ended |
Jul. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Note 20. Restructuring During the first quarter of fiscal 2023, the Company announced a company-wide organizational redesign to further support the Company’s growth strategies and better serve its customers. I n conjunction with the organizational redesign, the Company recorded $21.8 million of charges consisting of $15.3 million o f severance charges and other organizational redesign co sts and $6.5 million of costs mainly associated with the exiting of a lower-margin customer program a nd a lower-margin product. Charges o f $2.9 million w ere included in cost of sales and $18.9 million were included in selling, general and administrative expenses in the accompanying Consolidated Statements of Earnings. In the second quarter of fiscal 2021, the Company initiated activities to further improve its operating and manufacturing cost structure, primarily in EMEA. These activities resulted in restructuring expenses, primarily related to severance, of $14.8 million. Charges of $5.8 million were included in cost of sales and $9.0 million were included in operating expenses in the Consolidated Statements of Earnings for the year ended July 31, 2021 . This initiative is now substantially completed. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net earnings | $ 358.8 | $ 332.8 | $ 286.9 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jul. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jul. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and all its majority-owned subsidiaries. All intercompany accounts and transactions have been elimin ated. The Company’s joint ventures are not majority-owned and are accounted for under the equity method. Certain reclassifications to previously reported financial information on the Consolidated Balance Sheet, Consolidated Statements of Cash Flows and Consolidated Statements of Changes in Stockholders’ Equity have been made to conform to the current period presentation. |
Use of Estimates | Use of Estimates The preparation of the Company’s financial statements in conformity with generally accepted accounting principles (GAAP) in the United States (U.S.) requires management to make estimates and assumptions that affect the amount of assets and liabilities and the disclosures regarding contingent assets and liabilities at period end and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Foreign Currency Translation | Foreign Currency TranslationFor most foreign operations, local currencies are considered the functional currency. Assets and liabilities of non-U.S. dollar functional currency entities are translated to U.S. dollars at fiscal year end exchange rates and the resulting gains and losses arising from the translation of net assets located outside the U.S. are recorded as a cumulative translation adjustment, a component of accumulated other comprehensive loss on the Consolidated Balance Sheets. Elements of the Consolidated Statements of Earnings are translated at average exchange rates in effect during the fiscal year. |
Cash Equivalents | Cash EquivalentsThe Company considers all highly liquid temporary investments with an original maturity of three months or less to be cash equivalents. Cash equivalents are carried at cost which approximates market value. |
Revenue Recognition | Revenue Recognition Revenue is measured as the amount of consideration the Company expects to receive in exchange for the fulfillment of performance obligations. The transaction price of a contract could be reduced by variable consideration including volume, purchase rebates and discounts, product refunds and returns. At the time of sale to a customer, the Company records an estimate of variable consideration as a reduction from gross sales. The Company primarily relies on historical experience and anticipated future performance to estimate the variable consideration. Revenue is recognized to the extent it is probable a significant reversal of revenue will not occur when the contingency is resolved. The Company accounts for amounts billed to customers for reimbursement of shipping and handling costs by recording these amounts as revenue and accruing costs when the related revenue is recognized. For most customer contracts, the Company recognizes revenue at a point in time when control of the goods or services is transferred to the customer. For product sales, control is typically deemed to have transferred in accordance with the shipping terms, either at the time of shipment from the plants or distribution centers or the time of delivery to the customers. Revenue is recognized for services upon completion o f those services. Payment terms vary by customer and the geographic location of the customer. The Company’s contracts with customers do not include significant financing components or non-cash consideration. The Company has some contracts with customers where the performance obligations are satisfied over time. Certain customer contracts provide the Company with an enforceable right to payment of the transaction price for performance completed to date and the Company uses either an input or an output method of production to measure the progress towards the completion of the performance obligation in these arrangements, depending on the nature of the contract. The timing of revenue recognized from these products is slightly accelerated compared to revenue recognized at the time of shipment or delivery. The Company generally does not incur significant incremental costs related to obtaining or fulfilling a contract prior to the start of a project. The Company may incur certain fulfillment costs such as initial design or mobilization costs which are capitalized if they relate directly to the contract, if they are expected to generate resources that will be used to satisfy the Company’s performance obligation under the contract and if they are expected to be recovered through revenues generated under the contract. Such costs, which are amortized over the life of the respective project, were not material for any period presented. The Company does not pay upfront sales commissions on contracts when the related contract period is greater than one year and thus has not capitalized any amounts as of July 31, 2023 and 2022 , see Note 3. |
Shipping and Handling | Shipping and Handling Shipping and handling costs on products sold of $91.2 million , $96.4 million |
Accounts Receivable, Net and Allowance for Doubtful Accounts | Accounts Receivable, Net and Allowance for Doubtful Accounts Accounts receivable, net are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of credit losses in its existing accounts receivable. The Company determines the allowance based on utilization of a combination of aging schedules with reserve rates applied to both current and aged receivables using historical write-off experience, regional economic data and evaluation of specific customer accounts for risk of loss and changes in current or projected conditions to calculate the allowances related to accounts receivable, net. The Company reviews its allowance for doubtful accounts monthly. Account balances are reviewed on a pooled basis by reporting unit and geographic region and are reserved when the Company determines it is probable the receivable will not be recovered. The Company reduces the receivable and corresponding allowance when it confirms an account is uncollectible. |
Accounts Receivable, Net and Allowance for Doubtful Accounts | Accounts Receivable, Net and Allowance for Doubtful Accounts Accounts receivable, net are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of credit losses in its existing accounts receivable. The Company determines the allowance based on utilization of a combination of aging schedules with reserve rates applied to both current and aged receivables using historical write-off experience, regional economic data and evaluation of specific customer accounts for risk of loss and changes in current or projected conditions to calculate the allowances related to accounts receivable, net. The Company reviews its allowance for doubtful accounts monthly. Account balances are reviewed on a pooled basis by reporting unit and geographic region and are reserved when the Company determines it is probable the receivable will not be recovered. The Company reduces the receivable and corresponding allowance when it confirms an account is uncollectible. |
Inventories | InventoriesInventories are stated at the lower of cost and net realizable value. U.S. inventories are valued using the last-in, first-out (LIFO) method while the non-U.S. inventories are valued using the first-in, first-out (FIFO) method. |
Property, Plant and Equipment | Property, Plant and EquipmentProperty, plant and equipment are stated at cost. Additions, improvements or major renewals are capitalized while expenditures that do not enhance or extend the asset’s useful life are expensed as incurred. Depreciation is computed using the straight-line method. |
Internal-Use Software and Cloud Computing Arrangements | Internal-Use Software and Cloud Computing Arrangements The Company capitalizes direct costs of materials and services used in the development and purchase of internal-use software. Amounts capitalized are amortized on a straight-line basis over a period of five The Company capitalizes certain costs incurred during the application development stage of implementation of internal-use software in cloud computing arrangements. Amounts capitalized are amortized on a straight-line basis over a period of five |
Internal-Use Software and Cloud Computing Arrangements | Internal-Use Software and Cloud Computing Arrangements The Company capitalizes direct costs of materials and services used in the development and purchase of internal-use software. Amounts capitalized are amortized on a straight-line basis over a period of five The Company capitalizes certain costs incurred during the application development stage of implementation of internal-use software in cloud computing arrangements. Amounts capitalized are amortized on a straight-line basis over a period of five |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations under the purchase method of accounting. Goodwill is assessed for impairment annually or if an event occurs or circumstances change that would indicate the carrying amount may be impaired. The Company performed its annual impairment assessment during the third quarter of fiscal 2023. The goodwill impairment assessment is conducted at a reporting unit level, which is one level below the operating segment level and utilizes either a qualitative or quantitative assessment. The Company determined the fair value for all its reporting units was substantially in excess of their respective carrying values and there were no indicators of impairment for any of the reporting units evaluated. In addition, as a result of the organizational redesign, the Company performed a qualitative impairment assessment based on the new segments in the second quarter of fiscal 2023 and concluded there was no impairment. An impairment loss would be recognized when the carrying amount of a reporting unit’s net assets exceeds the estimated fair value of the reporting unit, see Note 6. |
Business Combinations | Business Combinations The Company allocates the purchase price of acquired businesses to the estimated fair values of the assets acquired and liabilities assumed, as well as any contingent consideration, where applicable, as of the date of acquisition. The fair values of the long-lived assets acquired, primarily intangible assets, are determined using calculations which can be complex and require significant judgment. Estimates include many factors such as the nature of the acquired company’s business, its historical financial position and results, technology obsolescence, customer retention rates, discount rates, royalty rates and expected future performance. Independent valuation specialists are used to assist in determining certain fair value calculations. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Any adjustments required after the measurement period are recorded in the Consolidated Statements of Earnings. |
Recoverability of Long-Lived Assets | Recoverability of Long-Lived AssetsThe Company reviews its long-lived assets, including identifiable intangibles, for impairment when events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. If impairment indicators are present and the estimated future undiscounted cash flows are less than the carrying value of the assets, the carrying value is reduced to the fair market value. |
Income Taxes | Income Taxes The provision for income taxes is computed based on the pretax income reported for financial statement purposes. Deferred tax assets and liabilities are recognized for the expected future tax consequences attributed to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are anticipated to reverse. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not a tax benefit will not be realized. |
Leases | Leases The Company determines whether an arrangement that provides control over the use of an asset to the Company is a lease. The Company recognizes a lease liability and corresponding right-of-use asset on the Consolidated Balance Sheets based on the present value of future lease payments and recognizes lease expense on a straight-line basis over the lease term. Operating lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term (or at fair values in the case of those leases assumed in an acquisition). Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets and are expensed on a straight-line basis over the lease term. Variable lease expense is immaterial and primarily includes leases with payments indexed to inflation when the index changes after lease commencement. |
Stock-Based Compensation | Stock-Based CompensationStock-based compensation expense is recognized using the fair value method for all awards, |
Treasury Stock | Treasury Stock Repurchased common stock is stated at cost, determined on an average cost basis and is presented as a reduction of stockholders’ equity on the Consolidated Balance Sheets. |
