SIGNET JEWELERS LTD, 8-K filed on 5/12/2014
Current report filing
Document and Entity Information
12 Months Ended
Feb. 1, 2014
Document Information [Line Items]
 
Document Type
8-K 
Amendment Flag
false 
Document Period End Date
Feb. 01, 2014 
Trading Symbol
SIG 
Entity Registrant Name
SIGNET JEWELERS LTD 
Entity Central Index Key
0000832988 
Consolidated Income Statements (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Feb. 1, 2014
Nov. 2, 2013
Aug. 3, 2013
May 4, 2013
Feb. 2, 2013
Oct. 27, 2012
Jul. 28, 2012
Apr. 28, 2012
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Sales
$ 1,564.0 
$ 771.4 
$ 880.2 
$ 993.6 
$ 1,513.3 
$ 716.2 
$ 853.9 
$ 900.0 
$ 4,209.2 
$ 3,983.4 
$ 3,749.2 
Cost of sales
 
 
 
 
 
 
 
 
(2,628.7)
(2,446.0)
(2,311.6)
Gross margin
648.8 
239.2 
309.7 
382.8 
637.1 
235.4 
311.2 
353.7 
1,580.5 
1,537.4 
1,437.6 
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
(1,196.7)
(1,138.3)
(1,056.7)
Other operating income, net
 
 
 
 
 
 
 
 
186.7 
161.4 
126.5 
Operating income
 
 
 
 
 
 
 
 
570.5 
560.5 
507.4 
Interest expense, net
 
 
 
 
 
 
 
 
(4.0)
(3.6)
(5.3)
(Loss) income before income taxes
 
 
 
 
 
 
 
 
566.5 
556.9 
502.1 
Income taxes
 
 
 
 
 
 
 
 
(198.5)
(197.0)
(177.7)
Net income
$ 175.2 
$ 33.6 
$ 67.4 
$ 91.8 
$ 171.8 
$ 34.9 
$ 70.7 
$ 82.5 
$ 368.0 
$ 359.9 
$ 324.4 
Earnings per share: basic
$ 2.20 
$ 0.42 
$ 0.84 
$ 1.14 
$ 2.13 
$ 0.43 
$ 0.86 
$ 0.96 
$ 4.59 
$ 4.37 
$ 3.76 
Earnings per share: diluted
$ 2.18 
$ 0.42 
$ 0.84 
$ 1.13 
$ 2.12 
$ 0.43 
$ 0.85 
$ 0.96 
$ 4.56 
$ 4.35 
$ 3.73 
Weighted average common shares outstanding: basic
 
 
 
 
 
 
 
 
80.2 
82.3 
86.2 
Weighted average common shares outstanding: diluted
 
 
 
 
 
 
 
 
80.7 
82.8 
87.0 
Dividends declared per share
 
 
 
 
 
 
 
 
$ 0.60 
$ 0.48 
$ 0.20 
Consolidated Statements Of Comprehensive Income (USD $)
In Millions, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Other comprehensive income (loss), pre tax amount:
 
 
 
Foreign currency translation adjustments, pre tax amount
$ 12.4 
$ (0.5)
$ (3.9)
Cash flow hedges, pre tax amount:
 
 
 
Unrealized (loss) gain, pre tax amount
(33.0)
(10.4)
49.7 
Reclassification adjustment for losses (gains) to net income, pre tax amount
11.1 
(22.4)
(24.6)
Pension plan, pre tax amount:
 
 
 
Actuarial gain (loss), pre tax amount
0.2 
6.2 
(10.8)
Reclassification adjustment to net income for amortization of actuarial loss, pre tax amount
2.3 
3.2 
2.6 
Prior service (benefit) costs, pre tax amount
(0.9)
(1.1)
7.5 
Reclassification adjustment to net income for amortization of prior service credits, pre tax amount
(1.5)
(1.6)
(1.0)
Total other comprehensive (loss) income, pre tax amount
(9.4)
(26.6)
19.5 
Other comprehensive income (loss), tax (expense) benefit:
 
 
 
Foreign currency translation adjustments, tax (expense) benefit
   
   
   
Cash flow hedges,tax (expense) benefit:
 
 
 
Unrealized (loss) gain, tax (expense) benefit
11.0 
3.7 
(17.5)
Reclassification adjustment for losses (gains) to net income, tax (expense) benefit
(4.4)
8.0 
8.6 
Pension plan,tax (expense) benefit:
 
 
 
Actuarial gain (loss), tax (expense) benefit
 
(1.5)
3.5 
Reclassification adjustment to net income for amortization of actuarial loss, tax (expense) benefit
(0.6)
(0.8)
(0.8)
Prior service (benefit) costs, tax (expense) benefit
0.2 
0.3 
(2.0)
Reclassification adjustment to net income for amortization of prior service credits, tax (expense) benefit
0.4 
0.4 
0.3 
Total other comprehensive (loss) income, tax (expense) benefit
6.6 
10.1 
(7.9)
Net income
368.0 
359.9 
324.4 
After-tax amount, Other comprehensive income (loss):
 
 
 
After-tax amount, Foreign currency translation adjustments
12.4 
(0.5)
(3.9)
After-tax amount, Cash flow hedges:
 
 
 
After-tax amount, Unrealized (loss) gain
(22.0)
(6.7)
32.2 
(Gains) losses on cash flow hedges reclassification, net of tax
6.7 
(14.4)
(16.0)
After-tax amount, Pension plan:
 
 
 
After-tax amount, Actuarial gain (loss)
0.2 
4.7 
(7.3)
After-tax amount, Reclassification adjustment to net income for amortization of actuarial loss
1.7 
2.4 
1.8 
After-tax amount, Prior service (benefit) costs
(0.7)
(0.8)
5.5 
After-tax amount, Reclassification adjustment to net income for amortization of prior service credits
(1.1)
(1.2)
(0.7)
After-tax amount, Total other comprehensive (loss) income
(2.8)
(16.5)
11.6 
Total comprehensive income
$ 365.2 
$ 343.4 
$ 336.0 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Feb. 1, 2014
Feb. 2, 2013
Current assets:
 
 
Cash and cash equivalents
$ 247.6 
$ 301.0 
Accounts receivable, net
1,374.0 
1,205.3 
Other receivables
51.5 
42.1 
Other current assets
87.0 
85.6 
Deferred tax assets
3.0 
1.6 
Income taxes
6.5 
3.5 
Inventories
1,488.0 
1,397.0 
Total current assets
3,257.6 
3,036.1 
Non-current assets:
 
 
Property, plant and equipment, net
487.6 
430.4 
Other assets
114.0 
99.9 
Deferred tax assets
113.7 
104.1 
Retirement benefit asset
56.3 
48.5 
Total assets
4,029.2 
3,719.0 
Current liabilities:
 
 
Loans and overdrafts
19.3 
 
Accounts payable
162.9 
155.9 
Accrued expenses and other current liabilities
328.5 
326.4 
Deferred revenue
173.0 
159.7 
Deferred tax liabilities
113.1 
129.6 
Income taxes
103.9 
100.3 
Total current liabilities
900.7 
871.9 
Non-current liabilities:
 
 
Other liabilities
121.7 
111.3 
Deferred revenue
443.7 
405.9 
Total liabilities
1,466.1 
1,389.1 
Commitments and contingencies
   
   
Shareholders' equity:
 
 
Common shares of $0.18 par value: authorized 500 shares, 80.2 shares outstanding (2013: 81.4 outstanding)
15.7 
15.7 
Additional paid-in capital
258.8 
246.3 
Other reserves
235.2 
235.2 
Treasury shares at cost: 7.0 shares (2013: 5.8 shares)
(346.2)
(260.0)
Retained earnings
2,578.1 
2,268.4 
Accumulated other comprehensive loss
(178.5)
(175.7)
Total shareholders' equity
2,563.1 
2,329.9 
Total liabilities and shareholders' equity
$ 4,029.2 
$ 3,719.0 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Per Share data, unless otherwise specified
Feb. 1, 2014
Feb. 2, 2013
Common shares, par value
$ 0.18 
$ 0.18 
Common shares, authorized
500 
500 
Common shares, outstanding
80.2 
81.4 
Treasury shares, shares
7.0 
5.8 
Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Cash flows from operating activities
 
 
 
Net income
$ 368.0 
$ 359.9 
$ 324.4 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization of property, plant and equipment
110.2 
99.4 
92.4 
Pension (benefit) expense
(0.5)
3.2 
3.3 
Share-based compensation
14.4 
15.7 
17.0 
Deferred taxation
(20.4)
4.3 
29.3 
Excess tax benefit from exercise of share awards
(6.5)
(7.4)
(3.9)
Facility amendment fee amortization and charges
0.4 
0.4 
1.9 
Other non-cash movements
(3.3)
(1.4)
0.3 
Changes in operating assets and liabilities:
 
 
 
Increase in accounts receivable
(168.3)
(117.1)
(152.5)
Increase in other receivables and other assets
(21.6)
(1.3)
(17.8)
(Increase) decrease in other current assets
(3.9)
(5.2)
1.8 
Increase in inventories
(98.4)
(65.7)
(115.2)
Increase (decrease) in accounts payable
3.2 
(39.6)
57.2 
Increase in accrued expenses and other liabilities
8.6 
13.4 
26.5 
Increase in deferred revenue
50.8 
40.6 
28.9 
Increase in income taxes payable
7.9 
27.2 
43.3 
Pension plan contributions
(4.9)
(13.7)
(14.2)
Effect of exchange rate changes on currency swaps
(0.2)
 
2.5 
Net cash provided by operating activities
235.5 
312.7 
325.2 
Investing activities
 
 
 
Purchase of property, plant and equipment
(152.7)
(134.2)
(97.8)
Net cash used in investing activities
(160.4)
(190.9)
(97.8)
Financing activities
 
 
 
Dividends paid
(46.0)
(38.4)
(8.7)
Proceeds from issuance of common shares
9.3 
21.6 
10.6 
Excess tax benefit from exercise of share awards
6.5 
7.4 
3.9 
Repurchase of common shares
(104.7)
(287.2)
(12.7)
Net settlement of equity based awards
(9.2)
(11.5)
 
Credit facility fees paid
 
 
(2.1)
Proceeds from (repayment of) short-term borrowings
19.3 
 
(31.0)
Net cash used in financing activities
(124.8)
(308.1)
(40.0)
Cash and cash equivalents at beginning of period
301.0 
486.8 
302.1 
(Decrease) increase in cash and cash equivalents
(49.7)
(186.3)
187.4 
Effect of exchange rate changes on cash and cash equivalents
(3.7)
0.5 
(2.7)
Cash and cash equivalents at end of period
247.6 
301.0 
486.8 
Supplemental cash flow information:
 
 
 
Interest paid
3.5 
3.4 
5.1 
Income taxes paid
211.0 
165.6 
105.1 
Ultra Acquisition
 
 
 
Investing activities
 
 
 
Acquisition of business, net of cash received
1.4 
(56.7)
 
Botswana Diamond Polishing Factory Acquisition
 
 
 
Investing activities
 
 
 
Acquisition of business, net of cash received
$ (9.1)
 
 
Consolidated Statements Of Shareholders' Equity (USD $)
In Millions
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, 2011
$ 1,939.0 
$ 15.5 
$ 196.8 
$ 235.2 
 
$ 1,662.3 
$ (170.8)
Net income
324.4 
 
 
 
 
324.4 
 
Other comprehensive income
11.6 
 
 
 
 
 
11.6 
Dividends
(17.4)
 
 
 
 
(17.4)
 
Repurchase of common shares
(12.7)
 
 
 
(12.7)
 
 
Share options exercised
14.6 
0.1 
14.5 
 
 
 
 
Share-based compensation expense
19.6 
 
19.6 
 
 
 
 
Balance at Jan. 28, 2012
2,279.1 
15.6 
230.9 
235.2 
(12.7)
1,969.3 
(159.2)
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 
235.2 
(260.0)
2,268.4 
(175.7)
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 
$ 235.2 
$ (346.2)
$ 2,578.1 
$ (178.5)
Principal accounting policies
Principal accounting policies

1. Principal accounting policies

Signet Jewelers Limited (“Signet”, or the “Company”) is a holding company, incorporated in Bermuda, that operates through its subsidiaries. Signet is a leading retailer whose results principally derive from one business segment—the retailing of jewelry, watches and associated services. The Company manages its business as two geographical reportable segments, being the United States of America (the “US”) and the United Kingdom (the “UK”). The US division operates retail stores under brands including Kay Jewelers, Jared The Galleria Of Jewelry and various regional brands. In Fiscal 2013, Ultra Stores Inc. was acquired by Signet, of which the majority of these stores were converted to the Kay brand during Fiscal 2014, with the remaining being accounted for within the regional brands. See Note 14. The UK division’s retail stores operate under brands including H.Samuel and Ernest Jones.

In the fourth quarter of Fiscal 2014, subsequent to the November 4, 2013 acquisition of a diamond polishing factory in Gaborone, Botswana, management established a separate operating segment (“Other”), which consists of all non-reportable segments including subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones. See Note 14.

The following accounting policies have been applied consistently in the preparation of the Company’s financial statements with respect to items which are considered material in all reporting periods presented herein.

(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 of Signet and its subsidiaries for the 52 week period ended February 1, 2014 (“Fiscal 2014”), as Signet’s fiscal year ends on the Saturday nearest January 31. The comparative periods are for the 53 week period ended February 2, 2013 (“Fiscal 2013”) and the 52 week period ended January 28, 2012 (“Fiscal 2012”). Intercompany balances have been eliminated on consolidation.

(b) Use of estimates

The preparation of consolidated financial statements, in conformity with US GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates and assumptions are primarily made in relation to the valuation of receivables, inventories and deferred revenue, fair value of derivatives, depreciation and asset impairment, the valuation of employee benefits, income taxes and contingencies.

(c) Foreign currency translation

Assets and liabilities denominated in the UK pound sterling are translated into the US dollar at the exchange rate prevailing at the balance sheet date. Equity accounts denominated in the UK pound sterling are translated into US dollars at historical exchange rates. Revenues and expenses denominated in the UK pound sterling are translated into the US dollar at the monthly average exchange rate for the period and calculated each month from the weekly exchange rates weighted by sales of the UK division. Gains and losses resulting from foreign currency transactions are included within the consolidated income statement, whereas translation adjustments and gains and losses related to intercompany loans of a long-term investment nature are recognized as a component of accumulated other comprehensive income (loss) (“OCI”). In addition, as the majority of the sales and expenses related to the factory in Gaborone, Botswana are transacted in US dollars, there is no related foreign currency translation as the US dollar is the functional currency.

 

(d) Revenue recognition

Revenue is recognized when:

 

   

there is persuasive evidence of an agreement or arrangement;

 

   

delivery of products has occurred or services have been rendered;

 

   

the seller’s price to the buyer is fixed and determinable; and

 

   

collectability is reasonably assured.

Signet’s revenue streams and their respective accounting treatments are discussed below:

Merchandise sales

Store sales are recognized when the customer receives and pays for the merchandise at the store with cash, in-house customer finance or a third party credit card. For online sales, 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.

Revenue on the sale of merchandise is 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.

Certain of Signet’s merchandise sales are derived from providing replacement merchandise on behalf of insurance organizations to their customers who have experienced a loss of their property. In these cases, the sales price is established by contract with the insurance organization and revenue on the sale is recognized upon receipt of the merchandise by the customer.

Merchandise repairs

Revenue on repair of merchandise is recognized when the service is complete and the customer collects the merchandise at the store.

Extended service plans and lifetime warranty agreements

The US division sells extended service plans where it is obliged, subject to certain conditions, to perform repair work over the lifetime of the product. Revenue from the sale of extended service plans is deferred over 14 years. Revenue is recognized in relation to the costs expected to be incurred in performing these services, with approximately 45% of revenue recognized within the first two years (February 2, 2013: 46%). The deferral period 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 used. 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.

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 the sale less an estimate of cancellations based on historical experience.

Sale vouchers

In connection with certain promotions, the Company gives customers making a purchase a voucher granting the customers a discount on a future purchase, redeemable 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.

 

The fair value of the voucher is determined based on the average sales transactions in which the vouchers were issued and the estimated average sales transactions when the vouchers are expected to be redeemed, combined with the estimated voucher redemption rate. The fair value allocated to the future purchase is recorded as deferred revenue.

Sale of consignment inventory

Sales of consignment inventory are accounted for on a gross sales basis. This reflects that the Company is the primary obligor providing independent advice, guidance and after sales service to customers. The products sold from consignment inventory are indistinguishable to the customer from other products that are sold from purchased inventory and are sold on the same terms. The Company selects the products and suppliers at its own discretion and is responsible for determining the selling price and the physical security of the products making it liable for any inventory loss. It also takes the credit risk of a sale to the customer.

(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 to stores, inventory shrinkage, store operating and occupancy costs, net bad debts and charges for late payments under the US 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.

(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 $253.8 million in Fiscal 2014 (Fiscal 2013: $245.8 million; Fiscal 2012: $208.6 million).

(h) Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation, amortization and impairment losses. 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 who are 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 changes in 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.

(i) Goodwill and other intangibles

Goodwill represents the excess of the purchase price of acquisitions over the Company’s interest in the fair value of the identifiable assets and liabilities acquired. Goodwill is recorded by the Company’s reporting units based on the acquisitions made by each. Goodwill is not amortized, but is reviewed for impairment and is required to be tested at least annually or whenever events or changes in circumstances indicate it is more likely than not that a reporting unit’s fair value is less than its carrying value. The annual testing date for reporting units within the US and UK segments is the last day of the fourth quarter.

The Company may elect to perform a qualitative assessment for each reporting unit to determine whether it is more likely than not that the fair value of the reporting unit is greater than its carrying value. If a qualitative assessment is not performed, or if as a result of a qualitative assessment it is not more likely than not that the fair value of a reporting unit exceeds its carrying value, then the reporting unit’s fair value is compared to its carrying value. Fair value is determined through the income approach using discounted cash flow models or market-based methodologies. Significant estimates used in these discounted cash flow models include: the weighted average cost of capital; long-term growth rates; expected changes to selling prices, direct costs and profitability of the business; and working capital requirements. Management estimates discount rates using post-tax rates that reflect assessments of the time value of money and Company-specific risks. If the carrying value exceeds the estimated fair value, the Company determines the fair value of all assets and liabilities of the reporting unit, including the implied fair value of goodwill. If the carrying value of goodwill exceeds the implied fair value of goodwill, the Company recognizes an impairment charge equal to the difference.

Goodwill is recorded in other assets. See Note 12.

(j) Inventories

Inventories held in the US and UK division primarily represent goods held for resale and are valued at the lower of cost or market value. Cost is determined using average cost and includes costs directly related to bringing inventory to its present location and condition. These include relevant 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. The write-down is 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.

Inventories held in the Company’s diamond sourcing operations are valued at the lower of cost, as determined on specific identification process, or market.

 

(k) 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, these are matched against the costs of these promotions. Vendor contributions, which are received as general contributions and not related to specific promotional events, are recognized as a reduction of inventory costs.

(l) In-house customer finance programs

Signet’s US division operates customer in-house finance programs that allow customers to finance merchandise purchases from the US division’s stores. Signet recognizes finance charges in accordance with the contractual agreements. Gross interest earned is recorded as other operating income in the income statement. See Note 3. 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. 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 non-accrual status.

(m) Accounts receivable

Accounts receivable are stated at their nominal amounts and primarily include account balances outstanding from Signet’s 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, Signet 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 by Signet.

Accounts receivable under the customer finance programs are shown net of an allowance for uncollectible amounts. See Note 10. This allowance is an estimate of the 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 analyses are 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.

(n) Leases

Assets held under capital leases relate to leases where substantially all the risks and rewards of the asset have passed to Signet. All other leases are defined as operating leases. Where operating leases include predetermined rent increases, those rents 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 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.

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.

 

(o) 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.

At any point in time, various tax years are subject to, or are in the process of, audit 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.

(p) 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. Any gains or losses and prior service costs or credits that arise during the period but are not included as components of net periodic pension cost are recognized, net of tax, in the period within other comprehensive (loss) income.

Signet also operates a defined contribution pension plan in the UK and sponsors a defined contribution 401(k) 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.

(q) Derivative financial instruments and hedge accounting

Signet 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 current or comprehensive income, depending on whether the derivative qualifies as an effective hedge.

If a derivative instrument meets certain hedge accounting criteria, it may be designated as a cash flow hedge on the date it is entered into. A cash flow hedge is a hedge of the exposure to variability in the cash flows of a recognized asset, liability or a forecasted transaction. For cash flow hedge transactions, the effective portion of the changes in fair value of derivatives is recognized directly in equity as a component of accumulated OCI 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 accumulated OCI should be immediately recognized in net income.

Cash flows from derivative contracts are included in net cash provided by operating activities.

(r) Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, money market deposits and amounts placed with external fund managers with an original maturity of three months or less, and 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.

(s) Borrowing costs

Borrowings comprise interest bearing bank loans and bank overdrafts. Borrowing costs are capitalized and amortized into interest expense over the contractual term of the related loan.

(t) 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 of Signet’s 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 (as defined in Note 23 below) and the binomial valuation model for awards granted under the Share Saving Plans (as defined in Note 23 below). 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 a further description of Signet’s share-based compensation plans.

(u) 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.

 

(v) Common shares

When new shares are issued, they are recorded in Common Shares at their par value. 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 approved by the Board of Directors (the “Board”).

(x) Recently issued accounting pronouncements

Adopted during the period

Reclassification out of Accumulated Other Comprehensive Income

In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” The new guidance does not change the current requirements for reporting net income or other comprehensive income, but it does require disclosure of amounts reclassified out of accumulated other comprehensive income by component, as well as require the presentation of these amounts on the face of the statements of comprehensive income or in the notes to the consolidated financial statements. ASU 2013-02 is effective for the reporting periods beginning after December 15, 2012. Signet adopted this guidance effective for the first quarter ended May 4, 2013 and the implementation of this accounting pronouncement did not have a material impact on Signet’s consolidated financial statements.

To be adopted in future periods

Presentation of Unrecognized Tax Benefit

In July 2013, the FASB issued ASU 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. The guidance in ASU 2013-11 will become effective for the Company prospectively for fiscal years beginning after December 15, 2013, and interim periods within those years, with early adoption permitted. Retrospective application is also permitted. Signet did not early adopt this guidance and it has determined that implementation will not have a material impact on Signet’s consolidated financial statements.

(y) Reclassification

Signet has reclassified the presentation of certain prior year information to conform to the current year presentation.

Segment information
Segment information

2. Segment information

Effective with the fourth quarter of Fiscal 2014, management changed the Company’s segment reporting in order to align with a change in its organizational and management reporting structure. Signet’s sales are derived from the retailing of jewelry, watches, other products and services. Signet has identified two geographical reportable segments, being the US and UK divisions. These segments represent channels of distribution that offer similar merchandise and services and have similar marketing and distribution strategies. Both divisions are managed by executive committees, which report to Signet’s Chief Executive Officer, who reports to the Board. Each divisional executive committee is responsible for operating decisions within parameters set by the Board. The performance of each segment is regularly evaluated based on sales and operating income.

 

In the fourth quarter of Fiscal 2014, subsequent to the November 4, 2013 acquisition of a diamond polishing factory in Gaborone, Botswana, management established the Other operating segment which consists of all non-reportable segments including subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones. This segment was determined to be non-reportable and will be aggregated with corporate administrative functions for segment reporting. Prior year results have been revised to reflect this change. All inter-segment sales and transfers are eliminated.

 

     Fiscal
2014
    Fiscal
2013
    Fiscal
2012
 
(in millions)                   

Sales:

      

US

   $ 3,517.6      $ 3,273.9      $ 3,034.1   

UK

     685.6        709.5        715.1   

Other

     6.0        —         —    
  

 

 

   

 

 

   

 

 

 

Total sales

   $ 4,209.2      $ 3,983.4      $ 3,749.2   
  

 

 

   

 

 

   

 

 

 

Operating income (loss):

      

US

   $ 553.2      $ 547.8      $ 478.0   

UK

     42.4        40.0        56.1   

Other

     (25.1 )     (27.3 )     (26.7 )
  

 

 

   

 

 

   

 

 

 

Total operating income

   $ 570.5      $ 560.5      $ 507.4   
  

 

 

   

 

 

   

 

 

 

Depreciation and amortization:

      

US

   $ 88.8      $ 75.9      $ 69.0   

UK

     21.4        23.5        23.4   

Other

     —         —         —    
  

 

 

   

 

 

   

 

 

 

Total depreciation and amortization

   $ 110.2      $ 99.4      $ 92.4   
  

 

 

   

 

 

   

 

 

 

Capital additions:

      

US

   $ 134.2      $ 110.9      $ 75.6   

UK

     18.4        23.1        22.2   

Other

     0.1        0.2        —    
  

 

 

   

 

 

   

 

 

 

Total capital additions

   $ 152.7      $ 134.2      $ 97.8   
  

 

 

   

 

 

   

 

 

 
     February 1,
2014
    February 2,
2013
    January 28,
2012
 
(in millions)                   

Total assets:

      

US

   $ 3,311.0      $ 2,979.2      $ 2,747.5   

UK

     484.6        449.9        427.3   

Other

     233.6        289.9        436.6   
  

 

 

   

 

 

   

 

 

 

Total assets

   $ 4,029.2      $ 3,719.0      $ 3,611.4   
  

 

 

   

 

 

   

 

 

 

Total long-lived assets:

      

US

   $ 423.6      $ 377.5      $ 305.8   

UK

     81.1        76.8        77.0   

Other

     9.7        0.7        0.6   
  

 

 

   

 

 

   

 

 

 

Total long-lived assets

   $ 514.4      $ 455.0      $ 383.4   
  

 

 

   

 

 

   

 

 

 

Total liabilities:

      

US

   $ 1,299.3      $ 1,243.4      $ 1,166.3   

UK

     139.3        116.9        146.2   

Other

     27.5        28.8        19.8   
  

 

 

   

 

 

   

 

 

 

Total liabilities

   $ 1,466.1      $ 1,389.1      $ 1,332.3   
  

 

 

   

 

 

   

 

 

 

 

Sales by product

 

     Fiscal
2014
     Fiscal
2013
     Fiscal
2012
 
(in millions)       

Diamonds and diamond jewelry

   $ 2,552.1       $ 2,410.7       $ 2,183.3   

Gold, silver jewelry, other products and services

     1,236.9         1,116.5         1,133.5   

Watches

     420.2         456.2         432.4   
  

 

 

    

 

 

    

 

 

 

Total sales

   $ 4,209.2       $ 3,983.4       $ 3,749.2   
  

 

 

    

 

 

    

 

 

 

Sales to any individual customer were not significant to Signet’s consolidated sales.

Other Operating Income, Net
Other Operating Income, Net

3. Other operating income, net

 

     Fiscal
2014
     Fiscal
2013
     Fiscal
2012
 
(in millions)       

Interest income from in-house customer finance programs

   $ 186.4       $ 159.7       $ 125.4   

Other

     0.3         1.7         1.1   
  

 

 

    

 

 

    

 

 

 

Other operating income, net

   $ 186.7       $ 161.4       $ 126.5   
  

 

 

    

 

 

    

 

 

 
Compensation and Benefits
Compensation and Benefits

4. Compensation and benefits

Compensation and benefits were as follows:

 

     Fiscal
2014
     Fiscal
2013
     Fiscal
2012
 
(in millions)       

Wages and salaries

   $ 753.3       $ 713.4       $ 681.5   

Payroll taxes

     65.8         62.6         59.3   

Employee benefit plans expense

     10.2         12.9         11.3   

Share-based compensation expense

     14.4         15.7         17.0   
  

 

 

    

 

 

    

 

 

 

Total compensation and benefits

   $ 843.7       $ 804.6       $ 769.1   
  

 

 

    

 

 

    

 

 

 
Income taxes
Income taxes

5. Income taxes

 

     Fiscal
2014
    Fiscal
2013
     Fiscal
2012
 
(in millions)       

Income before income taxes:

       

– US

   $ 493.7      $ 494.3       $ 423.2   

– Foreign

     72.8        62.6         78.9   
  

 

 

   

 

 

    

 

 

 

Total income before income taxes

   $ 566.5      $ 556.9       $ 502.1   
  

 

 

   

 

 

    

 

 

 

Current taxation:

       

– US

   $ 211.8      $ 186.6       $ 136.9   

– Foreign

     7.1        6.1         11.5   

Deferred taxation:

       

– US

     (22.8 )     3.1         26.1   

– Foreign

     2.4        1.2         3.2   
  

 

 

   

 

 

    

 

 

 

Total income taxes

   $ 198.5      $ 197.0       $ 177.7   
  

 

 

   

 

 

    

 

 

 

 

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

 

     Fiscal
2014
    Fiscal
2013
    Fiscal
2012
 
     %     %     %  

US federal income tax rates

     35.0        35.0        35.0   

US state income taxes

     2.5        2.7        2.7   

Differences between US federal and foreign statutory income tax rates

     (0.9 )     (0.6 )     (1.0 )

Expenditures permanently disallowable for tax purposes, net of permanent tax benefits

     0.6        0.8        1.1   

Benefit of intra-group financing and services arrangements

     (2.1 )     (2.1 )     (2.0 )

Other items

     (0.1 )     (0.4 )     (0.4 )
  

 

 

   

 

 

   

 

 

 

Effective tax rate

     35.0        35.4        35.4   
  

 

 

   

 

 

   

 

 

 

Signet’s effective tax rate is largely impacted by the relative proportion of US and foreign income tax expense. In Fiscal 2014, Signet’s effective tax rate was the same as the US federal income tax rate because the US state income tax expense was substantially offset by the benefit of intra-group financing and services arrangements. 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:

 

     February 1, 2014     February 2, 2013  
     Assets     (Liabilities)     Total     Assets     (Liabilities)     Total  
(in millions)       

US property, plant and equipment

   $ —       $ (70.1 )   $ (70.1 )   $ —       $ (55.8 )   $ (55.8 )

Foreign property, plant and equipment

     7.0        —         7.0        6.7        —         6.7   

Inventory valuation

     —         (169.2 )     (169.2 )     —         (188.6 )     (188.6 )

Allowances for doubtful accounts

     39.7        —         39.7        36.6        —         36.6   

Revenue deferral

     134.3        —         134.3        122.4        —         122.4   

Derivative instruments

     6.9        —         6.9        —         —         —    

Straight-line lease payments

     27.5        —         27.5        26.8        —         26.8   

Deferred compensation

     9.9        —         9.9        7.7        —         7.7   

Retirement benefit obligations

     —         (12.0 )     (12.0 )     —         (11.2 )     (11.2 )

Share-based compensation

     10.3        —         10.3        10.7        —         10.7   

US state income tax accruals

     5.3        —         5.3        5.6        —         5.6   

Other temporary differences

     15.0        —         15.0        16.2        —         16.2   

Value of foreign capital losses

     15.8        —         15.8        16.5        —         16.5   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total gross deferred tax asset (liability)

   $ 271.7      $ (251.3 )   $ 20.4      $ 249.2      $ (255.6 )   $ (6.4 )

Valuation allowance

     (16.8 )     —         (16.8 )     (17.5 )     —         (17.5 )
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Deferred tax asset (liability)

   $ 254.9      $ (251.3 )   $ 3.6      $ 231.7      $ (255.6 )   $ (23.9 )
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Current assets

       $ 3.0          $ 1.6   

Current liabilities

         (113.1 )         (129.6 )

Non-current assets

         113.7            104.1   
      

 

 

       

 

 

 

Deferred tax asset (liability)

       $ 3.6          $ (23.9 )
      

 

 

       

 

 

 

As of February 1, 2014 Signet had foreign gross capital loss carry forwards of $74.2 million (Fiscal 2013: $71.0 million) which are only available to offset future capital gains, if any, over an indefinite period.

