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(in millions) | Fiscal 2015 | Fiscal 2014 | Fiscal 2013 | |||||||||
Wages and salaries | $ | 1,095.6 | $ | 753.3 | $ | 713.4 | ||||||
Payroll taxes | 91.8 | 65.8 | 62.6 | |||||||||
Employee benefit plans expense | 9.6 | 10.2 | 12.9 | |||||||||
Share-based compensation expense | 12.1 | 14.4 | 15.7 | |||||||||
Total compensation and benefits | $ | 1,209.1 | $ | 843.7 | $ | 804.6 |
(in millions) | January 31, 2015 | February 1, 2014 | ||||||
Cash and cash equivalents held in money markets and other accounts | $ | 153.5 | $ | 225.3 | ||||
Cash equivalents from third-party credit card issuers | 38.2 | 21.1 | ||||||
Cash on hand | 1.9 | 1.2 | ||||||
Total cash and cash equivalents | $ | 193.6 | $ | 247.6 |
Buildings | 30 – 40 years when land is owned or the remaining term of lease, not to exceed 40 years | |
Leasehold improvements | Remaining term of lease, not to exceed 10 years | |
Furniture and fixtures | Ranging from 3 – 10 years | |
Equipment, including software | Ranging from 3 – 5 years |
|
|
(in millions, except per share amounts) | Amount | ||
Cash consideration paid to Zale Corporation shareholders ($21 per share) | $ | 910.2 | |
Cash consideration paid for settlement of Zale Corporation stock options, restricted share awards and long term incentive plan awards | 69.6 | ||
Cash paid to extinguish Zale Corporation outstanding debt as of May 29, 2014 | 478.2 | ||
Total consideration transferred | $ | 1,458.0 |
(in millions) | Initial fair values | Final fair values | Variance | ||||||||
Cash and cash equivalents | $ | 28.8 | $ | 28.8 | $ | — | |||||
Inventories | 855.6 | 856.7 | 1.1 | ||||||||
Other current assets | 22.5 | 22.4 | (0.1 | ) | |||||||
Property, plant and equipment | 104.2 | 103.6 | (0.6 | ) | |||||||
Intangible assets: | |||||||||||
Trade names | 420.0 | 417.0 | (3.0 | ) | |||||||
Favorable leases | 50.2 | 50.2 | — | ||||||||
Deferred tax assets | 126.3 | 132.8 | 6.5 | ||||||||
Other assets | 25.4 | 25.4 | — | ||||||||
Current liabilities(1) | (202.8 | ) | (206.3 | ) | (3.5 | ) | |||||
Deferred revenue | (93.0 | ) | (93.3 | ) | (0.3 | ) | |||||
Unfavorable leases | (50.5 | ) | (50.5 | ) | — | ||||||
Unfavorable contracts | (65.6 | ) | (65.6 | ) | — | ||||||
Deferred tax liabilities | (263.6 | ) | (234.0 | ) | 29.6 | ||||||
Other liabilities | (24.6 | ) | (28.6 | ) | (4.0 | ) | |||||
Fair value of net assets acquired | 932.9 | 958.6 | 25.7 | ||||||||
Goodwill | 525.1 | 499.4 | (25.7 | ) | |||||||
Total consideration transferred | $ | 1,458.0 | $ | 1,458.0 | $ | — |
(in millions) | May 29, 2014 to January 31, 2015 | ||
Sales | $ | 1,215.6 | |
Operating loss | $ | (8.2 | ) |
Net loss | $ | (6.5 | ) |
(in millions, except per share amounts) | Fiscal 2015 | Fiscal 2014 | ||||||
Pro forma sales | $ | 6,325.1 | $ | 6,039.9 | ||||
Pro forma net income | $ | 462.1 | $ | 361.9 | ||||
Pro forma earnings per share – basic | $ | 5.78 | $ | 4.51 | ||||
Pro forma earnings per share – diluted | $ | 5.76 | $ | 4.48 |
• | Acquisition accounting adjustments to reset deferred revenue associated with extended service plans sold by Zale Corporation prior to the Acquisition to fair value as of the acquisition date. The fair value of deferred revenue is determined based on the estimated costs remaining to be incurred for future obligations associated with the outstanding plans at the time of the Acquisition, plus a reasonable profit margin on the estimated costs. These adjustments also reflect the impact of deferring the revenue associated with the lifetime extended service plans over a 10-year period as disclosed in Note 1. |
• | Additional depreciation and amortization expenses that would have been recognized assuming fair value adjustments to the existing Zale Corporation assets acquired and liabilities assumed, including intangible assets, favorable and unfavorable leases, and unfavorable contracts and expense associated with the fair value step-up of inventory acquired. |
• | Tax impact of the Company’s amended capital structure as a result of the Acquisition and related issuance of $1,400 million of long-term debt. |
• | Adjustment of valuation allowances associated with US and Canadian deferred tax assets, including net operating loss carryforwards. |
• | Exclusion of acquisition-related costs of $58.0 million, which were included in the Company’s results of operations for the year ended January 31, 2015. Also excluded were costs associated with the unsecured bridge facility discussed in Note 19 of $4.0 million, which were expensed in Fiscal 2015. All amounts were reported within the Other segment. |
|
(in millions) | Fiscal 2015 | Fiscal 2014 | Fiscal 2013 | ||||||||
Sales: | |||||||||||
Sterling Jewelers | $ | 3,765.0 | $ | 3,517.6 | $ | 3,273.9 | |||||
Zale Jewelry(1) | 1,068.7 | n/a | n/a | ||||||||
Piercing Pagoda | 146.9 | n/a | n/a | ||||||||
UK Jewelry | 743.6 | 685.6 | 709.5 | ||||||||
Other | 12.1 | 6.0 | — | ||||||||
Total sales | $ | 5,736.3 | $ | 4,209.2 | $ | 3,983.4 | |||||
Operating income (loss): | |||||||||||
Sterling Jewelers | $ | 624.3 | $ | 553.2 | $ | 547.8 | |||||
Zale Jewelry(2) | (1.9 | ) | n/a | n/a | |||||||
Piercing Pagoda(3) | (6.3 | ) | n/a | n/a | |||||||
UK Jewelry | 52.2 | 42.4 | 40.0 | ||||||||
Other(4) | $ | (91.7 | ) | (25.1 | ) | (27.3 | ) | ||||
Total operating income | $ | 576.6 | $ | 570.5 | $ | 560.5 | |||||
Depreciation and amortization: | |||||||||||
Sterling Jewelers | $ | 95.7 | $ | 88.8 | $ | 75.9 | |||||
Zale Jewelry | 29.4 | n/a | n/a | ||||||||
Piercing Pagoda | 1.6 | n/a | n/a | ||||||||
UK Jewelry | 22.1 | 21.4 | 23.5 | ||||||||
Other | 0.9 | — | — | ||||||||
Total depreciation and amortization | $ | 149.7 | $ | 110.2 | $ | 99.4 | |||||
Capital additions: | |||||||||||
Sterling Jewelers | $ | 157.6 | $ | 134.2 | $ | 110.9 | |||||
Zale Jewelry | 35.1 | n/a | n/a | ||||||||
Piercing Pagoda | 6.9 | n/a | n/a | ||||||||
UK Jewelry | 20.2 | 18.4 | 23.1 | ||||||||
Other | 0.4 | 0.1 | 0.2 | ||||||||
Total capital additions | $ | 220.2 | $ | 152.7 | $ | 134.2 |
(2) | Includes net operating loss of $35.1 million related to purchase accounting adjustments associated with the acquisition of Zale Corporation for the year ended January 31, 2015. See Note 3 for additional information. |
(3) | Includes net operating loss of $10.8 million related to purchase accounting adjustments associated with the acquisition of Zale Corporation for the year ended January 31, 2015. See Note 3 for additional information. |
(4) | Includes $59.8 million of transaction-related and integration expense, as well as severance related costs. Transaction costs include expenses associated with advisor fees for legal, tax, accounting and consulting expenses for the year ended January 31, 2015. |
(in millions) | January 31, 2015 | February 1, 2014 | February 2, 2013 | ||||||||
Total assets: | |||||||||||
Sterling Jewelers | $ | 3,647.3 | $ | 3,311.0 | $ | 2,979.2 | |||||
Zale Jewelry | 1,903.6 | n/a | n/a | ||||||||
Piercing Pagoda | 132.8 | n/a | n/a | ||||||||
UK Jewelry | 413.5 | 484.6 | 449.9 | ||||||||
Other | 230.4 | 233.6 | 289.9 | ||||||||
Total assets | $ | 6,327.6 | $ | 4,029.2 | $ | 3,719.0 | |||||
Total long-lived assets: | |||||||||||
Sterling Jewelers | $ | 488.3 | $ | 423.6 | $ | 377.5 | |||||
Zale Jewelry | 1,014.4 | n/a | n/a | ||||||||
Piercing Pagoda | 46.5 | n/a | n/a | ||||||||
UK Jewelry | 73.8 | 81.1 | 76.8 | ||||||||
Other | 9.2 | 9.7 | 0.7 | ||||||||
Total long-lived assets | $ | 1,632.2 | $ | 514.4 | $ | 455.0 | |||||
Total liabilities: | |||||||||||
Sterling Jewelers | $ | 2,022.9 | $ | 1,299.3 | $ | 1,243.4 | |||||
Zale Jewelry | 514.6 | n/a | n/a | ||||||||
Piercing Pagoda | 47.1 | n/a | n/a | ||||||||
UK Jewelry | 128.1 | 139.3 | 116.9 | ||||||||
Other | 804.5 | 27.5 | 28.8 | ||||||||
Total liabilities | $ | 3,517.2 | $ | 1,466.1 | $ | 1,389.1 | |||||
Sales by product: | |||||||||||
Diamonds and diamond jewelry | $ | 3,450.6 | $ | 2,552.1 | $ | 2,410.7 | |||||
Gold, silver jewelry, other products and services | 1,784.5 | 1,236.9 | 1,116.5 | ||||||||
Watches | 501.2 | 420.2 | 456.2 | ||||||||
Total sales | $ | 5,736.3 | $ | 4,209.2 | $ | 3,983.4 |
|
Pension plan | |||||||||||||||||||
(in millions) | Foreign currency translation | Gains (losses) on cash flow hedges | Actuarial gains (losses) | Prior service credit (cost) | Accumulated other comprehensive (loss) income | ||||||||||||||
Balance at January 28, 2012 | $ | (148.9 | ) | $ | 22.1 | $ | (51.5 | ) | $ | 19.1 | $ | (159.2 | ) | ||||||
OCI before reclassifications | (0.5 | ) | (6.7 | ) | 4.7 | (0.8 | ) | (3.3 | ) | ||||||||||
Amounts reclassified from AOCI | — | (14.4 | ) | 2.4 | (1.2 | ) | (13.2 | ) | |||||||||||
Net current-period OCI | (0.5 | ) | (21.1 | ) | 7.1 | (2.0 | ) | (16.5 | ) | ||||||||||
Balance at February 2, 2013 | $ | (149.4 | ) | $ | 1.0 | $ | (44.4 | ) | $ | 17.1 | $ | (175.7 | ) | ||||||
OCI before reclassifications | 12.4 | (22.0 | ) | 0.2 | (0.7 | ) | (10.1 | ) | |||||||||||
Amounts reclassified from AOCI | — | 6.7 | 1.7 | (1.1 | ) | 7.3 | |||||||||||||
Net current-period OCI | 12.4 | (15.3 | ) | 1.9 | (1.8 | ) | (2.8 | ) | |||||||||||
Balance at February 1, 2014 | $ | (137.0 | ) | $ | (14.3 | ) | $ | (42.5 | ) | $ | 15.3 | $ | (178.5 | ) | |||||
OCI before reclassifications | (60.6 | ) | 6.2 | (15.8 | ) | (0.7 | ) | (70.9 | ) | ||||||||||
Amounts reclassified from AOCI | — | 12.5 | 1.6 | (1.3 | ) | 12.8 | |||||||||||||
Net current-period OCI | (60.6 | ) | 18.7 | (14.2 | ) | (2.0 | ) | (58.1 | ) | ||||||||||
Balance at January 31, 2015 | $ | (197.6 | ) | $ | 4.4 | $ | (56.7 | ) | $ | 13.3 | $ | (236.6 | ) |
Fiscal 2015 | Fiscal 2014 | Fiscal 2013 | |||||||||||||
Reclassification activity by individual AOCI component: (in millions) | Amounts reclassified from AOCI | Amounts reclassified from AOCI | Amounts reclassified from AOCI | Income statement caption | |||||||||||
(Gains) losses on cash flow hedges: | |||||||||||||||
Foreign currency contracts | $ | 1.3 | $ | (0.9 | ) | $ | (0.4 | ) | Cost of sales (see Note 16) | ||||||
Commodity contracts | 17.3 | 12.0 | (22.0 | ) | Cost of sales (see Note 16) | ||||||||||
Total before income tax | 18.6 | 11.1 | (22.4 | ) | |||||||||||
Income taxes | (6.1 | ) | (4.4 | ) | 8.0 | ||||||||||
Net of tax | 12.5 | 6.7 | (14.4 | ) | |||||||||||
Defined benefit pension plan items: | |||||||||||||||
Amortization of unrecognized net prior service credit | (1.7 | ) | (1.5 | ) | (1.6 | ) | Selling, general and administrative expenses(1) | ||||||||
Amortization of unrecognized actuarial loss | 2.0 | 2.3 | 3.2 | Selling, general and administrative expenses(1) | |||||||||||
Total before income tax | 0.3 | 0.8 | 1.6 | ||||||||||||
Income taxes | — | (0.2 | ) | (0.4 | ) | ||||||||||
Net of tax | 0.3 | 0.6 | 1.2 | ||||||||||||
Total reclassifications, net of tax | $ | 12.8 | $ | 7.3 | $ | (13.2 | ) |
(1) | These items are included in the computation of net periodic pension benefit (cost). See Note 18 for additional information. |
|
(in millions) | Fiscal 2015 | Fiscal 2014 | Fiscal 2013 | ||||||||
Income before income taxes: | |||||||||||
– US | $ | 380.8 | $ | 493.7 | $ | 494.3 | |||||
– Foreign | 159.8 | 72.8 | 62.6 | ||||||||
Total income before income taxes | $ | 540.6 | $ | 566.5 | $ | 556.9 | |||||
Current taxation: | |||||||||||
– US | $ | 199.5 | $ | 211.8 | $ | 186.6 | |||||
– Foreign | 7.8 | 7.1 | 6.1 | ||||||||
Deferred taxation: | |||||||||||
– US | (47.9 | ) | (22.8 | ) | 3.1 | ||||||
– Foreign | (0.1 | ) | 2.4 | 1.2 | |||||||
Total income taxes | $ | 159.3 | $ | 198.5 | $ | 197.0 |
Fiscal 2015 | Fiscal 2014 | Fiscal 2013 | ||||||
US federal income tax rates | 35.0 | % | 35.0 | % | 35.0 | % | ||
US state income taxes | 2.1 | % | 2.5 | % | 2.7 | % | ||
Differences between US federal and foreign statutory income tax rates | (0.8 | )% | (0.9 | )% | (0.6 | )% | ||
Expenditures permanently disallowable for tax purposes, net of permanent tax benefits | 0.8 | % | 0.6 | % | 0.8 | % | ||
Disallowable transaction costs | 0.7 | % | — | % | — | % | ||
Impact of global reinsurance arrangements | (1.5 | )% | (0.2 | )% | — | % | ||
Impact of global financing arrangements | (7.2 | )% | (1.9 | )% | (2.1 | )% | ||
Other items | 0.4 | % | (0.1 | )% | (0.4 | )% | ||
Effective tax rate | 29.5 | % | 35.0 | % | 35.4 | % |
January 31, 2015 | February 1, 2014 | ||||||||||||||||||||||
(in millions) | Assets | (Liabilities) | Total | Assets | (Liabilities) | Total | |||||||||||||||||
Intangible assets | $ | — | $ | (133.0 | ) | $ | (133.0 | ) | $ | — | $ | — | $ | — | |||||||||
US property, plant and equipment | — | (50.7 | ) | (50.7 | ) | — | (70.1 | ) | (70.1 | ) | |||||||||||||
Foreign property, plant and equipment | 7.0 | — | 7.0 | 7.0 | — | 7.0 | |||||||||||||||||
Inventory valuation | — | (256.4 | ) | (256.4 | ) | — | (169.2 | ) | (169.2 | ) | |||||||||||||
Allowances for doubtful accounts | 46.0 | — | 46.0 | 39.7 | — | 39.7 | |||||||||||||||||
Revenue deferral | 172.7 | — | 172.7 | 134.3 | — | 134.3 | |||||||||||||||||
Derivative instruments | — | (2.2 | ) | (2.2 | ) | 6.9 | — | 6.9 | |||||||||||||||