Research and Development Expense | Research and Development ExpensesResearch and development expenses include scientific research costs such as salaries, facility costs, testing, technical information technology and administrative expenditures. Research and development expenses are for the application of scientific advances to the development of new and improved products and their uses. Substantially all research and development is performed in-house. Expenses are charged against earnings in the year incurred. |
Foreign Currency Forward Contracts - Cash Flow Hedges and Derivatives not Designated as Hedging Instruments | Foreign Currency Forward Contracts - Cash Flow Hedges and Derivatives Not Designated as Hedging Instruments The Company buys materials from foreign suppliers. Those transactions can be denominated in those suppliers’ local currency. The Company also sells to customers in foreign countries. Those transactions can be denominated in those customers’ local currency. Both of these transaction types can create volatility in the Company’s financial statements. The Company uses foreign currency forward contracts to manage those exposures and fluctuations. These contracts generally mature in 12 months or less, which is consistent with the forecasts of the rel ated purchases and sales. Certain contracts are designated as cash flow hedges, whereas the remaining contracts, most of which are related to certain intercompany transactions which offset balance sheet exposure, are not designated as hedging instruments, see Notes 12, 15 and 16. Net Investment Hedges The Company uses fixed-to-fixed cross-currency swap agreements to hedge its exposure to adverse foreign currency exchange rate movements for its operations in Europe. The Company has elected the spot method for designating these contracts as net investment hedges. The maturity dates range from 2027 to 2029 , see Notes 12, 15 and 16. Interest Rate Swaps - Cash Flow Hedges The Company uses swap agreements to hedge exposure related to interest expense and to manage its exposure to interest rate movements. The Company enters into interest rate s wap agreements designated as cash flow hedges to hedge future fixed-rate debt issuances, which effectively fix a portion of interest payments. The Company entered into and terminated agreements within fiscal 2021, see Notes 12, 15 and 16. |
Product Warranties | Product WarrantiesThe Company provides for estimated warranty expense at the time of sale and accrues for specific items at the time their existence is known and the amounts are determinable. The Company estimates warranty expense on certain products at the time of sale using quantitative measures based on historical warranty claim experience and evaluation of specific customer warranty issues |
New Significant Accounting Standards Recently Adopted and Not Yet Adopted | New Significant Accounting Standards Recently Adopted There were no new significant accounting standards adopted in fiscal 2023 or 2022 that had a material impact on the Company’s financial statements. New Significant Accounting Standards Not Yet Adopted The Company considers the applicability and impact of the FASB’s ASUs issued but not yet adopted. The Company assessed ASUs not listed above and determined they were either not applicable or were not expected to have a material impact on the Company’s financial reporting. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606) as if the entity had originated the contracts. The guidance is effective for fiscal years beginning after December 15, 2022, with early application permitted. This ASU is applicable to the Company’s fiscal year beginning in the first quarter of fiscal 2024. This guidance is applicable to all business combinations occurring after the effective date. In June 2022, the FASB issued ASU 2022-03, which amends Fair Value Measurement (Topic 820), Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (ASU 2022-03). This guidance clarifies guidance for fair value measurement of an equity security subject to a contractual sale restriction and establishes new disclosure requirements for such equity securities. The guidance is effective for fiscal years beginning after December 15, 2023, with early application permitted. The Company is currently evaluating the impact the adoption will have on its financial statements. |
Earnings Per Share | Basic net earnings per share (EPS) is computed by dividing net earnings by the weighted average number of outstanding common shares. Diluted net EPS is computed by dividing net earnings by the weighted average number of outstanding common shares and common share equivalents relating to stock options and other stock incentive plans. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Components of Acquisitions, Net of Cash Acquired | The components of the UTEC and Isolere acquisitions, net of cash acquired, as of the acquisition date were as follows (in millions): 2023 Intangible assets: Technology $ 84.0 Trademarks and tradenames 8.2 Customer relationships 1.2 Non-competition agreements 2.7 Intangible assets acquired 96.1 Tangible assets, net 9.6 Assets acquired, net 105.7 Goodwill 125.1 Aggregate purchase price 230.8 Add deferred tax asset 7.0 Less deferred tax liability (23.8) Less cash acquired (4.8) Acquisitions, net of cash acquired $ 209.2 The components of acquisitions, net of cash acquired in fiscal 2022, as of each acquisition date (in millions): Intangible assets: Technology $ 45.9 Trademarks and tradenames 4.0 Customer relationships 3.0 Non-competition agreements 0.6 Backlog 0.2 Intangible assets acquired 53.7 Tangible liabilities, net (2.7) Assets acquired, net 51.0 Goodwill 42.8 Aggregate purchase price 93.8 Less contingent consideration (24.6) Less cash acquired (0.3) Acquisitions, net of cash acquired $ 68.9 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Net sales, generally disaggregated by location where the customer’s order was placed, were as follows (in millions): Year Ended July 31, 2023 2022 2021 U.S. and Canada $ 1,464.7 $ 1,336.8 $ 1,084.2 Europe, Middle East and Africa (EMEA) 1,007.8 963.6 865.7 Asia Pacific (APAC) 608.8 669.0 649.2 Latin America (LATAM) 349.5 337.2 254.8 Total net sales $ 3,430.8 $ 3,306.6 $ 2,853.9 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Components of Inventory | The components of inventories, net were as follows (in millions): July 31, 2023 2022 Raw materials $ 155.1 $ 197.6 Work in process 50.9 56.1 Finished products 212.1 248.7 Total inventories, net $ 418.1 $ 502.4 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Components of Property, Plant And Equipment | The components of property, plant and equipment, net were as follows (in millions): July 31, 2023 2022 Land $ 29.3 $ 25.6 Buildings 430.8 396.2 Machinery and equipment 989.0 940.1 Computer software 142.0 141.0 Construction in progress 107.7 72.1 Less accumulated depreciation (1,045.9) (980.6) Total property, plant and equipment, net $ 652.9 $ 594.4 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Reconciliation of Goodwill | Goodwill by reportable segment was as follows (in millions): Mobile Industrial Life Sciences Segment Total Balance as of July 31, 2021 (1) $ 25.6 $ 296.9 $ — $ 322.5 Goodwill acquired — 2.1 40.7 42.8 Foreign exchange translation (0.3) (16.9) (2.3) (19.5) Balance as of July 31, 2022 (1) $ 25.3 $ 282.1 $ 38.4 $ 345.8 Goodwill acquired — — 125.1 125.1 Foreign exchange translation 0.2 7.0 3.0 10.2 Balance as of July 31, 2023 $ 25.5 $ 289.1 $ 166.5 $ 481.1 (1) All prior segment information has been recast to reflect the Company’s new segment structure and current period presentation (see Note 19). |
Schedule of Reconciliation of Intangibles | Intangible asset classes were as follows (in millions): Year Ended July 31, 2023 Weighted Amortizable Life (in Years) Gross Carrying Amount Accumulated Amortization Net Customer relationships 10.8 $ 107.8 $ (65.6) $ 42.2 Patents 18.9 33.4 (6.3) 27.1 Trademarks 9.0 15.9 (3.9) 12.0 Technology 17.2 116.3 (12.9) 103.4 Non-compete agreements 3.1 4.0 (0.6) 3.4 Total intangible assets $ 277.4 $ (89.3) $ 188.1 Year Ended July 31, 2022 Weighted Amortizable Life (in Years) Gross Carrying Amount Accumulated Amortization Net Customer relationships 11.4 $ 104.0 $ (60.2) $ 43.8 Patents 19.9 33.4 (4.7) 28.7 Trademarks 7.9 7.3 (2.6) 4.7 Technology 12.0 30.6 (9.1) 21.5 Non-compete agreements 6.4 1.2 (0.1) 1.1 Total intangible assets $ 176.5 $ (76.7) $ 99.8 |
Schedule of Expected Amortization Expense | Amortization expense relating to existing intangible assets as of July 31, 2023 was as follows (in millions): 2024 $ 15.2 2025 15.0 2026 13.9 2027 13.4 2028 13.0 Thereafter 117.6 Total amortization expense $ 188.1 |
Short-Term Borrowings and Lon_2
Short-Term Borrowings and Long-Term Debt (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Borrowings | Short-term borrowings were as follows (in millions): European Commercial Paper Program U.S. Credit Facilities European Operations Credit Facilities Rest of the World Credit Facilities Total Year Ended July 31, 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Available credit facilities $ 110.3 $ 102.1 $ 100.0 $ 100.0 $ 45.0 $ 42.4 $ 50.8 $ 52.8 $ 306.1 $ 297.3 Reductions to borrowing capacity: Outstanding borrowings 24.3 — 9.8 — — — — 3.7 34.1 3.7 Other non-borrowing reductions — — — — 28.8 27.0 18.8 19.1 47.6 46.1 Total reductions 24.3 — 9.8 — 28.8 27.0 18.8 22.8 81.7 49.8 Remaining borrowing capacity $ 86.0 $ 102.1 $ 90.2 $ 100.0 $ 16.2 $ 15.4 $ 32.0 $ 30.0 $ 224.4 $ 247.5 Weighted average interest rate as of July 31, 2023 and 2022 4.09 % N/A 6.17 % N/A N/A N/A N/A 0.37 % 4.69 % 0.37 % |
Schedule of Long-term Debt | Long-term debt was as follows: Interest Rate Outstanding Balance Financial Instrument Fixed or Variable Amount Maturity Date July 31, 2023 July 31, 2022 July 31, 2023 July 31, 2022 Unsecured senior notes Fixed $125.0 million March 27, 2024 3.72 % 3.72 % $ 125.0 $ 125.0 Unsecured senior notes Fixed $125.0 million June 17, 2030 3.18 % 3.18 % 125.0 125.0 Unsecured senior notes Fixed $100.0 million August 5, 2031 2.50 % 2.50 % 100.0 100.0 Unsecured revolving credit facility Variable $500.0 million May 21, 2026 5.09 % 2.88 % 96.2 125.0 Unsecured term loan Variable €80.0 million October 28, 2024 4.41 % 0.91 % 88.2 81.7 Unsecured senior notes Fixed $50.0 million November 5, 2028 2.12 % 2.12 % 50.0 50.0 Unsecured senior notes Fixed $25.0 million April 16, 2025 2.93 % 2.93 % 25.0 25.0 Unsecured term loan Variable ¥1.0 billion July 31, 2028 0.57 % 0.41 % 7.0 7.5 Unsecured term loan Variable ¥1.0 billion July 15, 2026 0.49 % 0.49 % 7.0 7.5 Debt issuance costs, net (1.8) (2.4) Subtotal 621.6 644.3 Less current maturities (125.0) — Total long-term debt $ 496.6 $ 644.3 |
Schedule of Maturities Of Long-term Debt | Future maturities of the Company’s long-term debt as of July 31, 2023 were as follows (in millions): 2024 $ 125.0 2025 113.2 2026 103.2 2027 — 2028 7.0 Thereafter 275.0 Total future maturities payments 623.4 Less debt issuance costs, net (1.8) Total future maturities payments, net of debt issuance costs $ 621.6 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Earnings Before Income Taxes | The components of earnings before income taxes were as follows (in millions): Year Ended July 31, 2023 2022 2021 U.S. $ 178.0 $ 132.8 $ 114.1 Foreign 290.7 305.6 266.9 Total $ 468.7 $ 438.4 $ 381.0 |
Schedule of Components of the Provision For Income Taxes | The components of the provision for income taxes were as follows (in millions): Year Ended July 31, 2023 2022 2021 Current Federal $ 38.1 $ 17.4 $ 13.2 State 7.3 4.9 3.9 Foreign 79.8 84.7 82.9 Total current 125.2 107.0 100.0 Deferred Federal (13.3) 2.8 (1.9) State (1.8) (0.3) (0.2) Foreign (0.2) (3.9) (3.8) Total deferred (15.3) (1.4) (5.9) Total provision for income taxes $ 109.9 $ 105.6 $ 94.1 |
Schedule of Reconciliation of the U.S. Statutory Income Tax Rate with the Effective Income Tax Rate | The reconciliation of the U.S. statutory federal income tax rate with the effective income tax rate was as follows: Year Ended July 31, 2023 2022 2021 U.S. statutory federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes 0.9 0.9 0.8 Foreign operations 3.8 3.6 4.4 Global Intangible Low Tax Income 0.2 0.3 0.6 Foreign Derived Intangible Income (1.6) (0.6) (0.7) Research and development credit (0.7) (0.6) (0.7) Change in unrecognized tax benefits — (0.8) 0.2 Tax benefits on stock-based compensation (0.7) (0.5) (1.0) Other 0.5 0.8 0.1 Effective income tax rate 23.4 % 24.1 % 24.7 % |
Schedule of the Tax Effects of Temporary Differences that Give Rise to Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to deferred tax assets and liabilities were as follows (in millions): July 31, 2023 2022 Deferred tax assets Accrued expenses $ 12.2 $ 11.6 Compensation and retirement plans 24.7 26.4 Capitalization of R&D costs 17.6 — Net operating loss (NOL) and tax credit carryforwards 15.1 6.4 Operating lease assets 15.0 11.6 Other 6.2 6.4 Gross deferred tax assets 90.8 62.4 Valuation allowance (6.4) (3.4) Deferred tax assets, net of valuation allowance 84.4 59.0 Deferred tax liabilities Depreciation and amortization (79.5) (57.0) Operating lease liabilities (15.1) (11.6) Other (4.2) (2.4) Deferred tax liabilities (98.8) (71.0) Net deferred tax liability $ (14.4) $ (12.0) |
Schedule of NOL and Tax Credit Valuation Allowances | The activity in the NOL and tax credit valuation allowances was as follows (in millions): Year Ended July 31, 2023 2022 2021 Balance as of beginning of year $ (3.4) $ (4.6) $ (8.1) Additions charged to costs and expenses (3.0) (0.9) (0.8) Deductions from reserves — 2.1 4.3 Balance as of end of year $ (6.4) $ (3.4) $ (4.6) |
Schedule of Reconciliation of the Beginning and Ending Amount of Gross Unrecognized Tax Benefits | The reconciliation of the beginning and ending amount of gross unrecognized tax benefits was as follows (in millions): Year Ended July 31, 2023 2022 2021 Balance as of beginning of year $ 15.2 $ 18.7 $ 16.9 Additions for tax positions of the current year 2.5 2.7 4.7 Additions for tax positions of prior years — — 2.7 Reductions for tax positions of prior years 0.1 (1.1) (1.0) Reductions due to lapse of applicable statute of limitations (2.8) (5.1) (4.6) Balance as of end of year $ 15.0 $ 15.2 $ 18.7 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Leases [Abstract] | |