 

The decrease in the total valuation allowance in Fiscal 2014 was $0.7 million due to changes in foreign exchange translation and tax rates (Fiscal 2013: $3.6 million net decrease; Fiscal 2012: $1.5 million net decrease). The valuation allowance primarily relates to foreign capital loss carry forwards 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 February 1, 2014 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 and certain other foreign jurisdictions. Signet is subject to US federal and state examinations by tax authorities for tax years after November 1, 2008 and is subject to examination by the UK tax authority for tax years after January 31, 2012.

As of February 1, 2014 Signet had approximately $4.6 million (Fiscal 2013: $4.5 million; Fiscal 2012: $4.8 million) of unrecognized tax benefits in respect of uncertain tax positions, all of which would favorably affect the effective income tax rate if resolved in Signet’s favor. These unrecognized tax benefits relate to financing arrangements and intra-group charges which are subject to different and changing interpretations of tax law.

Signet recognizes accrued interest and, where appropriate, penalties related to unrecognized tax benefits within income tax expense. In Fiscal 2014, the total amount of interest recognized in income tax expense in the consolidated income statement was $0.1 million, net charge (Fiscal 2013: $0.2 million, net credit; Fiscal 2012: $0.1 million, net credit). As of February 1, 2014, Signet had accrued interest of $0.3 million (Fiscal 2013: $0.2 million; Fiscal 2012: $0.4 million).

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

 

     Fiscal
2014
    Fiscal
2013
    Fiscal
2012
 
(in millions)       

Balance at beginning of period

   $ 4.5      $ 4.8      $ 9.0   

Increases related to current year tax positions

     0.4        0.2        0.3   

Prior year tax positions:

      

Increases

     0.2        —         —    

Decreases

     —         —         (1.4 )

Cash settlements

     (0.5 )     —         (2.6 )

Lapse of statute of limitations

     —         (0.5 )     (0.5 )
  

 

 

   

 

 

   

 

 

 

Balance at end of period

   $ 4.6      $ 4.5      $ 4.8   
  

 

 

   

 

 

   

 

 

 

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 February 1, 2014, due to settlement of the uncertain tax positions with the tax authorities.

Earnings Per Share
Earnings Per Share

6. Earnings per share

 

     Fiscal
2014
     Fiscal
2013
     Fiscal
2012
 
(in millions, except per share amounts)       

Net income

   $ 368.0       $ 359.9       $ 324.4   
  

 

 

    

 

 

    

 

 

 

Basic weighted average number of shares outstanding

     80.2         82.3         86.2   

Dilutive effect of share awards

     0.5         0.5         0.8   
  

 

 

    

 

 

    

 

 

 

Diluted weighted average number of shares outstanding

     80.7         82.8         87.0   
  

 

 

    

 

 

    

 

 

 

Earnings per share – basic

   $ 4.59       $ 4.37       $ 3.76   

Earnings per share – diluted

   $ 4.56       $ 4.35       $ 3.73   

 

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 2014 by 6,961,632 (Fiscal 2013: 4,882,625; Fiscal 2012: 576,427). The calculation of fully diluted EPS for Fiscal 2014 excludes share awards to acquire 70,447 shares (Fiscal 2013: 192,374 share awards; Fiscal 2012: 375,071 share awards) on the basis that their effect on EPS was anti-dilutive.

Dividends
Dividends

7. Dividends

 

     Fiscal 2014     Fiscal 2013     Fiscal 2012  
     Cash dividend
per share
     Total
dividends
    Cash dividend
per share
     Total
dividends
    Cash dividend
per share
     Total
dividends
 
            (in millions)            (in millions)            (in millions)  

First quarter

   $ 0.15       $ 12.1      $ 0.12       $ 10.3      $ —        $ —    

Second quarter

     0.15         12.1        0.12         9.6        —          —    

Third quarter

     0.15         12.0        0.12         9.8        0.10         8.7   

Fourth quarter(1)

     0.15         12.0 (2)      0.12         9.8 (2)       0.10         8.7   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total

   $ 0.60       $ 48.2      $ 0.48       $ 39.5      $ 0.20       $ 17.4   

 

(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 February 1, 2014 and February 2, 2013, $12.0 million and $9.8 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 2014 and Fiscal 2013, respectively.

In addition, on March 26, 2014, Signet’s Board of Directors declared a quarterly dividend of $0.18 per share on its Common Shares. This dividend will be payable on May 28, 2014 to shareholders of record on May 2, 2014, with an ex-dividend date of April 30, 2014.

Accumulated other comprehensive income (loss)
Accumulated other comprehensive income (loss)

8. Accumulated other comprehensive income (loss)

The following tables present the changes in accumulated OCI by component and the reclassifications out of accumulated OCI:

 

                 Pension plan        
     Foreign
currency
translation
    Gains (losses)
on cash flow
hedges
    Actuarial
(losses)
gains
    Prior
service
credit
(cost)
    Accumulated
other
comprehensive
(loss) income
 
(in millions)                               

Balance at January 29, 2011

   $ (145.0 )   $ 5.9      $ (46.0 )   $ 14.3      $ (170.8 )

OCI before reclassifications

     (3.9     32.2        (7.3     5.5        26.5   

Amounts reclassified from accumulated OCI

     —         (16.0 )     1.8        (0.7 )     (14.9 )
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net current-period OCI

     (3.9     16.2        (5.5 )     4.8        11.6   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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 accumulated OCI

     —         (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 accumulated OCI

     —         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 )
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The amounts reclassified from accumulated OCI were as follows:

 

Reclassification activity by individual accumulated OCI
component:

  Fiscal 2014     Fiscal 2013     Fiscal 2012    

Income statement caption

  Amounts
reclassified from
accumulated OCI
    Amounts
reclassified from
accumulated OCI
    Amounts
reclassified from
accumulated OCI
   
(in millions)                      

(Gains) losses on cash flow hedges:

       

Foreign currency contracts

  $ (0.9 )   $ (0.4 )   $ (0.1 )   Cost of sales (see Note 19)

Commodity contracts

    12.0        (22.0 )     (24.5 )   Cost of sales (see Note 19)
 

 

 

   

 

 

   

 

 

   

Total before income tax

    11.1        (22.4 )     (24.6 )  
    (4.4 )     8.0        8.6      Income taxes
 

 

 

   

 

 

   

 

 

   

Net of tax

    6.7        (14.4 )     (16.0 )  
 

 

 

   

 

 

   

 

 

   

Defined benefit pension plan items:

       

Amortization of unrecognized net prior service credit

    (1.5 )     (1.6 )     (1.0 )   Selling, general and administrative expenses(1)

Amortization of unrecognized actuarial loss

    2.3        3.2        2.6      Selling, general and administrative expenses(1)
 

 

 

   

 

 

   

 

 

   

Total before income tax

    0.8        1.6        1.6     
    (0.2 )     (0.4 )     (0.5   Income taxes
 

 

 

   

 

 

   

 

 

   

Net of tax

    0.6        1.2        1.1     
 

 

 

   

 

 

   

 

 

   

Total reclassifications, net of tax

  $ 7.3      $ (13.2 )   $ (14.9 )  
 

 

 

   

 

 

   

 

 

   

 

(1) These items are included in the computation of net periodic pension benefit (cost). See Note 20 for additional information.
Cash and cash equivalents
Cash and cash equivalents

9. Cash and cash equivalents

 

     February 1,
2014
     February 2,
2013
 
(in millions)       

Cash and cash equivalents held in money markets and other accounts

   $ 225.3       $ 276.6   

Cash equivalents from third-party credit card issuers

     21.1         23.2   

Cash on hand

     1.2         1.2   
  

 

 

    

 

 

 

Total cash and cash equivalents

   $ 247.6       $ 301.0   
  

 

 

    

 

 

 
Accounts receivable, net
Accounts receivable, net

10. 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. The allowance is an estimate of the 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 analyses are required to appropriately estimate losses inherent in the portfolio.

 

     February 1,
2014
     February 2,
2013
 
(in millions)       

Accounts receivable by portfolio segment, net:

     

US customer in-house finance receivables

   $ 1,356.0       $ 1,192.9   

Other accounts receivable

     18.0         12.4   
  

 

 

    

 

 

 

Total accounts receivable, net

   $ 1,374.0       $ 1,205.3   
  

 

 

    

 

 

 

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 division of $12.8 million (Fiscal 2013: $13.0 million), with a corresponding valuation allowance of $0.3 million (Fiscal 2013: $0.6 million).

Allowance for credit losses on US customer in-house finance receivables:

 

     Fiscal 2014     Fiscal 2013     Fiscal 2012  
(in millions)       

Beginning balance:

   $ (87.7 )   $ (78.1 )   $ (67.8 )

Charge-offs

     128.2        112.8        92.8   

Recoveries

     26.0        21.8        19.3   

Provision

     (164.3 )     (144.2 )     (122.4 )
  

 

 

   

 

 

   

 

 

 

Ending balance

   $ (97.8 )   $ (87.7 )   $ (78.1 )

Ending receivable balance evaluated for impairment

     1,453.8        1,280.6        1,155.5   
  

 

 

   

 

 

   

 

 

 

US customer in-house finance receivables, net

   $ 1,356.0      $ 1,192.9      $ 1,077.4   
  

 

 

   

 

 

   

 

 

 

Net bad debt expense is defined as the provision expense less recoveries.

Credit quality indicator and age analysis of past due US customer in-house finance receivables:

 

      February 1,
2014
    February 2,
2013
    January 28,
2012
 
     Gross      Valuation
allowance
    Gross      Valuation
allowance
    Gross      Valuation
allowance
 
(in millions)       

Performing:

               

Current, aged 0 – 30 days

   $ 1,170.4       $ (36.3 )   $ 1,030.3       $ (33.8 )   $ 932.6       $ (28.9 )

Past due, aged 31 – 90 days

     229.9         (8.0 )     203.9         (7.5 )     180.2         (6.5 )

Non Performing:

               

Past due, aged more than 90 days

     53.5         (53.5 )     46.4         (46.4 )     42.7         (42.7 )
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 
   $ 1,453.8       $ (97.8 )   $ 1,280.6       $ (87.7 )   $ 1,155.5       $ (78.1 )
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

 

     February 1,
2014
    February 2,
2013
    January 28,
2012
 
     Gross     Valuation
allowance
    Gross     Valuation
allowance
    Gross     Valuation
allowance
 
(as a percentage of the ending receivable balance)                                     

Performing

     96.3 %     3.2 %     96.4 %     3.3 %     96.3 %     3.2 %

Non Performing

     3.7 %     100.0 %     3.6 %     100.0 %     3.7 %     100.0 %
     100.0 %     6.7 %     100.0 %     6.8 %     100.0 %     6.8 %
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Inventories
Inventories

11. Inventories

Signet held $312.6 million of consignment inventory at February 1, 2014 (February 2, 2013: $227.7 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 vary the inventory prices prior to sale.

Inventories

 

     February  1,
2014
     February  2,
2013
 
(in millions)              

Raw materials

   $ 41.8       $ 41.2   

Finished goods

     1,446.2         1,355.8   
  

 

 

    

 

 

 

Total inventories

   $ 1,488.0       $ 1,397.0   
  

 

 

    

 

 

 

Inventory reserves

 

     Balance at
beginning of
period
     Charged
to profit
     Utilized(1)     Balance at
end of
period
 
(in millions)       

Fiscal 2012

   $ 27.8       $ 18.4       $ (16.9 )   $ 29.3   

Fiscal 2013

     29.3         23.6         (29.5 )     23.4   

Fiscal 2014

     23.4         33.3         (40.4 )     16.3   

 

(1) Including the impact of foreign exchange translation between opening and closing balance sheet dates.
Other Assets
Other Assets

12. Other assets

 

     February 1,
2014
     February 2,
2013
 
(in millions)       

Deferred extended service plan costs

   $ 61.9       $ 56.9   

Goodwill

     26.8         24.6   

Other assets

     25.3         18.4   
  

 

 

    

 

 

 

Total other assets

   $ 114.0       $ 99.9   
  

 

 

    

 

 

 

 

Goodwill

The following table summarizes the Company’s goodwill by reporting unit:

 

     US     UK      Other      Total  
(in millions)                           

Balance at January 28, 2012

   $ —       $ —        $ —        $ —    

Acquisition(1)

     24.6        —          —          24.6   
  

 

 

   

 

 

    

 

 

    

 

 

 

Balance at February 2, 2013

     24.6        —          —          24.6  

Acquisitions(1)

     (1.4     —          3.6         2.2   
  

 

 

   

 

 

    

 

 

    

 

 

 

Balance at February 1, 2014

   $ 23.2      $ —        $ 3.6       $ 26.8   

 

(1) See Note 14 for additional discussion of the goodwill recorded by the Company during Fiscal 2014 and Fiscal 2013.

The Company’s reporting units align with the operating segments disclosed in Note 2. 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.

Property, Plant And Equipment, Net
Property, Plant And Equipment, Net

13. Property, plant and equipment, net

 

     February 1,
2014
    February 2,
2013
 
(in millions)             

Land and buildings

   $ 37.2      $ 32.5   

Leasehold improvements

     461.4        419.3   

Furniture and fixtures

     537.3        503.4   

Equipment, including software

     221.1        183.8   

Construction in progress

     18.7        15.5   
  

 

 

   

 

 

 

Total

   $ 1,275.7      $ 1,154.5   

Accumulated depreciation and amortization

     (788.1 )     (724.1 )
  

 

 

   

 

 

 

Property, plant and equipment, net

   $ 487.6      $ 430.4   
  

 

 

   

 

 

 

Depreciation and amortization expense for Fiscal 2014 was $110.2 million (Fiscal 2013: $99.4 million; Fiscal 2012: $92.4 million). The expense for Fiscal 2014 includes $0.7 million (Fiscal 2013: $2.6 million; Fiscal 2012: $1.4 million) for impairment of assets.

Acquisitions
Acquisitions

14. Acquisitions

Botswana diamond polishing factory acquisition

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. The Company is in the process of finalizing the valuation of the net assets acquired, most notably the valuation of property, plant and equipment. The total consideration paid by the Company was funded through existing cash and allocated to the net assets acquired based on the preliminary fair values as follows: property, plant and equipment acquired of $5.5 million and goodwill of $3.6 million. None of the goodwill will be deductible for income tax purposes. The goodwill balance is recorded within other assets in the consolidated balance sheet. See Note 12.

 

Acquisition-related costs incurred prior to closing the transaction were immaterial. The results of operations related to the acquired diamond polishing factory are reported within the Other operating segment of Signet’s consolidated results and included in Signet’s consolidated financial statements commencing on the date of acquisition in the Other operating segment. Pro forma results of operations have not been presented, as the impact on the Company’s consolidated financial results was not material.

Ultra acquisition

On October 29, 2012, Signet acquired the outstanding shares of Ultra Stores, Inc. (the “Ultra Acquisition”). The Company paid $56.7 million, net of acquired cash of $1.5 million, for the Ultra Acquisition, including a $1.4 million working capital adjustment at closing. The total consideration paid was funded through existing cash.

On May 15, 2013, the post-closing procedures were finalized and a reduction to the initial purchase price was agreed to. As a result, total consideration paid for the Ultra Acquisition was reduced to $55.3 million. The refund of $1.4 million from the initial consideration paid was received during the second quarter of Fiscal 2014.

Signet incurred approximately $3.0 million of acquisition-related expenses, which were expenses as incurred during Fiscal 2013 and recorded as selling, general and administrative expenses in the consolidated income statement. The results of operations related to the Ultra Acquisition are reported as a component of the results of the US division and included in Signet’s consolidated financial statements commencing on the date of acquisition. Pro forma results of operations have not been presented, as the impact on the Company’s consolidated financial results were not material.

The Ultra Acquisition was accounted for as a business combination during the fourth quarter of Fiscal 2013. During the first quarter of Fiscal 2014, 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 2013. Accordingly, the total consideration paid has been allocated to the net assets acquired based on the final fair values at October 29, 2012 as follows:

 

     Initial
Allocation
    Final
Allocation
    Change  
(in millions)                   

Recognized amounts of assets acquired and liabilities assumed:

      

Inventories

   $ 43.3      $ 43.3      $ —    

Other current assets, excluding cash acquired

     3.3        3.3        —    

Property and equipment

     12.1        12.1        —    

Other assets

     0.3        0.3        —    

Current liabilities

     (19.5 )     (19.5 )     —    

Other liabilities

     (7.4 )     (7.4 )     —    
  

 

 

   

 

 

   

 

 

 

Fair value of net assets acquired

   $ 32.1      $ 32.1      $ —    

Goodwill(1)

     24.6        23.2        (1.4 )
  

 

 

   

 

 

   

 

 

 

Total consideration

   $ 56.7      $ 55.3      $ (1.4 )
  

 

 

   

 

 

   

 

 

 

 

(1) None of the goodwill will be deductible for income tax purposes. The goodwill balance is recorded within other assets in the consolidated balance sheet. See Note 12.

During Fiscal 2014, the majority of the acquired stores were converted to the Kay brand, with the remaining stores being reflected under regional brands.

Accrued expenses and other current liabilities
Accrued expenses and other current liabilities

15. Accrued expenses and other current liabilities

 

     February 1,
2014
     February 2,
2013
 
(in millions)       

Accrued compensation

   $ 81.3       $ 85.9   

Other liabilities

     50.1         48.7   

Other taxes

     31.7         31.9   

Payroll taxes

     8.0         7.4   

Accrued expenses

     157.4         152.5   
  

 

 

    

 

 

 

Total accrued expenses and other current liabilities

   $ 328.5       $ 326.4   
  

 

 

    

 

 

 

Sales returns reserve included in accrued expenses above:

 

     Balance at
beginning of
period
     Net
adjustment(1)
    Balance at
end of
period
 
(in millions)       

Fiscal 2012

   $ 7.7       $ (0.4 )   $ 7.3   

Fiscal 2013

     7.3         0.3        7.6   

Fiscal 2014

     7.6         0.8        8.4   

 

(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 US division provides a product lifetime diamond and color gemstone 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, Signet 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. Warranty reserve for diamond and gemstone guarantee were as follows:

 

     Balance at
beginning of
period
     Warranty
expense
     Utilized     Balance at
end of
period
 
(in millions)       

Fiscal 2012

   $ 13.0       $ 7.9       $ (5.8 )   $ 15.1   

Fiscal 2013

     15.1         8.6         (5.2 )     18.5   

Fiscal 2014

     18.5         7.4         (6.8 )     19.1   

 

Disclosed as:

   February 1,
2014
     February 2,
2013
 
(in millions)              

Current liabilities(1)

   $ 6.7       $ 6.9   

Non-current liabilities (see Note 17)

     12.4         11.6   
  

 

 

    

 

 

 

Total warranty reserve

   $ 19.1       $ 18.5   
  

 

 

    

 

 

 

 

(1) Included within accrued expenses above.
Deferred Revenue
Deferred Revenue

16. Deferred revenue

Deferred revenue is comprised primarily of extended service plans (“ESP”) and voucher promotions and other as follows:

 

     February 1,
2014
     February 2,
2013
 
(in millions)       

ESP deferred revenue

   $ 601.2       $ 549.7   

Voucher promotions and other

     15.5         15.9   
  

 

 

    

 

 

 

Total deferred revenue

   $ 616.7       $ 565.6   
  

 

 

    

 

 

 

Disclosed as:

     

Current liabilities

   $ 173.0       $ 159.7   

Non-current liabilities

     443.7         405.9   
  

 

 

    

 

 

 

Total deferred revenue

   $ 616.7       $ 565.6   
  

 

 

    

 

 

 

ESP deferred revenue

 

     Balance at
beginning of
period
     Plans
sold
     Revenue
recognized
    Balance at
end of
period
 
(in millions)       

Fiscal 2012

   $ 481.1       $ 187.0       $ (156.4 )   $ 511.7   

Fiscal 2013

     511.7         205.1         (167.1 )     549.7   

Fiscal 2014

     549.7         223.3         (171.8 )     601.2   
Other Liabilities-Non-Current
Other Liabilities-Non-Current

17. Other liabilities—non-current

 

     February 1,
2014
     February 2,
2013
 
(in millions)       

Straight-line rent

   $ 67.1       $ 65.6   

Deferred compensation

     25.0         18.5   

Warranty reserve

     12.4         11.6   

Lease loss reserve

     5.8         8.1   

Other liabilities

     11.4         7.5   
  

 

 

    

 

 

 

Total other liabilities

   $ 121.7       $ 111.3   
  

 

 

    

 

 

 

A lease loss reserve is recorded for the net present value of the difference between the contractual rent obligations and the rate at which income is received or expected to be received from subleasing the properties.

 

     February 1,
2014
    February 2,
2013
 
(in millions)       

At beginning of period:

   $ 8.1      $ 9.6   

Adjustments, net

     (1.6     (1.1

Utilization(1)

     (0.7 )     (0.4 )
  

 

 

   

 

 

 

At end of period

   $ 5.8      $ 8.1   
  

 

 

   

 

 

 

 

(1) Including 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.

Loans, Overdrafts and Long-Term Debt
Loans, Overdrafts and Long-Term Debt

18. Loans, overdrafts and long-term debt

Loans and overdrafts

 

(in millions)    February 1,
2014
     February  2,
2013
 

Current liabilities – loans and overdrafts

     

Revolving credit facility

   $ —        $ —    

Bank overdrafts

     19.3         —    
  

 

 

    

 

 

 

Total loans and overdrafts

   $ 19.3       $ —    
  

 

 

    

 

 

 

Revolving credit facility

On May 24, 2011, Signet Jewelers Limited and certain of its subsidiaries as “Borrowers” entered into a $400 million senior unsecured multi-currency five year revolving credit agreement (the “Credit Agreement”) with various financial institutions as the lenders (the “Lenders”), JPMorgan Chase Bank, N.A., as Administrative Agent, Barclays Capital, as Syndication Agent, and JPMorgan Securities LLC and Barclays Capital as the joint lead arrangers. Borrowings under the Credit Agreement may be used for working capital and general corporate purposes. The Company has guaranteed the obligations of the Borrowers under the Credit Agreement and is also directly bound by certain of the covenants contained in the Credit Agreement.

Under the Credit Agreement, the Borrowers are able to borrow from time to time in an aggregate amount up to $400 million, including issuing letters of credit in an aggregate amount at any time outstanding not to exceed $100 million. The Credit Agreement contains an expansion option that, with the consent of the Lenders or the addition of new lenders, and subject to certain conditions, availability under the Credit Agreement may be increased by an additional $200 million at the request of the Borrowers. The Credit Agreement has a five year term and matures in May 2016, at which time all amounts outstanding under the Credit Agreement will be due and payable.

Borrowings under the Credit Agreement bear interest, at the Borrowers’ option, at either a base rate (as defined in the Credit Agreement), or an adjusted LIBOR (a “Eurocurrency Borrowing”), in each case plus an applicable margin rate based on the Company’s “Fixed Charge Coverage Ratio” (as defined in the Credit Agreement). Interest is payable on the last day of each March, June, September and December, or at the end of each interest period for a Eurocurrency Borrowing, but not less often than every three months. Commitment fee rates range from 0.20% to 0.35% based on the Company’s Fixed Charge Coverage Ratio and are payable quarterly in arrears and on the date of termination or expiration of commitments.

The Credit Agreement limits the ability of the Company and certain of its subsidiaries to, among other things and subject to certain baskets and exceptions contained therein, incur debt, create liens on assets, make investments outside of the ordinary course of business, sell assets outside of the ordinary course of business, enter into merger transactions and enter into unrelated businesses. The Credit Agreement permits the making of dividend payments and stock repurchases so long as the Company (i) is not in default under the Credit Agreement, or (ii) if in default at the time of making such dividend payment or stock repurchase, has no loans outstanding under the Credit Agreement or more than $10 million in letters of credit issued under the Credit Agreement. The Credit Agreement also contains various customary representations and warranties, financial reporting requirements and other affirmative and negative covenants. The Credit Agreement requires that the Company maintain at all times a “Leverage Ratio” (as defined in the Credit Agreement) to be no greater than 2.50 to 1.00 and a “Fixed Charge Coverage Ratio” (as defined in the Credit Agreement) to be no less than 1.40 to 1.00, both determined as of the end of each fiscal quarter of the Company for the trailing four quarters. As of February 1, 2014 and February 2, 2013, Signet was in compliance with all debt covenants.

The commitments may be terminated and amounts outstanding under the Credit Agreement may be accelerated upon the occurrence of certain events of default as set forth in the Credit Agreement. These include failure to make principal or interest payments when due, certain insolvency or bankruptcy events affecting the Company or certain of its subsidiaries and breaches of covenants and representations or warranties.

No borrowings were drawn on the facility as of February 1, 2014 and February 2, 2013. Stand-by letters of credit of $10.1 million were drawn on the facility at February 1, 2014 (February 2, 2013: $9.5 million), with no significant intra-period fluctuations.

As of February 1, 2014, there were $19.3 million in overdrafts, which represents issued and outstanding checks where there are no bank balances with the right to offset. There were no overdrafts as of February 2, 2013.

Capitalized fees

Capitalized amendment fees for the Credit Agreement were $2.1 million, with $1.2 million and $0.8 million of accumulated amortization as of February 1, 2014 and February 2, 2013, respectively. In Fiscal 2014, $0.4 million was charged to the income statement (Fiscal 2013: $0.4 million; Fiscal 2012: $1.9 million). In Fiscal 2012, $0.2 million of the capitalized balance was amortized as it related to the 2008 Facility. Following the effectiveness of the new Credit Agreement, the remaining $1.3 million of capitalized fees for the 2008 Facility were written off.

Financial instruments and fair value
Financial instruments and fair value

19. Financial instruments and fair value

Signet’s principal financial instruments are comprised of cash, cash deposits/investments and overdrafts, accounts receivable and payable, derivatives and a revolving credit facility. Signet does not enter into derivative transactions for trading purposes. Derivative transactions are used by Signet for risk management purposes to address risks inherent in Signet’s business operations and sources of finance. The main risks arising from Signet’s operations are market risk including foreign currency risk and 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.

Market risk

Signet generates revenues and incurs expenses in US dollars and pounds sterling. As a portion of Signet’s UK division purchases 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 pounds sterling cash reflecting the cash generative characteristics of the UK division. Signet’s objective is to minimize net foreign exchange exposure to the income statement on pound sterling denominated items through managing this level of cash, pound sterling denominated intercompany balances and US dollar to pound sterling swaps. In order to manage the foreign exchange exposure and minimize the level of pound sterling cash held by Signet, the pound sterling denominated subsidiaries pay dividends regularly to their immediate holding companies and excess pounds sterling 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 either purchase options or net zero-cost collar arrangements to purchase, precious metals within treasury guidelines approved by the Board. In particular, Signet undertakes some hedging of its requirement for gold through the use of options, 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 source of funding supplementing Signet’s resources in meeting liquidity requirements.

The main external source of funding is a $400 million senior unsecured multi-currency five year revolving credit facility, under which there were no borrowings as of February 1, 2014 or February 2, 2013.

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 as of February 1, 2014 or February 2, 2013.

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. 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.

Derivatives

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 in order 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 February 1, 2014 was $42.3 million (February 2, 2013: $50.8 million). These contracts have been designated as cash flow hedges and will be settled over the next 12 months (February 2, 2013: 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 February 1, 2014 was $22.1 million (February 2, 2013: $36.1 million).

Commodity forward purchase contracts and net zero-cost collar arrangements—These contracts are entered into in order 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 February 1, 2014 was $63.0 million (February 2, 2013: $187.6 million). These contracts have been designated as cash flow hedges and will be settled over the next 12 months (February 2, 2013: 11 months).