Straight-line lease payments | 31.8 | — | 31.8 | 27.5 | — | 27.5 | |||||||||||||||||
Deferred compensation | 11.1 | — | 11.1 | 9.9 | — | 9.9 | |||||||||||||||||
Retirement benefit obligations | — | (7.5 | ) | (7.5 | ) | — | (12.0 | ) | (12.0 | ) | |||||||||||||
Share-based compensation | 5.8 | — | 5.8 | 10.3 | — | 10.3 | |||||||||||||||||
Other temporary differences | 49.8 | — | 49.8 | 20.3 | — | 20.3 | |||||||||||||||||
Net operating losses and foreign tax credits | 83.7 | — | 83.7 | — | — | — | |||||||||||||||||
Value of foreign capital and trading losses | 15.0 | — | 15.0 | 15.8 | — | 15.8 | |||||||||||||||||
Total gross deferred tax assets (liabilities) | $ | 422.9 | $ | (449.8 | ) | $ | (26.9 | ) | $ | 271.7 | $ | (251.3 | ) | $ | 20.4 | ||||||||
Valuation allowance | (24.3 | ) | — | (24.3 | ) | (16.8 | ) | — | (16.8 | ) | |||||||||||||
Deferred tax assets (liabilities) | $ | 398.6 | $ | (449.8 | ) | $ | (51.2 | ) | $ | 254.9 | $ | (251.3 | ) | $ | 3.6 | ||||||||
Disclosed as: | |||||||||||||||||||||||
Current assets | $ | 4.5 | $ | 3.0 | |||||||||||||||||||
Current liabilities | (145.8 | ) | (113.1 | ) | |||||||||||||||||||
Non-current assets | 111.1 | 113.7 | |||||||||||||||||||||
Non-current liabilities | (21.0 | ) | — | ||||||||||||||||||||
Deferred tax assets (liabilities) | $ | (51.2 | ) | $ | 3.6 |
(in millions) | Fiscal 2015 | Fiscal 2014 | Fiscal 2013 | ||||||||
Balance at beginning of period | $ | 4.6 | $ | 4.5 | $ | 4.8 | |||||
Acquired existing unrecognized tax benefits | 4.3 | — | — | ||||||||
Increases related to current year tax positions | 3.5 | 0.4 | 0.2 | ||||||||
Prior year tax positions: | |||||||||||
Increases | — | 0.2 | — | ||||||||
Decreases | (0.1 | ) | — | — | |||||||
Cash settlements | — | (0.5 | ) | — | |||||||
Lapse of statute of limitations | (0.4 | ) | — | (0.5 | ) | ||||||
Difference on foreign currency translation | (0.5 | ) | — | — | |||||||
Balance at end of period | $ | 11.4 | $ | 4.6 | $ | 4.5 |
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(in millions) | Fiscal 2015 | Fiscal 2014 | Fiscal 2013 | ||||||||
Interest income from in-house customer finance programs | $ | 217.9 | $ | 186.4 | $ | 159.7 | |||||
Other | (2.6 | ) | 0.3 | 1.7 | |||||||
Other operating income, net | $ | 215.3 | $ | 186.7 | $ | 161.4 |
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(in millions) | January 31, 2015 | February 1, 2014 | |||||
Accounts receivable by portfolio segment, net: | |||||||
Sterling Jewelers customer in-house finance receivables | $ | 1,552.9 | $ | 1,356.0 | |||
Other accounts receivable | 14.7 | 18.0 | |||||
Total accounts receivable, net | $ | 1,567.6 | $ | 1,374.0 |
(in millions) | Fiscal 2015 | Fiscal 2014 | Fiscal 2013 | ||||||||
Beginning balance: | $ | (97.8 | ) | $ | (87.7 | ) | $ | (78.1 | ) | ||
Charge-offs | 144.7 | 128.2 | 112.8 | ||||||||
Recoveries | 27.5 | 26.0 | 21.8 | ||||||||
Provision | (187.5 | ) | (164.3 | ) | (144.2 | ) | |||||
Ending balance | $ | (113.1 | ) | $ | (97.8 | ) | $ | (87.7 | ) | ||
Ending receivable balance evaluated for impairment | 1,666.0 | 1,453.8 | 1,280.6 | ||||||||
Sterling Jewelers customer in-house finance receivables, net | $ | 1,552.9 | $ | 1,356.0 | $ | 1,192.9 |
January 31, 2015 | February 1, 2014 | February 2, 2013 | |||||||||||||||||||||
(in millions) | Gross | Valuation allowance | Gross | Valuation allowance | Gross | Valuation allowance | |||||||||||||||||
Performing: | |||||||||||||||||||||||
Current, aged 0 – 30 days | $ | 1,332.2 | $ | (41.1 | ) | $ | 1,170.4 | $ | (36.3 | ) | $ | 1,030.3 | $ | (33.8 | ) | ||||||||
Past due, aged 31 – 90 days | 271.1 | (9.3 | ) | 229.9 | (8.0 | ) | 203.9 | (7.5 | ) | ||||||||||||||
Non Performing: | |||||||||||||||||||||||
Past due, aged more than 90 days | 62.7 | (62.7 | ) | 53.5 | (53.5 | ) | 46.4 | (46.4 | ) | ||||||||||||||
$ | 1,666.0 | $ | (113.1 | ) | $ | 1,453.8 | $ | (97.8 | ) | $ | 1,280.6 | $ | (87.7 | ) |
January 31, 2015 | February 1, 2014 | February 2, 2013 | |||||||||||||||
(as a percentage of the ending receivable balance) | Gross | Valuation allowance | Gross | Valuation allowance | Gross | Valuation allowance | |||||||||||
Performing | 96.2 | % | 3.1 | % | 96.3 | % | 3.2 | % | 96.4 | % | 3.3 | % | |||||
Non Performing | 3.8 | % | 100.0 | % | 3.7 | % | 100.0 | % | 3.6 | % | 100.0 | % | |||||
100.0 | % | 6.8 | % | 100.0 | % | 6.7 | % | 100.0 | % | 6.8 | % |
|
(in millions) | January 31, 2015 | February 1, 2014 | |||||
Raw materials | $ | 75.2 | $ | 41.8 | |||
Finished goods | 2,363.8 | 1,446.2 | |||||
Total inventories | $ | 2,439.0 | $ | 1,488.0 |
(in millions) | Balance at beginning of period | Charged to profit | Utilized(1) | Balance at end of period | |||||||||||
Fiscal 2013 | $ | 29.3 | $ | 23.6 | $ | (29.5 | ) | $ | 23.4 | ||||||
Fiscal 2014 | 23.4 | 33.3 | (40.4 | ) | 16.3 | ||||||||||
Fiscal 2015 | $ | 16.3 | $ | 44.6 | $ | (32.5 | ) | $ | 28.4 |
|
(in millions) | January 31, 2015 | February 1, 2014 | |||||
Land and buildings | $ | 36.0 | $ | 37.2 | |||
Leasehold improvements | 556.4 | 461.4 | |||||
Furniture and fixtures | 596.6 | 537.3 | |||||
Equipment, including software | 278.6 | 221.1 | |||||
Construction in progress | 50.4 | 18.7 | |||||
Total | $ | 1,518.0 | $ | 1,275.7 | |||
Accumulated depreciation and amortization | (852.1 | ) | (788.1 | ) | |||
Property, plant and equipment, net | $ | 665.9 | $ | 487.6 |
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(in millions) | Sterling Jewelers | Zale Jewelry | Piercing Pagoda | UK Jewelry | Other | Total | |||||||||||||||||
Balance at February 2, 2013 | $ | 24.6 | $ | — | $ | — | $ | — | $ | — | $ | 24.6 | |||||||||||
Acquisitions | (1.4 | ) | — | — | — | 3.6 | 2.2 | ||||||||||||||||
Balance at February 1, 2014 | 23.2 | — | — | — | 3.6 | 26.8 | |||||||||||||||||
Acquisitions | — | 492.4 | — | — | — | 492.4 | |||||||||||||||||
Balance at January 31, 2015 | $ | 23.2 | $ | 492.4 | $ | — | $ | — | $ | 3.6 | $ | 519.2 |
January 31, 2015 | |||||||||||||
(in millions) | Balance sheet location | Gross carrying amount | Accumulated amortization | Net carrying amount | |||||||||
Definite-lived intangible assets: | |||||||||||||
Trade names | Intangible assets, net | $ | 1.5 | $ | (0.2 | ) | $ | 1.3 | |||||
Favorable leases | Intangible assets, net | 48.1 | (9.1 | ) | 39.0 | ||||||||
Total definite-lived intangible assets | 49.6 | (9.3 | ) | 40.3 | |||||||||
Indefinite-lived trade names | Intangible assets, net | 406.8 | — | 406.8 | |||||||||
Total intangible assets, net | $ | 456.4 | $ | (9.3 | ) | $ | 447.1 | ||||||
Definite-lived intangible liabilities: | |||||||||||||
Unfavorable leases | Other liabilities | $ | (48.7 | ) | $ | 9.7 | $ | (39.0 | ) | ||||
Unfavorable contracts | Other liabilities | $ | (65.6 | ) | $ | 13.8 | $ | (51.8 | ) | ||||
Total intangible liabilities, net | $ | (114.3 | ) | $ | 23.5 | $ | (90.8 | ) |
(in millions) | Trade names | Favorable leases | Total | ||||||||
2016 | $ | 0.3 | $ | 13.6 | $ | 13.9 | |||||
2017 | 0.3 | 13.6 | 13.9 | ||||||||
2018 | 0.3 | 9.1 | 9.4 | ||||||||
2019 | 0.2 | 2.5 | 2.7 | ||||||||
2020 | 0.1 | 0.2 | 0.3 | ||||||||
Thereafter | 0.1 | — | 0.1 | ||||||||
Total | $ | 1.3 | $ | 39.0 | $ | 40.3 |
(in millions) | Unfavorable leases | Unfavorable contracts | Total | ||||||||
2016 | $ | 14.5 | $ | 15.6 | $ | 30.1 | |||||
2017 | 14.4 | 5.4 | 19.8 | ||||||||
2018 | 7.7 | 5.4 | 13.1 | ||||||||
2019 | 2.2 | 5.4 | 7.6 | ||||||||
2020 | 0.2 | 5.4 | 5.6 | ||||||||
Thereafter | — | 14.6 | 14.6 | ||||||||
Total | $ | 39.0 | $ | 51.8 | $ | 90.8 |
|
(in millions) | January 31, 2015 | February 1, 2014 | |||||
Deferred extended service plan costs | $ | 69.7 | $ | 61.9 | |||
Investments | 25.2 | — | |||||
Other assets | 45.1 | 25.3 | |||||
Total other assets | $ | 140.0 | $ | 87.2 |
|
January 31, 2015 | |||||||||||
(in millions) | Cost | Unrealized Gain (Loss) | Fair Value | ||||||||
US Treasury securities | $ | 9.7 | $ | (0.1 | ) | $ | 9.6 | ||||
US government agency securities | 1.4 | — | 1.4 | ||||||||
Corporate bonds and notes | 10.6 | 0.2 | 10.8 | ||||||||
Corporate equity securities | 3.5 | (0.1 | ) | 3.4 | |||||||
Total investments | $ | 25.2 | $ | — | $ | 25.2 |
(in millions) | Cost | Fair Value | |||||
Less than one year | $ | 2.0 | $ | 1.9 | |||
Year two through year five | 11.2 | 11.1 | |||||
Year six through year ten | 8.4 | 8.7 | |||||
After ten years | 0.1 | 0.1 | |||||
Total investment in debt securities | $ | 21.7 | $ | 21.8 |
|
Fair value of derivative assets | |||||||||
(in millions) | Balance sheet location | January 31, 2015 | February 1, 2014 | ||||||
Derivatives designated as hedging instruments: | |||||||||
Foreign currency contracts | Other current assets | $ | 1.0 | $ | — | ||||
Foreign currency contracts | Other assets | — | — | ||||||
Commodity contracts | Other current assets | 6.3 | 0.8 | ||||||
Commodity contracts | Other assets | — | — | ||||||
7.3 | 0.8 | ||||||||
Derivatives not designated as hedging instruments: | |||||||||
Foreign currency contracts | Other current assets | 0.1 | 0.2 | ||||||
Total derivative assets | $ | 7.4 | $ | 1.0 |
Fair value of derivative liabilities | |||||||||
(in millions) | Balance sheet location | January 31, 2015 | February 1, 2014 | ||||||
Derivatives designated as hedging instruments: | |||||||||
Foreign currency contracts | Other current liabilities | $ | — | $ | (2.1 | ) | |||
Foreign currency contracts | Other liabilities | — | — | ||||||
Commodity contracts | Other current liabilities | — | (0.8 | ) | |||||
Commodity contracts | Other liabilities | — | — | ||||||
— | (2.9 | ) | |||||||
Derivatives not designated as hedging instruments: | |||||||||
Foreign currency contracts | Other current liabilities | — | — | ||||||
Total derivative liabilities | $ | — | $ | (2.9 | ) |
(in millions) | January 31, 2015 | February 1, 2014 | ||||||
Foreign currency contracts | $ | 0.9 | $ | (2.3 | ) | |||
Commodity contracts | 5.7 | (18.8 | ) | (1) | ||||
Total | $ | 6.6 | $ | (21.1 | ) | |||
(in millions) | Income statement caption | Fiscal 2015 | Fiscal 2014 | ||||||
(Losses) gains recorded in AOCI, beginning of period | $ | (2.3 | ) | $ | 1.3 | ||||
Current period gains (losses) recognized in OCI | 1.9 | (2.7 | ) | ||||||
Losses (gains) reclassified from AOCI to net (loss) income | Cost of sales | 1.3 | (0.9 | ) | |||||
Gains (losses) recorded in AOCI, end of period | $ | 0.9 | $ | (2.3 | ) |
(in millions) | Income statement caption | Fiscal 2015 | Fiscal 2014 | ||||||
(Losses) gains recorded in AOCI, beginning of period | $ | (18.8 | ) | $ | (0.5 | ) | |||
Current period gains (losses) recognized in OCI | 7.2 | (30.3 | ) | ||||||
Losses (gains) reclassified from AOCI to net (loss) income | Cost of sales | 17.3 | 12.0 | ||||||
Gains (losses) recorded in AOCI, end of period | $ | 5.7 | $ | (18.8 | ) |
Income statement caption | Amount of gain (loss) recognized in income | ||||||||
(in millions) | Fiscal 2015 | Fiscal 2014 | |||||||
Derivatives not designated as hedging instruments: | |||||||||
Foreign currency contracts | Other operating income, net | $ | 0.6 | $ | (5.5 | ) | |||
Total | $ | 0.6 | $ | (5.5 | ) |
|
January 31, 2015 | February 1, 2014 | ||||||||||||||||||||||
(in millions) | Carrying Value | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Carrying Value | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | |||||||||||||||||
Assets: | |||||||||||||||||||||||
US Treasury securities | $ | 9.6 | $ | 9.6 | $ | — | $ | — | $ | — | $ | — | |||||||||||
Corporate equity securities | 3.4 | 3.4 | — | — | — | — | |||||||||||||||||
Foreign currency contracts | 1.1 | — | 1.1 | 0.2 | — | 0.2 | |||||||||||||||||
Commodity contracts | 6.3 | — | 6.3 | 0.8 | — | 0.8 | |||||||||||||||||
US government agency securities | 1.4 | — | 1.4 | — | — | — | |||||||||||||||||
Corporate bonds and notes | 10.8 | — | 10.8 | — | — | — | |||||||||||||||||
Total Assets | $ | 32.6 | $ | 13.0 | $ | 19.6 | $ | 1.0 | $ | — | $ | 1.0 | |||||||||||
Liabilities: | |||||||||||||||||||||||
Foreign currency contracts | $ | — | $ | — | $ | — | $ | (2.1 | ) | $ | — | $ | (2.1 | ) | |||||||||
Commodity contracts | — | — | — | (0.8 | ) | — | (0.8 | ) | |||||||||||||||
Total Liabilities | $ | — | $ | — | $ | — | $ | (2.9 | ) | $ | — | $ | (2.9 | ) |
Fiscal 2015 | Fiscal 2014 | ||||||||||||||
(in millions) | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||
Outstanding debt: | |||||||||||||||
Senior notes (Level 2) | $ | 398.5 | $ | 415.3 | $ | — | $ | — | |||||||
Securitization facility (Level 2) | 600.0 | 600.0 | — | — | |||||||||||
Term loan (Level 2) | 390.0 | 390.0 | |||||||||||||
Capital lease obligations (Level 2) | 1.2 | 1.2 | — | — | |||||||||||
Total outstanding debt | $ | 1,389.7 | $ | 1,406.5 | $ | — | $ | — |
|
(in millions) | Fiscal 2015 | Fiscal 2014 | |||||
Change in UK Plan assets: | |||||||
Fair value at beginning of year | $ | 282.6 | $ | 261.1 | |||
Actual return on UK Plan assets | 43.9 | 13.1 | |||||
Employer contributions | 4.2 | 4.9 | |||||
Members’ contributions | 0.7 | 0.7 | |||||
Benefits paid | (10.2 | ) | (9.3 | ) | |||