Schedule of Lease Cost | The Company’s operating lease costs were as follows (in millions): Year Ended July 31, 2023 2022 Operating lease cost $ 24.5 $ 21.4 Short-term lease cost 3.2 3.1 Total lease costs $ 27.7 $ 24.5 |
Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information for the Company was as follows (in millions): July 31, Balance Sheet Location 2023 2022 Right-of-use lease assets Other long-term assets $ 59.4 $ 44.7 Current lease liabilities Other current liabilities $ 17.8 $ 16.3 Long-term lease liabilities Other long-term liabilities $ 42.4 $ 28.5 Additional information related to operating leases was as follows: July 31, 2023 2022 Weighted average remaining lease term (years) 4.2 3.4 Weighted average discount rate 3.89 % 3.17 % |
Schedule of Operating Lease Liability | Remaining payments for operating leases having initial terms of more than one year as of July 31, 2023 were as follows (in millions): 2024 $ 19.6 2025 15.2 2026 11.3 2027 8.1 2028 5.7 Thereafter 5.3 Total future lease payments 65.2 Less imputed interest 5.0 Present value of future lease payments $ 60.2 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Information Necessary To Calculate Basic And Diluted Earnings Per Share | Basic and diluted net EPS calculations were as follows (in millions, except per share amounts): Year Ended July 31, 2023 2022 2021 Net earnings $ 358.8 $ 332.8 $ 286.9 Weighted average common shares outstanding Weighted average common shares – basic 121.8 123.7 126.4 Dilutive impact of stock-based awards 1.8 1.5 1.8 Weighted average common shares – diluted 123.6 125.2 128.2 Net EPS – basic $ 2.95 $ 2.69 $ 2.27 Net EPS – diluted $ 2.90 $ 2.66 $ 2.24 Stock options excluded from net EPS calculation 0.0 1.6 0.8 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Treasury Stock Activity | Treasury stock share activity was as follows: Year Ended July 31, 2023 2022 Balance as of beginning of year 29,089,612 26,620,560 Stock repurchases 2,485,000 2,900,000 Net issuance upon exercise of stock options (941,837) (360,448) Issuance under compensation plans (84,942) (52,678) Other activity (19,137) (17,822) Balance as of end of year 30,528,696 29,089,612 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss By Component | Changes in accumulated other comprehensive loss for the years ended July 31, 2023 and 2022 were as follows (in millions): Foreign Pension Derivative Total Balance as of July 31, 2022, net of tax $ (143.6) $ (67.5) $ 5.5 $ (205.6) Other comprehensive income (loss) before reclassifications and tax 34.0 (6.9) (1) (1.9) 25.2 Tax benefit — 2.2 0.5 2.7 Other comprehensive income (loss) before reclassifications, net of tax 34.0 (4.7) (1.4) 27.9 Reclassifications, before tax — 7.5 (2) 0.3 7.8 Tax expense — (2.5) (0.1) (2.6) Reclassifications, net of tax — 5.0 0.2 (3) 5.2 Other comprehensive income (loss), net of tax 34.0 0.3 (1.2) 33.1 Balance as of July 31, 2023, net of tax $ (109.6) $ (67.2) $ 4.3 $ (172.5) Balance as of July 31, 2021, net of tax $ (44.0) $ (74.7) $ 0.5 $ (118.2) Other comprehensive (loss) income before reclassifications and tax (99.6) (6.2) (1) 9.2 (96.6) Tax benefit (expense) — 1.4 (2.0) (0.6) Other comprehensive (loss) income before reclassifications, net of tax (99.6) (4.8) 7.2 (97.2) Reclassifications, before tax — 15.5 (2) (2.7) 12.8 Tax (expense) benefit — (3.5) 0.5 (3.0) Reclassifications, net of tax — 12.0 (2.2) (3) 9.8 Other comprehensive (loss) income, net of tax (99.6) 7.2 5.0 (87.4) Balance as of July 31, 2022, net of tax $ (143.6) $ (67.5) $ 5.5 $ (205.6) (1) In fiscal 2023 and 2022, pension settlement accounting was triggered. In addition, pension curtailment accounting was triggered in fiscal 2023. Remeasurements of the Company’s pension obligations resulted in an increase of $6.9 million and $6.2 million in fiscal 2023 and 2022, respectively, to accumulated other comprehensive loss on the Consolidated Balance Sheets, see Note 14. (2) Amounts include reclassifications of $6.6 million and $3.0 million, a foreign currency translation gain of $1.4 million and loss of $4.9 million and net amortization of prior service costs and actuarial losses of $2.3 million and $7.6 million in fiscal 2023 and 2022, respectively. Amounts are included in other income, net in the Consolidated Statements of Earnings, see Note 14. (3) Relates to designated foreign currency forward contracts that were reclassified from accumulated other comprehensive loss on the Consolidated Balance Sheets to net sales, cost of sales and operating expenses in the Consolidated Statements of Earnings, see Note 15. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of Valuation Assumption Used to Determine Fair Value of Stock-Based Compensation Awards | The fair value of these awards was determined using the following inputs: Year Ended July 31, 2023 2022 2021 Risk-free interest rate 3.8% - 4.2% 1.2% - 1.8% 0.5% - 1.3% Expected volatility 26.8% - 27.5% 26.0% - 27.0% 25.4% - 26.6% Expected dividend yield 1.6 % 1.6 % 1.6 % Expected life: Director grants 8 years 8 years 8 years Officer grants 7 years 7 years 8 years Non-officer grants 7 years 7 years 7 years |
Schedule of Stock Option Activity | Option activity was as follows: Options Weighted Balance outstanding as of July 31, 2020 6,533,979 $ 42.44 Granted 1,004,631 46.61 Exercised (1,030,938) 36.00 Expired/forfeited (62,929) 49.95 Balance outstanding as of July 31, 2021 6,444,743 44.05 Granted 898,726 59.18 Exercised (365,267) 37.02 Expired/forfeited (51,041) 53.15 Balance outstanding as of July 31, 2022 6,927,161 46.32 Granted 920,816 51.35 Exercised (1,006,602) 40.48 Expired/forfeited (63,968) 53.47 Balance outstanding as of July 31, 2023 6,777,407 $ 47.80 |
Schedule of Outstanding and Exercisable Options | Outstanding and exercisable stock options as of July 31, 2023 were as follows: Range of Exercise Prices Number Weighted Weighted Number Weighted Weighted $28.00 to $37.99 672,703 2.3 $ 29.24 672,703 2.3 $ 29.24 $38.00 to $43.99 1,393,425 2.3 41.29 1,393,425 2.3 41.29 $44.00 to $49.99 1,452,757 5.9 45.96 1,162,081 5.5 45.93 $50.00 to $55.99 1,656,918 7.8 51.34 769,671 6.2 51.75 $56.00 and above 1,601,604 6.9 59.27 995,816 6.0 59.17 6,777,407 5.5 $ 47.80 4,993,696 4.4 $ 45.93 |
Schedule of Status of Options that Contain Vesting Provisions | For the year ended July 31, 2023, activity for non-vested stock options that contain vesting provisions was as follows: Options Weighted Balance outstanding as of beginning of year 1,809,473 $ 12.31 Granted 920,816 15.67 Vested (895,862) 11.78 Forfeited (50,716) 13.61 Balance outstanding as of end of year 1,783,711 $ 14.27 |
Schedule of Performance Shares Activity | The weighted average grant date fair value related to the Company’s performance-based awards was as follows: Year Ended July 31, 2023 2022 2021 Weighted average grant date fair value $ 50.89 $ 59.40 $ 46.06 Performance-based awards for non-vested activity were as follows: Performance Shares Weighted Balance outstanding as of July 31, 2022 188,206 $ 52.20 Granted 113,100 50.89 Vested (98,853) 46.06 Forfeited (7,692) 54.76 Balance outstanding as of July 31, 2023 194,761 $ 54.46 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Defined Benefit Plan Disclosure | |
Schedule of Net Periodic Pension Costs and Amounts Recognized in Other Comprehensive Income | Net periodic pension costs for the Company’s pension plans were as follows (in millions): Year Ended July 31, 2023 2022 2021 Net periodic pension costs Service cost $ 6.7 $ 6.9 $ 7.5 Interest cost 17.0 10.6 10.2 Expected return on assets (25.3) (24.8) (23.7) Prior service cost amortization — 0.2 0.3 Actuarial loss amortization 2.1 6.9 8.2 Settlement charge 5.5 3.0 2.0 Curtailment charge 0.2 — 0.8 Net periodic pension costs 6.2 2.8 5.3 Other changes recognized in other comprehensive income (loss): Prior service cost (0.4) — — Net actuarial (loss) gain (5.9) (1.3) 35.9 Amortization of prior service cost 0.2 0.3 1.2 Amortization of net actuarial loss 7.7 9.9 10.2 Total recognized in other comprehensive income 1.6 8.9 47.3 Total recognized in net periodic pension costs and other comprehensive (loss) income $ (4.6) $ 6.1 $ 42.0 |
Schedule of Changes in Projected Benefit Obligations, Fair Value of Plan Assets and Funded Status | The changes in projected benefit obligations, fair value of plan assets and funded status of the Company’s pension plans for the years ended July 31, 2023 and 2022 were as follows (in millions): Year Ended July 31, 2023 2022 Change in projected benefit obligation Projected benefit obligation, beginning of year $ 442.6 $ 579.9 Service cost 6.7 6.9 Interest cost 17.0 10.6 Plan amendments 0.2 — Participant contributions 0.7 0.7 Actuarial gain (42.0) (100.3) Foreign currency exchange rates 9.2 (25.4) Settlements paid (17.0) (12.9) Acquisition 1.2 — Benefits paid (17.5) (16.9) Projected benefit obligation, end of year 401.1 442.6 Change in fair value of plan assets Fair value of plan assets, beginning of year 459.8 591.3 Actual return on plan assets (22.1) (80.7) Company contributions 2.6 2.3 Participant contributions 0.7 0.7 Foreign currency exchange rates 8.3 (24.0) Settlements paid (17.0) (12.9) Acquisition 1.2 — Benefits paid (17.5) (16.9) Fair value of plan assets, end of year 416.0 459.8 Funded status of plans, end of year $ 14.9 $ 17.2 Amounts recognized on the Consolidated Balance Sheets Other long-term assets $ 34.7 $ 38.3 Other current liabilities (1.7) (1.8) Other long-term liabilities (18.1) (19.3) Net recognized asset $ 14.9 $ 17.2 |
Schedule of Weighted-Average Discount Rates in Determining Actuarial Present Value of Projected Benefit Obligation | The significant assumptions used in determining the actuarial present value of the projected benefit obligation were as follows: Year Ended July 31, 2023 2022 U.S. plans Discount rate 5.58 % 4.62 % Expected rate of return on plan assets 5.66 % 5.41 % Rate of compensation increase N/A N/A Non-U.S. plans Discount rate 4.80 % 3.26 % Expected rate of return on plan assets 4.39 % 3.40 % Rate of compensation increase 3.12 % 2.99 % |
Schedule of Assumptions Used to Determine Net Periodic Benefit Cost | The weighted average discount rates, expected returns on plan assets and rates of increase in future compensation levels used to determine the net periodic pension costs were as follows: Year Ended July 31, 2023 2022 2021 U.S. plans Discount rate 4.62 % 2.55 % 2.37 % Expected rate of return on plan assets 5.66 % 5.41 % 5.33 % Rate of compensation increase N/A N/A N/A Non-U.S. plans Discount rate 3.26 % 1.60 % 1.52 % Expected rate of return on plan assets 4.39 % 3.40 % 3.13 % Rate of compensation increase 3.12 % 2.99 % 2.86 % |
Schedule of Estimated Fair Value of Pension Plan Assets and their Respective Levels in the Fair Value Hierarchy | During the year ended July 31, 2023, the Company’s asset allocation was as follows: Salaried Pension Plan Hourly Pension Plan Global equity securities 33 % 32 % Fixed income securities 65 67 Real asset funds 1 — Cash and cash equivalents 1 1 Total 100 % 100 % |
Schedule of Certain Investments at NAV | Certain investments, valued at NAV, had the following unfunded commitments and/or redemption restrictions (in millions): July 31, 2023 July 31, 2022 NAV Unfunded Commitments NAV Unfunded Commitments Redemption Frequency Redemption Notice (Days) Global equity securities $ 33.6 $ 1.8 $ 37.0 $ 1.8 Daily 0 - 5 Fixed income securities 9.5 — 10.8 — Daily, Weekly and Quarterly 0 - 60 Real asset funds 3.1 4.2 2.9 4.2 Not eligible N/A Total U.S. assets $ 46.2 $ 6.0 $ 50.7 $ 6.0 |
Schedule of Estimated Future Benefit Payments | Estimated future benefit required payments for the Company’s pension plans as of July 31, 2023 were as follows (in millions): 2024 $ 33.0 2025 $ 28.7 2026 $ 30.9 2027 $ 28.8 2028 $ 28.9 2029-2033 $ 161.5 |
U.S. Plan | |
Defined Benefit Plan Disclosure | |
Schedule of Estimated Fair Value of Pension Plan Assets and their Respective Levels in the Fair Value Hierarchy | The estimated fair value of pension plan assets and their respective levels in the fair value hierarchy by asset category were as follows (in millions): Level 1 Level 2 Level 3 Total Balances as of July 31, 2023 Cash and cash equivalents $ 3.6 $ 0.7 $ — $ 4.3 Global equity securities 61.2 55.7 — 116.9 Fixed income securities 90.1 117.2 — 207.3 Insurance contracts — — 41.3 41.3 Total investments in the fair value hierarchy $ 154.9 $ 173.6 $ 41.3 369.8 Investments using NAV as practical expedient 46.2 Total assets $ 416.0 Balances as of July 31, 2022 Cash and cash equivalents $ 6.6 $ 0.8 $ — $ 7.4 Global equity securities 136.5 — — 136.5 Fixed income securities 114.1 115.7 — 229.8 Insurance contracts — — 35.4 35.4 Total investments in the fair value hierarchy $ 257.2 $ 116.5 $ 35.4 409.1 Investments using NAV as practical expedient 50.7 Total assets $ 459.8 |
Non - U.S. Plan | |
Defined Benefit Plan Disclosure | |
Schedule of the Changes in the Fair Value of Non-U.S. Pension Plans' Assets with Unobservable Inputs | The changes in the fair values of the pension plans’ Level 3 assets were as follows (in millions): Year Ended July 31, 2023 2022 2021 Balance as of beginning of year $ 35.4 $ 37.7 $ 35.4 Unrealized gains 2.7 3.5 3.6 Foreign currency exchange 3.0 (5.6) 0.1 Purchases and sales, net 0.2 (0.2) (1.4) Balance as of end of year $ 41.3 $ 35.4 $ 37.7 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Derivatives on Balance Sheet | The fair value of the Company’s derivative contracts, recorded on the Consolidated Balance Sheets, was as follows (in millions): Assets Liabilities July 31, July 31, Instruments Balance Sheet Location 2023 2022 2023 2022 Designated as hedging instruments Foreign currency forward contracts Other current assets, other long-term assets $ 0.6 $ 0.3 $ 0.1 $ 2.7 Net investment hedges Other current assets, other long-term assets and other long-term liabilities 3.6 8.2 — — Total designated 4.2 8.5 0.1 2.7 Not designated as hedging instruments Foreign currency forward contracts Other current liabilities 0.7 1.7 1.4 2.5 Total not designated 0.7 1.7 1.4 2.5 Total $ 4.9 $ 10.2 $ 1.5 $ 5.2 |