The bank counterparties to the derivative contracts expose Signet to credit-related losses in the event of their nonperformance. However, to mitigate that risk, Signet only contracts with counterparties that meet certain minimum requirements under its counterparty risk assessment process. As of February 1, 2014, 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:

 

     Derivative assets  
          Fair value  
     Balance sheet location    February 1,
2014
     February 2,
2013
 
(in millions)                   

Derivatives designated as hedging instruments:

        

Foreign currency contracts

   Other current assets    $ —        $ 1.0   

Foreign currency contracts

   Other assets      —          —    

Commodity contracts

   Other current assets      0.8         2.8   

Commodity contracts

   Other assets      —          —    
     

 

 

    

 

 

 
        0.8         3.8   
     

 

 

    

 

 

 

Derivatives not designated as hedging instruments:

        

Foreign currency contracts

   Other current assets      0.2         —    
     

 

 

    

 

 

 

Total derivative assets

      $ 1.0       $ 3.8   
     

 

 

    

 

 

 

 

     Derivative liabilities  
          Fair value  
     Balance sheet location    February 1,
2014
    February 2,
2013
 
(in millions)                  

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 )     (4.6 )

Commodity contracts

   Other liabilities      —         —    
     

 

 

   

 

 

 
        (2.9 )     (4.6 )
     

 

 

   

 

 

 

Derivatives not designated as hedging instruments:

       

Foreign currency contracts

   Other current liabilities      —         —    
     

 

 

   

 

 

 

Total derivative liabilities

      $ (2.9 )   $ (4.6 )
     

 

 

   

 

 

 

Derivatives designated as cash flow hedges

The following table summarizes the pre-tax gains (losses) recorded in accumulated OCI for derivatives designated in cash flow hedging relationships:

 

     February 1,
2014
    February 2,
2013
 
(in millions)             

Foreign currency contracts

   $ (2.3 )   $ 1.3   

Commodity contracts

     (18.8 )(1)      (0.5 )
  

 

 

   

 

 

 

Total

   $ (21.1 )   $ 0.8   
  

 

 

   

 

 

 

 

(1) Includes losses of $18.2 million 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

 

     Income statement caption      Fiscal
2014
    Fiscal
2013
 
(in millions)                    

Gains (losses) recorded in accumulated OCI, beginning of year

      $ 1.3      $ 1.2   

Current period (losses) gains recognized in OCI

        (2.7 )     0.5   

(Gains) losses reclassified from accumulated OCI to net income

     Cost of sales         (0.9 )     (0.4 )
     

 

 

   

 

 

 

(Losses) gains recorded in accumulated OCI, end of year

      $ (2.3 )   $ 1.3   
     

 

 

   

 

 

 

Commodity contracts

 

     Income statement caption      Fiscal
2014
    Fiscal
2013
 
(in millions)                    

(Losses) gains recorded in accumulated OCI, beginning of year

      $ (0.5 )   $ 32.4   

Current period (losses) gains recognized in OCI

        (30.3 )(1)      (10.9 )

Losses (gains) reclassified from accumulated OCI to net income

     Cost of sales         12.0        (22.0
     

 

 

   

 

 

 

(Losses) gains recorded in accumulated OCI, end of year

      $ (18.8 )   $ (0.5 )
     

 

 

   

 

 

 

 

(1) Includes losses of $27.8 million related to the change in fair value of commodity contracts the Company terminated prior to contract maturity in Fiscal 2014.

There was no material ineffectiveness related to the Company’s derivative instruments designated in cash flow hedging relationships for the years ended February 1, 2014 and February 2, 2013. Based on current valuations, the Company expects approximately $19.5 million of net pre-tax derivative losses to be reclassified out of accumulated OCI 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
 
            Fiscal
2014
    Fiscal
2013
 
(in millions)       

Derivatives not designated as hedging instruments:

       

Foreign currency contracts

     Other operating income, net       $ (5.5 )   $ —    
     

 

 

   

 

 

 

Total

      $ (5.5 )   $ —    
     

 

 

   

 

 

 

 

Fair value

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.

 

     February 1, 2014     February 2, 2013  
     Carrying
amount
    Significant other
observable
inputs
(Level 2)
    Carrying
amount
    Significant other
observable
inputs
(Level 2)
 
(in millions)                         

Assets:

        

Foreign currency contracts

   $ 0.2      $ 0.2      $ 1.0      $ 1.0   

Commodity contracts

     0.8        0.8        2.8        2.8   

Liabilities:

        

Foreign currency contracts

     (2.1 )     (2.1 )     —          —     

Commodity contracts

     (0.8 )     (0.8 )     (4.6 )     (4.6 )

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, current foreign currency forward rates or current commodity forward rates. These are held as assets and liabilities within other receivables and other payables, and all contracts have a maturity of less than twelve months. 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.

Pension plans
Pension plans

20. 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. February 1, 2014 and February 2, 2013 measurement dates were used 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 February 1, 2014 and February 2, 2013:

 

     Fiscal
2014
    Fiscal
2013
 
(in millions)             

Change in UK Plan assets:

    

Fair value at beginning of year

   $ 261.1      $ 236.0   

Actual return on UK Plan assets

     13.1        22.1   

Employer contributions

     4.9        13.7   

Members’ contributions

     0.7        0.5   

Benefits paid

     (9.3 )     (10.9 )

Foreign currency changes

     12.1        (0.3 )
  

 

 

   

 

 

 

Fair value at end of year

   $ 282.6      $ 261.1   
  

 

 

   

 

 

 

 

     Fiscal
2014
    Fiscal
2013
 
(in millions)             

Change in benefit obligation:

    

Benefit obligation at beginning of year

   $ 212.6      $ 204.5   

Service cost

     2.4        3.6   

Past service cost

     0.9        1.1   

Interest cost

     9.3        9.5   

Members’ contributions

     0.7        0.5   

Actuarial loss (gain)

     (0.1 )     4.3   

Benefits paid

     (9.3 )     (10.9 )

Foreign currency changes

     9.8         
  

 

 

   

 

 

 

Benefit obligation at end of year

   $ 226.3      $ 212.6   
  

 

 

   

 

 

 

Funded status at end of year: UK Plan assets less benefit obligation

   $ 56.3      $ 48.5   
  

 

 

   

 

 

 

 

     February 1,
2014
     February 2,
2013
 
(in millions)              

Amounts recognized in the balance sheet consist of:

     

Non-current assets

   $ 56.3       $ 48.5   

Non-current liabilities

     —          —    
  

 

 

    

 

 

 

Net asset recognized

   $ 56.3       $ 48.5   
  

 

 

    

 

 

 

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

 

     February 1,
2014
    February 2,
2013
    January 28,
2012
 
(in millions)                   

Net actuarial loss

   $ (42.5 )   $ (44.4 )   $ (51.5 )

Net prior service credit

     15.3        17.1        19.1   

The estimated actuarial loss and prior service credit for the UK Plan that will be amortized from accumulated OCI into net periodic pension cost over the next fiscal year are $2.0 million and $(1.7) million, respectively.

The accumulated benefit obligation for the UK Plan was $210.3 million and $197.5 million at February 1, 2014 and February 2, 2013, respectively.

 

The components of net periodic pension cost and other amounts recognized in OCI for the UK Plan are as follows:

 

     Fiscal
2014
    Fiscal
2013
    Fiscal
2012
 
(in millions)                   

Components of net periodic pension cost:

      

Service cost

   $ (2.4   $ (3.6   $ (4.8

Interest cost

     (9.3     (9.5     (10.7

Expected return on UK Plan assets

     13.0        11.5        13.8   

Amortization of unrecognized net prior service credit

     1.5        1.6        1.0   

Amortization of unrecognized actuarial loss

     (2.3     (3.2     (2.6
  

 

 

   

 

 

   

 

 

 

Net periodic pension benefit (cost)

   $ 0.5      $ (3.2   $ (3.3

Other changes in assets and benefit obligations recognized in OCI

     0.1        6.7        (1.7
  

 

 

   

 

 

   

 

 

 

Total recognized in net periodic pension benefit (cost) and OCI

   $ 0.6      $ 3.5      $ (5.0
  

 

 

   

 

 

   

 

 

 

 

     February 1,
2014
    February 2,
2013
 

Assumptions used to determine benefit obligations (at the end of the year):

    

Discount rate

     4.40     4.50

Salary increases

     3.00     3.20

Assumptions used to determine net periodic pension costs (at the start of the year):

    

Discount rate

     4.50     4.70

Expected return on UK Plan assets

     5.00     4.75

Salary increases

     3.20     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 February 1, 2014 was bonds 45%, diversified growth funds 35%, equities 15% 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 February 1, 2014 and February 2, 2013 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

 

In Fiscal 2014, based upon further review of the underlying securities of the investments, management corrected the presentation for certain investments as of February 2, 2013 from Level 1 to Level 2 in the amount of $188.3 million. The value and classification of these assets was as follows:

 

    Fair value measurements at
February 1, 2014
    Fair value measurements at
February 2, 2013
 
    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)
 
(in millions)      

Asset category:

           

Diversified equity securities

  $ 41.0      $ 19.1      $ 21.9      $ —       $ 73.2      $ 34.9      $ 38.3      $ —    

Diversified growth funds

    100.5        50.8        49.7        —         51.2        26.3        24.9        —    

Fixed income – government bonds

    64.2        —         64.2        —         63.4        —         63.4        —    

Fixed income – corporate bonds

    64.6        —         64.6        —         61.7        —         61.7        —    

Property

    11.6        —         —         11.6        10.4        —         —         10.4   

Cash

    0.7        0.7        —         —         1.2        1.2        —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 282.6      $ 70.6      $ 200.4      $ 11.6      $ 261.1      $ 62.4      $ 188.3      $ 10.4   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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 2014 and 2013:

 

(in millions)       

Balance at January 28, 2012

   $ 10.3   

Actual return on assets

     0.1   
  

 

 

 

Balance at February 2, 2013

   $ 10.4   

Actual return on assets

     1.2   
  

 

 

 

Balance at February 1, 2014

   $ 11.6   
  

 

 

 

The UK Plan does not hold any investment in Signet shares or in property occupied by or other assets used by Signet.

 

Signet contributed $4.9 million to the UK Plan in Fiscal 2014 and expects to contribute a minimum of $4.2 million to the UK Plan in Fiscal 2015. 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 2015

   $ 9.3   

Fiscal 2016

     10.3   

Fiscal 2017

     10.7   

Fiscal 2018

     10.3   

Fiscal 2019

     11.9   

Fiscal 2020 to Fiscal 2024

     62.2   

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 2014 were $1.0 million (Fiscal 2013: $0.7 million; Fiscal 2012: $0.6 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. Effective April 1, 2011, Signet increased the matching element from 25% to 50% of up to 6% of employee elective salary deferrals. Signet’s contributions to this plan in Fiscal 2014 were $7.1 million (Fiscal 2013: $6.5 million; Fiscal 2012: $5.4 million). The US 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 2014 was $2.4 million (Fiscal 2013: $2.1 million; Fiscal 2012: $2.2 million).

The fair value of the assets in the two unfunded, non-qualified deferred compensation plans at February 1, 2014 and February 2, 2013 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 at
February 1, 2014
     Fair value measurements at
February 2, 2013
 
     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)
 
(in millions)                                          

Assets:

                 

Corporate-owned life insurance plans

   $ 8.2       $ —        $ 8.2       $ 8.9       $ —        $ 8.9   

Money market funds

     16.3         16.3         —          8.6         8.6         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total assets

   $ 24.5       $ 16.3       $ 8.2       $ 17.5       $ 8.6       $ 8.9   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Common shares, treasury shares and reserves
Common shares, treasury shares and reserves

21. Common shares, treasury shares and reserves

Common Shares

The par value of each Common Share is 18 cents. The consideration received for Common Shares issued during the year related to options was $9.3 million (Fiscal 2013: $21.6 million; Fiscal 2012: $10.6 million).

Treasury shares

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 Employee Stock Ownership Trust (“ESOT”) to satisfy options under Signet’s share option plans.

The total number of shares held in treasury by the Company at February 1, 2014 was 6,954,596. In Fiscal 2014, the Company repurchased 1,557,673 shares under authorized repurchase programs, while reissuing 437,913 shares, net of taxes and forfeitures, to satisfy awards outstanding under existing share based compensation plans. In Fiscal 2013, the Company repurchased 6,425,296 shares under authorized repurchase programs, while reissuing 865,598 shares, net of taxes and forfeitures, to satisfy awards outstanding under existing share based compensation plans. In Fiscal 2012, the Company repurchased 256,241 shares under authorized repurchase programs and 18,897 shares were forfeited under the Omnibus Incentive Plan.

Share repurchase

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 in 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 being held as treasury shares and may be used by Signet for general corporate purposes. Share repurchase activity is as follows:

 

          Fiscal 2014     Fiscal 2013     Fiscal 2012  
    Amount
authorized
    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        808,428      $ 54.6      $ 67.54        na        na        na        na        na        na   

2011 Program(2)

    350.0        749,245        50.1        66.92        6,425,296      $ 287.2      $ 44.70        256,241      $ 12.7      $ 49.57   
   

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

   

Total

      1,557,673      $ 104.7      $ 67.24        6,425,296      $ 287.2      $ 44.70        256,241      $ 12.7      $ 49.57   
   

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

   

 

(1) On June 14, 2013, the Board 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 $295.4 million remaining as of February 1, 2014.
(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.
na Not applicable.

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 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 cancelled.

Commitments and Contingencies
Commitments and Contingencies

22. Commitments and contingencies

Operating leases

Signet occupies certain properties and holds machinery and vehicles under operating leases; it does not have any capital leases.

Rental expense for operating leases is as follows:

 

     Fiscal
2014
    Fiscal
2013
    Fiscal
2012
 
(in millions)       

Minimum rentals

   $ 323.7      $ 316.0      $ 311.7   

Contingent rent

     11.1        7.8        9.8   

Sublease income

     (0.9 )     (2.9 )     (5.1 )
  

 

 

   

 

 

   

 

 

 

Total

   $ 333.9      $ 320.9      $ 316.4   
  

 

 

   

 

 

   

 

 

 

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 2015

   $ 311.1   

Fiscal 2016

     275.4   

Fiscal 2017

     245.8   

Fiscal 2018

     212.6   

Fiscal 2019

     181.8   

Thereafter

     937.7   
  

 

 

 

Total

   $ 2,164.4   
  

 

 

 

Signet has entered into certain 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 February 1, 2014 (and remained unexpired and occupied by assignees at that date) and approximately 19 additional properties were sub-let 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-let, 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 February 1, 2014 Signet has committed to spend $42.3 million (February 2, 2013: $33.6 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. (“Sterling”), a subsidiary of Signet, in the U.S. 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. Discovery has been completed. The Claimants filed a motion for class certification and Sterling opposed the motion. A hearing on the class certification motion was held in late February 2014. The motion is now pending before the Arbitrator.

Also as previously reported, on September 23, 2008, the U.S. Equal Employment Opportunity Commission (“EEOC”) filed a lawsuit against Sterling in the U.S. District Court for the Western District of New York. The EEOC’s lawsuit alleges that Sterling 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, Sterling 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 Sterling’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 Sterling 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 10, 2014 entered an order dismissing the action with prejudice. The EEOC has until May 12, 2014 to appeal the District Court Judge’s dismissal of the action to United States Court of Appeals for the Second Circuit.

Sterling denies the allegations of both parties and has been defending these cases vigorously. At this point, no outcome or amount of loss 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 believe are not significant to Signet’s consolidated financial position, results of operations or cash flows.

Share-based compensation
Share-based compensation

23. 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:

 

     Fiscal
2014
    Fiscal
2013
    Fiscal
2012
 
(in millions)                   

Share-based compensation expense

   $ 14.4      $ 15.7      $ 17.0   
  

 

 

   

 

 

   

 

 

 

Income tax benefit

   $ (5.2 )   $ (5.4 )   $ (5.7 )
  

 

 

   

 

 

   

 

 

 

The Fiscal 2014, Fiscal 2013 and Fiscal 2012 expense includes $0.4 million, $1.9 million and $4.4 million, respectively, of share-based compensation incurred in connection with the Chief Executive Officer’s (“CEO”) employment agreement dated September 29, 2010, for amounts foregone from his former employment. Under this agreement, 289,554 shares valued at $12.5 million were granted based upon the mid-market closing price of Signet’s stock on January 18, 2011. Of the shares granted, 116,392 shares vested on January 19, 2011, 92,083 shares vested in Fiscal 2013, 61,127 shares vested in Fiscal 2014 and 19,952 shares are expected to vest in Fiscal 2015, based on the vesting schedule of his foregone awards.

 

Unrecognized compensation cost related to awards granted under share-based compensation plans is as follows:

 

     Unrecognized Compensation Cost  
     Fiscal 2014      Fiscal 2013      Fiscal 2012  
(in millions)                     

Omnibus Plan

   $ 14.4       $ 14.6       $ 16.3   

Share Saving Plans

     2.9         2.9         3.3   

CEO Shares

     —          0.4         2.3   
  

 

 

    

 

 

    

 

 

 

Total

   $ 17.3       $ 17.9       $ 21.9   

Weighted average period of amortization

     1.8 years         1.7 years         1.6 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 2014, Fiscal 2013 and Fiscal 2012 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 2012 and 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, 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 2014     Fiscal 2013     Fiscal 2012  

Share price(1)

   $ 67.39      $ 47.15      $ 44.33   

Risk free interest rate(1)

     0.3     0.4     1.4 %

Expected term(1)

     2.8 years        2.9 years        2.9 years   

Expected volatility(1)

     41.7 %     44.2 %     45.1 %

Dividend yield(1)

     1.1 %     1.2 %     0.7

Fair value(1)

   $ 66.10      $ 46.12      $ 43.52   

 

(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 2014 activity for awards granted under the Omnibus Plan is as follows:

 

     Omnibus  Plans(1)  
     No. of
shares
    Weighted
average
grant date
fair value
     Weighted
average
remaining
contractual
life
     Intrinsic
value(2)
 
     millions                   millions  

Outstanding at February 2, 2013

     1.2      $ 40.86         1.1 years       $ 73.1   

Fiscal 2014 activity:

          

Granted

     0.3      $ 66.10         

Vested

     (0.4   $ 33.62         

Lapsed

     (0.1   $ 46.58         
  

 

 

   

 

 

    

 

 

    

 

 

 

Outstanding at February 1, 2014

     1.0      $ 51.44         1.0 years       $ 80.1   
  

 

 

   

 

 

    

 

 

    

 

 

 

 

(1) Includes shares issued to the CEO, whose contract includes share based compensation for amounts foregone from his prior employment.
(2) 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:

 

     Fiscal
2014
     Fiscal
2013
     Fiscal
2012
 
(in millions)                     

Total intrinsic value of awards vested

   $ 25.3       $ 28.5       $ 0.5   
  

 

 

    

 

 

    

 

 

 

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 2014     Fiscal 2013     Fiscal 2012  

Share price(1)

   $ 72.65      $ 49.89      $ 40.09   

Exercise price(1)

   $ 59.75      $ 41.17      $ 28.32   

Risk free interest rate(1)

     0.7     0.4     0.7 %

Expected term(1)

     2.7 years        2.7 years        3.0 years   

Expected volatility(1)

     40.2 %     41.0 %     43.0 %

Dividend yield(1)

     1.1 %     1.4 %     1.0

Fair value(1)

   $ 22.89      $ 15.40      $ 11.55   

 

(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 2014 activity for awards granted under the Share Saving Plans is as follows:

 

     Share Saving Plans  
    

No. of
shares

    Weighted
average
exercise
price
     Weighted
average
remaining
contractual
life
     Intrinsic
value(1)
 
     millions                   millions  

Outstanding at February 2, 2013

     0.3      $ 32.48         1.9 years       $ 9.8   

Fiscal 2014 activity:

          

Granted

     0.1      $ 59.75         

Exercised

     (0.1   $ 27.32         

Lapsed

     —       $ —          
  

 

 

   

 

 

    

 

 

    

 

 

 

Outstanding at February 1, 2014

     0.3      $ 44.06         1.7 years       $ 9.4   
  

 

 

   

 

 

    

 

 

    

 

 

 

Exercisable at February 2, 2013

     —       $ —          —        $ —    

Exercisable at February 1, 2014

     —       $ —          —        $ —    
  

 

 

   

 

 

    

 

 

    

 

 

 

 

(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:

 

     Fiscal
2014
     Fiscal
2013
     Fiscal
2012
 
(in millions)                     

Weighted average grant date fair value per share of awards granted

   $ 22.89       $ 15.40       $ 11.55   
  

 

 

    

 

 

    

 

 

 

Total intrinsic value of options exercised

   $ 4.9       $ 3.3       $ 1.1   
  

 

 

    

 

 

    

 

 

 

Cash received from share options exercised

   $ 2.9       $ 2.7       $ 3.2   
  

 

 

    

 

 

    

 

 

 

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 10 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 as of February 1, 2014.

The Fiscal 2014 activity for awards granted under the Executive Plans is as follows:

 

     Executive Plans  
    

No. of
shares

    Weighted
average
exercise
price
     Weighted
average
remaining
contractual
life
     Intrinsic
value(1)
 
     millions                   millions  

Outstanding at February 2, 2013

     0.3      $ 39.07         3.4 years       $ 6.5   

Fiscal 2014 activity:

          

Granted

     —       $ —          

Exercised

     (0.2   $ 39.28         

Lapsed

     —       $ —          
  

 

 

   

 

 

    

 

 

    

 

 

 

Outstanding at February 1, 2014

     0.1      $ 39.11         3.5 years       $ 4.1   
  

 

 

   

 

 

    

 

 

    

 

 

 

Exercisable at February 2, 2013

     0.3      $ 39.07          $ 6.5   

Exercisable at February 1, 2014

     0.1      $ 39.11          $ 4.1   
  

 

 

   

 

 

    

 

 

    

 

 

 

 

(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:

 

     Fiscal
2014
     Fiscal
2013
     Fiscal
2012
 
(in millions)                     

Total intrinsic value of options exercised

   $ 4.8       $ 9.0       $ 5.2   
  

 

 

    

 

 

    

 

 

 

Cash received from share options exercised

   $ 6.3       $ 18.9       $ 7.4   
  

 

 

    

 

 

    

 

 

 
Related Party Transactions
Related Party Transactions

24. Related party transactions

There are no material related party transactions.

Subsequent Event
Subsequent Event

25. Subsequent Event

On February 19, 2014, Signet entered into a definitive agreement with Zale Corporation (“Zale”) to acquire all of Zale’s issued and outstanding common stock for $21.00 per share in cash, or approximately $1.4 billion including net debt. The proposed acquisition reflects our strategy to diversify our businesses and extend our international footprint. The acquisition is expected to be financed through the securitization of a significant portion of Signet’s US accounts receivable portfolio, bank debt and other debt financing. Signet has secured a commitment for bridge financing and a new underwritten term loan facility in connection with the transaction. Completion of the transaction is subject to customary closing conditions, including approval by Zale stockholders and regulatory approval.

Condensed Consolidating Financial Information
Condensed Consolidating Financial Information

 

26. 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 will guarantee the obligations under certain debt securities that may be 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 consdensed consolidating finanical 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 intercompany activity and balances.

 

Supplemental Condensed Consolidated Income Statement

For the 52 week period ended February 1, 2014

 

     Signet
Jewelers
Limited
    Signet UK
Finance plc
     Guarantor
Subsidiaries
    Non-
Guarantor
Subsidiaries
    Eliminations     Consolidated  

(in millions)

             

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   

Intercompany 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   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

Supplemental Condensed Consolidated Income Statement

For the 53 week period ended February 2, 2013

 

     Signet
Jewelers
Limited
    Signet UK
Finance plc
     Guarantor
Subsidiaries
    Non-
Guarantor
Subsidiaries
    Eliminations     Consolidated  

(in millions)

             

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   

Intercompany 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   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

Supplemental Condensed Consolidated Income Statement

For the 52 week period ended January 28, 2012

 

     Signet
Jewelers
Limited
    Signet UK
Finance plc
     Guarantor
Subsidiaries
    Non-
Guarantor
Subsidiaries
    Eliminations     Consolidated  

(in millions)

             

Sales

   $ —        $ —         $ 3,719.6      $ 29.6      $ —        $ 3,749.2   

Cost of sales

     —          —           (2,311.4     (0.2     —          (2,311.6
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Gross margin

     —          —           1,408.2        29.4        —          1,437.6   

Selling, general and administrative expenses

     (4.3     —           (1,053.2     0.8        —          (1,056.7

Other operating income, net

     0.1        —           126.8        (0.4     —          126.5   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Operating (loss) income

     (4.2     —           481.8        29.8        —          507.4   

Intercompany interest (expense) income

     —          —           (43.0     43.0        —          —     

Interest expense, net

     —          —           (5.2     (0.1     —          (5.3
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) income before income taxes

     (4.2     —           433.6        72.7        —          502.1   

Income taxes

     —          —           (173.8     (3.9     —          (177.7
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Equity in income of subsidiaries

     328.6        —           308.8        269.4        (906.8     —     
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 324.4      $ —         $ 568.6      $ 338.2      $ (906.8   $ 324.4   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

Supplemental Condensed Consolidated Statement of Comprehensive Income

For the 52 week period ended February 1, 2014

 

     Signet
Jewelers
Limited
     Signet UK
Finance plc
     Guarantor
Subsidiaries
    Non-
Guarantor
Subsidiaries
    Eliminations     Consolidated  

(in millions)

              

Net income

   $ 368.0       $ —         $ 641.4      $ 375.0      $ (1016.4   $ 368.0   

Other comprehensive income (loss):

              

Foreign currency translation adjustments

     —           —           13.9        (2.7     1.2        12.4   

Cash flow hedges:

              

Unrealized loss

     —           —           (22.0     —          —          (22.0

Reclassification adjustment for losses to net income

     —           —           6.7        —          —          6.7   

Pension plan:

              

Actuarial gain

     —           —           0.2        —          —          0.2   

Reclassification adjustment to net income for amortization of actuarial loss

     —           —           1.7        —          —          1.7   

Prior service benefit

     —           —           (0.7     —          —          (0.7

Reclassification adjustment to net income for amortization of prior service credits

     —           —           (1.1     —          —          (1.1
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total other comprehensive (loss) income

   $ —         $ —         $ (1.3   $ (2.7   $ 1.2      $ (2.8
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income

   $ 368.0       $ —         $ 640.1      $ 372.3      $ (1,015.2   $ 365.2   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

Supplemental Condensed Consolidated Statement of Comprehensive Income

For the 53 week period ended February 2, 2013

 

     Signet
Jewelers
Limited
     Signet UK
Finance plc
     Guarantor
Subsidiaries
    Non-
Guarantor
Subsidiaries
     Eliminations     Consolidated  

(in millions)

               

Net income

   $ 359.9       $ —         $ 624.5      $ 367.9       $ (992.4   $ 359.9   

Other comprehensive income (loss):

               

Foreign currency translation adjustments

     —           —           (0.6     0.1         —          (0.5

Cash flow hedges:

               

Unrealized loss

     —           —           (6.7     —           —          (6.7

Reclassification adjustment for gains to net income

     —           —           (14.4     —           —          (14.4

Pension plan:

               

Actuarial gain

     —           —           4.7        —           —          4.7   

Reclassification adjustment to net income for amortization of actuarial loss

     —           —           2.4        —           —          2.4   

Prior service benefit

     —           —           (0.8     —           —          (0.8

Reclassification adjustment to net income for amortization of prior service credits

     —           —           (1.2     —           —          (1.2
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total other comprehensive (loss) income

   $ —         $ —         $ (16.6   $ 0.1       $ —        $ (16.5
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total comprehensive income

   $ 359.9       $ —         $ 607.9      $ 368.0       $ (992.4   $ 343.4   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

 

Supplemental Condensed Consolidated Statement of Comprehensive Income

For the 52 week period ended January 28, 2012

 

     Signet
Jewelers
Limited
     Signet UK
Finance plc
     Guarantor
Subsidiaries
    Non-
Guarantor
Subsidiaries
     Eliminations     Consolidated  

(in millions)

               

Net income

   $ 324.4       $ —         $ 568.6      $ 338.2       $ (906.8   $ 324.4   

Other comprehensive income:

               

Foreign currency translation adjustments

     —           —           (4.4     0.6         (0.1     (3.9

Cash flow hedges:

               

Unrealized gain

     —           —           32.2        —           —          32.2   

Reclassification adjustment for gains to net income

     —           —           (16.0     —           —          (16.0

Pension plan:

               

Actuarial loss

     —           —           (7.3     —           —          (7.3

Reclassification adjustment to net income for amortization of actuarial loss

     —           —           1.8        —           —          1.8   

Prior service costs

     —           —           5.5        —           —          5.5   

Reclassification adjustment to net income for amortization of prior service credits

     —           —           (0.7     —           —          (0.7
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total other comprehensive income

   $ —         $ —         $ 11.1      $ 0.6       $ (0.1   $ 11.6   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total comprehensive income

   $ 324.4       $ —         $ 579.7      $ 338.8       $ (906.9   $ 336.0   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

 

Supplemental Condensed Consolidated Balance Sheet

February 1, 2014

 

     Signet
Jewelers
Limited
     Signet UK
Finance plc
     Guarantor
Subsidiaries
     Non-
Guarantor
Subsidiaries
     Eliminations     Consolidated  

(in millions)

                

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   

Intercompany 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   

Investment in subsidiaries

     2,526.3         —           1,452.8         1,143.2         (5,122.3     —     

Intercompany receivables, net

     —           —           —           1,098.0         (1,098.0     —     

Other assets

     —           —           110.4         3.6         —          114.0   

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   

Intercompany 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:

                

Intercompany 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   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

Supplemental Condensed Consolidated Balance Sheet

February 2, 2013

 

     Signet
Jewelers
Limited
     Signet UK
Finance plc
     Guarantor
Subsidiaries
     Non-
Guarantor
Subsidiaries
    Eliminations     Consolidated  

(in millions)

               

Assets

               

Current assets:

               

Cash and cash equivalents

   $ 13.4       $ —         $ 271.3       $ 16.3      $ —        $ 301.0   

Accounts receivable, net

     —           —           1,198.8         6.5        —          1,205.3   

Intercompany receivables, net

     37.3         —           —           715.8        (753.1     —     

Other receivables

     —           —           41.8         0.3        —          42.1   

Other current assets

     0.2         —           85.0         0.4        —          85.6   

Deferred tax assets

     —           —           1.1         0.5        —          1.6   

Income taxes

     —           —           3.5         —          —          3.5   

Inventories

     —           —           1,360.9         36.1        —          1,397.0   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total current assets

