Ferguson Enterprises Inc DE

Notes to the Consolidated Financial Statement

Note A. Basis of presentation and summary of significant accounting policies

Background

Ferguson Enterprises Inc. was formed as a Delaware corporation in February 2024. Effective on August 1, 2024 (the “Effective Date”), the Company implemented a new corporate structure by completing a merger transaction (the “Merger”) that resulted in (i) Ferguson plc becoming a direct, wholly owned subsidiary of Ferguson Enterprises Inc., a Delaware corporation, and (ii) the shareholders of Ferguson plc at the designated record time for the Merger no longer holding ordinary shares of Ferguson plc but instead holding shares of common stock of Ferguson Enterprises Inc. As a result of the Merger, Ferguson Enterprises Inc. became the successor issuer to Ferguson plc, which was renamed “Ferguson (Jersey) Limited” and converted into a private company.

Financial statements and basis of consolidation

The accompanying consolidated financial statement of Ferguson Enterprises Inc. and all of its wholly owned subsidiaries have been prepared in accordance with U.S. GAAP as set forth in the FASB Accounting Standards Codification and in conjunction with the rules and regulations of the SEC. Separate statements of earnings and comprehensive income, changes in stockholder’s equity, and cash flows have not been presented because there have been no activities in this entity since its formation in February 2024 through July 31, 2024. Beginning on August 1, 2024, Ferguson Enterprises Inc. became the successor issuer to Ferguson plc; therefore, beginning August 1, 2024, the operations, assets, rights, duties, liabilities, obligations and cash flows of Ferguson plc will be reported within Ferguson Enterprises Inc. pursuant to a merger under common control.

Use of estimates

The preparation of the accompanying consolidated financial statement of Ferguson Enterprises Inc. and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions affecting reported amounts in the consolidated financial statement and accompanying notes. Actual results may differ from those estimates.

Contingencies

As of July 31, 2024, Ferguson Enterprises Inc. was not a party to any pending claims or legal proceeding and is not aware of any other claims that it believes could, individually or in the aggregate, have a material adverse effect on its financial position, results of operations or cash flows.

Note B. Shareholders’ Equity

Ferguson Enterprises Inc. is authorized to issue 500,000,000 shares of common stock, par value $0.0001 per share. In February 2024, as part of its initial capitalization, Ferguson Enterprises Inc. issued 3 shares of common stock for total value of $0.03. In connection with the Merger, on the Effective Date, these shares in Ferguson Enterprises Inc. were surrendered to Ferguson Enterprises Inc. and cancelled, terminated and disposed of by Ferguson Enterprises Inc. for no additional consideration, and following such cancellation and termination, the initial stockholders no longer hold any rights whatsoever with respect to such shares.

On August 1, 2024, in connection with the completion of the Merger, Ferguson Enterprises Inc. issued common stock on a one-for-one basis for each Ferguson plc share held immediately preceding the Merger by the shareholders of Ferguson plc at the designated record time for the Merger. As a result, on August 1, 2024, the number of Ferguson Enterprises Inc. shares issued and outstanding consisted of 201,343,253 shares of common stock.