Schedule of Company’s Contingent Consideration Obligations | A reconciliation of the fair value of the Company’s contingent consideration liability that use unobservable inputs was as follows (in millions): Balance as of July 31, 2022 $ 24.7 Issuances — Adjustments to fair value 0.3 Balance as of July 31, 2023 $ 25.0 Maximum potential payout $ 30.7 Balance as of July 31, 2021 $ — Issuances 24.6 Adjustments to fair value 0.1 Balance as of July 31, 2022 $ 24.7 Maximum potential payout $ 30.7 |
Guarantees (Tables)
Guarantees (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Guarantor obligations | The outstanding debt contingent liability for standby letters of credit was as follows (in millions): Year Ended July 31, 2023 2022 Contingent liability for standby letters of credit issued under the Company’s revolving credit facility $ 7.5 $ 7.5 Amounts drawn for letters of credit under the Company’s revolving credit facility $ — $ — |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Schedule of Segment Details | Segment details were as follows (in millions): Mobile Solutions Segment Industrial Solutions Segment Life Sciences Segment Corporate and Total Year ended July 31, 2023 Net sales $ 2,174.8 $ 1,014.7 $ 241.3 $ — $ 3,430.8 Equity earnings in unconsolidated affiliates $ 3.6 $ — $ — $ — $ 3.6 Earnings (loss) before income taxes $ 330.4 $ 186.2 $ 9.9 $ (57.8) $ 468.7 Assets $ 1,243.8 $ 788.1 $ 513.8 $ 224.8 $ 2,770.5 Equity investments in unconsolidated affiliates $ 24.2 $ 0.2 $ — $ — $ 24.4 Year ended July 31, 2022 Net sales $ 2,126.5 $ 901.0 $ 279.1 $ — $ 3,306.6 Equity earnings in unconsolidated affiliates $ 1.7 $ — $ — $ — $ 1.7 Earnings (loss) before income taxes $ 293.8 $ 133.0 $ 64.9 $ (53.3) $ 438.4 Assets $ 1,319.4 $ 816.0 $ 267.8 $ 197.1 $ 2,600.3 Equity investments in unconsolidated affiliates $ 22.3 $ 0.1 $ — $ — $ 22.4 Year ended July 31, 2021 Net sales $ 1,818.4 $ 781.0 $ 254.5 $ — $ 2,853.9 Equity earnings in unconsolidated affiliates $ 4.2 $ — $ — $ — $ 4.2 Earnings (loss) before income taxes $ 276.1 $ 81.0 $ 65.2 $ (41.3) $ 381.0 Assets $ 1,216.0 $ 812.0 $ 139.8 $ 232.4 $ 2,400.2 Equity investments in unconsolidated affiliates $ 24.0 $ 0.2 $ — $ — $ 24.2 |
Schedule of Reconciliation of Net Sales by Product Group Per Segment | Net sales by business unit were as follows (in millions): Year Ended July 31, 2023 2022 2021 Mobile Solutions segment Off-Road $ 428.7 $ 390.5 $ 316.3 On-Road 145.8 136.1 138.8 Aftermarket 1,600.3 1,599.9 1,363.3 Total Mobile Solutions segment 2,174.8 2,126.5 1,818.4 Industrial Solutions segment Industrial Filtration Solutions 872.2 780.5 684.8 Aerospace and Defense 142.5 120.5 96.2 Total Industrial Solutions segment 1,014.7 901.0 781.0 Life Sciences segment Total Life Sciences segment 241.3 279.1 254.5 Total Company $ 3,430.8 $ 3,306.6 $ 2,853.9 |
Schedule of Net Sales by Origination and Property, Plant and Equipment by Geographic Region | Net sales, generally disaggregated by location where the customer’s order was received and property, plant and equipment, net by geographic region were as follows (in millions): Net Sales Property, Plant and Equipment, Net Year ended July 31, 2023 U.S. and Canada $ 1,464.7 $ 219.7 EMEA 1,007.8 202.4 APAC 608.8 76.5 LATAM 349.5 154.3 Total $ 3,430.8 $ 652.9 Year ended July 31, 2022 U.S. and Canada $ 1,336.8 $ 218.1 EMEA 963.6 184.3 APAC 669.0 59.5 LATAM 337.2 132.5 Total $ 3,306.6 $ 594.4 Year ended July 31, 2021 U.S. and Canada $ 1,084.2 $ 214.0 EMEA 865.7 220.4 APAC 649.2 60.4 LATAM 254.8 123.0 Total $ 2,853.9 $ 617.8 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |||
Foreign currency transaction losses | $ 6,400,000 | $ 6,300,000 | $ 2,900,000 |
Cost of sales | $ 2,270,200,000 | $ 2,239,200,000 | 1,882,200,000 |
Percentage of LIFO inventory (as a percent) | 29.70% | 31.60% | |
Excess of FIFO over LIFO inventory | $ 56,100,000 | $ 59,700,000 | |
Depreciation | 80,900,000 | 85,100,000 | 87,100,000 |
Asset impairment charges | $ 0 | $ 0 | 0 |
Non-competition agreements | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |||
Finite lived intangible asset estimated useful life (in years) | 3 years 1 month 6 days | 6 years 4 months 24 days | |
Forward Foreign Currency Exchange Contracts | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |||
Derivative instrument term (in months) | 12 months | ||
Minimum | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |||
Capitalization of direct cost, amortization period (in years) | 5 years | ||
Minimum | Customer relationships | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |||
Finite lived intangible asset estimated useful life (in years) | 1 year | ||
Minimum | Patents, Trademarks And Technology | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |||
Finite lived intangible asset estimated useful life (in years) | 1 year | ||
Minimum | Non-competition agreements | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |||
Finite lived intangible asset estimated useful life (in years) | 1 year | ||
Minimum | Building and Building Improvements | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |||
Property, plant and equipment, useful life (in years) | 10 years | ||
Minimum | Machinery and equipment | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |||
Property, plant and equipment, useful life (in years) | 3 years | ||
Minimum | Software Development | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |||
Property, plant and equipment, useful life (in years) | 5 years | ||
Maximum | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |||
Capitalization of direct cost, amortization period (in years) | 10 years | ||
Maximum | Customer relationships | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |||
Finite lived intangible asset estimated useful life (in years) | 20 years | ||
Maximum | Patents, Trademarks And Technology | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |||
Finite lived intangible asset estimated useful life (in years) | 20 years | ||
Maximum | Non-competition agreements | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |||
Finite lived intangible asset estimated useful life (in years) | 20 years | ||
Maximum | Building and Building Improvements | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |||
Property, plant and equipment, useful life (in years) | 40 years | ||
Maximum | Machinery and equipment | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |||
Property, plant and equipment, useful life (in years) | 10 years | ||
Maximum | Software Development | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |||
Property, plant and equipment, useful life (in years) | 7 years | ||
Shipping and Handling | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |||
Cost of sales | $ 91,200,000 | $ 96,400,000 | $ 79,200,000 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) € in Millions | 12 Months Ended | |||||||||
Jun. 29, 2023 USD ($) | Jun. 29, 2023 EUR (€) | Feb. 01, 2023 USD ($) | Jun. 13, 2022 USD ($) | Nov. 22, 2021 USD ($) | Nov. 22, 2021 EUR (€) | Nov. 01, 2021 USD ($) | Jul. 31, 2023 USD ($) | Jul. 31, 2022 USD ($) | Jul. 31, 2021 USD ($) | |
Business Acquisition | ||||||||||
Acquisitions, net of cash acquired | $ 209,200,000 | $ 68,900,000 | $ 0 | |||||||
Goodwill | 481,100,000 | 345,800,000 | 322,500,000 | |||||||
Contingent consideration, non current | 0 | $ 0 | ||||||||
Maximum payout of contingent consideration | 3,000,000 | |||||||||
Univercells Technologies | ||||||||||
Business Acquisition | ||||||||||
Acquisitions, net of cash acquired | $ 146,900,000 | € 134.2 | ||||||||
Goodwill | 97,000,000 | |||||||||
Intangible assets | 51,600,000 | |||||||||
Deferred tax liabilities | 12,900,000 | |||||||||
Deferred tax assets | 7,000,000 | |||||||||
Net working capital | $ (900,000) | |||||||||
Isolere | ||||||||||
Business Acquisition | ||||||||||
Acquisitions, net of cash acquired | $ 62,300,000 | |||||||||
Goodwill | 28,100,000 | |||||||||
Intangible assets | 44,500,000 | |||||||||
Deferred tax liabilities | 10,900,000 | |||||||||
Net working capital | $ 400,000 | |||||||||
Purilogics, LLC | ||||||||||
Business Acquisition | ||||||||||
Acquisitions, net of cash acquired | $ 19,900,000 | |||||||||
Maximum payout of contingent consideration | $ 29,000,000 | |||||||||
Contingent consideration accrued | 23,200,000 | 23,000,000 | ||||||||
Contingent consideration, non current | 1,100,000 | 100,000 | ||||||||
Maximum payout of contingent consideration | 29,000,000 | |||||||||
Less contingent consideration | $ 23,200,000 | 23,000,000 | ||||||||
Purilogics, LLC | Minimum | ||||||||||
Business Acquisition | ||||||||||
Contingent consideration, terminating (in years) | 3 years | |||||||||
Purilogics, LLC | Maximum | ||||||||||
Business Acquisition | ||||||||||
Contingent consideration, terminating (in years) | 5 years | |||||||||
Solaris Biotechnology Srl | ||||||||||
Business Acquisition | ||||||||||
Acquisitions, net of cash acquired | $ 45,700,000 | € 41 | ||||||||
Pearson Arnold Industrial Services | ||||||||||
Business Acquisition | ||||||||||
Acquisitions, net of cash acquired | $ 3,300,000 | |||||||||
Other Acquisitions | ||||||||||
Business Acquisition | ||||||||||
Maximum payout of contingent consideration | $ 3,100,000 | |||||||||
Contingent consideration accrued | $ 900,000 | 300,000 | ||||||||
Contingent consideration, non current | 1,700,000 | 1,400,000 | ||||||||
Less contingent consideration | $ 1,700,000 | 1,700,000 | 1,700,000 | |||||||
Contingent consideration, liability, current | $ 0 | $ 300,000 | ||||||||
Other Acquisitions | Minimum | ||||||||||
Business Acquisition | ||||||||||
Contingent consideration, terminating (in years) | 3 years | |||||||||
Other Acquisitions | Maximum | ||||||||||
Business Acquisition | ||||||||||
Contingent consideration, terminating (in years) | 5 years |
Acquisitions (Components Acquis
Acquisitions (Components Acquisitions, Net Of Cash Acquired) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Business Acquisition | |||
Goodwill | $ 481.1 | $ 345.8 | $ 322.5 |
Acquisitions, net of cash acquired | 209.2 | 68.9 | $ 0 |
Isolere And Univercells | |||
Business Acquisition | |||
Intangible assets: | 96.1 | ||
Tangible assets, net | 9.6 | ||
Assets acquired, net | 105.7 | ||
Goodwill | 125.1 | ||
Aggregate purchase price | 230.8 | ||
Add deferred tax asset | 7 | ||
Less deferred tax liability | (23.8) | ||
Less cash acquired | (4.8) | ||
Acquisitions, net of cash acquired | 209.2 | ||
Isolere And Univercells | Technology | |||
Business Acquisition | |||
Intangible assets: | 84 | ||
Isolere And Univercells | Trademarks and tradenames | |||
Business Acquisition | |||
Intangible assets: | 8.2 | ||
Isolere And Univercells | Customer relationships | |||
Business Acquisition | |||
Intangible assets: | 1.2 | ||
Isolere And Univercells | Non-competition agreements | |||
Business Acquisition | |||
Intangible assets: | $ 2.7 | ||
Pearson Arnold Industrial Services | |||
Business Acquisition | |||
Intangible assets: | 53.7 | ||
Tangible liabilities, net | (2.7) | ||
Assets acquired, net | 51 | ||
Goodwill | 42.8 | ||
Aggregate purchase price | 93.8 | ||
Less contingent consideration | (24.6) | ||
Less cash acquired | (0.3) | ||
Acquisitions, net of cash acquired | 68.9 | ||
Pearson Arnold Industrial Services | Technology | |||
Business Acquisition | |||
Intangible assets: | 45.9 | ||
Pearson Arnold Industrial Services | Trademarks and tradenames | |||
Business Acquisition | |||
Intangible assets: | 4 | ||
Pearson Arnold Industrial Services | Customer relationships | |||
Business Acquisition | |||
Intangible assets: | 3 | ||
Pearson Arnold Industrial Services | Non-competition agreements | |||
Business Acquisition | |||
Intangible assets: | 0.6 | ||
Pearson Arnold Industrial Services | Backlog | |||
Business Acquisition | |||
Intangible assets: | $ 0.2 |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue by Geographic Region) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Disaggregation of Revenue | |||
Net sales | $ 3,430.8 | $ 3,306.6 | $ 2,853.9 |
U.S. and Canada | |||
Disaggregation of Revenue | |||
Net sales | 1,464.7 | 1,336.8 | 1,084.2 |
EMEA | |||
Disaggregation of Revenue | |||
Net sales | 1,007.8 | 963.6 | 865.7 |
APAC | |||
Disaggregation of Revenue | |||
Net sales | 608.8 | 669 | 649.2 |
LATAM | |||
Disaggregation of Revenue | |||
Net sales | $ 349.5 | $ 337.2 | $ 254.8 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Jul. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Contract with customer asset | $ 13.3 | $ 17.7 |
Contract with customer liability | $ 25.3 | $ 22.3 |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Jul. 31, 2022 |
Inventory, Net [Abstract] | ||
Raw materials | $ 155.1 | $ 197.6 |
Work in process | 50.9 | 56.1 |
Finished products | 212.1 | 248.7 |
Total inventories, net | $ 418.1 | $ 502.4 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 |
Property, Plant and Equipment | |||
Less accumulated depreciation | $ (1,045.9) | $ (980.6) | |
Property, plant and equipment, net | 652.9 | 594.4 | $ 617.8 |
Land | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 29.3 | 25.6 | |
Buildings | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 430.8 | 396.2 | |
Machinery and equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 989 | 940.1 | |
Computer software | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 142 | 141 | |
Construction in progress | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $ 107.7 | $ 72.1 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Reconciliation of Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Goodwill | ||
Beginning balance | $ 345.8 | $ 322.5 |
Goodwill acquired | 125.1 | 42.8 |
Foreign exchange translation | 10.2 | (19.5) |
Ending balance | 481.1 | 345.8 |
Mobile Solutions Segment | ||
Goodwill | ||
Beginning balance | 25.3 | 25.6 |
Goodwill acquired | 0 | 0 |
Foreign exchange translation | 0.2 | (0.3) |
Ending balance | 25.5 | 25.3 |
Industrial Solutions Segment | ||
Goodwill | ||
Beginning balance | 282.1 | 296.9 |
Goodwill acquired | 0 | 2.1 |
Foreign exchange translation | 7 | (16.9) |
Ending balance | 289.1 | 282.1 |
Life Sciences Segment | ||
Goodwill | ||
Beginning balance | 38.4 | 0 |