     50.9         —           2,962.4         775.9        (753.1     3,036.1   

Non-current assets:

               

Property, plant and equipment, net

     —           —           429.7         0.7        —          430.4   

Investment in subsidiaries

     2,288.9         —           1,335.3         1,039.3        (4,663.5     —     

Intercompany receivables, net

     —           —           —           600.0        (600.0     —     

Other assets

     —           —           99.9         —          —          99.9   

Deferred tax assets

     —           —           104.1         —          —          104.1   

Retirement benefit asset

     —           —           48.5         —          —          48.5   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total assets

   $ 2,339.8       $ —         $ 4,979.9       $ 2,415.9      $ (6,016.6   $ 3,719.0   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Liabilities and Shareholders’ equity

               

Current liabilities:

               

Loans and overdrafts

   $ —         $ —         $ —         $ —        $ —        $ —     

Accounts payable

     —           —           160.0         (4.1     —          155.9   

Intercompany payables, net

     —           —           753.1         —          (753.1     —     

Accrued expenses and other current liabilities

     9.9         —           312.3         4.2        —          326.4   

Deferred revenue

     —           —           159.7         —          —          159.7   

Deferred tax liabilities

     —           —           129.6         —          —          129.6   

Income taxes

     —           —           95.9         4.4        —          100.3   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total current liabilities

     9.9         —           1,610.6         4.5        (753.1     871.9   

Non-current liabilities:

               

Intercompany payables, net

     —           —           600.0         —          (600.0     —     

Other liabilities

     —           —           106.1         5.2        —          111.3   

Deferred revenue

     —           —           405.9         —          —          405.9   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total liabilities

     9.9         —           2,722.6         9.7        (1,353.1     1,389.1   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total shareholders’ equity

     2,329.9         —           2,257.3         2,406.2        (4,663.5     2,329.9   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total liabilities and shareholders’ equity

     2,339.8       $ —         $ 4,979.9       $ 2,415.9      $ (6,016.6   $ 3,719.0   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

 

Supplemental Condensed Consolidated Statement of Cash Flows

For the 52 week period ended February 1, 2014

 

     Signet
Jewelers
Limited
    Signet UK
Finance plc
     Guarantor
Subsidiaries
    Non-
Guarantor
Subsidiaries
    Eliminations     Consolidated  

(in millions)

             

Cash flows from operating activities

             

Other cash provided by operating activities

   $ 137.3      $ —         $ 421.3      $ 286.9      $ (610.0   $ 235.5   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by 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., net of cash received

     —          —           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

Intercompany 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   

Intercompany 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   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

Supplemental Condensed Consolidated Statement of Cash Flows

For the 53 week period ended February 2, 2013

 

     Signet
Jewelers
Limited
    Signet UK
Finance plc
     Guarantor
Subsidiaries
    Non-
Guarantor
Subsidiaries
    Eliminations     Consolidated  

(in millions)

             

Cash flows from operating activities

             

Other cash provided by operating activities

   $ 305.7      $ —         $ 512.5      $ 280.5      $ (786.0   $ 359.9   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by 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., net of cash received

     —          —           (56.7     —          —          (56.7
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     —          —           (190.7     (0.2     —          (190.9
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Financing activities

             

Dividends paid

     (38.4     —           —          —          —          (38.4

Intercompany 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

Intercompany 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   

Increase (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   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

Supplemental Condensed Consolidated Statement of Cash Flows

For the 52 week period ended January 28, 2012

 

     Signet
Jewelers
Limited
    Signet UK
Finance plc
     Guarantor
Subsidiaries
    Non-
Guarantor
Subsidiaries
    Eliminations     Consolidated  

(in millions)

             

Cash flows from operating activities

             

Other cash provided by operating activities

   $ 45.7      $ —         $ 665.2      $ 306.5      $ (692.2   $ 325.2   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     45.7        —           665.2        306.5        (692.2     325.2   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Investing activities

             

Purchase of property, plant and equipment

     —          —           (97.8     —          —          (97.8

Investment in subsidiaries

     —          —           (4.2     (2.4     6.6        —     
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     —          —           (102.0     (2.4     6.6        (97.8
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Financing activities

             

Dividends paid

     (8.7     —           —          —          —          (8.7

Intercompany dividends paid

     —          —           (253.3     (438.9     692.2        —     

Proceeds from issuance of common shares

     10.6        —           —          2.4        (2.4     10.6   

Excess tax benefit from exercise of share awards

     —          —           3.9        —          —          3.9   

Repurchase of common shares

     (12.7     —           —          —          —          (12.7

Credit facility fees paid

     —          —           (2.1     —          —          (2.1

Repayment of short-term borrowings

     —          —           (31.0     —          —          (31.0

Intercompany activity, net

     (38.6     —           (80.6     123.4        (4.2     —     
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in financing activities

     (49.4     —           (363.1     (313.1     685.6        (40.0
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at beginning of period

     9.8        —           275.0        17.3        —          302.1   

(Decrease) increase in cash and cash equivalents

     (3.7     —           200.1        (9.0     —          187.4   

Effect of exchange rate changes on cash and cash equivalents

     —          —           (3.5     0.8        —          (2.7
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 6.1      $ —         $ 471.6      $ 9.1      $ —        $ 486.8   
Quarterly Financial Information
Quarterly Financial Information

QUARTERLY FINANCIAL INFORMATION—UNAUDITED

The sum of the quarterly earnings per share data may not equal the full year amount as the computations of the weighted average shares outstanding for each quarter and the full year are calculated independently.

The following information incorporates the change in accounting for extended service plans that is described in Item 6 and Item 8.

 

     Fiscal 2014
Quarters ended
 
     May 4,
2013
     August 3,
2013
     November 2,
2013
     February 1,
2014
 
(in millions, except per share amounts)       

Sales

   $ 993.6       $ 880.2       $ 771.4       $ 1,564.0   

Gross margin

     382.8         309.7         239.2         648.8   

Net income

     91.8         67.4         33.6         175.2   
  

 

 

    

 

 

    

 

 

    

 

 

 

Earnings per share – basic

   $ 1.14       $ 0.84       $ 0.42       $ 2.20   

                                      – diluted

   $ 1.13       $ 0.84       $ 0.42       $ 2.18   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     Fiscal 2013
Quarters ended
 
     April 28,
2012
     July 28,
2012
     October 27,
2012
     February 2,
2013
 
(in millions, except per share amounts)       

Sales

   $ 900.0       $ 853.9       $ 716.2       $ 1,513.3   

Gross margin

     353.7         311.2         235.4         637.1   

Net income

     82.5         70.7         34.9         171.8   
  

 

 

    

 

 

    

 

 

    

 

 

 

Earnings per share – basic

   $ 0.96       $ 0.86       $ 0.43       $ 2.13   

                                      – diluted

   $ 0.96       $ 0.85       $ 0.43       $ 2.12   
  

 

 

    

 

 

    

 

 

    

 

 

 
Principal accounting policies (Policies)

(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 of Signet and its subsidiaries for the 52 week period ended February 1, 2014 (“Fiscal 2014”), as Signet’s fiscal year ends on the Saturday nearest January 31. The comparative periods are for the 53 week period ended February 2, 2013 (“Fiscal 2013”) and the 52 week period ended January 28, 2012 (“Fiscal 2012”). Intercompany balances have been eliminated on consolidation.

(b) Use of estimates

The preparation of consolidated financial statements, in conformity with US GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates and assumptions are primarily made in relation to the valuation of receivables, inventories and deferred revenue, fair value of derivatives, depreciation and asset impairment, the valuation of employee benefits, income taxes and contingencies.

(c) Foreign currency translation

Assets and liabilities denominated in the UK pound sterling are translated into the US dollar at the exchange rate prevailing at the balance sheet date. Equity accounts denominated in the UK pound sterling are translated into US dollars at historical exchange rates. Revenues and expenses denominated in the UK pound sterling are translated into the US dollar at the monthly average exchange rate for the period and calculated each month from the weekly exchange rates weighted by sales of the UK division. Gains and losses resulting from foreign currency transactions are included within the consolidated income statement, whereas translation adjustments and gains and losses related to intercompany loans of a long-term investment nature are recognized as a component of accumulated other comprehensive income (loss) (“OCI”). In addition, as the majority of the sales and expenses related to the factory in Gaborone, Botswana are transacted in US dollars, there is no related foreign currency translation as the US dollar is the functional currency.

(d) Revenue recognition

Revenue is recognized when:

 

   

there is persuasive evidence of an agreement or arrangement;

 

   

delivery of products has occurred or services have been rendered;

 

   

the seller’s price to the buyer is fixed and determinable; and

 

   

collectability is reasonably assured.

Signet’s revenue streams and their respective accounting treatments are discussed below:

Merchandise sales

Store sales are recognized when the customer receives and pays for the merchandise at the store with cash, in-house customer finance or a third party credit card. For online sales, 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.

Revenue on the sale of merchandise is 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.

Certain of Signet’s merchandise sales are derived from providing replacement merchandise on behalf of insurance organizations to their customers who have experienced a loss of their property. In these cases, the sales price is established by contract with the insurance organization and revenue on the sale is recognized upon receipt of the merchandise by the customer.

Merchandise repairs

Revenue on repair of merchandise is recognized when the service is complete and the customer collects the merchandise at the store.

Extended service plans and lifetime warranty agreements

The US division sells extended service plans where it is obliged, subject to certain conditions, to perform repair work over the lifetime of the product. Revenue from the sale of extended service plans is deferred over 14 years. Revenue is recognized in relation to the costs expected to be incurred in performing these services, with approximately 45% of revenue recognized within the first two years (February 2, 2013: 46%). The deferral period 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 used. 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.

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 the sale less an estimate of cancellations based on historical experience.

Sale vouchers

In connection with certain promotions, the Company gives customers making a purchase a voucher granting the customers a discount on a future purchase, redeemable 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.

 

The fair value of the voucher is determined based on the average sales transactions in which the vouchers were issued and the estimated average sales transactions when the vouchers are expected to be redeemed, combined with the estimated voucher redemption rate. The fair value allocated to the future purchase is recorded as deferred revenue.

Sale of consignment inventory

Sales of consignment inventory are accounted for on a gross sales basis. This reflects that the Company is the primary obligor providing independent advice, guidance and after sales service to customers. The products sold from consignment inventory are indistinguishable to the customer from other products that are sold from purchased inventory and are sold on the same terms. The Company selects the products and suppliers at its own discretion and is responsible for determining the selling price and the physical security of the products making it liable for any inventory loss. It also takes the credit risk of a sale to the customer.

(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 to stores, inventory shrinkage, store operating and occupancy costs, net bad debts and charges for late payments under the US 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.

(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 $253.8 million in Fiscal 2014 (Fiscal 2013: $245.8 million; Fiscal 2012: $208.6 million).

(h) Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation, amortization and impairment losses. 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 who are 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 changes in 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.

(i) Goodwill and other intangibles

Goodwill represents the excess of the purchase price of acquisitions over the Company’s interest in the fair value of the identifiable assets and liabilities acquired. Goodwill is recorded by the Company’s reporting units based on the acquisitions made by each. Goodwill is not amortized, but is reviewed for impairment and is required to be tested at least annually or whenever events or changes in circumstances indicate it is more likely than not that a reporting unit’s fair value is less than its carrying value. The annual testing date for reporting units within the US and UK segments is the last day of the fourth quarter.

The Company may elect to perform a qualitative assessment for each reporting unit to determine whether it is more likely than not that the fair value of the reporting unit is greater than its carrying value. If a qualitative assessment is not performed, or if as a result of a qualitative assessment it is not more likely than not that the fair value of a reporting unit exceeds its carrying value, then the reporting unit’s fair value is compared to its carrying value. Fair value is determined through the income approach using discounted cash flow models or market-based methodologies. Significant estimates used in these discounted cash flow models include: the weighted average cost of capital; long-term growth rates; expected changes to selling prices, direct costs and profitability of the business; and working capital requirements. Management estimates discount rates using post-tax rates that reflect assessments of the time value of money and Company-specific risks. If the carrying value exceeds the estimated fair value, the Company determines the fair value of all assets and liabilities of the reporting unit, including the implied fair value of goodwill. If the carrying value of goodwill exceeds the implied fair value of goodwill, the Company recognizes an impairment charge equal to the difference.

Goodwill is recorded in other assets. See Note 12.

(j) Inventories

Inventories held in the US and UK division primarily represent goods held for resale and are valued at the lower of cost or market value. Cost is determined using average cost and includes costs directly related to bringing inventory to its present location and condition. These include relevant 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. The write-down is 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.

Inventories held in the Company’s diamond sourcing operations are valued at the lower of cost, as determined on specific identification process, or market.

(k) 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, these are matched against the costs of these promotions. Vendor contributions, which are received as general contributions and not related to specific promotional events, are recognized as a reduction of inventory costs.

(l) In-house customer finance programs

Signet’s US division operates customer in-house finance programs that allow customers to finance merchandise purchases from the US division’s stores. Signet recognizes finance charges in accordance with the contractual agreements. Gross interest earned is recorded as other operating income in the income statement. See Note 3. 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. 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 non-accrual status.

(m) Accounts receivable

Accounts receivable are stated at their nominal amounts and primarily include account balances outstanding from Signet’s 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, Signet 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 by Signet.

Accounts receivable under the customer finance programs are shown net of an allowance for uncollectible amounts. See Note 10. This allowance is an estimate of the 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 analyses are 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.

(n) Leases

Assets held under capital leases relate to leases where substantially all the risks and rewards of the asset have passed to Signet. All other leases are defined as operating leases. Where operating leases include predetermined rent increases, those rents 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 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.

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.

(o) 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.

At any point in time, various tax years are subject to, or are in the process of, audit 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.

(p) 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. Any gains or losses and prior service costs or credits that arise during the period but are not included as components of net periodic pension cost are recognized, net of tax, in the period within other comprehensive (loss) income.

Signet also operates a defined contribution pension plan in the UK and sponsors a defined contribution 401(k) 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.

(q) Derivative financial instruments and hedge accounting

Signet 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 current or comprehensive income, depending on whether the derivative qualifies as an effective hedge.

If a derivative instrument meets certain hedge accounting criteria, it may be designated as a cash flow hedge on the date it is entered into. A cash flow hedge is a hedge of the exposure to variability in the cash flows of a recognized asset, liability or a forecasted transaction. For cash flow hedge transactions, the effective portion of the changes in fair value of derivatives is recognized directly in equity as a component of accumulated OCI 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 accumulated OCI should be immediately recognized in net income.

Cash flows from derivative contracts are included in net cash provided by operating activities.

(r) Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, money market deposits and amounts placed with external fund managers with an original maturity of three months or less, and 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.

(s) Borrowing costs

Borrowings comprise interest bearing bank loans and bank overdrafts. Borrowing costs are capitalized and amortized into interest expense over the contractual term of the related loan.

(t) 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 of Signet’s 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 (as defined in Note 23 below) and the binomial valuation model for awards granted under the Share Saving Plans (as defined in Note 23 below). 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 a further description of Signet’s share-based compensation plans.

(u) 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.

(v) Common shares

When new shares are issued, they are recorded in Common Shares at their par value. 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 approved by the Board of Directors (the “Board”).

(x) Recently issued accounting pronouncements

Adopted during the period

Reclassification out of Accumulated Other Comprehensive Income

In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” The new guidance does not change the current requirements for reporting net income or other comprehensive income, but it does require disclosure of amounts reclassified out of accumulated other comprehensive income by component, as well as require the presentation of these amounts on the face of the statements of comprehensive income or in the notes to the consolidated financial statements. ASU 2013-02 is effective for the reporting periods beginning after December 15, 2012. Signet adopted this guidance effective for the first quarter ended May 4, 2013 and the implementation of this accounting pronouncement did not have a material impact on Signet’s consolidated financial statements.

To be adopted in future periods

Presentation of Unrecognized Tax Benefit

In July 2013, the FASB issued ASU 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. The guidance in ASU 2013-11 will become effective for the Company prospectively for fiscal years beginning after December 15, 2013, and interim periods within those years, with early adoption permitted. Retrospective application is also permitted. Signet did not early adopt this guidance and it has determined that implementation will not have a material impact on Signet’s consolidated financial statements.

(y) Reclassification

Signet has reclassified the presentation of certain prior year information to conform to the current year presentation.

Segment information (Tables)
     Fiscal
2014
    Fiscal
2013
    Fiscal
2012
 
(in millions)                   

Sales:

      

US

   $ 3,517.6      $ 3,273.9      $ 3,034.1   

UK

     685.6        709.5        715.1   

Other

     6.0        —         —    
  

 

 

   

 

 

   

 

 

 

Total sales

   $ 4,209.2      $ 3,983.4      $ 3,749.2   
  

 

 

   

 

 

   

 

 

 

Operating income (loss):

      

US

   $ 553.2      $ 547.8      $ 478.0   

UK

     42.4        40.0        56.1   

Other

     (25.1 )     (27.3 )     (26.7 )
  

 

 

   

 

 

   

 

 

 

Total operating income

   $ 570.5      $ 560.5      $ 507.4   
  

 

 

   

 

 

   

 

 

 

Depreciation and amortization:

      

US

   $ 88.8      $ 75.9      $ 69.0   

UK

     21.4        23.5        23.4   

Other

     —         —         —    
  

 

 

   

 

 

   

 

 

 

Total depreciation and amortization

   $ 110.2      $ 99.4      $ 92.4   
  

 

 

   

 

 

   

 

 

 

Capital additions:

      

US

   $ 134.2      $ 110.9      $ 75.6   

UK

     18.4        23.1        22.2   

Other

     0.1        0.2        —    
  

 

 

   

 

 

   

 

 

 

Total capital additions

   $ 152.7      $ 134.2      $ 97.8   
  

 

 

   

 

 

   

 

 

 
     February 1,
2014
    February 2,
2013
    January 28,
2012
 
(in millions)                   

Total assets:

      

US

   $ 3,311.0      $ 2,979.2      $ 2,747.5   

UK

     484.6        449.9        427.3   

Other

     233.6        289.9        436.6   
  

 

 

   

 

 

   

 

 

 

Total assets

   $ 4,029.2      $ 3,719.0      $ 3,611.4   
  

 

 

   

 

 

   

 

 

 

Total long-lived assets:

      

US

   $ 423.6      $ 377.5      $ 305.8   

UK

     81.1        76.8        77.0   

Other

     9.7        0.7        0.6   
  

 

 

   

 

 

   

 

 

 

Total long-lived assets

   $ 514.4      $ 455.0      $ 383.4   
  

 

 

   

 

 

   

 

 

 

Total liabilities:

      

US

   $ 1,299.3      $ 1,243.4      $ 1,166.3   

UK

     139.3        116.9        146.2   

Other

     27.5        28.8        19.8   
  

 

 

   

 

 

   

 

 

 

Total liabilities

   $ 1,466.1      $ 1,389.1      $ 1,332.3   
  

 

 

   

 

 

   

 

 

 
     Fiscal
2014
     Fiscal
2013
     Fiscal
2012
 
(in millions)       

Diamonds and diamond jewelry

   $ 2,552.1       $ 2,410.7       $ 2,183.3   

Gold, silver jewelry, other products and services

     1,236.9         1,116.5         1,133.5   

Watches

     420.2         456.2         432.4   
  

 

 

    

 

 

    

 

 

 

Total sales

   $ 4,209.2       $ 3,983.4       $ 3,749.2   
  

 

 

    

 

 

    

 

 

 
Other Operating Income, Net (Tables)
Other Operating Income
     Fiscal
2014
     Fiscal
2013
     Fiscal
2012
 
(in millions)       

Interest income from in-house customer finance programs

   $ 186.4       $ 159.7       $ 125.4   

Other

     0.3         1.7         1.1   
  

 

 

    

 

 

    

 

 

 

Other operating income, net

   $ 186.7       $ 161.4       $ 126.5   
  

 

 

    

 

 

    

 

 

 
Compensation and Benefits (Tables)
Compensation and Benefits

Compensation and benefits were as follows:

 

     Fiscal
2014
     Fiscal
2013
     Fiscal
2012
 
(in millions)       

Wages and salaries

   $ 753.3       $ 713.4       $ 681.5   

Payroll taxes

     65.8         62.6         59.3   

Employee benefit plans expense

     10.2         12.9         11.3   

Share-based compensation expense

     14.4         15.7         17.0   
  

 

 

    

 

 

    

 

 

 

Total compensation and benefits

   $ 843.7       $ 804.6       $ 769.1   
  

 

 

    

 

 

    

 

 

 
Income taxes (Tables)
     Fiscal
2014
    Fiscal
2013
     Fiscal
2012
 
(in millions)       

Income before income taxes:

       

– US

   $ 493.7      $ 494.3       $ 423.2   

– Foreign

     72.8        62.6         78.9   
  

 

 

   

 

 

    

 

 

 

Total income before income taxes

   $ 566.5      $ 556.9       $ 502.1   
  

 

 

   

 

 

    

 

 

 

Current taxation:

       

– US

   $ 211.8      $ 186.6       $ 136.9   

– Foreign

     7.1        6.1         11.5   

Deferred taxation:

       

– US

     (22.8 )     3.1         26.1   

– Foreign

     2.4        1.2         3.2   
  

 

 

   

 

 

    

 

 

 

Total income taxes

   $ 198.5      $ 197.0       $ 177.7   
  

 

 

   

 

 

    

 

 

 

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

 

     Fiscal
2014
    Fiscal
2013
    Fiscal
2012
 
     %     %     %  

US federal income tax rates

     35.0        35.0        35.0   

US state income taxes

     2.5        2.7        2.7   

Differences between US federal and foreign statutory income tax rates

     (0.9 )     (0.6 )     (1.0 )

Expenditures permanently disallowable for tax purposes, net of permanent tax benefits

     0.6        0.8        1.1   

Benefit of intra-group financing and services arrangements

     (2.1 )     (2.1 )     (2.0 )

Other items

     (0.1 )     (0.4 )     (0.4 )
  

 

 

   

 

 

   

 

 

 

Effective tax rate

     35.0        35.4        35.4   
  

 

 

   

 

 

   

 

 

 

Deferred tax assets (liabilities) consisted of the following:

 

     February 1, 2014     February 2, 2013  
     Assets     (Liabilities)     Total     Assets     (Liabilities)     Total  
(in millions)       

US property, plant and equipment

   $ —       $ (70.1 )   $ (70.1 )   $ —       $ (55.8 )   $ (55.8 )

Foreign property, plant and equipment

     7.0        —         7.0        6.7        —         6.7   

Inventory valuation

     —         (169.2 )     (169.2 )     —         (188.6 )     (188.6 )

Allowances for doubtful accounts

     39.7        —         39.7        36.6        —         36.6   

Revenue deferral

     134.3        —         134.3        122.4        —         122.4   

Derivative instruments

     6.9        —         6.9        —         —         —    

Straight-line lease payments

     27.5        —         27.5        26.8        —         26.8   

Deferred compensation

     9.9        —         9.9        7.7        —         7.7   

Retirement benefit obligations

     —         (12.0 )     (12.0 )     —         (11.2 )     (11.2 )

Share-based compensation

     10.3        —         10.3        10.7        —         10.7   

US state income tax accruals

     5.3        —         5.3        5.6        —         5.6   

Other temporary differences

     15.0        —         15.0        16.2        —         16.2   

Value of foreign capital losses

     15.8        —         15.8        16.5        —         16.5   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total gross deferred tax asset (liability)

   $ 271.7      $ (251.3 )   $ 20.4      $ 249.2      $ (255.6 )   $ (6.4 )

Valuation allowance

     (16.8 )     —         (16.8 )     (17.5 )     —         (17.5 )
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Deferred tax asset (liability)

   $ 254.9      $ (251.3 )   $ 3.6      $ 231.7      $ (255.6 )   $ (23.9 )
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Current assets

       $ 3.0          $ 1.6   

Current liabilities

         (113.1 )         (129.6 )

Non-current assets

         113.7            104.1   
      

 

 

       

 

 

 

Deferred tax asset (liability)

       $ 3.6          $ (23.9 )
      

 

 

       

 

 

 

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

 

     Fiscal
2014
    Fiscal
2013
    Fiscal
2012
 
(in millions)       

Balance at beginning of period

   $ 4.5      $ 4.8      $ 9.0   

Increases related to current year tax positions

     0.4        0.2        0.3   

Prior year tax positions:

      

Increases

     0.2        —         —    

Decreases

     —         —         (1.4 )

Cash settlements

     (0.5 )     —         (2.6 )

Lapse of statute of limitations

     —         (0.5 )     (0.5 )
  

 

 

   

 

 

   

 

 

 

Balance at end of period

   $ 4.6      $ 4.5      $ 4.8   
  

 

 

   

 

 

   

 

 

 
Earnings Per Share (Tables)
Earnings Per Share, Basic and Diluted
     Fiscal
2014
     Fiscal
2013
     Fiscal
2012
 
(in millions, except per share amounts)       

Net income

   $ 368.0       $ 359.9       $ 324.4   
  

 

 

    

 

 

    

 

 

 

Basic weighted average number of shares outstanding

     80.2         82.3         86.2   

Dilutive effect of share awards

     0.5         0.5         0.8   
  

 

 

    

 

 

    

 

 

 

Diluted weighted average number of shares outstanding

     80.7         82.8         87.0   
  

 

 

    

 

 

    

 

 

 

Earnings per share – basic

   $ 4.59       $ 4.37       $ 3.76   

Earnings per share – diluted

   $ 4.56       $ 4.35       $ 3.73   
Dividends (Tables)
Payment Of Dividends
     Fiscal 2014     Fiscal 2013     Fiscal 2012  
     Cash dividend
per share
     Total
dividends
    Cash dividend
per share
     Total
dividends
    Cash dividend
per share
     Total
dividends
 
            (in millions)            (in millions)            (in millions)  

First quarter

   $ 0.15       $ 12.1      $ 0.12       $ 10.3      $ —        $ —    

Second quarter

     0.15         12.1        0.12         9.6        —          —    

Third quarter

     0.15         12.0        0.12         9.8        0.10         8.7   

Fourth quarter(1)

     0.15         12.0 (2)      0.12         9.8 (2)       0.10         8.7   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total

   $ 0.60       $ 48.2      $ 0.48       $ 39.5      $ 0.20       $ 17.4   

 

(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 February 1, 2014 and February 2, 2013, $12.0 million and $9.8 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 2014 and Fiscal 2013, respectively.
Accumulated other comprehensive income (loss) (Tables)

The following tables present the changes in accumulated OCI by component and the reclassifications out of accumulated OCI:

 

                 Pension plan        
     Foreign
currency
translation
    Gains (losses)
on cash flow
hedges
    Actuarial
(losses)
gains
    Prior
service
credit
(cost)
    Accumulated
other
comprehensive
(loss) income
 
(in millions)                               

Balance at January 29, 2011

   $ (145.0 )   $ 5.9      $ (46.0 )   $ 14.3      $ (170.8 )

OCI before reclassifications

     (3.9     32.2        (7.3     5.5        26.5   

Amounts reclassified from accumulated OCI

     —         (16.0 )     1.8        (0.7 )     (14.9 )
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net current-period OCI

     (3.9     16.2        (5.5 )     4.8        11.6   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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 accumulated OCI

     —         (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 accumulated OCI

     —         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 )
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

The amounts reclassified from accumulated OCI were as follows:

 

Reclassification activity by individual accumulated OCI
component:

  Fiscal 2014     Fiscal 2013     Fiscal 2012    

Income statement caption

  Amounts
reclassified from
accumulated OCI
    Amounts
reclassified from
accumulated OCI
    Amounts
reclassified from
accumulated OCI
   
(in millions)                      

(Gains) losses on cash flow hedges:

       

Foreign currency contracts

  $ (0.9 )   $ (0.4 )   $ (0.1 )   Cost of sales (see Note 19)

Commodity contracts

    12.0        (22.0 )     (24.5 )   Cost of sales (see Note 19)
 

 

 

   

 

 

   

 

 

   

Total before income tax

    11.1        (22.4 )     (24.6 )  
    (4.4 )     8.0        8.6      Income taxes
 

 

 

   

 

 

   

 

 

   

Net of tax

    6.7        (14.4 )     (16.0 )  
 

 

 

   

 

 

   

 

 

   

Defined benefit pension plan items:

       

Amortization of unrecognized net prior service credit

    (1.5 )     (1.6 )     (1.0 )   Selling, general and administrative expenses(1)

Amortization of unrecognized actuarial loss

    2.3        3.2        2.6      Selling, general and administrative expenses(1)
 

 

 

   

 

 

   

 

 

   

Total before income tax

    0.8        1.6        1.6     
    (0.2 )     (0.4 )     (0.5   Income taxes
 

 

 

   

 

 

   

 

 

   

Net of tax

    0.6        1.2        1.1     
 

 

 

   

 

 

   

 

 

   

Total reclassifications, net of tax

  $ 7.3      $ (13.2 )   $ (14.9 )  
 

 

 

   

 

 

   

 

 

   

 

(1) These items are included in the computation of net periodic pension benefit (cost). See Note 20 for additional information.
Cash and cash equivalents (Tables)
Cash And Cash Equivalents
     February 1,
2014
     February 2,
2013
 
(in millions)       

Cash and cash equivalents held in money markets and other accounts

   $ 225.3       $ 276.6   

Cash equivalents from third-party credit card issuers

     21.1         23.2   

Cash on hand

     1.2         1.2   
  

 

 

    

 

 

 

Total cash and cash equivalents

   $ 247.6       $ 301.0   
  

 

 

    

 

 

 
Accounts receivable, net (Tables)
     February 1,
2014
     February 2,
2013
 
(in millions)       

Accounts receivable by portfolio segment, net:

     

US customer in-house finance receivables

   $ 1,356.0       $ 1,192.9   

Other accounts receivable

     18.0         12.4   
  

 

 

    

 

 

 

Total accounts receivable, net

   $ 1,374.0       $ 1,205.3   
  

 

 

    

 

 

 

Allowance for credit losses on US customer in-house finance receivables:

 

     Fiscal 2014     Fiscal 2013     Fiscal 2012  
(in millions)       

