SIGNET JEWELERS LTD, 10-K filed on 3/26/2015
Annual Report
Document and Entity Information (USD $)
12 Months Ended
Jan. 31, 2015
Mar. 16, 2015
Aug. 1, 2014
Document And Entity Information [Abstract]
 
 
 
Document type
10-K 
 
 
Amendment flag
false 
 
 
Document period end date
Jan. 31, 2015 
 
 
Document fiscal year focus
2015 
 
 
Document fiscal period focus
FY 
 
 
Trading symbol
SIG 
 
 
Entity registrant name
SIGNET JEWELERS LTD 
 
 
Entity Central Index Key
0000832988 
 
 
Current Fiscal Year End Date
--01-31 
 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Common Stock, Shares outstanding
 
80,251,059 
 
Entity Public Float
 
 
$ 8,186,100,543 
Consolidated Income Statements (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Income Statement [Abstract]
 
 
 
Sales
$ 5,736.3 
$ 4,209.2 
$ 3,983.4 
Cost of sales
(3,662.1)
(2,628.7)
(2,446.0)
Gross margin
2,074.2 
1,580.5 
1,537.4 
Selling, general and administrative expenses
(1,712.9)
(1,196.7)
(1,138.3)
Other operating income, net
215.3 
186.7 
161.4 
Operating income
576.6 
570.5 
560.5 
Interest expense, net
(36.0)
(4.0)
(3.6)
Income before income taxes
540.6 
566.5 
556.9 
Income taxes
(159.3)
(198.5)
(197.0)
Net income
$ 381.3 
$ 368.0 
$ 359.9 
Earnings per share: basic (usd per share)
$ 4.77 
$ 4.59 
$ 4.37 
Earnings per share: diluted (usd per share)
$ 4.75 
$ 4.56 
$ 4.35 
Weighted average common shares outstanding: basic
79.9 
80.2 
82.3 
Weighted average common shares outstanding: diluted
80.2 
80.7 
82.8 
Dividends declared per share (usd per share)
$ 0.72 
$ 0.60 
$ 0.48 
Consolidated Statements Of Comprehensive Income (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Pre-tax amount
 
 
 
Foreign currency translation adjustments
$ (60.6)
$ 12.4 
$ (0.5)
Cash flow hedges:
 
 
 
Unrealized gain (loss)
9.1 
(33.0)
(10.4)
Reclassification adjustment for (gains) losses to net income
18.6 
11.1 
(22.4)
Pension plan:
 
 
 
Actuarial gain (loss)
(20.4)
0.2 
6.2 
Reclassification adjustment to net income for amortization of actuarial loss
2.0 
2.3 
3.2 
Prior service credits (costs)
(0.9)
(0.9)
(1.1)
Reclassification adjustment to net income for amortization of prior service (credits) costs
(1.7)
(1.5)
(1.6)
Total other comprehensive income (loss)
(53.9)
(9.4)
(26.6)
Tax (expense) benefit
 
 
 
Foreign currency translation adjustments
Cash flow hedges:
 
 
 
Unrealized gain (loss)
(2.9)
11.0 
3.7 
Reclassification adjustment for (gains) losses to net income
(6.1)
(4.4)
8.0 
Pension plan:
 
 
 
Actuarial gain (loss)
4.6 
(1.5)
Reclassification adjustment to net income for amortization of actuarial loss
(0.4)
(0.6)
(0.8)
Prior service credits (costs)
0.2 
0.2 
0.3 
Reclassification adjustment to net income for amortization of prior service (credits) costs
0.4 
0.4 
0.4 
Total other comprehensive income (loss)
(4.2)
6.6 
10.1 
After-tax amount
 
 
 
Net income
381.3 
368.0 
359.9 
Foreign currency translation adjustments
(60.6)
12.4 
(0.5)
Cash flow hedges:
 
 
 
Unrealized gain (loss)
6.2 
(22.0)
(6.7)
Reclassification adjustment for (gains) losses to net income
12.5 
6.7 
(14.4)
Pension plan:
 
 
 
Actuarial gain (loss)
(15.8)
0.2 
4.7 
Reclassification adjustment to net income for amortization of actuarial loss
1.6 
1.7 
2.4 
Prior service credits (costs)
(0.7)
(0.7)
(0.8)
Reclassification adjustment to net income for amortization of prior service (credits) costs
(1.3)
(1.1)
(1.2)
Total other comprehensive income (loss)
(58.1)
(2.8)
(16.5)
Total comprehensive income
$ 323.2 
$ 365.2 
$ 343.4 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Current assets:
 
 
Cash and cash equivalents
$ 193.6 
$ 247.6 
Accounts receivable, net
1,567.6 
1,374.0 
Other receivables
63.6 
51.5 
Other current assets
137.2 
87.0 
Deferred tax assets
4.5 
3.0 
Income taxes
1.8 
6.5 
Inventories
2,439.0 
1,488.0 
Total current assets
4,407.3 
3,257.6 
Non-current assets:
 
 
Property, plant and equipment, net
665.9 
487.6 
Goodwill
519.2 
26.8 
Intangible assets, net
447.1 
Other assets
140.0 
87.2 
Deferred tax assets
111.1 
113.7 
Retirement benefit asset
37.0 
56.3 
Total assets
6,327.6 
4,029.2 
Current liabilities:
 
 
Loans and overdrafts
97.5 
19.3 
Accounts payable
277.7 
162.9 
Accrued expenses and other current liabilities
482.4 
328.5 
Deferred revenue
248.0 
173.0 
Deferred tax liabilities
145.8 
113.1 
Income taxes
86.9 
103.9 
Total current liabilities
1,338.3 
900.7 
Non-current liabilities:
 
 
Long-term debt
1,363.8 
Other liabilities
230.2 
121.7 
Deferred revenue
563.9 
443.7 
Deferred tax liabilities
21.0 
Total liabilities
3,517.2 
1,466.1 
Commitments and contingencies
   
   
Shareholders’ equity:
 
 
Common shares of $0.18 par value: authorized 500 shares, 80.3 shares outstanding (2014: 80.2 outstanding)
15.7 
15.7 
Additional paid-in capital
265.2 
258.8 
Other reserves
0.4 
0.4 
Treasury shares at cost: 6.9 shares (2014: 7.0 shares)
(370.0)
(346.2)
Retained earnings
3,135.7 
2,812.9 
Accumulated other comprehensive loss
(236.6)
(178.5)
Total shareholders’ equity
2,810.4 
2,563.1 
Total liabilities and shareholders’ equity
$ 6,327.6 
$ 4,029.2 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Per Share data, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Statement of Financial Position [Abstract]
 
 
Common shares, par value (usd per share)
$ 0.18 
$ 0.18 
Common shares, authorized
500 
500 
Common shares, outstanding
80.3 
80.2 
Treasury shares, shares
6.9 
7.0 
Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Cash flows from operating activities:
 
 
 
Net income
$ 381.3 
$ 368.0 
$ 359.9 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
149.7 
110.2 
99.4 
Amortization of unfavorable leases and contracts
(23.7)
Pension (benefit) expense
(2.4)
(0.5)
3.2 
Share-based compensation
12.1 
14.4 
15.7 
Deferred taxation
(47.6)
(20.4)
4.3 
Excess tax benefit from exercise of share awards
(11.8)
(6.5)
(7.4)
Amortization of debt discount and issuance costs
7.4 
0.4 
0.4 
Other non-cash movements
2.7 
(3.3)
(1.4)
Changes in operating assets and liabilities:
 
 
 
Increase in accounts receivable
(194.6)
(168.3)
(117.1)
Increase in other receivables and other assets
(18.0)
(21.6)
(1.3)
Increase in other current assets
(35.5)
(4.1)
(5.2)
Increase in inventories
(121.6)
(98.4)
(65.7)
Increase (decrease) in accounts payable
23.7 
3.2 
(39.6)
Increase in accrued expenses and other liabilities
64.8 
8.6 
13.4 
Increase in deferred revenue
102.3 
50.8 
40.6 
(Decrease) increase in income taxes payable
(1.6)
7.9 
27.2 
Pension plan contributions
(4.2)
(4.9)
(13.7)
Net cash provided by operating activities
283.0 
235.5 
312.7 
Investing activities
 
 
 
Purchase of property, plant and equipment
(220.2)
(152.7)
(134.2)
Purchase of available-for-sale securities
(5.7)
Proceeds from sale of available-for-sale securities
2.5 
Net cash used in investing activities
(1,652.6)
(160.4)
(190.9)
Financing activities
 
 
 
Dividends paid
(55.3)
(46.0)
(38.4)
Proceeds from issuance of common shares
6.1 
9.3 
21.6 
Excess tax benefit from exercise of share awards
11.8 
6.5 
7.4 
Repayments of debt
(1,351.9)
 
 
Proceeds from revolving credit facility
260.0 
57.0 
Payment of debt issuance costs
(20.5)
Repurchase of common shares
(29.8)
(104.7)
(287.2)
Net settlement of equity based awards
(18.4)
(9.2)
(11.5)
Principal payments under capital lease obligations
(0.8)
Proceeds from short-term borrowings
39.4 
19.3 
Net cash provided by (used in) financing activities
1,320.9 
(124.8)
(308.1)
Cash and cash equivalents at beginning of period
247.6 
301.0 
486.8 
Decrease in cash and cash equivalents
(48.7)
(49.7)
(186.3)
Effect of exchange rate changes on cash and cash equivalents
(5.3)
(3.7)
0.5 
Cash and cash equivalents at end of period
193.6 
247.6 
301.0 
Non-cash investing activities:
 
 
 
Capital expenditures in accounts payable
6.2 
2.0 
2.4 
Supplemental cash flow information:
 
 
 
Interest paid
25.4 
3.5 
3.4 
Income taxes paid
208.8 
211.0 
165.6 
Ultra Acquisition
 
 
 
Investing activities
 
 
 
Acquisition of business
1.4 
(56.7)
Zale
 
 
 
Investing activities
 
 
 
Acquisition of business
(1,429.2)
Botswana Diamond Polishing Factory Acquisition
 
 
 
Investing activities
 
 
 
Acquisition of business
(9.1)
Senior Notes
 
 
 
Financing activities
 
 
 
Proceeds from debt
398.4 
Term Loan
 
 
 
Financing activities
 
 
 
Proceeds from debt
400.0 
Repayments of debt
(10.0)
Securitization facility
 
 
 
Financing activities
 
 
 
Proceeds from debt
1,941.9 
Repayments of debt
(1,341.9)
Repayments of revolving credit facility
$ (260.0)
$ (57.0)
$ 0 
Consolidated Statements Of Shareholders' Equity (USD $)
In Millions, unless otherwise specified
Total
Common shares at par value
Additional paid-in- capital
Other reserves
Treasury shares
Retained earnings
Accumulated other comprehensive (loss) income
Balance at Jan. 28, 2012
$ 2,279.1 
$ 15.6 
$ 230.9 
$ 0.4 
$ (12.7)
$ 2,204.1 
$ (159.2)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
Net income
359.9 
 
 
 
 
359.9 
 
Other comprehensive income
(16.5)
 
 
 
 
 
(16.5)
Dividends
(39.5)
 
 
 
 
(39.5)
 
Repurchase of common shares
(287.2)
 
 
 
(287.2)
 
 
Net settlement of equity based awards
(11.5)
 
(7.4)
 
10.8 
(14.9)
 
Share options exercised
29.9 
0.1 
7.1 
 
29.1 
(6.4)
 
Share-based compensation expense
15.7 
 
15.7 
 
 
 
 
Balance at Feb. 02, 2013
2,329.9 
15.7 
246.3 
0.4 
(260.0)
2,503.2 
(175.7)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
Net income
368.0 
 
 
 
 
368.0 
 
Other comprehensive income
(2.8)
 
 
 
 
 
(2.8)
Dividends
(48.2)
 
 
 
 
(48.2)
 
Repurchase of common shares
(104.7)
 
 
 
(104.7)
 
 
Net settlement of equity based awards
(2.7)
 
(1.7)
 
7.1 
(8.1)
 
Share options exercised
9.2 
(0.2)
 
11.4 
(2.0)
 
Share-based compensation expense
14.4 
 
14.4 
 
 
 
 
Balance at Feb. 01, 2014
2,563.1 
15.7 
258.8 
0.4 
(346.2)
2,812.9 
(178.5)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
Net income
381.3 
 
 
 
 
381.3 
 
Other comprehensive income
(58.1)
 
 
 
 
 
(58.1)
Dividends
(57.7)
 
 
 
 
(57.7)
 
Repurchase of common shares
(29.8)
 
 
 
(29.8)
 
 
Net settlement of equity based awards
(6.6)
 
(3.0)
 
(3.2)
(0.4)
 
Share options exercised
6.1 
 
(2.7)
 
9.2 
(0.4)
 
Share-based compensation expense
12.1 
 
12.1 
 
 
 
 
Balance at Jan. 31, 2015
$ 2,810.4 
$ 15.7 
$ 265.2 
$ 0.4 
$ (370.0)
$ 3,135.7 
$ (236.6)
Organization and Critical Accounting Policies
Organization and critical accounting policies
Organization and critical accounting policies
Signet Jewelers Limited (“Signet” or the “Company”), a holding company incorporated in Bermuda, is the leading retailer of jewelry, watches and associated services. Accordingly, the Company operates through its 100% owned subsidiaries with sales primarily in the US, Canada and UK. Signet manages its business as four reportable segments, the Sterling Jewelers division, the UK Jewelry division and the Zale division, which consists of Zale Jewelry and Piercing Pagoda, and the Other reportable segment. The Other reportable segment consists of all non-reportable segments, including subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones and unallocated corporate expenses. See Note 4 for additional discussion of the Company’s segments.
Signet’s sales are seasonal, with the first quarter slightly exceeding 20% of annual sales, the second and third quarters each approximating 20% and the fourth quarter accounting for almost 40% of annual sales, with December being by far the most important month of the year. The “Holiday Season” consists of sales made in November and December. As a result, approximately 45% to 55% of Signet’s operating income normally occurs in the fourth quarter, comprised of nearly all of the UK Jewelry and Zale divisions’ operating income and about 40% to 45% of the Sterling Jewelers division’s operating income.
The Company has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued. There are no material related party transactions. The following accounting policies have been applied consistently in the preparation of the Company’s financial statements.
(a) Basis of preparation
The consolidated financial statements of Signet are prepared in accordance with US generally accepted accounting principles (“US GAAP”) and include the results for the 52 week period ended January 31, 2015 (“Fiscal 2015”), as Signet’s fiscal year ends on the Saturday nearest to January 31. The comparative periods are for the 52 week period ended February 1, 2014 (“Fiscal 2014”) and the 53 week period ended February 2, 2013 (“Fiscal 2013”). Intercompany transactions and balances have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation. See Note 6, "Common shares, treasury shares reserves and dividends."
(b) Use of estimates
The preparation of these consolidated financial statements, in conformity with US GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and disclosure of contingent assets and liabilities. Actual results could differ from estimates. Key estimates are primarily made in relation to the valuation of receivables, inventory, deferred revenue, fair value of derivatives, depreciation and asset impairment, the valuation of employee benefits, income taxes, contingencies and accounting for business combinations.
The reported results of operations are not indicative of results expected in future periods.
(c) Foreign currency translation
The financial position and operating results of foreign operations are consolidated using the local currency as the functional currency. Assets and liabilities are translated at the rates of exchange on the balance sheet date, and revenues and expenses are translated at the monthly average rates of exchange during the period. Resulting translation gains or losses are included in the accompanying consolidated statements of equity as a component of accumulated other comprehensive income (loss) (“AOCI”). Gains or losses resulting from foreign currency transactions are included within the consolidated statements of operations, whereas translation adjustments and gains or losses related to intercompany loans of a long-term investment nature are recognized as a component of AOCI.
(d) Revenue recognition
The Company recognizes revenue when there is persuasive evidence of an arrangement; delivery of products has occurred or services have been rendered; the sale price is fixed and determinable; and collectability is reasonably assured. The Company’s revenue streams and their respective accounting treatments are discussed below.
Merchandise sale and repairs
Store sales are recognized when the customer receives and pays for the merchandise at the store with cash, in-house customer finance, private label credit card programs or a third party credit card. For online sales shipped to customers, sales are recognized at the estimated time the customer has received the merchandise. Amounts related to shipping and handling that are billed to customers are reflected in sales and the related costs are reflected in cost of sales. Revenues on the sale of merchandise are reported net of anticipated returns and sales tax collected. Returns are estimated based on previous return rates experienced. Any deposits received from a customer for merchandise are deferred and recognized as revenue when the customer receives the merchandise. Revenues derived from providing replacement merchandise on behalf of insurance organizations are recognized upon receipt of the merchandise by the customer. Revenues on repair of merchandise are recognized when the service is complete and the customer collects the merchandise at the store.

Extended service plans and lifetime warranty agreements
The Company recognizes revenue related to lifetime warranty sales in proportion to when the expected costs will be incurred. The deferral period for lifetime warranty sales in each division is determined from patterns of claims costs, including estimates of future claims costs expected to be incurred. Management reviews the trends in claims to assess whether changes are required to the revenue and cost recognition rates utilized. A significant change in estimates related to the time period or pattern in which warranty-related costs are expected to be incurred could materially impact revenues. All direct costs associated with the sale of these plans are deferred and amortized in proportion to the revenue recognized and disclosed as either other current assets or other assets.
The Sterling Jewelers division sells extended service plans, subject to certain conditions, to perform repair work over the lifetime of the product. Revenue from the sale of these lifetime extended service plans is deferred and recognized over 14 years, with approximately 45% of revenue recognized within the first two years (February 1, 2014: 45%; February 2, 2013: 46%).
The Sterling Jewelers division also sells a Jewelry Replacement Plan (“JRP”). The JRP is designed to protect customers from damage or defects of purchased merchandise for a period of three years. If the purchased merchandise is defective or becomes damaged under normal use in that time period, the item will be replaced. JRP revenue is deferred and recognized on a straight-line basis over the period of expected claims costs.
The Zale division also sells extended service plans. Zale Jewelry customers are offered lifetime warranties on certain products that cover sizing and breakage with an option to purchase theft protection for a two-year period. Revenue from the sale of lifetime extended service plans is deferred and recognized over 10 years, with approximately 69% of revenue recognized within the first two years. Revenues related to the optional theft protection are deferred and recognized over the two-year contract period on a straight-line basis. Zale Jewelry customers are also offered a two-year watch warranty and a one-year warranty that covers breakage. Piercing Pagoda customers are also offered a one-year warranty that covers breakage. Revenue from the two-year watch warranty and one-year breakage warranty is recognized on a straight-line basis over the respective contract terms.
Signet also sells warranty agreements in the capacity of an agent on behalf of a third-party. The commission that Signet receives from the third-party is recognized at the time of sale less an estimate of cancellations based on historical experience.
Sale vouchers
Certain promotional offers award sale vouchers to customers who make purchases above a certain value, which grant a fixed discount on a future purchase within a stated time frame. The Company accounts for such vouchers by allocating the fair value of the voucher between the initial purchase and the future purchase using the relative-selling-price method. Sale vouchers are not sold on a stand-alone basis. The fair value of the voucher is determined based on the average sales transactions in which the vouchers were issued, when the vouchers are expected to be redeemed, and the estimated voucher redemption rate. The fair value allocated to the future purchase is recorded as deferred revenue.
Consignment inventory sales
Sales of consignment inventory are accounted for on a gross sales basis as the Company is the primary obligor providing independent advice, guidance, and after sales service to customers. The products sold from consignment inventory are indistinguishable from other products that are sold to customers and are sold on the same terms. Supplier products are selected at the discretion of the Company. The Company is responsible for determining the selling price, physical security of the products and collections of accounts receivable.
(e) Cost of sales and selling, general and administrative expenses
Cost of sales includes merchandise costs net of discounts and allowances, freight, processing and distribution costs of moving merchandise from suppliers to distribution centers and stores, inventory shrinkage, store operating and occupancy costs, net bad debts and charges for late payments under the in-house customer finance programs. Store operating and occupancy costs include utilities, rent, real estate taxes, common area maintenance charges and depreciation. Selling, general and administrative expenses include store staff and store administrative costs, centralized administrative expenses, including information technology, credit and eCommerce, advertising and promotional costs, and other operating expenses not specifically categorized elsewhere in the consolidated income statements.
Compensation and benefits costs included within cost of sales and selling, general and administrative expenses were as follows:
(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

 

(f ) Store opening costs
The opening costs of new locations are expensed as incurred.
(g) Advertising and promotional costs
Advertising and promotional costs are expensed within selling, general and administrative expenses. Production costs are expensed at the first communication of the advertisements, while communication expenses are recognized each time the advertisement is communicated. For catalogues and circulars, costs are all expensed at the first date they can be viewed by the customer. Point of sale promotional material is expensed when first displayed in the stores. Gross advertising costs totaled $333.0 million in Fiscal 2015 (Fiscal 2014: $253.8 million; Fiscal 2013: $245.8 million).
(h) In-house customer finance programs
Sterling Jewelers division operates customer in-house finance programs that allow customers to finance merchandise purchases from its stores. Finance charges are recognized in accordance with the contractual agreements. Gross interest earned is recorded as other operating income in the income statement. See Note 9 for additional discussion of the Company’s other operating income. In addition to interest-bearing accounts, a significant proportion of credit sales are made using interest-free financing for one year or less, subject to certain conditions.
Accrual of interest is suspended when accounts become more than 90 days aged on a recency basis. Upon suspension of the accrual of interest, interest income is subsequently recognized to the extent cash payments are received. Accrual of interest is resumed when receivables are removed from the non-accrual status.
(i) Income taxes
Income taxes are accounted for using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are recognized by applying statutory tax rates in effect in the years in which the differences between the financial reporting and tax filing bases of existing assets and liabilities are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. A valuation allowance is established against deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized.
The Company does not recognize tax benefits related to positions taken on certain tax matters unless the position is more likely than not to be sustained upon examination by tax authorities. At any point in time, various tax years are subject to or are in the process of being audited by various taxing authorities. To the extent that management’s estimates of settlements change, or the final tax outcome of these matters is different than the amounts recorded, such differences will impact the income tax provision in the period in which such determinations are made.
See Note 8 for additional discussion of the Company’s income taxes.
(j) Cash and cash equivalents
Cash and cash equivalents are comprised of cash on hand, money market deposits and amounts placed with external fund managers with an original maturity of three months or less. Cash and cash equivalents are carried at cost which approximates fair value. In addition, receivables from third-party credit card issuers typically converted to cash within 5 days of the original sales transaction are considered cash equivalents.
Additional detail regarding the composition of cash and cash equivalents as of January 31, 2015 and February 1, 2014 follows:
(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

 

(k) Accounts receivable
Accounts receivable are stated at their nominal amounts and primarily include account balances outstanding from Sterling Jewelers division in-house customer finance programs. The finance receivables from the in-house customer finance programs are comprised of a large volume of transactions with no one customer representing a significant balance. The initial acceptance of customer finance arrangements is based on proprietary consumer credit scores. Subsequent to the initial finance purchase, the Company monitors the credit quality of its customer finance receivable portfolio based on payment activity that drives the aging of receivables. This credit quality indicator is assessed on a real-time basis.
Accounts receivable under the customer finance programs are shown net of an allowance for uncollectible amounts. This allowance is an estimate of the expected losses as of the balance sheet date, and is calculated using a proprietary model that analyzes factors such as delinquency rates and recovery rates. A 100% allowance is made for any amount that is more than 90 days aged on a recency basis and any amount associated with an account the owner of which has filed for bankruptcy, as well as an allowance for those amounts 90 days aged and under based on historical loss information and payment performance. The calculation is reviewed by management to assess whether, based on economic events, additional analysis is required to appropriately estimate losses inherent in the portfolio.
Allowances for uncollectible amounts are recorded as a charge to cost of sales in the income statement. Receivables are charged off to the allowance when amounts become more than 120 days aged on the recency method and more than 240 days aged on the contractual method.
See Note 10 for additional discussion of the Company’s accounts receivables.
(l) Inventories
Inventories are primarily held for resale and are valued at the lower of cost or market value. Cost is determined using weighted-average cost for all inventories except for inventories held in the Company's diamond sourcing operations where cost is determined using specific identification. Cost includes charges directly related to bringing inventory to its present location and condition. Such charges would include warehousing, distribution and certain buying, security and data processing costs. Market value is defined as estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. Inventory write-downs are recorded for obsolete, slow moving or defective items and shrinkage. Inventory write-downs are equal to the difference between the cost of inventory and its estimated market value based upon assumptions of targeted inventory turn rates, future demand, management strategy, and market conditions. Shrinkage is estimated and recorded based on historical physical inventory results, expectations of future inventory losses and current inventory levels. Physical inventories are taken at least once annually for all store locations and distribution centers.
See Note 11 for additional discussion of the Company’s inventories.
(m) Vendor contributions
Contributions are received from vendors through various programs and arrangements including cooperative advertising. Where vendor contributions related to identifiable promotional events are received, contributions are matched against the costs of promotions. Vendor contributions, which are received as general contributions and not related to specific promotional events, are recognized as a reduction of inventory costs.
(n) Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation, amortization and impairment charges. Maintenance and repair costs are expensed as incurred. Depreciation and amortization are recognized on the straight-line method over the estimated useful lives of the related assets as follows:
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