Foreign currency changes | (25.4 | ) | 12.1 | ||||
Fair value at end of year | $ | 295.8 | $ | 282.6 |
(in millions) | Fiscal 2015 | Fiscal 2014 | |||||
Change in benefit obligation: | |||||||
Benefit obligation at beginning of year | $ | 226.3 | $ | 212.6 | |||
Service cost | 2.3 | 2.4 | |||||
Past service cost | 0.9 | 0.9 | |||||
Interest cost | 9.7 | 9.3 | |||||
Members’ contributions | 0.7 | 0.7 | |||||
Actuarial loss (gain) | 47.5 | (0.1 | ) | ||||
Benefits paid | (10.2 | ) | (9.3 | ) | |||
Foreign currency changes | (18.4 | ) | 9.8 | ||||
Benefit obligation at end of year | $ | 258.8 | $ | 226.3 | |||
Funded status at end of year: UK Plan assets less benefit obligation | $ | 37.0 | $ | 56.3 |
(in millions) | January 31, 2015 | February 1, 2014 | |||||
Amounts recognized in the balance sheet consist of: | |||||||
Non-current assets | $ | 37.0 | $ | 56.3 | |||
Non-current liabilities | — | — | |||||
Net asset recognized | $ | 37.0 | $ | 56.3 |
(in millions) | January 31, 2015 | February 1, 2014 | February 2, 2013 | ||||||||
Net actuarial loss | $ | (56.7 | ) | $ | (42.5 | ) | $ | (44.4 | ) | ||
Net prior service credit | 13.3 | 15.3 | 17.1 |
(in millions) | Fiscal 2015 | Fiscal 2014 | Fiscal 2013 | ||||||||
Components of net periodic pension cost: | |||||||||||
Service cost | $ | (2.3 | ) | $ | (2.4 | ) | $ | (3.6 | ) | ||
Interest cost | (9.7 | ) | (9.3 | ) | (9.5 | ) | |||||
Expected return on UK Plan assets | 14.7 | 13.0 | 11.5 | ||||||||
Amortization of unrecognized net prior service credit | 1.7 | 1.5 | 1.6 | ||||||||
Amortization of unrecognized actuarial loss | (2.0 | ) | (2.3 | ) | (3.2 | ) | |||||
Net periodic pension benefit (cost) | $ | 2.4 | $ | 0.5 | $ | (3.2 | ) | ||||
Other changes in assets and benefit obligations recognized in OCI | (21.0 | ) | 0.1 | 6.7 | |||||||
Total recognized in net periodic pension benefit (cost) and OCI | $ | (18.6 | ) | $ | 0.6 | $ | 3.5 |
January 31, 2015 | February 1, 2014 | ||||
Assumptions used to determine benefit obligations (at the end of the year): | |||||
Discount rate | 3.00 | % | 4.40 | % | |
Salary increases | 2.50 | % | 3.00 | % | |
Assumptions used to determine net periodic pension costs (at the start of the year): | |||||
Discount rate | 4.40 | % | 4.50 | % | |
Expected return on UK Plan assets | 5.25 | % | 5.00 | % | |
Salary increases | 3.00 | % | 3.20 | % |
Fair value measurements as of January 31, 2015 | Fair value measurements as of February 1, 2014 | ||||||||||||||||||||||||||||||
(in millions) | Total | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant Unobservable inputs (Level 3) | Total | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | |||||||||||||||||||||||
Asset category: | |||||||||||||||||||||||||||||||
Diversified equity securities | $ | 23.6 | $ | 12.2 | $ | 11.4 | $ | — | $ | 41.0 | $ | 19.1 | $ | 21.9 | $ | — | |||||||||||||||
Diversified growth funds | 99.0 | 49.8 | 49.2 | — | 100.5 | 50.8 | 49.7 | — | |||||||||||||||||||||||
Fixed income – government bonds | 95.8 | — | 95.8 | — | 64.2 | — | 64.2 | — | |||||||||||||||||||||||
Fixed income – corporate bonds | 64.6 | — | 64.6 | — | 64.6 | — | 64.6 | — | |||||||||||||||||||||||
Property | 12.3 | — | — | 12.3 | 11.6 | — | — | 11.6 | |||||||||||||||||||||||
Cash | 0.5 | 0.5 | — | — | 0.7 | 0.7 | — | — | |||||||||||||||||||||||
Total | $ | 295.8 | $ | 62.5 | $ | 221.0 | $ | 12.3 | $ | 282.6 | $ | 70.6 | $ | 200.4 | $ | 11.6 |
(in millions) | |||
Balance as of February 2, 2013 | $ | 10.4 | |
Actual return on assets | 1.2 | ||
Balance as of February 1, 2014 | $ | 11.6 | |
Actual return on assets | 0.7 | ||
Balance as of January 31, 2015 | $ | 12.3 |
(in millions) | |||
Fiscal 2016 | $ | 9.0 | |
Fiscal 2017 | 9.4 | ||
Fiscal 2018 | 9.0 | ||
Fiscal 2019 | 10.4 | ||
Fiscal 2020 | 10.3 | ||
Thereafter | $ | 56.4 |
Fair value measurements as of January 31, 2015 | Fair value measurements as of February 1, 2014 | ||||||||||||||||||||||
(in millions) | Total | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Total | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | |||||||||||||||||
Assets: | |||||||||||||||||||||||
Corporate-owned life insurance plans | $ | 9.0 | $ | — | $ | 9.0 | $ | 8.2 | $ | — | $ | 8.2 | |||||||||||
Money market funds | 20.8 | 20.8 | — | 16.3 | 16.3 | — | |||||||||||||||||
Total assets | $ | 29.8 | $ | 20.8 | $ | 9.0 | $ | 24.5 | $ | 16.3 | $ | 8.2 |
|
(in millions) | January 31, 2015 | February 1, 2014 | |||||
Current liabilities – loans and overdrafts: | |||||||
Revolving credit facility | $ | — | $ | — | |||
Current portion of senior unsecured term loan | 25.0 | — | |||||
Current portion of capital lease obligations | 0.9 | — | |||||
Bank overdrafts | 71.6 | 19.3 | |||||
Total loans and overdrafts | 97.5 | 19.3 | |||||
Long-term debt: | |||||||
Senior unsecured notes due 2024, net of unamortized discount | 398.5 | — | |||||
Securitization facility | 600.0 | — | |||||
Senior unsecured term loan | 365.0 | — | |||||
Capital lease obligations | 0.3 | — | |||||
Total long-term debt | $ | 1,363.8 | $ | — | |||
Total loans, overdrafts and long-term debt | $ | 1,461.3 | $ | 19.3 |
|
(in millions) | January 31, 2015 | February 1, 2014 | |||||
Accrued compensation | $ | 156.2 | $ | 81.3 | |||
Other liabilities | 37.9 | 50.1 | |||||
Other taxes | 43.0 | 31.7 | |||||
Payroll taxes | 11.6 | 8.0 | |||||
Accrued expenses | 233.7 | 157.4 | |||||
Total accrued expenses and other current liabilities | $ | 482.4 | $ | 328.5 |
(in millions) | Balance at beginning of period | Net adjustment (1) | Balance at end of period | ||||||||
Fiscal 2013 | $ | 7.3 | $ | 0.3 | $ | 7.6 | |||||
Fiscal 2014 | $ | 7.6 | $ | 0.8 | $ | 8.4 | |||||
Fiscal 2015 | $ | 8.4 | $ | 6.9 | $ | 15.3 |
(in millions) | Balance at beginning of period | Warranty obligations acquired | Warranty expense | Utilized | Balance at end of period | ||||||||||||||
Fiscal 2013 | $ | 15.1 | $ | — | $ | 8.6 | $ | (5.2 | ) | $ | 18.5 | ||||||||
Fiscal 2014 | $ | 18.5 | $ | — | $ | 7.4 | $ | (6.8 | ) | $ | 19.1 | ||||||||
Fiscal 2015 | $ | 19.1 | $ | 28.4 | $ | 7.4 | $ | (10.0 | ) | $ | 44.9 |
Disclosed as: (in millions) | January 31, 2015 | February 1, 2014 | |||||
Current liabilities(1) | $ | 17.2 | $ | 6.7 | |||
Non-current liabilities (see Note 22) | 27.7 | 12.4 | |||||
Total warranty reserve | $ | 44.9 | $ | 19.1 |
|
(in millions) | January 31, 2015 | February 1, 2014 | |||||
Sterling Jewelers ESP deferred revenue | $ | 668.9 | $ | 601.2 | |||
Zale ESP deferred revenue | 120.3 | — | |||||
Voucher promotions and other | 22.7 | 15.5 | |||||
Total deferred revenue | $ | 811.9 | $ | 616.7 | |||
Disclosed as: | |||||||
Current liabilities | $ | 248.0 | $ | 173.0 | |||
Non-current liabilities | 563.9 | 443.7 | |||||
Total deferred revenue | $ | 811.9 | $ | 616.7 |
(in millions) | Fiscal 2015 | Fiscal 2014 | |||||
Sterling Jewelers ESP deferred revenue, beginning of period | $ | 601.2 | $ | 549.7 | |||
Plans sold | 257.5 | 223.3 | |||||
Revenue recognized | (189.8 | ) | (171.8 | ) | |||
Sterling Jewelers ESP deferred revenue, end of period | $ | 668.9 | $ | 601.2 |
(in millions) | Fiscal 2015 | ||
Zale ESP deferred revenue, beginning of period | $ | — | |
Plans acquired | 93.3 | ||
Plans sold | 88.4 | ||
Revenue recognized | (61.4 | ) | |
Zale ESP deferred revenue, end of period | $ | 120.3 |
|
(in millions) | January 31, 2015 | February 1, 2014 | |||||
Straight-line rent | $ | 73.8 | $ | 67.1 | |||
Deferred compensation | 28.4 | 25.0 | |||||
Warranty reserve | 27.7 | 12.4 | |||||
Lease loss reserve | 4.2 | 5.8 | |||||
Other liabilities | 96.1 | 11.4 | |||||
Total other liabilities | $ | 230.2 | $ | 121.7 |
(in millions) | January 31, 2015 | February 1, 2014 | |||||
At beginning of period: | $ | 5.8 | $ | 8.1 | |||
Adjustments, net | (0.4 | ) | (1.6 | ) | |||
Utilization(1) | (1.2 | ) | (0.7 | ) | |||
At end of period | $ | 4.2 | $ | 5.8 |
|
(in millions) | Fiscal 2015 | Fiscal 2014 | Fiscal 2013 | ||||||||
Minimum rentals | $ | 462.9 | $ | 323.7 | $ | 316.0 | |||||
Contingent rent | 14.0 | 11.1 | 7.8 | ||||||||
Sublease income | (0.8 | ) | (0.9 | ) | (2.9 | ) | |||||
Total | $ | 476.1 | $ | 333.9 | $ | 320.9 |
(in millions) | |||
Fiscal 2016 | $ | 462.3 | |
Fiscal 2017 | 398.0 | ||
Fiscal 2018 | 334.9 | ||
Fiscal 2019 | 272.2 | ||
Fiscal 2020 | 238.3 | ||
Thereafter | 1,030.3 | ||
Total | $ | 2,736.0 |
|
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Sales | $ | — | $ | — | $ | 5,671.4 | $ | 64.9 | $ | — | $ | 5,736.3 | |||||||||||
Cost of sales | — | — | (3,647.0 | ) | (15.1 | ) | — | (3,662.1 | ) | ||||||||||||||
Gross margin | — | — | 2,024.4 | 49.8 | — | 2,074.2 | |||||||||||||||||
Selling, general and administrative expenses | (2.5 | ) | — | (1,683.6 | ) | (26.8 | ) | — | (1,712.9 | ) | |||||||||||||
Other operating income, net | — | — | 220.8 | (5.5 | ) | — | 215.3 | ||||||||||||||||
Operating (loss) income | (2.5 | ) | — | 561.6 | 17.5 | — | 576.6 | ||||||||||||||||
Intra-entity interest income (expense) | — | 13.2 | (129.6 | ) | 116.4 | — | — | ||||||||||||||||
Interest expense, net | — | (13.9 | ) | (14.8 | ) | (7.3 | ) | — | (36.0 | ) | |||||||||||||
(Loss) income before income taxes | (2.5 | ) | (0.7 | ) | 417.2 | 126.6 | — | 540.6 | |||||||||||||||
Income taxes | — | 0.1 | (159.5 | ) | 0.1 | — | (159.3 | ) | |||||||||||||||
Equity in income of subsidiaries | 383.8 | — | 579.8 | 565.4 | (1,529.0 | ) | — | ||||||||||||||||
Net income (loss) | $ | 381.3 | $ | (0.6 | ) | $ | 837.5 | $ | 692.1 | $ | (1,529.0 | ) | $ | 381.3 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Sales | $ | — | $ | — | $ | 4,162.9 | $ | 46.3 | $ | — | $ | 4,209.2 | |||||||||||
Cost of sales | — | — | (2,621.2 | ) | (7.5 | ) | — | (2,628.7 | ) | ||||||||||||||
Gross margin | — | — | 1,541.7 | 38.8 | — | 1,580.5 | |||||||||||||||||
Selling, general and administrative expenses | (2.9 | ) | — | (1,193.1 | ) | (0.7 | ) | — | (1,196.7 | ) | |||||||||||||
Other operating income, net | — | — | 183.8 | 2.9 | — | 186.7 | |||||||||||||||||
Operating (loss) income | (2.9 | ) | — | 532.4 | 41.0 | — | 570.5 | ||||||||||||||||
Intra-entity interest (expense) income | — | — | (34.5 | ) | 34.5 | — | — | ||||||||||||||||
Interest expense, net | — | — | (3.9 | ) | (0.1 | ) | — | (4.0 | ) | ||||||||||||||
(Loss) income before income taxes | (2.9 | ) | — | 494.0 | 75.4 | — | 566.5 | ||||||||||||||||
Income taxes | — | — | (196.8 | ) | (1.7 | ) | — | (198.5 | ) | ||||||||||||||
Equity in income of subsidiaries | 370.9 | — | 344.2 | 301.3 | (1,016.4 | ) | — | ||||||||||||||||
Net income | $ | 368.0 | $ | — | $ | 641.4 | $ | 375.0 | $ | (1,016.4 | ) | $ | 368.0 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Sales | $ | — | $ | — | $ | 3,948.5 | $ | 34.9 | $ | — | $ | 3,983.4 | |||||||||||
Cost of sales | — | — | (2,443.4 | ) | (2.6 | ) | — | (2,446.0 | ) | ||||||||||||||
Gross margin | — | — | 1,505.1 | 32.3 | — | 1,537.4 | |||||||||||||||||
Selling, general and administrative expenses | (3.5 | ) | — | (1,135.6 | ) | 0.8 | — | (1,138.3 | ) | ||||||||||||||
Other operating income, net | — | — | 161.7 | (0.3 | ) | — | 161.4 | ||||||||||||||||
Operating (loss) income | (3.5 | ) | — | 531.2 | 32.8 | — | 560.5 | ||||||||||||||||
Intra-entity interest (expense) income | — | — | (41.1 | ) | 41.1 | — | — | ||||||||||||||||
Interest expense, net | — | — | (3.7 | ) | 0.1 | — | (3.6 | ) | |||||||||||||||
(Loss) income before income taxes | (3.5 | ) | — | 486.4 | 74.0 | — | 556.9 | ||||||||||||||||
Income taxes | — | — | (195.8 | ) | (1.2 | ) | — | (197.0 | ) | ||||||||||||||
Equity in income of subsidiaries | 363.4 | — | 333.9 | 295.1 | (992.4 | ) | — | ||||||||||||||||
Net income | $ | 359.9 | $ | — | $ | 624.5 | $ | 367.9 | $ | (992.4 | ) | $ | 359.9 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net income | $ | 381.3 | $ | (0.6 | ) | $ | 837.5 | $ | 692.1 | $ | (1,529.0 | ) | $ | 381.3 | |||||||||
Other comprehensive income (loss): | — | ||||||||||||||||||||||
Foreign currency translation adjustments | (60.6 | ) | — | (61.1 | ) | 4.6 | 56.5 | (60.6 | ) | ||||||||||||||
Available-for-sale securities: | — | ||||||||||||||||||||||
Unrealized loss | — | — | — | — | — | — | |||||||||||||||||
Cash flow hedges: | — | ||||||||||||||||||||||
Unrealized gain | 6.2 | — | 6.2 | — | (6.2 | ) | 6.2 | ||||||||||||||||
Reclassification adjustment for losses to net income | 12.5 | — | 12.5 | — | (12.5 | ) | 12.5 | ||||||||||||||||
Pension plan: | — | ||||||||||||||||||||||
Actuarial loss | (15.8 | ) | — | (15.8 | ) | — | 15.8 | (15.8 | ) | ||||||||||||||
Reclassification adjustment to net income for amortization of actuarial loss | 1.6 | — | 1.6 | — | (1.6 | ) | 1.6 | ||||||||||||||||
Prior service costs | (0.7 | ) | — | (0.7 | ) | — | 0.7 | (0.7 | ) | ||||||||||||||
Reclassification adjustment to net income for amortization of prior service credits | (1.3 | ) | — | (1.3 | ) | — | 1.3 | (1.3 | ) | ||||||||||||||
Total other comprehensive income | (58.1 | ) | — | (58.6 | ) | 4.6 | 54.0 | (58.1 | ) | ||||||||||||||