Beginning balance:

   $ (87.7 )   $ (78.1 )   $ (67.8 )

Charge-offs

     128.2        112.8        92.8   

Recoveries

     26.0        21.8        19.3   

Provision

     (164.3 )     (144.2 )     (122.4 )
  

 

 

   

 

 

   

 

 

 

Ending balance

   $ (97.8 )   $ (87.7 )   $ (78.1 )

Ending receivable balance evaluated for impairment

     1,453.8        1,280.6        1,155.5   
  

 

 

   

 

 

   

 

 

 

US customer in-house finance receivables, net

   $ 1,356.0      $ 1,192.9      $ 1,077.4   
  

 

 

   

 

 

   

 

 

 

Credit quality indicator and age analysis of past due US customer in-house finance receivables:

 

      February 1,
2014
    February 2,
2013
    January 28,
2012
 
     Gross      Valuation
allowance
    Gross      Valuation
allowance
    Gross      Valuation
allowance
 
(in millions)       

Performing:

               

Current, aged 0 – 30 days

   $ 1,170.4       $ (36.3 )   $ 1,030.3       $ (33.8 )   $ 932.6       $ (28.9 )

Past due, aged 31 – 90 days

     229.9         (8.0 )     203.9         (7.5 )     180.2         (6.5 )

Non Performing:

               

Past due, aged more than 90 days

     53.5         (53.5 )     46.4         (46.4 )     42.7         (42.7 )
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 
   $ 1,453.8       $ (97.8 )   $ 1,280.6       $ (87.7 )   $ 1,155.5       $ (78.1 )
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

 

     February 1,
2014
    February 2,
2013
    January 28,
2012
 
     Gross     Valuation
allowance
    Gross     Valuation
allowance
    Gross     Valuation
allowance
 
(as a percentage of the ending receivable balance)                                     

Performing

     96.3 %     3.2 %     96.4 %     3.3 %     96.3 %     3.2 %

Non Performing

     3.7 %     100.0 %     3.6 %     100.0 %     3.7 %     100.0 %
     100.0 %     6.7 %     100.0 %     6.8 %     100.0 %     6.8 %
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Inventories (Tables)
     February  1,
2014
     February  2,
2013
 
(in millions)              

Raw materials

   $ 41.8       $ 41.2   

Finished goods

     1,446.2         1,355.8   
  

 

 

    

 

 

 

Total inventories

   $ 1,488.0       $ 1,397.0   
  

 

 

    

 

 

 
     Balance at
beginning of
period
     Charged
to profit
     Utilized(1)     Balance at
end of
period
 
(in millions)       

Fiscal 2012

   $ 27.8       $ 18.4       $ (16.9 )   $ 29.3   

Fiscal 2013

     29.3         23.6         (29.5 )     23.4   

Fiscal 2014

     23.4         33.3         (40.4 )     16.3   

 

(1) Including the impact of foreign exchange translation between opening and closing balance sheet dates.
Other Assets (Tables)
     February 1,
2014
     February 2,
2013
 
(in millions)       

Deferred extended service plan costs

   $ 61.9       $ 56.9   

Goodwill

     26.8         24.6   

Other assets

     25.3         18.4   
  

 

 

    

 

 

 

Total other assets

   $ 114.0       $ 99.9   
  

 

 

    

 

 

 

The following table summarizes the Company’s goodwill by reporting unit:

 

     US     UK      Other      Total  
(in millions)                           

Balance at January 28, 2012

   $ —       $ —        $ —        $ —    

Acquisition(1)

     24.6        —          —          24.6   
  

 

 

   

 

 

    

 

 

    

 

 

 

Balance at February 2, 2013

     24.6        —          —          24.6  

Acquisitions(1)

     (1.4     —          3.6         2.2   
  

 

 

   

 

 

    

 

 

    

 

 

 

Balance at February 1, 2014

   $ 23.2      $ —        $ 3.6       $ 26.8   

 

(1) See Note 14 for additional discussion of the goodwill recorded by the Company during Fiscal 2014 and Fiscal 2013.
Property, Plant And Equipment, Net (Tables)
Property, Plant and Equipment, Net
     February 1,
2014
    February 2,
2013
 
(in millions)             

Land and buildings

   $ 37.2      $ 32.5   

Leasehold improvements

     461.4        419.3   

Furniture and fixtures

     537.3        503.4   

Equipment, including software

     221.1        183.8   

Construction in progress

     18.7        15.5   
  

 

 

   

 

 

 

Total

   $ 1,275.7      $ 1,154.5   

Accumulated depreciation and amortization

     (788.1 )     (724.1 )
  

 

 

   

 

 

 

Property, plant and equipment, net

   $ 487.6      $ 430.4   
  

 

 

   

 

 

 
Acquisitions (Tables)
Total Consideration Allocated to Net Assets Acquired Based on Estimated Fair Values

The Ultra Acquisition was accounted for as a business combination during the fourth quarter of Fiscal 2013. During the first quarter of Fiscal 2014, 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 2013. Accordingly, the total consideration paid has been allocated to the net assets acquired based on the final fair values at October 29, 2012 as follows:

 

     Initial
Allocation
    Final
Allocation
    Change  
(in millions)                   

Recognized amounts of assets acquired and liabilities assumed:

      

Inventories

   $ 43.3      $ 43.3      $ —    

Other current assets, excluding cash acquired

     3.3        3.3        —    

Property and equipment

     12.1        12.1        —    

Other assets

     0.3        0.3        —    

Current liabilities

     (19.5 )     (19.5 )     —    

Other liabilities

     (7.4 )     (7.4 )     —    
  

 

 

   

 

 

   

 

 

 

Fair value of net assets acquired

   $ 32.1      $ 32.1      $ —    

Goodwill(1)

     24.6        23.2        (1.4 )
  

 

 

   

 

 

   

 

 

 

Total consideration

   $ 56.7      $ 55.3      $ (1.4 )
  

 

 

   

 

 

   

 

 

 

 

(1) None of the goodwill will be deductible for income tax purposes. The goodwill balance is recorded within other assets in the consolidated balance sheet. See Note 12.
Accrued expenses and other current liabilities (Tables)
     February 1,
2014
     February 2,
2013
 
(in millions)       

Accrued compensation

   $ 81.3       $ 85.9   

Other liabilities

     50.1         48.7   

Other taxes

     31.7         31.9   

Payroll taxes

     8.0         7.4   

Accrued expenses

     157.4         152.5   
  

 

 

    

 

 

 

Total accrued expenses and other current liabilities

   $ 328.5       $ 326.4   
  

 

 

    

 

 

 

Sales returns reserve included in accrued expenses above:

 

     Balance at
beginning of
period
     Net
adjustment(1)
    Balance at
end of
period
 
(in millions)       

Fiscal 2012

   $ 7.7       $ (0.4 )   $ 7.3   

Fiscal 2013

     7.3         0.3        7.6   

Fiscal 2014

     7.6         0.8        8.4   

 

(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.

Warranty reserve for diamond and gemstone guarantee were as follows:

 

     Balance at
beginning of
period
     Warranty
expense
     Utilized     Balance at
end of
period
 
(in millions)       

Fiscal 2012

   $ 13.0       $ 7.9       $ (5.8 )   $ 15.1   

Fiscal 2013

     15.1         8.6         (5.2 )     18.5   

Fiscal 2014

     18.5         7.4         (6.8 )     19.1   

 

Disclosed as:

   February 1,
2014
     February 2,
2013
 
(in millions)              

Current liabilities(1)

   $ 6.7       $ 6.9   

Non-current liabilities (see Note 17)

     12.4         11.6   
  

 

 

    

 

 

 

Total warranty reserve

   $ 19.1       $ 18.5   
  

 

 

    

 

 

 

 

(1) Included within accrued expenses above.
Deferred Revenue (Tables)

Deferred revenue is comprised primarily of extended service plans (“ESP”) and voucher promotions and other as follows:

 

     February 1,
2014
     February 2,
2013
 
(in millions)       

ESP deferred revenue

   $ 601.2       $ 549.7   

Voucher promotions and other

     15.5         15.9   
  

 

 

    

 

 

 

Total deferred revenue

   $ 616.7       $ 565.6   
  

 

 

    

 

 

 

Disclosed as:

     

Current liabilities

   $ 173.0       $ 159.7   

Non-current liabilities

     443.7         405.9   
  

 

 

    

 

 

 

Total deferred revenue

   $ 616.7       $ 565.6   
  

 

 

    

 

 

 

ESP deferred revenue

 

     Balance at
beginning of
period
     Plans
sold
     Revenue
recognized
    Balance at
end of
period
 
(in millions)       

Fiscal 2012

   $ 481.1       $ 187.0       $ (156.4 )   $ 511.7   

Fiscal 2013

     511.7         205.1         (167.1 )     549.7   

Fiscal 2014

     549.7         223.3         (171.8 )     601.2   
Other Liabilities-Non-Current (Tables)
     February 1,
2014
     February 2,
2013
 
(in millions)       

Straight-line rent

   $ 67.1       $ 65.6   

Deferred compensation

     25.0         18.5   

Warranty reserve

     12.4         11.6   

Lease loss reserve

     5.8         8.1   

Other liabilities

     11.4         7.5   
  

 

 

    

 

 

 

Total other liabilities

   $ 121.7       $ 111.3   
  

 

 

    

 

 

 
     February 1,
2014
    February 2,
2013
 
(in millions)       

At beginning of period:

   $ 8.1      $ 9.6   

Adjustments, net

     (1.6     (1.1

Utilization(1)

     (0.7 )     (0.4 )
  

 

 

   

 

 

 

At end of period

   $ 5.8      $ 8.1   
  

 

 

   

 

 

 

 

(1) Including the impact of foreign exchange translation between opening and closing balance sheet dates.
Loans, Overdrafts and Long-Term Debt (Tables)
Summary of Loans, Overdrafts and Long-Term Debt

Loans and overdrafts

 

(in millions)    February 1,
2014
     February  2,
2013
 

Current liabilities – loans and overdrafts

     

Revolving credit facility

   $ —        $ —    

Bank overdrafts

     19.3         —    
  

 

 

    

 

 

 

Total loans and overdrafts

   $ 19.3       $ —    
  

 

 

    

 

 

 
Financial instruments and fair value (Tables)

The following table summarizes the fair value and presentation of derivative instruments in the consolidated balance sheets:

 

     Derivative assets  
          Fair value  
     Balance sheet location    February 1,
2014
     February 2,
2013
 
(in millions)                   

Derivatives designated as hedging instruments:

        

Foreign currency contracts

   Other current assets    $ —        $ 1.0   

Foreign currency contracts

   Other assets      —          —    

Commodity contracts

   Other current assets      0.8         2.8   

Commodity contracts

   Other assets      —          —    
     

 

 

    

 

 

 
        0.8         3.8   
     

 

 

    

 

 

 

Derivatives not designated as hedging instruments:

        

Foreign currency contracts

   Other current assets      0.2         —    
     

 

 

    

 

 

 

Total derivative assets

      $ 1.0       $ 3.8   
     

 

 

    

 

 

 

 

     Derivative liabilities  
          Fair value  
     Balance sheet location    February 1,
2014
    February 2,
2013
 
(in millions)                  

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 )     (4.6 )

Commodity contracts

   Other liabilities      —         —    
     

 

 

   

 

 

 
        (2.9 )     (4.6 )
     

 

 

   

 

 

 

Derivatives not designated as hedging instruments:

       

Foreign currency contracts

   Other current liabilities      —         —    
     

 

 

   

 

 

 

Total derivative liabilities

      $ (2.9 )   $ (4.6 )
     

 

 

   

 

 

 

The following table summarizes the pre-tax gains (losses) recorded in accumulated OCI for derivatives designated in cash flow hedging relationships:

 

     February 1,
2014
    February 2,
2013
 
(in millions)             

Foreign currency contracts

   $ (2.3 )   $ 1.3   

Commodity contracts

     (18.8 )(1)      (0.5 )
  

 

 

   

 

 

 

Total

   $ (21.1 )   $ 0.8   
  

 

 

   

 

 

 

 

(1) Includes losses of $18.2 million related to commodity contracts terminated prior to contract maturity in Fiscal 2014.

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

 

     February 1, 2014     February 2, 2013  
     Carrying
amount
    Significant other
observable
inputs
(Level 2)
    Carrying
amount
    Significant other
observable
inputs
(Level 2)
 
(in millions)                         

Assets:

        

Foreign currency contracts

   $ 0.2      $ 0.2      $ 1.0      $ 1.0   

Commodity contracts

     0.8        0.8        2.8        2.8   

Liabilities:

        

Foreign currency contracts

     (2.1 )     (2.1 )     —          —     

Commodity contracts

     (0.8 )     (0.8 )     (4.6 )     (4.6 )

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
 
            Fiscal
2014
    Fiscal
2013
 
(in millions)       

Derivatives not designated as hedging instruments:

       

Foreign currency contracts

     Other operating income, net       $ (5.5 )   $ —    
     

 

 

   

 

 

 

Total

      $ (5.5 )   $ —    
     

 

 

   

 

 

 

The following tables summarize the effect of derivative instruments designated as cash flow hedges in OCI and the consolidated income statements:

Foreign currency contracts

 

     Income statement caption      Fiscal
2014
    Fiscal
2013
 
(in millions)                    

Gains (losses) recorded in accumulated OCI, beginning of year

      $ 1.3      $ 1.2   

Current period (losses) gains recognized in OCI

        (2.7 )     0.5   

(Gains) losses reclassified from accumulated OCI to net income

     Cost of sales         (0.9 )     (0.4 )
     

 

 

   

 

 

 

(Losses) gains recorded in accumulated OCI, end of year

      $ (2.3 )   $ 1.3   
     

 

 

   

 

 

 

Commodity contracts

 

     Income statement caption      Fiscal
2014
    Fiscal
2013
 
(in millions)                    

(Losses) gains recorded in accumulated OCI, beginning of year

      $ (0.5 )   $ 32.4   

Current period (losses) gains recognized in OCI

        (30.3 )(1)      (10.9 )

Losses (gains) reclassified from accumulated OCI to net income

     Cost of sales         12.0        (22.0
     

 

 

   

 

 

 

(Losses) gains recorded in accumulated OCI, end of year

      $ (18.8 )   $ (0.5 )
     

 

 

   

 

 

 

 

(1) Includes losses of $27.8 million related to the change in fair value of commodity contracts the Company terminated prior to contract maturity in Fiscal 2014.
Pension plans (Tables)

The following tables provide information concerning the UK Plan as of and for the fiscal years ended February 1, 2014 and February 2, 2013:

 

     Fiscal
2014
    Fiscal
2013
 
(in millions)             

Change in UK Plan assets:

    

Fair value at beginning of year

   $ 261.1      $ 236.0   

Actual return on UK Plan assets

     13.1        22.1   

Employer contributions

     4.9        13.7   

Members’ contributions

     0.7        0.5   

Benefits paid

     (9.3 )     (10.9 )

Foreign currency changes

     12.1        (0.3 )
  

 

 

   

 

 

 

Fair value at end of year

   $ 282.6      $ 261.1   
  

 

 

   

 

 

 
     Fiscal
2014
    Fiscal
2013
 
(in millions)             

Change in benefit obligation:

    

Benefit obligation at beginning of year

   $ 212.6      $ 204.5   

Service cost

     2.4        3.6   

Past service cost

     0.9        1.1   

Interest cost

     9.3        9.5   

Members’ contributions

     0.7        0.5   

Actuarial loss (gain)

     (0.1 )     4.3   

Benefits paid

     (9.3 )     (10.9 )

Foreign currency changes

     9.8         
  

 

 

   

 

 

 

Benefit obligation at end of year

   $ 226.3      $ 212.6   
  

 

 

   

 

 

 

Funded status at end of year: UK Plan assets less benefit obligation

   $ 56.3      $ 48.5
     February 1,
2014
     February 2,
2013
 
(in millions)              

Amounts recognized in the balance sheet consist of:

     

Non-current assets

   $ 56.3       $ 48.5   

Non-current liabilities

     —          —    
  

 

 

    

 

 

 

Net asset recognized

   $ 56.3       $ 48.5   
  

 

 

    

 

 

 

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

 

     February 1,
2014
    February 2,
2013
    January 28,
2012
 
(in millions)                   

Net actuarial loss

   $ (42.5 )   $ (44.4 )   $ (51.5 )

Net prior service credit

     15.3        17.1        19.1   

The components of net periodic pension cost and other amounts recognized in OCI for the UK Plan are as follows:

 

     Fiscal
2014
    Fiscal
2013
    Fiscal
2012
 
(in millions)                   

Components of net periodic pension cost:

      

Service cost

   $ (2.4   $ (3.6   $ (4.8

Interest cost

     (9.3     (9.5     (10.7

Expected return on UK Plan assets

     13.0        11.5        13.8   

Amortization of unrecognized net prior service credit

     1.5        1.6        1.0   

Amortization of unrecognized actuarial loss

     (2.3     (3.2     (2.6
  

 

 

   

 

 

   

 

 

 

Net periodic pension benefit (cost)

   $ 0.5      $ (3.2   $ (3.3

Other changes in assets and benefit obligations recognized in OCI

     0.1        6.7        (1.7
  

 

 

   

 

 

   

 

 

 

Total recognized in net periodic pension benefit (cost) and OCI

   $ 0.6      $ 3.5      $ (5.0
  

 

 

   

 

 

   

 

 

 
     February 1,
2014
    February 2,
2013
 

Assumptions used to determine benefit obligations (at the end of the year):

    

Discount rate

     4.40     4.50

Salary increases

     3.00     3.20

Assumptions used to determine net periodic pension costs (at the start of the year):

    

Discount rate

     4.50     4.70

Expected return on UK Plan assets

     5.00     4.75

Salary increases

     3.20     3.20

The table below sets forth changes in the fair value of the Level 3 investment assets in Fiscal 2014 and 2013:

 

(in millions)       

Balance at January 28, 2012

   $ 10.3   

Actual return on assets

     0.1   
  

 

 

 

Balance at February 2, 2013

   $ 10.4   

Actual return on assets

     1.2   
  

 

 

 

Balance at February 1, 2014

   $ 11.6   
  

 

 

 

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

 

(in millions)       

Fiscal 2015

   $ 9.3   

Fiscal 2016

     10.3   

Fiscal 2017

     10.7   

Fiscal 2018

     10.3   

Fiscal 2019

     11.9   

Fiscal 2020 to Fiscal 2024

     62.2   

The value and classification of these assets are as follows:

 

     Fair value measurements at
February 1, 2014
     Fair value measurements at
February 2, 2013
 
     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)
 
(in millions)                                          

Assets:

                 

Corporate-owned life insurance plans

   $ 8.2       $ —        $ 8.2       $ 8.9       $ —        $ 8.9   

Money market funds

     16.3         16.3         —          8.6         8.6         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total assets

   $ 24.5       $ 16.3       $ 8.2       $ 17.5       $ 8.6       $ 8.9   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The value and classification of these assets was as follows:

 

    Fair value measurements at
February 1, 2014
    Fair value measurements at
February 2, 2013
 
    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)
 
(in millions)      

Asset category:

           

Diversified equity securities

  $ 41.0      $ 19.1      $ 21.9      $ —       $ 73.2      $ 34.9      $ 38.3      $ —    

Diversified growth funds

    100.5        50.8        49.7        —         51.2        26.3        24.9        —    

Fixed income – government bonds

    64.2        —         64.2        —         63.4        —         63.4        —    

Fixed income – corporate bonds

    64.6        —         64.6        —         61.7        —         61.7        —    

Property

    11.6        —         —         11.6        10.4        —         —         10.4   

Cash

    0.7        0.7        —         —         1.2        1.2        —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 282.6      $ 70.6      $ 200.4      $ 11.6      $ 261.1      $ 62.4      $ 188.3      $ 10.4   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Common shares, treasury shares and reserves (Tables)
Share Repurchase Activity

Share repurchase activity is as follows:

 

          Fiscal 2014     Fiscal 2013     Fiscal 2012  
    Amount
authorized
    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        808,428      $ 54.6      $ 67.54        na        na        na        na        na        na   

2011 Program(2)

    350.0        749,245        50.1        66.92        6,425,296      $ 287.2      $ 44.70        256,241      $ 12.7      $ 49.57   
   

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

   

Total

      1,557,673      $ 104.7      $ 67.24        6,425,296      $ 287.2      $ 44.70        256,241      $ 12.7      $ 49.57   
   

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

   

 

(1) On June 14, 2013, the Board 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 $295.4 million remaining as of February 1, 2014.
(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.
na Not applicable.
Commitments and Contingencies (Tables)

Rental expense for operating leases is as follows:

 

     Fiscal
2014
    Fiscal
2013
    Fiscal
2012
 
(in millions)       

Minimum rentals

   $ 323.7      $ 316.0      $ 311.7   

Contingent rent

     11.1        7.8        9.8   

Sublease income

     (0.9 )     (2.9 )     (5.1 )
  

 

 

   

 

 

   

 

 

 

Total

   $ 333.9      $ 320.9      $ 316.4   
  

 

 

   

 

 

   

 

 

 

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 2015

   $ 311.1   

Fiscal 2016

     275.4   

Fiscal 2017

     245.8   

Fiscal 2018

     212.6   

Fiscal 2019

     181.8   

Thereafter

     937.7   
  

 

 

 

Total

   $ 2,164.4   
  

 

 

 
Share-based compensation (Tables)

Share-based compensation expense and the associated tax benefits are as follows:

 

     Fiscal
2014
    Fiscal
2013
    Fiscal
2012
 
(in millions)                   

Share-based compensation expense

   $ 14.4      $ 15.7      $ 17.0   
  

 

 

   

 

 

   

 

 

 

Income tax benefit

   $ (5.2 )   $ (5.4 )   $ (5.7 )
  

 

 

   

 

 

   

 

 

 

Unrecognized compensation cost related to awards granted under share-based compensation plans is as follows:

 

     Unrecognized Compensation Cost  
     Fiscal 2014      Fiscal 2013      Fiscal 2012  
(in millions)                     

Omnibus Plan

   $ 14.4       $ 14.6       $ 16.3   

Share Saving Plans

     2.9         2.9         3.3   

CEO Shares

     —          0.4         2.3   
  

 

 

    

 

 

    

 

 

 

Total

   $ 17.3       $ 17.9       $ 21.9   

Weighted average period of amortization

     1.8 years         1.7 years         1.6 years   

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 2014     Fiscal 2013     Fiscal 2012  

Share price(1)

   $ 72.65      $ 49.89      $ 40.09   

Exercise price(1)

   $ 59.75      $ 41.17      $ 28.32   

Risk free interest rate(1)

     0.7     0.4     0.7 %

Expected term(1)

     2.7 years        2.7 years        3.0 years   

Expected volatility(1)

     40.2 %     41.0 %     43.0 %

Dividend yield(1)

     1.1 %     1.4 %     1.0

Fair value(1)

   $ 22.89      $ 15.40      $ 11.55   

 

(1) Weighted average.

The Fiscal 2014 activity for awards granted under the Share Saving Plans is as follows:

 

     Share Saving Plans  
    

No. of
shares

    Weighted
average
exercise
price
     Weighted
average
remaining
contractual
life
     Intrinsic
value(1)
 
     millions                   millions  

Outstanding at February 2, 2013

     0.3      $ 32.48         1.9 years       $ 9.8   

Fiscal 2014 activity:

          

Granted

     0.1      $ 59.75         

Exercised

     (0.1   $ 27.32         

Lapsed

     —       $ —          
  

 

 

   

 

 

    

 

 

    

 

 

 

Outstanding at February 1, 2014

     0.3      $ 44.06         1.7 years       $ 9.4   
  

 

 

   

 

 

    

 

 

    

 

 

 

Exercisable at February 2, 2013

     —       $ —          —        $ —    

Exercisable at February 1, 2014

     —       $ —          —        $ —    
  

 

 

   

 

 

    

 

 

    

 

 

 

 

(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:

 

     Fiscal
2014
     Fiscal
2013
     Fiscal
2012
 
(in millions)                     

Weighted average grant date fair value per share of awards granted

   $ 22.89       $ 15.40       $ 11.55   
  

 

 

    

 

 

    

 

 

 

Total intrinsic value of options exercised

   $ 4.9       $ 3.3       $ 1.1   
  

 

 

    

 

 

    

 

 

 

Cash received from share options exercised

   $ 2.9       $ 2.7       $ 3.2   
  

 

 

    

 

 

    

 

 

 

The Fiscal 2014 activity for awards granted under the Executive Plans is as follows:

 

     Executive Plans  
    

No. of
shares

    Weighted
average
exercise
price
     Weighted
average
remaining
contractual
life
     Intrinsic
value(1)
 
     millions                   millions  

Outstanding at February 2, 2013

     0.3      $ 39.07         3.4 years       $ 6.5   

Fiscal 2014 activity:

          

Granted

     —       $ —          

Exercised

     (0.2   $ 39.28         

Lapsed

     —       $ —          
  

 

 

   

 

 

    

 

 

    

 

 

 

Outstanding at February 1, 2014

     0.1      $ 39.11         3.5 years       $ 4.1   
  

 

 

   

 

 

    

 

 

    

 

 

 

Exercisable at February 2, 2013

     0.3      $ 39.07          $ 6.5   

Exercisable at February 1, 2014

     0.1      $ 39.11          $ 4.1   
  

 

 

   

 

 

    

 

 

    

 

 

 

 

(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:

 

     Fiscal
2014
     Fiscal
2013
     Fiscal
2012
 
(in millions)                     

Total intrinsic value of options exercised

   $ 4.8       $ 9.0       $ 5.2   
  

 

 

    

 

 

    

 

 

 

Cash received from share options exercised

   $ 6.3       $ 18.9       $ 7.4   
  

 

 

    

 

 

    

 

 

 

The significant assumptions utilized to estimate the weighted-average fair value of awards granted under the Omnibus Plan are as follows:

 

     Omnibus Plan  
     Fiscal 2014     Fiscal 2013     Fiscal 2012  

Share price(1)

   $ 67.39      $ 47.15      $ 44.33   

Risk free interest rate(1)

     0.3     0.4     1.4 %

Expected term(1)

     2.8 years        2.9 years        2.9 years   

Expected volatility(1)

     41.7 %     44.2 %     45.1 %

Dividend yield(1)

     1.1 %     1.2 %     0.7

Fair value(1)

   $ 66.10      $ 46.12      $ 43.52   

 

(1) Weighted average.