Goodwill acquired | 125.1 | 40.7 |
Foreign exchange translation | 3 | (2.3) |
Ending balance | $ 166.5 | $ 38.4 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | Jun. 29, 2023 | Feb. 01, 2023 | |
Finite-Lived Intangible Assets | |||||
Foreign currency transaction gains (losses) | $ 3.2 | $ (6.3) | |||
Intangible asset amortization expense | $ 11.4 | $ 9.2 | $ 8.2 | ||
Technology | |||||
Finite-Lived Intangible Assets | |||||
Finite lived intangible asset estimated useful life (in years) | 17 years 2 months 12 days | 12 years | |||
Non-competition agreements | |||||
Finite-Lived Intangible Assets | |||||
Finite lived intangible asset estimated useful life (in years) | 3 years 1 month 6 days | 6 years 4 months 24 days | |||
Univercells Technologies | |||||
Finite-Lived Intangible Assets | |||||
Intangible assets | $ 51.6 | ||||
Univercells Technologies | Technology | |||||
Finite-Lived Intangible Assets | |||||
Intangible assets | $ 42.3 | ||||
Finite lived intangible asset estimated useful life (in years) | 18 years | ||||
Univercells Technologies | Trademarks and tradenames | |||||
Finite-Lived Intangible Assets | |||||
Intangible assets | $ 6.7 | ||||
Finite lived intangible asset estimated useful life (in years) | 10 years | ||||
Univercells Technologies | Non-competition agreements | |||||
Finite-Lived Intangible Assets | |||||
Intangible assets | $ 1.4 | ||||
Finite lived intangible asset estimated useful life (in years) | 2 years | ||||
Univercells Technologies | Customer relationships | |||||
Finite-Lived Intangible Assets | |||||
Intangible assets | $ 1.2 | ||||
Finite lived intangible asset estimated useful life (in years) | 20 years | ||||
Isolere | |||||
Finite-Lived Intangible Assets | |||||
Intangible assets | $ 44.5 | ||||
Isolere | Technology | |||||
Finite-Lived Intangible Assets | |||||
Intangible assets | $ 41.7 | ||||
Finite lived intangible asset estimated useful life (in years) | 20 years | ||||
Isolere | Trademarks and tradenames | |||||
Finite-Lived Intangible Assets | |||||
Intangible assets | $ 1.5 | ||||
Finite lived intangible asset estimated useful life (in years) | 10 years | ||||
Isolere | Non-competition agreements | |||||
Finite-Lived Intangible Assets | |||||
Intangible assets | $ 1.3 | ||||
Finite lived intangible asset estimated useful life (in years) | 3 years | ||||
Purilogics | |||||
Finite-Lived Intangible Assets | |||||
Intangible assets | $ 29.9 | ||||
Purilogics | Technology | |||||
Finite-Lived Intangible Assets | |||||
Intangible assets | $ 28.6 | ||||
Finite lived intangible asset estimated useful life (in years) | 20 years | ||||
Purilogics | Trademarks and tradenames | |||||
Finite-Lived Intangible Assets | |||||
Intangible assets | $ 0.7 | ||||
Finite lived intangible asset estimated useful life (in years) | 10 years | ||||
Purilogics | Non-competition agreements | |||||
Finite-Lived Intangible Assets | |||||
Intangible assets | $ 0.6 | ||||
Finite lived intangible asset estimated useful life (in years) | 5 years | ||||
Other Acquisitions | |||||
Finite-Lived Intangible Assets | |||||
Intangible assets | $ 23.8 | ||||
Other Acquisitions | Technology | |||||
Finite-Lived Intangible Assets | |||||
Intangible assets | $ 17.3 | ||||
Finite lived intangible asset estimated useful life (in years) | 15 years | ||||
Other Acquisitions | Trademarks and tradenames | |||||
Finite-Lived Intangible Assets | |||||
Intangible assets | $ 3.3 | ||||
Finite lived intangible asset estimated useful life (in years) | 10 years | ||||
Other Acquisitions | Customer relationships | |||||
Finite-Lived Intangible Assets | |||||
Intangible assets | $ 3 | ||||
Finite lived intangible asset estimated useful life (in years) | 20 years | ||||
Other Acquisitions | Backlog | |||||
Finite-Lived Intangible Assets | |||||
Intangible assets | $ 0.2 | ||||
Finite lived intangible asset estimated useful life (in years) | 6 months |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Reconciliation of Intangible Assets) (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Jul. 31, 2022 |
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 277.4 | $ 176.5 |
Accumulated Amortization | (89.3) | (76.7) |
Net | $ 188.1 | $ 99.8 |
Customer relationships | Weighted Average | ||
Finite-Lived Intangible Assets | ||
Weighted Amortizable Life (in Years) | 10 years 9 months 18 days | 11 years 4 months 24 days |
Gross Carrying Amount | $ 107.8 | $ 104 |
Accumulated Amortization | (65.6) | (60.2) |
Net | $ 42.2 | $ 43.8 |
Patents | ||
Finite-Lived Intangible Assets | ||
Weighted Amortizable Life (in Years) | 18 years 10 months 24 days | 19 years 10 months 24 days |
Gross Carrying Amount | $ 33.4 | $ 33.4 |
Accumulated Amortization | (6.3) | (4.7) |
Net | $ 27.1 | $ 28.7 |
Trademarks | ||
Finite-Lived Intangible Assets | ||
Weighted Amortizable Life (in Years) | 9 years | 7 years 10 months 24 days |
Gross Carrying Amount | $ 15.9 | $ 7.3 |
Accumulated Amortization | (3.9) | (2.6) |
Net | $ 12 | $ 4.7 |
Technology | ||
Finite-Lived Intangible Assets | ||
Weighted Amortizable Life (in Years) | 17 years 2 months 12 days | 12 years |
Gross Carrying Amount | $ 116.3 | $ 30.6 |
Accumulated Amortization | (12.9) | (9.1) |
Net | $ 103.4 | $ 21.5 |
Non-competition agreements | ||
Finite-Lived Intangible Assets | ||
Weighted Amortizable Life (in Years) | 3 years 1 month 6 days | 6 years 4 months 24 days |
Gross Carrying Amount | $ 4 | $ 1.2 |
Accumulated Amortization | (0.6) | (0.1) |
Net | $ 3.4 | $ 1.1 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Expected Amortization Expense Relating to Existing Intangible Assets) (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Jul. 31, 2022 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | ||
2024 | $ 15.2 | |
2025 | 15 | |
2026 | 13.9 | |
2027 | 13.4 | |
2028 | 13 | |
Thereafter | 117.6 | |
Net | $ 188.1 | $ 99.8 |
Short-Term Borrowings and Lon_3
Short-Term Borrowings and Long-Term Debt (Short-term Borrowings) (Details) - USD ($) | Jul. 31, 2023 | Jul. 31, 2022 |
Short-term Debt | ||
Short-term borrowings | $ 34,100,000 | $ 3,700,000 |
Line of Credit | ||
Short-term Debt | ||
Available credit facilities | 306,100,000 | 297,300,000 |
Short-term borrowings | 81,700,000 | 49,800,000 |
Remaining borrowing capacity | $ 224,400,000 | $ 247,500,000 |
Weighted average interest rate (as a percent) | 4.69% | 0.37% |
Line of Credit | Outstanding borrowings | ||
Short-term Debt | ||
Short-term borrowings | $ 34,100,000 | $ 3,700,000 |
Line of Credit | Other non-borrowing reductions | ||
Short-term Debt | ||
Short-term borrowings | 47,600,000 | 46,100,000 |
U.S. Credit Facilities | Line of Credit | ||
Short-term Debt | ||
Available credit facilities | 100,000,000 | 100,000,000 |
Short-term borrowings | 9,800,000 | 0 |
Remaining borrowing capacity | $ 90,200,000 | 100,000,000 |
Weighted average interest rate (as a percent) | 6.17% | |
U.S. Credit Facilities | Line of Credit | Outstanding borrowings | ||
Short-term Debt | ||
Short-term borrowings | $ 9,800,000 | 0 |
U.S. Credit Facilities | Line of Credit | Other non-borrowing reductions | ||
Short-term Debt | ||
Short-term borrowings | 0 | 0 |
European | European Commercial Paper Program | ||
Short-term Debt | ||
Available credit facilities | 110,300,000 | 102,100,000 |
Short-term borrowings | 24,300,000 | 0 |
Remaining borrowing capacity | $ 86,000,000 | 102,100,000 |
Weighted average interest rate (as a percent) | 4.09% | |
European | European Commercial Paper Program | Outstanding borrowings | ||
Short-term Debt | ||
Short-term borrowings | $ 24,300,000 | 0 |
European | European Commercial Paper Program | Other non-borrowing reductions | ||
Short-term Debt | ||
Short-term borrowings | 0 | 0 |
European | Line of Credit | ||
Short-term Debt | ||
Available credit facilities | 45,000,000 | 42,400,000 |
Short-term borrowings | 28,800,000 | 27,000,000 |
Remaining borrowing capacity | 16,200,000 | 15,400,000 |
European | Line of Credit | Outstanding borrowings | ||
Short-term Debt | ||
Short-term borrowings | 0 | 0 |
European | Line of Credit | Other non-borrowing reductions | ||
Short-term Debt | ||
Short-term borrowings | 28,800,000 | 27,000,000 |
Rest of the World Credit Facilities | Line of Credit | ||
Short-term Debt | ||
Available credit facilities | 50,800,000 | 52,800,000 |
Short-term borrowings | 18,800,000 | 22,800,000 |
Remaining borrowing capacity | 32,000,000 | $ 30,000,000 |
Weighted average interest rate (as a percent) | 0.37% | |
Rest of the World Credit Facilities | Line of Credit | Outstanding borrowings | ||
Short-term Debt | ||
Short-term borrowings | 0 | $ 3,700,000 |
Rest of the World Credit Facilities | Line of Credit | Other non-borrowing reductions | ||
Short-term Debt | ||
Short-term borrowings | $ 18,800,000 | $ 19,100,000 |
Short-Term Borrowings and Lon_4
Short-Term Borrowings and Long-Term Debt (Long-term Debt) (Details) | Jul. 31, 2023 USD ($) | Jul. 31, 2023 EUR (€) | Jul. 31, 2023 JPY (¥) | Jul. 31, 2022 USD ($) |
Debt Instrument | ||||
Debt issuance costs, net | $ (1,800,000) | $ (2,400,000) | ||
Subtotal | 621,600,000 | 644,300,000 | ||
Less current maturities | (125,000,000) | 0 | ||
Long-term debt | 496,600,000 | $ 644,300,000 | ||
3.72% Fixed Rate Unsecured Senior Notes Maturing 2024 | Unsecured Notes | ||||
Debt Instrument | ||||
Amount | $ 125,000,000 | |||
Debt instrument interest rate (as a percent) | 3.72% | 3.72% | 3.72% | 3.72% |
Long-term debt, gross | $ 125,000,000 | $ 125,000,000 | ||
3.18% Fixed Rate Unsecured Senior Notes Maturing 2030 | Unsecured Notes | ||||
Debt Instrument | ||||
Amount | $ 125,000,000 | |||
Debt instrument interest rate (as a percent) | 3.18% | 3.18% | 3.18% | 3.18% |
Long-term debt, gross | $ 125,000,000 | $ 125,000,000 | ||
2.50% Fixed Rate Unsecured Senior Notes Maturing 2031 | Unsecured Notes | ||||
Debt Instrument | ||||
Amount | $ 100,000,000 | |||
Debt instrument interest rate (as a percent) | 2.50% | 2.50% | 2.50% | 2.50% |
Long-term debt, gross | $ 100,000,000 | $ 100,000,000 | ||
1.29 % Variable Rate Unsecured Credit Facility Maturing 2026 | Unsecured Notes | Unsecured Revolving Credit Facility | ||||
Debt Instrument | ||||
Amount | $ 500,000,000 | |||
Debt instrument interest rate (as a percent) | 5.09% | 5.09% | 5.09% | 2.88% |
Long-term debt, gross | $ 96,200,000 | $ 125,000,000 | ||
.70% Variable Rate Unsecured Senior Notes Maturing 2024 | Unsecured Notes | ||||
Debt Instrument | ||||
Amount | € | € 80,000,000 | |||
Debt instrument interest rate (as a percent) | 4.41% | 4.41% | 4.41% | 0.91% |
Long-term debt, gross | $ 88,200,000 | $ 81,700,000 | ||
2.12% Fixed Rate Unsecured Senior Notes Maturing 2028 | Unsecured Notes | ||||
Debt Instrument | ||||
Amount | $ 50,000,000 | |||
Debt instrument interest rate (as a percent) | 2.12% | 2.12% | 2.12% | 2.12% |
Long-term debt, gross | $ 50,000,000 | $ 50,000,000 | ||
2.93% Fixed Rate Unsecured Senior Notes Maturing 2025 | Unsecured Notes | ||||
Debt Instrument | ||||
Amount | $ 25,000,000 | |||
Debt instrument interest rate (as a percent) | 2.93% | 2.93% | 2.93% | 2.93% |
Long-term debt, gross | $ 25,000,000 | $ 25,000,000 | ||
.42% Variable Rate Unsecured Term Loan Maturing 2024 | Unsecured Notes | ||||
Debt Instrument | ||||
Amount | ¥ | ¥ 1,000,000,000 | |||
Debt instrument interest rate (as a percent) | 0.57% | 0.57% | 0.57% | 0.41% |
Long-term debt, gross | $ 7,000,000 | $ 7,500,000 | ||
.47% Variable Rate Unsecured Term Loan 2026 | Unsecured Notes | ||||
Debt Instrument | ||||
Amount | ¥ | ¥ 1,000,000,000 | |||
Debt instrument interest rate (as a percent) | 0.49% | 0.49% | 0.49% | 0.49% |
Long-term debt, gross | $ 7,000,000 | $ 7,500,000 |
Short-Term Borrowings and Lon_5
Short-Term Borrowings and Long-Term Debt (Narrative) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Line of Credit | ||
Debt Instrument | ||
Borrowing capacity | $ 306,100,000 | $ 297,300,000 |
Unsecured Revolving Credit Facility | ||
Debt Instrument | ||
Borrowing capacity | 63,000,000 | |
Long-term remaining borrowing capacity | $ 396,300,000 | |
Unsecured Revolving Credit Facility | Minimum | ||
Debt Instrument | ||
Commitment fee (as a percent) | 0.08% | |
Unsecured Revolving Credit Facility | Maximum | ||
Debt Instrument | ||
Commitment fee (as a percent) | 0.25% | |
Unsecured Revolving Credit Facility | 1.29 % Variable Rate Unsecured Credit Facility Maturing 2026 | ||
Debt Instrument | ||
Borrowing capacity | $ 500,000,000 | |
Multi-currency revolving credit facility | ||
Debt Instrument | ||
Borrowing capacity | 17,000,000 | |
Multi-currency revolving credit facility | Line of Credit | ||
Debt Instrument | ||
Additional borrowing capacity on line of credit under certain conditions | $ 250,000,000 |
Short-Term Borrowings and Lon_6
Short-Term Borrowings and Long-Term Debt (Future Maturities of Long Term Debt) (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Jul. 31, 2022 |
Maturities of Long-term Debt | ||
2024 | $ 125 | |
2025 | 113.2 | |
2026 | 103.2 | |
2027 | 0 | |
2028 | 7 | |
Thereafter | 275 | |
Total future maturities payments | 623.4 | |
Debt issuance costs, net | (1.8) | $ (2.4) |
Subtotal | $ 621.6 |
Income Taxes (Components of Ear
Income Taxes (Components of Earnings Before Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Earnings before income taxes: | |||
U.S. | $ 178 | $ 132.8 | $ 114.1 |
Foreign | 290.7 | 305.6 | 266.9 |
Earnings before income taxes | $ 468.7 | $ 438.4 | $ 381 |
Income Taxes (Components of The
Income Taxes (Components of The Provision for Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Current | |||
Federal | $ 38.1 | $ 17.4 | $ 13.2 |
State | 7.3 | 4.9 | 3.9 |
Foreign | 79.8 | 84.7 | 82.9 |
Total current | 125.2 | 107 | 100 |
Deferred | |||
Federal | (13.3) | 2.8 | (1.9) |
State | (1.8) | (0.3) | (0.2) |
Foreign | (0.2) | (3.9) | (3.8) |
Total deferred | (15.3) | (1.4) | (5.9) |
Total provision for income taxes | $ 109.9 | $ 105.6 | $ 94.1 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of U.S. Statutory Income Tax Rate With Effective Income Tax Rate) (Details) | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory federal income tax rate | 21% | 21% | 21% |
State income taxes | 0.90% | 0.90% | 0.80% |
Foreign operations | 3.80% | 3.60% | 4.40% |
Global Intangible Low Tax Income | 0.20% | 0.30% | 0.60% |