Total comprehensive income (loss) | $ | 323.2 | $ | (0.6 | ) | $ | 778.9 | $ | 696.7 | $ | (1,475.0 | ) | $ | 323.2 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net income | $ | 368.0 | $ | — | $ | 641.4 | $ | 375.0 | $ | (1,016.4 | ) | $ | 368.0 | ||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Foreign currency translation adjustments | 12.4 | — | 13.9 | (2.7 | ) | (11.2 | ) | 12.4 | |||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||
Unrealized loss | (22.0 | ) | — | (22.0 | ) | — | 22.0 | (22.0 | ) | ||||||||||||||
Reclassification adjustment for losses to net income | 6.7 | — | 6.7 | — | (6.7 | ) | 6.7 | ||||||||||||||||
Pension plan: | |||||||||||||||||||||||
Actuarial gain | 0.2 | — | 0.2 | — | (0.2 | ) | 0.2 | ||||||||||||||||
Reclassification adjustment to net income for amortization of actuarial loss | 1.7 | — | 1.7 | — | (1.7 | ) | 1.7 | ||||||||||||||||
Prior service benefit | (0.7 | ) | — | (0.7 | ) | — | 0.7 | (0.7 | ) | ||||||||||||||
Reclassification adjustment to net income for amortization of prior service credits | (1.1 | ) | — | (1.1 | ) | — | 1.1 | (1.1 | ) | ||||||||||||||
Total other comprehensive (loss) income | (2.8 | ) | — | (1.3 | ) | (2.7 | ) | 4.0 | (2.8 | ) | |||||||||||||
Total comprehensive income | $ | 365.2 | $ | — | $ | 640.1 | $ | 372.3 | $ | (1,012.4 | ) | $ | 365.2 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net income | $ | 359.9 | $ | — | $ | 624.5 | $ | 367.9 | $ | (992.4 | ) | $ | 359.9 | ||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Foreign currency translation adjustments | (0.5 | ) | — | (0.6 | ) | 0.1 | 0.5 | (0.5 | ) | ||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||
Unrealized loss | (6.7 | ) | — | (6.7 | ) | — | 6.7 | (6.7 | ) | ||||||||||||||
Reclassification adjustment for gains to net income | (14.4 | ) | — | (14.4 | ) | — | 14.4 | (14.4 | ) | ||||||||||||||
Pension plan: | |||||||||||||||||||||||
Actuarial gain | 4.7 | — | 4.7 | — | (4.7 | ) | 4.7 | ||||||||||||||||
Reclassification adjustment to net income for amortization of actuarial loss | 2.4 | — | 2.4 | — | (2.4 | ) | 2.4 | ||||||||||||||||
Prior service benefit | (0.8 | ) | — | (0.8 | ) | — | 0.8 | (0.8 | ) | ||||||||||||||
Reclassification adjustment to net income for amortization of prior service credits | (1.2 | ) | — | (1.2 | ) | — | 1.2 | (1.2 | ) | ||||||||||||||
Total other comprehensive (loss) income | (16.5 | ) | — | (16.6 | ) | 0.1 | 16.5 | (16.5 | ) | ||||||||||||||
Total comprehensive income | $ | 343.4 | $ | — | $ | 607.9 | $ | 368.0 | $ | (975.9 | ) | $ | 343.4 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Assets | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 2.1 | $ | 0.1 | $ | 166.5 | $ | 24.9 | $ | — | $ | 193.6 | |||||||||||
Accounts receivable, net | — | — | 1,566.2 | 1.4 | — | 1,567.6 | |||||||||||||||||
Intra-entity receivables, net | 121.6 | — | — | 61.8 | (183.4 | ) | — | ||||||||||||||||
Other receivables | — | — | 53.9 | 9.7 | — | 63.6 | |||||||||||||||||
Other current assets | 0.1 | 0.7 | 130.9 | 5.5 | — | 137.2 | |||||||||||||||||
Deferred tax assets | — | — | 4.3 | 0.2 | — | 4.5 | |||||||||||||||||
Income taxes | — | — | 1.8 | — | — | 1.8 | |||||||||||||||||
Inventories | — | — | 2,376.6 | 62.4 | — | 2,439.0 | |||||||||||||||||
Total current assets | 123.8 | 0.8 | 4,300.2 | 165.9 | (183.4 | ) | 4,407.3 | ||||||||||||||||
Non-current assets: | |||||||||||||||||||||||
Property, plant and equipment, net | — | — | 660.2 | 5.7 | — | 665.9 | |||||||||||||||||
Goodwill | — | — | 515.6 | 3.6 | — | 519.2 | |||||||||||||||||
Intangible assets, net | — | — | 447.1 | — | — | 447.1 | |||||||||||||||||
Investment in subsidiaries | 2,701.3 | — | 462.8 | 421.7 | (3,585.8 | ) | — | ||||||||||||||||
Intra-entity receivables, net | — | 402.4 | — | 3,490.0 | (3,892.4 | ) | — | ||||||||||||||||
Other assets | — | 5.8 | 105.3 | 28.9 | — | 140.0 | |||||||||||||||||
Deferred tax assets | — | — | 111.0 | 0.1 | — | 111.1 | |||||||||||||||||
Retirement benefit asset | — | — | 37.0 | — | — | 37.0 | |||||||||||||||||
Total assets | $ | 2,825.1 | $ | 409.0 | $ | 6,639.2 | $ | 4,115.9 | $ | (7,661.6 | ) | $ | 6,327.6 | ||||||||||
Liabilities and Shareholders’ equity | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Loans and overdrafts | $ | — | $ | — | $ | 97.5 | $ | — | $ | — | $ | 97.5 | |||||||||||
Accounts payable | — | — | 273.4 | 4.3 | — | 277.7 | |||||||||||||||||
Intra-entity payables, net | — | — | 183.4 | — | (183.4 | ) | — | ||||||||||||||||
Accrued expenses and other current liabilities | 14.7 | 2.4 | 456.7 | 8.6 | — | 482.4 | |||||||||||||||||
Deferred revenue | — | — | 248.0 | — | — | 248.0 | |||||||||||||||||
Deferred tax liabilities | — | — | 145.8 | — | — | 145.8 | |||||||||||||||||
Income taxes | — | (0.2 | ) | 87.7 | (0.6 | ) | — | 86.9 | |||||||||||||||
Total current liabilities | 14.7 | 2.2 | 1,492.5 | 12.3 | (183.4 | ) | 1,338.3 | ||||||||||||||||
Non-current liabilities: | |||||||||||||||||||||||
Long-term debt | — | 398.5 | 365.3 | 600.0 | — | 1,363.8 | |||||||||||||||||
Intra-entity payables, net | — | — | 3,892.4 | — | (3,892.4 | ) | — | ||||||||||||||||
Other liabilities | — | — | 222.0 | 8.2 | — | 230.2 | |||||||||||||||||
Deferred revenue | — | — | 563.9 | — | — | 563.9 | |||||||||||||||||
Deferred tax liabilities | — | — | 21.0 | — | — | 21.0 | |||||||||||||||||
Total liabilities | 14.7 | 400.7 | 6,557.1 | 620.5 | (4,075.8 | ) | 3,517.2 | ||||||||||||||||
Total shareholders’ equity | 2,810.4 | 8.3 | 82.1 | 3,495.4 | (3,585.8 | ) | 2,810.4 | ||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,825.1 | $ | 409.0 | $ | 6,639.2 | $ | 4,115.9 | $ | (7,661.6 | ) | $ | 6,327.6 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Assets | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 1.4 | $ | — | $ | 237.0 | $ | 9.2 | $ | — | $ | 247.6 | |||||||||||
Accounts receivable, net | — | — | 1,361.3 | 12.7 | — | 1,374.0 | |||||||||||||||||
Intra-entity receivables, net | 47.7 | — | — | 238.0 | (285.7 | ) | — | ||||||||||||||||
Other receivables | — | — | 51.1 | 0.4 | — | 51.5 | |||||||||||||||||
Other current assets | — | — | 86.5 | 0.5 | — | 87.0 | |||||||||||||||||
Deferred tax assets | — | — | 2.8 | 0.2 | — | 3.0 | |||||||||||||||||
Income taxes | — | — | 6.0 | 0.5 | — | 6.5 | |||||||||||||||||
Inventories | — | — | 1,434.5 | 53.5 | — | 1,488.0 | |||||||||||||||||
Total current assets | 49.1 | — | 3,179.2 | 315.0 | (285.7 | ) | 3,257.6 | ||||||||||||||||
Non-current assets: | |||||||||||||||||||||||
Property, plant and equipment, net | — | — | 481.5 | 6.1 | — | 487.6 | |||||||||||||||||
Goodwill | — | — | 23.2 | 3.6 | — | 26.8 | |||||||||||||||||
Investment in subsidiaries | 2,526.3 | — | 1,452.8 | 1,143.2 | (5,122.3 | ) | — | ||||||||||||||||
Intra-entity receivables, net | — | — | — | 1,098.0 | (1,098.0 | ) | — | ||||||||||||||||
Other assets | — | — | 87.2 | — | — | 87.2 | |||||||||||||||||
Deferred tax assets | — | — | 113.6 | 0.1 | — | 113.7 | |||||||||||||||||
Retirement benefit asset | — | — | 56.3 | — | — | 56.3 | |||||||||||||||||
Total assets | $ | 2,575.4 | $ | — | $ | 5,393.8 | $ | 2,566.0 | $ | (6,506.0 | ) | $ | 4,029.2 | ||||||||||
Liabilities and Shareholders’ equity | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Loans and overdrafts | $ | — | $ | — | $ | 19.3 | $ | — | $ | — | $ | 19.3 | |||||||||||
Accounts payable | — | — | 160.5 | 2.4 | — | 162.9 | |||||||||||||||||
Intra-entity payables, net | — | — | 285.7 | — | (285.7 | ) | — | ||||||||||||||||
Accrued expenses and other current liabilities | 12.3 | — | 313.1 | 3.1 | — | 328.5 | |||||||||||||||||
Deferred revenue | — | — | 173.0 | — | — | 173.0 | |||||||||||||||||
Deferred tax liabilities | — | — | 113.1 | — | — | 113.1 | |||||||||||||||||
Income taxes | — | — | 101.3 | 2.6 | — | 103.9 | |||||||||||||||||
Total current liabilities | 12.3 | — | 1,166.0 | 8.1 | (285.7 | ) | 900.7 | ||||||||||||||||
Non-current liabilities: | |||||||||||||||||||||||
Long-term debt | — | — | — | — | — | — | |||||||||||||||||
Intra-entity payables, net | — | — | 1,098.0 | — | (1,098.0 | ) | — | ||||||||||||||||
Other liabilities | — | — | 118.5 | 3.2 | — | 121.7 | |||||||||||||||||
Deferred revenue | — | — | 443.7 | — | — | 443.7 | |||||||||||||||||
Total liabilities | 12.3 | — | 2,826.2 | 11.3 | (1,383.7 | ) | 1,466.1 | ||||||||||||||||
Total shareholders’ equity | 2,563.1 | — | 2,567.6 | 2,554.7 | (5,122.3 | ) | 2,563.1 | ||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,575.4 | $ | — | $ | 5,393.8 | $ | 2,566.0 | $ | (6,506.0 | ) | $ | 4,029.2 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net cash provided by (used in) operating activities | $ | 150.5 | $ | 2.2 | $ | 166.6 | $ | 116.7 | $ | (153.0 | ) | $ | 283.0 | ||||||||||
Investing activities | |||||||||||||||||||||||
Purchase of property, plant and equipment | — | — | (219.8 | ) | (0.4 | ) | — | (220.2 | ) | ||||||||||||||
Investment in subsidiaries | — | — | (18.9 | ) | (10.0 | ) | 28.9 | — | |||||||||||||||
Purchase of available-for-sale securities | — | — | — | (5.7 | ) | — | (5.7 | ) | |||||||||||||||
Proceeds from available-for-sale securities | — | — | — | 2.5 | — | 2.5 | |||||||||||||||||
Acquisition of Zale Corporation, net of cash acquired | — | — | (1,431.1 | ) | 1.9 | — | (1,429.2 | ) | |||||||||||||||
Net cash (used in) provided by investing activities | — | — | (1,669.8 | ) | (11.7 | ) | 28.9 | (1,652.6 | ) | ||||||||||||||
Financing activities | |||||||||||||||||||||||
Dividends paid | (55.3 | ) | — | — | — | — | (55.3 | ) | |||||||||||||||
Intra-entity dividends paid | — | — | (953.0 | ) | — | 953.0 | — | ||||||||||||||||
Proceeds from issuance of common shares | 6.1 | 8.9 | 10.0 | 810.0 | (828.9 | ) | 6.1 | ||||||||||||||||
Excess tax benefit from exercise of share awards | — | — | 11.8 | — | — | 11.8 | |||||||||||||||||
Proceeds from long-term debt | — | 398.4 | 400.0 | 1,941.9 | — | 2,740.3 | |||||||||||||||||
Repayment of long-term debt | — | — | (10.0 | ) | (1,341.9 | ) | — | (1,351.9 | ) | ||||||||||||||
Payment of debt issuance costs | — | (7.0 | ) | (10.7 | ) | (2.8 | ) | — | (20.5 | ) | |||||||||||||
Repurchase of common shares | (29.8 | ) | — | — | — | — | (29.8 | ) | |||||||||||||||
Net settlement of equity based awards | (18.4 | ) | — | — | — | — | (18.4 | ) | |||||||||||||||
Capital lease payments | — | — | (0.8 | ) | — | — | (0.8 | ) | |||||||||||||||
Proceeds from (repayment of) short-term borrowings | — | — | 39.4 | — | — | 39.4 | |||||||||||||||||
Intra-entity activity, net | (52.4 | ) | (402.4 | ) | 1,957.9 | (1,503.1 | ) | — | — | ||||||||||||||
Net cash (used in) provided by financing activities | (149.8 | ) | (2.1 | ) | 1,444.6 | (95.9 | ) | 124.1 | 1,320.9 | ||||||||||||||
Cash and cash equivalents at beginning of period | 1.4 | — | 237.0 | 9.2 | — | 247.6 | |||||||||||||||||
(Decrease) increase in cash and cash equivalents | 0.7 | 0.1 | (58.6 | ) | 9.1 | — | (48.7 | ) | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (11.9 | ) | 6.6 | — | (5.3 | ) | |||||||||||||||
Cash and cash equivalents at end of period | $ | 2.1 | $ | 0.1 | $ | 166.5 | $ | 24.9 | $ | — | $ | 193.6 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net cash provided by (used in) operating activities | $ | 137.3 | $ | — | $ | 421.3 | $ | 286.9 | $ | (610.0 | ) | $ | 235.5 | ||||||||||
Investing activities | |||||||||||||||||||||||
Purchase of property, plant and equipment | — | — | (152.6 | ) | (0.1 | ) | — | (152.7 | ) | ||||||||||||||
Investment in subsidiaries | (0.3 | ) | — | (11.0 | ) | (11.0 | ) | 22.3 | — | ||||||||||||||
Acquisition of Ultra Stores, Inc. | — | — | 1.4 | — | — | 1.4 | |||||||||||||||||
Acquisition of diamond polishing factory | — | — | — | (9.1 | ) | — | (9.1 | ) | |||||||||||||||
Net cash used in investing activities | (0.3 | ) | — | (162.2 | ) | (20.2 | ) | 22.3 | (160.4 | ) | |||||||||||||
Financing activities | |||||||||||||||||||||||
Dividends paid | (46.0 | ) | — | — | — | — | (46.0 | ) | |||||||||||||||
Intra-entity dividends paid | — | — | (104.4 | ) | (35.6 | ) | 140.0 | — | |||||||||||||||
Proceeds from issuance of common shares | 9.3 | — | — | 22.3 | (22.3 | ) | 9.3 | ||||||||||||||||
Excess tax benefit from exercise of share awards | — | — | 6.5 | — | — | 6.5 | |||||||||||||||||
Repurchase of common shares | (104.7 | ) | — | — | — | — | (104.7 | ) | |||||||||||||||
Net settlement of equity based awards | (9.2 | ) | — | — | — | — | (9.2 | ) | |||||||||||||||
Proceeds from short-term borrowings | — | — | 19.3 | — | — | 19.3 | |||||||||||||||||
Intra-entity activity, net | 1.6 | — | (214.6 | ) | (257.0 | ) | 470.0 | — | |||||||||||||||
Net cash used in financing activities | (149.0 | ) | — | (293.2 | ) | (270.3 | ) | 587.7 | (124.8 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | 13.4 | — | 271.3 | 16.3 | — | 301.0 | |||||||||||||||||
Decrease in cash and cash equivalents | (12.0 | ) | — | (34.1 | ) | (3.6 | ) | — | (49.7 | ) | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (0.2 | ) | (3.5 | ) | — | (3.7 | ) | ||||||||||||||
Cash and cash equivalents at end of period | $ | 1.4 | $ | — | $ | 237.0 | $ | 9.2 | $ | — | $ | 247.6 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net cash provided by (used in) operating activities | $ | 305.7 | $ | — | $ | 512.5 | $ | 280.5 | $ | (786.0 | ) | $ | 312.7 | ||||||||||