The Fiscal 2014 activity for awards granted under the Omnibus Plan is as follows:

 

     Omnibus  Plans(1)  
     No. of
shares
    Weighted
average
grant date
fair value
     Weighted
average
remaining
contractual
life
     Intrinsic
value(2)
 
     millions                   millions  

Outstanding at February 2, 2013

     1.2      $ 40.86         1.1 years       $ 73.1   

Fiscal 2014 activity:

          

Granted

     0.3      $ 66.10         

Vested

     (0.4   $ 33.62         

Lapsed

     (0.1   $ 46.58         
  

 

 

   

 

 

    

 

 

    

 

 

 

Outstanding at February 1, 2014

     1.0      $ 51.44         1.0 years       $ 80.1   
  

 

 

   

 

 

    

 

 

    

 

 

 

 

(1) Includes shares issued to the CEO, whose contract includes share based compensation for amounts foregone from his prior employment.
(2) 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:

 

     Fiscal
2014
     Fiscal
2013
     Fiscal
2012
 
(in millions)                     

Total intrinsic value of awards vested

   $ 25.3       $ 28.5       $ 0.5   
  

 

 

    

 

 

    

 

 

 
Condensed Consolidating Financial Information (Tables)
Condensed Financial Statements

Supplemental Condensed Consolidated Income Statement

For the 52 week period ended February 1, 2014

 

     Signet
Jewelers
Limited
    Signet UK
Finance plc
     Guarantor
Subsidiaries
    Non-
Guarantor
Subsidiaries
    Eliminations     Consolidated  

(in millions)

             

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   

Intercompany 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   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

Supplemental Condensed Consolidated Income Statement

For the 53 week period ended February 2, 2013

 

     Signet
Jewelers
Limited
    Signet UK
Finance plc
     Guarantor
Subsidiaries
    Non-
Guarantor
Subsidiaries
    Eliminations     Consolidated  

(in millions)

             

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   

Intercompany 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   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

Supplemental Condensed Consolidated Income Statement

For the 52 week period ended January 28, 2012

 

     Signet
Jewelers
Limited
    Signet UK
Finance plc
     Guarantor
Subsidiaries
    Non-
Guarantor
Subsidiaries
    Eliminations     Consolidated  

(in millions)

             

Sales

   $ —        $ —         $ 3,719.6      $ 29.6      $ —        $ 3,749.2   

Cost of sales

     —          —           (2,311.4     (0.2     —          (2,311.6
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Gross margin

     —          —           1,408.2        29.4        —          1,437.6   

Selling, general and administrative expenses

     (4.3     —           (1,053.2     0.8        —          (1,056.7

Other operating income, net

     0.1        —           126.8        (0.4     —          126.5   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Operating (loss) income

     (4.2     —           481.8        29.8        —          507.4   

Intercompany interest (expense) income

     —          —           (43.0     43.0        —          —     

Interest expense, net

     —          —           (5.2     (0.1     —          (5.3
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) income before income taxes

     (4.2     —           433.6        72.7        —          502.1   

Income taxes

     —          —           (173.8     (3.9     —          (177.7
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Equity in income of subsidiaries

     328.6        —           308.8        269.4        (906.8     —     
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 324.4      $ —         $ 568.6      $ 338.2      $ (906.8   $ 324.4   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

Supplemental Condensed Consolidated Statement of Comprehensive Income

For the 52 week period ended February 1, 2014

 

     Signet
Jewelers
Limited
     Signet UK
Finance plc
     Guarantor
Subsidiaries
    Non-
Guarantor
Subsidiaries
    Eliminations     Consolidated  

(in millions)

              

Net income

   $ 368.0       $ —         $ 641.4      $ 375.0      $ (1016.4   $ 368.0   

Other comprehensive income (loss):

              

Foreign currency translation adjustments

     —           —           13.9        (2.7     1.2        12.4   

Cash flow hedges:

              

Unrealized loss

     —           —           (22.0     —          —          (22.0

Reclassification adjustment for losses to net income

     —           —           6.7        —          —          6.7   

Pension plan:

              

Actuarial gain

     —           —           0.2        —          —          0.2   

Reclassification adjustment to net income for amortization of actuarial loss

     —           —           1.7        —          —          1.7   

Prior service benefit

     —           —           (0.7     —          —          (0.7

Reclassification adjustment to net income for amortization of prior service credits

     —           —           (1.1     —          —          (1.1
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total other comprehensive (loss) income

   $ —         $ —         $ (1.3   $ (2.7   $ 1.2      $ (2.8
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income

   $ 368.0       $ —         $ 640.1      $ 372.3      $ (1,015.2   $ 365.2   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

Supplemental Condensed Consolidated Statement of Comprehensive Income

For the 53 week period ended February 2, 2013

 

     Signet
Jewelers
Limited
     Signet UK
Finance plc
     Guarantor
Subsidiaries
    Non-
Guarantor
Subsidiaries
     Eliminations     Consolidated  

(in millions)

               

Net income

   $ 359.9       $ —         $ 624.5      $ 367.9       $ (992.4   $ 359.9   

Other comprehensive income (loss):

               

Foreign currency translation adjustments

     —           —           (0.6     0.1         —          (0.5

Cash flow hedges:

               

Unrealized loss

     —           —           (6.7     —           —          (6.7

Reclassification adjustment for gains to net income

     —           —           (14.4     —           —          (14.4

Pension plan:

               

Actuarial gain

     —           —           4.7        —           —          4.7   

Reclassification adjustment to net income for amortization of actuarial loss

     —           —           2.4        —           —          2.4   

Prior service benefit

     —           —           (0.8     —           —          (0.8

Reclassification adjustment to net income for amortization of prior service credits

     —           —           (1.2     —           —          (1.2
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total other comprehensive (loss) income

   $ —         $ —         $ (16.6   $ 0.1       $ —        $ (16.5
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total comprehensive income

   $ 359.9       $ —         $ 607.9      $ 368.0       $ (992.4   $ 343.4   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

 

Supplemental Condensed Consolidated Statement of Comprehensive Income

For the 52 week period ended January 28, 2012

 

     Signet
Jewelers
Limited
     Signet UK
Finance plc
     Guarantor
Subsidiaries
    Non-
Guarantor
Subsidiaries
     Eliminations     Consolidated  

(in millions)

               

Net income

   $ 324.4       $ —         $ 568.6      $ 338.2       $ (906.8   $ 324.4   

Other comprehensive income:

               

Foreign currency translation adjustments

     —           —           (4.4     0.6         (0.1     (3.9

Cash flow hedges:

               

Unrealized gain

     —           —           32.2        —           —          32.2   

Reclassification adjustment for gains to net income

     —           —           (16.0     —           —          (16.0

Pension plan:

               

Actuarial loss

     —           —           (7.3     —           —          (7.3

Reclassification adjustment to net income for amortization of actuarial loss

     —           —           1.8        —           —          1.8   

Prior service costs

     —           —           5.5        —           —          5.5   

Reclassification adjustment to net income for amortization of prior service credits

     —           —           (0.7     —           —          (0.7
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total other comprehensive income

   $ —         $ —         $ 11.1      $ 0.6       $ (0.1   $ 11.6   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total comprehensive income

   $ 324.4       $ —         $ 579.7      $ 338.8       $ (906.9   $ 336.0   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

 

Supplemental Condensed Consolidated Balance Sheet

February 1, 2014

 

     Signet
Jewelers
Limited
     Signet UK
Finance plc
     Guarantor
Subsidiaries
     Non-
Guarantor
Subsidiaries
     Eliminations     Consolidated  

(in millions)

                

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   

Intercompany 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   

Investment in subsidiaries

     2,526.3         —           1,452.8         1,143.2         (5,122.3     —     

Intercompany receivables, net

     —           —           —           1,098.0         (1,098.0     —     

Other assets

     —           —           110.4         3.6         —          114.0   

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   

Intercompany 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:

                

Intercompany 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   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

Supplemental Condensed Consolidated Balance Sheet

February 2, 2013

 

     Signet
Jewelers
Limited
     Signet UK
Finance plc
     Guarantor
Subsidiaries
     Non-
Guarantor
Subsidiaries
    Eliminations     Consolidated  

(in millions)

               

Assets

               

Current assets:

               

Cash and cash equivalents

   $ 13.4       $ —         $ 271.3       $ 16.3      $ —        $ 301.0   

Accounts receivable, net

     —           —           1,198.8         6.5        —          1,205.3   

Intercompany receivables, net

     37.3         —           —           715.8        (753.1     —     

Other receivables

     —           —           41.8         0.3        —          42.1   

Other current assets

     0.2         —           85.0         0.4        —          85.6   

Deferred tax assets

     —           —           1.1         0.5        —          1.6   

Income taxes

     —           —           3.5         —          —          3.5   

Inventories

     —           —           1,360.9         36.1        —          1,397.0   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total current assets

     50.9         —           2,962.4         775.9        (753.1     3,036.1   

Non-current assets:

               

Property, plant and equipment, net

     —           —           429.7         0.7        —          430.4   

Investment in subsidiaries

     2,288.9         —           1,335.3         1,039.3        (4,663.5     —     

Intercompany receivables, net

     —           —           —           600.0        (600.0     —     

Other assets

     —           —           99.9         —          —          99.9   

Deferred tax assets

     —           —           104.1         —          —          104.1   

Retirement benefit asset

     —           —           48.5         —          —          48.5   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total assets

   $ 2,339.8       $ —         $ 4,979.9       $ 2,415.9      $ (6,016.6   $ 3,719.0   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Liabilities and Shareholders’ equity

               

Current liabilities:

               

Loans and overdrafts

   $ —         $ —         $ —         $ —        $ —        $ —     

Accounts payable

     —           —           160.0         (4.1     —          155.9   

Intercompany payables, net

     —           —           753.1         —          (753.1     —     

Accrued expenses and other current liabilities

     9.9         —           312.3         4.2        —          326.4   

Deferred revenue

     —           —           159.7         —          —          159.7   

Deferred tax liabilities

     —           —           129.6         —          —          129.6   

Income taxes

     —           —           95.9         4.4        —          100.3   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total current liabilities

     9.9         —           1,610.6         4.5        (753.1     871.9   

Non-current liabilities:

               

Intercompany payables, net

     —           —           600.0         —          (600.0     —     

Other liabilities

     —           —           106.1         5.2        —          111.3   

Deferred revenue

     —           —           405.9         —          —          405.9   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total liabilities

     9.9         —           2,722.6         9.7        (1,353.1     1,389.1   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total shareholders’ equity

     2,329.9         —           2,257.3         2,406.2        (4,663.5     2,329.9   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total liabilities and shareholders’ equity

     2,339.8       $ —         $ 4,979.9       $ 2,415.9      $ (6,016.6   $ 3,719.0   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

 

Supplemental Condensed Consolidated Statement of Cash Flows

For the 52 week period ended February 1, 2014

 

     Signet
Jewelers
Limited
    Signet UK
Finance plc
     Guarantor
Subsidiaries
    Non-
Guarantor
Subsidiaries
    Eliminations     Consolidated  

(in millions)

             

Cash flows from operating activities

             

Other cash provided by operating activities

   $ 137.3      $ —         $ 421.3      $ 286.9      $ (610.0   $ 235.5   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by 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., net of cash received

     —          —           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

Intercompany 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   

Intercompany 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   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

Supplemental Condensed Consolidated Statement of Cash Flows

For the 53 week period ended February 2, 2013

 

     Signet
Jewelers
Limited
    Signet UK
Finance plc
     Guarantor
Subsidiaries
    Non-
Guarantor
Subsidiaries
    Eliminations     Consolidated  

(in millions)

             

Cash flows from operating activities

             

Other cash provided by operating activities

   $ 305.7      $ —         $ 512.5      $ 280.5      $ (786.0   $ 359.9   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by 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., net of cash received

     —          —           (56.7     —          —          (56.7
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     —          —           (190.7     (0.2     —          (190.9
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Financing activities

             

Dividends paid

     (38.4     —           —          —          —          (38.4

Intercompany 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

Intercompany 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   

Increase (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   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

Supplemental Condensed Consolidated Statement of Cash Flows

For the 52 week period ended January 28, 2012

 

     Signet
Jewelers
Limited
    Signet UK
Finance plc
     Guarantor
Subsidiaries
    Non-
Guarantor
Subsidiaries
    Eliminations     Consolidated  

(in millions)

             

Cash flows from operating activities

             

Other cash provided by operating activities

   $ 45.7      $ —         $ 665.2      $ 306.5      $ (692.2   $ 325.2   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     45.7        —           665.2        306.5        (692.2     325.2   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Investing activities

             

Purchase of property, plant and equipment

     —          —           (97.8     —          —          (97.8

Investment in subsidiaries

     —          —           (4.2     (2.4     6.6        —     
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     —          —           (102.0     (2.4     6.6        (97.8
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Financing activities

             

Dividends paid

     (8.7     —           —          —          —          (8.7

Intercompany dividends paid

     —          —           (253.3     (438.9     692.2        —     

Proceeds from issuance of common shares

     10.6        —           —          2.4        (2.4     10.6   

Excess tax benefit from exercise of share awards

     —          —           3.9        —          —          3.9   

Repurchase of common shares

     (12.7     —           —          —          —          (12.7

Credit facility fees paid

     —          —           (2.1     —          —          (2.1

Repayment of short-term borrowings

     —          —           (31.0     —          —          (31.0

Intercompany activity, net

     (38.6     —           (80.6     123.4        (4.2     —     
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in financing activities

     (49.4     —           (363.1     (313.1     685.6        (40.0
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at beginning of period

     9.8        —           275.0        17.3        —          302.1   

(Decrease) increase in cash and cash equivalents

     (3.7     —           200.1        (9.0     —          187.4   

Effect of exchange rate changes on cash and cash equivalents

     —          —           (3.5     0.8        —          (2.7
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 6.1      $ —         $ 471.6      $ 9.1      $ —        $ 486.8   
Quarterly Financial Information (Tables)
Schedule of Quarterly Financial Information

The following information incorporates the change in accounting for extended service plans that is described in Item 6 and Item 8.

 

     Fiscal 2014
Quarters ended
 
     May 4,
2013
     August 3,
2013
     November 2,
2013
     February 1,
2014
 
(in millions, except per share amounts)       

Sales

   $ 993.6       $ 880.2       $ 771.4       $ 1,564.0   

Gross margin

     382.8         309.7         239.2         648.8   

Net income

     91.8         67.4         33.6         175.2   
  

 

 

    

 

 

    

 

 

    

 

 

 

Earnings per share – basic

   $ 1.14       $ 0.84       $ 0.42       $ 2.20   

                                      – diluted

   $ 1.13       $ 0.84       $ 0.42       $ 2.18   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     Fiscal 2013
Quarters ended
 
     April 28,
2012
     July 28,
2012
     October 27,
2012
     February 2,
2013
 
(in millions, except per share amounts)       

Sales

   $ 900.0       $ 853.9       $ 716.2       $ 1,513.3   

Gross margin

     353.7         311.2         235.4         637.1   

Net income

     82.5         70.7         34.9         171.8   
  

 

 

    

 

 

    

 

 

    

 

 

 

Earnings per share – basic

   $ 0.96       $ 0.86       $ 0.43       $ 2.13   

                                      – diluted

   $ 0.96       $ 0.85       $ 0.43       $ 2.12   
  

 

 

    

 

 

    

 

 

    

 

 

 
Principal Accounting Policies - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Segment
Feb. 2, 2013
Jan. 28, 2012
Principal Accounting Policies [Line Items]
 
 
 
Number of reportable segments
 
 
Revenue from sale over deferred period
14 years 
 
 
Revenue recognized in relation to cost incurred
45.00% 
46.00% 
 
Revenue recognized in relation to the costs expected to be incurred, period
2 years 
 
 
Gross advertising costs
$ 253.8 
$ 245.8 
$ 208.6 
Minimum accrued interest suspension period
90 days 
 
 
Allowance on losses
100.00% 
 
 
Maturity of allowance 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
 
 
 
Principal Accounting Policies [Line Items]
 
 
 
Period over which amortization is charged for capitalized payroll for internal use computer project
3 years 
 
 
Maximum
 
 
 
Principal Accounting Policies [Line Items]
 
 
 
Period over which amortization is charged for capitalized payroll for internal use computer project
5 years 
 
 
Buildings, Owned Land |
Minimum
 
 
 
Principal Accounting Policies [Line Items]
 
 
 
Property and equipment, estimated useful lives, (in years)
30 years 
 
 
Buildings, Owned Land |
Maximum
 
 
 
Principal Accounting Policies [Line Items]
 
 
 
Property and equipment, estimated useful lives, (in years)
40 years 
 
 
Buildings, Leased Land |
Maximum
 
 
 
Principal Accounting Policies [Line Items]
 
 
 
Property and equipment, estimated useful lives, (in years)
40 years 
 
 
Leasehold Improvements |
Maximum
 
 
 
Principal Accounting Policies [Line Items]
 
 
 
Property and equipment, estimated useful lives, (in years)
10 years 
 
 
Furniture and Fixtures |
Minimum
 
 
 
Principal Accounting Policies [Line Items]
 
 
 
Property and equipment, estimated useful lives, (in years)
3 years 
 
 
Furniture and Fixtures |
Maximum
 
 
 
Principal Accounting Policies [Line Items]
 
 
 
Property and equipment, estimated useful lives, (in years)
10 years 
 
 
Equipment Including Software |
Minimum
 
 
 
Principal Accounting Policies [Line Items]
 
 
 
Property and equipment, estimated useful lives, (in years)
3 years 
 
 
Equipment Including Software |
Maximum
 
 
 
Principal Accounting Policies [Line Items]
 
 
 
Property and equipment, estimated useful lives, (in years)
5 years 
 
 
Segment Information - Additional Information (Detail)
12 Months Ended
Feb. 1, 2014
Segment
Segment Reporting Information [Line Items]
 
Number of geographic operating segments managed
Segment Reporting Information, by Segment (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Feb. 1, 2014
Nov. 2, 2013
Aug. 3, 2013
May 4, 2013
Feb. 2, 2013
Oct. 27, 2012
Jul. 28, 2012
Apr. 28, 2012
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total sales
$ 1,564.0 
$ 771.4 
$ 880.2 
$ 993.6 
$ 1,513.3 
$ 716.2 
$ 853.9 
$ 900.0 
$ 4,209.2 
$ 3,983.4 
$ 3,749.2 
Total operating income
 
 
 
 
 
 
 
 
570.5 
560.5 
507.4 
Total depreciation and amortization
 
 
 
 
 
 
 
 
110.2 
99.4 
92.4 
Total capital additions
 
 
 
 
 
 
 
 
152.7 
134.2 
97.8 
Total assets
4,029.2 
 
 
 
3,719.0 
 
 
 
4,029.2 
3,719.0 
3,611.4 
Total long-lived assets
514.4 
 
 
 
455.0 
 
 
 
514.4 
455.0 
383.4 
Total liabilities
1,466.1 
 
 
 
1,389.1 
 
 
 
1,466.1 
1,389.1 
1,332.3 
Operating Segments
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total sales
 
 
 
 
 
 
 
 
4,209.2 
3,983.4 
3,749.2 
Operating Segments |
US
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total sales
 
 
 
 
 
 
 
 
3,517.6 
3,273.9 
3,034.1 
Total operating income
 
 
 
 
 
 
 
 
553.2 
547.8 
478.0 
Total depreciation and amortization
 
 
 
 
 
 
 
 
88.8 
75.9 
69.0 
Total capital additions
 
 
 
 
 
 
 
 
134.2 
110.9 
75.6 
Total assets
3,311.0 
 
 
 
2,979.2 
 
 
 
3,311.0 
2,979.2 
2,747.5 
Total long-lived assets
423.6 
 
 
 
377.5 
 
 
 
423.6 
377.5 
305.8 
Total liabilities
1,299.3 
 
 
 
1,243.4 
 
 
 
1,299.3 
1,243.4 
1,166.3 
Operating Segments |
UNITED KINGDOM
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total sales
 
 
 
 
 
 
 
 
685.6 
709.5 
715.1 
Total operating income
 
 
 
 
 
 
 
 
42.4 
40.0 
56.1 
Total depreciation and amortization
 
 
 
 
 
 
 
 
21.4 
23.5 
23.4 
Total capital additions
 
 
 
 
 
 
 
 
18.4 
23.1 
22.2 
Total assets
484.6 
 
 
 
449.9 
 
 
 
484.6 
449.9 
427.3 
Total long-lived assets
81.1 
 
 
 
76.8 
 
 
 
81.1 
76.8 
77.0 
Total liabilities
139.3 
 
 
 
116.9 
 
 
 
139.3 
116.9 
146.2 
Operating Segments |
Other
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total sales
 
 
 
 
 
 
 
 
6.0 
 
 
Total operating income
 
 
 
 
 
 
 
 
(25.1)
(27.3)
(26.7)
Total capital additions
 
 
 
 
 
 
 
 
0.1 
0.2 
 
Total assets
233.6 
 
 
 
289.9 
 
 
 
233.6 
289.9 
436.6 
Total long-lived assets
9.7 
 
 
 
0.7 
 
 
 
9.7 
0.7 
0.6 
Total liabilities
$ 27.5 
 
 
 
$ 28.8 
 
 
 
$ 27.5 
$ 28.8 
$ 19.8 
Sales by Product (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Feb. 1, 2014
Nov. 2, 2013
Aug. 3, 2013
May 4, 2013
Feb. 2, 2013
Oct. 27, 2012
Jul. 28, 2012
Apr. 28, 2012
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Revenue Product Segment [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total sales
$ 1,564.0 
$ 771.4 
$ 880.2 
$ 993.6 
$ 1,513.3 
$ 716.2 
$ 853.9 
$ 900.0 
$ 4,209.2 
$ 3,983.4 
$ 3,749.2 
Diamonds And Diamond Jewelry
 
 
 
 
 
 
 
 
 
 
 
Revenue Product Segment [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total sales
 
 
 
 
 
 
 
 
2,552.1 
2,410.7 
2,183.3 
Gold Silver Jewelry Other Products And Services
 
 
 
 
 
 
 
 
 
 
 
Revenue Product Segment [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total sales
 
 
 
 
 
 
 
 
1,236.9 
1,116.5 
1,133.5 
Watches
 
 
 
 
 
 
 
 
 
 
 
Revenue Product Segment [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total sales
 
 
 
 
 
 
 
 
$ 420.2 
$ 456.2 
$ 432.4 
Other Operating Income (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Components of Other Operating Income [Line Items]
 
 
 
Interest income from in-house customer finance programs
$ 186.4 
$ 159.7 
$ 125.4 
Other
0.3 
1.7 
1.1 
Other operating income, net
$ 186.7 
$ 161.4 
$ 126.5 
Compensation And Benefits (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Compensation and benefits
 
 
 
Wages and salaries
$ 753.3 
$ 713.4 
$ 681.5 
Payroll taxes
65.8 
62.6 
59.3 
Employee benefit plans expense
10.2 
12.9 
11.3 
Share-based compensation expense
14.4 
15.7 
17.0 
Total compensation and benefits
$ 843.7 
$ 804.6 
$ 769.1 
Tax Expense By Jurisdiction (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Income before income taxes:
 
 
 
Income before income taxes, US
$ 493.7 
$ 494.3 
$ 423.2 
Income before income taxes, Foreign
72.8 
62.6 
78.9 
(Loss) income before income taxes
566.5 
556.9 
502.1 
Current taxation:
 
 
 
Current taxation, US
211.8 
186.6 
136.9 
Current taxation, Foreign
7.1 
6.1 
11.5 
Deferred taxation:
 
 
 
Deferred taxation, US
(22.8)
3.1 
26.1 
Deferred taxation, Foreign
2.4 
1.2 
3.2 
Total income taxes
$ 198.5 
$ 197.0 
$ 177.7 
Income Taxes - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Jan. 28, 2011
Income Tax Disclosure [Abstract]
 
 
 
 
Statutory rate of corporation tax in Bermuda
0.00% 
 
 
 
Foreign gross capital loss carry forwards
$ 74.2 
$ 71.0 
 
 
Change in valuation allowance
0.7 
3.6 
1.5 
 
Unrecognized tax benefits
4.6 
4.5 
4.8 
9.0 
Interest recognized in income tax expense
0.1 
(0.2)
(0.1)
 
Accrued interest related to unrecognized tax benefits
$ 0.3 
$ 0.2 
$ 0.4 
 
US
 
 
 
 
Income Tax Disclosure [Abstract]
 
 
 
 
Tax years subject to examination
Tax years after November 1, 2008 
 
 
 
UNITED KINGDOM
 
 
 
 
Income Tax Disclosure [Abstract]
 
 
 
 
Tax years subject to examination
Tax years after January 31, 2012 
 
 
 
Reconciliation Of Effective Tax Rate (Detail)
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Effective Income Tax Rate Reconciliation, Percent [Abstract]
 
 
 
US federal income tax rates
35.00% 
35.00% 
35.00% 
US state income taxes
2.50% 
2.70% 
2.70% 
Differences between US federal and foreign statutory income tax rates
(0.90%)
(0.60%)
(1.00%)
Expenditures permanently disallowable for tax purposes, net of permanent tax benefits
0.60% 
0.80% 
1.10% 
Benefit of intra-group financing and services arrangements
(2.10%)
(2.10%)
(2.00%)
Other items
(0.10%)
(0.40%)
(0.40%)
Effective tax rate
35.00% 
35.40% 
35.40% 
Deferred Tax Assets And Liabilities (Detail) (USD $)
In Millions, unless otherwise specified
Feb. 1, 2014
Feb. 2, 2013
Components of Deferred Tax Assets and Liabilities [Abstract]
 
 
Allowances for doubtful debts, Assets
$ 39.7 
$ 36.6 
Revenue deferral, Assets
134.3 
122.4 
Value of foreign capital losses, Assets
15.8 
16.5 
Total gross deferred tax asset
271.7 
249.2 
Valuation allowance, Asset
(16.8)
(17.5)
Deferred tax asset
254.9 
231.7 
Derivative instruments, Liabilities
   
   
Total gross deferred tax liability
(251.3)
(255.6)
Deferred tax liability
(251.3)
(255.6)
Allowances for doubtful debts, Total
39.7 
36.6 
Revenue deferral (extended service plans), Total
134.3 
122.4 
Derivative instruments, Total
6.9 
 
Value of foreign capital losses, Total
15.8 
16.5 
Total gross deferred tax asset/(liability), Total
20.4 
(6.4)
Valuation allowance, Total
(16.8)
(17.5)
Deferred tax asset/(liability), Total
3.6 
(23.9)
Current assets
3.0 
1.6 
Current liabilities
(113.1)
(129.6)
Non-current assets
113.7 
104.1 
Deferred tax asset/(liability), Total
3.6 
(23.9)
US
 
 
Components of Deferred Tax Assets and Liabilities [Abstract]
 
 
Property, plant and equipment, Liabilities
(70.1)
(55.8)
Property, plant and equipment, Total
(70.1)
(55.8)
Foreign
 
 
Components of Deferred Tax Assets and Liabilities [Abstract]
 
 
Property, plant and equipment, Assets
7.0 
6.7 
Property, plant and equipment, Total
7.0 
6.7 
Included In Income Taxes
 
 
Components of Deferred Tax Assets and Liabilities [Abstract]
 
 
Straight line lease payments, Assets
27.5 
26.8 
Deferred compensation, Assets
9.9 
7.7 
Share-based compensation, Assets
10.3 
10.7 
US state income tax accruals, Assets
5.3 
5.6 
Other temporary differences, Assets
15.0 
16.2 
Inventory valuation, Liabilities
(169.2)
(188.6)
Retirement benefit obligations, Liabilities
(12.0)
(11.2)
Inventory valuation, Total
(169.2)
(188.6)
Straight line lease payments, Total
27.5 
26.8 
Deferred compensation, Total
9.9 
7.7 
Retirement benefit obligations, Total
(12.0)
(11.2)
Share-based compensation, Total
10.3 
10.7 
US state income tax accruals, Total
5.3 
5.6 
Other temporary differences, Total
$ 15.0 
$ 16.2 
Earnings Per Share, Basic And Diluted (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Feb. 1, 2014
Nov. 2, 2013
Aug. 3, 2013
May 4, 2013
Feb. 2, 2013
Oct. 27, 2012
Jul. 28, 2012
Apr. 28, 2012
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Earnings Per Share [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Net income
$ 175.2 
$ 33.6 
$ 67.4 
$ 91.8 
$ 171.8 
$ 34.9 
$ 70.7 
$ 82.5 
$ 368.0 
$ 359.9 
$ 324.4 
Basic weighted average number of shares outstanding
 
 
 
 
 
 
 
 
80.2 
82.3 
86.2 
Dilutive effect of share awards
 
 
 
 
 
 
 
 
0.5 
0.5 
0.8 
Diluted weighted average number of shares outstanding
 
 
 
 
 
 
 
 
80.7 
82.8 
87.0 
Earnings per share - basic
$ 2.20 
$ 0.42 
$ 0.84 
$ 1.14 
$ 2.13 
$ 0.43 
$ 0.86 
$ 0.96 
$ 4.59 
$ 4.37 
$ 3.76 
Earnings per share - diluted
$ 2.18 
$ 0.42 
$ 0.84 
$ 1.13 
$ 2.12 
$ 0.43 
$ 0.85 
$ 0.96 
$ 4.56 
$ 4.35 
$ 3.73 
Earnings Per Share - Additional Information (Detail)
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Earnings Per Share [Abstract]
 
 
 
Effect of treasury shares and non-vested restricted stock excluded from basic weighted average number of shares outstanding
6,961,632 
4,882,625 
576,427 
Anti-dilutive shares excluded from the calculation of earnings per share
70,447 
192,374 
375,071 
Payment Of Dividends (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Dividends, Cash [Abstract]
 
 
 
Cash dividend per share
$ 0.60 
$ 0.48 
$ 0.20 
Total dividents
$ 48.2 
$ 39.5 
$ 17.4 
First Quarter Dividend
 
 
 
Dividends, Cash [Abstract]
 
 
 
Cash dividend per share
$ 0.15 
$ 0.12 
 
Total dividents
12.1 
10.3 
 
Second Quarter Dividend
 
 
 
Dividends, Cash [Abstract]
 
 
 
Cash dividend per share
$ 0.15 
$ 0.12 
 
Total dividents
12.1 
9.6 
 
Third Quarter Dividend
 
 
 
Dividends, Cash [Abstract]
 
 
 
Cash dividend per share
$ 0.15 
$ 0.12 
$ 0.10 
Total dividents
12.0 
9.8 
8.7 
Fourth Quarter Dividend
 
 
 
Dividends, Cash [Abstract]
 
 
 
Cash dividend per share
$ 0.15 1
$ 0.12 1
$ 0.10 1
Total dividents
$ 12.0 1 2
$ 9.8 1 2
$ 8.7 1
Payment Of Dividends (Parenthetical) (Detail) (USD $)
In Millions, unless otherwise specified
Feb. 1, 2014
Feb. 2, 2013
Dividends, Cash [Abstract]
 
 
Other current liabilities reflecting dividend
$ 12.0 
$ 9.8 
Dividends - Additional Information (Detail) (Common Shares, USD $)
12 Months Ended
Feb. 1, 2014
Common Shares
 
Dividends Payable [Line Items]
 
Dividend value per share
$ 0.18 
Dividend declared date
Mar. 26, 2014 
Dividend payable date
May 28, 2014 
Dividend record date
May 02, 2014 
Ex-dividend date
Apr. 30, 2014 
Changes in Accumulated OCI by Component and Reclassifications Out of Accumulated OCI (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Beginning balance
$ (175.7)
$ (159.2)
$ (170.8)
OCI before reclassifications
(10.1)
(3.3)
26.5 
Amounts reclassified from accumulated OCI
7.3 
(13.2)
(14.9)
After-tax amount, Total other comprehensive (loss) income
(2.8)
(16.5)
11.6 
Ending balance
(178.5)
(175.7)
(159.2)
Foreign currency translation
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Beginning balance
(149.4)
(148.9)
(145.0)
OCI before reclassifications
12.4 
(0.5)
(3.9)
After-tax amount, Total other comprehensive (loss) income
12.4 
(0.5)
(3.9)
Ending balance
(137.0)
(149.4)
(148.9)
Gains (losses) on cash flow hedges
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Beginning balance
1.0 
22.1 
5.9 
OCI before reclassifications
(22.0)
(6.7)
32.2 
Amounts reclassified from accumulated OCI
6.7 
(14.4)
(16.0)
After-tax amount, Total other comprehensive (loss) income
(15.3)
(21.1)
16.2 
Ending balance
(14.3)
1.0 
22.1 
Pension Plans |
Accumulated Defined Benefit Plans Adjustment Actuarial Net Gain Loss
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Beginning balance
(44.4)
(51.5)
(46.0)
OCI before reclassifications
0.2 
4.7 
(7.3)
Amounts reclassified from accumulated OCI
1.7 
2.4 
1.8 
After-tax amount, Total other comprehensive (loss) income
1.9 
7.1 
(5.5)
Ending balance
(42.5)
(44.4)
(51.5)
Pension Plans |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Cost (Credit)
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Beginning balance
17.1 
19.1 
14.3 
OCI before reclassifications
(0.7)
(0.8)
5.5 
Amounts reclassified from accumulated OCI
(1.1)
(1.2)
(0.7)
After-tax amount, Total other comprehensive (loss) income
(1.8)
(2.0)
4.8 
Ending balance
$ 15.3 
$ 17.1 
$ 19.1 
Reclassification Activity by Individual Accumulated OCI Component (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
(Gains) losses on cash flow hedges reclassification, before tax
$ 11.1 
$ (22.4)
$ (24.6)
(Gains) losses on cash flow hedges reclassification, tax expense
(4.4)
8.0 
8.6 
(Gains) losses on cash flow hedges reclassification, net of tax
6.7 
(14.4)
(16.0)
Defined benefit plan reclassification, before tax
0.8 
1.6 
1.6 
Defined benefit plan reclassification, tax expense
(0.2)
(0.4)
(0.5)
Defined benefit plan reclassification, net of tax
0.6 
1.2 
1.1 
Total reclassifications, net of tax
7.3 
(13.2)
(14.9)
Foreign Exchange Contract |
Cost of Sales
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
(Gains) losses on cash flow hedges reclassification, before tax
(0.9)
(0.4)
(0.1)
Commodity Contract |
Cost of Sales
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
(Gains) losses on cash flow hedges reclassification, before tax
12.0 
(22.0)
(24.5)
Prior Service Credit |
Selling, General and Administrative Expenses
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
Defined benefit plan reclassification, before tax
(1.5)1
(1.6)1
(1.0)1
Pension Plan Actuarial (Losses)/Gains |
Selling, General and Administrative Expenses
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
Defined benefit plan reclassification, before tax
$ 2.3 1
$ 3.2 1
$ 2.6 1
Cash and Cash Equivalents (Detail) (USD $)
In Millions, unless otherwise specified
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Jan. 28, 2011
Cash and Cash Equivalents [Line Items]
 