Foreign Derived Intangible Income | (1.60%) | (0.60%) | (0.70%) |
Research and development credit | (0.70%) | (0.60%) | (0.70%) |
Change in unrecognized tax benefits | 0% | (0.80%) | 0.20% |
Tax benefits on stock-based compensation | (0.70%) | (0.50%) | (1.00%) |
Other | 0.50% | 0.80% | 0.10% |
Effective income tax rate | 23.40% | 24.10% | 24.70% |
Income Taxes (Temporary Differe
Income Taxes (Temporary Differences That Give Rise to Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2020 |
Deferred tax assets | ||||
Accrued expenses | $ 12.2 | $ 11.6 | ||
Compensation and retirement plans | 24.7 | 26.4 | ||
Capitalization of R&D costs | 17.6 | 0 | ||
Net operating loss (NOL) and tax credit carryforwards | 15.1 | 6.4 | ||
Operating lease assets | 15 | 11.6 | ||
Other | 6.2 | 6.4 | ||
Gross deferred tax assets | 90.8 | 62.4 | ||
Valuation allowance | (6.4) | (3.4) | $ (4.6) | $ (8.1) |
Deferred tax assets, net of valuation allowance | 84.4 | 59 | ||
Deferred tax liabilities | ||||
Depreciation and amortization | (79.5) | (57) | ||
Operating lease liabilities | (15.1) | (11.6) | ||
Other | (4.2) | (2.4) | ||
Deferred tax liabilities | (98.8) | (71) | ||
Net deferred tax liability | $ (14.4) | $ (12) |
Income Taxes (NOL and Tax Credi
Income Taxes (NOL and Tax Credit Valuation Allowances) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Valuation Allowance, Deferred Tax Asset | |||
Balance as of beginning of year | $ (3.4) | $ (4.6) | $ (8.1) |
Additions charged to costs and expenses | (3) | (0.9) | (0.8) |
Deductions from reserves | 0 | 2.1 | 4.3 |
Balance as of end of year | $ (6.4) | $ (3.4) | $ (4.6) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2020 | |
Income Tax Contingency | ||||
Deferred tax asset, federal foreign tax credit | $ 3.9 | |||
Deferred tax asset, research and development credit | 3.6 | |||
Tax credit carryforwards | 7.1 | |||
Operating losses and tax credit carryforward valuation allowance | 6.4 | $ 3.4 | $ 4.6 | $ 8.1 |
Undistributed earnings | 1,300 | |||
Undistributed earnings not considered reinvested | 943.6 | |||
Undistributed earnings tax charge | 3.6 | |||
Undistributed earnings considered reinvested | 355.1 | |||
Transition tax not due within 12 months | 39.8 | |||
Gross accrued interest and penalties | 1.7 | $ 1.1 | ||
Interest expense recognized | $ 0.7 | |||
Unrecognized tax benefits, statue of limitation term | 5 years | |||
Unrecognized tax benefits | $ 4 | |||
Federal Tax Credits | Minimum | ||||
Income Tax Contingency | ||||
Credit carry forward term (in years) | 10 years | |||
Research And Development Credits | Minimum | ||||
Income Tax Contingency | ||||
Credit carry forward term (in years) | 1 year | |||
Research And Development Credits | Maximum | ||||
Income Tax Contingency | ||||
Credit carry forward term (in years) | 20 years |
Income Taxes (Reconciliation _2
Income Taxes (Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Reconciliation of the Beginning and Ending Amounts of Gross Unrecognized Tax Benefits | |||
Balance as of beginning of year | $ 15.2 | $ 18.7 | $ 16.9 |
Additions for tax positions of the current year | 2.5 | 2.7 | 4.7 |
Additions for tax positions of prior years | 0.1 | 0 | 2.7 |
Reductions for tax positions of prior years | (1.1) | (1) | |
Reductions due to lapse of applicable statute of limitations | (2.8) | (5.1) | (4.6) |
Balance as of end of year | $ 15 | $ 15.2 | $ 18.7 |
Leases (Lease Cost) (Details)
Leases (Lease Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 24.5 | $ 21.4 |
Short-term lease cost | 3.2 | 3.1 |
Total lease costs | $ 27.7 | $ 24.5 |
Leases (Supplemental Informatio
Leases (Supplemental Information) (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Jul. 31, 2022 |
Leases [Abstract] | ||
Right-of-use lease assets | $ 59.4 | $ 44.7 |
Current lease liabilities | 17.8 | 16.3 |
Long-term lease liabilities | $ 42.4 | $ 28.5 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other long-term assets | Other long-term assets |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities |
Weighted average remaining lease term (years) | 4 years 2 months 12 days | 3 years 4 months 24 days |
Weighted average discount rates (as a percentage) | 3.89% | 3.17% |
Leases (Maturities) (Details)
Leases (Maturities) (Details) $ in Millions | Jul. 31, 2023 USD ($) |
Lessee, Operating Lease, Liability, Payment, Due | |
2024 | $ 19.6 |
2025 | 15.2 |
2026 | 11.3 |
2027 | 8.1 |
2028 | 5.7 |
Thereafter | 5.3 |
Total future lease payments | 65.2 |
Less imputed interest | 5 |
Present value of future lease payments | $ 60.2 |
Earnings Per Share (Information
Earnings Per Share (Information Necessary to Calculate Basic and Diluted Net Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Net earnings | $ 358.8 | $ 332.8 | $ 286.9 |
Weighted average common shares outstanding | |||
Weighted average common shares – basic (in shares) | 121.8 | 123.7 | 126.4 |
Dilutive impact of share-based awards (in shares) | 1.8 | 1.5 | 1.8 |
Weighted average common shares – diluted (in shares) | 123.6 | 125.2 | 128.2 |
Net EPS – basic (in usd per share) | $ 2.95 | $ 2.69 | $ 2.27 |
Net EPS– diluted (in usd per share) | $ 2.90 | $ 2.66 | $ 2.24 |
Stock options excluded from net EPS calculation (in shares) | 0 | 1.6 | 0.8 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Jul. 28, 2023 | Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Stockholders' Equity Note [Abstract] | ||||
Number of shares authorized to be repurchased (in shares) | 13,000,000 | |||
Stock repurchases | 2,500,000 | 2,900,000 | ||
Purchase of treasury stock | $ (141.8) | $ (170.6) | $ (142.2) | |
Remaining number of shares authorized to be repurchased (in shares) | 2,900,000 | |||
Dividends paid per share (in usd per share) | $ 0.94 | $ 0.89 | ||
Cash dividend declared per common share (in usd per share) | $ 0.25 | $ 0.96 | $ 0.90 | $ 0.86 |
Stockholders' Equity (Treasury
Stockholders' Equity (Treasury Stock) (Details) - shares | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Schedule of Treasury Shares Activity | |||
Balance as of beginning of year | 29,089,612 | ||
Stock repurchases | 2,500,000 | 2,900,000 | |
Net issuance upon exercise of stock options | (1,006,602) | (365,267) | (1,030,938) |
Balance as of end of year | 30,528,696 | 29,089,612 | |
Treasury Stock | |||
Schedule of Treasury Shares Activity | |||
Balance as of beginning of year | 29,089,612 | 26,620,560 | |
Stock repurchases | 2,485,000 | 2,900,000 | |
Net issuance upon exercise of stock options | (941,837) | (360,448) | |
Issuance under compensation plans | (84,942) | (52,678) | |
Other activity | (19,137) | (17,822) | |
Balance as of end of year | 30,528,696 | 29,089,612 | 26,620,560 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Beginning balance | $ 1,133.2 | $ 1,137.1 | $ 992.9 |
Other comprehensive income (loss) before reclassifications and tax | 25.2 | (96.6) | |
Tax benefit (expense) | 2.7 | (0.6) | |
Other comprehensive income (loss) before reclassifications, net of tax | 27.9 | (97.2) | |
Reclassifications, before tax | 7.8 | 12.8 | |
Tax (expense) benefit | (2.6) | (3) | |
Reclassifications, net of tax | 5.2 | 9.8 | |
Net other comprehensive income (loss) | 33.1 | (87.4) | 65.8 |
Ending balance | 1,320.7 | 1,133.2 | 1,137.1 |
Total | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Beginning balance | (205.6) | (118.2) | (184) |
Ending balance | (172.5) | (205.6) | (118.2) |
Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Beginning balance | (143.6) | (44) | |
Other comprehensive income (loss) before reclassifications and tax | 34 | (99.6) | |
Tax benefit (expense) | 0 | 0 | |
Other comprehensive income (loss) before reclassifications, net of tax | 34 | (99.6) | |
Reclassifications, before tax | 0 | 0 | |
Tax (expense) benefit | 0 | 0 | |
Reclassifications, net of tax | 0 | 0 | |
Net other comprehensive income (loss) | 34 | (99.6) | |
Ending balance | (109.6) | (143.6) | (44) |
Pension Benefits | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Beginning balance | (67.5) | (74.7) | |
Other comprehensive income (loss) before reclassifications and tax | (6.9) | (6.2) | |
Tax benefit (expense) | 2.2 | 1.4 | |
Other comprehensive income (loss) before reclassifications, net of tax | (4.7) | (4.8) | |
Reclassifications, before tax | 7.5 | 15.5 | |
Tax (expense) benefit | (2.5) | (3.5) | |
Reclassifications, net of tax | 5 | 12 | |
Net other comprehensive income (loss) | 0.3 | 7.2 | |
Ending balance | (67.2) | (67.5) | (74.7) |
Pension Benefits | Adjustments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Reclassifications, before tax | 6.6 | 3 | |
Derivative Financial Instruments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Beginning balance | 5.5 | 0.5 | |
Other comprehensive income (loss) before reclassifications and tax | (1.9) | 9.2 | |
Tax benefit (expense) | 0.5 | (2) | |
Other comprehensive income (loss) before reclassifications, net of tax | (1.4) | 7.2 | |
Reclassifications, before tax | 0.3 | (2.7) | |
Tax (expense) benefit | (0.1) | 0.5 | |
Reclassifications, net of tax | 0.2 | (2.2) | |
Net other comprehensive income (loss) | (1.2) | 5 | |
Ending balance | 4.3 | 5.5 | $ 0.5 |
Accumulated Defined Benefit Plans Adjustment, Foreign Currency Translation Attributable To Parent | Adjustments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Reclassifications, before tax | (1.4) | 4.9 | |
Net Amortization of Prior Service Cost and Actuarial Losses | Adjustments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Other comprehensive income (loss) before reclassifications and tax | $ (2.3) | $ (7.6) |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock options, weighted average grant date fair value (in usd per share) | $ 15.67 | $ 14.24 | $ 10.23 |
Intrinsic value of stock options exercised | $ 20.2 | $ 7.8 | $ 22.6 |
Intrinsic value of shares outstanding | 101.9 | ||
Intrinsic value of shares exercisable | 84.4 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Pre-tax compensation expense associated with stock options | $ 12.4 | 11.6 | 10.8 |
Shares reserved for outstanding options and future grants (in shares) | 8,585,779 | ||
Total unrecognized compensation expense related to non-vested stock options | $ 8.1 | ||
Stock Options | 2019 Master Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock options exercisable term (in years) | 10 years | ||
Stock option, award vesting period (in years) | 3 years | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Total unrecognized compensation expense related to non-vested stock options | $ 5.7 | ||
Performance Shares | 2019 Master Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Pre-tax compensation expense associated with stock options | $ 6.3 | $ 7.2 | $ 1.9 |
Performance awards measurement period (in years) | 3 years | ||
Expiration period (in years) | 3 years | ||
Performance Shares | 2019 Master Stock Incentive Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Payout percentage based on target award (as a percent) | 0% | ||
Performance Shares | 2019 Master Stock Incentive Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Payout percentage based on target award (as a percent) | 200% |
Stock-Based Compensation (Weigh
Stock-Based Compensation (Weighted Average Assumptions for Recognized Fair Value of Stock-Based Employee Compensation Cost) (Details) | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Risk-free interest rate, min (as a percent) | 3.80% | 1.20% | 0.50% |
Risk-free interest rate, max (as a percent) | 4.20% | 1.80% | 1.30% |
Expected volatility, min (as a percent) | 26.80% | 26% | 25.40% |
Expected volatility, max (as a percent) | 27.50% | 27% | 26.60% |
Expected dividend yield | 1.60% | 1.60% | 1.60% |
Director grants | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected life (in years) | 8 years | 8 years | 8 years |
Officer grants | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected life (in years) | 7 years | 7 years | 8 years |
Non-officer grants | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected life (in years) | 7 years | 7 years | 7 years |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Option Activity) (Details) - $ / shares | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Options | |||
Beginning balance (in shares) | 6,927,161 | 6,444,743 | 6,533,979 |
Granted (in shares) | 920,816 | 898,726 | 1,004,631 |
Exercised (in shares) | (1,006,602) | (365,267) | (1,030,938) |
Expired/forfeited (in shares) | (63,968) | (51,041) | (62,929) |
Ending balance (in shares) | 6,777,407 | 6,927,161 | 6,444,743 |
Weighted Average Exercise Price | |||
Beginning balance (in usd per share) | $ 46.32 | $ 44.05 | $ 42.44 |
Granted (in usd per share) | 51.35 | 59.18 | 46.61 |
Exercised (in usd per share) | 40.48 | 37.02 | 36 |
Expired/forfeited (in usd per share) | 53.47 | 53.15 | 49.95 |
Ending balance (in usd per share) | $ 47.80 | $ 46.32 | $ 44.05 |
Stock-Based Compensation (Infor
Stock-Based Compensation (Information Concerning Outstanding and Exercisable Options) (Details) - $ / shares | 12 Months Ended | |||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2020 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | ||||
Number outstanding (in shares) | 6,777,407 | 6,927,161 | 6,444,743 | 6,533,979 |
Weighted average remaining contractual life (in years) | 5 years 6 months | |||
Weighted average exercise price (in usd per share) | $ 47.80 | |||
Number exercisable (in shares) | 4,993,696 | |||
Weighted average remaining contractual life (in years) | 4 years 4 months 24 days | |||
Weighted average exercise price (in usd per share) | $ 45.93 | |||
$28.00 to $37.99 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | ||||
Stock options, exercise price range, lower range limit (in usd per share) | 28 | |||
Share options, exercise price range, upper range limit (in usd per share) | $ 37.99 | |||
Number outstanding (in shares) | 672,703 | |||
Weighted average remaining contractual life (in years) | 2 years 3 months 18 days | |||
Weighted average exercise price (in usd per share) | $ 29.24 | |||
Number exercisable (in shares) | 672,703 | |||
Weighted average remaining contractual life (in years) | 2 years 3 months 18 days | |||
Weighted average exercise price (in usd per share) | $ 29.24 | |||