Investing activities | |||||||||||||||||||||||
Purchase of property, plant and equipment | — | — | (134.0 | ) | (0.2 | ) | — | (134.2 | ) | ||||||||||||||
Acquisition of Ultra Stores, Inc. | — | — | (56.7 | ) | — | — | (56.7 | ) | |||||||||||||||
Net cash used in investing activities | — | — | (190.7 | ) | (0.2 | ) | — | (190.9 | ) | ||||||||||||||
Financing activities | |||||||||||||||||||||||
Dividends paid | (38.4 | ) | — | — | — | — | (38.4 | ) | |||||||||||||||
Intra-entity dividends paid | — | — | (520.1 | ) | (265.9 | ) | 786.0 | — | |||||||||||||||
Proceeds from issuance of common shares | 21.6 | — | — | — | — | 21.6 | |||||||||||||||||
Excess tax benefit from exercise of share awards | — | — | 7.4 | — | — | 7.4 | |||||||||||||||||
Repurchase of common shares | (287.2 | ) | — | — | — | — | (287.2 | ) | |||||||||||||||
Net settlement of equity based awards | (11.5 | ) | — | — | — | — | (11.5 | ) | |||||||||||||||
Intra-entity activity, net | 17.1 | — | (9.9 | ) | (7.2 | ) | — | — | |||||||||||||||
Net cash used in financing activities | (298.4 | ) | — | (522.6 | ) | (273.1 | ) | 786.0 | (308.1 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | 6.1 | — | 471.6 | 9.1 | — | 486.8 | |||||||||||||||||
Decrease in cash and cash equivalents | 7.3 | — | (200.8 | ) | 7.2 | — | (186.3 | ) | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | 0.5 | — | — | 0.5 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | 13.4 | $ | — | $ | 271.3 | $ | 16.3 | $ | — | $ | 301.0 |
|
Buildings | 30 – 40 years when land is owned or the remaining term of lease, not to exceed 40 years | |
Leasehold improvements | Remaining term of lease, not to exceed 10 years | |
Furniture and fixtures | Ranging from 3 – 10 years | |
Equipment, including software | Ranging from 3 – 5 years |
|
(in millions) | Fiscal 2015 | Fiscal 2014 | Fiscal 2013 | |||||||||
Wages and salaries | $ | 1,095.6 | $ | 753.3 | $ | 713.4 | ||||||
Payroll taxes | 91.8 | 65.8 | 62.6 | |||||||||
Employee benefit plans expense | 9.6 | 10.2 | 12.9 | |||||||||
Share-based compensation expense | 12.1 | 14.4 | 15.7 | |||||||||
Total compensation and benefits | $ | 1,209.1 | $ | 843.7 | $ | 804.6 |
(in millions) | January 31, 2015 | February 1, 2014 | ||||||
Cash and cash equivalents held in money markets and other accounts | $ | 153.5 | $ | 225.3 | ||||
Cash equivalents from third-party credit card issuers | 38.2 | 21.1 | ||||||
Cash on hand | 1.9 | 1.2 | ||||||
Total cash and cash equivalents | $ | 193.6 | $ | 247.6 |
Buildings | 30 – 40 years when land is owned or the remaining term of lease, not to exceed 40 years | |
Leasehold improvements | Remaining term of lease, not to exceed 10 years | |
Furniture and fixtures | Ranging from 3 – 10 years | |
Equipment, including software | Ranging from 3 – 5 years |
(in millions) | January 31, 2015 | February 1, 2014 | |||||
Land and buildings | $ | 36.0 | $ | 37.2 | |||
Leasehold improvements | 556.4 | 461.4 | |||||
Furniture and fixtures | 596.6 | 537.3 | |||||
Equipment, including software | 278.6 | 221.1 | |||||
Construction in progress | 50.4 | 18.7 | |||||
Total | $ | 1,518.0 | $ | 1,275.7 | |||
Accumulated depreciation and amortization | (852.1 | ) | (788.1 | ) | |||
Property, plant and equipment, net | $ | 665.9 | $ | 487.6 |
|
(in millions, except per share amounts) | Amount | ||
Cash consideration paid to Zale Corporation shareholders ($21 per share) | $ | 910.2 | |
Cash consideration paid for settlement of Zale Corporation stock options, restricted share awards and long term incentive plan awards | 69.6 | ||
Cash paid to extinguish Zale Corporation outstanding debt as of May 29, 2014 | 478.2 | ||
Total consideration transferred | $ | 1,458.0 |
(in millions) | Initial fair values | Final fair values | Variance | ||||||||
Cash and cash equivalents | $ | 28.8 | $ | 28.8 | $ | — | |||||
Inventories | 855.6 | 856.7 | 1.1 | ||||||||
Other current assets | 22.5 | 22.4 | (0.1 | ) | |||||||
Property, plant and equipment | 104.2 | 103.6 | (0.6 | ) | |||||||
Intangible assets: | |||||||||||
Trade names | 420.0 | 417.0 | (3.0 | ) | |||||||
Favorable leases | 50.2 | 50.2 | — | ||||||||
Deferred tax assets | 126.3 | 132.8 | 6.5 | ||||||||
Other assets | 25.4 | 25.4 | — | ||||||||
Current liabilities(1) | (202.8 | ) | (206.3 | ) | (3.5 | ) | |||||
Deferred revenue | (93.0 | ) | (93.3 | ) | (0.3 | ) | |||||
Unfavorable leases | (50.5 | ) | (50.5 | ) | — | ||||||
Unfavorable contracts | (65.6 | ) | (65.6 | ) | — | ||||||
Deferred tax liabilities | (263.6 | ) | (234.0 | ) | 29.6 | ||||||
Other liabilities | (24.6 | ) | (28.6 | ) | (4.0 | ) | |||||
Fair value of net assets acquired | 932.9 | 958.6 | 25.7 | ||||||||
Goodwill | 525.1 | 499.4 | (25.7 | ) | |||||||
Total consideration transferred | $ | 1,458.0 | $ | 1,458.0 | $ | — |
(in millions) | May 29, 2014 to January 31, 2015 | ||
Sales | $ | 1,215.6 | |
Operating loss | $ | (8.2 | ) |
Net loss | $ | (6.5 | ) |
(in millions, except per share amounts) | Fiscal 2015 | Fiscal 2014 | ||||||
Pro forma sales | $ | 6,325.1 | $ | 6,039.9 | ||||
Pro forma net income | $ | 462.1 | $ | 361.9 | ||||
Pro forma earnings per share – basic | $ | 5.78 | $ | 4.51 | ||||
Pro forma earnings per share – diluted | $ | 5.76 | $ | 4.48 |
|
(in millions) | Fiscal 2015 | Fiscal 2014 | Fiscal 2013 | ||||||||
Sales: | |||||||||||
Sterling Jewelers | $ | 3,765.0 | $ | 3,517.6 | $ | 3,273.9 | |||||
Zale Jewelry(1) | 1,068.7 | n/a | n/a | ||||||||
Piercing Pagoda | 146.9 | n/a | n/a | ||||||||
UK Jewelry | 743.6 | 685.6 | 709.5 | ||||||||
Other | 12.1 | 6.0 | — | ||||||||
Total sales | $ | 5,736.3 | $ | 4,209.2 | $ | 3,983.4 | |||||
Operating income (loss): | |||||||||||
Sterling Jewelers | $ | 624.3 | $ | 553.2 | $ | 547.8 | |||||
Zale Jewelry(2) | (1.9 | ) | n/a | n/a | |||||||
Piercing Pagoda(3) | (6.3 | ) | n/a | n/a | |||||||
UK Jewelry | 52.2 | 42.4 | 40.0 | ||||||||
Other(4) | $ | (91.7 | ) | (25.1 | ) | (27.3 | ) | ||||
Total operating income | $ | 576.6 | $ | 570.5 | $ | 560.5 | |||||
Depreciation and amortization: | |||||||||||
Sterling Jewelers | $ | 95.7 | $ | 88.8 | $ | 75.9 | |||||
Zale Jewelry | 29.4 | n/a | n/a | ||||||||
Piercing Pagoda | 1.6 | n/a | n/a | ||||||||
UK Jewelry | 22.1 | 21.4 | 23.5 | ||||||||
Other | 0.9 | — | — | ||||||||
Total depreciation and amortization | $ | 149.7 | $ | 110.2 | $ | 99.4 | |||||
Capital additions: | |||||||||||
Sterling Jewelers | $ | 157.6 | $ | 134.2 | $ | 110.9 | |||||
Zale Jewelry | 35.1 | n/a | n/a | ||||||||
Piercing Pagoda | 6.9 | n/a | n/a | ||||||||
UK Jewelry | 20.2 | 18.4 | 23.1 | ||||||||
Other | 0.4 | 0.1 | 0.2 | ||||||||
Total capital additions | $ | 220.2 | $ | 152.7 | $ | 134.2 |
(2) | Includes net operating loss of $35.1 million related to purchase accounting adjustments associated with the acquisition of Zale Corporation for the year ended January 31, 2015. See Note 3 for additional information. |
(3) | Includes net operating loss of $10.8 million related to purchase accounting adjustments associated with the acquisition of Zale Corporation for the year ended January 31, 2015. See Note 3 for additional information. |
(4) | Includes $59.8 million of transaction-related and integration expense, as well as severance related costs. Transaction costs include expenses associated with advisor fees for legal, tax, accounting and consulting expenses for the year ended January 31, 2015. |
(in millions) | January 31, 2015 | February 1, 2014 | February 2, 2013 | ||||||||
Total assets: | |||||||||||
Sterling Jewelers | $ | 3,647.3 | $ | 3,311.0 | $ | 2,979.2 | |||||
Zale Jewelry | 1,903.6 | n/a | n/a | ||||||||
Piercing Pagoda | 132.8 | n/a | n/a | ||||||||
UK Jewelry | 413.5 | 484.6 | 449.9 | ||||||||
Other | 230.4 | 233.6 | 289.9 | ||||||||
Total assets | $ | 6,327.6 | $ | 4,029.2 | $ | 3,719.0 | |||||
Total long-lived assets: | |||||||||||
Sterling Jewelers | $ | 488.3 | $ | 423.6 | $ | 377.5 | |||||
Zale Jewelry | 1,014.4 | n/a | n/a | ||||||||
Piercing Pagoda | 46.5 | n/a | n/a | ||||||||
UK Jewelry | 73.8 | 81.1 | 76.8 | ||||||||
Other | 9.2 | 9.7 | 0.7 | ||||||||
Total long-lived assets | $ | 1,632.2 | $ | 514.4 | $ | 455.0 | |||||
Total liabilities: | |||||||||||
Sterling Jewelers | $ | 2,022.9 | $ | 1,299.3 | $ | 1,243.4 | |||||
Zale Jewelry | 514.6 | n/a | n/a | ||||||||
Piercing Pagoda | 47.1 | n/a | n/a | ||||||||
UK Jewelry | 128.1 | 139.3 | 116.9 | ||||||||
Other | 804.5 | 27.5 | 28.8 | ||||||||
Total liabilities | $ | 3,517.2 | $ | 1,466.1 | $ | 1,389.1 | |||||
Sales by product: | |||||||||||
Diamonds and diamond jewelry | $ | 3,450.6 | $ | 2,552.1 | $ | 2,410.7 | |||||
Gold, silver jewelry, other products and services | 1,784.5 | 1,236.9 | 1,116.5 | ||||||||
Watches | 501.2 | 420.2 | 456.2 | ||||||||
Total sales | $ | 5,736.3 | $ | 4,209.2 | $ | 3,983.4 |
|
Pension plan | |||||||||||||||||||
(in millions) | Foreign currency translation | Gains (losses) on cash flow hedges | Actuarial gains (losses) | Prior service credit (cost) | Accumulated other comprehensive (loss) income | ||||||||||||||
Balance at January 28, 2012 | $ | (148.9 | ) | $ | 22.1 | $ | (51.5 | ) | $ | 19.1 | $ | (159.2 | ) | ||||||
OCI before reclassifications | (0.5 | ) | (6.7 | ) | 4.7 | (0.8 | ) | (3.3 | ) | ||||||||||
Amounts reclassified from AOCI | — | (14.4 | ) | 2.4 | (1.2 | ) | (13.2 | ) | |||||||||||
Net current-period OCI | (0.5 | ) | (21.1 | ) | 7.1 | (2.0 | ) | (16.5 | ) | ||||||||||
Balance at February 2, 2013 | $ | (149.4 | ) | $ | 1.0 | $ | (44.4 | ) | $ | 17.1 | $ | (175.7 | ) | ||||||
OCI before reclassifications | 12.4 | (22.0 | ) | 0.2 | (0.7 | ) | (10.1 | ) | |||||||||||
Amounts reclassified from AOCI | — | 6.7 | 1.7 | (1.1 | ) | 7.3 | |||||||||||||
Net current-period OCI | 12.4 | (15.3 | ) | 1.9 | (1.8 | ) | (2.8 | ) | |||||||||||
Balance at February 1, 2014 | $ | (137.0 | ) | $ | (14.3 | ) | $ | (42.5 | ) | $ | 15.3 | $ | (178.5 | ) | |||||
OCI before reclassifications | (60.6 | ) | 6.2 | (15.8 | ) | (0.7 | ) | (70.9 | ) | ||||||||||
Amounts reclassified from AOCI | — | 12.5 | 1.6 | (1.3 | ) | 12.8 | |||||||||||||
Net current-period OCI | (60.6 | ) | 18.7 | (14.2 | ) | (2.0 | ) | (58.1 | ) | ||||||||||
Balance at January 31, 2015 | $ | (197.6 | ) | $ | 4.4 | $ | (56.7 | ) | $ | 13.3 | $ | (236.6 | ) |
Fiscal 2015 | Fiscal 2014 | Fiscal 2013 | |||||||||||||
Reclassification activity by individual AOCI component: (in millions) | Amounts reclassified from AOCI | Amounts reclassified from AOCI | Amounts reclassified from AOCI | Income statement caption | |||||||||||
(Gains) losses on cash flow hedges: | |||||||||||||||
Foreign currency contracts | $ | 1.3 | $ | (0.9 | ) | $ | (0.4 | ) | Cost of sales (see Note 16) | ||||||
Commodity contracts | 17.3 | 12.0 | (22.0 | ) | Cost of sales (see Note 16) | ||||||||||
Total before income tax | 18.6 | 11.1 | (22.4 | ) | |||||||||||
Income taxes | (6.1 | ) | (4.4 | ) | 8.0 | ||||||||||
Net of tax | 12.5 | 6.7 | (14.4 | ) | |||||||||||
Defined benefit pension plan items: | |||||||||||||||
Amortization of unrecognized net prior service credit | (1.7 | ) | (1.5 | ) | (1.6 | ) | Selling, general and administrative expenses(1) | ||||||||
Amortization of unrecognized actuarial loss | 2.0 | 2.3 | 3.2 | Selling, general and administrative expenses(1) | |||||||||||
Total before income tax | 0.3 | 0.8 | 1.6 | ||||||||||||
Income taxes | — | (0.2 | ) | (0.4 | ) | ||||||||||
Net of tax | 0.3 | 0.6 | 1.2 | ||||||||||||
Total reclassifications, net of tax | $ | 12.8 | $ | 7.3 | $ | (13.2 | ) |
(1) | These items are included in the computation of net periodic pension benefit (cost). See Note 18 for additional information. |
|
(in millions) | Fiscal 2015 | Fiscal 2014 | Fiscal 2013 | ||||||||
Income before income taxes: | |||||||||||
– US | $ | 380.8 | $ | 493.7 | $ | 494.3 | |||||
– Foreign | 159.8 | 72.8 | 62.6 | ||||||||
Total income before income taxes | $ | 540.6 | $ | 566.5 | $ | 556.9 | |||||
Current taxation: | |||||||||||
– US | $ | 199.5 | $ | 211.8 | $ | 186.6 | |||||
– Foreign | 7.8 | 7.1 | 6.1 | ||||||||
Deferred taxation: | |||||||||||
– US | (47.9 | ) | (22.8 | ) | 3.1 | ||||||
– Foreign | (0.1 | ) | 2.4 | 1.2 | |||||||
Total income taxes | $ | 159.3 | $ | 198.5 | $ | 197.0 |
Fiscal 2015 | Fiscal 2014 | Fiscal 2013 | ||||||
US federal income tax rates | 35.0 | % | 35.0 | % | 35.0 | % | ||
US state income taxes | 2.1 | % | 2.5 | % | 2.7 | % | ||
Differences between US federal and foreign statutory income tax rates | (0.8 | )% | (0.9 | )% | (0.6 | )% | ||
Expenditures permanently disallowable for tax purposes, net of permanent tax benefits | 0.8 | % | 0.6 | % | 0.8 | % | ||
Disallowable transaction costs | 0.7 | % | — | % | — | % | ||
Impact of global reinsurance arrangements | (1.5 | )% | (0.2 | )% | — | % | ||
Impact of global financing arrangements | (7.2 | )% | (1.9 | )% | (2.1 | )% | ||
Other items | 0.4 | % | (0.1 | )% | (0.4 | )% | ||
Effective tax rate | 29.5 | % | 35.0 | % | 35.4 | % |