 
 
 
Total cash and cash equivalents
$ 247.6 
$ 301.0 
$ 486.8 
$ 302.1 
Money Market and Other Funds
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Total cash and cash equivalents
225.3 
276.6 
 
 
Third Party Credit Card Issuers
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Total cash and cash equivalents
21.1 
23.2 
 
 
Cash On Hand
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Total cash and cash equivalents
$ 1.2 
$ 1.2 
 
 
Accounts Receivable, net - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Feb. 1, 2014
Other Accounts Receivable
Feb. 2, 2013
Other Accounts Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Percentage allowance on losses
100.00% 
 
 
Losses allowance maturity period
90 days 
 
 
Finance receivable age
90 days 
 
 
Gross accounts receivable
 
$ 12.8 
$ 13.0 
Valuation of allowance
 
$ 0.3 
$ 0.6 
Accounts Receivable by Portfolio Segment, Net (Detail) (USD $)
In Millions, unless otherwise specified
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Total accounts receivable, net
$ 1,374.0 
$ 1,205.3 
 
US Customer In-House Finance Receivables
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Total accounts receivable, net
1,356.0 
1,192.9 
1,077.4 
Other Accounts Receivable
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Total accounts receivable, net
$ 18.0 
$ 12.4 
 
Allowance for Credit Losses On US Customer In-House Finance Receivables (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Financing Receivable, Allowance for Credit Losses [Line Items]
 
 
 
Ending balance
$ (97.8)
$ (87.7)
$ (78.1)
Ending receivable balance evaluated for impairment
1,453.8 
1,280.6 
1,155.5 
Accounts receivable, net
1,374.0 
1,205.3 
 
US Customer In-House Finance Receivables
 
 
 
Financing Receivable, Allowance for Credit Losses [Line Items]
 
 
 
Beginning balance
(87.7)
(78.1)
(67.8)
Charge-offs
128.2 
112.8 
92.8 
Recoveries
26.0 
21.8 
19.3 
Provision
(164.3)
(144.2)
(122.4)
Ending balance
(97.8)
(87.7)
(78.1)
Ending receivable balance evaluated for impairment
1,453.8 
1,280.6 
1,155.5 
Accounts receivable, net
$ 1,356.0 
$ 1,192.9 
$ 1,077.4 
Credit Quality Indicator and Age Analysis of Past Due US Customer In-House Finance Receivables (Detail) (USD $)
In Millions, unless otherwise specified
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Financing Receivable, Allowance for Credit Losses [Line Items]
 
 
 
Gross, Value
$ 1,453.8 
$ 1,280.6 
$ 1,155.5 
Valuation Allowance, Value
(97.8)
(87.7)
(78.1)
Gross, Percentage
100.00% 
100.00% 
100.00% 
Valuation Allowance, Percentage
6.70% 
6.80% 
6.80% 
Performing Financing Receivable
 
 
 
Financing Receivable, Allowance for Credit Losses [Line Items]
 
 
 
Gross, Percentage
96.30% 
96.40% 
96.30% 
Valuation Allowance, Percentage
3.20% 
3.30% 
3.20% 
Performing Financing Receivable |
Current |
Aged 0-30 Days
 
 
 
Financing Receivable, Allowance for Credit Losses [Line Items]
 
 
 
Gross, Value
1,170.4 
1,030.3 
932.6 
Valuation Allowance, Value
(36.3)
(33.8)
(28.9)
Performing Financing Receivable |
Past Due |
Aged 31 - 90 Days
 
 
 
Financing Receivable, Allowance for Credit Losses [Line Items]
 
 
 
Gross, Value
229.9 
203.9 
180.2 
Valuation Allowance, Value
(8.0)
(7.5)
(6.5)
Nonperforming Financing Receivable
 
 
 
Financing Receivable, Allowance for Credit Losses [Line Items]
 
 
 
Gross, Percentage
3.70% 
3.60% 
3.70% 
Valuation Allowance, Percentage
100.00% 
100.00% 
100.00% 
Nonperforming Financing Receivable |
Past Due |
Aged More Than 90 Days
 
 
 
Financing Receivable, Allowance for Credit Losses [Line Items]
 
 
 
Gross, Value
53.5 
46.4 
42.7 
Valuation Allowance, Value
$ (53.5)
$ (46.4)
$ (42.7)
Inventories - Additional Information (Detail) (Consignment Inventory, USD $)
In Millions, unless otherwise specified
Feb. 1, 2014
Feb. 2, 2013
Consignment Inventory
 
 
Inventories
 
 
Consignment inventory
$ 312.6 
$ 227.7 
Inventories (Detail) (USD $)
In Millions, unless otherwise specified
Feb. 1, 2014
Feb. 2, 2013
Inventories
 
 
Raw materials
$ 41.8 
$ 41.2 
Finished goods
1,446.2 
1,355.8 
Inventories
$ 1,488.0 
$ 1,397.0 
Inventory Reserves (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Inventories
 
 
 
Inventory Reserves, Balance at beginning of period
$ 23.4 
$ 29.3 
$ 27.8 
Charged to profit
33.3 
23.6 
18.4 
Utilized
(40.4)1
(29.5)1
(16.9)1
Inventory Reserves, Balance at end of period
$ 16.3 
$ 23.4 
$ 29.3 
Other Assets (Detail) (USD $)
In Millions, unless otherwise specified
Feb. 1, 2014
Feb. 2, 2013
Other Assets
 
 
Deferred extended service plan costs
$ 61.9 
$ 56.9 
Goodwill
26.8 
24.6 
Other assets
25.3 
18.4 
Total other assets
$ 114.0 
$ 99.9 
Summary of Goodwill by Reporting Unit (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Goodwill [Line Items]
 
 
Beginning balance
$ 24.6 
 
Acquisition
2.2 1
24.6 1
Ending balance
26.8 
24.6 
US
 
 
Goodwill [Line Items]
 
 
Beginning balance
24.6 
 
Acquisition
(1.4)1
24.6 1
Ending balance
23.2 
24.6 
Other
 
 
Goodwill [Line Items]
 
 
Acquisition
3.6 1
 
Ending balance
$ 3.6 
 
Property, Plant and Equipment, Net (Detail) (USD $)
In Millions, unless otherwise specified
Feb. 1, 2014
Feb. 2, 2013
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 1,275.7 
$ 1,154.5 
Accumulated depreciation and amortization
(788.1)
(724.1)
Property, plant and equipment, net
487.6 
430.4 
Land and Building
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
37.2 
32.5 
Leasehold Improvements
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
461.4 
419.3 
Furniture and Fixtures
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
537.3 
503.4 
Equipment, Including Software
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
221.1 
183.8 
Construction In Progress
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 18.7 
$ 15.5 
Property Plant and Equipment Net - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Property, Plant and Equipment [Line Items]
 
 
 
Depreciation and amortization expense
$ 110.2 
$ 99.4 
$ 92.4 
Impairment of assets
$ 0.7 
$ 2.6 
$ 1.4 
Acquisitions - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Nov. 4, 2013
Botswana Diamond Polishing Factory Acquisition
Feb. 1, 2014
Botswana Diamond Polishing Factory Acquisition
May 15, 2013
Ultra Acquisition
Oct. 29, 2012
Ultra Acquisition
Feb. 1, 2014
Ultra Acquisition
Feb. 2, 2013
Ultra Acquisition
Oct. 29, 2012
Ultra Acquisition
Initial
May 15, 2013
Ultra Acquisition
Final Payment
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
Total consideration
 
 
$ 9.1 
 
 
 
 
 
 
 
Property, plant and equipment acquired
 
 
5.5 
 
 
 
 
 
 
 
Goodwill acquired
2.2 1
24.6 1
3.6 
 
 
 
 
 
 
 
Business acquisition cash paid, initial
 
 
 
9.1 
 
 
(1.4)
56.7 
56.7 
55.3 
Business acquisition, cash acquired
 
 
 
 
 
1.5 
 
 
 
 
Business acquisition, working capital adjustment
 
 
 
 
 
1.4 
 
 
 
 
Refund from the initial consideration paid
 
 
 
 
1.4 
 
 
 
 
 
Acquisition-related expenses
 
 
 
 
 
$ 3.0 
 
 
 
 
Purchase Price Allocation to Net Assets Acquired (Detail) (USD $)
In Millions, unless otherwise specified
1 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Oct. 29, 2012
Initial Allocation
Oct. 29, 2012
Final Allocation
May 15, 2013
Change
Recognized amounts of assets acquired and liabilities assumed:
 
 
 
 
 
Inventories
 
 
$ 43.3 
$ 43.3 
 
Other current assets, excluding cash acquired
 
 
3.3 
3.3 
 
Property and equipment
 
 
12.1 
12.1 
 
Other assets
 
 
0.3 
0.3 
 
Current liabilities
 
 
(19.5)
(19.5)
 
Other liabilities
 
 
(7.4)
(7.4)
 
Fair value of net assets acquired
 
 
32.1 
32.1 
 
Goodwill
26.8 
24.6 
24.6 1
23.2 1
 
Total consideration
 
 
56.7 
55.3 
 
Goodwill
 
 
 
 
(1.4)1
Total consideration
 
 
 
 
$ (1.4)
Accrued Expenses and Other Current Liabilities (Detail) (USD $)
In Millions, unless otherwise specified
Feb. 1, 2014
Feb. 2, 2013
Accrued Expenses and Other Current Liabilities
 
 
Accrued compensation
$ 81.3 
$ 85.9 
Other liabilities
50.1 
48.7 
Other taxes
31.7 
31.9 
Payroll taxes
8.0 
7.4 
Accrued expenses
157.4 
152.5 
Total accrued expenses and other current liabilities
$ 328.5 
$ 326.4 
Sales Return Reserve (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Accrued Expenses and Other Current Liabilities [Line Items]
 
 
 
Sales returns reserve, Balance at beginning of period
$ 7.6 
$ 7.3 
$ 7.7 
Sales returns reserve, net adjustment
0.8 1
0.3 1
(0.4)1
Sales returns reserve, Balance at end of period
$ 8.4 
$ 7.6 
$ 7.3 
Accrued Expenses and Other Current Liabilities - Additional Information (Detail)
12 Months Ended
Feb. 1, 2014
Accrued Expenses and Other Current Liabilities [Line Items]
 
Lifetime diamond guarantee inspection period
6 months 
Warranty Reserve Included within Accrued Expenses and Other Liabilities Non-Current (Detail) (Warranty Reserves, USD $)
In Millions, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Warranty Reserves
 
 
 
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
 
 
 
Balance at beginning of period
$ 18.5 
$ 15.1 
$ 13.0 
Warranty expense
7.4 
8.6 
7.9 
Utilized
(6.8)
(5.2)
(5.8)
Balance at end of period
$ 19.1 
$ 18.5 
$ 15.1 
Warranty Reserves (Detail) (Warranty Reserves, USD $)
In Millions, unless otherwise specified
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Jan. 28, 2011
Warranty Reserves
 
 
 
 
Product Warranty Accrual, Balance Sheet Classification [Abstract]
 
 
 
 
Current liabilities
$ 6.7 1
$ 6.9 1
 
 
Non-current liabilities (see Note 17)
12.4 
11.6 
 
 
Total warranty reserve
$ 19.1 
$ 18.5 
$ 15.1 
$ 13.0 
Deferred Revenue (Detail) (USD $)
In Millions, unless otherwise specified
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Jan. 28, 2011
Deferred Revenue Arrangement [Line Items]
 
 
 
 
ESP deferred revenue
$ 601.2 
$ 549.7 
$ 511.7 
$ 481.1 
Voucher promotions and other
15.5 
15.9 
 
 
Total deferred revenue
616.7 
565.6 
 
 
Deferred revenue, current liabilities
173.0 
159.7 
 
 
Deferred revenue, non-current liabilities
443.7 
405.9 
 
 
Total deferred revenue
$ 616.7 
$ 565.6 
 
 
Warranty Deferred Revenue (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Deferred Revenue [Line Items]
 
 
 
ESP deferred revenue, beginning of period
$ 549.7 
$ 511.7 
$ 481.1 
Plans sold
223.3 
205.1 
187.0 
Revenue recognized
(171.8)
(167.1)
(156.4)
ESP deferred revenue, end of period
$ 601.2 
$ 549.7 
$ 511.7 
Other Liabilities - Non - Current (Detail) (USD $)
In Millions, unless otherwise specified
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Other Liabilities Non-current
 
 
 
Straight-line rent
$ 67.1 
$ 65.6 
 
Deferred compensation
25.0 
18.5 
 
Warranty reserve
12.4 
11.6 
 
Lease loss reserve
5.8 
8.1 
9.6 
Other liabilities
11.4 
7.5 
 
Total other liabilities
$ 121.7 
$ 111.3 
 
Lease Loss Reserve (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Other Liabilities Non-current
 
 
Lease loss reserve, at beginning of period
$ 8.1 
$ 9.6 
Adjustments, net
(1.6)
(1.1)
Utilization
(0.7)1
(0.4)1
Lease loss reserve, at end of period
$ 5.8 
$ 8.1 
Loans, Overdrafts and Long-Term Debt (Detail) (USD $)
In Millions, unless otherwise specified
Feb. 1, 2014
Feb. 2, 2013
Current liabilities - loans and overdrafts
 
 
Revolving credit facility
   
   
Bank overdrafts
19.3 
Total loans and overdrafts
$ 19.3 
 
Loans, Overdrafts and Long-Term Debt - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended 1 Months Ended 12 Months Ended 12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
May 24, 2011
Revolving Credit Facility
Feb. 1, 2014
Revolving Credit Facility
Feb. 2, 2013
Revolving Credit Facility
Feb. 1, 2014
Revolving Credit Facility
Minimum
Feb. 1, 2014
Revolving Credit Facility
Maximum
Jan. 28, 2012
Revolving Credit Facility
US Private Placement
Feb. 1, 2014
Letter of Credit
Feb. 1, 2014
Financial Standby Letter of Credit
Feb. 2, 2013
Financial Standby Letter of Credit
Feb. 1, 2014
New Revolving Credit Facility
Feb. 2, 2013
New Revolving Credit Facility
Jan. 28, 2012
2008 Facility
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit facility, maximum borrowing capacity
$ 400 
 
 
$ 400 
 
 
 
 
 
$ 100 
 
 
 
 
 
Debt instrument, maturity period
 
 
 
5 years 
5 years 
 
 
 
 
5 years 
 
 
 
 
 
Credit facility, increase
 
 
 
 
 
 
 
 
 
200 
 
 
 
 
 
Debt instrument, maturity date
 
 
 
 
May 2016 
 
 
 
 
 
 
 
 
 
 
Commitment fee rates
 
 
 
 
 
 
0.20% 
0.35% 
 
 
 
 
 
 
 
Debt instruments, face value
 
 
 
 
 
 
 
 
 
10 
 
 
 
 
 
Leverage ratio
250.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charge coverage ratio
140.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings from the facility
 
 
 
 
 
 
 
 
10.1 
9.5 
 
 
 
Bank overdraft
19.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capitalized amendment fees and other related costs
 
 
 
 
2.1 
2.1 
 
 
 
 
 
 
 
 
 
Accumulated amortization of financing cost
 
 
 
 
 
 
 
 
 
 
 
 
1.2 
0.8 
 
Capitalized balance amortized during the year
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.2 
Capitalized amendment fees and other related costs charged to income statement
0.4 
0.4 
1.9 
 
0.4 
0.4 
 
 
1.9 
 
 
 
 
 
 
Capitalized balance written-off
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1.3 
Financial Instruments and Fair Value - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended 1 Months Ended 12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Feb. 1, 2014
Maximum
Feb. 1, 2014
Foreign Exchange Contract
Not Designated as Hedging Instrument
Feb. 2, 2013
Foreign Exchange Contract
Not Designated as Hedging Instrument
May 24, 2011
Revolving Credit Facility
Feb. 1, 2014
Revolving Credit Facility
Feb. 1, 2014
Cash Flow Hedging
Feb. 1, 2014
Cash Flow Hedging
Foreign Exchange Contract
Feb. 2, 2013
Cash Flow Hedging
Foreign Exchange Contract
Feb. 1, 2014
Cash Flow Hedging
Commodity Contract
Feb. 2, 2013
Cash Flow Hedging
Commodity Contract
Financial Instruments and Fair Value [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Amount of agreement in place for senior unsecured multi-currency five-year revolving credit external funding
$ 400 
 
 
 
 
$ 400 
 
 
 
 
 
 
Debt instrument, maturity period
 
 
 
 
 
5 years 
5 years 
 
 
 
 
 
Borrowings on unsecured senior revolving credit agreement
 
 
 
 
 
 
 
 
 
 
Total notional amount
 
 
 
22.1 
36.1 
 
 
 
42.3 
50.8 
63.0 
187.6 
Cash flow hedges settlement period
 
 
 
 
 
 
 
 
These contracts have been designated as cash flow hedges and will be settled over the next 12 months (February 2, 2013 12 months). 
 
These contracts have been designated as cash flow hedges and will be settled over the next 12 months (February 2, 2013 11 months). 
 
Contracts maturity period
 
 
12 months 
 
 
 
 
 
12 months 
12 months 
12 months 
11 months 
Derivative losses to be reclassified out of AOCI
 
 
 
 
 
 
 
$ 19.5 
 
 
 
 
Fair Value and Presentation of Derivative Instruments In Condensed Consolidated Balance Sheets (Detail) (USD $)
In Millions, unless otherwise specified
Feb. 1, 2014
Feb. 2, 2013
Derivatives, Fair Value [Line Items]
 
 
Total derivative assets
$ 1.0 
$ 3.8 
Total derivative liabilities
(2.9)
(4.6)
Designated as Hedging Instrument
 
 
Derivatives, Fair Value [Line Items]
 
 
Total derivative assets
0.8 
3.8 
Total derivative liabilities
(2.9)
(4.6)
Designated as Hedging Instrument |
Other Current Liabilities |
Foreign Exchange Contract
 
 
Derivatives, Fair Value [Line Items]
 
 
Total derivative liabilities
(2.1)
 
Designated as Hedging Instrument |
Other Current Liabilities |
Commodity Contract
 
 
Derivatives, Fair Value [Line Items]
 
 
Total derivative liabilities
(0.8)
(4.6)
Designated as Hedging Instrument |
Other Current Assets |
Foreign Exchange Contract
 
 
Derivatives, Fair Value [Line Items]
 
 
Total derivative assets
 
1.0 
Designated as Hedging Instrument |
Other Current Assets |
Commodity Contract
 
 
Derivatives, Fair Value [Line Items]
 
 
Total derivative assets
0.8 
2.8 
Not Designated as Hedging Instrument |
Other Current Assets |
Foreign Exchange Contract
 
 
Derivatives, Fair Value [Line Items]
 
 
Total derivative assets
$ 0.2 
 
Summary of Pre-Tax Gains (Losses) Recorded In Accumulated OCI for Derivatives (Detail) (Cash Flow Hedging, USD $)
In Millions, unless otherwise specified
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Pre-tax gains (losses) recorded in accumulated OCI
$ (21.1)
$ 0.8 
 
Foreign Exchange Contract
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Pre-tax gains (losses) recorded in accumulated OCI
(2.3)
1.3 
1.2 
Commodity Contract
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Pre-tax gains (losses) recorded in accumulated OCI
$ (18.8)1
$ (0.5)
$ 32.4 
Summary of Pre-Tax Gains (Losses) Recorded In Accumulated OCI for Derivatives (Parenthetical) (Detail) (Cash Flow Hedging, Commodity Contract, USD $)
In Millions, unless otherwise specified
Feb. 1, 2014
Cash Flow Hedging |
Commodity Contract
 
Derivative Instruments, Gain (Loss) [Line Items]
 
Accumulated Other Comprehensive Income Loss before Tax Related to Net Terminated Contracts
$ 18.2 
Effect of Derivative Instruments Designated as Cash Flow Hedges (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Cash Flow Hedging
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
(Losses) gains recorded in accumulated OCI, end of year
$ (21.1)
$ 0.8 
Cash Flow Hedging |
Foreign Exchange Contract
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
(Losses) gains recorded in accumulated OCI, beginning of year
1.3 
1.2 
Current period (losses) gains recognized in OCI
(2.7)
0.5 
(Losses) gains recorded in accumulated OCI, end of year
(2.3)
1.3 
Cash Flow Hedging |
Foreign Exchange Contract |
Cost of Sales
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
(Gains) losses reclassified from accumulated OCI to net income Cost of sales
(0.9)
(0.4)
Cash Flow Hedging |
Commodity Contract
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
(Losses) gains recorded in accumulated OCI, beginning of year
(0.5)
32.4 
Current period (losses) gains recognized in OCI
(30.3)1
(10.9)
(Losses) gains recorded in accumulated OCI, end of year
(18.8)2
(0.5)
Cash Flow Hedging |
Commodity Contract |
Cost of Sales
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
(Gains) losses reclassified from accumulated OCI to net income Cost of sales
12.0 
(22.0)
Not Designated as Hedging Instrument
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Amount of gain (loss) recognized in income on derivatives
(5.5)
 
Not Designated as Hedging Instrument |
Foreign Exchange Contract |
Other operating income, net
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Amount of gain (loss) recognized in income on derivatives
$ (5.5)
 
Effect of Derivative Instruments Designated as Cash Flow Hedges (Parenthetical) (Detail) (Cash Flow Hedging, Commodity Contract, USD $)
In Millions, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Cash Flow Hedging |
Commodity Contract
 
Derivative Instruments, Gain (Loss) [Line Items]
 
Losses related to change in fair value of commodity contracts terminated prior to contract maturity
$ 27.8 
Fair Value of Financial Instruments Held or Issued (Detail) (USD $)
In Millions, unless otherwise specified
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
 
Assets, Carrying Value
$ 4,029.2 
$ 3,719.0 
$ 3,611.4 
Liabilities, Carrying Value
(1,466.1)
(1,389.1)
(1,332.3)
Foreign Exchange Contract
 
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
 
Assets, Carrying Value
0.2 
1.0 
 
Liabilities, Carrying Value
(2.1)
 
 
Commodity Contract
 
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
 
Assets, Carrying Value
0.8 
2.8 
 
Liabilities, Carrying Value
(0.8)
(4.6)
 
Level 2 |
Foreign Exchange Contract
 
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
 
Assets, Fair Value
0.2 
1.0 
 
Liabilities, Fair Value
(2.1)
 
 
Level 2 |
Commodity Contract
 
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
 
Assets, Fair Value
0.8 
2.8 
 
Liabilities, Fair Value
$ (0.8)
$ (4.6)
 
Summary of Changes in Fair Value of Plan Assets (Detail) (UK Plan, USD $)
In Millions, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
UK Plan
 
 
Change in UK Plan assets:
 
 
Beginning Balance
$ 261.1 
$ 236.0 
Actual return on UK Plan assets
13.1 
22.1 
Employer contributions
4.9 
13.7 
Members' contributions
0.7 
0.5 
Benefits paid
(9.3)
(10.9)
Foreign currency changes
12.1 
(0.3)
Ending Balance
$ 282.6 
$ 261.1 
Summary of Funded Status of Plan (Detail) (UK Plan, USD $)
In Millions, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
UK Plan
 
 
 
Change in benefit obligation:
 
 
 
Benefit obligation at beginning of year
$ 212.6 
$ 204.5 
 
Service cost
2.4 
3.6 
4.8 
Past service cost
0.9 
1.1 
 
Interest cost
9.3 
9.5 
10.7 
Members' contributions
0.7 
0.5 
 
Actuarial loss (gain)
(0.1)
4.3 
 
Benefits paid
(9.3)
(10.9)
 
Foreign currency changes
9.8 
 
 
Benefit obligation at end of year
226.3 
212.6 
204.5 
Funded status at end of year: UK Plan assets less benefit obligation
$ 56.3 
$ 48.5 
 
Summary of Amounts Recognized in Balance Sheet (Detail) (USD $)
In Millions, unless otherwise specified
Feb. 1, 2014
Feb. 2, 2013
Amounts recognized in the balance sheet consist of:
 
 
Non-current assets
$ 56.3 
$ 48.5 
UK Plan
 
 
Amounts recognized in the balance sheet consist of:
 
 
Non-current assets
56.3 
48.5 
Non-current liabilities
   
   
Net asset recognized
$ 56.3 
$ 48.5 
Accumulated OCI Not Yet Recognized as Income (Expense) (Detail) (UK Plan, USD $)
In Millions, unless otherwise specified
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
UK Plan
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Net actuarial loss
$ (42.5)
$ (44.4)
$ (51.5)
Net prior service credit
$ 15.3 
$ 17.1 
$ 19.1 
Pension Plans - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
1 Months Ended 12 Months Ended
Apr. 1, 2011
Mar. 31, 2011
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Level 2
 
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
 
Fair value of plan assets
 
 
 
$ 188.3 
 
UK Plan
 
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
 
Estimated actuarial loss to be amortized from accumulated OCI into net periodic pension cost over the next fiscal year
 
 
2.0 
 
 
Estimated prior service credit to be amortized from accumulated OCI into net periodic pension cost over the next fiscal year
 
 
(1.7)
 
 
Accumulated benefit obligation
 
 
210.3 
197.5 
 
Fair value of plan assets
 
 
282.6 
261.1 
236.0 
Defined benefit plans, contribution
 
 
4.9 
13.7 
 
Defined benefit plan, expected contribution in the next fiscal year
 
 
4.2 
 
 
Defined Contribution Plan, Contribution Amount
 
 
1.0 
0.7 
0.6 
UK Plan |
Level 2
 
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
 
Fair value of plan assets
 
 
200.4 
188.3 
 
UK Plan |
Bonds
 
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
 
Actual plan asset target allocations
 
 
45.00% 
 
 
UK Plan |
Equities
 
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
 
Actual plan asset target allocations
 
 
15.00% 
 
 
Fair value of plan assets
 
 
41.0 
73.2 
 
UK Plan |
Equities |
Level 2
 
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
 
Fair value of plan assets
 
 
21.9 
38.3 
 
UK Plan |
Diversified Growth Funds
 
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
 
Actual plan asset target allocations
 
 
35.00% 
 
 
Fair value of plan assets
 
 
100.5 
51.2 
 
UK Plan |
Diversified Growth Funds |
Level 2
 
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
 
Fair value of plan assets
 
 
49.7 
24.9 
 
UK Plan |
Property
 
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
 
Actual plan asset target allocations
 
 
5.00% 
 
 
Fair value of plan assets
 
 
11.6 
10.4 
 
US Defined Contribution 401(k) plan
 
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
 
Defined Contribution Plan, Contribution Amount
 
 
7.1 
6.5 
5.4 
Percentage contribution by employer
50.00% 
25.00% 
50.00% 
 
 
Percentage of limited employee salary deferrals
6.00% 
 
6.00% 
 
 
Deferred compensation plan - US
 
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
 
Defined Contribution Cost Recognized
 
 
$ 2.4 
$ 2.1 
$ 2.2 
Components of Net Periodic Pension Cost and Other Amounts Recognized in OCI (Detail) (UK Plan, USD $)
In Millions, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
UK Plan
 
 
 
Components of net periodic pension cost:
 
 
 
Service cost
$ (2.4)
$ (3.6)
$ (4.8)
Interest cost
(9.3)
(9.5)
(10.7)
Expected return on UK Plan assets
13.0 
11.5 
13.8 
Amortization of unrecognized net prior service credit
1.5 
1.6 
1.0 
Amortization of unrecognized actuarial loss
(2.3)
(3.2)
(2.6)
Net periodic pension benefit (cost)
0.5 
(3.2)
(3.3)
Other changes in assets and benefit obligations recognized in OCI
0.1 
6.7 
(1.7)
Total recognized in net periodic pension benefit (cost) and OCI
$ 0.6 
$ 3.5 
$ (5.0)
Summary of Assumptions Used to Determine Benefit Obligations (Detail) (UK Plan)
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
UK Plan
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Discount rate, benefit obligations
4.40% 
4.50% 
Salary increases, benefit obligations
3.00% 
3.20% 
Discount rate, periodic pension costs
4.50% 
4.70% 
Expected return on UK Plan assets, periodic pension costs
5.00% 
4.75% 
Salary increases, periodic pension costs
3.20% 
3.20% 
Value and Classification Of Fair Value Of UK Plan Assets (Detail) (USD $)
In Millions, unless otherwise specified
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Level 2
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total
 
$ 188.3 
 
UK Plan
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total
282.6 
261.1 
236.0 
UK Plan |
Fair Value, Inputs, Level 1
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total
70.6 
62.4 
 
UK Plan |
Level 2
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total
200.4 
188.3 
 