Equipment, which includes computer software purchased or developed for internal use, is stated at cost less accumulated amortization. Signet’s policy provides for the capitalization of external direct costs of materials and services associated with developing or obtaining internal use computer software. In addition, Signet also capitalizes certain payroll and payroll-related costs for employees directly associated with internal use computer projects. Amortization is charged on a straight-line basis over periods from three to five years.
Property, plant and equipment are reviewed for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Potentially impaired assets or asset groups are identified by reviewing the cash flows of individual stores. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the undiscounted cash flow is less than the asset’s carrying amount, the impairment charge recognized is determined by estimating the fair value of the assets and recording a loss for the amount that the carrying value exceeds the estimated fair value. Property and equipment at stores planned for closure are depreciated over a revised estimate of their useful lives.
See Note 12 for additional discussion of the Company’s property, plant and equipment.
(o) Goodwill and intangibles
In a business combination, the Company estimates and records the fair value of identifiable intangible assets and liabilities acquired. The fair value of these intangible assets and liabilities is estimated based on management's assessment, including determination of appropriate valuation technique and consideration of any third party appraisals, when necessary. Significant estimates in valuing intangible assets and liabilities acquired include, but are not limited to, future expected cash flows associated with the acquired asset or liability, expected life and discount rates. The excess purchase price over the estimated fair values of the assets acquired and liabilities assumed is recognized as goodwill. Goodwill is recorded by the Company’s reporting units based on the acquisitions made by each. Goodwill is evaluated for impairment annually and more frequently if indicators of impairment arise. In evaluating goodwill for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not (that is, likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying value (including goodwill). If the Company concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, then no further testing is required. However, if the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the two-step goodwill impairment test is performed to identify a potential goodwill impairment and measure the amount of impairment to be recognized, if any.
The annual testing date for goodwill allocated to the Sterling Jewelers reporting unit is the last day of the fourth quarter. The annual testing date for goodwill allocated to the reporting units associated with the Zale division acquisition and the Other reporting unit is May 31. There have been no goodwill impairment charges recorded during the fiscal periods presented in the consolidated financial statements. If future economic conditions are different than those projected by management, future impairment charges may be required.
Intangible assets with definite lives are amortized and reviewed for impairment whenever events or circumstances indicate that the carrying amount of the asset may not be recoverable. If the estimated undiscounted future cash flows related to the asset are less than the carrying amount, the Company recognizes an impairment charge equal to the difference between the carrying value and the estimated fair value, usually determined by the estimated discounted future cash flows of the asset.
Intangible assets with indefinite lives are reviewed for impairment each year in the second quarter and may be reviewed more frequently if certain events occur or circumstances change. The Company first performs a qualitative assessment to determine whether it is more likely than not that the indefinite-lived intangible asset is impaired. If the Company determines that it is more likely than not that the fair value of the asset is less than its carrying amount, the Company estimates the fair value, usually determined by the estimated discounted future cash flows of the asset, compares that value with its carrying amount and records an impairment charge, if any. If future economic conditions are different than those projected by management, future impairment charges may be required.
See Note 13 for additional discussion of the Company’s goodwill and intangibles.
(p) Derivatives and hedge accounting
The Company enters into various types of derivative instruments to mitigate certain risk exposures related to changes in commodity costs and foreign exchange rates. Derivative instruments are recorded in the consolidated balance sheets at fair value, as either assets or liabilities, with an offset to net income or other comprehensive income ("OCI"), depending on whether the derivative qualifies as an effective hedge.
If a derivative instrument meets certain criteria, it may be designated as a cash flow hedge on the date it is entered into. For cash flow hedge transactions, the effective portion of the changes in fair value of the derivative instrument is recognized directly in equity as a component of AOCI and is recognized in the consolidated income statements in the same period(s) and on the same financial statement line in which the hedged item affects net income. Amounts excluded from the effectiveness calculation and any ineffective portions of the change in fair value of the derivatives are recognized immediately in other operating income, net in the consolidated income statements. In addition, gains and losses on derivatives that do not qualify for hedge accounting are recognized immediately in other operating income, net.
In the normal course of business, the Company may terminate cash flow hedges prior to the occurrence of the underlying forecasted transaction. For cash flow hedges terminated prior to the occurrence of the underlying forecasted transaction, management monitors the probability of the associated forecasted cash flow transactions to assess whether any gain or loss recorded in AOCI should be immediately recognized in net income. Cash flows from derivative contracts are included in net cash provided by operating activities.
See Note 16 for additional discussion of the Company’s derivatives and hedge activities.
(q) Employee Benefits
Signet operates a defined benefit pension plan in the UK (the “UK Plan”) which ceased to admit new employees effective April 2004. The UK Plan provides benefits to participating eligible employees. Beginning in Fiscal 2014, a change to the benefit structure was implemented and members’ benefits that accumulate after that date are now based upon career average salaries, whereas previously, all benefits were based on salaries at retirement. The UK Plan’s assets are held by the UK Plan.
The net periodic pension cost of the UK Plan is measured on an actuarial basis using the projected unit credit method and several actuarial assumptions, the most significant of which are the discount rate and the expected long-term rate of return on plan assets. Other material assumptions include rates of participant mortality, the expected long-term rate of compensation and pension increases and rates of employee attrition. Gains and losses occur when actual experience differs from actuarial assumptions. If such gains or losses exceed 10% of the greater of plan assets or plan liabilities, Signet amortizes those gains or losses over the average remaining service period of the employees. The net periodic pension cost is charged to selling, general and administrative expenses in the income statement.
The funded status of the UK Plan is recognized on the balance sheet, and is the difference between the fair value of plan assets and the benefit obligation measured at the balance sheet date. Gains or losses and prior service costs or credits that arise and not included as components of net periodic pension cost are recognized, net of tax, in OCI.
Signet also operates a defined contribution pension plan in the UK and sponsors a defined contribution retirement savings plan in the US. Contributions made by Signet to these pension arrangements are charged primarily to selling, general and administrative expenses in the income statement as incurred.
See Note 18 for additional discussion of Signet’s employee benefits.
(r) Borrowing costs
Borrowings include interest bearing bank loans, accounts receivable securitization program and bank overdrafts. Borrowing costs are capitalized and amortized into interest expense over the contractual term of the related loan.
See Note 19 for additional discussion of the Company’s borrowing costs.
(s) Share-based compensation
Signet measures share-based compensation cost for awards classified as equity at the grant date based on the estimated fair value of the award and recognizes the cost as an expense on a straight-line basis (net of estimated forfeitures) over the requisite service period of employees. Certain share plans include a condition whereby vesting is contingent on growth exceeding a given target, and therefore awards granted with this condition are considered to be performance-based awards.
Signet estimates fair value using a Black-Scholes model for awards granted under the Omnibus Plan and the binomial valuation model for awards granted under the Share Saving Plans. Deferred tax assets for awards that result in deductions on the income tax returns of subsidiaries are recorded by Signet based on the amount of compensation cost recognized and the subsidiaries’ statutory tax rate in the jurisdiction in which it will receive a deduction. Differences between the deferred tax assets recognized for financial reporting purposes and the actual tax deduction reported on the subsidiaries’ income tax return are recorded in additional paid-in-capital (if the tax deduction exceeds the deferred tax asset) or in the income statement (if the deferred tax asset exceeds the tax deduction and no additional paid-in-capital exists from previous awards).
Share-based compensation is primarily recorded in selling, general and administrative expenses in the income statement, along with the relevant salary cost.
See Note 23 for additional discussion of the Company’s share-based compensation plans.
(t) Contingent liabilities
Provisions for contingent liabilities are recorded for probable losses when management is able to reasonably estimate the loss or range of loss. When it is reasonably possible that a contingent liability may result in a loss or additional loss, the range of the loss is disclosed.
See Note 24 for additional discussion of the Company’s contingencies.
(u) Leases
Signet's operating leases generally include retail store locations. Certain operating leases include predetermined rent increases, which are charged to the income statement on a straight-line basis over the lease term, including any construction period or other rental holiday. Other amounts paid under operating leases, such as contingent rentals, taxes and common area maintenance, are charged to the income statement as incurred. Premiums paid to acquire short-term leasehold properties and inducements to enter into a lease are recognized on a straight-line basis over the lease term. In addition, certain leases provide for contingent rentals that are not measurable at inception. These contingent rentals are primarily based on a percentage of sales in excess of a predetermined level. These amounts are excluded from minimum rent and are included in the determination of rent expense when it is probable that the expense has been incurred and the amount is reasonably estimable.
See Note 24 for additional discussion of the Company’s leases.
(v) Common shares
New shares are recorded in Common Shares at their par value when issued. The excess of the issue price over the par value is recorded in additional paid-in capital.
(w) Dividends
Dividends are reflected as a reduction of retained earnings in the period in which they are formally declared by the Board of Directors (the “Board”).
New Accounting Pronouncements
New accounting pronouncements
New accounting pronouncements
New accounting pronouncements adopted during the period
Presentation of unrecognized tax benefit
In July 2013, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The new guidance requires, unless certain conditions exist, an unrecognized tax benefit to be presented as a reduction to a deferred tax asset in the financial statements for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. Signet adopted this guidance effective for the first quarter ended May 3, 2014 and the implementation of this accounting pronouncement did not have an impact on Signet’s condensed consolidated financial statements.
New accounting pronouncements to be adopted in future periods
Revenue recognition
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The new guidance affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU No. 2014-09 provides alternative methods of retrospective adoption and is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is not permitted. Signet is currently assessing the impact, if any, as well as the available methods of implementation, that the adoption of this accounting pronouncement will have on its consolidated financial statements.
Share-based compensation
In June 2014, the FASB issued ASU No. 2014-12, “Compensation — Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” The new guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. ASU No. 2014-12 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015, with early adoption permitted. Signet is currently assessing the impact, if any, that the adoption of this accounting pronouncement will have on its consolidated financial statements.
Acquisitions
Acquisitions
Acquisitions
Botswana diamond polishing factory
On November 4, 2013, Signet acquired a diamond polishing factory in Gaborone, Botswana for $9.1 million. The acquisition expands the Company’s long-term diamond sourcing capabilities and provides resources for the Company to cut and polish stones.
The transaction was accounted for as a business combination during the fourth quarter of Fiscal 2014. During the second quarter of Fiscal 2015, the Company finalized the valuation of net assets acquired. There were no material changes to the valuation of net assets acquired from the initial allocation reported during the fourth quarter of Fiscal 2014. The total consideration paid by the Company was funded through existing cash and allocated to the net assets acquired based on the final fair values as follows: property, plant and equipment acquired of $5.5 million and goodwill of $3.6 million. See Note 13 for additional information related to goodwill. None of the goodwill is deductible for income tax purposes.
The results of operations related to the acquired diamond polishing factory are reported within the Other reportable segment of Signet’s consolidated results. Pro forma results of operations have not been presented, as the impact to the Company’s consolidated financial results was not material.
Zale Corporation
On May 29, 2014, the Company acquired 100% of the outstanding shares of Zale Corporation, making the entity a wholly-owned consolidated subsidiary of Signet. Under the terms of the Agreement and Plan of Merger, Zale Corporation shareholders received $21 per share in cash for each outstanding share of common stock and the vesting, upon consummation of the Acquisition, of certain outstanding Zale Corporation restricted stock units and stock options, which converted into the right to receive the merger consideration of $1,458.0 million, including $478.2 million to extinguish Zale Corporation’s existing debt. The Acquisition was funded by the Company through existing cash and the issuance of $1,400.0 million of long-term debt, including: (a) $400.0 million of senior unsecured notes due in 2024, (b) $600.0 million of two-year revolving asset-backed variable funding notes, and (c) a $400.0 million five-year senior unsecured term loan facility. See note 19 for additional information related to the Company’s long-term debt instruments.
The transaction was accounted for as a business combination during the second quarter of Fiscal 2015. The Acquisition aligns with the Company’s strategy to diversify businesses and expand its footprint. The following table summarizes the consideration transferred in conjunction with the Acquisition.
Calculation of consideration
(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

Under the acquisition method of accounting, the identifiable assets acquired and liabilities assumed are recorded at acquisition date fair values. The following table summarizes the preliminary fair values identified for the assets acquired and liabilities assumed in the Acquisition as of May 29, 2014:
(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

 
$


(1) Includes loans and overdrafts, accounts payable, income taxes payable, accrued expenses and other current liabilities.
Since the Acquisition, the Company made certain adjustments to the amounts recorded for identifiable assets acquired and liabilities assumed to more accurately reflect the fair value. The fair value of the net deferred tax liabilities acquired decreased by $36.1 million in conjunction with the finalization of the acquired entity’s tax return, and adjustments to fair values of the financial reporting basis of assets and liabilities acquired to which the deferred tax assets and liabilities relate. The net impact of all revisions to fair values that have been identified since the Acquisition in the second quarter of Fiscal 2015 to the fair value of net assets acquired was a $25.7 million increase in net assets with a corresponding decrease in goodwill. There was no material impact on previously reported financial information as a result of these adjustments. During the fourth quarter of Fiscal 2015, the Company finalized the valuation of net assets acquired.
The excess of the purchase price over the fair value of identifiable assets acquired and liabilities assumed was recognized as goodwill. As of January 31, 2015, the Company has allocated the goodwill attributable to the Acquisition to its reporting units. The goodwill attributable to the Acquisition is not deductible for tax purposes. Since the date of the Acquisition, the operating results for the acquired business were as follows:
(in millions)
May 29, 2014 to January 31, 2015
Sales
$
1,215.6

Operating loss
$
(8.2
)
Net loss
$
(6.5
)
The following unaudited consolidated pro forma information summarizes the results of operations of the Company as if the Acquisition and related issuance of $1,400.0 million of long-term debt (see Note 19) had occurred as of February 2, 2013. The unaudited consolidated pro forma financial information was prepared in accordance with the acquisition method of accounting under existing standards and is not necessarily indicative of the results of operations that would have occurred if the Acquisition had been completed on the date indicated, nor is it indicative of the future operating results of the Company.
(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


The unaudited pro forma information gives effect to actual operating results prior to the Acquisition and has been adjusted with respect to certain aspects of the Acquisition to reflect the following:
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.
The unaudited pro forma results do not reflect future events that either have occurred or may occur after the Acquisition, including, but not limited to, the anticipated realization of expected operating synergies in subsequent periods. They also do not give effect to acquisition-related costs that the Company expects to incur in connection with the Acquisition, including, but not limited to, additional professional fees, employee integration, retention, and severance costs.
Segment Information
Segment information
Segment information
Financial information for each of Signet’s reportable segments is presented in the tables below. Signet's chief operating decision maker utilizes sales and operating income, after the elimination of any inter-segment transactions, to determine resource allocations and performance assessment measures. Signet’s sales are derived from the retailing of jewelry, watches, other products and services as generated though the management of its four reportable segments: Sterling Jewelers division, the UK Jewelry division and the Zale division, which consists of the Zale Jewelry and the Piercing Pagoda segments.
The Sterling Jewelers division operated in all 50 states. Its stores operate nationally in malls and off-mall locations as Kay and regionally under a number of well-established mall-based brands. Destination superstores operate nationwide as Jared The Galleria Of Jewelry (“Jared”).
The Zale division operated jewelry stores (Zale Jewelry) and kiosks (Piercing Pagoda), located primarily in shopping malls throughout the US, Canada and Puerto Rico. Zale Jewelry includes national brands Zales Jewelers, Zales Outlet and Peoples Jewellers, along with regional brands Gordon’s Jewelers and Mappins Jewellers. Piercing Pagoda operates through mall-based kiosks.
The UK Jewelry division operated stores in the UK, Republic of Ireland and Channel Islands. Its stores operate in major regional shopping malls and prime ‘High Street’ locations (main shopping thoroughfares with high pedestrian traffic) as “H.Samuel,” “Ernest Jones,” and “Leslie Davis.”
A separate reportable segment, “Other,” consists of all non-reportable operating segments including subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones and corporate items that are below the quantifiable threshold for separate disclosure as a reportable 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

(1) Includes external customer revenue of $205.5 million from Canadian operations.
(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.
n/a Not applicable as Zale division was acquired on May 29, 2014. See Note 3 for additional information.





(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

n/a Not applicable as Zale division was acquired on May 29, 2014. See Note 3 for additional information.
Earnings Per Share
Earnings per share
Earnings per share
(in millions, except per share amounts)
Fiscal 2015
 
Fiscal 2014
 
Fiscal 2013
Net income
$
381.3

 
$
368.0

 
$
359.9

Basic weighted average number of shares outstanding
79.9

 
80.2

 
82.3

Dilutive effect of share awards
0.3

 
0.5

 
0.5

Diluted weighted average number of shares outstanding
80.2

 
80.7

 
82.8

Earnings per share – basic
$
4.77

 
$
4.59

 
$
4.37

Earnings per share – diluted
$
4.75

 
$
4.56

 
$
4.35


The basic weighted average number of shares excludes non-vested time-based restricted shares, shares held by the Employee Stock Ownership Trust (“ESOT”) and treasury shares. Such shares are not considered outstanding and do not qualify for dividends, except for time-based restricted shares for which dividends are earned and payable by the Company subject to full vesting. The effect of excluding these shares is to reduce the average number of shares in Fiscal 2015 by 7,281,854 (Fiscal 2014: 6,961,632; Fiscal 2013: 4,882,625). The calculation of fully diluted EPS for Fiscal 2015 excludes share awards of 24,378 shares (Fiscal 2014: 70,447 share awards; Fiscal 2013: 192,374 share awards) on the basis that their effect would be anti-dilutive.
Common Shares, Treasury Shares, Reserves and Dividends
Common Shares, Treasury Shares, Reserves and Dividends
Common shares, treasury shares, reserves and dividends
Common Shares
The par value of each Common Share is 18 cents. The consideration received for Common Shares relating to options issued during the year was $6.1 million (Fiscal 2014: $9.3 million; Fiscal 2013: $21.6 million).
Treasury shares
Signet may from time to time repurchase common shares under various share repurchase programs authorized by Signet’s Board. Repurchases may be made in the open market, through block trades or otherwise. The timing, manner, price and amount of any repurchases will be determined by the Company at its discretion, and will be subject to economic and market conditions, stock prices, applicable legal requirements, and other factors. The repurchase programs are funded through Signet’s existing cash reserves and liquidity sources. Repurchased shares are held as treasury shares and may be used by Signet for general corporate purposes.
Treasury shares represent the cost of shares that the Company purchased in the market under the applicable authorized repurchase program, shares forfeited under the Omnibus Incentive Plan, and those previously held by the ESOT to satisfy options under the Company’s share option plans.
Shares held in treasury by the Company were 6,933,684 and 6,954,596 for Fiscal 2015 and Fiscal 2014, respectively. Shares were reissued in the amounts of 309,305 and 437,913, net of taxes and forfeitures, in Fiscal 2015 and Fiscal 2014, respectively, to satisfy awards outstanding under existing share based compensation plans. The share repurchase activity is outlined in the table below:
 
Amount
authorized
 
Fiscal 2015
 
Fiscal 2014
 
Fiscal 2013
 
 
 
Shares
repurchased
 
Amount
repurchased
 
Average
repurchase
price per
share
 
Shares
repurchased
 
Amount
repurchased
 
Average
repurchase
price per
share
 
Shares
repurchased
 
Amount
repurchased
 
Average
repurchase
price per
share
 
(in millions)
 
 
 
(in millions)
 
 
 
 
 
(in millions)
 
 
 
 
 
(in millions)
 
 
2013 Program (1)
$
350.0

 
288,393

 
$
29.8

 
$
103.37

 
808,428

 
54.6

 
$
67.54

 
n/a

 
n/a

 
n/a

2011 Program (2)
$
350.0

 
n/a

 
n/a

 
n/a

 
749,245

 
50.1

 
66.92

 
6,425,296

 
$
287.2

 
$
44.70

Total
 
 
288,393

 
$
29.8

 
$
103.37

 
1,557,673

 
104.7

 
$
67.24

 
6,425,296

 
$
287.2

 
$
44.70

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) On June 14, 2013, the Board authorized the repurchase of up to $350 million of Signet’s common shares (the “2013 Program”). The 2013 Program may be suspended or discontinued at any time without notice. The 2013 Program had $265.6 million remaining as of January 31, 2015.
(2) In October 2011, the Board authorized the repurchase of up to $300 million of Signet’s common shares (the “2011 Program”), which authorization was subsequently increased to $350 million. The 2011 Program was completed as of May 4, 2013.
n/a Not applicable.
Dividends
 
Fiscal 2015
 
Fiscal 2014
 
Fiscal 2013
(in millions, except per share amounts)
Cash dividend
per share
 
Total
dividends
 
Cash dividend
per share
 
Total
dividends
 
Cash dividend
per share
 
Total
dividends
First quarter
$
0.18

 
$
14.4

 
$
0.15

 
$
12.1

 
$
0.12

 
$
10.3

Second quarter
0.18

 
14.4

 
0.15

 
12.1

 
0.12

 
9.6

Third quarter
0.18

 
14.5

 
0.15

 
12.0

 
0.12

 
9.8

Fourth quarter(1)
0.18

 
14.4

(2) 
0.15

 
12.0

(2) 
0.12

 
9.8

Total
$
0.72

 
$
57.7

 
$
0.60

 
$
48.2

 
$
0.48

 
$
39.5

 
 
 
 
 
 
 
 
 
 
 
 
(1) Signet’s dividend policy results in the dividend payment date being a quarter in arrears from the declaration date. As a result, the dividend declared in the fourth quarter of each fiscal year is paid in the subsequent fiscal year. The dividends are reflected in the consolidated statement of cash flows upon payment.
(2) As of January 31, 2015 and February 1, 2014, $14.4 million and $12.0 million, respectively, has been recorded in accrued expenses and other current liabilities in the consolidated balance sheets reflecting the cash dividends declared for the fourth quarter of Fiscal 2015 and Fiscal 2014, respectively.
In addition, on March 25, 2015, Signet’s Board of Directors declared a quarterly dividend of $0.22 per share on its Common Shares. This dividend will be payable on May 27, 2015 to shareholders of record on May 1, 2015, with an ex-dividend date of April 30, 2015.
Other reserves
Other reserves consist of special reserves and a capital redemption reserve established in accordance with the laws of England and Wales. The Predecessor Company (Signet Group plc prior to the reorganization that was effected on September 11, 2008) established a special reserve prior to 1997 in connection with reductions in additional paid-in capital, which can only be used to write off existing goodwill resulting from acquisitions and otherwise only for purposes permitted for share premium accounts under the laws of England and Wales. The capital redemption reserve has arisen on the cancellation of previously issued Common Shares and represents the nominal value of those shares canceled.
Reclassification
During the second quarter of Fiscal 2015, $234.8 million was reclassified from other reserves within shareholders’ equity to retained earnings as the restrictions related to this amount were released. The presentation in previous periods has been adjusted to conform to the current period presentation.
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss)
Accumulated other comprehensive income (loss)
The following tables present the changes in AOCI by component and the reclassifications out of AOCI, net of tax:
 
 
 
 
 
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
)

 The amounts reclassified from AOCI were as follows:
 
 
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.
Income Taxes
Income taxes
Income taxes
(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


As the statutory rate of corporation tax in Bermuda is 0%, the differences between the US federal income tax rate and the effective tax rates for Signet have been presented below:
 
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
 %

In Fiscal 2015, Signet's effective tax rate was lower than the US federal income tax rate primarily due to the impact of Signet's global reinsurance and financing arrangements utilized to fund the acquisition of Zale. Signet’s future effective tax rate is dependent on changes in the geographic mix of income and the movement in foreign exchange translation rates.
Deferred tax assets (liabilities) consisted of the following:
 
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


As of January 31, 2015, Signet had deferred tax assets associated with net operating loss carry forwards of $69.4 million, which are subject to ownership change limitations rules under Section 382 of the Internal Revenue Code and various US state regulations, and expire between 2015 and 2033. Deferred tax assets associated with foreign tax credits total $14.3 million as of January 31, 2015 and expire between 2015 and 2024. Additionally, Signet had foreign gross capital loss carry forwards of $68.0 million (Fiscal 2014: $74.2 million), which are only available to offset future capital gains, if any, over an indefinite period.
The increase in the total valuation allowance in Fiscal 2015 was $7.5 million (Fiscal 2014: $0.7 million net decrease; Fiscal 2013: $3.6 million net decrease). The valuation allowance primarily relates to foreign capital loss carry forwards, foreign tax credits and net operating losses that, in the judgment of management, are not more likely than not to be realized.
Signet believes that it is more likely than not that deferred tax assets not subject to a valuation allowance as of January 31, 2015 will be offset where permissible by deferred tax liabilities or realized on future tax returns, primarily from the generation of future taxable income.
Signet has business activity in all states within the US and files income tax returns for the US federal jurisdiction and all applicable states. Signet also files income tax returns in the UK, Canada and certain other foreign jurisdictions. Signet is subject to examinations by the US federal and state and Canadian tax authorities for tax years ending after November 1, 2008 and is subject to examination by the UK tax authority for tax years ending after January 31, 2012.
As of January 31, 2015, Signet had approximately $11.4 million of unrecognized tax benefits in respect to uncertain tax positions. The unrecognized tax benefits increased by $4.3 million in Fiscal 2015 related to positions taken by Zale Corporation prior to the Acquisition. The unrecognized tax benefits relate primarily to financing arrangements and intra-group charges which are subject to different and changing interpretations of tax law. If all of these unrecognized tax benefits were settled in Signet's favor, the effective income tax rate would be favorably impacted by $10.5 million.
Signet recognizes accrued interest and, where appropriate, penalties related to unrecognized tax benefits within income tax expense. As of January 31, 2015, Signet had accrued interest of $2.1 million. The accrued interest increased by $1.4 million during Fiscal 2015 related to tax positions taken by Zale Corporation prior to the Acquisition. Signet had $0.8 million of accrued penalties as of January 31, 2015, all of which related to tax positions taken by Zale Corporation prior to the Acquisition.
Over the next twelve months management believes that it is reasonably possible that there could be a reduction of substantially all of the unrecognized tax benefits as of January 31, 2015 due to settlement of the uncertain tax positions with the tax authorities.
The following table summarizes the activity related to unrecognized tax benefits:
(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

Other Operating Income, Net
Other operating income, net
Other operating income, net
(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

Accounts Receivable, Net
Accounts receivable, net
Accounts receivable, net
Signet’s accounts receivable primarily consist of US customer in-house financing receivables. The accounts receivable portfolio consists of a population that is of similar characteristics and is evaluated collectively for impairment.
(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


Signet grants credit to customers based on a variety of credit quality indicators, including consumer financial information and prior payment experience. On an ongoing basis, management monitors the credit exposure based on past due status and collection experience, as it has found a meaningful correlation between the past due status of customers and the risk of loss.
Other accounts receivable is comprised primarily of gross accounts receivable relating to the insurance loss replacement business in the UK Jewelry division of $13.7 million (Fiscal 2014: $12.8 million), with a corresponding valuation allowance of $0.5 million (Fiscal 2014: $0.3 million).
The allowance for credit losses on Sterling Jewelers customer in-house finance receivables is shown below:
(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


Net bad debt expense is defined as the provision expense less recoveries.
Credit quality indicator and age analysis of past due Sterling Jewelers customer in-house finance receivables are shown below:
   
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
%

Securitized credit card receivables
The Sterling Jewelers division securitizes its credit card receivables through its Sterling Jewelers Receivables Master Note Trust established on May 15, 2014. See Note 19 for additional information on this asset-backed securitization facility.
Inventories
Inventories
Inventories
Signet held $434.6 million of consignment inventory at January 31, 2015 (February 1, 2014: $312.6 million), which is not recorded on the balance sheet. The principal terms of the consignment agreements, which can generally be terminated by either party, are such that Signet can return any or all of the inventory to the relevant suppliers without financial or commercial penalties and the supplier can adjust the inventory prices prior to sale.
(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


Inventory reserves
(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

(1) Includes the impact of foreign exchange translation between opening and closing balance sheet dates.
Property, Plant and Equipment, Net
Property, plant and equipment, net
Property, plant and equipment, net
(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


Depreciation and amortization expense for Fiscal 2015 was $140.1 million (Fiscal 2014: $110.2 million; Fiscal 2013: $99.4 million). The expense for Fiscal 2015 includes $0.8 million (Fiscal 2014: $0.7 million; Fiscal 2013: $2.6 million) for the impairment of assets.
Goodwill and Intangibles
Goodwill and intangibles
Goodwill and intangibles
The following table summarizes the Company’s goodwill by reportable segment:
(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


The Company's reporting units align with the operating segments disclosed in Note 4. In addition, see Note 3 for additional discussion of the Company’s goodwill recorded during Fiscal 2015 and Fiscal 2014. There have been no goodwill impairment losses recorded during the fiscal periods presented in the consolidated income statements. If future economic conditions are different than those projected by management, future impairment charges may be required.
Intangibles
Intangibles acquired as a result of the Acquisition, see Note 3, are indefinite and definite lived representing the Zale trade names, favorable leases, unfavorable leases and contract rights. In Fiscal 2015, the Zale trade names and favorable leases, net of $9.3 million of amortization, are included within the other assets financial statement line item on the consolidated balance sheets. Unfavorable leases, net of $9.7 million of amortization, are included within the other liabilities financial statement line item on the consolidated balance sheets. Amortization expense for intangibles is not applicable in Fiscal 2014 and Fiscal 2013. As of January 31, 2015, the remaining weighted-average amortization period for acquired definite-lived intangible assets and liabilities was 3 years and 4 years, respectively. The following table provides additional detail regarding the composition of intangibles.
 
 
 
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
)

Amortization expense relating to the intangible assets was $9.6 million in Fiscal 2015. The expected future amortization expense for intangible assets recorded at January 31, 2015 follows:
(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


The unfavorable leases and unfavorable contracts are classified as a liability and recognized over the term of the underlying terms. Amortization relating to the intangible liabilities was $23.7 million in Fiscal 2015. Expected future amortization for intangible liabilities recorded at January 31, 2015 follows:
(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

Other Assets
Other assets
Other assets
(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 addition, other current assets include deferred direct costs in relation to the sale of extended service plans (“ESP”) of $24.9 million as of January 31, 2015 (February 1, 2014: $21.9 million).
Investments
Investments
Investments
Investments in debt and equity securities acquired as a result of the Acquisition, see Note 3, are held by certain insurance subsidiaries and are reported as other assets in the accompanying consolidated balance sheets. Investments are recorded at fair value based on quoted market prices for identical or similar securities in active markets. All investments are classified as available-for-sale and include the following:
 
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


There were no material net realized gains or losses for the year ended January 31, 2015. Investments with a carrying value of $7.2 million were on deposit with various state insurance departments at January 31, 2015, as required by law.
Investments in debt securities outstanding as of January 31, 2015 mature as follows:
(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

Derivatives
Derivatives
Derivatives
Derivative transactions are used by Signet for risk management purposes to address risks inherent in Signet’s business operations and sources of financing. The main risks arising from Signet’s operations are market risk including foreign currency risk, commodity risk, liquidity risk, and interest rate risk. Signet uses these financial instruments to manage and mitigate these risks under policies reviewed and approved by the Board. Signet does not enter into derivative transactions for trading purposes.
Market risk
Signet generates revenues and incurs expenses in US dollars, Canadian dollars and British pounds. As a portion of the UK Jewelry purchases and the purchases made by the Canadian operations of the Zale division are denominated in US dollars, Signet enters into forward foreign currency exchange contracts, foreign currency option contracts, and foreign currency swaps to manage this exposure to the US dollar.
Signet holds a fluctuating amount of British pounds reflecting the cash generative characteristics of the UK Jewelry division. Signet’s objective is to minimize net foreign exchange exposure to the income statement on British pound denominated items through managing this level of cash, British pound denominated intra-entity balances and US dollar to British pound swaps. In order to manage the foreign exchange exposure and minimize the level of funds denominated in the British pound, dividends are paid regularly by British pound denominated subsidiaries to their immediate holding companies and excess British pounds are sold in exchange for US dollars.
Signet’s policy is to minimize the impact of precious metal commodity price volatility on operating results through the use of outright forward purchases of, or by entering into options to purchase, precious metals within treasury guidelines approved by the Board. In particular, Signet undertakes some hedging of its requirements for gold through the use of net zero-cost collar arrangements (a combination of call and put option contracts), forward contracts, and commodity purchasing, while fluctuations in the cost of diamonds are not hedged.
Liquidity risk
Signet’s objective is to ensure that it has access to, or the ability to generate sufficient cash from either internal or external sources in a timely and cost-effective manner to meet its commitments as they become due and payable. Signet manages liquidity risks as part of its overall risk management policy. Management produces forecasting and budgeting information that is reviewed and monitored by the Board. Cash generated from operations and external financing are the main sources of funding supplementing Signet’s resources in meeting liquidity requirements.
The main external sources of funding are an amended credit facility, senior unsecured notes, and securitized credit card receivables, as described in Note 19.
Interest rate risk
Signet may enter into various interest rate protection agreements in order to limit the impact of movements in interest rates on its cash or borrowings. There were no interest rate protection agreements outstanding at January 31, 2015 or February 1, 2014. See Note 19 for additional information regarding loans and long-term debt.
Credit risk and concentrations of credit risk
Credit risk represents the loss that would be recognized at the reporting date if counterparties failed to perform as contracted. Signet does not anticipate non-performance by counterparties of its financial instruments, except for customer in-house financing receivables as disclosed in Note 10 of which no single customer represents a significant portion of the Company’s receivable balance. Signet does not require collateral or other security to support cash investments or financial instruments with credit risk; however, it is Signet’s policy to only hold cash and cash equivalent investments and to transact financial instruments with financial institutions with a certain minimum credit rating. Management does not believe Signet is exposed to any significant concentrations of credit risk that arise from cash and cash equivalent investments, derivatives, or accounts receivable.
The following types of derivative financial instruments are utilized by Signet to mitigate certain risk exposures related to changes in commodity prices and foreign exchange rates:
Forward foreign currency exchange contracts (designated) — These contracts, which are principally in US dollars, are entered into to limit the impact of movements in foreign exchange rates on forecasted foreign currency purchases. The total notional amount of these foreign currency contracts outstanding as of January 31, 2015 was $23.5 million (February 1, 2014: $42.3 million). These contracts have been designated as cash flow hedges and will be settled over the next 12 months (February 1, 2014: 12 months).
Forward foreign currency exchange contracts (undesignated) — Foreign currency contracts not designated as cash flow hedges are used to hedge currency flows through Signet’s bank accounts to mitigate Signet’s exposure to foreign currency exchange risk in its cash and borrowings. The total notional amount of these foreign currency contracts outstanding as of January 31, 2015 was $40.3 million (February 1, 2014: $22.1 million).
Commodity forward purchase contracts and net zero-cost collar arrangements (designated) — These contracts are entered into to reduce Signet’s exposure to significant movements in the price of the underlying precious metal raw material. The total notional amount of these commodity derivative contracts outstanding as of January 31, 2015 was for approximately 81,000 ounces of gold (February 1, 2014: 50,000 ounces). These contracts have been designated as cash flow hedges and will be settled over the next 11 months (February 1, 2014: 12 months).
The bank counterparties to the derivative instruments expose Signet to credit-related losses in the event of their non-performance. However, to mitigate that risk, Signet only contracts with counterparties that meet certain minimum requirements under its counterparty risk assessment process. As of January 31, 2015, Signet believes that this credit risk did not materially change the fair value of the foreign currency or commodity contracts.
The following table summarizes the fair value and presentation of derivative instruments in the consolidated balance sheets:
 