January 31, 2015 | February 1, 2014 | ||||||||||||||||||||||
(in millions) | Assets | (Liabilities) | Total | Assets | (Liabilities) | Total | |||||||||||||||||
Intangible assets | $ | — | $ | (133.0 | ) | $ | (133.0 | ) | $ | — | $ | — | $ | — | |||||||||
US property, plant and equipment | — | (50.7 | ) | (50.7 | ) | — | (70.1 | ) | (70.1 | ) | |||||||||||||
Foreign property, plant and equipment | 7.0 | — | 7.0 | 7.0 | — | 7.0 | |||||||||||||||||
Inventory valuation | — | (256.4 | ) | (256.4 | ) | — | (169.2 | ) | (169.2 | ) | |||||||||||||
Allowances for doubtful accounts | 46.0 | — | 46.0 | 39.7 | — | 39.7 | |||||||||||||||||
Revenue deferral | 172.7 | — | 172.7 | 134.3 | — | 134.3 | |||||||||||||||||
Derivative instruments | — | (2.2 | ) | (2.2 | ) | 6.9 | — | 6.9 | |||||||||||||||
Straight-line lease payments | 31.8 | — | 31.8 | 27.5 | — | 27.5 | |||||||||||||||||
Deferred compensation | 11.1 | — | 11.1 | 9.9 | — | 9.9 | |||||||||||||||||
Retirement benefit obligations | — | (7.5 | ) | (7.5 | ) | — | (12.0 | ) | (12.0 | ) | |||||||||||||
Share-based compensation | 5.8 | — | 5.8 | 10.3 | — | 10.3 | |||||||||||||||||
Other temporary differences | 49.8 | — | 49.8 | 20.3 | — | 20.3 | |||||||||||||||||
Net operating losses and foreign tax credits | 83.7 | — | 83.7 | — | — | — | |||||||||||||||||
Value of foreign capital and trading losses | 15.0 | — | 15.0 | 15.8 | — | 15.8 | |||||||||||||||||
Total gross deferred tax assets (liabilities) | $ | 422.9 | $ | (449.8 | ) | $ | (26.9 | ) | $ | 271.7 | $ | (251.3 | ) | $ | 20.4 | ||||||||
Valuation allowance | (24.3 | ) | — | (24.3 | ) | (16.8 | ) | — | (16.8 | ) | |||||||||||||
Deferred tax assets (liabilities) | $ | 398.6 | $ | (449.8 | ) | $ | (51.2 | ) | $ | 254.9 | $ | (251.3 | ) | $ | 3.6 | ||||||||
Disclosed as: | |||||||||||||||||||||||
Current assets | $ | 4.5 | $ | 3.0 | |||||||||||||||||||
Current liabilities | (145.8 | ) | (113.1 | ) | |||||||||||||||||||
Non-current assets | 111.1 | 113.7 | |||||||||||||||||||||
Non-current liabilities | (21.0 | ) | — | ||||||||||||||||||||
Deferred tax assets (liabilities) | $ | (51.2 | ) | $ | 3.6 |
(in millions) | Fiscal 2015 | Fiscal 2014 | Fiscal 2013 | ||||||||
Balance at beginning of period | $ | 4.6 | $ | 4.5 | $ | 4.8 | |||||
Acquired existing unrecognized tax benefits | 4.3 | — | — | ||||||||
Increases related to current year tax positions | 3.5 | 0.4 | 0.2 | ||||||||
Prior year tax positions: | |||||||||||
Increases | — | 0.2 | — | ||||||||
Decreases | (0.1 | ) | — | — | |||||||
Cash settlements | — | (0.5 | ) | — | |||||||
Lapse of statute of limitations | (0.4 | ) | — | (0.5 | ) | ||||||
Difference on foreign currency translation | (0.5 | ) | — | — | |||||||
Balance at end of period | $ | 11.4 | $ | 4.6 | $ | 4.5 |
|
(in millions) | Fiscal 2015 | Fiscal 2014 | Fiscal 2013 | ||||||||
Interest income from in-house customer finance programs | $ | 217.9 | $ | 186.4 | $ | 159.7 | |||||
Other | (2.6 | ) | 0.3 | 1.7 | |||||||
Other operating income, net | $ | 215.3 | $ | 186.7 | $ | 161.4 |
|
(in millions) | January 31, 2015 | February 1, 2014 | |||||
Accounts receivable by portfolio segment, net: | |||||||
Sterling Jewelers customer in-house finance receivables | $ | 1,552.9 | $ | 1,356.0 | |||
Other accounts receivable | 14.7 | 18.0 | |||||
Total accounts receivable, net | $ | 1,567.6 | $ | 1,374.0 |
(in millions) | Fiscal 2015 | Fiscal 2014 | Fiscal 2013 | ||||||||
Beginning balance: | $ | (97.8 | ) | $ | (87.7 | ) | $ | (78.1 | ) | ||
Charge-offs | 144.7 | 128.2 | 112.8 | ||||||||
Recoveries | 27.5 | 26.0 | 21.8 | ||||||||
Provision | (187.5 | ) | (164.3 | ) | (144.2 | ) | |||||
Ending balance | $ | (113.1 | ) | $ | (97.8 | ) | $ | (87.7 | ) | ||
Ending receivable balance evaluated for impairment | 1,666.0 | 1,453.8 | 1,280.6 | ||||||||
Sterling Jewelers customer in-house finance receivables, net | $ | 1,552.9 | $ | 1,356.0 | $ | 1,192.9 |
January 31, 2015 | February 1, 2014 | February 2, 2013 | |||||||||||||||||||||
(in millions) | Gross | Valuation allowance | Gross | Valuation allowance | Gross | Valuation allowance | |||||||||||||||||
Performing: | |||||||||||||||||||||||
Current, aged 0 – 30 days | $ | 1,332.2 | $ | (41.1 | ) | $ | 1,170.4 | $ | (36.3 | ) | $ | 1,030.3 | $ | (33.8 | ) | ||||||||
Past due, aged 31 – 90 days | 271.1 | (9.3 | ) | 229.9 | (8.0 | ) | 203.9 | (7.5 | ) | ||||||||||||||
Non Performing: | |||||||||||||||||||||||
Past due, aged more than 90 days | 62.7 | (62.7 | ) | 53.5 | (53.5 | ) | 46.4 | (46.4 | ) | ||||||||||||||
$ | 1,666.0 | $ | (113.1 | ) | $ | 1,453.8 | $ | (97.8 | ) | $ | 1,280.6 | $ | (87.7 | ) |
January 31, 2015 | February 1, 2014 | February 2, 2013 | |||||||||||||||
(as a percentage of the ending receivable balance) | Gross | Valuation allowance | Gross | Valuation allowance | Gross | Valuation allowance | |||||||||||
Performing | 96.2 | % | 3.1 | % | 96.3 | % | 3.2 | % | 96.4 | % | 3.3 | % | |||||
Non Performing | 3.8 | % | 100.0 | % | 3.7 | % | 100.0 | % | 3.6 | % | 100.0 | % | |||||
100.0 | % | 6.8 | % | 100.0 | % | 6.7 | % | 100.0 | % | 6.8 | % |
|
(in millions) | January 31, 2015 | February 1, 2014 | |||||
Raw materials | $ | 75.2 | $ | 41.8 | |||
Finished goods | 2,363.8 | 1,446.2 | |||||
Total inventories | $ | 2,439.0 | $ | 1,488.0 |
(in millions) | Balance at beginning of period | Charged to profit | Utilized(1) | Balance at end of period | |||||||||||
Fiscal 2013 | $ | 29.3 | $ | 23.6 | $ | (29.5 | ) | $ | 23.4 | ||||||
Fiscal 2014 | 23.4 | 33.3 | (40.4 | ) | 16.3 | ||||||||||
Fiscal 2015 | $ | 16.3 | $ | 44.6 | $ | (32.5 | ) | $ | 28.4 |
|
Buildings | 30 – 40 years when land is owned or the remaining term of lease, not to exceed 40 years | |
Leasehold improvements | Remaining term of lease, not to exceed 10 years | |
Furniture and fixtures | Ranging from 3 – 10 years | |
Equipment, including software | Ranging from 3 – 5 years |
(in millions) | January 31, 2015 | February 1, 2014 | |||||
Land and buildings | $ | 36.0 | $ | 37.2 | |||
Leasehold improvements | 556.4 | 461.4 | |||||
Furniture and fixtures | 596.6 | 537.3 | |||||
Equipment, including software | 278.6 | 221.1 | |||||
Construction in progress | 50.4 | 18.7 | |||||
Total | $ | 1,518.0 | $ | 1,275.7 | |||
Accumulated depreciation and amortization | (852.1 | ) | (788.1 | ) | |||
Property, plant and equipment, net | $ | 665.9 | $ | 487.6 |
|
(in millions) | Unfavorable leases | Unfavorable contracts | Total | ||||||||
2016 | $ | 14.5 | $ | 15.6 | $ | 30.1 | |||||
2017 | 14.4 | 5.4 | 19.8 | ||||||||
2018 | 7.7 | 5.4 | 13.1 | ||||||||
2019 | 2.2 | 5.4 | 7.6 | ||||||||
2020 | 0.2 | 5.4 | 5.6 | ||||||||
Thereafter | — | 14.6 | 14.6 | ||||||||
Total | $ | 39.0 | $ | 51.8 | $ | 90.8 |
(in millions) | Sterling Jewelers | Zale Jewelry | Piercing Pagoda | UK Jewelry | Other | Total | |||||||||||||||||
Balance at February 2, 2013 | $ | 24.6 | $ | — | $ | — | $ | — | $ | — | $ | 24.6 | |||||||||||
Acquisitions | (1.4 | ) | — | — | — | 3.6 | 2.2 | ||||||||||||||||
Balance at February 1, 2014 | 23.2 | — | — | — | 3.6 | 26.8 | |||||||||||||||||
Acquisitions | — | 492.4 | — | — | — | 492.4 | |||||||||||||||||
Balance at January 31, 2015 | $ | 23.2 | $ | 492.4 | $ | — | $ | — | $ | 3.6 | $ | 519.2 |
January 31, 2015 | |||||||||||||
(in millions) | Balance sheet location | Gross carrying amount | Accumulated amortization | Net carrying amount | |||||||||
Definite-lived intangible assets: | |||||||||||||
Trade names | Intangible assets, net | $ | 1.5 | $ | (0.2 | ) | $ | 1.3 | |||||
Favorable leases | Intangible assets, net | 48.1 | (9.1 | ) | 39.0 | ||||||||
Total definite-lived intangible assets | 49.6 | (9.3 | ) | 40.3 | |||||||||
Indefinite-lived trade names | Intangible assets, net | 406.8 | — | 406.8 | |||||||||
Total intangible assets, net | $ | 456.4 | $ | (9.3 | ) | $ | 447.1 | ||||||
Definite-lived intangible liabilities: | |||||||||||||
Unfavorable leases | Other liabilities | $ | (48.7 | ) | $ | 9.7 | $ | (39.0 | ) | ||||
Unfavorable contracts | Other liabilities | $ | (65.6 | ) | $ | 13.8 | $ | (51.8 | ) | ||||
Total intangible liabilities, net | $ | (114.3 | ) | $ | 23.5 | $ | (90.8 | ) |
(in millions) | Trade names | Favorable leases | Total | ||||||||
2016 | $ | 0.3 | $ | 13.6 | $ | 13.9 | |||||
2017 | 0.3 | 13.6 | 13.9 | ||||||||
2018 | 0.3 | 9.1 | 9.4 | ||||||||
2019 | 0.2 | 2.5 | 2.7 | ||||||||
2020 | 0.1 | 0.2 | 0.3 | ||||||||
Thereafter | 0.1 | — | 0.1 | ||||||||
Total | $ | 1.3 | $ | 39.0 | $ | 40.3 |
|
(in millions) | January 31, 2015 | February 1, 2014 | |||||
Deferred extended service plan costs | $ | 69.7 | $ | 61.9 | |||
Investments | 25.2 | — | |||||
Other assets | 45.1 | 25.3 | |||||
Total other assets | $ | 140.0 | $ | 87.2 |
|
(in millions) | Cost | Fair Value | |||||
Less than one year | $ | 2.0 | $ | 1.9 | |||
Year two through year five | 11.2 | 11.1 | |||||
Year six through year ten | 8.4 | 8.7 | |||||
After ten years | 0.1 | 0.1 | |||||
Total investment in debt securities | $ | 21.7 | $ | 21.8 |
January 31, 2015 | |||||||||||
(in millions) | Cost | Unrealized Gain (Loss) | Fair Value | ||||||||
US Treasury securities | $ | 9.7 | $ | (0.1 | ) | $ | 9.6 | ||||
US government agency securities | 1.4 | — | 1.4 | ||||||||
Corporate bonds and notes | 10.6 | 0.2 | 10.8 | ||||||||
Corporate equity securities | 3.5 | (0.1 | ) | 3.4 | |||||||
Total investments | $ | 25.2 | $ | — | $ | 25.2 |
|
Fair value of derivative assets | |||||||||
(in millions) | Balance sheet location | January 31, 2015 | February 1, 2014 | ||||||
Derivatives designated as hedging instruments: | |||||||||
Foreign currency contracts | Other current assets | $ | 1.0 | $ | — | ||||
Foreign currency contracts | Other assets | — | — | ||||||
Commodity contracts | Other current assets | 6.3 | 0.8 | ||||||
Commodity contracts | Other assets | — | — | ||||||
7.3 | 0.8 | ||||||||
Derivatives not designated as hedging instruments: | |||||||||
Foreign currency contracts | Other current assets | 0.1 | 0.2 | ||||||
Total derivative assets | $ | 7.4 | $ | 1.0 |
Fair value of derivative liabilities | |||||||||
(in millions) | Balance sheet location | January 31, 2015 | February 1, 2014 | ||||||
Derivatives designated as hedging instruments: | |||||||||
Foreign currency contracts | Other current liabilities | $ | — | $ | (2.1 | ) | |||
Foreign currency contracts | Other liabilities | — | — | ||||||
Commodity contracts | Other current liabilities | — | (0.8 | ) | |||||
Commodity contracts | Other liabilities | — | — | ||||||
— | (2.9 | ) | |||||||
Derivatives not designated as hedging instruments: | |||||||||
Foreign currency contracts | Other current liabilities | — | — | ||||||
Total derivative liabilities | $ | — | $ | (2.9 | ) |
(in millions) | January 31, 2015 | February 1, 2014 | ||||||
Foreign currency contracts | $ | 0.9 | $ | (2.3 | ) | |||
Commodity contracts | 5.7 | (18.8 | ) | (1) | ||||
Total | $ | 6.6 | $ | (21.1 | ) | |||
(in millions) | Income statement caption | Fiscal 2015 | Fiscal 2014 | ||||||
(Losses) gains recorded in AOCI, beginning of period | $ | (2.3 | ) | $ | 1.3 | ||||
Current period gains (losses) recognized in OCI | 1.9 | (2.7 | ) | ||||||
Losses (gains) reclassified from AOCI to net (loss) income | Cost of sales | 1.3 | (0.9 | ) | |||||
Gains (losses) recorded in AOCI, end of period | $ | 0.9 | $ | (2.3 | ) |
(in millions) | Income statement caption | Fiscal 2015 | Fiscal 2014 | ||||||
(Losses) gains recorded in AOCI, beginning of period | $ | (18.8 | ) | $ | (0.5 | ) | |||
Current period gains (losses) recognized in OCI | 7.2 | (30.3 | ) | ||||||
Losses (gains) reclassified from AOCI to net (loss) income | Cost of sales | 17.3 | 12.0 | ||||||
Gains (losses) recorded in AOCI, end of period | $ | 5.7 | $ | (18.8 | ) |
Income statement caption | Amount of gain (loss) recognized in income | ||||||||
(in millions) | Fiscal 2015 | Fiscal 2014 | |||||||
Derivatives not designated as hedging instruments: | |||||||||
Foreign currency contracts | Other operating income, net | $ | 0.6 | $ | (5.5 | ) | |||
Total | $ | 0.6 | $ | (5.5 | ) |
|
January 31, 2015 | February 1, 2014 | ||||||||||||||||||||||
(in millions) | Carrying Value | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Carrying Value | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | |||||||||||||||||
Assets: | |||||||||||||||||||||||
US Treasury securities | $ | 9.6 | $ | 9.6 | $ | — | $ | — | $ | — | $ | — | |||||||||||
Corporate equity securities | 3.4 | 3.4 | — | — | — | — | |||||||||||||||||
Foreign currency contracts | 1.1 | — | 1.1 | 0.2 | — | 0.2 | |||||||||||||||||
Commodity contracts | 6.3 | — | 6.3 | 0.8 | — | 0.8 | |||||||||||||||||
US government agency securities | 1.4 | — | 1.4 | — | — | — | |||||||||||||||||
Corporate bonds and notes | 10.8 | — | 10.8 | — | — | — | |||||||||||||||||
Total Assets | $ | 32.6 | $ | 13.0 | $ | 19.6 | $ | 1.0 | $ | — | $ | 1.0 | |||||||||||
Liabilities: | |||||||||||||||||||||||
Foreign currency contracts | $ | — | $ | — | $ | — | $ | (2.1 | ) | $ | — | $ | (2.1 | ) | |||||||||
Commodity contracts | — | — | — | (0.8 | ) | — | (0.8 | ) | |||||||||||||||