$38.00 to $43.99 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | ||||
Stock options, exercise price range, lower range limit (in usd per share) | 38 | |||
Share options, exercise price range, upper range limit (in usd per share) | $ 43.99 | |||
Number outstanding (in shares) | 1,393,425 | |||
Weighted average remaining contractual life (in years) | 2 years 3 months 18 days | |||
Weighted average exercise price (in usd per share) | $ 41.29 | |||
Number exercisable (in shares) | 1,393,425 | |||
Weighted average remaining contractual life (in years) | 2 years 3 months 18 days | |||
Weighted average exercise price (in usd per share) | $ 41.29 | |||
$44.00 to $49.99 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | ||||
Stock options, exercise price range, lower range limit (in usd per share) | 44 | |||
Share options, exercise price range, upper range limit (in usd per share) | $ 49.99 | |||
Number outstanding (in shares) | 1,452,757 | |||
Weighted average remaining contractual life (in years) | 5 years 10 months 24 days | |||
Weighted average exercise price (in usd per share) | $ 45.96 | |||
Number exercisable (in shares) | 1,162,081 | |||
Weighted average remaining contractual life (in years) | 5 years 6 months | |||
Weighted average exercise price (in usd per share) | $ 45.93 | |||
$50.00 to $55.99 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | ||||
Stock options, exercise price range, lower range limit (in usd per share) | 50 | |||
Share options, exercise price range, upper range limit (in usd per share) | $ 55.99 | |||
Number outstanding (in shares) | 1,656,918 | |||
Weighted average remaining contractual life (in years) | 7 years 9 months 18 days | |||
Weighted average exercise price (in usd per share) | $ 51.34 | |||
Number exercisable (in shares) | 769,671 | |||
Weighted average remaining contractual life (in years) | 6 years 2 months 12 days | |||
Weighted average exercise price (in usd per share) | $ 51.75 | |||
$56.00 and above | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | ||||
Stock options, exercise price range, lower range limit (in usd per share) | $ 56 | |||
Number outstanding (in shares) | 1,601,604 | |||
Weighted average remaining contractual life (in years) | 6 years 10 months 24 days | |||
Weighted average exercise price (in usd per share) | $ 59.27 | |||
Number exercisable (in shares) | 995,816 | |||
Weighted average remaining contractual life (in years) | 6 years | |||
Weighted average exercise price (in usd per share) | $ 59.17 |
Stock-Based Compensation (Statu
Stock-Based Compensation (Status for Options Which Contain Vesting Provisions) (Details) - $ / shares | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Options | |||
Balance outstanding as of beginning of year (in shares) | 1,809,473 | ||
Granted (in shares) | 920,816 | 898,726 | 1,004,631 |
Vested (in shares) | (895,862) | ||
Forfeited (in shares) | (50,716) | ||
Balance outstanding as of ending of year (in shares) | 1,783,711 | 1,809,473 | |
Weighted Average Grant Date Fair Value | |||
Balance outstanding as of beginning of year (in usd per share) | $ 12.31 | ||
Granted (in usd per share) | 15.67 | $ 14.24 | $ 10.23 |
Vested (in usd per share) | 11.78 | ||
Forfeited (in usd per share) | 13.61 | ||
Balance outstanding as of beginning of year (in usd per share) | $ 14.27 | $ 12.31 |
Stock-Based Compensation (Sta_2
Stock-Based Compensation (Status for Performance-Based Awards Which Contain Vesting Provisions) (Details) - Performance Shares - $ / shares | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Performance Shares | |||
Beginning balance (in shares) | 188,206 | ||
Granted (in shares) | 113,100 | ||
Vested (in shares) | (98,853) | ||
Forfeited (in shares) | (7,692) | ||
Ending balance (in shares) | 194,761 | 188,206 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in usd per share) | $ 52.20 | ||
Granted (in usd per share) | 50.89 | $ 59.40 | $ 46.06 |
Vested (in usd per share) | 46.06 | ||
Forfeited (in usd per share) | 54.76 | ||
Ending balance (in usd per share) | $ 54.46 | $ 52.20 |
Employee Benefit Plans (Compone
Employee Benefit Plans (Components of Net Periodic Pension Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Net periodic pension costs | |||
Service cost | $ 6.7 | $ 6.9 | $ 7.5 |
Interest cost | 17 | 10.6 | 10.2 |
Expected return on assets | (25.3) | (24.8) | (23.7) |
Prior service cost amortization | 0 | 0.2 | 0.3 |
Actuarial loss amortization | 2.1 | 6.9 | 8.2 |
Settlement charge | 5.5 | 3 | 2 |
Curtailment charge | 0.2 | 0 | 0.8 |
Net periodic pension costs | $ 6.2 | $ 2.8 | $ 5.3 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Curtailment Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Other changes recognized in other comprehensive income (loss): | |||
Prior service cost | $ (0.4) | $ 0 | $ 0 |
Net actuarial (loss) gain | (5.9) | (1.3) | 35.9 |
Amortization of prior service cost | 0.2 | 0.3 | 1.2 |
Amortization of net actuarial loss | 7.7 | 9.9 | 10.2 |
Total recognized in other comprehensive income | 1.6 | 8.9 | 47.3 |
Total recognized in net periodic pension costs and other comprehensive (loss) income | $ (4.6) | $ 6.1 | $ 42 |
Employee Benefit Plans (Obligat
Employee Benefit Plans (Obligations and Funded Status of Company's Pension Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Change in projected benefit obligation | |||
Service cost | $ 6.7 | $ 6.9 | $ 7.5 |
Interest cost | 17 | 10.6 | 10.2 |
Actuarial gain | 2.1 | 6.9 | 8.2 |
Pension Plan | |||
Change in projected benefit obligation | |||
Projected benefit obligation, beginning of year | 442.6 | 579.9 | |
Service cost | 6.7 | 6.9 | |
Interest cost | 17 | 10.6 | |
Plan amendments | 0.2 | 0 | |
Participant contributions | 0.7 | 0.7 | |
Actuarial gain | (42) | (100.3) | |
Foreign currency exchange rates | 9.2 | (25.4) | |
Settlements paid | (17) | (12.9) | |
Acquisition | 1.2 | 0 | |
Benefits paid | (17.5) | (16.9) | |
Projected benefit obligation, end of year | 401.1 | 442.6 | 579.9 |
Change in fair value of plan assets | |||
Fair value of plan assets, beginning of year | 459.8 | 591.3 | |
Actual return on plan assets | (22.1) | (80.7) | |
Company contributions | 2.6 | 2.3 | |
Participant contributions | 0.7 | 0.7 | |
Foreign currency exchange rates | 8.3 | (24) | |
Settlements paid | (17) | (12.9) | |
Acquisition | 1.2 | 0 | |
Benefits paid | (17.5) | (16.9) | |
Fair value of plan assets, end of year | 416 | 459.8 | $ 591.3 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | |||
Funded status of plans, end of year | 14.9 | 17.2 | |
Amounts recognized on the Consolidated Balance Sheets | |||
Other long-term assets | 34.7 | 38.3 | |
Other current liabilities | (1.7) | (1.8) | |
Other long-term liabilities | (18.1) | (19.3) | |
Net recognized asset | $ 14.9 | $ 17.2 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Defined Benefit Plan Disclosure | |||
Loss anticipated to be recognized in net periodic pension expense | $ 6.2 | $ 2.8 | $ 5.3 |
Deferred compensation arrangement with individual, maximum future deferred receipts allowed (as a percent) | 75% | ||
Deferred compensation arrangement with individual, recorded liability | $ 1.9 | 2.6 | |
Pension Plan | |||
Defined Benefit Plan Disclosure | |||
Net overfunded (underfunded) | 14.9 | 17.2 | |
Unrealized losses recognized | 109 | 110.2 | |
Accumulated benefit obligation | 384.4 | 424.1 | |
Projected benefit obligation for pension plans with projected benefit obligations in excess of plan assets | 73.5 | 70.3 | |
Fair value of plan assets for pension plans with projected benefit obligations in excess of plan assets | 53.7 | 49.2 | |
Projected benefit obligation for pension plans with accumulated benefit obligations in excess of plan assets | 15 | 12.8 | |
Accumulated benefit obligation for plans with projected benefit obligations in excess of plan assets | 15 | 12.8 | |
Fair value of plan assets for plans with projected benefit obligations in excess of plan assets | 5 | 3.1 | |
Cash and credit contributions | 2.6 | ||
Company contributions | $ 2.6 | 2.3 | |
Pension Plan | Minimum | Fixed income securities | Level 3 | Independent Insurance Company | |||
Defined Benefit Plan Disclosure | |||
Pension plan target allocation (as a percent) | 80% | ||
Pension Plan | Minimum | Global equity securities | Level 3 | Independent Insurance Company | |||
Defined Benefit Plan Disclosure | |||
Pension plan target allocation (as a percent) | 10% | ||
Pension Plan | Maximum | Fixed income securities | Level 3 | Independent Insurance Company | |||
Defined Benefit Plan Disclosure | |||
Pension plan target allocation (as a percent) | 90% | ||
Pension Plan | Maximum | Global equity securities | Level 3 | Independent Insurance Company | |||
Defined Benefit Plan Disclosure | |||
Pension plan target allocation (as a percent) | 20% | ||
Retirement Savings and Employee Stock Ownership Plan | U.S. Plan | |||
Defined Benefit Plan Disclosure | |||
Contributory employee saving plan, employee contribution threshold limit from compensation, maximum (as a percent) | 50% | ||
Contributory employee saving plan, percentage match of participants, first contributions (as a percent) | 100% | ||
Contributory employee saving plan, percentage of participants, first eligible compensation (as a percent) | 3% | ||
Contributory employee saving plan, percentage match of participants, second contributions (as a percent) | 50% | ||
Contributory employee saving plan, percentage of participants, second eligible compensation (as a percent) | 2% | ||
Defined contribution plan, annual retirement contributions (as a percent) | 3% | ||
Company contributions | $ 28.6 | $ 27.2 | $ 25.2 |
Employee Benefit Plans (Weighte
Employee Benefit Plans (Weighted-Average Discount Rates in Determining Actuarial Present Value of Projected Benefit Obligation) (Details) - Pension Plan | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
U.S. Plan | |||
Defined Benefit Plan Disclosure | |||
Discount rate (as a percent) | 5.58% | 4.62% | |
Expected rate of return on plan assets (as a percent) | 5.66% | 5.41% | 5.33% |
Non - U.S. Plan | |||
Defined Benefit Plan Disclosure | |||
Discount rate (as a percent) | 4.80% | 3.26% | |
Expected rate of return on plan assets (as a percent) | 4.39% | 3.40% | 3.13% |
Rate of compensation increase (as a percent) | 3.12% | 2.99% |
Employee Benefit Plans (Assumpt
Employee Benefit Plans (Assumptions Used to Determine Net Periodic Benefit Cost) (Details) - Pension Plan | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
U.S. Plan | |||
Defined Benefit Plan Disclosure | |||
Discount rate (as a percent) | 4.62% | 2.55% | 2.37% |
Expected rate of return on plan assets (as a percent) | 5.66% | 5.41% | 5.33% |
Non - U.S. Plan | |||
Defined Benefit Plan Disclosure | |||
Discount rate (as a percent) | 3.26% | 1.60% | 1.52% |
Expected rate of return on plan assets (as a percent) | 4.39% | 3.40% | 3.13% |
Rate of compensation increase (as a percent) | 3.12% | 2.99% | 2.86% |
Employee Benefit Plans (Fair Va
Employee Benefit Plans (Fair Value of Assets Held) (Details) - Pension Plan - USD ($) $ in Millions | Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2020 |
Defined Benefit Plan Disclosure | ||||
Defined benefit plan, fair value of plan assets | $ 416 | $ 459.8 | $ 591.3 | |
U.S. Plan | ||||
Defined Benefit Plan Disclosure | ||||
Defined benefit plan, fair value of plan assets | 369.8 | 409.1 | ||
Assets including NAV assets | 416 | 459.8 | ||
Level 1 | U.S. Plan | ||||
Defined Benefit Plan Disclosure | ||||
Defined benefit plan, fair value of plan assets | 154.9 | 257.2 | ||
Level 2 | U.S. Plan | ||||
Defined Benefit Plan Disclosure | ||||
Defined benefit plan, fair value of plan assets | 173.6 | 116.5 | ||
Level 3 | ||||
Defined Benefit Plan Disclosure | ||||
Defined benefit plan, fair value of plan assets | 41.3 | 35.4 | $ 37.7 | $ 35.4 |
Level 3 | U.S. Plan | ||||
Defined Benefit Plan Disclosure | ||||
Defined benefit plan, fair value of plan assets | 41.3 | 35.4 | ||
Investments using NAV as practical expedient | U.S. Plan | ||||
Defined Benefit Plan Disclosure | ||||
Defined benefit plan, fair value of plan assets | 50.7 | |||
Cash and cash equivalents | U.S. Plan | ||||
Defined Benefit Plan Disclosure | ||||
Defined benefit plan, fair value of plan assets | 4.3 | 7.4 | ||
Cash and cash equivalents | Level 1 | U.S. Plan | ||||
Defined Benefit Plan Disclosure | ||||
Defined benefit plan, fair value of plan assets | 3.6 | 6.6 | ||
Cash and cash equivalents | Level 2 | U.S. Plan | ||||
Defined Benefit Plan Disclosure | ||||
Defined benefit plan, fair value of plan assets | 0.7 | 0.8 | ||
Cash and cash equivalents | Level 3 | U.S. Plan | ||||
Defined Benefit Plan Disclosure | ||||
Defined benefit plan, fair value of plan assets | 0 | 0 | ||
Global equity securities | U.S. Plan | ||||
Defined Benefit Plan Disclosure | ||||
Defined benefit plan, fair value of plan assets | 116.9 | 136.5 | ||
Global equity securities | Level 1 | U.S. Plan | ||||
Defined Benefit Plan Disclosure | ||||
Defined benefit plan, fair value of plan assets | 61.2 | 136.5 | ||
Global equity securities | Level 2 | U.S. Plan | ||||
Defined Benefit Plan Disclosure | ||||
Defined benefit plan, fair value of plan assets | 55.7 | 0 | ||
Global equity securities | Level 3 | U.S. Plan | ||||
Defined Benefit Plan Disclosure | ||||
Defined benefit plan, fair value of plan assets | 0 | 0 | ||
Fixed income securities | U.S. Plan | ||||
Defined Benefit Plan Disclosure | ||||
Defined benefit plan, fair value of plan assets | 207.3 | 229.8 | ||
Fixed income securities | Level 1 | U.S. Plan | ||||
Defined Benefit Plan Disclosure | ||||
Defined benefit plan, fair value of plan assets | 90.1 | 114.1 | ||
Fixed income securities | Level 2 | U.S. Plan | ||||
Defined Benefit Plan Disclosure | ||||
Defined benefit plan, fair value of plan assets | 117.2 | 115.7 | ||
Fixed income securities | Level 3 | U.S. Plan | ||||
Defined Benefit Plan Disclosure | ||||
Defined benefit plan, fair value of plan assets | 0 | 0 | ||
Insurance contracts | U.S. Plan | ||||
Defined Benefit Plan Disclosure | ||||
Defined benefit plan, fair value of plan assets | 41.3 | 35.4 | ||
Insurance contracts | Level 1 | U.S. Plan | ||||