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
)

Derivatives designated as cash flow hedges
The following table summarizes the pre-tax gains (losses) recorded in AOCI for derivatives designated in cash flow hedging relationships:
(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
)
 
 
 
 
 
 
(1) As of January 31, 2015 and February 1, 2014, losses recorded in AOCI include $(0.5) million and $18.2 million, respectively, related to commodity contracts terminated prior to contract maturity in Fiscal 2014.
The following tables summarize the effect of derivative instruments designated as cash flow hedges in OCI and the consolidated income statements:
Foreign currency contracts
(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
)
Commodity contracts
(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
)

There was no material ineffectiveness related to the Company’s derivative instruments designated in cash flow hedging relationships for the years ended January 31, 2015 and February 1, 2014. Based on current valuations, the Company expects approximately $3.4 million of net pre-tax derivative gains to be reclassified out of AOCI into earnings within the next 12 months.
Derivatives not designated as hedging instruments
The following table presents the effects of the Company’s derivatives instruments not designated as cash flow hedges in the consolidated income statements:
 
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
)
Fair Value Measurements
Fair value measurements
Fair value measurement
The estimated fair value of Signet’s financial instruments held or issued to finance Signet’s operations is summarized below. Certain estimates and judgments were required to develop the fair value amounts. The fair value amounts shown below are not necessarily indicative of the amounts that Signet would realize upon disposition nor do they indicate Signet’s intent or ability to dispose of the financial instrument. Assets and liabilities that are carried at fair value are required to be classified and disclosed in one of the following three categories:
Level 1—quoted market prices in active markets for identical assets and liabilities
Level 2—observable market based inputs or unobservable inputs that are corroborated by market data
Level 3—unobservable inputs that are not corroborated by market data
Signet determines fair value based upon quoted prices when available or through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. The methods Signet uses to determine fair value on an instrument-specific basis are detailed below:
 
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
)

Investments in US Treasury securities and corporate equity securities are based on quoted market prices for identical instruments in active markets, and therefore were classified as a Level 1 measurement in the fair value hierarchy. Investments in US government agency securities and corporate bonds and notes are based on quoted prices for similar instruments in active markets, and therefore were classified as a Level 2 measurement in the fair value hierarchy. See Note 15 for additional information related to the Company’s available-for-sale investments. The fair value of derivative financial instruments has been determined based on market value equivalents at the balance sheet date, taking into account the current interest rate environment, foreign currency forward rates or commodity forward rates, and therefore were classified as a Level 2 measurement in the fair value hierarchy. See Note 16 for additional information related to the Company’s derivatives.
The carrying amounts of cash and cash equivalents, accounts receivable, other receivables, accounts payable, and accrued liabilities approximate fair value because of the short-term maturity of these amounts.
The fair value of long-term debt was determined using quoted market prices in inactive markets or discounted cash flows based upon current borrowing rates and therefore were classified as a Level 2 measurement in the fair value hierarchy. See Note 19 for classification between current and long-term debt. The carrying amount and fair value of outstanding debt at January 31, 2015 and February 1, 2014 were as follows:
 
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

 
$

 
$

Pension Plans
Pension plans
Pension plans
The UK Plan, which ceased to admit new employees from April 2004, is a funded plan with assets held in a separate trustee administered fund, which is independently managed. Signet uses January 31, 2015 and February 1, 2014 measurement dates in determining the UK Plan’s benefit obligation and fair value of plan assets.
The following tables provide information concerning the UK Plan as of and for the fiscal years ended January 31, 2015 and February 1, 2014:
(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


Items in AOCI not yet recognized as income (expense) in the income statement:
(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


The estimated actuarial loss and prior service credit for the UK Plan that will be amortized from AOCI into net periodic pension cost over the next fiscal year are $3.3 million and $(2.2) million, respectively.
The accumulated benefit obligation for the UK Plan was $245.2 million and $210.3 million at January 31, 2015 and February 1, 2014, respectively.
The components of net periodic pension cost and other amounts recognized in OCI for the UK Plan are as follows:
(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
%

The discount rate is based upon published rates for high-quality fixed-income investments that produce expected cash flows that approximate the timing and amount of expected future benefit payments.
The expected return on the UK Plan assets assumption is based upon the historical return and future expected returns for each asset class, as well as the target asset allocation of the portfolio of UK Plan assets.
The UK Plan’s investment strategy is guided by an objective of achieving a return on the investments, which is consistent with the long-term return assumptions and funding policy, to ensure the UK Plan obligations are met. The investment policy is to carry a balance of funds to achieve these aims. These funds carry investments in UK and overseas equities, diversified growth funds, UK corporate bonds, UK Gilts, and commercial property. The property investment is through a Pooled Pensions Property Fund that provides a diversified portfolio of property assets.
The target allocation for the UK Plan’s assets at January 31, 2015 was bonds 52%, diversified growth funds 35%, equities 8%, and property 5%. This allocation is consistent with the long-term target allocation of investments underlying the UK Plan’s funding strategy.
The fair value of the assets in the UK Plan at January 31, 2015 and February 1, 2014 are required to be classified and disclosed in one of the following three categories:
Level 1—quoted market prices in active markets for identical assets and liabilities
Level 2—observable market based inputs or unobservable inputs that are corroborated by market data
Level 3—unobservable inputs that are not corroborated by market data
The methods Signet uses to determine fair value on an instrument-specific basis are detailed below:
 
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


Investments in diversified equity securities, diversified growth funds, and fixed income securities are in pooled funds. Investments are valued based on unadjusted quoted prices for each fund in active markets, where possible and, therefore, classified in Level 1 of the fair value hierarchy. If unadjusted quoted prices for identical assets are unavailable, investments are valued by the administrators of the funds. The valuation is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of units outstanding. The unit price is based on underlying investments which are generally either traded in an active market or are valued based on observable inputs such as market interest rates and quoted prices for similar securities and, therefore, classified in Level 2 of the fair value hierarchy.
The investment in property is in pooled funds valued by the administrators of the fund. The valuation is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of units outstanding. The unit price is based on underlying investments which are independently valued on a monthly basis. The investment in the property fund is subject to certain restrictions on withdrawals that could delay the receipt of funds by up to 16 months.
The table below sets forth changes in the fair value of the Level 3 investment assets in Fiscal 2015 and Fiscal 2014:
(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


The UK Plan does not hold any investment in Signet shares or in property occupied by or other assets used by Signet.
Signet contributed $4.2 million to the UK Plan in Fiscal 2015 and expects to contribute a minimum of $2.4 million to the UK Plan in Fiscal 2016. The level of contributions is in accordance with an agreed upon deficit recovery plan and based on the results of the actuarial valuation as of April 5, 2012.
The following benefit payments, which reflect expected future service, as appropriate, are estimated to be paid by the UK Plan:
(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


In June 2004, Signet introduced a defined contribution plan which replaced the UK Plan for new UK employees. The contributions to this plan in Fiscal 2015 were $1.8 million (Fiscal 2014: $1.0 million; Fiscal 2013: $0.7 million).
In the US, Signet sponsors a defined contribution 401(k) retirement savings plan for all eligible employees who meet minimum age and service requirements. The assets of this plan are held in a separate trust and Signet matches 50% of up to 6% of employee elective salary deferrals, subject to statutory limitations. Signet’s contributions to this plan in Fiscal 2015 were $7.6 million (Fiscal 2014: $7.1 million; Fiscal 2013: $6.5 million). The Sterling Jewelers division has also established two unfunded, non-qualified deferred compensation plans, one of which permits certain management and highly compensated employees to elect annually to defer all or a portion of their compensation and earn interest on the deferred amounts (“DCP”) and the other of which is frozen as to new participants and new deferrals. Beginning in April 2011, the DCP provided for a matching contribution based on each participant’s annual compensation deferral. The plan also permits employer contributions on a discretionary basis. In connection with these plans, Signet has invested in trust-owned life insurance policies and money market funds. The cost recognized in connection with the DCP in Fiscal 2015 was $2.6 million (Fiscal 2014: $2.4 million; Fiscal 2013: $2.1 million).
The fair value of the assets in the two unfunded, non-qualified deferred compensation plans at January 31, 2015 and February 1, 2014 are required to be classified and disclosed. Although these plans are not required to be funded by the Company, the Company may elect to fund the plans. The value and classification of these assets are as follows:
 
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

Loans, Overdrafts and Long-Term Debt
Loans, Overdrafts and Long-Term Debt
Loans, overdrafts and long-term debt
(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


Revolving credit facility and term loan (the "Credit Facility")
The Company has a $400 million senior unsecured multi-currency multi-year revolving credit facility agreement that was entered into in May 2011. The agreement was subsequently amended in May 2014 to extend the maturity date to 2019 and expand the agreement to include a new $400 million term loan. The $400 million five-year senior unsecured term loan requires the Company to make scheduled quarterly principal payments commencing on November 1, 2014 equal to the amounts per annum of the original principal amount of the term loan as follows: 5% in the first year, 7.5% in the second year, 10% in the third year, 12.5% in the fourth year and 15% in the fifth year after the initial payment date, with the balance due on May 27, 2019. As of January 31, 2015, $390.0 million remained outstanding on the term loan with a weighted average interest rate of 1.52% during Fiscal 2015.
Borrowings under the Credit Facility bear interest at a rate per annum equal to an applicable margin, plus, at the Company’s option, either (a) a base rate or (b) a LIBOR rate. The Credit Facility provides that the Company may voluntarily repay outstanding loans at any time without premium or penalty other than reimbursement of the lender’s redeployment and breakage costs in certain cases. In addition, the Credit Facility contains various customary representations and warranties, financial reporting requirements and other affirmative and negative covenants. As with the Company’s prior credit facility, the Company is required to maintain at all times a leverage ratio of no greater than 2.50 to 1.00 and a fixed charge coverage ratio of no less than 1.40 to 1.00, both determined as of the end of each fiscal quarter for the trailing twelve months.
Capitalized amendment fees of $0.9 million relating to the Credit Facility agreement signed in May 2011 were written-off in the year ended January 31, 2015 upon executing the amended credit agreement in May 2014. Capitalized fees relating to the amended Credit Facility of $6.7 million were incurred and paid during the year ended January 31, 2015. Amortization expense relating to these fees of $0.9 million were recorded as interest expense in the consolidated statements of operations for the year ended January 31, 2015.
At January 31, 2015 and February 1, 2014 there were no outstanding borrowings under the revolving credit facility. The weighted average interest rate was 1.14% during Fiscal 2015. The Company had stand-by letters of credit on the revolving credit facility of $25.4 million and $10.1 million as of January 31, 2015 and February 1, 2014, respectively, that reduce remaining availability under the revolving credit facility.
On February 19, 2014, Signet entered into a definitive agreement to acquire Zale Corporation and concurrently received commitments for an $800 million 364-day unsecured bridge facility to finance the transaction. The bridge facility contained customary fees and incurred interest on any borrowings drawn on the facility. In May 2014, Signet executed its Zale acquisition financing as described in Note 3, replacing the bridge facility commitments in addition to amending its Credit Facility as outlined above, issuing senior unsecured notes and securitizing credit card receivables. No amounts were drawn on the bridge facility commitments prior to replacement and fees of $4.0 million were incurred and capitalized. This agreement was subsequently replaced by the issuances of the long-term debt listed below, and therefore during Fiscal 2015, $4.0 million was recorded as interest expense in the consolidated statement of operations.
Issuance of senior unsecured notes due 2024
On May 19, 2014, Signet UK Finance plc (“Signet UK Finance”), a wholly owned subsidiary of the Company, issued $400 million aggregate principal amount of its 4.700% senior unsecured notes due in 2024 (the “Notes”). The Notes were issued under an effective registration statement previously filed with the SEC. Interest on the notes is payable semi-annually on June 15 and December 15 of each year, commencing December 15, 2014. The Notes are jointly and severally guaranteed, on a full and unconditional basis, by the Company and by certain of the Company’s wholly owned subsidiaries (such subsidiaries, the “Guarantors”). The Notes were issued pursuant to a base indenture among the Company, Signet UK Finance, the Guarantors and Deutsche Bank Trust Company Americas as trustee, with the indenture containing customary covenants and events of default provisions. The Company received proceeds from the offering of approximately $393.9 million, which were net of underwriting discounts, commissions and offering expenses.
Capitalized fees relating to the senior unsecured notes of $7.0 million were incurred and paid during the year ended January 31, 2015. Amortization expense relating to these fees of $0.5 million was recorded as interest expense in the consolidated statements of operations for the year ended January 31, 2015.
Asset-backed securitization facility
On May 15, 2014, the Company sold an undivided interest in certain credit card receivables to Sterling Jewelers Receivables Master Note Trust (the “Issuer”), a wholly-owned Delaware statutory trust and a wholly-owned indirect subsidiary of the Company and issued two-year revolving asset-backed variable funding notes to unrelated third party conduits pursuant to a master indenture dated as of November 2, 2001, as supplemented by the Series 2014-A indenture supplement dated as of May 15, 2014 among the Issuer, Sterling Jewelers Inc. ("SJI") and Deutsche Bank Trust Company Americas, the indenture trustee. Under terms of the notes, the Issuer has obtained $600 million of financing from the unrelated third party commercial paper conduits sponsored by JPMorgan Chase Bank, N.A., which indebtedness is secured by credit card receivables originated from time to time by SJI. The credit card receivables will ultimately be transferred to the Issuer and are serviced by SJI. Signet guarantees the performance by SJI of its obligations under the agreements associated with this financing arrangement. Borrowings under the asset-backed variable funding notes bear interest at a rate per annum equal to LIBOR plus an applicable margin. Payments received from customers for balances outstanding on securitized credit card receivables are utilized to repay amounts outstanding under the facility each period, while proceeds from the facility are received for incremental credit card receivables originated when the receivables are pledged to the Issuer. Such payments received from customers and proceeds from the facility are reflected on a gross basis in the condensed consolidated statements of cash flows. As of January 31, 2015, $600.0 million remained outstanding under the securitization facility with a weighted average interest rate of 1.50% during Fiscal 2015.
Capitalized fees relating to the asset-backed securitization facility of $2.8 million were incurred and paid as of January 31, 2015. Amortization expense relating to these fees of $0.9 million was recorded as interest expense in the consolidated statements of operations for the year ended January 31, 2015.
Other
As of January 31, 2015 and February 1, 2014, the Company was in compliance with all debt covenants.
As of January 31, 2015 and February 1, 2014, there were $71.6 million and $19.3 million in overdrafts, which represent issued and outstanding checks where no bank balances exist with the right of offset.
Accrued Expenses and Other Current Liabilities
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities
(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


Sales returns reserve included in accrued expenses above:
(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

(1) Net adjustment relates to sales returns previously provided for and changes in estimate and the impact of foreign exchange translation between opening and closing balance sheet dates.
Sterling Jewelers and Zale provide a product lifetime diamond guarantee as long as six-month inspections are performed and certified by an authorized store representative. Provided the customer has complied with the six-month inspection policy, the Company will replace, at no cost to the customer, any stone that chips, breaks or is lost from its original setting during normal wear. Management estimates the warranty accrual based on the lag of actual claims experience and the costs of such claims, inclusive of labor and material. Sterling Jewelers also provides a similar product lifetime guarantee on color gemstones. The warranty reserve for diamond and gemstone guarantee, included in accrued expenses and other current liabilities, and other non-current liabilities, is as follows:
(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

(1) Included within accrued expenses above.
Deferred Revenue
Deferred Revenue
Deferred revenue
Deferred revenue is comprised primarily of extended service plans (“ESP”) and voucher promotions and other as follows:
(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

ESP deferred revenue
(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

Other Liabilities-Non-Current
Other Liabilities-Non-Current
Other liabilities—non-current
(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


A lease loss reserve is recorded for the net present value of the difference between the contractual rent obligations and sublease income expected from the properties.
(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

(1) Includes the impact of foreign exchange translation between opening and closing balance sheet dates.
The cash expenditures on the remaining lease loss reserve are expected to be paid over the various remaining lease terms through 2023.
Share-Based Compensation
Share-Based Compensation
Share-based compensation
Signet operates several share-based compensation plans which can be categorized as the “Omnibus Plan,” “Share Saving Plans,” and the “Executive Plans.”
Impact on results
Share-based compensation expense and the associated tax benefits are as follows:
(in millions)
Fiscal 2015
 
Fiscal 2014
 
Fiscal 2013
Share-based compensation expense
$
12.1

 
$
14.4

 
$
15.7

Income tax benefit
$
(4.3
)
 
$
(5.2
)
 
$
(5.4
)

During the third quarter of Fiscal 2015, the Company issued a grant of performance-based restricted stock units (“RSUs”) under the Omnibus Plan. This grant occurred as part of the Signet Integration Incentive Plan (“IIP”), a transaction-related special incentive program that was designed to facilitate the integration of the Zale acquisition and to reward the anticipated efforts of key management personnel on both sides of the transaction. The RSUs vest, subject to continued employment, based upon actual gross synergies realized during the one year performance period compared to targeted gross synergy metrics established in the underlying grant agreement.
Unrecognized compensation cost related to awards granted under share-based compensation plans is as follows:
 
Unrecognized Compensation Cost
(in millions)
Fiscal 2015
 
Fiscal 2014
 
Fiscal 2013
Omnibus Plan
$
10.5

 
$
14.4

 
$
15.0

Share Saving Plans
3.3

 
2.9

 
2.9

IIP grant
4.0

 

 
0.0

Total
$
17.8

 
$
17.3

 
$
17.9

Weighted average period of amortization
1.7 years

 
1.8 years

 
1.7 years


As of April 2012, the Company opted to satisfy share option exercises and the vesting of restricted stock and restricted stock units (“RSUs”) under its plans with the issuance of treasury shares. Prior to April 2012, all share option exercises and award vestings were satisfied through the issuance of new shares.
Omnibus Plan
In Fiscal 2010, Signet adopted the Signet Jewelers Limited Omnibus Incentive Plan (the “Omnibus Plan”). Awards that may be granted under the Omnibus Plan include restricted stock, RSUs, stock options and stock appreciation rights. The Fiscal 2015, Fiscal 2014 and Fiscal 2013 awards granted under the Omnibus Plan have two elements, time-based restricted stock and performance-based restricted stock units. The time-based restricted stock has a three year cliff vesting period, subject to continued employment and has the same voting rights and dividend rights as Common Shares (which are payable once the shares have vested). Performance-based restricted stock units granted in Fiscal 2013 vest based upon actual cumulative operating income achieved for the relevant three year performance period compared to cumulative targeted operating income metrics established in the underlying grant agreement. In Fiscal 2014 and Fiscal 2015, an additional performance measure was included for the performance-based restricted stock units for senior executives, to include a return on capital employed (“ROCE”) metric during the relevant three year performance period compared to target levels established in the underlying grant agreements. The relevant performance is measured over a three year vesting period from the start of the fiscal year in which the award is granted. The Omnibus Plan permits the grant of awards to employees for up to 7,000,000 Common Shares.
The significant assumptions utilized to estimate the weighted-average fair value of awards granted under the Omnibus Plan are as follows:
 
Omnibus Plan
 
Fiscal 2015
 
Fiscal 2014
 
Fiscal 2013
Share price(1)
$
104.57

 
$
67.39

 
$
47.15

Risk free interest rate(1)
0.8
%
 
0.3
%
 
0.4
%
Expected term(1)
2.7 years

 
2.8 years

 
2.9 years

Expected volatility(1)
32.1
%
 
41.7
%
 
44.2
%
Dividend yield(1)
0.9
%
 
1.1
%
 
1.2
%
Fair value(1)
$
103.12

 
$
66.10

 
$
46.12

(1) Weighted average

The risk free interest rate is based on the US Treasury (for US-based award recipients) or UK Gilt (for UK-based award recipients) yield curve in effect at the grant date with remaining terms equal to the expected term of the awards. The expected term utilized is based on the contractual vesting period of the awards. The expected volatility is determined by calculating the historical volatility of Signet’s share price over the previous 10 years.
The Fiscal 2015 activity for awards granted under the Omnibus Plan is as follows:
 
Omnibus Plans
(in millions)
No. of
shares
 
Weighted
average
grant date
fair value
 
Weighted
average
remaining
contractual
life
 
Intrinsic
value
(1)
Outstanding at February 1, 2014
1.0

 
$
51.44

 
1.0 year
 
$
80.1

Fiscal 2015 activity:
 
 
 
 
 
 
 
Granted
0.3

 
103.12

 
 
 
 
Vested
(0.4
)
 
45.64

 
 
 
 
Lapsed
(0.2
)
 
72.26

 
 
 
 
Outstanding at January 31, 2015
0.7

 
$
70.69

 
1.0 year
 
$
78.6

(1) Intrinsic value for outstanding restricted stock and RSUs is based on the fair market value of Signet’s common stock on the last business day of the fiscal year.
The following table summarizes additional information about awards granted under the Omnibus Plan:
(in millions)
Fiscal 2015
 
Fiscal 2014
 
Fiscal 2013
Total intrinsic value of awards vested
$
43.9

 
$
25.3

 
$
28.5


Share Saving Plans
Signet has three share option savings plans (collectively “the Share Saving Plans”) available to employees as follows:
Employee Share Savings Plan, for US employees
Sharesave Plan, for UK employees
Irish Sharesave Plan for Republic of Ireland employees
The Share Saving Plans are compensatory and compensation expense is recognized over the requisite service period. In any 10 year period not more than 10% of the issued Common Shares of the Company from time to time may, in aggregate, be issued or be issuable pursuant to options granted under the Share Saving Plans or any other employees share plans adopted by Signet.
The Employee Share Savings Plan is a savings plan intended to qualify under US Section 423 of the US Internal Revenue Code and allows employees to purchase Common Shares at a discount of approximately 15% to the closing price of the New York Stock Exchange on the date of grant. Options granted under the Employee Share Savings Plan vest after 24 months and are generally only exercisable between 24 and 27 months of the grant date.
The Sharesave and Irish Sharesave Plans allow eligible employees to purchase Common Shares at a discount of approximately 20% below a determined market price based on the London Stock Exchange. The market price is determined as the average middle market price for the three trading days prior to the invitation date, or the market price on the day immediately preceding the participation date, or other market price agreed in writing, whichever is the higher value. Options granted under the Sharesave Plan and the Irish Sharesave Plan vest after 36 months and are generally only exercisable between 36 and 42 months from commencement of the related savings contract.
The significant assumptions utilized to estimate the weighted-average fair value of awards granted under the Share Saving Plans are as follows:
 
Share Saving Plans
 
Fiscal 2015
 
Fiscal 2014
 
Fiscal 2013
Share price(1)
$
114.93

 
$
72.65

 
$
49.89

Exercise price(1)
96.67

 
59.75

 
41.17

Risk free interest rate(1)
0.9
%
 
0.7
%
 
0.4
%
Expected term(1)
2.8 years

 
2.7 years

 
2.7 years

Expected volatility(1)
27.6
%
 
40.2
%
 
41.0
%
Dividend yield(1)
0.8
%
 
1.1
%
 
1.4
%
Fair value(1)
$
28.76

 
$
22.89

 
$
15.40


(1) Weighted average
The risk free interest rate is based on the US Treasury (for US-based award recipients) or UK Gilt (for UK-based award recipients) yield curve in effect at the grant date with remaining terms equal to the expected term of the awards. The expected term utilized is based on the contractual vesting period of the awards, inclusive of any exercise period available to award recipients after vesting. The expected volatility is determined by calculating the historical volatility of Signet’s share price over the previous 10 years.
The Fiscal 2015 activity for awards granted under the Share Saving Plans is as follows:
 
Share Saving Plans
(in millions)
No. of
shares
 
Weighted
average
exercise
price
 
Weighted
average
remaining
contractual
life
 
Intrinsic
value
(1)
Outstanding at February 1, 2014
0.3

 
$
44.06

 
1.7 years

 
$
9.4

Fiscal 2015 activity:
 
 
 
 
 
 
 
Granted
0.1

 
96.67

 
 
 
 
Exercised
(0.1
)
 
34.93

 
 
 
 
Lapsed
(0.1
)
 
52.64

 
 
 
 
Outstanding at January 31, 2015
0.2

 
$
69.05

 
1.9 years

 
$
11.0

Exercisable at February 1, 2014

 

 

 

Exercisable at January 31, 2015

 
$

 

 
$

(1) Intrinsic value for outstanding awards is based on the fair market value of Signet’s common stock on the last business day of the fiscal year.
The following table summarizes additional information about awards granted under the Share Saving Plans:
(in millions)
Fiscal 2015
 
Fiscal 2014
 
Fiscal 2013
Weighted average grant date fair value per share of awards granted
$
28.76

 
$
22.89

 
$
15.40

Total intrinsic value of options exercised
$
11.0

 
$
4.9

 
$
3.3

Cash received from share options exercised
$
4.3

 
$
2.9

 
$
2.7


Executive Plans
Signet operates three 2003 executive share plans (the “2003 Plans”), together referred to as the “Executive Plans.” Option awards under the Executive Plans are generally granted with an exercise price equal to the market price of the Company’s shares at the date of grant. Options under the Executive Plans are subject to certain internal performance criteria and cannot be exercised unless Signet achieves an annual rate of compound growth in earnings per share above the retail price index. The performance criteria are measured over a three year period from the start of the fiscal year in which the award is granted. Effective from Fiscal 2008, grants awarded under the 2003 Plans, other than for employee directors, are no longer subject to the performance criteria. Signet’s Executive Plans, which are shareholder approved, permit the grant of share options to employees for up to 10% of the issued Common Shares over any 10 year period, including any other employees share plans adopted by Signet or a maximum of 5% over ten years including discretionary option plans. A maximum of 8,568,841 shares may be issued pursuant to options granted to US and UK participants in the Executive Plans. During Fiscal 2014, the plan periods for the Executive Plans expired. As a result, no additional awards may be granted under the Executive Plans.
The Fiscal 2015 activity for awards granted under the Executive Plans is as follows:
 
Executive Plans
(in millions)
No. of
shares
 
Weighted
average
exercise
price
 
Weighted
average
remaining
contractual
life
 
Intrinsic
value
(1)
Outstanding at February 1, 2014
0.1

 
$
39.11

 
3.5 years
 
$
4.1

Fiscal 2015 activity:
 
 
 
 
 
 
 
Granted

 

 
 
 
 
Exercised

 
$
42.42

 
 
 
 
Lapsed

 

 
 
 
 
Outstanding at January 31, 2015
0.1

 
$
35.56

 
2.7 years
 
$
4.7

Exercisable at February 1, 2014
0.1

 
$
39.11

 
 
 
$
4.1

Exercisable at January 31, 2015
0.1

 
$
35.56

 
 
 
$
4.7

(1) Intrinsic value for outstanding awards is based on the fair market value of Signet’s common stock on the last business day of the fiscal year.
The following table summarizes additional information about awards granted under the Executive Plans:
(in millions)
Fiscal 2015
 
Fiscal 2014
 
Fiscal 2013
Total intrinsic value of options exercised
$
2.9

 
$
4.8

 
$
9.0

Cash received from share options exercised
$
1.8

 
$
6.3

 
$
18.9

Commitments and Contingencies
Commitments and contingencies
Commitments and contingencies
Operating leases
Signet occupies certain properties and holds machinery and vehicles under operating leases. Rental expense for operating leases is as follows:
(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


The future minimum operating lease payments for operating leases having initial or non-cancelable terms in excess of one year are as follows:
(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