Total Liabilities | $ | — | $ | — | $ | — | $ | (2.9 | ) | $ | — | $ | (2.9 | ) |
Fiscal 2015 | Fiscal 2014 | ||||||||||||||
(in millions) | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||
Outstanding debt: | |||||||||||||||
Senior notes (Level 2) | $ | 398.5 | $ | 415.3 | $ | — | $ | — | |||||||
Securitization facility (Level 2) | 600.0 | 600.0 | — | — | |||||||||||
Term loan (Level 2) | 390.0 | 390.0 | |||||||||||||
Capital lease obligations (Level 2) | 1.2 | 1.2 | — | — | |||||||||||
Total outstanding debt | $ | 1,389.7 | $ | 1,406.5 | $ | — | $ | — |
|
(in millions) | Fiscal 2015 | Fiscal 2014 | |||||
Change in UK Plan assets: | |||||||
Fair value at beginning of year | $ | 282.6 | $ | 261.1 | |||
Actual return on UK Plan assets | 43.9 | 13.1 | |||||
Employer contributions | 4.2 | 4.9 | |||||
Members’ contributions | 0.7 | 0.7 | |||||
Benefits paid | (10.2 | ) | (9.3 | ) | |||
Foreign currency changes | (25.4 | ) | 12.1 | ||||
Fair value at end of year | $ | 295.8 | $ | 282.6 |
(in millions) | Fiscal 2015 | Fiscal 2014 | |||||
Change in benefit obligation: | |||||||
Benefit obligation at beginning of year | $ | 226.3 | $ | 212.6 | |||
Service cost | 2.3 | 2.4 | |||||
Past service cost | 0.9 | 0.9 | |||||
Interest cost | 9.7 | 9.3 | |||||
Members’ contributions | 0.7 | 0.7 | |||||
Actuarial loss (gain) | 47.5 | (0.1 | ) | ||||
Benefits paid | (10.2 | ) | (9.3 | ) | |||
Foreign currency changes | (18.4 | ) | 9.8 | ||||
Benefit obligation at end of year | $ | 258.8 | $ | 226.3 | |||
Funded status at end of year: UK Plan assets less benefit obligation | $ | 37.0 | $ | 56.3 |
(in millions) | January 31, 2015 | February 1, 2014 | |||||
Amounts recognized in the balance sheet consist of: | |||||||
Non-current assets | $ | 37.0 | $ | 56.3 | |||
Non-current liabilities | — | — | |||||
Net asset recognized | $ | 37.0 | $ | 56.3 |
(in millions) | January 31, 2015 | February 1, 2014 | February 2, 2013 | ||||||||
Net actuarial loss | $ | (56.7 | ) | $ | (42.5 | ) | $ | (44.4 | ) | ||
Net prior service credit | 13.3 | 15.3 | 17.1 |
(in millions) | Fiscal 2015 | Fiscal 2014 | Fiscal 2013 | ||||||||
Components of net periodic pension cost: | |||||||||||
Service cost | $ | (2.3 | ) | $ | (2.4 | ) | $ | (3.6 | ) | ||
Interest cost | (9.7 | ) | (9.3 | ) | (9.5 | ) | |||||
Expected return on UK Plan assets | 14.7 | 13.0 | 11.5 | ||||||||
Amortization of unrecognized net prior service credit | 1.7 | 1.5 | 1.6 | ||||||||
Amortization of unrecognized actuarial loss | (2.0 | ) | (2.3 | ) | (3.2 | ) | |||||
Net periodic pension benefit (cost) | $ | 2.4 | $ | 0.5 | $ | (3.2 | ) | ||||
Other changes in assets and benefit obligations recognized in OCI | (21.0 | ) | 0.1 | 6.7 | |||||||
Total recognized in net periodic pension benefit (cost) and OCI | $ | (18.6 | ) | $ | 0.6 | $ | 3.5 |
January 31, 2015 | February 1, 2014 | ||||
Assumptions used to determine benefit obligations (at the end of the year): | |||||
Discount rate | 3.00 | % | 4.40 | % | |
Salary increases | 2.50 | % | 3.00 | % | |
Assumptions used to determine net periodic pension costs (at the start of the year): | |||||
Discount rate | 4.40 | % | 4.50 | % | |
Expected return on UK Plan assets | 5.25 | % | 5.00 | % | |
Salary increases | 3.00 | % | 3.20 | % |
(in millions) | |||
Balance as of February 2, 2013 | $ | 10.4 | |
Actual return on assets | 1.2 | ||
Balance as of February 1, 2014 | $ | 11.6 | |
Actual return on assets | 0.7 | ||
Balance as of January 31, 2015 | $ | 12.3 |
(in millions) | |||
Fiscal 2016 | $ | 9.0 | |
Fiscal 2017 | 9.4 | ||
Fiscal 2018 | 9.0 | ||
Fiscal 2019 | 10.4 | ||
Fiscal 2020 | 10.3 | ||
Thereafter | $ | 56.4 |
Fair value measurements as of January 31, 2015 | Fair value measurements as of February 1, 2014 | ||||||||||||||||||||||||||||||
(in millions) | Total | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant Unobservable inputs (Level 3) | Total | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | |||||||||||||||||||||||
Asset category: | |||||||||||||||||||||||||||||||
Diversified equity securities | $ | 23.6 | $ | 12.2 | $ | 11.4 | $ | — | $ | 41.0 | $ | 19.1 | $ | 21.9 | $ | — | |||||||||||||||
Diversified growth funds | 99.0 | 49.8 | 49.2 | — | 100.5 | 50.8 | 49.7 | — | |||||||||||||||||||||||
Fixed income – government bonds | 95.8 | — | 95.8 | — | 64.2 | — | 64.2 | — | |||||||||||||||||||||||
Fixed income – corporate bonds | 64.6 | — | 64.6 | — | 64.6 | — | 64.6 | — | |||||||||||||||||||||||
Property | 12.3 | — | — | 12.3 | 11.6 | — | — | 11.6 | |||||||||||||||||||||||
Cash | 0.5 | 0.5 | — | — | 0.7 | 0.7 | — | — | |||||||||||||||||||||||
Total | $ | 295.8 | $ | 62.5 | $ | 221.0 | $ | 12.3 | $ | 282.6 | $ | 70.6 | $ | 200.4 | $ | 11.6 |
Fair value measurements as of January 31, 2015 | Fair value measurements as of February 1, 2014 | ||||||||||||||||||||||
(in millions) | Total | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Total | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | |||||||||||||||||
Assets: | |||||||||||||||||||||||
Corporate-owned life insurance plans | $ | 9.0 | $ | — | $ | 9.0 | $ | 8.2 | $ | — | $ | 8.2 | |||||||||||
Money market funds | 20.8 | 20.8 | — | 16.3 | 16.3 | — | |||||||||||||||||
Total assets | $ | 29.8 | $ | 20.8 | $ | 9.0 | $ | 24.5 | $ | 16.3 | $ | 8.2 |
|
(in millions) | January 31, 2015 | February 1, 2014 | |||||
Current liabilities – loans and overdrafts: | |||||||
Revolving credit facility | $ | — | $ | — | |||
Current portion of senior unsecured term loan | 25.0 | — | |||||
Current portion of capital lease obligations | 0.9 | — | |||||
Bank overdrafts | 71.6 | 19.3 | |||||
Total loans and overdrafts | 97.5 | 19.3 | |||||
Long-term debt: | |||||||
Senior unsecured notes due 2024, net of unamortized discount | 398.5 | — | |||||
Securitization facility | 600.0 | — | |||||
Senior unsecured term loan | 365.0 | — | |||||
Capital lease obligations | 0.3 | — | |||||
Total long-term debt | $ | 1,363.8 | $ | — | |||
Total loans, overdrafts and long-term debt | $ | 1,461.3 | $ | 19.3 |
|
(in millions) | January 31, 2015 | February 1, 2014 | |||||
Accrued compensation | $ | 156.2 | $ | 81.3 | |||
Other liabilities | 37.9 | 50.1 | |||||
Other taxes | 43.0 | 31.7 | |||||
Payroll taxes | 11.6 | 8.0 | |||||
Accrued expenses | 233.7 | 157.4 | |||||
Total accrued expenses and other current liabilities | $ | 482.4 | $ | 328.5 |
(in millions) | Balance at beginning of period | Net adjustment (1) | Balance at end of period | ||||||||
Fiscal 2013 | $ | 7.3 | $ | 0.3 | $ | 7.6 | |||||
Fiscal 2014 | $ | 7.6 | $ | 0.8 | $ | 8.4 | |||||
Fiscal 2015 | $ | 8.4 | $ | 6.9 | $ | 15.3 |
(in millions) | Balance at beginning of period | Warranty obligations acquired | Warranty expense | Utilized | Balance at end of period | ||||||||||||||
Fiscal 2013 | $ | 15.1 | $ | — | $ | 8.6 | $ | (5.2 | ) | $ | 18.5 | ||||||||
Fiscal 2014 | $ | 18.5 | $ | — | $ | 7.4 | $ | (6.8 | ) | $ | 19.1 | ||||||||
Fiscal 2015 | $ | 19.1 | $ | 28.4 | $ | 7.4 | $ | (10.0 | ) | $ | 44.9 |
Disclosed as: (in millions) | January 31, 2015 | February 1, 2014 | |||||
Current liabilities(1) | $ | 17.2 | $ | 6.7 | |||
Non-current liabilities (see Note 22) | 27.7 | 12.4 | |||||
Total warranty reserve | $ | 44.9 | $ | 19.1 |
|
(in millions) | January 31, 2015 | February 1, 2014 | |||||
Sterling Jewelers ESP deferred revenue | $ | 668.9 | $ | 601.2 | |||
Zale ESP deferred revenue | 120.3 | — | |||||
Voucher promotions and other | 22.7 | 15.5 | |||||
Total deferred revenue | $ | 811.9 | $ | 616.7 | |||
Disclosed as: | |||||||
Current liabilities | $ | 248.0 | $ | 173.0 | |||
Non-current liabilities | 563.9 | 443.7 | |||||
Total deferred revenue | $ | 811.9 | $ | 616.7 |
(in millions) | Fiscal 2015 | Fiscal 2014 | |||||
Sterling Jewelers ESP deferred revenue, beginning of period | $ | 601.2 | $ | 549.7 | |||
Plans sold | 257.5 | 223.3 | |||||
Revenue recognized | (189.8 | ) | (171.8 | ) | |||
Sterling Jewelers ESP deferred revenue, end of period | $ | 668.9 | $ | 601.2 |
(in millions) | Fiscal 2015 | ||
Zale ESP deferred revenue, beginning of period | $ | — | |
Plans acquired | 93.3 | ||
Plans sold | 88.4 | ||
Revenue recognized | (61.4 | ) | |
Zale ESP deferred revenue, end of period | $ | 120.3 |
|
(in millions) | January 31, 2015 | February 1, 2014 | |||||
Straight-line rent | $ | 73.8 | $ | 67.1 | |||
Deferred compensation | 28.4 | 25.0 | |||||
Warranty reserve | 27.7 | 12.4 | |||||
Lease loss reserve | 4.2 | 5.8 | |||||
Other liabilities | 96.1 | 11.4 | |||||
Total other liabilities | $ | 230.2 | $ | 121.7 |
(in millions) | January 31, 2015 | February 1, 2014 | |||||
At beginning of period: | $ | 5.8 | $ | 8.1 | |||
Adjustments, net | (0.4 | ) | (1.6 | ) | |||
Utilization(1) | (1.2 | ) | (0.7 | ) | |||
At end of period | $ | 4.2 | $ | 5.8 |
|
(in millions) | Fiscal 2015 | Fiscal 2014 | Fiscal 2013 | ||||||||
Minimum rentals | $ | 462.9 | $ | 323.7 | $ | 316.0 | |||||
Contingent rent | 14.0 | 11.1 | 7.8 | ||||||||
Sublease income | (0.8 | ) | (0.9 | ) | (2.9 | ) | |||||
Total | $ | 476.1 | $ | 333.9 | $ | 320.9 |
(in millions) | |||
Fiscal 2016 | $ | 462.3 | |
Fiscal 2017 | 398.0 | ||
Fiscal 2018 | 334.9 | ||
Fiscal 2019 | 272.2 | ||
Fiscal 2020 | 238.3 | ||
Thereafter | 1,030.3 | ||
Total | $ | 2,736.0 |
|
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Sales | $ | — | $ | — | $ | 5,671.4 | $ | 64.9 | $ | — | $ | 5,736.3 | |||||||||||
Cost of sales | — | — | (3,647.0 | ) | (15.1 | ) | — | (3,662.1 | ) | ||||||||||||||
Gross margin | — | — | 2,024.4 | 49.8 | — | 2,074.2 | |||||||||||||||||
Selling, general and administrative expenses | (2.5 | ) | — | (1,683.6 | ) | (26.8 | ) | — | (1,712.9 | ) | |||||||||||||
Other operating income, net | — | — | 220.8 | (5.5 | ) | — | 215.3 | ||||||||||||||||
Operating (loss) income | (2.5 | ) | — | 561.6 | 17.5 | — | 576.6 | ||||||||||||||||
Intra-entity interest income (expense) | — | 13.2 | (129.6 | ) | 116.4 | — | — | ||||||||||||||||
Interest expense, net | — | (13.9 | ) | (14.8 | ) | (7.3 | ) | — | (36.0 | ) | |||||||||||||
(Loss) income before income taxes | (2.5 | ) | (0.7 | ) | 417.2 | 126.6 | — | 540.6 | |||||||||||||||
Income taxes | — | 0.1 | (159.5 | ) | 0.1 | — | (159.3 | ) | |||||||||||||||
Equity in income of subsidiaries | 383.8 | — | 579.8 | 565.4 | (1,529.0 | ) | — | ||||||||||||||||
Net income (loss) | $ | 381.3 | $ | (0.6 | ) | $ | 837.5 | $ | 692.1 | $ | (1,529.0 | ) | $ | 381.3 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Sales | $ | — | $ | — | $ | 4,162.9 | $ | 46.3 | $ | — | $ | 4,209.2 | |||||||||||
Cost of sales | — | — | (2,621.2 | ) | (7.5 | ) | — | (2,628.7 | ) | ||||||||||||||
Gross margin | — | — | 1,541.7 | 38.8 | — | 1,580.5 | |||||||||||||||||
Selling, general and administrative expenses | (2.9 | ) | — | (1,193.1 | ) | (0.7 | ) | — | (1,196.7 | ) | |||||||||||||
Other operating income, net | — | — | 183.8 | 2.9 | — | 186.7 | |||||||||||||||||
Operating (loss) income | (2.9 | ) | — | 532.4 | 41.0 | — | 570.5 | ||||||||||||||||
Intra-entity interest (expense) income | — | — | (34.5 | ) | 34.5 | — | — | ||||||||||||||||
Interest expense, net | — | — | (3.9 | ) | (0.1 | ) | — | (4.0 | ) | ||||||||||||||
(Loss) income before income taxes | (2.9 | ) | — | 494.0 | 75.4 | — | 566.5 | ||||||||||||||||
Income taxes | — | — | (196.8 | ) | (1.7 | ) | — | (198.5 | ) | ||||||||||||||
Equity in income of subsidiaries | 370.9 | — | 344.2 | 301.3 | (1,016.4 | ) | — | ||||||||||||||||
Net income | $ | 368.0 | $ | — | $ | 641.4 | $ | 375.0 | $ | (1,016.4 | ) | $ | 368.0 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Sales | $ | — | $ | — | $ | 3,948.5 | $ | 34.9 | $ | — | $ | 3,983.4 | |||||||||||
Cost of sales | — | — | (2,443.4 | ) | (2.6 | ) | — | (2,446.0 | ) | ||||||||||||||
Gross margin | — | — | 1,505.1 | 32.3 | — | 1,537.4 | |||||||||||||||||
Selling, general and administrative expenses | (3.5 | ) | — | (1,135.6 | ) | 0.8 | — | (1,138.3 | ) | ||||||||||||||
Other operating income, net | — | — | 161.7 | (0.3 | ) | — | 161.4 | ||||||||||||||||
Operating (loss) income | (3.5 | ) | — | 531.2 | 32.8 | — | 560.5 | ||||||||||||||||
Intra-entity interest (expense) income | — | — | (41.1 | ) | 41.1 | — | — | ||||||||||||||||
Interest expense, net | — | — | (3.7 | ) | 0.1 | — | (3.6 | ) | |||||||||||||||
(Loss) income before income taxes | (3.5 | ) | — | 486.4 | 74.0 | — | 556.9 | ||||||||||||||||
Income taxes | — | — | (195.8 | ) | (1.2 | ) | — | (197.0 | ) | ||||||||||||||
Equity in income of subsidiaries | 363.4 | — | 333.9 | 295.1 | (992.4 | ) | — | ||||||||||||||||
Net income | $ | 359.9 | $ | — | $ | 624.5 | $ | 367.9 | $ | (992.4 | ) | $ | 359.9 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net income | $ | 381.3 | $ | (0.6 | ) | $ | 837.5 | $ | 692.1 | $ | (1,529.0 | ) | $ | 381.3 | |||||||||
Other comprehensive income (loss): | — | ||||||||||||||||||||||
Foreign currency translation adjustments | (60.6 | ) | — | (61.1 | ) | 4.6 | 56.5 | (60.6 | ) | ||||||||||||||
Available-for-sale securities: | — | ||||||||||||||||||||||
Unrealized loss | — | — | — | — | — | — | |||||||||||||||||
Cash flow hedges: | — | ||||||||||||||||||||||