Defined Benefit Plan Disclosure | ||||
Defined benefit plan, fair value of plan assets | 0 | 0 | ||
Insurance contracts | Level 2 | U.S. Plan | ||||
Defined Benefit Plan Disclosure | ||||
Defined benefit plan, fair value of plan assets | 0 | 0 | ||
Insurance contracts | Level 3 | U.S. Plan | ||||
Defined Benefit Plan Disclosure | ||||
Defined benefit plan, fair value of plan assets | $ 41.3 | $ 35.4 |
Employee Benefit Plans (Unfunde
Employee Benefit Plans (Unfunded Commitments and Redemption Restrictions) (Details) - U.S. Plan - Pension Plan - USD ($) $ in Millions | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | ||
Unfunded Commitments | $ 6 | $ 6 |
NAV | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | ||
NAV | 46.2 | 50.7 |
Global equity securities | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | ||
Unfunded Commitments | $ 1.8 | 1.8 |
Global equity securities | Minimum | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | ||
Redemption Notice (Days) | 0 days | |
Global equity securities | Maximum | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | ||
Redemption Notice (Days) | 5 days | |
Global equity securities | NAV | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | ||
NAV | $ 33.6 | 37 |
Fixed income securities | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | ||
Unfunded Commitments | $ 0 | 0 |
Fixed income securities | Minimum | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | ||
Redemption Notice (Days) | 0 days | |
Fixed income securities | Maximum | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | ||
Redemption Notice (Days) | 60 days | |
Fixed income securities | NAV | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | ||
NAV | $ 9.5 | 10.8 |
Real asset funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | ||
Unfunded Commitments | 4.2 | 4.2 |
Real asset funds | NAV | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | ||
NAV | $ 3.1 | $ 2.9 |
Employee Benefit Plans (Changes
Employee Benefit Plans (Changes in Fair Value of U.S. Pension Plans' Level 3 Assets) (Details) - Pension Plan - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Change in fair value of plan assets | |||
Fair value of plan assets, beginning of year | $ 459.8 | $ 591.3 | |
Fair value of plan assets, end of year | 416 | 459.8 | $ 591.3 |
Level 3 | |||
Change in fair value of plan assets | |||
Fair value of plan assets, beginning of year | 35.4 | 37.7 | 35.4 |
Unrealized gains | 2.7 | 3.5 | 3.6 |
Foreign currency exchange | 3 | (5.6) | 0.1 |
Purchases and sales, net | 0.2 | (0.2) | (1.4) |
Fair value of plan assets, end of year | $ 41.3 | $ 35.4 | $ 37.7 |
Employee Benefit Plans (Pension
Employee Benefit Plans (Pension Plan Target Allocation) (Details) - Pension Plan | Jul. 31, 2023 |
Salaried Pension Plan | |
Defined Benefit Plan Disclosure | |
Pension plan target allocation (as a percent) | 100% |
Hourly Pension Plan | |
Defined Benefit Plan Disclosure | |
Pension plan target allocation (as a percent) | 100% |
Global equity securities | Salaried Pension Plan | |
Defined Benefit Plan Disclosure | |
Pension plan target allocation (as a percent) | 33% |
Global equity securities | Hourly Pension Plan | |
Defined Benefit Plan Disclosure | |
Pension plan target allocation (as a percent) | 32% |
Fixed income securities | Salaried Pension Plan | |
Defined Benefit Plan Disclosure | |
Pension plan target allocation (as a percent) | 65% |
Fixed income securities | Hourly Pension Plan | |
Defined Benefit Plan Disclosure | |
Pension plan target allocation (as a percent) | 67% |
Real asset funds | Salaried Pension Plan | |
Defined Benefit Plan Disclosure | |
Pension plan target allocation (as a percent) | 1% |
Real asset funds | Hourly Pension Plan | |
Defined Benefit Plan Disclosure | |
Pension plan target allocation (as a percent) | 0% |
Cash and cash equivalents | Salaried Pension Plan | |
Defined Benefit Plan Disclosure | |
Pension plan target allocation (as a percent) | 1% |
Cash and cash equivalents | Hourly Pension Plan | |
Defined Benefit Plan Disclosure | |
Pension plan target allocation (as a percent) | 1% |
Employee Benefit Plans (Estimat
Employee Benefit Plans (Estimated Future Benefit Payments for U.S. and Non U.S. Plans) (Details) $ in Millions | Jul. 31, 2023 USD ($) |
Defined Benefit Plan, Expected Future Benefit Payment | |
2024 | $ 33 |
2025 | 28.7 |
2026 | 30.9 |
2027 | 28.8 |
2028 | 28.9 |
2029-2033 | $ 161.5 |
Derivative Instruments and He_2
Derivative Instruments and Hedging (Details) € in Millions, $ in Millions | 12 Months Ended | |||
Jul. 31, 2023 USD ($) derivative | Jul. 31, 2021 USD ($) | Jul. 31, 2023 EUR (€) derivative | Jul. 31, 2022 USD ($) derivative | |
Designated as Hedging Instrument | Cash Flow Hedging | ||||
Derivative | ||||
Realized gains | $ 2.6 | |||
Number of contracts (derivative) | derivative | 0 | 0 | 0 | |
Level 2 | Designated as Hedging Instrument | Net Investment Hedging | ||||
Derivative | ||||
Notional amount | $ 88.8 | € 80 | ||
Foreign Currency Forward Contracts | ||||
Derivative | ||||
Derivative instrument term (in months) | 12 months | |||
Foreign Currency Forward Contracts | Level 2 | Designated as Hedging Instrument | ||||
Derivative | ||||
Notional amount | $ 84.9 | $ 158 | ||
Foreign Currency Forward Contracts | Level 2 | Not Designated as Hedging Instrument | ||||
Derivative | ||||
Notional amount | $ 147.5 | $ 151.6 | ||
Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedging | ||||
Derivative | ||||
Notional amount | 40 | |||
Interest Rate Swap II | Designated as Hedging Instrument | Cash Flow Hedging | ||||
Derivative | ||||
Notional amount | $ 25 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 |
Debt Instrument | |||
Contingent consideration, non current | $ 0 | $ 0 | |
Level 3 | |||
Debt Instrument | |||
Equity method investments | 24,400,000 | $ 22,400,000 | |
Fixed Interest Rate | Level 2 | Fair Value | |||
Debt Instrument | |||
Debt instrument, fair value disclosure | 378,900,000 | 396,900,000 | |
Fixed Interest Rate | Level 2 | Carrying Value | |||
Debt Instrument | |||
Debt instrument, fair value disclosure | 425,000,000 | 425,000,000 | |
Variable Interest Rate | Level 2 | Fair Value | |||
Debt Instrument | |||
Debt instrument, fair value disclosure | 198,400,000 | 221,700,000 | |
Variable Interest Rate | Level 2 | Carrying Value | |||
Debt Instrument | |||
Debt instrument, fair value disclosure | $ 198,400,000 | $ 221,700,000 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Outstanding Derivatives in Consolidated Balance Sheets) (Details) - Fair Value, Inputs, Level 2 - USD ($) $ in Millions | Jul. 31, 2023 | Jul. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Derivative assets | $ 4.9 | $ 10.2 |
Derivative liabilities | 1.5 | 5.2 |
Designated as Hedging Instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Derivative assets | 4.2 | 8.5 |
Derivative liabilities | 0.1 | 2.7 |
Designated as Hedging Instrument | Net Investment Hedging | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Derivative assets | 3.6 | 8.2 |
Derivative liabilities | 0 | 0 |
Not Designated as Hedging Instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Derivative assets | 0.7 | 1.7 |
Derivative liabilities | 1.4 | 2.5 |
Forward Foreign Currency Exchange Contracts | Designated as Hedging Instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Derivative assets | 0.6 | 0.3 |
Derivative liabilities | 0.1 | 2.7 |
Forward Foreign Currency Exchange Contracts | Not Designated as Hedging Instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Derivative assets | 0.7 | 1.7 |
Derivative liabilities | $ 1.4 | $ 2.5 |
Fair Value Measurements (Compan
Fair Value Measurements (Company’s Contingent Consideration Obligations) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Balance at the beginning | $ 24.7 | $ 0 |
Issuances | 0 | 24.6 |
Adjustments to fair value | 0.3 | 0.1 |
Balance at the end | 25 | 24.7 |
Maximum potential payout | $ 30.7 | $ 30.7 |
Guarantees (Balance Sheet) (Det
Guarantees (Balance Sheet) (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Jul. 31, 2022 |
Product Warranties Disclosures [Abstract] | ||
Contingent liability for standby letters of credit issued under the Company’s revolving credit facility | $ 7.5 | $ 7.5 |
Amounts drawn for letters of credit under the Company’s revolving credit facility | $ 0 | $ 0 |
Guarantees (Narrative) (Details
Guarantees (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Guarantor Obligations | |||
Investment earnings | $ 3,600,000 | $ 1,700,000 | $ 4,200,000 |
Advanced Filtration Systems Inc. | |||
Guarantor Obligations | |||
Investment earnings | 8,500,000 | 8,100,000 | |
Unsecured Revolving Credit Facility | |||
Guarantor Obligations | |||
Available credit facilities | 63,000,000 | ||
Multi-currency revolving credit facility | |||
Guarantor Obligations | |||
Available credit facilities | 17,000,000 | ||
Advanced Filtration Systems Inc. | |||
Guarantor Obligations | |||
AFSI outstanding debt (the Company guarantees half) | $ 59,600,000 | $ 68,800,000 |
Commitment and Contingencies (N
Commitment and Contingencies (Narrative) (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Jul. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrued warranty reserves | $ 5.5 | $ 4.9 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) $ in Millions | 12 Months Ended | |
Nov. 01, 2022 segment | Jul. 31, 2023 USD ($) | |
Segment Reporting, Measurement Disclosures [Abstract] | ||
Number of reportable segments (segment) | segment | 3 | |
Restructuring charges | $ | $ 21.8 |
Segment Reporting (Summary of S
Segment Reporting (Summary of Segment Details) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Segment Reporting Information | |||
Net sales | $ 3,430.8 | $ 3,306.6 | $ 2,853.9 |
Equity earnings in unconsolidated affiliates | 3.6 | 1.7 | 4.2 |
Earnings (loss) before income taxes | 468.7 | 438.4 | 381 |
Assets | 2,770.5 | 2,600.3 | 2,400.2 |
Equity investments in unconsolidated affiliates | 24.4 | 22.4 | 24.2 |
Operating Segments | Mobile Solutions Segment | |||
Segment Reporting Information | |||
Net sales | 2,174.8 | 2,126.5 | 1,818.4 |
Equity earnings in unconsolidated affiliates | 3.6 | 1.7 | 4.2 |
Earnings (loss) before income taxes | 330.4 | 293.8 | 276.1 |
Assets | 1,243.8 | 1,319.4 | 1,216 |
Equity investments in unconsolidated affiliates | 24.2 | 22.3 | 24 |
Operating Segments | Industrial Solutions Segment | |||
Segment Reporting Information | |||
Net sales | 1,014.7 | 901 | 781 |
Equity earnings in unconsolidated affiliates | 0 | 0 | 0 |
Earnings (loss) before income taxes | 186.2 | 133 | 81 |
Assets | 788.1 | 816 | 812 |
Equity investments in unconsolidated affiliates | 0.2 | 0.1 | 0.2 |
Operating Segments | Life Sciences Segment | |||
Segment Reporting Information | |||
Net sales | 241.3 | 279.1 | 254.5 |
Equity earnings in unconsolidated affiliates | 0 | 0 | 0 |
Earnings (loss) before income taxes | 9.9 | 64.9 | 65.2 |
Assets | 513.8 | 267.8 | 139.8 |
Equity investments in unconsolidated affiliates | 0 | 0 | 0 |
Corporate and Unallocated | |||
Segment Reporting Information | |||
Net sales | 0 | 0 | 0 |
Equity earnings in unconsolidated affiliates | 0 | 0 | 0 |
Earnings (loss) before income taxes | (57.8) | (53.3) | (41.3) |
Assets | 224.8 | 197.1 | 232.4 |
Equity investments in unconsolidated affiliates | $ 0 | $ 0 | $ 0 |
Segment Reporting (Net Sales by
Segment Reporting (Net Sales by Product Within Engine Products Segment and Industrial Products Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Segment Reporting Information | |||
Net sales | $ 3,430.8 | $ 3,306.6 | $ 2,853.9 |
Mobile Solutions Segment | Operating Segments | |||
Segment Reporting Information | |||
Net sales | 2,174.8 | 2,126.5 | 1,818.4 |
Mobile Solutions Segment | Off-Road | Operating Segments | |||
Segment Reporting Information | |||
Net sales | 428.7 | 390.5 | 316.3 |
Mobile Solutions Segment | On-Road | Operating Segments | |||
Segment Reporting Information | |||
Net sales | 145.8 | 136.1 | 138.8 |
Mobile Solutions Segment | Aftermarket | Operating Segments | |||
Segment Reporting Information | |||
Net sales | 1,600.3 | 1,599.9 | 1,363.3 |
Industrial Solutions Segment | Operating Segments | |||
Segment Reporting Information | |||
Net sales | 1,014.7 | 901 | 781 |
Industrial Solutions Segment | Industrial Filtration Solutions | Operating Segments | |||
Segment Reporting Information | |||
Net sales | 872.2 | 780.5 | 684.8 |
Industrial Solutions Segment | Aerospace and Defense | Operating Segments | |||
Segment Reporting Information | |||
Net sales | 142.5 | 120.5 | 96.2 |
Life Sciences Segment | Operating Segments | |||
Segment Reporting Information | |||
Net sales | $ 241.3 | $ 279.1 | $ 254.5 |
Segment Reporting (Geographic S
Segment Reporting (Geographic Sales by Origination and Property, Plant and Equipment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Segment Reporting Information | |||
Net sales | $ 3,430.8 | $ 3,306.6 | $ 2,853.9 |
Property, plant and equipment, net | 652.9 | 594.4 | 617.8 |
U.S. and Canada | |||
Segment Reporting Information | |||
Net sales | 1,464.7 | 1,336.8 | 1,084.2 |
Property, plant and equipment, net | 219.7 | 218.1 | 214 |
EMEA | |||
Segment Reporting Information | |||
Net sales | 1,007.8 | 963.6 | 865.7 |
Property, plant and equipment, net | 202.4 | 184.3 | 220.4 |
APAC | |||
Segment Reporting Information | |||
Net sales | 608.8 | 669 | 649.2 |
Property, plant and equipment, net | 76.5 | 59.5 | 60.4 |
LATAM | |||
Segment Reporting Information | |||
Net sales | 349.5 | 337.2 | 254.8 |
Property, plant and equipment, net | $ 154.3 | $ 132.5 | $ 123 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2021 | Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Restructuring Cost and Reserve | ||||
Restructuring charges | $ 21.8 | |||
Severance costs | 15.3 | |||
Lower Margin Customer Programs | ||||
Restructuring Cost and Reserve | ||||
Business exit cost | 6.5 | |||
Cost of Sales | ||||
Restructuring Cost and Reserve | ||||
Restructuring charges | $ 2.9 | $ 5.8 | ||
Operating Expense | ||||
Restructuring Cost and Reserve | ||||
Restructuring charges | $ 18.9 | $ 9 | ||
Employee Severance | ||||
Restructuring Cost and Reserve | ||||
Restructuring charges | $ 14.8 |