Signet has entered into sale and leaseback transactions of certain properties. Under these transactions it continues to occupy the space in the normal course of business. Gains on the transactions are deferred and recognized as a reduction of rent expense over the life of the operating lease.
Contingent property liabilities
Approximately 44 UK property leases had been assigned by Signet at January 31, 2015 (and remained unexpired and occupied by assignees at that date) and approximately 19 additional properties were sub-leased at that date. Should the assignees or sub-tenants fail to fulfill any obligations in respect of those leases or any other leases which have at any other time been assigned or sub-leased, Signet or one of its UK subsidiaries may be liable for those defaults. The number of such claims arising to date has been small, and the liability, which is charged to the income statement as it arises, has not been material.
Capital commitments
At January 31, 2015 Signet has committed to spend $42.9 million (February 1, 2014: $42.3 million) related to capital commitments. These commitments principally relate to the expansion and renovation of stores.
Legal proceedings
As previously reported, in March 2008, a group of private plaintiffs (the “Claimants”) filed a class action lawsuit for an unspecified amount against Sterling Jewelers Inc. (“SJI”), a subsidiary of Signet, in the US District Court for the Southern District of New York alleging that US store-level employment practices are discriminatory as to compensation and promotional activities with respect to gender. In June 2008, the District Court referred the matter to private arbitration where the Claimants sought to proceed on a class-wide basis. The Claimants filed a motion for class certification and SJI opposed the motion. A hearing on the class certification motion was held in late February 2014. On February 2, 2015, the arbitrator issued a Class Determination Award in which she certified for a class-wide hearing Claimants’ disparate impact declaratory and injunctive relief class claim under Title VII, with a class period of July 22, 2004 through date of trial for the Claimants’ compensation claims and December 7, 2004 through date of trial for Claimants’ promotion claims. The arbitrator otherwise denied Claimants’ motion to certify a disparate treatment class alleged under Title VII, denied a disparate impact monetary damages class alleged under Title VII, and denied an opt-out monetary damages class under the Equal Pay Act. On February 9, 2015, Claimants filed an Emergency Motion To Restrict Communications With The Certified Class And For Corrective Notice. SJI filed its opposition to Claimants’ emergency motion on February 17, 2015, and a hearing was held on February 18, 2015. Claimants' motion was granted in part and denied in part in an order issued on March 16, 2015. Claimants filed a Motion for Reconsideration Regarding Title VII Claims for Disparate Treatment in Compensation on February 11, 2015. SJI filed its opposition to Claimants’ Motion for Reconsideration on March 4, 2015. Claimants’ reply was filed on March 16, 2015. No hearing has been scheduled. Claimants filed Claimants’ Motion for Conditional Certification of Claimants’ Equal Pay Act Claims and Authorization of Notice on March 6, 2015. SJI’s opposition is due on May 1, 2015 and Claimants’ reply is due on May 15, 2015. SJI filed with the US District Court for the Southern District of New York a Motion to Vacate the Arbitrator’s Class Certification Award on March 3, 2015. Claimants’ opposition is due on March 23, 2015 and SJI’s reply is due April 3, 2015. SJI’s motion is scheduled for hearing on April 20, 2015.
Also, as previously reported, on September 23, 2008, the US Equal Employment Opportunity Commission (“EEOC”) filed a lawsuit against SJI in the US District Court for the Western District of New York. The EEOC’s lawsuit alleges that SJI engaged in intentional and disparate impact gender discrimination with respect to pay and promotions of female retail store employees from January 1, 2003 to the present. The EEOC asserts claims for unspecified monetary relief and non-monetary relief against the Company on behalf of a class of female employees subjected to these alleged practices. Non-expert fact discovery closed in mid-May 2013. In September 2013, SJI made a motion for partial summary judgment on procedural grounds, which was referred to a Magistrate Judge. The Magistrate Judge heard oral arguments on the summary judgment motion in December 2013. On January 2, 2014, the Magistrate Judge issued his Report, Recommendation and Order, recommending that the Court grant SJI’s motion for partial summary judgment and dismiss the EEOC’s claims in their entirety. The EEOC filed its objections to the Magistrate Judge’s ruling and SJI filed its response thereto. The District Court Judge heard oral arguments on the EEOC’s objections to the Magistrate Judge’s ruling on March 7, 2014 and on March 11, 2014 entered an order dismissing the action with prejudice. On May 12, 2014 the EEOC filed its Notice of Appeal of the District Court Judge’s dismissal of the action to United States Court of Appeals for the Second Circuit.  The parties have fully briefed the appeal and oral argument is scheduled for May 5, 2015.
SJI denies the allegations of both parties and has been defending these cases vigorously. At this point, no outcome or possible loss or range of losses, if any, arising from the litigation is able to be estimated.
Prior to the Acquisition, Zale Corporation was a defendant in three purported class action lawsuits, Tessa Hodge v. Zale Delaware, Inc., d/b/a Piercing Pagoda which was filed on April 23, 2013 in the Superior Court of the State of California, County of San Bernardino; Naomi Tapia v. Zale Corporation which was filed on July 3, 2013 in the US District Court, Southern District of California; and Melissa Roberts v. Zale Delaware, Inc. which was filed on October 7, 2013 in the Superior Court of the State of California, County of Los Angeles. All three cases include allegations that Zale Corporation violated various wage and hour labor laws. Relief is sought on behalf of current and former Piercing Pagoda and Zale Corporation’s employees. The lawsuits seek to recover damages, penalties and attorneys’ fees as a result of the alleged violations. Without admitting or conceding any liability, the Company has reached a tentative agreement to settle the Hodge and Roberts matters for an immaterial amount. The deadline to opt-out of the proposed settlement was January 26, 2015 and final approval of the settlement was granted on March 9, 2015.
The Company is investigating the underlying allegations of the Naomi Tapia v. Zale Corporation matter and intends to vigorously defend its position against them. Based on information available at this point, the Company does not anticipate a material impact, if any, to Signet’s consolidated financial position, results of operations or cash flows for this matter.
Litigation Challenging the Company’s Acquisition of Zale Corporation
Five putative stockholder class action lawsuits challenging the Company’s acquisition of Zale Corporation were filed in the Court of Chancery of the State of Delaware: Breyer v. Zale Corp. et al., C.A. No. 9388-VCP, filed February 24, 2014; Stein v. Zale Corp. et al., C.A. No. 9408-VCP, filed March 3, 2014; Singh v. Zale Corp. et al., C.A. No. 9409-VCP, filed March 3, 2014; Smart v. Zale Corp. et al., C.A. No. 9420-VCP, filed March 6, 2014; and Pill v. Zale Corp. et al., C.A. No. 9440-VCP, filed March 12, 2014 (collectively, the “Actions”). Each of these Actions was brought by a purported former holder of Zale Corporation common stock, both individually and on behalf of a putative class of former Zale Corporation stockholders.
The Court of Chancery consolidated the Actions on March 25, 2014 (the “Consolidated Action”), and the plaintiffs filed a consolidated amended complaint on April 23, 2014, which named as defendants Zale Corporation, the members of the board of directors of Zale Corporation, the Company, and a merger-related subsidiary of the Company, and alleged that the Zale Corporation directors breached their fiduciary duties to Zale Corporation stockholders in connection with their consideration and approval of the merger agreement by failing to maximize stockholder value and agreeing to an inadequate merger price and to deal terms that deter higher bids. That complaint also alleged that the Zale Corporation directors issued a materially misleading and incomplete proxy statement regarding the merger and that Zale Corporation and the Company aided and abetted the Zale Corporation directors’ breaches of fiduciary duty. On May 23, 2014, the Court of Chancery denied plaintiffs’ motion for a preliminary injunction to prevent the consummation of the merger.
On September 30, 2014, the plaintiffs filed an amended complaint asserting substantially similar claims and allegations as the prior complaint. The amended complaint added Zale Corporation’s former financial advisor, Bank of America Merrill Lynch, as a defendant for allegedly aiding and abetting the Zale Corporation directors’ breaches of fiduciary duty. The amended complaint no longer names as defendants Zale Corporation or the Company’s merger-related subsidiary. The amended complaint seeks, among other things, rescission of the merger or damages, as well as attorneys’ and experts’ fees. As of February 18, 2015, the defendants’ motions to dismiss were fully submitted and a hearing is scheduled for May 20, 2015.
At this point, no outcome or possible loss or range of losses, if any, arising from the litigation is able to be estimated. 
Appraisal Litigation
Following the consummation of the Company’s acquisition of Zale Corporation, on June 4, 2014, two former Zale Corporation stockholders, who, combined, allege ownership of approximately 3.904 million shares of Zale Corporation’s common stock, filed a petition for appraisal pursuant to 8 Del. C. § 262 in the Court of Chancery of the State of Delaware, captioned Merion Capital L.P. et al. v. Zale Corp., C.A. No. 9731-VCP. On August 26, 2014, another former Zale Corporation stockholder, who alleges ownership of approximately 2.450 million shares of Zale Corporation’s common stock, filed a second petition for appraisal, captioned TIG Arbitrage Opportunity Fund I, L.P. v. Zale Corp., C.A. No. 10070-VCP . On September 24, 2014, several former Zale Corporation stockholders, who allege ownership of approximately 2.427 million shares of Zale Corporation’s common stock, filed a third petition for appraisal, captioned The Gabelli ABC Fund et al. v. Zale Corp., C.A. No. 10162-VCP. On October 8, 2014, the Court of Chancery consolidated the Merion Capital, TIG, and Gabelli actions for all purposes (the “Appraisal Action”). Petitioners in the Appraisal Action seek a judgment awarding them, among other things, the fair value of their Zale Corporation shares plus interest.
On June 30, 2014, Zale Corporation filed its answer to the petition in the Merion action and a verified list pursuant to 8 Del. C. § 262(f) naming, as of that filing, the persons that purported to demand appraisal of shares of Zale Corporation common stock. Zale Corporation filed answers and verified lists in response to the TIG and Gabelli actions on September 18 and October 20, 2014, respectively. Since the closing of the Company’s acquisition of Zale Corporation on May 29, 2014, Zale Corporation has received a number of dissent withdrawals from stockholders who had previously demanded appraisal. At this point, the total number of shares of Zale Corporation’s common stock for which appraisal has been demanded and not requested to be withdrawn is approximately 8.8 million, inclusive of the shares allegedly held by petitioners in the Appraisal Action. The parties in the Appraisal Action are currently engaged in discovery. A trial in this matter has been scheduled for August 17-20, 2015.
At this point, no outcome or possible loss or range of losses, if any, arising from the litigation is able to be estimated.
In the ordinary course of business, Signet may be subject, from time to time, to various other proceedings, lawsuits, disputes or claims incidental to its business, which the Company believes are not significant to Signet’s consolidated financial position, results of operations or cash flows.
Condensed Consolidating Financial Information
Condensed consolidating financial information
Condensed consolidating financial information
The accompanying condensed consolidating financial information has been prepared and presented pursuant to SEC Regulation S-X, Rule 3-10, “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.” We and certain of our subsidiaries have guaranteed the obligations under certain debt securities that have been issued by Signet UK Finance plc. The following presents the condensed consolidating financial information for: (i) the indirect Parent Company (Signet Jewelers Limited); (ii) the Issuer of the guaranteed obligations (Signet UK Finance plc); (iii) the Guarantor subsidiaries, on a combined basis; (iv) the non-guarantor subsidiaries, on a combined basis; (v) consolidating eliminations; and (vi) Signet Jewelers Limited and Subsidiaries on a consolidated basis. Each Guarantor subsidiary is 100% owned by the Parent Company at the date of each balance sheet presented. The Guarantor subsidiaries, along with Signet Jewelers Limited, will fully and unconditionally guarantee the obligations of Signet UK Finance plc under any such debt securities. Each entity in the consolidating financial information follows the same accounting policies as described in the consolidated financial statements.
The accompanying condensed consolidating financial information has been presented on the equity method of accounting for all periods presented. Under this method, investments in subsidiaries are recorded at cost and adjusted for the subsidiaries’ cumulative results of operations, capital contributions and distributions, and other changes in equity. Elimination entries include consolidating and eliminating entries for investments in subsidiaries, and intra-entity activity and balances.
Condensed Consolidated Income Statement
For the 52 week period ended January 31, 2015
(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

Condensed Consolidated Income Statement
For the 52 week period ended February 1, 2014
(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

Condensed Consolidated Income Statement
For the 53 week period ended February 2, 2013
(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


Condensed Consolidated Statement of Comprehensive Income
For the 52 week period ended January 31, 2015
(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

Condensed Consolidated Statement of Comprehensive Income
For the 52 week period ended February 1, 2014
(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

Condensed Consolidated Statement of Comprehensive Income
For the 53 week period ended February 2, 2013
(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


Condensed Consolidated Balance Sheet
January 31, 2015
(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

Condensed Consolidated Balance Sheet
February 1, 2014
(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


Condensed Consolidated Statement of Cash Flows
For the 52 week period ended January 31, 2015
(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

Condensed Consolidated Statement of Cash Flows
For the 52 week period ended February 1, 2014
(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

Condensed Consolidated Statement of Cash Flows
For the 53 week period ended February 2, 2013
(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

Organization and Critical Accounting Policies (Policies)
Basis of preparation
The consolidated financial statements of Signet are prepared in accordance with US generally accepted accounting principles (“US GAAP”) and include the results for the 52 week period ended January 31, 2015 (“Fiscal 2015”), as Signet’s fiscal year ends on the Saturday nearest to January 31. The comparative periods are for the 52 week period ended February 1, 2014 (“Fiscal 2014”) and the 53 week period ended February 2, 2013 (“Fiscal 2013”). Intercompany transactions and balances have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation.
Use of estimates
The preparation of these consolidated financial statements, in conformity with US GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and disclosure of contingent assets and liabilities. Actual results could differ from estimates. Key estimates are primarily made in relation to the valuation of receivables, inventory, deferred revenue, fair value of derivatives, depreciation and asset impairment, the valuation of employee benefits, income taxes, contingencies and accounting for business combinations.
The reported results of operations are not indicative of results expected in future periods.
Foreign currency translation
The financial position and operating results of foreign operations are consolidated using the local currency as the functional currency. Assets and liabilities are translated at the rates of exchange on the balance sheet date, and revenues and expenses are translated at the monthly average rates of exchange during the period. Resulting translation gains or losses are included in the accompanying consolidated statements of equity as a component of accumulated other comprehensive income (loss) (“AOCI”). Gains or losses resulting from foreign currency transactions are included within the consolidated statements of operations, whereas translation adjustments and gains or losses related to intercompany loans of a long-term investment nature are recognized as a component of AOCI.
Revenue recognition
The Company recognizes revenue when there is persuasive evidence of an arrangement; delivery of products has occurred or services have been rendered; the sale price is fixed and determinable; and collectability is reasonably assured. The Company’s revenue streams and their respective accounting treatments are discussed below.
Merchandise sale and repairs
Store sales are recognized when the customer receives and pays for the merchandise at the store with cash, in-house customer finance, private label credit card programs or a third party credit card. For online sales shipped to customers, sales are recognized at the estimated time the customer has received the merchandise. Amounts related to shipping and handling that are billed to customers are reflected in sales and the related costs are reflected in cost of sales. Revenues on the sale of merchandise are reported net of anticipated returns and sales tax collected. Returns are estimated based on previous return rates experienced. Any deposits received from a customer for merchandise are deferred and recognized as revenue when the customer receives the merchandise. Revenues derived from providing replacement merchandise on behalf of insurance organizations are recognized upon receipt of the merchandise by the customer. Revenues on repair of merchandise are recognized when the service is complete and the customer collects the merchandise at the store.

Extended service plans and lifetime warranty agreements
The Company recognizes revenue related to lifetime warranty sales in proportion to when the expected costs will be incurred. The deferral period for lifetime warranty sales in each division is determined from patterns of claims costs, including estimates of future claims costs expected to be incurred. Management reviews the trends in claims to assess whether changes are required to the revenue and cost recognition rates utilized. A significant change in estimates related to the time period or pattern in which warranty-related costs are expected to be incurred could materially impact revenues. All direct costs associated with the sale of these plans are deferred and amortized in proportion to the revenue recognized and disclosed as either other current assets or other assets.
The Sterling Jewelers division sells extended service plans, subject to certain conditions, to perform repair work over the lifetime of the product. Revenue from the sale of these lifetime extended service plans is deferred and recognized over 14 years, with approximately 45% of revenue recognized within the first two years (February 1, 2014: 45%; February 2, 2013: 46%).
The Sterling Jewelers division also sells a Jewelry Replacement Plan (“JRP”). The JRP is designed to protect customers from damage or defects of purchased merchandise for a period of three years. If the purchased merchandise is defective or becomes damaged under normal use in that time period, the item will be replaced. JRP revenue is deferred and recognized on a straight-line basis over the period of expected claims costs.
The Zale division also sells extended service plans. Zale Jewelry customers are offered lifetime warranties on certain products that cover sizing and breakage with an option to purchase theft protection for a two-year period. Revenue from the sale of lifetime extended service plans is deferred and recognized over 10 years, with approximately 69% of revenue recognized within the first two years. Revenues related to the optional theft protection are deferred and recognized over the two-year contract period on a straight-line basis. Zale Jewelry customers are also offered a two-year watch warranty and a one-year warranty that covers breakage. Piercing Pagoda customers are also offered a one-year warranty that covers breakage. Revenue from the two-year watch warranty and one-year breakage warranty is recognized on a straight-line basis over the respective contract terms.
Signet also sells warranty agreements in the capacity of an agent on behalf of a third-party. The commission that Signet receives from the third-party is recognized at the time of sale less an estimate of cancellations based on historical experience.
Sale vouchers
Certain promotional offers award sale vouchers to customers who make purchases above a certain value, which grant a fixed discount on a future purchase within a stated time frame. The Company accounts for such vouchers by allocating the fair value of the voucher between the initial purchase and the future purchase using the relative-selling-price method. Sale vouchers are not sold on a stand-alone basis. The fair value of the voucher is determined based on the average sales transactions in which the vouchers were issued, when the vouchers are expected to be redeemed, and the estimated voucher redemption rate. The fair value allocated to the future purchase is recorded as deferred revenue.
Consignment inventory sales
Sales of consignment inventory are accounted for on a gross sales basis as the Company is the primary obligor providing independent advice, guidance, and after sales service to customers. The products sold from consignment inventory are indistinguishable from other products that are sold to customers and are sold on the same terms. Supplier products are selected at the discretion of the Company. The Company is responsible for determining the selling price, physical security of the products and collections of accounts receivable.
Cost of sales and selling, general and administrative expenses
Cost of sales includes merchandise costs net of discounts and allowances, freight, processing and distribution costs of moving merchandise from suppliers to distribution centers and stores, inventory shrinkage, store operating and occupancy costs, net bad debts and charges for late payments under the in-house customer finance programs. Store operating and occupancy costs include utilities, rent, real estate taxes, common area maintenance charges and depreciation. Selling, general and administrative expenses include store staff and store administrative costs, centralized administrative expenses, including information technology, credit and eCommerce, advertising and promotional costs, and other operating expenses not specifically categorized elsewhere in the consolidated income statements.
Store opening costs
The opening costs of new locations are expensed as incurred.
Advertising and promotional costs
Advertising and promotional costs are expensed within selling, general and administrative expenses. Production costs are expensed at the first communication of the advertisements, while communication expenses are recognized each time the advertisement is communicated. For catalogues and circulars, costs are all expensed at the first date they can be viewed by the customer. Point of sale promotional material is expensed when first displayed in the stores.
In-house customer finance programs
Sterling Jewelers division operates customer in-house finance programs that allow customers to finance merchandise purchases from its stores. Finance charges are recognized in accordance with the contractual agreements. Gross interest earned is recorded as other operating income in the income statement. See Note 9 for additional discussion of the Company’s other operating income. In addition to interest-bearing accounts, a significant proportion of credit sales are made using interest-free financing for one year or less, subject to certain conditions.
Accrual of interest is suspended when accounts become more than 90 days aged on a recency basis. Upon suspension of the accrual of interest, interest income is subsequently recognized to the extent cash payments are received. Accrual of interest is resumed when receivables are removed from the non-accrual status.
Income taxes
Income taxes are accounted for using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are recognized by applying statutory tax rates in effect in the years in which the differences between the financial reporting and tax filing bases of existing assets and liabilities are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. A valuation allowance is established against deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized.
The Company does not recognize tax benefits related to positions taken on certain tax matters unless the position is more likely than not to be sustained upon examination by tax authorities. At any point in time, various tax years are subject to or are in the process of being audited by various taxing authorities. To the extent that management’s estimates of settlements change, or the final tax outcome of these matters is different than the amounts recorded, such differences will impact the income tax provision in the period in which such determinations are made.
Cash and cash equivalents
Cash and cash equivalents are comprised of cash on hand, money market deposits and amounts placed with external fund managers with an original maturity of three months or less. Cash and cash equivalents are carried at cost which approximates fair value. In addition, receivables from third-party credit card issuers typically converted to cash within 5 days of the original sales transaction are considered cash equivalents.
Accounts receivable
Accounts receivable are stated at their nominal amounts and primarily include account balances outstanding from Sterling Jewelers division in-house customer finance programs. The finance receivables from the in-house customer finance programs are comprised of a large volume of transactions with no one customer representing a significant balance. The initial acceptance of customer finance arrangements is based on proprietary consumer credit scores. Subsequent to the initial finance purchase, the Company monitors the credit quality of its customer finance receivable portfolio based on payment activity that drives the aging of receivables. This credit quality indicator is assessed on a real-time basis.
Accounts receivable under the customer finance programs are shown net of an allowance for uncollectible amounts. This allowance is an estimate of the expected losses as of the balance sheet date, and is calculated using a proprietary model that analyzes factors such as delinquency rates and recovery rates. A 100% allowance is made for any amount that is more than 90 days aged on a recency basis and any amount associated with an account the owner of which has filed for bankruptcy, as well as an allowance for those amounts 90 days aged and under based on historical loss information and payment performance. The calculation is reviewed by management to assess whether, based on economic events, additional analysis is required to appropriately estimate losses inherent in the portfolio.
Allowances for uncollectible amounts are recorded as a charge to cost of sales in the income statement. Receivables are charged off to the allowance when amounts become more than 120 days aged on the recency method and more than 240 days aged on the contractual method.
Inventories
Inventories are primarily held for resale and are valued at the lower of cost or market value. Cost is determined using weighted-average cost for all inventories except for inventories held in the Company's diamond sourcing operations where cost is determined using specific identification. Cost includes charges directly related to bringing inventory to its present location and condition. Such charges would include warehousing, distribution and certain buying, security and data processing costs. Market value is defined as estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. Inventory write-downs are recorded for obsolete, slow moving or defective items and shrinkage. Inventory write-downs are equal to the difference between the cost of inventory and its estimated market value based upon assumptions of targeted inventory turn rates, future demand, management strategy, and market conditions. Shrinkage is estimated and recorded based on historical physical inventory results, expectations of future inventory losses and current inventory levels. Physical inventories are taken at least once annually for all store locations and distribution centers.
Vendor contributions
Contributions are received from vendors through various programs and arrangements including cooperative advertising. Where vendor contributions related to identifiable promotional events are received, contributions are matched against the costs of promotions. Vendor contributions, which are received as general contributions and not related to specific promotional events, are recognized as a reduction of inventory costs.
Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation, amortization and impairment charges. Maintenance and repair costs are expensed as incurred. Depreciation and amortization are recognized on the straight-line method over the estimated useful lives of the related assets as follows:
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

Equipment, which includes computer software purchased or developed for internal use, is stated at cost less accumulated amortization. Signet’s policy provides for the capitalization of external direct costs of materials and services associated with developing or obtaining internal use computer software. In addition, Signet also capitalizes certain payroll and payroll-related costs for employees directly associated with internal use computer projects. Amortization is charged on a straight-line basis over periods from three to five years.
Property, plant and equipment are reviewed for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Potentially impaired assets or asset groups are identified by reviewing the cash flows of individual stores. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the undiscounted cash flow is less than the asset’s carrying amount, the impairment charge recognized is determined by estimating the fair value of the assets and recording a loss for the amount that the carrying value exceeds the estimated fair value. Property and equipment at stores planned for closure are depreciated over a revised estimate of their useful lives.
See Note 12 for additional discussion of the Company’s property, plant and equipment.
Goodwill and intangibles
In a business combination, the Company estimates and records the fair value of identifiable intangible assets and liabilities acquired. The fair value of these intangible assets and liabilities is estimated based on management's assessment, including determination of appropriate valuation technique and consideration of any third party appraisals, when necessary. Significant estimates in valuing intangible assets and liabilities acquired include, but are not limited to, future expected cash flows associated with the acquired asset or liability, expected life and discount rates. The excess purchase price over the estimated fair values of the assets acquired and liabilities assumed is recognized as goodwill. Goodwill is recorded by the Company’s reporting units based on the acquisitions made by each. Goodwill is evaluated for impairment annually and more frequently if indicators of impairment arise. In evaluating goodwill for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not (that is, likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying value (including goodwill). If the Company concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, then no further testing is required. However, if the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the two-step goodwill impairment test is performed to identify a potential goodwill impairment and measure the amount of impairment to be recognized, if any.
The annual testing date for goodwill allocated to the Sterling Jewelers reporting unit is the last day of the fourth quarter. The annual testing date for goodwill allocated to the reporting units associated with the Zale division acquisition and the Other reporting unit is May 31. There have been no goodwill impairment charges recorded during the fiscal periods presented in the consolidated financial statements. If future economic conditions are different than those projected by management, future impairment charges may be required.
Intangible assets with definite lives are amortized and reviewed for impairment whenever events or circumstances indicate that the carrying amount of the asset may not be recoverable. If the estimated undiscounted future cash flows related to the asset are less than the carrying amount, the Company recognizes an impairment charge equal to the difference between the carrying value and the estimated fair value, usually determined by the estimated discounted future cash flows of the asset.
Intangible assets with indefinite lives are reviewed for impairment each year in the second quarter and may be reviewed more frequently if certain events occur or circumstances change. The Company first performs a qualitative assessment to determine whether it is more likely than not that the indefinite-lived intangible asset is impaired. If the Company determines that it is more likely than not that the fair value of the asset is less than its carrying amount, the Company estimates the fair value, usually determined by the estimated discounted future cash flows of the asset, compares that value with its carrying amount and records an impairment charge, if any. If future economic conditions are different than those projected by management, future impairment charges may be required.
Derivatives and hedge accounting
The Company enters into various types of derivative instruments to mitigate certain risk exposures related to changes in commodity costs and foreign exchange rates. Derivative instruments are recorded in the consolidated balance sheets at fair value, as either assets or liabilities, with an offset to net income or other comprehensive income ("OCI"), depending on whether the derivative qualifies as an effective hedge.
If a derivative instrument meets certain criteria, it may be designated as a cash flow hedge on the date it is entered into. For cash flow hedge transactions, the effective portion of the changes in fair value of the derivative instrument is recognized directly in equity as a component of AOCI and is recognized in the consolidated income statements in the same period(s) and on the same financial statement line in which the hedged item affects net income. Amounts excluded from the effectiveness calculation and any ineffective portions of the change in fair value of the derivatives are recognized immediately in other operating income, net in the consolidated income statements. In addition, gains and losses on derivatives that do not qualify for hedge accounting are recognized immediately in other operating income, net.
In the normal course of business, the Company may terminate cash flow hedges prior to the occurrence of the underlying forecasted transaction. For cash flow hedges terminated prior to the occurrence of the underlying forecasted transaction, management monitors the probability of the associated forecasted cash flow transactions to assess whether any gain or loss recorded in AOCI should be immediately recognized in net income. Cash flows from derivative contracts are included in net cash provided by operating activities.
Employee Benefits
Signet operates a defined benefit pension plan in the UK (the “UK Plan”) which ceased to admit new employees effective April 2004. The UK Plan provides benefits to participating eligible employees. Beginning in Fiscal 2014, a change to the benefit structure was implemented and members’ benefits that accumulate after that date are now based upon career average salaries, whereas previously, all benefits were based on salaries at retirement. The UK Plan’s assets are held by the UK Plan.
The net periodic pension cost of the UK Plan is measured on an actuarial basis using the projected unit credit method and several actuarial assumptions, the most significant of which are the discount rate and the expected long-term rate of return on plan assets. Other material assumptions include rates of participant mortality, the expected long-term rate of compensation and pension increases and rates of employee attrition. Gains and losses occur when actual experience differs from actuarial assumptions. If such gains or losses exceed 10% of the greater of plan assets or plan liabilities, Signet amortizes those gains or losses over the average remaining service period of the employees. The net periodic pension cost is charged to selling, general and administrative expenses in the income statement.
The funded status of the UK Plan is recognized on the balance sheet, and is the difference between the fair value of plan assets and the benefit obligation measured at the balance sheet date. Gains or losses and prior service costs or credits that arise and not included as components of net periodic pension cost are recognized, net of tax, in OCI.
Signet also operates a defined contribution pension plan in the UK and sponsors a defined contribution retirement savings plan in the US. Contributions made by Signet to these pension arrangements are charged primarily to selling, general and administrative expenses in the income statement as incurred.
Borrowing costs
Borrowings include interest bearing bank loans, accounts receivable securitization program and bank overdrafts. Borrowing costs are capitalized and amortized into interest expense over the contractual term of the related loan.
Signet measures share-based compensation cost for awards classified as equity at the grant date based on the estimated fair value of the award and recognizes the cost as an expense on a straight-line basis (net of estimated forfeitures) over the requisite service period of employees. Certain share plans include a condition whereby vesting is contingent on growth exceeding a given target, and therefore awards granted with this condition are considered to be performance-based awards.
Signet estimates fair value using a Black-Scholes model for awards granted under the Omnibus Plan and the binomial valuation model for awards granted under the Share Saving Plans. Deferred tax assets for awards that result in deductions on the income tax returns of subsidiaries are recorded by Signet based on the amount of compensation cost recognized and the subsidiaries’ statutory tax rate in the jurisdiction in which it will receive a deduction. Differences between the deferred tax assets recognized for financial reporting purposes and the actual tax deduction reported on the subsidiaries’ income tax return are recorded in additional paid-in-capital (if the tax deduction exceeds the deferred tax asset) or in the income statement (if the deferred tax asset exceeds the tax deduction and no additional paid-in-capital exists from previous awards).
Share-based compensation is primarily recorded in selling, general and administrative expenses in the income statement, along with the relevant salary cost.
Contingent liabilities
Provisions for contingent liabilities are recorded for probable losses when management is able to reasonably estimate the loss or range of loss. When it is reasonably possible that a contingent liability may result in a loss or additional loss, the range of the loss is disclosed.
Leases
Signet's operating leases generally include retail store locations. Certain operating leases include predetermined rent increases, which are charged to the income statement on a straight-line basis over the lease term, including any construction period or other rental holiday. Other amounts paid under operating leases, such as contingent rentals, taxes and common area maintenance, are charged to the income statement as incurred. Premiums paid to acquire short-term leasehold properties and inducements to enter into a lease are recognized on a straight-line basis over the lease term. In addition, certain leases provide for contingent rentals that are not measurable at inception. These contingent rentals are primarily based on a percentage of sales in excess of a predetermined level. These amounts are excluded from minimum rent and are included in the determination of rent expense when it is probable that the expense has been incurred and the amount is reasonably estimable.
Common shares
New shares are recorded in Common Shares at their par value when issued. The excess of the issue price over the par value is recorded in additional paid-in capital.
Dividends
Dividends are reflected as a reduction of retained earnings in the period in which they are formally declared by the Board of Directors (the “Board”).
New accounting pronouncements adopted during the period
Presentation of unrecognized tax benefit
In July 2013, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The new guidance requires, unless certain conditions exist, an unrecognized tax benefit to be presented as a reduction to a deferred tax asset in the financial statements for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. Signet adopted this guidance effective for the first quarter ended May 3, 2014 and the implementation of this accounting pronouncement did not have an impact on Signet’s condensed consolidated financial statements.
New accounting pronouncements to be adopted in future periods
Revenue recognition
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The new guidance affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU No. 2014-09 provides alternative methods of retrospective adoption and is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is not permitted. Signet is currently assessing the impact, if any, as well as the available methods of implementation, that the adoption of this accounting pronouncement will have on its consolidated financial statements.
Share-based compensation
In June 2014, the FASB issued ASU No. 2014-12, “Compensation — Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” The new guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. ASU No. 2014-12 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015, with early adoption permitted. Signet is currently assessing the impact, if any, that the adoption of this accounting pronouncement will have on its consolidated financial statements.
Organization and Critical Accounting Policies (Tables)
Compensation and benefits costs included within cost of sales and selling, general and administrative expenses were as follows:
(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