Unrealized gain | 6.2 | — | 6.2 | — | (6.2 | ) | 6.2 | ||||||||||||||||
Reclassification adjustment for losses to net income | 12.5 | — | 12.5 | — | (12.5 | ) | 12.5 | ||||||||||||||||
Pension plan: | — | ||||||||||||||||||||||
Actuarial loss | (15.8 | ) | — | (15.8 | ) | — | 15.8 | (15.8 | ) | ||||||||||||||
Reclassification adjustment to net income for amortization of actuarial loss | 1.6 | — | 1.6 | — | (1.6 | ) | 1.6 | ||||||||||||||||
Prior service costs | (0.7 | ) | — | (0.7 | ) | — | 0.7 | (0.7 | ) | ||||||||||||||
Reclassification adjustment to net income for amortization of prior service credits | (1.3 | ) | — | (1.3 | ) | — | 1.3 | (1.3 | ) | ||||||||||||||
Total other comprehensive income | (58.1 | ) | — | (58.6 | ) | 4.6 | 54.0 | (58.1 | ) | ||||||||||||||
Total comprehensive income (loss) | $ | 323.2 | $ | (0.6 | ) | $ | 778.9 | $ | 696.7 | $ | (1,475.0 | ) | $ | 323.2 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net income | $ | 368.0 | $ | — | $ | 641.4 | $ | 375.0 | $ | (1,016.4 | ) | $ | 368.0 | ||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Foreign currency translation adjustments | 12.4 | — | 13.9 | (2.7 | ) | (11.2 | ) | 12.4 | |||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||
Unrealized loss | (22.0 | ) | — | (22.0 | ) | — | 22.0 | (22.0 | ) | ||||||||||||||
Reclassification adjustment for losses to net income | 6.7 | — | 6.7 | — | (6.7 | ) | 6.7 | ||||||||||||||||
Pension plan: | |||||||||||||||||||||||
Actuarial gain | 0.2 | — | 0.2 | — | (0.2 | ) | 0.2 | ||||||||||||||||
Reclassification adjustment to net income for amortization of actuarial loss | 1.7 | — | 1.7 | — | (1.7 | ) | 1.7 | ||||||||||||||||
Prior service benefit | (0.7 | ) | — | (0.7 | ) | — | 0.7 | (0.7 | ) | ||||||||||||||
Reclassification adjustment to net income for amortization of prior service credits | (1.1 | ) | — | (1.1 | ) | — | 1.1 | (1.1 | ) | ||||||||||||||
Total other comprehensive (loss) income | (2.8 | ) | — | (1.3 | ) | (2.7 | ) | 4.0 | (2.8 | ) | |||||||||||||
Total comprehensive income | $ | 365.2 | $ | — | $ | 640.1 | $ | 372.3 | $ | (1,012.4 | ) | $ | 365.2 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net income | $ | 359.9 | $ | — | $ | 624.5 | $ | 367.9 | $ | (992.4 | ) | $ | 359.9 | ||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Foreign currency translation adjustments | (0.5 | ) | — | (0.6 | ) | 0.1 | 0.5 | (0.5 | ) | ||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||
Unrealized loss | (6.7 | ) | — | (6.7 | ) | — | 6.7 | (6.7 | ) | ||||||||||||||
Reclassification adjustment for gains to net income | (14.4 | ) | — | (14.4 | ) | — | 14.4 | (14.4 | ) | ||||||||||||||
Pension plan: | |||||||||||||||||||||||
Actuarial gain | 4.7 | — | 4.7 | — | (4.7 | ) | 4.7 | ||||||||||||||||
Reclassification adjustment to net income for amortization of actuarial loss | 2.4 | — | 2.4 | — | (2.4 | ) | 2.4 | ||||||||||||||||
Prior service benefit | (0.8 | ) | — | (0.8 | ) | — | 0.8 | (0.8 | ) | ||||||||||||||
Reclassification adjustment to net income for amortization of prior service credits | (1.2 | ) | — | (1.2 | ) | — | 1.2 | (1.2 | ) | ||||||||||||||
Total other comprehensive (loss) income | (16.5 | ) | — | (16.6 | ) | 0.1 | 16.5 | (16.5 | ) | ||||||||||||||
Total comprehensive income | $ | 343.4 | $ | — | $ | 607.9 | $ | 368.0 | $ | (975.9 | ) | $ | 343.4 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Assets | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 2.1 | $ | 0.1 | $ | 166.5 | $ | 24.9 | $ | — | $ | 193.6 | |||||||||||
Accounts receivable, net | — | — | 1,566.2 | 1.4 | — | 1,567.6 | |||||||||||||||||
Intra-entity receivables, net | 121.6 | — | — | 61.8 | (183.4 | ) | — | ||||||||||||||||
Other receivables | — | — | 53.9 | 9.7 | — | 63.6 | |||||||||||||||||
Other current assets | 0.1 | 0.7 | 130.9 | 5.5 | — | 137.2 | |||||||||||||||||
Deferred tax assets | — | — | 4.3 | 0.2 | — | 4.5 | |||||||||||||||||
Income taxes | — | — | 1.8 | — | — | 1.8 | |||||||||||||||||
Inventories | — | — | 2,376.6 | 62.4 | — | 2,439.0 | |||||||||||||||||
Total current assets | 123.8 | 0.8 | 4,300.2 | 165.9 | (183.4 | ) | 4,407.3 | ||||||||||||||||
Non-current assets: | |||||||||||||||||||||||
Property, plant and equipment, net | — | — | 660.2 | 5.7 | — | 665.9 | |||||||||||||||||
Goodwill | — | — | 515.6 | 3.6 | — | 519.2 | |||||||||||||||||
Intangible assets, net | — | — | 447.1 | — | — | 447.1 | |||||||||||||||||
Investment in subsidiaries | 2,701.3 | — | 462.8 | 421.7 | (3,585.8 | ) | — | ||||||||||||||||
Intra-entity receivables, net | — | 402.4 | — | 3,490.0 | (3,892.4 | ) | — | ||||||||||||||||
Other assets | — | 5.8 | 105.3 | 28.9 | — | 140.0 | |||||||||||||||||
Deferred tax assets | — | — | 111.0 | 0.1 | — | 111.1 | |||||||||||||||||
Retirement benefit asset | — | — | 37.0 | — | — | 37.0 | |||||||||||||||||
Total assets | $ | 2,825.1 | $ | 409.0 | $ | 6,639.2 | $ | 4,115.9 | $ | (7,661.6 | ) | $ | 6,327.6 | ||||||||||
Liabilities and Shareholders’ equity | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Loans and overdrafts | $ | — | $ | — | $ | 97.5 | $ | — | $ | — | $ | 97.5 | |||||||||||
Accounts payable | — | — | 273.4 | 4.3 | — | 277.7 | |||||||||||||||||
Intra-entity payables, net | — | — | 183.4 | — | (183.4 | ) | — | ||||||||||||||||
Accrued expenses and other current liabilities | 14.7 | 2.4 | 456.7 | 8.6 | — | 482.4 | |||||||||||||||||
Deferred revenue | — | — | 248.0 | — | — | 248.0 | |||||||||||||||||
Deferred tax liabilities | — | — | 145.8 | — | — | 145.8 | |||||||||||||||||
Income taxes | — | (0.2 | ) | 87.7 | (0.6 | ) | — | 86.9 | |||||||||||||||
Total current liabilities | 14.7 | 2.2 | 1,492.5 | 12.3 | (183.4 | ) | 1,338.3 | ||||||||||||||||
Non-current liabilities: | |||||||||||||||||||||||
Long-term debt | — | 398.5 | 365.3 | 600.0 | — | 1,363.8 | |||||||||||||||||
Intra-entity payables, net | — | — | 3,892.4 | — | (3,892.4 | ) | — | ||||||||||||||||
Other liabilities | — | — | 222.0 | 8.2 | — | 230.2 | |||||||||||||||||
Deferred revenue | — | — | 563.9 | — | — | 563.9 | |||||||||||||||||
Deferred tax liabilities | — | — | 21.0 | — | — | 21.0 | |||||||||||||||||
Total liabilities | 14.7 | 400.7 | 6,557.1 | 620.5 | (4,075.8 | ) | 3,517.2 | ||||||||||||||||
Total shareholders’ equity | 2,810.4 | 8.3 | 82.1 | 3,495.4 | (3,585.8 | ) | 2,810.4 | ||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,825.1 | $ | 409.0 | $ | 6,639.2 | $ | 4,115.9 | $ | (7,661.6 | ) | $ | 6,327.6 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Assets | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 1.4 | $ | — | $ | 237.0 | $ | 9.2 | $ | — | $ | 247.6 | |||||||||||
Accounts receivable, net | — | — | 1,361.3 | 12.7 | — | 1,374.0 | |||||||||||||||||
Intra-entity receivables, net | 47.7 | — | — | 238.0 | (285.7 | ) | — | ||||||||||||||||
Other receivables | — | — | 51.1 | 0.4 | — | 51.5 | |||||||||||||||||
Other current assets | — | — | 86.5 | 0.5 | — | 87.0 | |||||||||||||||||
Deferred tax assets | — | — | 2.8 | 0.2 | — | 3.0 | |||||||||||||||||
Income taxes | — | — | 6.0 | 0.5 | — | 6.5 | |||||||||||||||||
Inventories | — | — | 1,434.5 | 53.5 | — | 1,488.0 | |||||||||||||||||
Total current assets | 49.1 | — | 3,179.2 | 315.0 | (285.7 | ) | 3,257.6 | ||||||||||||||||
Non-current assets: | |||||||||||||||||||||||
Property, plant and equipment, net | — | — | 481.5 | 6.1 | — | 487.6 | |||||||||||||||||
Goodwill | — | — | 23.2 | 3.6 | — | 26.8 | |||||||||||||||||
Investment in subsidiaries | 2,526.3 | — | 1,452.8 | 1,143.2 | (5,122.3 | ) | — | ||||||||||||||||
Intra-entity receivables, net | — | — | — | 1,098.0 | (1,098.0 | ) | — | ||||||||||||||||
Other assets | — | — | 87.2 | — | — | 87.2 | |||||||||||||||||
Deferred tax assets | — | — | 113.6 | 0.1 | — | 113.7 | |||||||||||||||||
Retirement benefit asset | — | — | 56.3 | — | — | 56.3 | |||||||||||||||||
Total assets | $ | 2,575.4 | $ | — | $ | 5,393.8 | $ | 2,566.0 | $ | (6,506.0 | ) | $ | 4,029.2 | ||||||||||
Liabilities and Shareholders’ equity | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Loans and overdrafts | $ | — | $ | — | $ | 19.3 | $ | — | $ | — | $ | 19.3 | |||||||||||
Accounts payable | — | — | 160.5 | 2.4 | — | 162.9 | |||||||||||||||||
Intra-entity payables, net | — | — | 285.7 | — | (285.7 | ) | — | ||||||||||||||||
Accrued expenses and other current liabilities | 12.3 | — | 313.1 | 3.1 | — | 328.5 | |||||||||||||||||
Deferred revenue | — | — | 173.0 | — | — | 173.0 | |||||||||||||||||
Deferred tax liabilities | — | — | 113.1 | — | — | 113.1 | |||||||||||||||||
Income taxes | — | — | 101.3 | 2.6 | — | 103.9 | |||||||||||||||||
Total current liabilities | 12.3 | — | 1,166.0 | 8.1 | (285.7 | ) | 900.7 | ||||||||||||||||
Non-current liabilities: | |||||||||||||||||||||||
Long-term debt | — | — | — | — | — | — | |||||||||||||||||
Intra-entity payables, net | — | — | 1,098.0 | — | (1,098.0 | ) | — | ||||||||||||||||
Other liabilities | — | — | 118.5 | 3.2 | — | 121.7 | |||||||||||||||||
Deferred revenue | — | — | 443.7 | — | — | 443.7 | |||||||||||||||||
Total liabilities | 12.3 | — | 2,826.2 | 11.3 | (1,383.7 | ) | 1,466.1 | ||||||||||||||||
Total shareholders’ equity | 2,563.1 | — | 2,567.6 | 2,554.7 | (5,122.3 | ) | 2,563.1 | ||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,575.4 | $ | — | $ | 5,393.8 | $ | 2,566.0 | $ | (6,506.0 | ) | $ | 4,029.2 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net cash provided by (used in) operating activities | $ | 137.3 | $ | — | $ | 421.3 | $ | 286.9 | $ | (610.0 | ) | $ | 235.5 | ||||||||||
Investing activities | |||||||||||||||||||||||
Purchase of property, plant and equipment | — | — | (152.6 | ) | (0.1 | ) | — | (152.7 | ) | ||||||||||||||
Investment in subsidiaries | (0.3 | ) | — | (11.0 | ) | (11.0 | ) | 22.3 | — | ||||||||||||||
Acquisition of Ultra Stores, Inc. | — | — | 1.4 | — | — | 1.4 | |||||||||||||||||
Acquisition of diamond polishing factory | — | — | — | (9.1 | ) | — | (9.1 | ) | |||||||||||||||
Net cash used in investing activities | (0.3 | ) | — | (162.2 | ) | (20.2 | ) | 22.3 | (160.4 | ) | |||||||||||||
Financing activities | |||||||||||||||||||||||
Dividends paid | (46.0 | ) | — | — | — | — | (46.0 | ) | |||||||||||||||
Intra-entity dividends paid | — | — | (104.4 | ) | (35.6 | ) | 140.0 | — | |||||||||||||||
Proceeds from issuance of common shares | 9.3 | — | — | 22.3 | (22.3 | ) | 9.3 | ||||||||||||||||
Excess tax benefit from exercise of share awards | — | — | 6.5 | — | — | 6.5 | |||||||||||||||||
Repurchase of common shares | (104.7 | ) | — | — | — | — | (104.7 | ) | |||||||||||||||
Net settlement of equity based awards | (9.2 | ) | — | — | — | — | (9.2 | ) | |||||||||||||||
Proceeds from short-term borrowings | — | — | 19.3 | — | — | 19.3 | |||||||||||||||||
Intra-entity activity, net | 1.6 | — | (214.6 | ) | (257.0 | ) | 470.0 | — | |||||||||||||||
Net cash used in financing activities | (149.0 | ) | — | (293.2 | ) | (270.3 | ) | 587.7 | (124.8 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | 13.4 | — | 271.3 | 16.3 | — | 301.0 | |||||||||||||||||
Decrease in cash and cash equivalents | (12.0 | ) | — | (34.1 | ) | (3.6 | ) | — | (49.7 | ) | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (0.2 | ) | (3.5 | ) | — | (3.7 | ) | ||||||||||||||
Cash and cash equivalents at end of period | $ | 1.4 | $ | — | $ | 237.0 | $ | 9.2 | $ | — | $ | 247.6 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net cash provided by (used in) operating activities | $ | 305.7 | $ | — | $ | 512.5 | $ | 280.5 | $ | (786.0 | ) | $ | 312.7 | ||||||||||
Investing activities | |||||||||||||||||||||||
Purchase of property, plant and equipment | — | — | (134.0 | ) | (0.2 | ) | — | (134.2 | ) | ||||||||||||||
Acquisition of Ultra Stores, Inc. | — | — | (56.7 | ) | — | — | (56.7 | ) | |||||||||||||||
Net cash used in investing activities | — | — | (190.7 | ) | (0.2 | ) | — | (190.9 | ) | ||||||||||||||
Financing activities | |||||||||||||||||||||||
Dividends paid | (38.4 | ) | — | — | — | — | (38.4 | ) | |||||||||||||||
Intra-entity dividends paid | — | — | (520.1 | ) | (265.9 | ) | 786.0 | — | |||||||||||||||
Proceeds from issuance of common shares | 21.6 | — | — | — | — | 21.6 | |||||||||||||||||
Excess tax benefit from exercise of share awards | — | — | 7.4 | — | — | 7.4 | |||||||||||||||||
Repurchase of common shares | (287.2 | ) | — | — | — | — | (287.2 | ) | |||||||||||||||
Net settlement of equity based awards | (11.5 | ) | — | — | — | — | (11.5 | ) | |||||||||||||||
Intra-entity activity, net | 17.1 | — | (9.9 | ) | (7.2 | ) | — | — | |||||||||||||||
Net cash used in financing activities | (298.4 | ) | — | (522.6 | ) | (273.1 | ) | 786.0 | (308.1 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | 6.1 | — | 471.6 | 9.1 | — | 486.8 | |||||||||||||||||
Decrease in cash and cash equivalents | 7.3 | — | (200.8 | ) | 7.2 | — | (186.3 | ) | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | 0.5 | — | — | 0.5 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | 13.4 | $ | — | $ | 271.3 | $ | 16.3 | $ | — | $ | 301.0 |
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