 
Additional detail regarding the composition of cash and cash equivalents as of January 31, 2015 and February 1, 2014 follows:
(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

 
Property, plant and equipment are stated at cost less accumulated depreciation, amortization and impairment charges. Maintenance and repair costs are expensed as incurred. Depreciation and amortization are recognized on the straight-line method over the estimated useful lives of the related assets as follows:
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

Acquisitions (Tables)
Calculation of consideration
(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

Under the acquisition method of accounting, the identifiable assets acquired and liabilities assumed are recorded at acquisition date fair values. The following table summarizes the preliminary fair values identified for the assets acquired and liabilities assumed in the Acquisition as of May 29, 2014:
(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

 
$

Since the date of the Acquisition, the operating results for the acquired business were as follows:
(in millions)
May 29, 2014 to January 31, 2015
Sales
$
1,215.6

Operating loss
$
(8.2
)
Net loss
$
(6.5
)
The following unaudited consolidated pro forma information summarizes the results of operations of the Company as if the Acquisition and related issuance of $1,400.0 million of long-term debt (see Note 19) had occurred as of February 2, 2013. The unaudited consolidated pro forma financial information was prepared in accordance with the acquisition method of accounting under existing standards and is not necessarily indicative of the results of operations that would have occurred if the Acquisition had been completed on the date indicated, nor is it indicative of the future operating results of the Company.
(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

Segment Information (Tables)
A separate reportable segment, “Other,” consists of all non-reportable operating segments including subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones and corporate items that are below the quantifiable threshold for separate disclosure as a reportable 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

(1) Includes external customer revenue of $205.5 million from Canadian operations.
(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.
n/a Not applicable as Zale division was acquired on May 29, 2014. See Note 3 for additional information.
(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

n/a Not applicable as Zale division was acquired on May 29, 2014. See Note 3 for additional information.
Earnings Per Share (Tables)
Earnings per share
(in millions, except per share amounts)
Fiscal 2015
 
Fiscal 2014
 
Fiscal 2013
Net income
$
381.3

 
$
368.0

 
$
359.9

Basic weighted average number of shares outstanding
79.9

 
80.2

 
82.3

Dilutive effect of share awards
0.3

 
0.5

 
0.5

Diluted weighted average number of shares outstanding
80.2

 
80.7

 
82.8

Earnings per share – basic
$
4.77

 
$
4.59

 
$
4.37

Earnings per share – diluted
$
4.75

 
$
4.56

 
$
4.35

Common Shares, Treasury Shares, Reserves and Dividends (Tables)
The share repurchase activity is outlined in the table below:
 
Amount
authorized
 
Fiscal 2015
 
Fiscal 2014
 
Fiscal 2013
 
 
 
Shares
repurchased
 
Amount
repurchased
 
Average
repurchase
price per
share
 
Shares
repurchased
 
Amount
repurchased
 
Average
repurchase
price per
share
 
Shares
repurchased
 
Amount
repurchased
 
Average
repurchase
price per
share
 
(in millions)
 
 
 
(in millions)
 
 
 
 
 
(in millions)
 
 
 
 
 
(in millions)
 
 
2013 Program (1)
$
350.0

 
288,393

 
$
29.8

 
$
103.37

 
808,428

 
54.6

 
$
67.54

 
n/a

 
n/a

 
n/a

2011 Program (2)
$
350.0

 
n/a

 
n/a

 
n/a

 
749,245

 
50.1

 
66.92

 
6,425,296

 
$
287.2

 
$
44.70

Total
 
 
288,393

 
$
29.8

 
$
103.37

 
1,557,673

 
104.7

 
$
67.24

 
6,425,296

 
$
287.2

 
$
44.70

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) On June 14, 2013, the Board authorized the repurchase of up to $350 million of Signet’s common shares (the “2013 Program”). The 2013 Program may be suspended or discontinued at any time without notice. The 2013 Program had $265.6 million remaining as of January 31, 2015.
(2) In October 2011, the Board authorized the repurchase of up to $300 million of Signet’s common shares (the “2011 Program”), which authorization was subsequently increased to $350 million. The 2011 Program was completed as of May 4, 2013.
n/a Not applicable.
Dividends
 
Fiscal 2015
 
Fiscal 2014
 
Fiscal 2013
(in millions, except per share amounts)
Cash dividend
per share
 
Total
dividends
 
Cash dividend
per share
 
Total
dividends
 
Cash dividend
per share
 
Total
dividends
First quarter
$
0.18

 
$
14.4

 
$
0.15

 
$
12.1

 
$
0.12

 
$
10.3

Second quarter
0.18

 
14.4

 
0.15

 
12.1

 
0.12

 
9.6

Third quarter
0.18

 
14.5

 
0.15

 
12.0

 
0.12

 
9.8

Fourth quarter(1)
0.18

 
14.4

(2) 
0.15

 
12.0

(2) 
0.12

 
9.8

Total
$
0.72

 
$
57.7

 
$
0.60

 
$
48.2

 
$
0.48

 
$
39.5

 
 
 
 
 
 
 
 
 
 
 
 
(1) Signet’s dividend policy results in the dividend payment date being a quarter in arrears from the declaration date. As a result, the dividend declared in the fourth quarter of each fiscal year is paid in the subsequent fiscal year. The dividends are reflected in the consolidated statement of cash flows upon payment.
(2) As of January 31, 2015 and February 1, 2014, $14.4 million and $12.0 million, respectively, has been recorded in accrued expenses and other current liabilities in the consolidated balance sheets reflecting the cash dividends declared for the fourth quarter of Fiscal 2015 and Fiscal 2014, respectively.
Accumulated Other Comprehensive Income (Loss) (Tables)
The following tables present the changes in AOCI by component and the reclassifications out of AOCI, net of tax:
 
 
 
 
 
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
)
 The amounts reclassified from AOCI were as follows:
 
 
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.
Income Taxes (Tables)
(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

he differences between the US federal income tax rate and the effective tax rates for Signet have been presented below:
 
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
 %
Deferred tax assets (liabilities) consisted of the following:
 
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

The following table summarizes the activity related to unrecognized tax benefits:
(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

Other Operating Income, Net (Tables)
Other Operating Income
(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

Accounts Receivable, Net (Tables)
The accounts receivable portfolio consists of a population that is of similar characteristics and is evaluated collectively for impairment.
(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

The allowance for credit losses on Sterling Jewelers customer in-house finance receivables is shown below:
(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

Credit quality indicator and age analysis of past due Sterling Jewelers customer in-house finance receivables are shown below:
   
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
%
Inventories (Tables)
(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

Inventory reserves
(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

(1) Includes the impact of foreign exchange translation between opening and closing balance sheet dates.
Property, Plant and Equipment, Net (Tables)
Property, Plant and Equipment, Net
Property, plant and equipment are stated at cost less accumulated depreciation, amortization and impairment charges. Maintenance and repair costs are expensed as incurred. Depreciation and amortization are recognized on the straight-line method over the estimated useful lives of the related assets as follows:
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

Goodwill and Intangibles (Tables)
(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

The following table summarizes the Company’s goodwill by reportable segment:
(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

The following table provides additional detail regarding the composition of intangibles.
 
 
 
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
)
The expected future amortization expense for intangible assets recorded at January 31, 2015 follows:
(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

Other Assets (Tables)
Other Assets
(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

Investments (Tables)
Schedule of available for sale securities
Investments in debt securities outstanding as of January 31, 2015 mature as follows:
(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

All investments are classified as available-for-sale and include the following:
 
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

Derivatives (Tables)
The following table summarizes the fair value and presentation of derivative instruments in the consolidated balance sheets:
 
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
)
The following table summarizes the pre-tax gains (losses) recorded in AOCI for derivatives designated in cash flow hedging relationships:
(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
)
 
 
 
 
 
 
(1) As of January 31, 2015 and February 1, 2014, losses recorded in AOCI include $(0.5) million and $18.2 million, respectively, related to commodity contracts terminated prior to contract maturity in Fiscal 2014.
The following tables summarize the effect of derivative instruments designated as cash flow hedges in OCI and the consolidated income statements:
Foreign currency contracts
(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
)
Commodity contracts
(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
)
The following table presents the effects of the Company’s derivatives instruments not designated as cash flow hedges in the consolidated income statements:
 
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
)
Fair Value Measurements (Tables)
The methods Signet uses to determine fair value on an instrument-specific basis are detailed below:
 
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
)
The carrying amount and fair value of outstanding debt at January 31, 2015 and February 1, 2014 were as follows:
 
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

 
$

 
$

Pension Plans (Tables)
The following tables provide information concerning the UK Plan as of and for the fiscal years ended January 31, 2015 and February 1, 2014:
(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

Items in AOCI not yet recognized as income (expense) in the income statement:
(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

The components of net periodic pension cost and other amounts recognized in OCI for the UK Plan are as follows:
(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
%
The table below sets forth changes in the fair value of the Level 3 investment assets in Fiscal 2015 and Fiscal 2014:
(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

The following benefit payments, which reflect expected future service, as appropriate, are estimated to be paid by the UK Plan:
(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

The methods Signet uses to determine fair value on an instrument-specific basis are detailed below:
 
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

The value and classification of these assets are as follows:
 
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

Loans, Overdrafts and Long-Term Debt (Tables)
Summary of Loans, Overdrafts and Long-Term Debt
(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

Accrued Expenses and Other Current Liabilities (Tables)
(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

Sales returns reserve included in accrued expenses above:
(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

(1) Net adjustment relates to sales returns previously provided for and changes in estimate and the impact of foreign exchange translation between opening and closing balance sheet dates.
The warranty reserve for diamond and gemstone guarantee, included in accrued expenses and other current liabilities, and other non-current liabilities, is as follows:
(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

(1) Included within accrued expenses above.
Deferred Revenue (Tables)
Deferred Revenue
Deferred revenue is comprised primarily of extended service plans (“ESP”) and voucher promotions and other as follows:
(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

ESP deferred revenue
(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

Other Liabilities-Non-Current (Tables)
(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

(1) Includes the impact of foreign exchange translation between opening and closing balance sheet dates.
Share-Based Compensation (Tables)
Share-based compensation expense and the associated tax benefits are as follows:
(in millions)
Fiscal 2015
 
Fiscal 2014
 
Fiscal 2013
Share-based compensation expense
$
12.1

 
$
14.4

 
$
15.7

Income tax benefit
$
(4.3
)
 
$
(5.2
)
 
$
(5.4
)
Unrecognized compensation cost related to awards granted under share-based compensation plans is as follows:
 
Unrecognized Compensation Cost
(in millions)
Fiscal 2015
 
Fiscal 2014
 
Fiscal 2013
Omnibus Plan
$
10.5

 
$
14.4

 
$
15.0

Share Saving Plans
3.3

 
2.9

 
2.9

IIP grant
4.0

 

 
0.0

Total
$
17.8

 
$
17.3

 
$
17.9

Weighted average period of amortization
1.7 years

 
1.8 years

 
1.7 years

The significant assumptions utilized to estimate the weighted-average fair value of awards granted under the Omnibus Plan are as follows:
 
Omnibus Plan
 
Fiscal 2015
 
Fiscal 2014
 
Fiscal 2013
Share price(1)
$
104.57

 
$
67.39

 
$
47.15

Risk free interest rate(1)
0.8
%
 
0.3
%
 
0.4
%
Expected term(1)
2.7 years

 
2.8 years

 
2.9 years

Expected volatility(1)
32.1
%
 
41.7
%
 
44.2
%
Dividend yield(1)
0.9
%
 
1.1
%
 
1.2
%
Fair value(1)
$
103.12

 
$
66.10

 
$
46.12

(1) Weighted average

The Fiscal 2015 activity for awards granted under the Omnibus Plan is as follows:
 
Omnibus Plans
(in millions)
No. of
shares
 
Weighted
average
grant date
fair value
 
Weighted
average
remaining
contractual
life
 
Intrinsic
value
(1)
Outstanding at February 1, 2014
1.0

 
$
51.44

 
1.0 year
 
$
80.1

Fiscal 2015 activity:
 
 
 
 
 
 
 
Granted
0.3

 
103.12

 
 
 
 
Vested
(0.4
)
 
45.64

 
 
 
 
Lapsed
(0.2
)
 
72.26

 
 
 
 
Outstanding at January 31, 2015
0.7

 
$
70.69

 
1.0 year
 
$
78.6

(1) Intrinsic value for outstanding restricted stock and RSUs is based on the fair market value of Signet’s common stock on the last business day of the fiscal year.
The following table summarizes additional information about awards granted under the Omnibus Plan:
(in millions)
Fiscal 2015
 
Fiscal 2014
 
Fiscal 2013
Total intrinsic value of awards vested
$
43.9

 
$
25.3

 
$
28.5

The Fiscal 2015 activity for awards granted under the Executive Plans is as follows:
 
Executive Plans
(in millions)
No. of
shares
 
Weighted
average
exercise
price
 
Weighted
average
remaining
contractual
life
 
Intrinsic
value
(1)
Outstanding at February 1, 2014
0.1

 
$
39.11

 
3.5 years
 
$
4.1

Fiscal 2015 activity:
 
 
 
 
 
 
 
Granted

 

 
 
 
 
Exercised

 
$
42.42

 
 
 
 
Lapsed

 

 
 
 
 
Outstanding at January 31, 2015
0.1

 
$
35.56

 
2.7 years
 
$
4.7

Exercisable at February 1, 2014
0.1

 
$
39.11

 
 
 
$
4.1

Exercisable at January 31, 2015
0.1

 
$
35.56

 
 
 
$
4.7

(1) Intrinsic value for outstanding awards is based on the fair market value of Signet’s common stock on the last business day of the fiscal year.
The following table summarizes additional information about awards granted under the Executive Plans:
(in millions)
Fiscal 2015
 
Fiscal 2014
 
Fiscal 2013
Total intrinsic value of options exercised
$
2.9

 
$
4.8

 
$
9.0

Cash received from share options exercised
$
1.8

 
$
6.3

 
$
18.9

The significant assumptions utilized to estimate the weighted-average fair value of awards granted under the Share Saving Plans are as follows:
 
Share Saving Plans
 
Fiscal 2015
 
Fiscal 2014
 
Fiscal 2013
Share price(1)
$
114.93

 
$
72.65

 
$
49.89

Exercise price(1)
96.67

 
59.75

 
41.17

Risk free interest rate(1)
0.9
%
 
0.7
%
 
0.4
%
Expected term(1)
2.8 years

 
2.7 years

 
2.7 years

Expected volatility(1)
27.6
%
 
40.2
%
 
41.0
%
Dividend yield(1)
0.8
%
 
1.1
%
 
1.4
%
Fair value(1)
$
28.76

 
$
22.89

 
$
15.40

The Fiscal 2015 activity for awards granted under the Share Saving Plans is as follows:
 
Share Saving Plans
(in millions)
No. of
shares
 
Weighted
average
exercise
price
 
Weighted
average
remaining
contractual
life
 
Intrinsic
value
(1)
Outstanding at February 1, 2014
0.3

 
$
44.06

 
1.7 years

 
$
9.4

Fiscal 2015 activity:
 
 
 
 
 
 
 
Granted
0.1

 
96.67

 
 
 
 
Exercised
(0.1
)
 
34.93

 
 
 
 
Lapsed
(0.1
)
 
52.64

 
 
 
 
Outstanding at January 31, 2015
0.2

 
$
69.05

 
1.9 years

 
$
11.0

Exercisable at February 1, 2014

 

 

 

Exercisable at January 31, 2015

 
$

 

 
$

(1) Intrinsic value for outstanding awards is based on the fair market value of Signet’s common stock on the last business day of the fiscal year.
The following table summarizes additional information about awards granted under the Share Saving Plans:
(in millions)
Fiscal 2015
 
Fiscal 2014
 
Fiscal 2013
Weighted average grant date fair value per share of awards granted
$
28.76

 
$
22.89

 
$
15.40

Total intrinsic value of options exercised
$
11.0

 
$
4.9

 
$
3.3

Cash received from share options exercised
$
4.3

 
$
2.9

 
$
2.7

Commitments and Contingencies (Tables)
Rental expense for operating leases is as follows:
(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

The future minimum operating lease payments for operating leases having initial or non-cancelable terms in excess of one year are as follows:
(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

Condensed Consolidating Financial Information (Tables)
Condensed Consolidated Income Statement
For the 52 week period ended January 31, 2015
(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

Condensed Consolidated Income Statement
For the 52 week period ended February 1, 2014
(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

Condensed Consolidated Income Statement
For the 53 week period ended February 2, 2013
(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

Condensed Consolidated Statement of Comprehensive Income
For the 52 week period ended January 31, 2015
(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

Condensed Consolidated Statement of Comprehensive Income
For the 52 week period ended February 1, 2014
(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

Condensed Consolidated Statement of Comprehensive Income
For the 53 week period ended February 2, 2013
(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

Condensed Consolidated Balance Sheet
January 31, 2015
(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

Condensed Consolidated Balance Sheet
February 1, 2014
(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

Condensed Consolidated Statement of Cash Flows
For the 52 week period ended February 1, 2014
(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

Condensed Consolidated Statement of Cash Flows
For the 53 week period ended February 2, 2013
(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



Organization and Critical Accounting Policies - Narrative (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Jan. 31, 2015
Nov. 1, 2014
Aug. 2, 2014
May 3, 2014
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Organization and critical accounting policies [Abstract]
 
 
 
 
 
 
 
Percent of annual sales
40.00% 
20.00% 
20.00% 
20.00% 
 
 
 
Advertising and promotional costs [Abstract]
 
 
 
 
 
 
 
Advertising Expense
 
 
 
 
$ 333.0 
$ 253.8 
$ 245.8 
In-house customer finance programs [Abstract]
 
 
 
 
 
 
 
Accrued Interest Suspension Period
 
 
 
 
90 days 
 
 
Accounts Receivable [Abstract]
 
 
 
 
 
 
 
Percentage allowance on losses
 
 
 
 
100.00% 
 
 
Losses allowance maturity period
 
 
 
 
90 days 
 
 
Finance receivable age
 
 
 
 
90 days 
 
 
Period which receivables are charged to cost of sales recency method
 
 
 
 
120 days 
 
 
Period which receivables are charged to cost of sales contractual method
 
 
 
 
240 days 
 
 
Minimum
 
 
 
 
 
 
 
Organization and critical accounting policies [Abstract]
 
 
 
 
 
 
 
Operating income expected in fourth quarter
 
 
 
 
45.00% 
 
 
Property, Plant and Equipment [Abstract]
 
 
 
 
 
 
 
Period over which amortization is charged for capitalized payroll for internal use computer projects
 
 
 
 
3 years 
 
 
Maximum
 
 
 
 
 
 
 
Organization and critical accounting policies [Abstract]
 
 
 
 
 
 
 
Operating income expected in fourth quarter
 
 
 
 
55.00% 
 
 
Property, Plant and Equipment [Abstract]
 
 
 
 
 
 
 
Period over which amortization is charged for capitalized payroll for internal use computer projects
 
 
 
 
5 years 
 
 
Sterling Jewelers |
Minimum
 
 
 
 
 
 
 
Organization and critical accounting policies [Abstract]
 
 
 
 
 
 
 
Operating income expected in fourth quarter
 
 
 
 
40.00% 
 
 
Sterling Jewelers |
Maximum
 
 
 
 
 
 
 
Organization and critical accounting policies [Abstract]
 
 
 
 
 
 
 
Operating income expected in fourth quarter
 
 
 
 
45.00% 
 
 
Theft Protection |
Zale
 
 
 
 
 
 
 
Revenue Recognition [Abstract]
 
 
 
 
 
 
 
Product warranty
 
 
 
 
2 years 
 
 
Lifetime Warranty |
Sterling Jewelers
 
 
 
 
 
 
 
Revenue Recognition [Abstract]
 
 
 
 
 
 
 
Deferred revenue recognition period of extended service plan sales
 
 
 
 
14 years 
 
 
Revenue recognized percentage In relation to costs expected to be incurred within first two years
 
 
 
 
45.00% 
45.00% 
46.00% 
Revenue recognized in relation to costs expected to be incurred period
 
 
 
 
2 years 
 
 
Lifetime Warranty |
Zale
 
 
 
 
 
 
 
Revenue Recognition [Abstract]
 
 
 
 
 
 
 
Product warranty
 
 
 
 
10 years 
 
 
Revenue recognized in first two years
 
 
 
 
69.00% 
 
 
Watch Warranty |
Zale
 
 
 
 
 
 
 
Revenue Recognition [Abstract]
 
 
 
 
 
 
 
Product warranty
 
 
 
 
2 years 
 
 
Breakage Warranty |
Zale
 
 
 
 
 
 
 
Revenue Recognition [Abstract]
 
 
 
 
 
 
 
Product warranty
 
 
 
 
1 year 
 
 
Breakage Warranty |
Piercing Pagoda
 
 
 
 
 
 
 
Revenue Recognition [Abstract]
 
 
 
 
 
 
 
Product warranty
 
 
 
 
1 year 
 
 
Jewelry Replacement Plan |
Sterling Jewelers
 
 
 
 
 
 
 
Revenue Recognition [Abstract]
 
 
 
 
 
 
 
Deferred revenue recognition period of extended service plan sales
 
 
 
 
3 years 
 
 
Organization and Critical Accounting Policies - Compensation and benefits (Details) (Selling, General and Administrative Expenses, USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Selling, General and Administrative Expenses
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
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 
Organization and Critical Accounting Policies - Cash and Equivalents (Details) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and cash equivalents
$ 193.6 
$ 247.6 
$ 301.0 
$ 486.8 
Cash and cash equivalents held in money markets and other accounts
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and cash equivalents
153.5 
225.3 
 
 
Cash equivalents from third-party credit card issuers
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and cash equivalents
38.2 
21.1 
 
 
Cash on hand
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and cash equivalents
$ 1.9 
$ 1.2 
 
 
Organization and Critical Accounting Policies - Property Plant and Equipment (Details)
12 Months Ended
Jan. 31, 2015
Minimum |
Buildings
 
Property, Plant and Equipment [Line Items]
 
Useful Life
30 years 
Minimum |
Furniture and fixtures
 
Property, Plant and Equipment [Line Items]
 
Useful Life
3 years 
Minimum |
Equipment, including software
 
Property, Plant and Equipment [Line Items]
 
Useful Life
3 years 
Maximum |
Buildings
 
Property, Plant and Equipment [Line Items]
 
Useful Life
40 years 
Maximum |
Leasehold Improvements
 
Property, Plant and Equipment [Line Items]
 
Useful Life
10 years 
Maximum |
Furniture and fixtures
 
Property, Plant and Equipment [Line Items]
 
Useful Life
10 years 
Maximum |
Equipment, including software
 
Property, Plant and Equipment [Line Items]
 
Useful Life
5 years 
Acquisitions - Additional Information (Detail) (USD $)
12 Months Ended 0 Months Ended 0 Months Ended 3 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended 12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Nov. 4, 2013
Botswana Diamond Polishing Factory Acquisition
Nov. 4, 2013
Botswana Diamond Polishing Factory Acquisition
May 29, 2014
Zale Corporation
Nov. 1, 2014
Zale Corporation
Jan. 31, 2015
Zale Corporation
May 29, 2014
Zale Corporation
May 29, 2014
Zale Corporation
Scenario, Previously Reported
May 29, 2014
Zale Corporation
Senior Unsecured Notes Due in 2024
Senior Notes
May 29, 2014
Zale Corporation
Two-Year Revolving Asset-Backed Variable Funding Notes
Revolving Credit Facility
May 29, 2014
Zale Corporation
Two-Year Revolving Asset-Backed Variable Funding Notes
Revolving Credit Facility
May 29, 2014
Zale Corporation
Five-Year Unsecured Term Loan Facility
Credit Facility
May 29, 2014
Zale Corporation
Five-Year Unsecured Term Loan Facility
Credit Facility
Jan. 31, 2015
Bridge Loan
364-Day Unsecured Bridge Facility
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total consideration transferred
 
 
 
$ 9,100,000 
 
$ 1,458,000,000 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment acquired
 
 
 
 
5,500,000 
 
 
 
103,600,000 
104,200,000 
 
 
 
 
 
 
Goodwill acquired
492,400,000 
2,200,000 
 
3,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Percentage of Voting Interests Acquired
 
 
 
 
 
 
 
 
100.00% 
 
 
 
 
 
 
 
Consideration received by acquiree shareholders (in dollars per share)
 
 
 
 
 
$ 21 
 
 
 
 
 
 
 
 
 
 
Cash paid to extinguish Zale Corporation outstanding debt as of May 29, 2014
 
 
 
 
 
478,200,000 
 
 
 
 
 
 
 
 
 
 
Face amount
 
 
 
 
 
 
 
 
1,400,000,000 
 
400,000,000 
 
600,000,000 
 
400,000,000 
 
Debt instrument, maturity period
 
 
 
 
 
 
 
 
 
 
 
2 years 
 
5 years 
 
 
Deferred revenue recognition period of extended service plan sales
 
 
 
 
 
 
 
10 years 
 
 
 
 
 
 
 
 
Debt issuance cost
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,000,000 
Goodwill
519,200,000 
26,800,000 
24,600,000 
 
 
 
 
 
499,400,000 
525,100,000 
 
 
 
 
 
 
Deferred tax liabilities
 
 
 
 
 
(29,600,000)
(36,100,000)
 
 
 
 
 
 
 
 
 
Fair value of net assets acquired
 
 
 
 
 
25,700,000 
 
 
 
 
 
 
 
 
 
 
Initial accounting incomplete, adjustment, financial liabilities
 
 
 
 
 
 
1,400,000,000 
 
 
 
 
 
 
 
 
 
Acquisition related costs
 
 
 
 
 
 
 
$ 58,000,000 
 
 
 
 
 
 
 
 
Acquisitions - Acquisition Consideration (Details) (Zale, USD $)
In Millions, except Per Share data, unless otherwise specified
0 Months Ended
May 29, 2014
Zale
 
Business Acquisition [Line Items]
 
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 
Consideration received by acquiree shareholders (in dollars per share)
$ 21 
Acquisitions - Assets Acquired and Liabilities Assumed (Details) (USD $)
In Millions, unless otherwise specified
0 Months Ended 3 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
May 29, 2014
Zale
Nov. 1, 2014
Zale
May 29, 2014
Zale
May 29, 2014
Initial fair values
Zale
Business Acquisition [Line Items]
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
 
$ 28.8 
$ 28.8 
Inventories
 
 
 
 
 
856.7 
855.6 
Other current assets
 
 
 
 
 
22.4 
22.5 
Property, plant and equipment
 
 
 
 
 
103.6 
104.2 
Intangible Assets:
 
 
 
 
 
 
 
Trade names
 
 
 
 
 
417.0 
420.0 
Favorable leases
 
 
 
 
 
50.2 
50.2 
Deferred tax assets
 
 
 
 
 
132.8 
126.3 
Other assets
 
 
 
 
 
25.4 
25.4 
Current liabilities
 
 
 
 
 
(206.3)
(202.8)
Deferred revenue
 
 
 
 
 
(93.3)
(93.0)
Unfavorable leases
 
 
 
 
 
(50.5)
(50.5)
Unfavorable contracts
 
 
 
 
 
(65.6)
(65.6)
Deferred tax liabilities
 
 
 
 
 
(234.0)
(263.6)
Other liabilities
 
 
 
 
 
(28.6)
(24.6)
Fair value of net assets acquired
 
 
 
 
 
958.6 
932.9 
Goodwill
519.2 
26.8 
24.6 
 
 
499.4 
525.1 
Total consideration transferred
 
 
 
 
 
1,458.0 
1,458.0 
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract]
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
 
 
Inventories
 
 
 
1.1 
 
 
 
Other current assets
 
 
 
(0.1)
 
 
 
Property, plant and equipment
 
 
 
(0.6)
 
 
 
Trade names
 
 
 
(3.0)
 
 
 
Favorable leases
 
 
 
 
 
 
Deferred tax assets
 
 
 
6.5 
 
 
 
Other assets
 
 
 
 
 
 
Current liabilities
 
 
 
(3.5)
 
 
 
Deferred revenue
 
 
 
(0.3)
 
 
 
Unfavorable leases
 
 
 
 
 
 
Unfavorable contracts
 
 
 
 
 
 
Deferred tax liabilities
 
 
 
29.6 
36.1 
 
 
Other liabilities
 
 
 
(4.0)
 
 
 
Fair value of net assets acquired
 
 
 
25.7 
 
 
 
Goodwill
 
 
 
(25.7)
 
 
 
Total consideration transferred
 
 
 
$ 0 
 
 
 
Acquisitions - Operating Results Since Acquisition Date (Details) (Zale, USD $)
In Millions, unless otherwise specified
8 Months Ended
Jan. 31, 2015
Zale
 
Business Acquisition [Line Items]
 
Sales
$ 1,215.6 
Operating loss
(8.2)
Net loss
$ (6.5)
Acquisitions - Proforma Results of Operations (Details) (Zale, USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Zale
 
 
Business Acquisition [Line Items]
 
 
Pro forma sales
$ 6,325.1 
$ 6,039.9 
Pro forma net income
$ 462.1 
$ 361.9 
Pro forma earnings per share – basic (in dollars per share)
$ 5.78 
$ 4.51 
Pro forma earnings per share – diluted (in dollars per share)
$ 5.76 
$ 4.48 
Segment Information - Additional Information (Details)
12 Months Ended
Jan. 31, 2015
Segment
state
Segment Reporting [Abstract]
 
Number of reportable segments
Number of States in which entity operates
50 
Segment Information - Summary of Activity by Segment (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Segment Reporting Information [Line Items]
 
 
 
Sales
$ 5,736.3 
$ 4,209.2 
$ 3,983.4 
Operating income (loss)
576.6 
570.5 
560.5 
Depreciation and amortization
149.7 
110.2 
99.4 
Total assets
6,327.6 
4,029.2 
 
Total liabilities
3,517.2 
1,466.1 
 
Operating Segments
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Sales
5,736.3 
4,209.2 
3,983.4 
Operating income (loss)
576.6 
570.5 
560.5 
Depreciation and amortization
149.7 
110.2 
99.4 
Capital additions
220.2 
152.7 
134.2 
Total assets
6,327.6 
4,029.2 
3,719.0 
Total long-lived assets
1,632.2 
514.4 
455.0 
Total liabilities
3,517.2 
1,466.1 
1,389.1 
Diamonds and diamond jewelry
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Sales
3,450.6 
2,552.1 
2,410.7 
Gold, silver jewelry, other products and services
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Sales
1,784.5 
1,236.9 
1,116.5 
Watches
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Sales
501.2 
420.2 
456.2 
Sterling Jewelers |
Operating Segments
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Sales
3,765.0 
3,517.6 
3,273.9 
Operating income (loss)
624.3 
553.2 
547.8 
Depreciation and amortization
95.7 
88.8 
75.9 
Capital additions
157.6 
134.2 
110.9 
Total assets
3,647.3 
3,311.0 
2,979.2 
Total long-lived assets
488.3 
423.6 
377.5 
Total liabilities
2,022.9 
1,299.3 
1,243.4 
Zale Jewelry |
Operating Segments
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Sales
1,068.7 
 
 
Operating income (loss)
(1.9)
 
 
Depreciation and amortization
29.4 
 
 
Capital additions
35.1 
 
 
Purchase accounting adjustments
35.1 
 
 
Total assets
1,903.6 
 
 
Total long-lived assets
1,014.4 
 
 
Total liabilities
514.6 
 
 
Piercing Pagoda |
Operating Segments
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Sales
146.9 
 
 
Operating income (loss)
(6.3)
 
 
Depreciation and amortization
1.6 
 
 
Capital additions
6.9 
 
 
Purchase accounting adjustments
10.8 
 
 
Total assets
132.8 
 
 
Total long-lived assets
46.5 
 
 
Total liabilities
47.1 
 
 
UK Jewelry |
Operating Segments
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Sales
743.6 
685.6 
709.5 
Operating income (loss)
52.2 
42.4 
40.0 
Depreciation and amortization
22.1 
21.4 
23.5 
Capital additions
20.2 
18.4 
23.1 
Total assets
413.5 
484.6 
449.9 
Total long-lived assets
73.8 
81.1 
76.8 
Total liabilities
128.1 
139.3 
116.9 
Other |
Operating Segments
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Sales
12.1 
6.0 
Operating income (loss)
(91.7)
(25.1)
(27.3)
Depreciation and amortization
0.9 
Capital additions
0.4 
0.1 
0.2 
Transaction costs, Integration costs, and Severance costs
59.8 
 
 
Total assets
230.4 
233.6 
289.9 
Total long-lived assets
9.2 
9.7 
0.7 
Total liabilities
804.5 
27.5 
28.8 
CANADA |
Zale Jewelry |
Operating Segments
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Sales
$ 205.5 
 
 
Earnings Per Share - Schedule of Earnings per Share (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Equity [Abstract]
 
 
 
Net income
$ 381.3 
$ 368.0 
$ 359.9 
Basic weighted average number of shares outstanding
79.9 
80.2 
82.3 
Dilutive effect of share awards
0.3 
0.5 
0.5 
Diluted weighted average number of shares outstanding
80.2 
80.7 
82.8 
Earnings per share - basic (usd per share)
$ 4.77 
$ 4.59 
$ 4.37 
Earnings per share - diluted (usd per share)
$ 4.75 
$ 4.56 
$ 4.35 
Earnings Per Share - Additional Information (Detail)
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Equity [Abstract]
 
 
 
Effect of treasury shares and non-vested restricted stock excluded from basic weighted average number of shares outstanding
7,281,854 
6,961,632 
4,882,625 
Anti-dilutive shares excluded from the calculation of earnings per share
24,378 
70,447 
192,374 
Common Shares, Treasury Shares, Reserves and Dividends - Additional Information (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 12 Months Ended 0 Months Ended
Aug. 2, 2014
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Mar. 25, 2015
Subsequent Event
Class of Stock [Line Items]
 
 
 
 
 
Common shares, par value (usd per share)
 
$ 0.18 
$ 0.18 
 
 
Proceeds from issuance of common shares
 
$ 6.1 
$ 9.3 
$ 21.6 
 
Treasury stock held (shares)
 
6,933,684 
6,954,596 
 
 
Treasury stock reissued
 
309,305 
437,913 
 
 
Dividends declared per share (usd per share)
 
$ 0.72 
$ 0.60 
$ 0.48 
$ 0.22 
Reclassifications to retained earnings
$ 234.8 
 
 
 
 
Common Shares, Treasury Shares, Reserves and Dividends - Share Repurchase (Details) (USD $)
12 Months Ended 0 Months Ended 12 Months Ended 1 Months Ended 2 Months Ended 12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Jun. 14, 2013
2013 Program
Jan. 31, 2015
2013 Program
Feb. 1, 2014
2013 Program
Oct. 31, 2011
2011 Program
Dec. 31, 2011
2011 Program
Feb. 1, 2014
2011 Program
Feb. 2, 2013
2011 Program
Class of Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
Amount authorized
 
 
 
$ 350,000,000.0 
 
 
$ 300,000,000 
$ 350,000,000.0 
 
 
Shares repurchased (shares)
288,393 
1,557,673 
6,425,296 
 
288,393 
808,428 
 
 
749,245 
6,425,296 
Amount repurchased
29,800,000 
104,700,000 
287,200,000 
 
29,800,000 
54,600,000 
 
 
50,100,000 
287,200,000 
Average repurchase price per share (usd per share)
$ 103.37 
$ 67.24 
$ 44.70 
 
$ 103.37 
$ 67.54 
 
 
$ 66.92 
$ 44.70 
Remaining authorized repurchase amount
 
 
 
 
$ 265,600,000 
 
 
 
 
 
Common Shares, Treasury Shares, Reserves and Dividends - Dividends (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Jan. 31, 2015
Nov. 1, 2014
Aug. 2, 2014
May 3, 2014
Feb. 1, 2014
Nov. 2, 2013
Aug. 3, 2013
May 4, 2013
Feb. 2, 2013
Oct. 27, 2012
Jul. 28, 2012
Apr. 28, 2012
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Equity [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash dividend per share (usd per share)
$ 0.18 
$ 0.18 
$ 0.18 
$ 0.18 
$ 0.15 
$ 0.15 
$ 0.15 
$ 0.15 
$ 0.12 
$ 0.12 
$ 0.12 
$ 0.12 
$ 0.72 
$ 0.6 
$ 0.48 
Total dividends
$ 14.4 
$ 14.5 
$ 14.4 
$ 14.4 
$ 12.0 
$ 12.0 
$ 12.1 
$ 12.1 
$ 9.8 
$ 9.8 
$ 9.6 
$ 10.3 
$ 57.7 
$ 48.2 
$ 39.5 
Dividends declared
$ 14.4 
 
 
 
$ 12.0 
 
 
 
 
 
 
 
$ 14.4 
$ 12.0 
 
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated OCI by Component and Reclassifications Out of Accumulated OCI (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Movement in Accumulated Other Comprehensive Income [Roll Forward]
 
 
 
Beginning balance
$ (178.5)
$ (175.7)
$ (159.2)
OCI before reclassifications
(70.9)
(10.1)
(3.3)
Amounts reclassified from AOCI
12.8 
7.3 
(13.2)
Total other comprehensive income (loss)
(58.1)
(2.8)
(16.5)
Ending balance
(236.6)
(178.5)
(175.7)
Foreign currency translation
 
 
 
Movement in Accumulated Other Comprehensive Income [Roll Forward]
 
 
 
Beginning balance
(137.0)
(149.4)
(148.9)
OCI before reclassifications
(60.6)
12.4 
(0.5)
Total other comprehensive income (loss)
(60.6)
12.4 
(0.5)
Ending balance
(197.6)
(137.0)
(149.4)
Gains (losses) on cash flow hedges
 
 
 
Movement in Accumulated Other Comprehensive Income [Roll Forward]
 
 
 
Beginning balance
(14.3)
1.0 
22.1 
OCI before reclassifications
6.2 
(22.0)
(6.7)
Amounts reclassified from AOCI
12.5 
6.7 
(14.4)
Total other comprehensive income (loss)
18.7 
(15.3)
(21.1)
Ending balance
4.4 
(14.3)
1.0 
Pension plan |
Actuarial gains (losses)
 
 
 
Movement in Accumulated Other Comprehensive Income [Roll Forward]
 
 
 
Beginning balance
(42.5)
(44.4)
(51.5)
OCI before reclassifications
(15.8)
0.2 
4.7 
Amounts reclassified from AOCI
1.6 
1.7 
2.4 
Total other comprehensive income (loss)
(14.2)
1.9 
7.1 
Ending balance
(56.7)
(42.5)
(44.4)
Pension plan |
Prior service credit (cost)
 
 
 
Movement in Accumulated Other Comprehensive Income [Roll Forward]
 
 
 
Beginning balance
15.3 
17.1 
19.1 
OCI before reclassifications
(0.7)
(0.7)
(0.8)
Amounts reclassified from AOCI
(1.3)
(1.1)
(1.2)
Total other comprehensive income (loss)
(2.0)
(1.8)
(2.0)
Ending balance
$ 13.3 
$ 15.3 
$ 17.1 
Accumulated Other Comprehensive Income (Loss) - Reclassifications out of AOCI (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Reclassification adjustment for (gains) losses to net income
$ 18.6 
$ 11.1 
$ (22.4)
Reclassification adjustment for (gains) losses to net income
(6.1)
(4.4)
8.0 
Reclassification adjustment from AOCI on derivatives, net of tax
12.5 
6.7 
(14.4)
Reclassification adjustment from AOCI, pension and other postretirement benefit plans, before tax
0.3 
0.8 
1.6 
Reclassification adjustment from AOCI, pension and other postretirement benefit plans, tax
(0.2)
(0.4)
Reclassification adjustment from AOCI, pension and other postretirement benefit plans, net of tax
0.3 
0.6 
1.2 
Amounts reclassified from AOCI
12.8 
7.3 
(13.2)
Foreign currency contracts |
Cost of Sales
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Reclassification adjustment for (gains) losses to net income
1.3 
(0.9)
(0.4)
Commodity contracts |
Cost of Sales
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Reclassification adjustment for (gains) losses to net income
17.3 
12.0 
(22.0)
Amortization of unrecognized net prior service credit |
Selling, General and Administrative Expenses
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Reclassification adjustment from AOCI, pension and other postretirement benefit plans, before tax
(1.7)
(1.5)
(1.6)
Amortization of unrecognized actuarial loss |
Selling, General and Administrative Expenses
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Reclassification adjustment from AOCI, pension and other postretirement benefit plans, before tax
$ 2.0 
$ 2.3 
$ 3.2 
Income Taxes - Summary of Income and Income Taxes (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Income before income taxes:
 
 
 
– US
$ 380.8 
$ 493.7 
$ 494.3 
– Foreign
159.8 
72.8 
62.6 
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 
Income Taxes - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Operating Loss Carryforwards [Line Items]
 
 
 
 
Statutory tax rate
35.00% 
35.00% 
35.00% 
 
Foreign gross capital loss carry forwards
$ 68.0 
$ 74.2 
 
 
Change in valuation allowance
7.5 
0.7 
3.6 
 
Unrecognized tax benefits
11.4 
4.6 
4.5 
4.8 
Increase resulting from settlements with taxing authorities
10.5 
 
 
 
Accrued interest related to unrecognized tax benefits
2.1 
 
 
 
Acquired existing unrecognized tax benefits
4.3 
 
Accrued penalties
0.8 
 
 
 
Zale
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Acquired existing unrecognized tax benefits
1.4 
 
 
 
BERMUDA
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Statutory tax rate
0.00% 
 
 
 
Domestic Tax Authority
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Deferred Tax Assets, Operating Loss Carryforwards
69.4 
 
 
 
Foreign Tax Authority
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Deferred Tax Assets, Operating Loss Carryforwards
$ 14.3 
 
 
 
Income Taxes - Reconciliation of Statutory Tax Rate to Effective Tax Rate (Details)
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Income Tax Disclosure [Abstract]
 
 
 
US federal income tax rates
35.00% 
35.00% 
35.00% 
US state income taxes
2.10% 
2.50% 
2.70% 
Differences between US federal and foreign statutory income tax rates
(0.80%)
(0.90%)
(0.60%)
Expenditures permanently disallowable for tax purposes, net of permanent tax benefits
0.80% 
0.60% 
0.80% 
Disallowable transaction costs
0.70% 
0.00% 
0.00% 
Impact of global reinsurance arrangements
(1.50%)
(0.20%)
0.00% 
Impact of global financing arrangements
(7.20%)
(1.90%)
(2.10%)
Other items
0.40% 
(0.10%)
(0.40%)
Effective tax rate
29.50% 
35.00% 
35.40% 
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Assets
 
 
Allowances for doubtful accounts
$ 46.0 
$ 39.7 
Revenue deferral
172.7 
134.3 
Derivative instruments
6.9 
Value of foreign capital and trading losses
15.0 
15.8 
Total gross deferred tax assets (liabilities)
422.9 
271.7 
Valuation allowance
(24.3)
(16.8)
Deferred tax assets (liabilities)
398.6 
254.9 
(Liabilities)
 
 
Intangible assets
(133.0)
Derivative instruments
(2.2)
 
Total gross deferred tax assets (liabilities)
(449.8)
(251.3)
Deferred tax assets (liabilities)
(449.8)
(251.3)
Total
 
 
Intangible assets
(133.0)
Allowances for doubtful accounts
46.0 
39.7 
Revenue deferral
172.7 
134.3 
Derivative instruments
(2.2)
6.9 
Value of foreign capital and trading losses
15.0 
15.8 
Total gross deferred tax assets (liabilities)
(26.9)
20.4 
Deferred tax assets (liabilities)
(51.2)
3.6 
Current assets
4.5 
3.0 
Current liabilities
(145.8)
(113.1)
Non-current assets
111.1 
113.7 
Non-current liabilities
(21.0)
Domestic Tax Authority
 
 
(Liabilities)
 
 
US property, plant and equipment
(50.7)
(70.1)
Total
 
 
Property, plant and equipment
(50.7)
(70.1)
Foreign Tax Authority
 
 
Assets
 
 
Foreign property, plant and equipment
7.0 
7.0 
Total
 
 
Property, plant and equipment
7.0 
7.0 
Included In Income Taxes
 
 
Assets
 
 
Straight-line lease payments
31.8 
27.5 
Deferred compensation
11.1 
9.9 
Share-based compensation
5.8 
10.3 
Other temporary differences
49.8 
20.3 
Net operating losses and foreign tax credits
83.7 
(Liabilities)
 
 
Inventory valuation
(256.4)
(169.2)
Retirement benefit obligations
(7.5)
(12.0)
Total
 
 
Inventory valuation
(256.4)
(169.2)
Straight-line lease payments
31.8 
27.5 
Deferred compensation
11.1 
9.9 
Retirement benefit obligations
(7.5)
(12.0)
Share-based compensation
5.8 
10.3 
Other temporary differences
49.8 
20.3 
Net operating losses and foreign tax credits
$ 83.7 
$ 0 
Income Taxes - Summary of Activity of Unrecognized Tax Benefits (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Reconciliation of Unrecognized Tax Benefits
 
 
 
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 
Prior year tax positions, 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 
Other Operating Income, Net - Components of Other Operating Income, Net (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Other Income and Expenses [Abstract]
 
 
 
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 
Accounts Receivable, Net - Portfolio of Accounts Receivable (Details) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Accounts receivable, net
$ 1,567.6 
$ 1,374.0 
 
Consumer Portfolio Segment
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Accounts receivable, net
1,552.9 
1,356.0 
1,192.9 
Other Accounts Receivable
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Accounts receivable, net
$ 14.7 
$ 18.0 
 
Accounts Receivable, Net - Additional Information (Detail) (Other Accounts Receivable, USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Other Accounts Receivable
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Gross accounts receivable
$ 13.7 
$ 12.8 
Valuation of allowance
$ 0.5 
$ 0.3 
Accounts Receivable, Net - Allowance for Credit Losses (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Financing Receivable, Allowance for Credit Losses [Roll Forward]
 
 
 
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
1,567.6 
1,374.0 
 
Consumer Portfolio Segment
 
 
 
Financing Receivable, Allowance for Credit Losses [Roll Forward]
 
 
 
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 
Accounts Receivable, Net - Credit Quality Indicator and Age Analysis (Details) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Gross
$ 1,666.0 
$ 1,453.8 
$ 1,280.6 
Valuation allowance
(113.1)
(97.8)
(87.7)
Gross
100.00% 
100.00% 
100.00% 
Valuation allowance
6.80% 
6.70% 
6.80% 
Performing Financing Receivable [Member]
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Gross
96.20% 
96.30% 
96.40% 
Valuation allowance
3.10% 
3.20% 
3.30% 
Performing Financing Receivable [Member] |
Period One [Member] |
0 to 30 Days Aged Performing [Member]
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Gross
1,332.2 
1,170.4 
1,030.3 
Valuation allowance
(41.1)
(36.3)
(33.8)
Performing Financing Receivable [Member] |
Period Two [Member] |
31 to 90 Days Aged Performing [Member]
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Gross
271.1 
229.9 
203.9 
Valuation allowance
(9.3)
(8.0)
(7.5)
Nonperforming Financing Receivable [Member]
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Gross
3.80% 
3.70% 
3.60% 
Valuation allowance
100.00% 
100.00% 
100.00% 
Nonperforming Financing Receivable [Member] |
Period Two [Member] |
More Than 90 Days Aged Non Performing [Member]
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Gross
62.7 
53.5 
46.4 
Valuation allowance
$ (62.7)
$ (53.5)
$ (46.4)
Inventories - Additional Information (Detail) (Consignment Inventory [Member], USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Consignment Inventory [Member]
 
 
Inventories
 
 
Other inventory
$ 434.6 
$ 312.6 
Inventories - Summary of Inventory Components (Details) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Inventory Disclosure [Abstract]
 
 
Raw materials
$ 75.2 
$ 41.8 
Finished goods
2,363.8 
1,446.2 
Total inventories
$ 2,439.0 
$ 1,488.0 
Inventories - Rollforward of Inventory Reserves (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Balance at beginning of period
$ 16.3 
$ 23.4 
$ 29.3 
Charged to profit
44.6 
33.3 
23.6 
Utilized
(32.5)
(40.4)
(29.5)
Balance at end of period
$ 28.4 
$ 16.3 
$ 23.4 
Property, Plant and Equipment, Net - Summary of Property, Plant and Equipment, Net (Detail) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 1,518.0 
$ 1,275.7 
Accumulated depreciation and amortization
(852.1)
(788.1)
Property, plant and equipment, net
665.9 
487.6 
Land and buildings
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
36.0 
37.2 
Leasehold Improvements
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
556.4 
461.4 
Furniture and fixtures
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
596.6 
537.3 
Equipment, including software
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
278.6 
221.1 
Construction in progress
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 50.4 
$ 18.7 
Property, Plant and Equipment, Net - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Property, Plant and Equipment [Abstract]
 
 
 
Depreciation and amortization expense
$ 140.1 
$ 110.2 
$ 99.4 
Impairment of assets
$ 0.8 
$ 0.7 
$ 2.6 
Goodwill and Intangibles - Summary of Goodwill (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Goodwill [Roll Forward]
 
 
Beginning Balance
$ 26.8 
$ 24.6 
Acquisitions
492.4 
2.2 
Ending Balance
519.2 
26.8 
Sterling Jewelers
 
 
Goodwill [Roll Forward]
 
 
Beginning Balance
23.2 
24.6 
Acquisitions
(1.4)
Ending Balance
23.2 
23.2 
Zale Jewelry
 
 
Goodwill [Roll Forward]
 
 
Beginning Balance
Acquisitions
492.4 
Ending Balance
492.4 
Piercing Pagoda
 
 
Goodwill [Roll Forward]
 
 
Beginning Balance
Acquisitions
Ending Balance
UK Jewelry
 
 
Goodwill [Roll Forward]
 
 
Beginning Balance
Acquisitions
Ending Balance
Other
 
 
Goodwill [Roll Forward]
 
 
Beginning Balance
3.6 
Acquisitions
3.6 
Ending Balance
$ 3.6 
$ 3.6 
Goodwill and Intangibles - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Finite-Lived Intangible Assets [Line Items]
 
 
 
Amortization of intangible assets
$ 9.6 
 
 
Accumulated amortization
23.5 
 
 
Amortization of intangible liabilities
23.7 
Zale
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Accumulated amortization
9.7 
 
 
Intangible liabilities, weighted average useful life
4 years 
 
 
Zale |
Trade Names and Favorable Leases
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Amortization of intangible assets
$ 9.3 
 
 
Intangible assets, weighted average useful life
3 years 
 
 
Goodwill and Intangibles - Composition of Finite-Lived Intangibles (Details) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Definite-lived intangible assets:
 
 
Gross carrying amount
$ 49.6 
 
Accumulated amortization
(9.3)
 
Net carrying amount
40.3 
 
Intangible assets, gross
456.4 
 
Total intangible assets, net
447.1 
Definite-lived intangible liabilities:
 
 
Gross carrying amount
(114.3)
 
Accumulated amortization
23.5 
 
Total
(90.8)
 
Unfavorable leases
 
 
Definite-lived intangible liabilities:
 
 
Gross carrying amount
(48.7)
 
Accumulated amortization
9.7 
 
Total
(39.0)
 
Unfavorable contracts
 
 
Definite-lived intangible liabilities:
 
 
Gross carrying amount
(65.6)
 
Accumulated amortization
13.8 
 
Total
(51.8)
 
Trade names
 
 
Definite-lived intangible assets:
 
 
Gross carrying amount
1.5 
 
Accumulated amortization
(0.2)
 
Net carrying amount
1.3 
 
Favorable leases
 
 
Definite-lived intangible assets:
 
 
Gross carrying amount
48.1 
 
Accumulated amortization
(9.1)
 
Net carrying amount
39.0 
 
Trade names
 
 
Definite-lived intangible assets:
 
 
Indefinite-lived trade names
$ 406.8 
 
Goodwill and Intangibles - Summary of Future Amortization (Details) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Definite-lived intangible assets amortization expense
 
Fiscal 2016
$ 13.9 
Fiscal 2017
13.9 
Fiscal 2018
9.4 
Fiscal 2019
2.7 
Fiscal 2020
0.3 
Thereafter
0.1 
Net carrying amount
40.3 
Definite-lived intangible liabilities amortization expense
 
Fiscal 2016
30.1 
Fiscal 2017
19.8 
Fiscal 2018
13.1 
Fiscal 2019
7.6 
Fiscal 2020
5.6 
Thereafter
14.6 
Total
90.8 
Trade names
 
Definite-lived intangible assets amortization expense
 
Fiscal 2016
0.3 
Fiscal 2017
0.3 
Fiscal 2018
0.3 
Fiscal 2019
0.2 
Fiscal 2020
0.1 
Thereafter
0.1 
Net carrying amount
1.3 
Favorable leases
 
Definite-lived intangible assets amortization expense
 
Fiscal 2016
13.6 
Fiscal 2017
13.6 
Fiscal 2018
9.1 
Fiscal 2019
2.5 
Fiscal 2020
0.2 
Thereafter
Net carrying amount
39.0 
Unfavorable leases
 
Definite-lived intangible liabilities amortization expense
 
Fiscal 2016
14.5 
Fiscal 2017
14.4 
Fiscal 2018
7.7 
Fiscal 2019
2.2 
Fiscal 2020
0.2 
Thereafter
Total
39.0 
Unfavorable contracts
 
Definite-lived intangible liabilities amortization expense
 
Fiscal 2016
15.6 
Fiscal 2017
5.4 
Fiscal 2018
5.4 
Fiscal 2019
5.4 
Fiscal 2020
5.4 
Thereafter
14.6 
Total
$ 51.8 
Other Assets - Components of Other Assets (Detail) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
 
 
 
Deferred extended service plan costs
$ 69.7 
$ 61.9 
 
Investments
25.2 
 
Goodwill
519.2 
26.8 
24.6 
Other assets
45.1 
25.3 
 
Total other assets
140.0 
87.2 
 
Deferred costs related to the sale of the extended service plan
$ 24.9 
$ 21.9 
 
Investments - Summary of Available-for-sale Securities (Details) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
 
Cost
$ 25.2 
Unrealized Gain (Loss)
Fair Value
25.2 
US Treasury securities
 
Schedule of Available-for-sale Securities [Line Items]
 
Cost
9.7 
Unrealized Gain (Loss)
(0.1)
Fair Value
9.6 
US government agency securities
 
Schedule of Available-for-sale Securities [Line Items]
 
Cost
1.4 
Unrealized Gain (Loss)
Fair Value
1.4 
Corporate bonds and notes
 
Schedule of Available-for-sale Securities [Line Items]
 
Cost
10.6 
Unrealized Gain (Loss)
0.2 
Fair Value
10.8 
Corporate equity securities
 
Schedule of Available-for-sale Securities [Line Items]
 
Cost
3.5 
Unrealized Gain (Loss)
(0.1)
Fair Value
$ 3.4 
Investments - Additional Information (Details) (Available-for-sale Securities, USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Available-for-sale Securities
 
Schedule of Available-for-sale Securities [Line Items]
 
Assets Held by Insurance Regulators
$ 7.2 
Investments - Summary of Investments in Debt Securities Outstanding (Details) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Cost
 
Less than one year
$ 2.0 
Year two through year five
11.2 
Year six through year ten
8.4 
After ten years
0.1 
Total investment in debt securities
21.7 
Fair Value
 
Less than one year
1.9 
Year two through year five
11.1 
Year six through year ten
8.7 
After ten years
0.1 
Total investment in debt securities
$ 21.8 
Derivatives - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Derivative [Line Items]
 
 
Derivative, notional amount in gold
81,000 
50,000 
Foreign currency contracts |
Not Designated as Hedging Instrument
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
$ 40.3 
$ 22.1 
Maximum
 
 
Derivative [Line Items]
 
 
Derivative, Remaining Maturity
12 months 
 
Cash Flow Hedging
 
 
Derivative [Line Items]
 
 
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months
3.4 
 
Cash Flow Hedging |
Foreign currency contracts
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
$ 23.5 
$ 42.3 
Derivative, Remaining Maturity
12 months 
12 months 
Cash Flow Hedging |
Commodity contracts
 
 
Derivative [Line Items]
 
 
Derivative, Remaining Maturity
11 months 
12 months 
Derivatives - Fair Value of Presentation of Derivative Assets and Liabilities (Details) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative assets
$ 7.4 
$ 1.0 
Fair value of derivative liabilities
(2.9)
Designated as Hedging Instrument
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative assets
7.3 
0.8 
Fair value of derivative liabilities
(2.9)
Foreign currency contracts |
Designated as Hedging Instrument |
Other current assets
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative assets
1.0 
Foreign currency contracts |
Designated as Hedging Instrument |
Other assets
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative assets
Foreign currency contracts |
Designated as Hedging Instrument |
Other current liabilities
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative liabilities
(2.1)
Foreign currency contracts |
Designated as Hedging Instrument |
Other liabilities
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative liabilities
Foreign currency contracts |
Not Designated as Hedging Instrument |
Other current assets
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative assets
0.1 
0.2 
Foreign currency contracts |
Not Designated as Hedging Instrument |
Other current liabilities
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative liabilities
Commodity contracts |
Designated as Hedging Instrument |
Other current assets
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative assets
6.3 
0.8 
Commodity contracts |
Designated as Hedging Instrument |
Other assets
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative assets
Commodity contracts |
Designated as Hedging Instrument |
Other current liabilities
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative liabilities
(0.8)
Commodity contracts |
Designated as Hedging Instrument |
Other liabilities
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative liabilities
$ 0 
$ 0 
Derivatives - Derivatives Designated as Cash Flow Hedges (Details) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Foreign currency contracts
 
 
 
Derivative [Line Items]
 
 
 
Accumulated Other Comprehensive Income (Loss), before Tax
$ 0.9 
$ (2.3)
 
Commodity contracts
 
 
 
Derivative [Line Items]
 
 
 
Accumulated Other Comprehensive Income (Loss), before Tax
5.7 
(18.8)
 
Cash Flow Hedging
 
 
 
Derivative [Line Items]
 
 
 
Accumulated Other Comprehensive Income (Loss), before Tax
6.6 
(21.1)
 
Cash Flow Hedging |
Foreign currency contracts
 
 
 
Derivative [Line Items]
 
 
 
Accumulated Other Comprehensive Income (Loss), before Tax
0.9 
(2.3)
1.3 
Cash Flow Hedging |
Commodity contracts
 
 
 
Derivative [Line Items]
 
 
 
Accumulated Other Comprehensive Income (Loss), before Tax
$ 5.7 
$ (18.8)
$ (0.5)
Derivatives - Foreign Currency Contracts (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Cash Flow Hedging
 
 
Movement in Accumulated Other Comprehensive Income [Roll Forward]
 
 
Gains (losses) recorded in AOCI, end of period
$ 6.6 
$ (21.1)
Foreign currency contracts
 
 
Movement in Accumulated Other Comprehensive Income [Roll Forward]
 
 
Gains (losses) recorded in AOCI, end of period
0.9 
(2.3)
Foreign currency contracts |
Cash Flow Hedging
 
 
Movement in Accumulated Other Comprehensive Income [Roll Forward]
 
 
(Losses) gains recorded in AOCI, beginning of period
(2.3)
1.3 
Current period gains (losses) recognized in OCI
1.9 
(2.7)
Gains (losses) recorded in AOCI, end of period
0.9 
(2.3)
Commodity contracts
 
 
Movement in Accumulated Other Comprehensive Income [Roll Forward]
 
 
Gains (losses) recorded in AOCI, end of period
5.7 
(18.8)
Commodity contracts |
Cash Flow Hedging
 
 
Derivative [Line Items]
 
 
Accumulated Other Comprehensive Income Loss Before Tax Related To Net Terminated Contracts
(0.5)
18.2 
Movement in Accumulated Other Comprehensive Income [Roll Forward]
 
 
(Losses) gains recorded in AOCI, beginning of period
(18.8)
(0.5)
Current period gains (losses) recognized in OCI
7.2 
(30.3)
Gains (losses) recorded in AOCI, end of period
5.7 
(18.8)
Cost of Sales |
Foreign currency contracts |
Cash Flow Hedging
 
 
Movement in Accumulated Other Comprehensive Income [Roll Forward]
 
 
Losses (gains) reclassified from AOCI to net (loss) income
1.3 
(0.9)
Cost of Sales |
Commodity contracts |
Cash Flow Hedging
 
 
Movement in Accumulated Other Comprehensive Income [Roll Forward]
 
 
Losses (gains) reclassified from AOCI to net (loss) income
$ 17.3 
$ 12.0 
Derivatives - Commodity Contracts (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Cash Flow Hedging
 
 
Movement in Accumulated Other Comprehensive Income [Roll Forward]
 
 
Gains (losses) recorded in AOCI, end of period
$ 6.6 
$ (21.1)
Commodity contracts
 
 
Movement in Accumulated Other Comprehensive Income [Roll Forward]
 
 
Gains (losses) recorded in AOCI, end of period
5.7 
(18.8)
Commodity contracts |
Cash Flow Hedging
 
 
Movement in Accumulated Other Comprehensive Income [Roll Forward]
 
 
(Losses) gains recorded in AOCI, beginning of period
(18.8)
(0.5)
Current period gains (losses) recognized in OCI
7.2 
(30.3)
Gains (losses) recorded in AOCI, end of period
5.7 
(18.8)
Cost of Sales |
Commodity contracts |
Cash Flow Hedging
 
 
Movement in Accumulated Other Comprehensive Income [Roll Forward]
 
 
Losses (gains) reclassified from AOCI to net (loss) income
$ 17.3 
$ 12.0 
Derivatives - Derivatives not Designated as Hedging Instruments (Details) (Not Designated as Hedging Instrument, USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Derivative [Line Items]
 
 
Foreign currency contracts not designated as hedging
$ 0.6 
$ (5.5)
Foreign currency contracts |
Other Income
 
 
Derivative [Line Items]
 
 
Foreign currency contracts not designated as hedging
$ 0.6 
$ (5.5)
Fair Value Measurements - Fair Value of Assets and Liabilities (Details) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Quoted prices in active markets for identical assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets, Fair Value Disclosure
$ 13.0 
$ 0 
Liabilities, Fair Value Disclosure
Significant other observable inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets, Fair Value Disclosure
19.6 
1.0 
Liabilities, Fair Value Disclosure
(2.9)
US Treasury securities |
Quoted prices in active markets for identical assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets, Fair Value Disclosure
9.6 
US Treasury securities |
Significant other observable inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets, Fair Value Disclosure
Corporate equity securities |
Quoted prices in active markets for identical assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets, Fair Value Disclosure
3.4 
Corporate equity securities |
Significant other observable inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets, Fair Value Disclosure
Foreign currency contracts |
Quoted prices in active markets for identical assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets, Fair Value Disclosure
Liabilities, Fair Value Disclosure
Foreign currency contracts |
Significant other observable inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets, Fair Value Disclosure
1.1 
0.2 
Liabilities, Fair Value Disclosure
(2.1)
Commodity contracts |
Quoted prices in active markets for identical assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets, Fair Value Disclosure
Liabilities, Fair Value Disclosure
Commodity contracts |
Significant other observable inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets, Fair Value Disclosure
6.3 
0.8 
Liabilities, Fair Value Disclosure
(0.8)
US government agency securities |
Quoted prices in active markets for identical assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets, Fair Value Disclosure
US government agency securities |
Significant other observable inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets, Fair Value Disclosure
1.4 
Corporate bonds and notes |
Quoted prices in active markets for identical assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets, Fair Value Disclosure
Corporate bonds and notes |
Significant other observable inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets, Fair Value Disclosure
10.8 
Carrying Value
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets, Fair Value Disclosure
32.6 
1.0 
Liabilities, Fair Value Disclosure
(2.9)
Carrying Value |
US Treasury securities
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets, Fair Value Disclosure
9.6 
Carrying Value |
Corporate equity securities
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets, Fair Value Disclosure
3.4 
Carrying Value |
Foreign currency contracts
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets, Fair Value Disclosure
1.1 
0.2 
Liabilities, Fair Value Disclosure
(2.1)
Carrying Value |
Commodity contracts
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets, Fair Value Disclosure
6.3 
0.8 
Liabilities, Fair Value Disclosure
(0.8)
Carrying Value |
US government agency securities
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets, Fair Value Disclosure
1.4 
Carrying Value |
Corporate bonds and notes
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets, Fair Value Disclosure
$ 10.8 
$ 0 
Fair Value Measurements - Outstanding Debt (Details) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Carrying Value
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Outstanding debt
$ 1,389.7 
$ 0 
Fair Value
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Outstanding debt
1,406.5 
Senior Notes |
Level 2 |
Carrying Value
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Outstanding debt
398.5 
Senior Notes |
Level 2 |
Fair Value
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Outstanding debt
415.3 
Securitization Facility |
Level 2 |
Carrying Value
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Outstanding debt
600.0 
Securitization Facility |
Level 2 |
Fair Value
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Outstanding debt
600.0 
Term Loan |
Level 2 |
Carrying Value
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Outstanding debt
390.0 
 
Term Loan |
Level 2 |
Fair Value
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Outstanding debt
390.0 
 
Capital Lease Obligations |
Level 2 |
Carrying Value
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Outstanding debt
1.2 
Capital Lease Obligations |
Level 2 |
Fair Value
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Outstanding debt
$ 1.2 
$ 0 
Pension Plans - Change in UK Plan Assets (Details) (Foreign Pension Plan, Defined Benefit, USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Foreign Pension Plan, Defined Benefit
 
 
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
 
 
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 
Pension Plans - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
1 Months Ended 12 Months Ended
Apr. 1, 2011
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
Employer discretionary contribution amount
 
$ 1.8 
$ 1.0 
$ 0.7 
Foreign Pension Plan, Defined Benefit
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
Future amortization of gain (loss)
 
3.3 
 
 
Future amortization of prior service cost
 
(2.2)
 
 
Accumulated benefit obligation
 
245.2 
210.3 
 
Employer contributions
 
4.2 
4.9 
 
Estimated future employer contributions in next fiscal year
 
2.4 
 
 
Foreign Pension Plan, Defined Benefit |
Debt Securities
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
Target plan asset allocations
 
52.00% 
 
 
Foreign Pension Plan, Defined Benefit |
Growth Funds
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
Target plan asset allocations
 
35.00% 
 
 
Foreign Pension Plan, Defined Benefit |
Corporate equity securities
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
Target plan asset allocations
 
8.00% 
 
 
Foreign Pension Plan, Defined Benefit |
Real Estate
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
Target plan asset allocations
 
5.00% 
 
 
Group One
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
Employer discretionary contribution amount
 
7.6 
7.1 
6.5 
Employer matching contribution, percent of match
50.00% 
 
 
 
Employer matching contribution, percent of employees' gross pay
6.00% 
 
 
 
Group Two
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
Cost recognized
 
$ 2.6 
$ 2.4 
$ 2.1 
Pension Plans - Change in UK Benefit Obligation (Details) (Foreign Pension Plan, Defined Benefit, USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Foreign Pension Plan, Defined Benefit
 
 
 
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
 
 
 
Benefit obligation at beginning of year
$ 226.3 
$ 212.6 
 
Service cost
2.3 
2.4 
3.6 
Past service cost
0.9 
0.9 
 
Interest cost
9.7 
9.3 
9.5 
Members’ contributions
0.7 
0.7 
 
Actuarial loss (gain)
47.5 
(0.1)
 
Defined Benefit Plan, Benefits Paid
(10.2)
(9.3)
 
Foreign currency changes
(18.4)
9.8 
 
Benefit obligation at end of year
258.8 
226.3 
212.6 
Funded status at end of year: UK Plan assets less benefit obligation
$ 37.0 
$ 56.3 
 
Pension Plans - Components of UK Net Asset Recognized (Details) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Defined Benefit Plan Disclosure [Line Items]
 
 
Non-current assets
$ 37.0 
$ 56.3 
Foreign Pension Plan, Defined Benefit
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Non-current assets
37.0 
56.3 
Non-current liabilities
Net asset recognized
$ 37.0 
$ 56.3 
Pension Plans - AOCI Items not yet Recognized (Details) (Foreign Pension Plan, Defined Benefit, USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Foreign Pension Plan, Defined Benefit
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Net actuarial loss
$ (56.7)
$ (42.5)
$ (44.4)
Net prior service credit
$ 13.3 
$ 15.3 
$ 17.1 
Pension Plans - Components of Net Periodic Pension Cost (Details) (Foreign Pension Plan, Defined Benefit, USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Foreign Pension Plan, Defined Benefit
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
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 
Pension Plans - Assumptions used to Determine Benefit Obligations and Periodic Pension Costs (Details) (Foreign Pension Plan, Defined Benefit)
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Foreign Pension Plan, Defined Benefit
 
 
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% 
Pension Plans - Fair Value Measurements of Plan Assets (Details) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Level 3
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Fair Value of Plan Assets
$ 12.3 
$ 11.6 
$ 10.4 
Foreign Pension Plan, Defined Benefit
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Fair Value of Plan Assets
295.8 
282.6 
261.1 
Foreign Pension Plan, Defined Benefit |
Level 1
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Fair Value of Plan Assets
62.5 
70.6 
 
Foreign Pension Plan, Defined Benefit |
Level 2
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Fair Value of Plan Assets
221.0 
200.4 
 
Foreign Pension Plan, Defined Benefit |
Level 3
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Fair Value of Plan Assets
12.3 
11.6 
 
Foreign Pension Plan, Defined Benefit |
Corporate equity securities
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Fair Value of Plan Assets
23.6 
41.0 
 
Foreign Pension Plan, Defined Benefit |
Corporate equity securities |
Level 1
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Fair Value of Plan Assets
12.2 
19.1 
 
Foreign Pension Plan, Defined Benefit |
Corporate equity securities |
Level 2
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Fair Value of Plan Assets
11.4 
21.9 
 
Foreign Pension Plan, Defined Benefit |
Growth Funds
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Fair Value of Plan Assets
99.0 
100.5 
 
Foreign Pension Plan, Defined Benefit |
Growth Funds |
Level 1
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Fair Value of Plan Assets
49.8 
50.8 
 
Foreign Pension Plan, Defined Benefit |
Growth Funds |
Level 2
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Fair Value of Plan Assets
49.2 
49.7 
 
Foreign Pension Plan, Defined Benefit |
Sovereign Debt Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Fair Value of Plan Assets
95.8 
64.2 
 
Foreign Pension Plan, Defined Benefit |
Sovereign Debt Securities [Member] |
Level 2
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Fair Value of Plan Assets
95.8 
64.2 
 
Foreign Pension Plan, Defined Benefit |
Corporate bonds and notes
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Fair Value of Plan Assets
64.6 
64.6 
 
Foreign Pension Plan, Defined Benefit |
Corporate bonds and notes |
Level 2
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Fair Value of Plan Assets
64.6 
64.6 
 
Foreign Pension Plan, Defined Benefit |
Real Estate
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Fair Value of Plan Assets
12.3 
11.6 
 
Foreign Pension Plan, Defined Benefit |
Real Estate |
Level 3
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Fair Value of Plan Assets
12.3 
11.6 
 
Foreign Pension Plan, Defined Benefit |
Cash [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Fair Value of Plan Assets
0.5 
0.7 
 
Foreign Pension Plan, Defined Benefit |
Cash [Member] |
Level 1
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Fair Value of Plan Assets
$ 0.5 
$ 0.7 
 
Pension Plans - Changes in Fair Value of Level 3 Investment Assets (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Level 3
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Fair Value of Plan Assets
$ 12.3 
$ 11.6 
$ 10.4 
Actual return on UK Plan assets
 
1.2 
 
Foreign Pension Plan, Defined Benefit
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Fair Value of Plan Assets
295.8 
282.6 
261.1 
Actual return on UK Plan assets
43.9 
13.1 
 
Foreign Pension Plan, Defined Benefit |
Level 3
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Fair Value of Plan Assets
12.3 
11.6 
 
Actual return on UK Plan assets
$ 0.7 
 
 
Pension Plans - Fair Value of Unfunded, Non-qualified Deferred Compensation Plans Assets (Details) (Group Two, USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined Benefit Plan, Assets for Plan Benefits
$ 29.8 
$ 24.5 
Level 2
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined Benefit Plan, Assets for Plan Benefits
9.0 
8.2 
Level 1
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined Benefit Plan, Assets for Plan Benefits
20.8 
16.3 
Life Insurance
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined Benefit Plan, Assets for Plan Benefits
9.0 
8.2 
Life Insurance |
Level 2
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined Benefit Plan, Assets for Plan Benefits
9.0 
8.2 
Money Market Funds
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined Benefit Plan, Assets for Plan Benefits
20.8 
16.3 
Money Market Funds |
Level 1
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined Benefit Plan, Assets for Plan Benefits
$ 20.8 
$ 16.3 
Loans, Overdrafts and Long-Term Debt (Detail) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Debt Disclosure [Abstract]
 
 
Revolving credit facility
$ 0 
$ 0 
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 
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 
Loans, Overdrafts and Long-Term Debt - Additional Information (Detail) (USD $)
12 Months Ended 0 Months Ended 12 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Jan. 31, 2015
Term Loan
Feb. 1, 2014
Term Loan
Feb. 2, 2013
Term Loan
Jan. 31, 2015
Credit Facility
Jan. 31, 2015
Credit Facility
Revolving Credit Facility
Nov. 1, 2014
Credit Facility
Revolving Credit Facility
Feb. 1, 2014
Credit Facility
Revolving Credit Facility
May 24, 2011
Credit Facility
Revolving Credit Facility
Jan. 31, 2015
Credit Facility
Term Loan
May 15, 2014
Securitization Facility
Jan. 31, 2015
Securitization Facility
May 15, 2014
Securitization Facility
Jan. 31, 2015
Year One [Member]
Credit Facility
Term Loan
Jan. 31, 2015
Year Two [Member]
Credit Facility
Term Loan
Jan. 31, 2015
Year Three [Member]
Credit Facility
Term Loan
Jan. 31, 2015
Year Four [Member]
Credit Facility
Term Loan
Jan. 31, 2015
Year Five [Member]
Credit Facility
Term Loan
May 29, 2014
Zale
Jan. 31, 2015
Zale
Unsecured Bridge Facility
Feb. 19, 2014
Zale
Unsecured Bridge Facility
May 19, 2014
Signet UK Finance plc
Senior Unsecured Notes Due in 2024
Jan. 31, 2015
Signet UK Finance plc
Senior Unsecured Notes Due in 2024
May 19, 2014
Signet UK Finance plc
Senior Unsecured Notes Due in 2024
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit facility, maximum borrowing capacity
 
 
 
 
 
 
 
 
 
 
$ 400,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Face amount
 
 
 
 
 
 
 
 
 
 
 
400,000,000 
 
 
600,000,000 
 
 
 
 
 
1,400,000,000 
 
800,000,000 
 
 
400,000,000 
Stated interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.70% 
Proceeds from debt, net of issuance costs
 
 
 
400,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
393,900,000 
 
 
Debt instrument, maturity period
 
 
 
 
 
 
 
5 years 
 
 
 
 
2 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarterly repayment rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.00% 
7.50% 
10.00% 
12.50% 
15.00% 
 
 
 
 
 
 
Securitization facility
600,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of Credit Facility, Amount Outstanding
 
 
 
 
 
 
 
 
 
 
 
390,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average interest rate
 
 
 
 
 
 
 
 
1.14% 
 
 
1.52% 
 
1.50% 
 
 
 
 
 
 
 
 
 
 
 
 
Letters of Credit Outstanding, Amount
 
 
 
 
 
 
 
25,400,000 
 
10,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Covenant, maximum leverage ratio
 
 
 
 
 
 
2.50 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Covenant, minimum coverage ratio
 
 
 
 
 
 
1.40 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capitalized issuance costs written off
 
 
 
 
 
 
900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt issuance cost
 
 
 
 
 
 
6,700,000 
 
 
 
 
 
 
2,800,000 
 
 
 
 
 
 
 
4,000,000 
 
 
7,000,000 
 
Amortization of Financing Costs
7,400,000 
400,000 
400,000 
 
 
 
900,000 
 
 
 
 
 
 
900,000 
 
 
 
 
 
 
 
4,000,000 
 
 
500,000 
 
Revolving credit facility
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bank Overdrafts
71,600,000 
19,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current portion of senior unsecured term loan
$ 25,000,000 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrued Expenses and Other Current Liabilities - Accrued Expenses and Other Current Liabilities (Detail) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Payables and Accruals [Abstract]
 
 
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 
Accrued Expenses and Other Current Liabilities - Summary of Activity in Sales Returns Reserve (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Balance at beginning of period
$ 8.4 
$ 7.6 
$ 7.3 
Net adjustment
6.9 
0.8 
0.3 
Balance at end of period
$ 15.3 
$ 8.4 
$ 7.6 
Accrued Expenses and Other Current Liabilities - Additional Information (Detail)
12 Months Ended
Jan. 31, 2015
Payables and Accruals [Abstract]
 
Lifetime diamond guarantee inspection period
6 months 
Accrued Expenses and Other Current Liabilities - Summary of Activity in Warranty Reserve (Details) (Warranty Reserves, USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Warranty Reserves
 
 
 
Movement in Standard Product Warranty Accrual [Roll Forward]
 
 
 
Balance at beginning of period
$ 19.1 
$ 18.5 
$ 15.1 
Warranty obligations acquired
28.4 
Warranty expense
7.4 
7.4 
8.6 
Utilized
(10.0)
(6.8)
(5.2)
Balance at end of period
$ 44.9 
$ 19.1 
$ 18.5 
Accrued Expenses and Other Current Liabilities - Components of Warranty Reserve (Details) (Warranty Reserves, USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Warranty Reserves
 
 
 
 
Warranty Reserve [Line Items]
 
 
 
 
Current liabilities
$ 17.2 
$ 6.7 
 
 
Non-current liabilities
27.7 
12.4 
 
 
Included within accrued expenses above
$ 44.9 
$ 19.1 
$ 18.5 
$ 15.1 
- Deferred Revenue (Detail) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Deferred Revenue Arrangement [Line Items]
 
 
 
Voucher promotions and other
$ 22.7 
$ 15.5 
 
Total deferred revenue
811.9 
616.7 
 
Current liabilities
248.0 
173.0 
 
Non-current liabilities
563.9 
443.7 
 
Sterling Jewelers
 
 
 
Deferred Revenue Arrangement [Line Items]
 
 
 
ESP deferred revenue
668.9 
601.2 
549.7 
Zale Jewelry
 
 
 
Deferred Revenue Arrangement [Line Items]
 
 
 
ESP deferred revenue
$ 120.3 
$ 0 
 
Deferred Revenue - Deferred Revenue Rollforward (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Sterling Jewelers
 
 
Deferred Revenue Arrangement [Line Items]
 
 
ESP deferred revenue, beginning of period
$ 601.2 
$ 549.7 
Plans sold
257.5 
223.3 
Revenue recognized
(189.8)
(171.8)
ESP deferred revenue, end of period
668.9 
601.2 
Zale
 
 
Deferred Revenue Arrangement [Line Items]
 
 
ESP deferred revenue, beginning of period
 
Plans acquired
93.3 
 
Plans sold
88.4 
 
Revenue recognized
(61.4)
 
ESP deferred revenue, end of period
$ 120.3 
 
Other Liabilities-Non-Current - Summary of Other Liabilities (Details) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Other Liabilities Disclosure [Abstract]
 
 
 
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 
8.1 
Other liabilities
96.1 
11.4 
 
Total other liabilities
$ 230.2 
$ 121.7 
 
Other Liabilities-Non-Current - Summary of Lease Loss Reserve (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Allowance for Loan and Lease Losses [Roll Forward]
 
 
At beginning of period:
$ 5.8 
$ 8.1 
Adjustments, net
(0.4)
(1.6)
Utilization
(1.2)
(0.7)
At end of period
$ 4.2 
$ 5.8 
Share-Based Compensation - Narrative (Details)
12 Months Ended
Jan. 31, 2015
Omnibus Plan
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Vesting period
3 years 
Performance measurement period
3 years 
Shares available for grant
7,000,000 
Executive Plans
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Performance measurement period
3 years 
Shares available for grant
8,568,841 
Plan period
10 years 
Annual maximum percent of issued common shares issuable under share plan
10.00% 
Maximum percentage of shares to be granted over ten year period
10.00% 
Maximum percentage of shares to be granted over ten year period including discretionary option plans
5.00% 
Discount from market price
15.00% 
Share-Based Compensation - Share-based Compensation Expense (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Income tax benefit
$ (4.3)
$ (5.2)
$ (5.4)
Selling, General and Administrative Expenses
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based compensation expense
$ 12.1 
$ 14.4 
$ 15.7 
Share-Based Compensation - Significant Assumptions used to Estimate Fair Value of Awards under Omnibus Plan (Details) (Omnibus Plan, USD $)
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Omnibus Plan
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share price (usd per share)
$ 104.57 
$ 67.39 
$ 47.15 
Risk free interest rate
0.80% 
0.30% 
0.40% 
Expected term
2 years 8 months 12 days 
2 years 9 months 18 days 
2 years 10 months 24 days 
Expected volatility
32.10% 
41.70% 
44.20% 
Dividend yield
0.90% 
1.10% 
1.20% 
Weighted average grant date fair value per share of awards granted (usd per share)
$ 103.12 
$ 66.10 
$ 46.12 
Share-Based Compensation - Summary of Activity of Awards Granted under Omnibus Plan (Details) (Omnibus Plan, USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Omnibus Plan
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
 
 
Beginning Balance (shares)
1.0 
 
 
Granted (shares)
0.3 
 
 
Vested (shares)
(0.4)
 
 
Lapsed (shares)
(0.2)
 
 
Ending Balance (shares)
0.7 
1.0 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
 
 
 
Beginning Balance (usd per share)
$ 51.44 
 
 
Granted (usd per share)
$ 103.12 
$ 66.10 
$ 46.12 
Vested (usd per share)
$ 45.64 
 
 
Lapsed (usd per share)
$ 72.26 
 
 
Ending Balance (usd per share)
$ 70.69 
$ 51.44 
 
Weighted average remaining contractual life
1 year 
1 year 
 
Intrinsic value
$ 78.6 
$ 80.1 
 
Share-Based Compensation - Additional Information about Awards Granted under Omnibus Plan (Details) (Omnibus Plan, USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Omnibus Plan
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Total intrinsic value of awards vested
$ 43.9 
$ 25.3 
$ 28.5 
Share-Based Compensation - Significant Assumptions used to Estimate Fair Value of Awards under Share Saving Plan (Details) (Saving Share Plans, USD $)
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Saving Share Plans
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share price (usd per share)
$ 114.93 
$ 72.65 
$ 49.89 
Exercise price (usd per share)
$ 96.67 
$ 59.75 
$ 41.17 
Risk free interest rate
0.90% 
0.70% 
0.40% 
Expected term
2 years 9 months 18 days 
2 years 8 months 12 days 
2 years 8 months 12 days 
Expected volatility
27.60% 
40.20% 
41.00% 
Dividend yield
0.80% 
1.10% 
1.40% 
Weighted average grant date fair value per share of awards granted (usd per share)
$ 28.76 
$ 22.89 
$ 15.40 
Share-Based Compensation - Summary of Activity of Awards Granted under Share Saving Plan (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
 
 
Granted (usd per share)
$ 0.00 
 
Saving Share Plans
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
 
Beginning Balance (shares)
0.3 
 
Granted (shares)
0.1 
 
Exercised (shares)
(0.1)
 
Lapsed (shares)
(0.1)
 
Ending Balance (shares)
0.2 
0.3 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
 
 
Beginning Balance (usd per share)
$ 44.06 
 
Granted (usd per share)
$ 96.67 
 
Exercised (usd per share)
$ 34.93 
 
Lapsed (usd per share)
$ 52.64 
 
Ending Balance (usd per share)
$ 69.05 
$ 44.06 
Weighted average remaining contractual life
1 year 10 months 24 days 
1 year 8 months 12 days 
Intrinsic value
$ 11.0 
$ 9.4 
Shares Exercisable (shares)
Weighted Average Exercise Price, Shares Exercisable (usd per share)
$ 0.00 
$ 0.00 
Intrinsic Value, Shares Exercisable
$ 0 
$ 0 
Share-Based Compensation - Additional Information about Awards Granted under Share Saving Plan (Details) (Saving Share Plans, USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Saving Share Plans
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Weighted average grant date fair value per share of awards granted (usd per share)
$ 28.76 
$ 22.89 
$ 15.40 
Total intrinsic value of options exercised
$ 11.0 
$ 4.9 
$ 3.3 
Cash received from share options exercised
$ 4.3 
$ 2.9 
$ 2.7 
Share-Based Compensation - Summary of Activity of Awards Granted under Executive Plan (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
 
 
Granted (usd per share)
$ 0.00 
 
Executive Plans
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
 
Beginning Balance (shares)
0.1 
 
Granted (shares)
 
Exercised (shares)
 
Lapsed (shares)
 
Ending Balance (shares)
0.1 
0.1 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
 
 
Beginning Balance (usd per share)
$ 39.11 
 
Exercised (usd per share)
$ 42.42 
 
Lapsed (usd per share)
$ 0.00 
 
Ending Balance (usd per share)
$ 35.56 
$ 39.11 
Weighted average remaining contractual life
2 years 8 months 12 days 
3 years 6 months 
Intrinsic value
$ 4.7 
$ 4.1 
Shares Exercisable (shares)
0.1 
0.1 
Weighted Average Exercise Price, Shares Exercisable (usd per share)
$ 35.56 
$ 39.11 
Intrinsic Value, Shares Exercisable
$ 4.7 
$ 4.1 
Share-Based Compensation - Additional Information about Awards Granted under Executive Plans (Details) (Executive Plans, USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Executive Plans
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Total intrinsic value of options exercised
$ 2.9 
$ 4.8 
$ 9.0 
Cash received from share options exercised
$ 1.8 
$ 6.3 
$ 18.9 
Commitments and Contingencies - Operating Leases (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Commitments and Contingencies Disclosure [Abstract]
 
 
 
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 
Commitments and Contingencies - Future Minimum Payments (Details) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
 
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 
Commitments and Contingencies - Narrative (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Property
Feb. 1, 2014
Sep. 24, 2014
Aug. 26, 2014
Jun. 4, 2014
May 28, 2014
Zale Corporation
lawsuit
Loss Contingencies [Line Items]
 
 
 
 
 
 
Number of property leases in United Kingdom
44 
 
 
 
 
 
Number of additional properties sublet
19 
 
 
 
 
 
Capital commitments related to expansion and renovation of stores
$ 42.9 
$ 42.3 
 
 
 
 
Loss Contingency, Pending Claims, Number
 
 
 
 
 
Common Stock Shares Held By Former Stockholders
 
 
2,427,000 
2,450,000 
3,904,000 
 
Common Stock Appraisal Demanded And Not Withdrawn Shares
8,800,000 
 
 
 
 
 
Condensed Consolidating Financial Information - Condensed Consolidated Income Statement (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Condensed Income Statements, Captions [Line Items]
 
 
 
Sales
$ 5,736.3 
$ 4,209.2 
$ 3,983.4 
Cost of sales
(3,662.1)
(2,628.7)
(2,446.0)
Gross margin
2,074.2 
1,580.5 
1,537.4 
Selling, general and administrative expenses
(1,712.9)
(1,196.7)
(1,138.3)
Other operating income, net
215.3 
186.7 
161.4 
Operating income
576.6 
570.5 
560.5 
Intra-entity interest income (expense)
 
Interest expense, net
(36.0)
(4.0)
(3.6)
Income before income taxes
540.6 
566.5 
556.9 
Income taxes
(159.3)
(198.5)
(197.0)
Equity in income of subsidiaries
 
Net income
381.3 
368.0 
359.9 
Consolidation, Eliminations
 
 
 
Condensed Income Statements, Captions [Line Items]
 
 
 
Sales
Cost of sales
Gross margin
Selling, general and administrative expenses
Other operating income, net
Operating income
Intra-entity interest income (expense)
Interest expense, net
Income before income taxes
Income taxes
Equity in income of subsidiaries
(1,529.0)
(1,016.4)
(992.4)
Net income
(1,529.0)
(1,016.4)
(992.4)
Signet Jewelers Limited |
Reportable Legal Entities
 
 
 
Condensed Income Statements, Captions [Line Items]
 
 
 
Sales
Cost of sales
Gross margin
Selling, general and administrative expenses
(2.5)
(2.9)
(3.5)
Other operating income, net
Operating income
(2.5)
(2.9)
(3.5)
Intra-entity interest income (expense)
Interest expense, net
Income before income taxes
(2.5)
(2.9)
(3.5)
Income taxes
Equity in income of subsidiaries
383.8 
370.9 
363.4 
Net income
381.3 
368.0 
359.9 
Signet UK Finance plc |
Reportable Legal Entities
 
 
 
Condensed Income Statements, Captions [Line Items]
 
 
 
Sales
Cost of sales
Gross margin
Selling, general and administrative expenses
Other operating income, net
Operating income
Intra-entity interest income (expense)
13.2 
Interest expense, net
(13.9)
Income before income taxes
(0.7)
Income taxes
0.1 
Equity in income of subsidiaries
Net income
(0.6)
Guarantor Subsidiaries |
Reportable Legal Entities
 
 
 
Condensed Income Statements, Captions [Line Items]
 
 
 
Sales
5,671.4 
4,162.9 
3,948.5 
Cost of sales
(3,647.0)
(2,621.2)
(2,443.4)
Gross margin
2,024.4 
1,541.7 
1,505.1 
Selling, general and administrative expenses
(1,683.6)
(1,193.1)
(1,135.6)
Other operating income, net
220.8 
183.8 
161.7 
Operating income
561.6 
532.4 
531.2 
Intra-entity interest income (expense)
(129.6)
(34.5)
(41.1)
Interest expense, net
(14.8)
(3.9)
(3.7)
Income before income taxes
417.2 
494.0 
486.4 
Income taxes
(159.5)
(196.8)
(195.8)
Equity in income of subsidiaries
579.8 
344.2 
333.9 
Net income
837.5 
641.4 
624.5 
Non-Guarantor Subsidiaries |
Reportable Legal Entities
 
 
 
Condensed Income Statements, Captions [Line Items]
 
 
 
Sales
64.9 
46.3 
34.9 
Cost of sales
(15.1)
(7.5)
(2.6)
Gross margin
49.8 
38.8 
32.3 
Selling, general and administrative expenses
(26.8)
(0.7)
0.8 
Other operating income, net
(5.5)
2.9 
(0.3)
Operating income
17.5 
41.0 
32.8 
Intra-entity interest income (expense)
116.4 
34.5 
41.1 
Interest expense, net
(7.3)
(0.1)
0.1 
Income before income taxes
126.6 
75.4 
74.0 
Income taxes
0.1 
(1.7)
(1.2)
Equity in income of subsidiaries
565.4 
301.3 
295.1 
Net income
$ 692.1 
$ 375.0 
$ 367.9 
Condensed Consolidating Financial Information - Condensed Consolidated Statement of Comprehensive Income (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Condensed Statement of Comprehensive Income [Line Items]
 
 
 
Net income
$ 381.3 
$ 368.0 
$ 359.9 
Other comprehensive income (loss):
 
 
 
Foreign currency translation adjustments
(60.6)
12.4 
(0.5)
Available-for-sale securities:
 
 
 
Unrealized loss
 
 
Cash flow hedges:
 
 
 
Unrealized gain (loss)
6.2 
(22.0)
(6.7)
Reclassification adjustment for (gains) losses to net income
12.5 
6.7 
(14.4)
Pension plan:
 
 
 
Actuarial gain (loss)
(15.8)
0.2 
4.7 
Reclassification adjustment to net income for amortization of actuarial loss
1.6 
1.7 
2.4 
Prior service credits (costs)
(0.7)
(0.7)
(0.8)
Reclassification adjustment to net income for amortization of prior service (credits) costs
(1.3)
(1.1)
(1.2)
Total other comprehensive income (loss)
(58.1)
(2.8)
(16.5)
Total comprehensive income
323.2 
365.2 
343.4 
Consolidation, Eliminations
 
 
 
Condensed Statement of Comprehensive Income [Line Items]
 
 
 
Net income
(1,529.0)
(1,016.4)
(992.4)
Other comprehensive income (loss):
 
 
 
Foreign currency translation adjustments
56.5 
(11.2)
0.5 
Available-for-sale securities:
 
 
 
Unrealized loss
 
 
Cash flow hedges:
 
 
 
Unrealized gain (loss)
(6.2)
22.0 
6.7 
Reclassification adjustment for (gains) losses to net income
(12.5)
(6.7)
14.4 
Pension plan:
 
 
 
Actuarial gain (loss)
15.8 
(0.2)
(4.7)
Reclassification adjustment to net income for amortization of actuarial loss
(1.6)
(1.7)
(2.4)
Prior service credits (costs)
0.7 
0.7 
0.8 
Reclassification adjustment to net income for amortization of prior service (credits) costs
1.3 
1.1 
1.2 
Total other comprehensive income (loss)
54.0 
4.0 
16.5 
Total comprehensive income
(1,475.0)
(1,012.4)
(975.9)
Signet Jewelers Limited |
Reportable Legal Entities
 
 
 
Condensed Statement of Comprehensive Income [Line Items]
 
 
 
Net income
381.3 
368.0 
359.9 
Other comprehensive income (loss):
 
 
 
Foreign currency translation adjustments
(60.6)
12.4 
(0.5)
Available-for-sale securities:
 
 
 
Unrealized loss
 
 
Cash flow hedges:
 
 
 
Unrealized gain (loss)
6.2 
(22.0)
(6.7)
Reclassification adjustment for (gains) losses to net income
12.5 
6.7 
(14.4)
Pension plan:
 
 
 
Actuarial gain (loss)
(15.8)
0.2 
4.7 
Reclassification adjustment to net income for amortization of actuarial loss
1.6 
1.7 
2.4 
Prior service credits (costs)
(0.7)
(0.7)
(0.8)
Reclassification adjustment to net income for amortization of prior service (credits) costs
(1.3)
(1.1)
(1.2)
Total other comprehensive income (loss)
(58.1)
(2.8)
(16.5)
Total comprehensive income
323.2 
365.2 
343.4 
Signet UK Finance plc |
Reportable Legal Entities
 
 
 
Condensed Statement of Comprehensive Income [Line Items]
 
 
 
Net income
(0.6)
Other comprehensive income (loss):
 
 
 
Foreign currency translation adjustments
Available-for-sale securities:
 
 
 
Unrealized loss
 
 
Cash flow hedges:
 
 
 
Unrealized gain (loss)
Reclassification adjustment for (gains) losses to net income
Pension plan:
 
 
 
Actuarial gain (loss)
Reclassification adjustment to net income for amortization of actuarial loss
Prior service credits (costs)
Reclassification adjustment to net income for amortization of prior service (credits) costs
Total other comprehensive income (loss)
Total comprehensive income
(0.6)
Guarantor Subsidiaries |
Reportable Legal Entities
 
 
 
Condensed Statement of Comprehensive Income [Line Items]
 
 
 
Net income
837.5 
641.4 
624.5 
Other comprehensive income (loss):
 
 
 
Foreign currency translation adjustments
(61.1)
13.9 
(0.6)
Available-for-sale securities:
 
 
 
Unrealized loss
 
 
Cash flow hedges:
 
 
 
Unrealized gain (loss)
6.2 
(22.0)
(6.7)
Reclassification adjustment for (gains) losses to net income
12.5 
6.7 
(14.4)
Pension plan:
 
 
 
Actuarial gain (loss)
(15.8)
0.2 
4.7 
Reclassification adjustment to net income for amortization of actuarial loss
1.6 
1.7 
2.4 
Prior service credits (costs)
(0.7)
(0.7)
(0.8)
Reclassification adjustment to net income for amortization of prior service (credits) costs
(1.3)
(1.1)
(1.2)
Total other comprehensive income (loss)
(58.6)
(1.3)
(16.6)
Total comprehensive income
778.9 
640.1 
607.9 
Non-Guarantor Subsidiaries |
Reportable Legal Entities
 
 
 
Condensed Statement of Comprehensive Income [Line Items]
 
 
 
Net income
692.1 
375.0 
367.9 
Other comprehensive income (loss):
 
 
 
Foreign currency translation adjustments
4.6 
(2.7)
0.1 
Available-for-sale securities:
 
 
 
Unrealized loss
 
 
Cash flow hedges:
 
 
 
Unrealized gain (loss)
Reclassification adjustment for (gains) losses to net income
Pension plan:
 
 
 
Actuarial gain (loss)
Reclassification adjustment to net income for amortization of actuarial loss
Prior service credits (costs)
Reclassification adjustment to net income for amortization of prior service (credits) costs
Total other comprehensive income (loss)
4.6 
(2.7)
0.1 
Total comprehensive income
$ 696.7 
$ 372.3 
$ 368.0 
Condensed Consolidating Financial Information - Condensed Consolidated Balance Sheet (Details) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Current assets:
 
 
 
 
Cash and cash equivalents
$ 193.6 
$ 247.6 
$ 301.0 
$ 486.8 
Accounts receivable, net
1,567.6 
1,374.0 
 
 
Intra-entity receivables, net
 
 
Other receivables
63.6 
51.5 
 
 
Other current assets
137.2 
87.0 
 
 
Deferred tax assets
4.5 
3.0 
 
 
Income taxes
1.8 
6.5 
 
 
Inventories
2,439.0 
1,488.0 
 
 
Total current assets
4,407.3 
3,257.6 
 
 
Non-current assets:
 
 
 
 
Property, plant and equipment, net
665.9 
487.6 
 
 
Goodwill
519.2 
26.8 
24.6 
 
Intangible assets, net
447.1 
 
 
Investment in subsidiaries
 
 
 
Intra-entity receivables, net
 
 
 
Other assets
140.0 
87.2 
 
 
Deferred tax assets
111.1 
113.7 
 
 
Retirement benefit asset
37.0 
56.3 
 
 
Total assets
6,327.6 
4,029.2 
 
 
Current liabilities:
 
 
 
 
Loans and overdrafts
97.5 
19.3 
 
 
Accounts payable
277.7 
162.9 
 
 
Intra-entity payables, net
 
 
 
Accrued expenses and other current liabilities
482.4 
328.5 
 
 
Deferred revenue
248.0 
173.0 
 
 
Deferred tax liabilities
145.8 
113.1 
 
 
Income taxes
86.9 
103.9 
 
 
Total current liabilities
1,338.3 
900.7 
 
 
Non-current liabilities:
 
 
 
 
Long-term debt
1,363.8 
 
 
Other liabilities
230.2 
121.7 
 
 
Deferred revenue
563.9 
443.7 
 
 
Deferred tax liabilities
21.0 
 
 
Total liabilities
3,517.2 
1,466.1 
 
 
Shareholders’ equity:
 
 
 
 
Total shareholders’ equity
2,810.4 
2,563.1 
2,329.9 
2,279.1 
Total liabilities and shareholders’ equity
6,327.6 
4,029.2 
 
 
Consolidation, Eliminations
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
Accounts receivable, net
 
 
Intra-entity receivables, net
(183.4)
(285.7)
 
 
Other receivables
 
 
Other current assets
 
 
Deferred tax assets
 
 
Income taxes
 
 
Inventories
 
 
Total current assets
(183.4)
(285.7)
 
 
Non-current assets:
 
 
 
 
Property, plant and equipment, net
 
 
 
Goodwill
 
 
 
Intangible assets, net
 
 
 
Investment in subsidiaries
(3,585.8)
(5,122.3)
 
 
Intra-entity receivables, net
(3,892.4)
(1,098.0)
 
 
Other assets
 
 
 
Deferred tax assets
 
 
 
Retirement benefit asset
 
 
 
Total assets
(7,661.6)
(6,506.0)
 
 
Current liabilities:
 
 
 
 
Loans and overdrafts
 
 
Accounts payable
 
 
Intra-entity payables, net
(183.4)
(285.7)
 
 
Accrued expenses and other current liabilities
 
 
Deferred revenue
 
 
Deferred tax liabilities
 
 
Income taxes
 
 
Total current liabilities
(183.4)
(285.7)
 
 
Non-current liabilities:
 
 
 
 
Intra-entity payables, net
(3,892.4)
(1,098.0)
 
 
Total liabilities
(4,075.8)
(1,383.7)
 
 
Shareholders’ equity:
 
 
 
 
Total shareholders’ equity
(3,585.8)
(5,122.3)
 
 
Total liabilities and shareholders’ equity
(7,661.6)
(6,506.0)
 
 
Signet Jewelers Limited |
Reportable Legal Entities
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
2.1 
1.4 
13.4 
6.1 
Accounts receivable, net
 
 
Intra-entity receivables, net
121.6 
47.7 
 
 
Other receivables
 
 
Other current assets
0.1 
 
 
Deferred tax assets
 
 
Income taxes
 
 
Inventories
 
 
Total current assets
123.8 
49.1 
 
 
Non-current assets:
 
 
 
 
Property, plant and equipment, net
 
 
 
Goodwill
 
 
 
Intangible assets, net
 
 
 
Investment in subsidiaries
2,701.3 
2,526.3 
 
 
Intra-entity receivables, net
 
 
 
Other assets
 
 
 
Deferred tax assets
 
 
 
Retirement benefit asset
 
 
 
Total assets
2,825.1 
2,575.4 
 
 
Current liabilities:
 
 
 
 
Loans and overdrafts
 
 
Accounts payable
 
 
Intra-entity payables, net
 
 
Accrued expenses and other current liabilities
14.7 
12.3 
 
 
Deferred revenue
 
 
Deferred tax liabilities
 
 
Income taxes
 
 
Total current liabilities
14.7 
12.3 
 
 
Non-current liabilities:
 
 
 
 
Total liabilities
14.7 
12.3 
 
 
Shareholders’ equity:
 
 
 
 
Total shareholders’ equity
2,810.4 
2,563.1 
 
 
Total liabilities and shareholders’ equity
2,825.1 
2,575.4 
 
 
Signet UK Finance plc |
Reportable Legal Entities
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
0.1 
Accounts receivable, net
 
 
Intra-entity receivables, net
 
 
Other receivables
 
 
Other current assets
0.7 
 
 
Deferred tax assets
 
 
Income taxes
 
 
Inventories
 
 
Total current assets
0.8 
 
 
Non-current assets:
 
 
 
 
Property, plant and equipment, net
 
 
Goodwill
 
 
Intangible assets, net
 
 
 
Investment in subsidiaries
 
 
Intra-entity receivables, net
402.4 
 
 
Other assets
5.8 
 
 
Deferred tax assets
 
 
Retirement benefit asset
 
 
Total assets
409.0 
 
 
Current liabilities:
 
 
 
 
Loans and overdrafts
 
 
Accounts payable
 
 
Intra-entity payables, net
 
 
Accrued expenses and other current liabilities
2.4 
 
 
Deferred revenue
 
 
Deferred tax liabilities
 
 
Income taxes
(0.2)
 
 
Total current liabilities
2.2 
 
 
Non-current liabilities:
 
 
 
 
Long-term debt
398.5 
 
 
Intra-entity payables, net
 
 
 
Other liabilities
 
 
 
Deferred revenue
 
 
 
Total liabilities
400.7 
 
 
Shareholders’ equity:
 
 
 
 
Total shareholders’ equity
8.3 
 
 
Total liabilities and shareholders’ equity
409.0 
 
 
Guarantor Subsidiaries |
Reportable Legal Entities
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
166.5 
237.0 
271.3 
471.6 
Accounts receivable, net
1,566.2 
1,361.3 
 
 
Intra-entity receivables, net
 
 
Other receivables
53.9 
51.1 
 
 
Other current assets
130.9 
86.5 
 
 
Deferred tax assets
4.3 
2.8 
 
 
Income taxes
1.8 
6.0 
 
 
Inventories
2,376.6 
1,434.5 
 
 
Total current assets
4,300.2 
3,179.2 
 
 
Non-current assets:
 
 
 
 
Property, plant and equipment, net
660.2 
481.5 
 
 
Goodwill
515.6 
23.2 
 
 
Intangible assets, net
447.1 
 
 
 
Investment in subsidiaries
462.8 
1,452.8 
 
 
Intra-entity receivables, net
 
 
 
Other assets
105.3 
87.2 
 
 
Deferred tax assets
111.0 
113.6 
 
 
Retirement benefit asset
37.0 
56.3 
 
 
Total assets
6,639.2 
5,393.8 
 
 
Current liabilities:
 
 
 
 
Loans and overdrafts
97.5 
19.3 
 
 
Accounts payable
273.4 
160.5 
 
 
Intra-entity payables, net
183.4 
285.7 
 
 
Accrued expenses and other current liabilities
456.7 
313.1 
 
 
Deferred revenue
248.0 
173.0 
 
 
Deferred tax liabilities
145.8 
113.1 
 
 
Income taxes
87.7 
101.3 
 
 
Total current liabilities
1,492.5 
1,166.0 
 
 
Non-current liabilities:
 
 
 
 
Long-term debt
365.3 
 
 
 
Intra-entity payables, net
3,892.4 
1,098.0 
 
 
Other liabilities
222.0 
118.5 
 
 
Deferred revenue
563.9 
443.7 
 
 
Deferred tax liabilities
21.0 
 
 
 
Total liabilities
6,557.1 
2,826.2 
 
 
Shareholders’ equity:
 
 
 
 
Total shareholders’ equity
82.1 
2,567.6 
 
 
Total liabilities and shareholders’ equity
6,639.2 
5,393.8 
 
 
Non-Guarantor Subsidiaries |
Reportable Legal Entities
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
24.9 
9.2 
16.3 
9.1 
Accounts receivable, net
1.4 
12.7 
 
 
Intra-entity receivables, net
61.8 
238.0 
 
 
Other receivables
9.7 
0.4 
 
 
Other current assets
5.5 
0.5 
 
 
Deferred tax assets
0.2 
0.2 
 
 
Income taxes
0.5 
 
 
Inventories
62.4 
53.5 
 
 
Total current assets
165.9 
315.0 
 
 
Non-current assets:
 
 
 
 
Property, plant and equipment, net
5.7 
6.1 
 
 
Goodwill
3.6 
3.6 
 
 
Intangible assets, net
 
 
 
Investment in subsidiaries
421.7 
1,143.2 
 
 
Intra-entity receivables, net
3,490.0 
1,098.0 
 
 
Other assets
28.9 
 
 
 
Deferred tax assets
0.1 
0.1 
 
 
Retirement benefit asset
 
 
 
Total assets
4,115.9 
2,566.0 
 
 
Current liabilities:
 
 
 
 
Loans and overdrafts
 
 
Accounts payable
4.3 
2.4 
 
 
Intra-entity payables, net
 
 
Accrued expenses and other current liabilities
8.6 
3.1 
 
 
Deferred revenue
 
 
Deferred tax liabilities
 
 
Income taxes
(0.6)
2.6 
 
 
Total current liabilities
12.3 
8.1 
 
 
Non-current liabilities:
 
 
 
 
Long-term debt
600.0 
 
 
 
Other liabilities
8.2 
3.2 
 
 
Total liabilities
620.5 
11.3 
 
 
Shareholders’ equity:
 
 
 
 
Total shareholders’ equity
3,495.4 
2,554.7 
 
 
Total liabilities and shareholders’ equity
$ 4,115.9 
$ 2,566.0 
 
 
Condensed Consolidating Financial Information - Condensed Consolidated Statement of Cash Flows (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Cash flows from operating activities:
 
 
 
Net cash provided by (used in) operating activities
$ 283.0 
$ 235.5 
$ 312.7 
Investing activities
 
 
 
Purchase of property, plant and equipment
(220.2)
(152.7)
(134.2)
Investment in subsidiaries
 
Purchase of available-for-sale securities
(5.7)
Proceeds from available-for-sale securities
2.5 
Net cash used in investing activities
(1,652.6)
(160.4)
(190.9)
Financing activities
 
 
 
Dividends paid
(55.3)
(46.0)
(38.4)
Intra-entity dividends paid
Proceeds from issuance of common shares
6.1 
9.3 
21.6 
Excess tax benefit from exercise of share awards
11.8 
6.5 
7.4 
Proceeds from long-term debt
2,740.3 
 
 
Repayment of long-term debt
(1,351.9)
 
 
Payment of debt issuance costs
(20.5)
Repurchase of common shares
(29.8)
(104.7)
(287.2)
Net settlement of equity based awards
(18.4)
(9.2)
(11.5)
Capital lease payments
(0.8)
Proceeds from (repayment of) short-term borrowings
39.4 
19.3 
Intra-entity activity, net
Net cash provided by (used in) financing activities
1,320.9 
(124.8)
(308.1)
Cash and cash equivalents at beginning of period
247.6 
301.0 
486.8 
Decrease in cash and cash equivalents
(48.7)
(49.7)
(186.3)
Effect of exchange rate changes on cash and cash equivalents
(5.3)
(3.7)
0.5 
Cash and cash equivalents at end of period
193.6 
247.6 
301.0 
Zale
 
 
 
Investing activities
 
 
 
Acquisition of business
(1,429.2)
Ultra Acquisition
 
 
 
Investing activities
 
 
 
Acquisition of business
1.4 
(56.7)
Botswana Diamond Polishing Factory Acquisition
 
 
 
Investing activities
 
 
 
Acquisition of business
(9.1)
Consolidation, Eliminations
 
 
 
Cash flows from operating activities:
 
 
 
Net cash provided by (used in) operating activities
(153.0)
(610.0)
(786.0)
Investing activities
 
 
 
Purchase of property, plant and equipment
Investment in subsidiaries
28.9 
22.3 
 
Purchase of available-for-sale securities
 
 
Proceeds from available-for-sale securities
 
 
Net cash used in investing activities
28.9 
22.3 
Financing activities
 
 
 
Dividends paid
Intra-entity dividends paid
953.0 
140.0 
786.0 
Proceeds from issuance of common shares
(828.9)
(22.3)
Excess tax benefit from exercise of share awards
Proceeds from long-term debt
 
 
Repayment of long-term debt
 
 
Payment of debt issuance costs
 
 
Repurchase of common shares
Net settlement of equity based awards
Capital lease payments
 
 
Proceeds from (repayment of) short-term borrowings
 
Intra-entity activity, net
470.0 
Net cash provided by (used in) financing activities
124.1 
587.7 
786.0 
Cash and cash equivalents at beginning of period
Decrease in cash and cash equivalents
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at end of period
Consolidation, Eliminations |
Zale
 
 
 
Investing activities
 
 
 
Acquisition of business
 
 
Consolidation, Eliminations |
Ultra Acquisition
 
 
 
Investing activities
 
 
 
Acquisition of business
 
Consolidation, Eliminations |
Botswana Diamond Polishing Factory Acquisition
 
 
 
Investing activities
 
 
 
Acquisition of business
 
 
Signet Jewelers Limited |
Reportable Legal Entities
 
 
 
Cash flows from operating activities:
 
 
 
Net cash provided by (used in) operating activities
150.5 
137.3 
305.7 
Investing activities
 
 
 
Purchase of property, plant and equipment
Investment in subsidiaries
(0.3)
 
Purchase of available-for-sale securities
 
 
Proceeds from available-for-sale securities
 
 
Net cash used in investing activities
(0.3)
Financing activities
 
 
 
Dividends paid
(55.3)
(46.0)
(38.4)
Intra-entity dividends paid
Proceeds from issuance of common shares
6.1 
9.3 
21.6 
Excess tax benefit from exercise of share awards
Proceeds from long-term debt
 
 
Repayment of long-term debt
 
 
Payment of debt issuance costs
 
 
Repurchase of common shares
(29.8)
(104.7)
(287.2)
Net settlement of equity based awards
(18.4)
(9.2)
(11.5)
Capital lease payments
 
 
Proceeds from (repayment of) short-term borrowings
 
Intra-entity activity, net
(52.4)
1.6 
17.1 
Net cash provided by (used in) financing activities
(149.8)
(149.0)
(298.4)
Cash and cash equivalents at beginning of period
1.4 
13.4 
6.1 
Decrease in cash and cash equivalents
0.7 
(12.0)
7.3 
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at end of period
2.1 
1.4 
13.4 
Signet Jewelers Limited |
Reportable Legal Entities |
Zale
 
 
 
Investing activities
 
 
 
Acquisition of business
 
 
Signet Jewelers Limited |
Reportable Legal Entities |
Ultra Acquisition
 
 
 
Investing activities
 
 
 
Acquisition of business
 
Signet Jewelers Limited |
Reportable Legal Entities |
Botswana Diamond Polishing Factory Acquisition
 
 
 
Investing activities
 
 
 
Acquisition of business
 
 
Signet UK Finance plc |
Reportable Legal Entities
 
 
 
Cash flows from operating activities:
 
 
 
Net cash provided by (used in) operating activities
2.2 
Investing activities
 
 
 
Purchase of property, plant and equipment
Investment in subsidiaries
 
Purchase of available-for-sale securities
 
 
Proceeds from available-for-sale securities
 
 
Net cash used in investing activities
Financing activities
 
 
 
Dividends paid
Intra-entity dividends paid
Proceeds from issuance of common shares
8.9 
Excess tax benefit from exercise of share awards
Proceeds from long-term debt
398.4 
 
 
Repayment of long-term debt
 
 
Payment of debt issuance costs
(7.0)
 
 
Repurchase of common shares
Net settlement of equity based awards
Capital lease payments
 
 
Proceeds from (repayment of) short-term borrowings
 
Intra-entity activity, net
(402.4)
Net cash provided by (used in) financing activities
(2.1)
Cash and cash equivalents at beginning of period
Decrease in cash and cash equivalents
0.1 
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at end of period
0.1 
Signet UK Finance plc |
Reportable Legal Entities |
Zale
 
 
 
Investing activities
 
 
 
Acquisition of business
 
 
Signet UK Finance plc |
Reportable Legal Entities |
Ultra Acquisition
 
 
 
Investing activities
 
 
 
Acquisition of business
 
Signet UK Finance plc |
Reportable Legal Entities |
Botswana Diamond Polishing Factory Acquisition
 
 
 
Investing activities
 
 
 
Acquisition of business
 
 
Guarantor Subsidiaries |
Reportable Legal Entities
 
 
 
Cash flows from operating activities:
 
 
 
Net cash provided by (used in) operating activities
166.6 
421.3 
512.5 
Investing activities
 
 
 
Purchase of property, plant and equipment
(219.8)
(152.6)
(134.0)
Investment in subsidiaries
(18.9)
(11.0)
 
Purchase of available-for-sale securities
 
 
Proceeds from available-for-sale securities
 
 
Net cash used in investing activities
(1,669.8)
(162.2)
(190.7)
Financing activities
 
 
 
Dividends paid
Intra-entity dividends paid
(953.0)
(104.4)
(520.1)
Proceeds from issuance of common shares
10.0 
Excess tax benefit from exercise of share awards
11.8 
6.5 
7.4 
Proceeds from long-term debt
400.0 
 
 
Repayment of long-term debt
(10.0)
 
 
Payment of debt issuance costs
(10.7)
 
 
Repurchase of common shares
Net settlement of equity based awards
Capital lease payments
(0.8)
 
 
Proceeds from (repayment of) short-term borrowings
39.4 
19.3 
 
Intra-entity activity, net
1,957.9 
(214.6)
(9.9)
Net cash provided by (used in) financing activities
1,444.6 
(293.2)
(522.6)
Cash and cash equivalents at beginning of period
237.0 
271.3 
471.6 
Decrease in cash and cash equivalents
(58.6)
(34.1)
(200.8)
Effect of exchange rate changes on cash and cash equivalents
(11.9)
(0.2)
0.5 
Cash and cash equivalents at end of period
166.5 
237.0 
271.3 
Guarantor Subsidiaries |
Reportable Legal Entities |
Zale
 
 
 
Investing activities
 
 
 
Acquisition of business
(1,431.1)
 
 
Guarantor Subsidiaries |
Reportable Legal Entities |
Ultra Acquisition
 
 
 
Investing activities
 
 
 
Acquisition of business
 
1.4 
(56.7)
Guarantor Subsidiaries |
Reportable Legal Entities |
Botswana Diamond Polishing Factory Acquisition
 
 
 
Investing activities
 
 
 
Acquisition of business
 
 
Non-Guarantor Subsidiaries |
Reportable Legal Entities
 
 
 
Cash flows from operating activities:
 
 
 
Net cash provided by (used in) operating activities
116.7 
286.9 
280.5 
Investing activities
 
 
 
Purchase of property, plant and equipment
(0.4)
(0.1)
(0.2)
Investment in subsidiaries
(10.0)
(11.0)
 
Purchase of available-for-sale securities
(5.7)
 
 
Proceeds from available-for-sale securities
2.5 
 
 
Net cash used in investing activities
(11.7)
(20.2)
(0.2)
Financing activities
 
 
 
Dividends paid
Intra-entity dividends paid
(35.6)
(265.9)
Proceeds from issuance of common shares
810.0 
22.3 
Excess tax benefit from exercise of share awards
Proceeds from long-term debt
1,941.9 
 
 
Repayment of long-term debt
(1,341.9)
 
 
Payment of debt issuance costs
(2.8)
 
 
Repurchase of common shares
Net settlement of equity based awards
Capital lease payments
 
 
Proceeds from (repayment of) short-term borrowings
 
Intra-entity activity, net
(1,503.1)
(257.0)
(7.2)
Net cash provided by (used in) financing activities
(95.9)
(270.3)
(273.1)
Cash and cash equivalents at beginning of period
9.2 
16.3 
9.1 
Decrease in cash and cash equivalents
9.1 
(3.6)
7.2 
Effect of exchange rate changes on cash and cash equivalents
6.6 
(3.5)
Cash and cash equivalents at end of period
24.9 
9.2 
16.3 
Non-Guarantor Subsidiaries |
Reportable Legal Entities |
Zale
 
 
 
Investing activities
 
 
 
Acquisition of business
1.9 
 
 
Non-Guarantor Subsidiaries |
Reportable Legal Entities |
Ultra Acquisition
 
 
 
Investing activities
 
 
 
Acquisition of business
 
Non-Guarantor Subsidiaries |
Reportable Legal Entities |
Botswana Diamond Polishing Factory Acquisition
 
 
 
Investing activities
 
 
 
Acquisition of business
 
$ (9.1)