UK Plan |
Fair Value, Inputs, Level 3
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total
11.6 
10.4 
10.3 
UK Plan |
Equities
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total
41.0 
73.2 
 
UK Plan |
Equities |
Fair Value, Inputs, Level 1
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total
19.1 
34.9 
 
UK Plan |
Equities |
Level 2
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total
21.9 
38.3 
 
UK Plan |
Diversified Growth Funds
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total
100.5 
51.2 
 
UK Plan |
Diversified Growth Funds |
Fair Value, Inputs, Level 1
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total
50.8 
26.3 
 
UK Plan |
Diversified Growth Funds |
Level 2
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total
49.7 
24.9 
 
UK Plan |
Sovereign Debt Securities
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total
64.2 
63.4 
 
UK Plan |
Sovereign Debt Securities |
Level 2
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total
64.2 
63.4 
 
UK Plan |
Corporate bonds
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total
64.6 
61.7 
 
UK Plan |
Corporate bonds |
Level 2
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total
64.6 
61.7 
 
UK Plan |
Property
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total
11.6 
10.4 
 
UK Plan |
Property |
Fair Value, Inputs, Level 3
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total
11.6 
10.4 
 
UK Plan |
Cash
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total
0.7 
1.2 
 
UK Plan |
Cash |
Fair Value, Inputs, Level 1
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total
$ 0.7 
$ 1.2 
 
Summary of Changes In Fair Value of Level 3 Investment Assets (Detail) (UK Plan, USD $)
In Millions, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Defined Benefit Plan Disclosure [Line Items]
 
 
Beginning Balance
$ 261.1 
$ 236.0 
Actual return on assets
13.1 
22.1 
Ending Balance
282.6 
261.1 
Fair Value, Inputs, Level 3
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Beginning Balance
10.4 
10.3 
Actual return on assets
1.2 
0.1 
Ending Balance
$ 11.6 
$ 10.4 
Summary of Expected Benefit Payments (Detail) (UK Plan, USD $)
In Millions, unless otherwise specified
Feb. 1, 2014
UK Plan
 
Defined Benefit Plan Disclosure [Line Items]
 
Fiscal 2015
$ 9.3 
Fiscal 2016
10.3 
Fiscal 2017
10.7 
Fiscal 2018
10.3 
Fiscal 2019
11.9 
Fiscal 2020 to Fiscal 2024
$ 62.2 
Fair Value Measurements Assets and Liabilities (Detail) (Deferred compensation plan - US, USD $)
In Millions, unless otherwise specified
Feb. 1, 2014
Feb. 2, 2013
Defined Benefit Plan Disclosure [Line Items]
 
 
Assets
$ 24.5 
$ 17.5 
Corporate-owned life insurance plans
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Assets
8.2 
8.9 
Money market funds
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Assets
16.3 
8.6 
Fair Value, Inputs, Level 1
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Assets
16.3 
8.6 
Fair Value, Inputs, Level 1 |
Money market funds
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Assets
16.3 
8.6 
Level 2
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Assets
8.2 
8.9 
Level 2 |
Corporate-owned life insurance plans
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Assets
$ 8.2 
$ 8.9 
Common Shares, Treasury Shares and Reserves - Additional Information (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Common Stock Equity [Line Items]
 
 
 
Common stock, par value
$ 0.18 
$ 0.18 
 
Proceeds from issuance of stock options
$ 9.3 
$ 21.6 
$ 10.6 
Number of treasury shares held
7,000,000 
5,800,000 
 
Shares repurchased
1,557,673 
6,425,296 
256,241 
Treasury stock reissued during period, Net of taxes and forfeitures
437,913 
865,598 
18,897 
Share Repurchase Activity (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Oct. 31, 2011
2011 Program
Feb. 1, 2014
2011 Program
Feb. 2, 2013
2011 Program
Jan. 28, 2012
2011 Program
Jun. 14, 2013
2013 Program
Feb. 1, 2014
2013 Program
Feb. 2, 2013
2013 Program
Jan. 28, 2012
2013 Program
Equity, Class of Treasury Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Amount Authorized
 
 
 
$ 300.0 
$ 350.0 1
 
 
$ 350.0 
$ 350.0 2
 
 
Shares repurchased
1,557,673 
6,425,296 
256,241 
 
749,245 1
6,425,296 1
256,241 1
 
808,428 2
   2 3
   2 3
Amount repurchased
$ 104.7 
$ 287.2 
$ 12.7 
 
$ 50.1 1
$ 287.2 1
$ 12.7 1
 
$ 54.6 2
   2 3
   2 3
Average repurchase price
$ 67.24 
$ 44.70 
$ 49.57 
 
$ 66.92 1
$ 44.70 1
$ 49.57 1
 
$ 67.54 2
    2 3
    2 3
Share Repurchase Activity (Parenthetical) (Detail) (USD $)
In Millions, unless otherwise specified
1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Oct. 31, 2011
2011 Program
Feb. 1, 2014
2011 Program
Jun. 14, 2013
2013 Program
Feb. 1, 2014
2013 Program
Equity, Class of Treasury Stock [Line Items]
 
 
 
 
Stock repurchase program, authorized amount
$ 300.0 
$ 350.0 1
$ 350.0 
$ 350.0 2
Stock repurchase program, remaining available amount
 
 
 
$ 295.4 
Rental Expense for Operating Leases (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Rental expense for operating leases
 
 
 
Minimum rentals
$ 323.7 
$ 316.0 
$ 311.7 
Contingent rent
11.1 
7.8 
9.8 
Sublease income
(0.9)
(2.9)
(5.1)
Total
$ 333.9 
$ 320.9 
$ 316.4 
Future Minimum Operating Lease Payments for Operating Leases (Detail) (USD $)
In Millions, unless otherwise specified
Feb. 1, 2014
Future minimum operating lease payments
 
Fiscal 2015
$ 311.1 
Fiscal 2016
275.4 
Fiscal 2017
245.8 
Fiscal 2018
212.6 
Fiscal 2019
181.8 
Thereafter
937.7 
Total
$ 2,164.4 
Commitments and Contingencies - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Property
Feb. 2, 2013
Commitments Disclosure [Line Items]
 
 
Number of property leases in UK
44 
 
Number of additional properties sub-let
19 
 
Capital Commitments related to expansion and renovation of stores
$ 42.3 
$ 33.6 
Share-Based Compensation Expense and Associated Tax Benefits (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
Share-based compensation expense
$ 14.4 
$ 15.7 
$ 17.0 
Income tax benefit
$ (5.2)
$ (5.4)
$ (5.7)
Share Based Compensation - Additional Information (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
1 Months Ended 12 Months Ended
Jan. 19, 2011
Sep. 29, 2010
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
Share-based compensation expense
 
 
$ 14.4 
$ 15.7 
$ 17.0 
Omnibus Plan
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
Vesting period
 
 
3 years 
 
 
Maximum common shares issued
 
 
7,000,000 
 
 
Period in which performance criteria measured
 
 
3 years 
 
 
Executive Plans
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
Maximum common shares issued
 
 
8,568,841 
 
 
Period in which performance criteria measured
 
 
3 years 
 
 
Maximum percentage of shares to be granted over any 10 year period
 
 
10.00% 
 
 
Maximum percentage of shares to be granted over 10 year period including discretionary option plans
 
 
5.00% 
 
 
Share based compensation plan period
 
 
10 
 
 
Chief Executive Officer
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
Share-based compensation expense
 
 
0.4 
1.9 
4.4 
Issuance of new shares
 
289,554 
 
 
 
Shares granted under share based compensation, value
 
$ 12.5 
 
 
 
Number of shares vested
116,392 
 
61,127 
92,083 
 
Chief Executive Officer |
Shares Vested Year Three
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
Number of shares expected to vest over next twelve months
 
 
19,952 
 
 
Significant Assumptions Utilized to Estimate Weighted-Average Fair Value of Awards Granted (Detail)
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Omnibus Plan
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share price
$ 67.39 1
$ 47.15 1
$ 44.33 1
Risk free interest rate
0.30% 1
0.40% 1
1.40% 1
Expected term
2 years 9 months 18 days 1
2 years 10 months 24 days 1
2 years 10 months 24 days 1
Expected volatility
41.70% 1
44.20% 1
45.10% 1
Dividend yield
1.10% 1
1.20% 1
0.70% 1
Fair value
$ 66.10 1 2
$ 46.12 1
$ 43.52 1
Share Saving Plans
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share price
$ 72.65 1
$ 49.89 1
$ 40.09 1
Exercise price
$ 59.75 1
$ 41.17 1
$ 28.32 1
Risk free interest rate
0.70% 1
0.40% 1
0.70% 1
Expected term
2 years 8 months 12 days 1
2 years 8 months 12 days 1
3 years 1
Expected volatility
40.20% 1
41.00% 1
43.00% 1
Dividend yield
1.10% 1
1.40% 1
1.00% 1
Fair value
$ 22.89 1
$ 15.40 1
$ 11.55 1
Activity for Awards Granted Under the Plan (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Omnibus Plan
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Outstanding, Weighted Average Grant Date Fair Value, beginning balance
$ 40.86 1
 
 
Weighted Average Grant Date Fair Value, Granted
$ 66.10 1 2
$ 46.12 2
$ 43.52 2
Weighted Average Grant Date Fair Value, Vested
$ 33.62 1
 
 
Weighted Average Grant Date Fair Value, Lapsed
$ 46.58 1
 
 
Outstanding, Weighted Average Grant Date Fair Value, ending balance
$ 51.44 1
$ 40.86 1
 
Outstanding, Weighted Average Remaining Contractual Life
1 year 1
1 year 1 month 6 days 1
 
Outstanding, No. of shares, beginning balance
1.2 1
 
 
No. of shares, Granted
0.3 1
 
 
No. of shares, Vested
(0.4)1
 
 
No. of shares, Lapsed
(0.1)1
 
 
Outstanding, No. of shares, ending balance
1.0 1
1.2 1
 
Outstanding, Intrinsic Value, beginning balance
$ 73.1 1 3
 
 
Outstanding, Intrinsic Value, ending balance
80.1 1 3
73.1 1 3
 
Share Saving Plans
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Weighted Average Grant Date Fair Value, Granted
$ 22.89 2
$ 15.40 2
$ 11.55 2
Outstanding, Weighted Average Remaining Contractual Life
1 year 8 months 12 days 
1 year 10 months 24 days 
 
Outstanding, No. of shares, beginning balance
0.3 
 
 
No. of shares, Granted
0.1 
 
 
No. of shares, Exercised
(0.1)
 
 
Outstanding, No. of shares, ending balance
0.3 
0.3 
 
Outstanding, Weighted average exercise price, beginning balance
$ 32.48 
 
 
Weighted average exercise price, Granted
$ 59.75 
 
 
Weighted average exercise price, Exercised
$ 27.32 
 
 
Weighted average exercise price, Lapsed
   
 
 
Outstanding, Weighted average exercise price, ending balance
$ 44.06 
$ 32.48 
 
Exercisable, Weighted Average Remaining Contractual Life
   
   
 
Outstanding, Intrinsic Value, beginning balance
9.8 4
 
 
Outstanding, Intrinsic Value, ending balance
9.4 4
9.8 4
 
Executive Plans
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Outstanding, Weighted Average Remaining Contractual Life
3 years 5 months 
3 years 4 months 24 days 
 
Outstanding, No. of shares, beginning balance
0.3 
 
 
No. of shares, Exercised
(0.2)
 
 
Outstanding, No. of shares, ending balance
0.1 
0.3 
 
Exercisable, No. of shares, beginning balance
0.3 
 
 
Exercisable, No. of shares, ending balance
0.1 
0.3 
 
Outstanding, Weighted average exercise price, beginning balance
$ 39.07 
 
 
Weighted average exercise price, Exercised
$ 39.28 
 
 
Weighted average exercise price, Lapsed
   
 
 
Outstanding, Weighted average exercise price, ending balance
$ 39.11 
$ 39.07 
 
Exercisable, Weighted average exercise price, beginning balance
$ 39.07 
 
 
Exercisable, Weighted average exercise price, ending balance
$ 39.11 
$ 39.07 
 
Exercisable, Weighted Average Remaining Contractual Life
   
   
 
Outstanding, Intrinsic Value, beginning balance
6.5 4
 
 
Outstanding, Intrinsic Value, ending balance
4.1 4
6.5 4
 
Exercisable, Intrinsic Value, beginning balance
6.5 4
 
 
Exercisable, Intrinsic Value, ending balance
$ 4.1 4
$ 6.5 4
 
Summary of Additional Information about Awards Granted (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Omnibus Plan
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Total intrinsic value of awards vested
$ 25.3 
$ 28.5 
$ 0.5 
Weighted average grant date fair value per share of awards granted
$ 66.10 1 2
$ 46.12 1
$ 43.52 1
Share Saving Plans
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Weighted average grant date fair value per share of awards granted
$ 22.89 1
$ 15.40 1
$ 11.55 1
Total intrinsic value of options exercised
4.9 
3.3 
1.1 
Cash received from share options exercised
2.9 
2.7 
3.2 
Executive Plans
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Total intrinsic value of options exercised
4.8 
9.0 
5.2 
Cash received from share options exercised
$ 6.3 
$ 18.9 
$ 7.4 
Subsequent Event - Additional Information (Detail) (Subsequent Event, Zale, USD $)
In Billions, except Per Share data, unless otherwise specified
1 Months Ended
Feb. 19, 2014
Subsequent Event |
Zale
 
Subsequent Event [Line Items]
 
Common stock price per share
$ 21.00 
Total Consideration
$ 1.4 
Supplemental Condensed Consolidated Income Statement (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Feb. 1, 2014
Nov. 2, 2013
Aug. 3, 2013
May 4, 2013
Feb. 2, 2013
Oct. 27, 2012
Jul. 28, 2012
Apr. 28, 2012
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
$ 1,564.0 
$ 771.4 
$ 880.2 
$ 993.6 
$ 1,513.3 
$ 716.2 
$ 853.9 
$ 900.0 
$ 4,209.2 
$ 3,983.4 
$ 3,749.2 
Cost of sales
 
 
 
 
 
 
 
 
(2,628.7)
(2,446.0)
(2,311.6)
Gross margin
648.8 
239.2 
309.7 
382.8 
637.1 
235.4 
311.2 
353.7 
1,580.5 
1,537.4 
1,437.6 
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
(1,196.7)
(1,138.3)
(1,056.7)
Other operating income, net
 
 
 
 
 
 
 
 
186.7 
161.4 
126.5 
Operating (loss) income
 
 
 
 
 
 
 
 
570.5 
560.5 
507.4 
Interest expense, net
 
 
 
 
 
 
 
 
(4.0)
(3.6)
(5.3)
(Loss) income before income taxes
 
 
 
 
 
 
 
 
566.5 
556.9 
502.1 
Income taxes
 
 
 
 
 
 
 
 
(198.5)
(197.0)
(177.7)
Net income
175.2 
33.6 
67.4 
91.8 
171.8 
34.9 
70.7 
82.5 
368.0 
359.9 
324.4 
Signet Jewelers Limited
 
 
 
 
 
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
(2.9)
(3.5)
(4.3)
Other operating income, net
 
 
 
 
 
 
 
 
 
 
0.1 
Operating (loss) income
 
 
 
 
 
 
 
 
(2.9)
(3.5)
(4.2)
(Loss) income before income taxes
 
 
 
 
 
 
 
 
(2.9)
(3.5)
(4.2)
Equity in income of subsidiaries
 
 
 
 
 
 
 
 
370.9 
363.4 
328.6 
Net income
 
 
 
 
 
 
 
 
368.0 
359.9 
324.4 
Guarantor Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
4,162.9 
3,948.5 
3,719.6 
Cost of sales
 
 
 
 
 
 
 
 
(2,621.2)
(2,443.4)
(2,311.4)
Gross margin
 
 
 
 
 
 
 
 
1,541.7 
1,505.1 
1,408.2 
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
(1,193.1)
(1,135.6)
(1,053.2)
Other operating income, net
 
 
 
 
 
 
 
 
183.8 
161.7 
126.8 
Operating (loss) income
 
 
 
 
 
 
 
 
532.4 
531.2 
481.8 
Intercompany interest (expense) income
 
 
 
 
 
 
 
 
(34.5)
(41.1)
(43.0)
Interest expense, net
 
 
 
 
 
 
 
 
(3.9)
(3.7)
(5.2)
(Loss) income before income taxes
 
 
 
 
 
 
 
 
494.0 
486.4 
433.6 
Income taxes
 
 
 
 
 
 
 
 
(196.8)
(195.8)
(173.8)
Equity in income of subsidiaries
 
 
 
 
 
 
 
 
344.2 
333.9 
308.8 
Net income
 
 
 
 
 
 
 
 
641.4 
624.5 
568.6 
Non-Guarantor Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
46.3 
34.9 
29.6 
Cost of sales
 
 
 
 
 
 
 
 
(7.5)
(2.6)
(0.2)
Gross margin
 
 
 
 
 
 
 
 
38.8 
32.3 
29.4 
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
(0.7)
0.8 
0.8 
Other operating income, net
 
 
 
 
 
 
 
 
2.9 
(0.3)
(0.4)
Operating (loss) income
 
 
 
 
 
 
 
 
41.0 
32.8 
29.8 
Intercompany interest (expense) income
 
 
 
 
 
 
 
 
34.5 
41.1 
43.0 
Interest expense, net
 
 
 
 
 
 
 
 
(0.1)
0.1 
(0.1)
(Loss) income before income taxes
 
 
 
 
 
 
 
 
75.4 
74.0 
72.7 
Income taxes
 
 
 
 
 
 
 
 
(1.7)
(1.2)
(3.9)
Equity in income of subsidiaries
 
 
 
 
 
 
 
 
301.3 
295.1 
269.4 
Net income
 
 
 
 
 
 
 
 
375.0 
367.9 
338.2 
Eliminations
 
 
 
 
 
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Equity in income of subsidiaries
 
 
 
 
 
 
 
 
(1,016.4)
(992.4)
(906.8)
Net income
 
 
 
 
 
 
 
 
$ (1,016.4)
$ (992.4)
$ (906.8)
Supplemental Condensed Consolidated Statement of Comprehensive Income (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Feb. 1, 2014
Nov. 2, 2013
Aug. 3, 2013
May 4, 2013
Feb. 2, 2013
Oct. 27, 2012
Jul. 28, 2012
Apr. 28, 2012
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net income
$ 175.2 
$ 33.6 
$ 67.4 
$ 91.8 
$ 171.8 
$ 34.9 
$ 70.7 
$ 82.5 
$ 368.0 
$ 359.9 
$ 324.4 
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
 
 
 
 
 
 
 
 
12.4 
(0.5)
(3.9)
Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
Unrealized (loss) gain
 
 
 
 
 
 
 
 
(22.0)
(6.7)
32.2 
Reclassification adjustment for losses (gains) to net income
 
 
 
 
 
 
 
 
6.7 
(14.4)
(16.0)
Pension plan:
 
 
 
 
 
 
 
 
 
 
 
Actuarial gain (loss)
 
 
 
 
 
 
 
 
0.2 
4.7 
(7.3)
Reclassification adjustment to net income for amortization of actuarial loss
 
 
 
 
 
 
 
 
1.7 
2.4 
1.8 
Prior service (benefit) costs
 
 
 
 
 
 
 
 
(0.7)
(0.8)
5.5 
Reclassification adjustment to net income for amortization of prior service credits
 
 
 
 
 
 
 
 
(1.1)
(1.2)
(0.7)
Total other comprehensive (loss) income
 
 
 
 
 
 
 
 
(2.8)
(16.5)
11.6 
Total comprehensive income
 
 
 
 
 
 
 
 
365.2 
343.4 
336.0 
Signet Jewelers Limited
 
 
 
 
 
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net income
 
 
 
 
 
 
 
 
368.0 
359.9 
324.4 
Pension plan:
 
 
 
 
 
 
 
 
 
 
 
Total comprehensive income
 
 
 
 
 
 
 
 
368.0 
359.9 
324.4 
Guarantor Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net income
 
 
 
 
 
 
 
 
641.4 
624.5 
568.6 
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
 
 
 
 
 
 
 
 
13.9 
(0.6)
(4.4)
Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
Unrealized (loss) gain
 
 
 
 
 
 
 
 
(22.0)
(6.7)
32.2 
Reclassification adjustment for losses (gains) to net income
 
 
 
 
 
 
 
 
6.7 
(14.4)
(16.0)
Pension plan:
 
 
 
 
 
 
 
 
 
 
 
Actuarial gain (loss)
 
 
 
 
 
 
 
 
0.2 
4.7 
(7.3)
Reclassification adjustment to net income for amortization of actuarial loss
 
 
 
 
 
 
 
 
1.7 
2.4 
1.8 
Prior service (benefit) costs
 
 
 
 
 
 
 
 
(0.7)
(0.8)
5.5 
Reclassification adjustment to net income for amortization of prior service credits
 
 
 
 
 
 
 
 
(1.1)
(1.2)
(0.7)
Total other comprehensive (loss) income
 
 
 
 
 
 
 
 
(1.3)
(16.6)
11.1 
Total comprehensive income
 
 
 
 
 
 
 
 
640.1 
607.9 
579.7 
Non-Guarantor Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net income
 
 
 
 
 
 
 
 
375.0 
367.9 
338.2 
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
 
 
 
 
 
 
 
 
(2.7)
0.1 
0.6 
Pension plan:
 
 
 
 
 
 
 
 
 
 
 
Total other comprehensive (loss) income
 
 
 
 
 
 
 
 
(2.7)
0.1 
0.6 
Total comprehensive income
 
 
 
 
 
 
 
 
372.3 
368.0 
338.8 
Eliminations
 
 
 
 
 
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net income
 
 
 
 
 
 
 
 
(1,016.4)
(992.4)
(906.8)
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
 
 
 
 
 
 
 
 
1.2 
 
(0.1)
Pension plan:
 
 
 
 
 
 
 
 
 
 
 
Total other comprehensive (loss) income
 
 
 
 
 
 
 
 
1.2 
 
(0.1)
Total comprehensive income
 
 
 
 
 
 
 
 
$ (1,015.2)
$ (992.4)
$ (906.9)
Supplemental Condensed Consolidated Balance Sheet (Detail) (USD $)
In Millions, unless otherwise specified
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Jan. 28, 2011
Current assets:
 
 
 
 
Cash and cash equivalents
$ 247.6 
$ 301.0 
$ 486.8 
$ 302.1 
Accounts receivable, net
1,374.0 
1,205.3 
 
 
Other receivables
51.5 
42.1 
 
 
Other current assets
87.0 
85.6 
 
 
Deferred tax assets
3.0 
1.6 
 
 
Income taxes
6.5 
3.5 
 
 
Inventories
1,488.0 
1,397.0 
 
 
Total current assets
3,257.6 
3,036.1 
 
 
Non-current assets:
 
 
 
 
Property, plant and equipment, net
487.6 
430.4 
 
 
Other assets
114.0 
99.9 
 
 
Deferred tax assets
113.7 
104.1 
 
 
Retirement benefit asset
56.3 
48.5 
 
 
Total assets
4,029.2 
3,719.0 
3,611.4 
 
Current liabilities:
 
 
 
 
Loans and overdrafts
19.3 
 
 
 
Accounts payable
162.9 
155.9 
 
 
Accrued expenses and other current liabilities
328.5 
326.4 
 
 
Deferred revenue
173.0 
159.7 
 
 
Deferred tax liabilities
113.1 
129.6 
 
 
Income taxes
103.9 
100.3 
 
 
Total current liabilities
900.7 
871.9 
 
 
Non-current liabilities:
 
 
 
 
Other liabilities
121.7 
111.3 
 
 
Deferred revenue
443.7 
405.9 
 
 
Total liabilities
1,466.1 
1,389.1 
1,332.3 
 
Total shareholders' equity
2,563.1 
2,329.9 
2,279.1 
1,939.0 
Total liabilities and shareholders' equity
4,029.2 
3,719.0 
 
 
Signet Jewelers Limited
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
1.4 
13.4 
6.1 
9.8 
Intercompany receivables, net
47.7 
37.3 
 
 
Other current assets
 
0.2 
 
 
Total current assets
49.1 
50.9 
 
 
Non-current assets:
 
 
 
 
Investment in subsidiaries
2,526.3 
2,288.9 
 
 
Total assets
2,575.4 
2,339.8 
 
 
Current liabilities:
 
 
 
 
Accrued expenses and other current liabilities
12.3 
9.9 
 
 
Total current liabilities
12.3 
9.9 
 
 
Non-current liabilities:
 
 
 
 
Total liabilities
12.3 
9.9 
 
 
Total shareholders' equity
2,563.1 
2,329.9 
 
 
Total liabilities and shareholders' equity
2,575.4 
2,339.8 
 
 
Guarantor Subsidiaries
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
237.0 
271.3 
471.6 
275.0 
Accounts receivable, net
1,361.3 
1,198.8 
 
 
Other receivables
51.1 
41.8 
 
 
Other current assets
86.5 
85.0 
 
 
Deferred tax assets
2.8 
1.1 
 
 
Income taxes
6.0 
3.5 
 
 
Inventories
1,434.5 
1,360.9 
 
 
Total current assets
3,179.2 
2,962.4 
 
 
Non-current assets:
 
 
 
 
Property, plant and equipment, net
481.5 
429.7 
 
 
Investment in subsidiaries
1,452.8 
1,335.3 
 
 
Other assets
110.4 
99.9 
 
 
Deferred tax assets
113.6 
104.1 
 
 
Retirement benefit asset
56.3 
48.5 
 
 
Total assets
5,393.8 
4,979.9 
 
 
Current liabilities:
 
 
 
 
Loans and overdrafts
19.3 
 
 
 
Accounts payable
160.5 
160.0 
 
 
Intercompany payables, net
285.7 
753.1 
 
 
Accrued expenses and other current liabilities
313.1 
312.3 
 
 
Deferred revenue
173.0 
159.7 
 
 
Deferred tax liabilities
113.1 
129.6 
 
 
Income taxes
101.3 
95.9 
 
 
Total current liabilities
1,166.0 
1,610.6 
 
 
Non-current liabilities:
 
 
 
 
Intercompany payables, net
1,098.0 
600.0 
 
 
Other liabilities
118.5 
106.1 
 
 
Deferred revenue
443.7 
405.9 
 
 
Total liabilities
2,826.2 
2,722.6 
 
 
Total shareholders' equity
2,567.6 
2,257.3 
 
 
Total liabilities and shareholders' equity
5,393.8 
4,979.9 
 
 
Non-Guarantor Subsidiaries
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
9.2 
16.3 
9.1 
17.3 
Accounts receivable, net
12.7 
6.5 
 
 
Intercompany receivables, net
238.0 
715.8 
 
 
Other receivables
0.4 
0.3 
 
 
Other current assets
0.5 
0.4 
 
 
Deferred tax assets
0.2 
0.5 
 
 
Income taxes
0.5 
 
 
 
Inventories
53.5 
36.1 
 
 
Total current assets
315.0 
775.9 
 
 
Non-current assets:
 
 
 
 
Property, plant and equipment, net
6.1 
0.7 
 
 
Investment in subsidiaries
1,143.2 
1,039.3 
 
 
Intercompany receivables, net
1,098.0 
600.0 
 
 
Other assets
3.6 
 
 
 
Deferred tax assets
0.1 
 
 
 
Total assets
2,566.0 
2,415.9 
 
 
Current liabilities:
 
 
 
 
Accounts payable
2.4 
(4.1)
 
 
Accrued expenses and other current liabilities
3.1 
4.2 
 
 
Income taxes
2.6 
4.4 
 
 
Total current liabilities
8.1 
4.5 
 
 
Non-current liabilities:
 
 
 
 
Other liabilities
3.2 
5.2 
 
 
Total liabilities
11.3 
9.7 
 
 
Total shareholders' equity
2,554.7 
2,406.2 
 
 
Total liabilities and shareholders' equity
2,566.0 
2,415.9 
 
 
Eliminations
 
 
 
 
Current assets:
 
 
 
 
Intercompany receivables, net
(285.7)
(753.1)
 
 
Total current assets
(285.7)
(753.1)
 
 
Non-current assets:
 
 
 
 
Investment in subsidiaries
(5,122.3)
(4,663.5)
 
 
Intercompany receivables, net
(1,098.0)
(600.0)
 
 
Total assets
(6,506.0)
(6,016.6)
 
 
Current liabilities:
 
 
 
 
Intercompany payables, net
(285.7)
(753.1)
 
 
Total current liabilities
(285.7)
(753.1)
 
 
Non-current liabilities:
 
 
 
 
Intercompany payables, net
(1,098.0)
(600.0)
 
 
Total liabilities
(1,383.7)
(1,353.1)
 
 
Total shareholders' equity
(5,122.3)
(4,663.5)
 
 
Total liabilities and shareholders' equity
$ (6,506.0)
$ (6,016.6)
 
 
Supplemental Condensed Consolidated Statement of Cash Flows (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Cash flows from operating activities
 
 
 
Other cash provided by operating activities
$ 235.5 
$ 359.9 
$ 325.2 
Net cash provided by operating activities
235.5 
312.7 
325.2 
Investing activities
 
 
 
Purchase of property, plant and equipment
(152.7)
(134.2)
(97.8)
Net cash used in investing activities
(160.4)
(190.9)
(97.8)
Financing activities
 
 
 
Dividends paid
(46.0)
(38.4)
(8.7)
Proceeds from issuance of common shares
9.3 
21.6 
10.6 
Excess tax benefit from exercise of share awards
6.5 
7.4 
3.9 
Repurchase of common shares
(104.7)
(287.2)
(12.7)
Credit facility fees paid
 
 
(2.1)
Proceeds from short-term borrowings
19.3 
 
(31.0)
Net cash used in financing activities
(124.8)
(308.1)
(40.0)
Net settlement of equity based awards
(9.2)
(11.5)
 
Cash and cash equivalents at beginning of period
301.0 
486.8 
302.1 
(Decrease) increase in cash and cash equivalents
(49.7)
(186.3)
187.4 
Effect of exchange rate changes on cash and cash equivalents
(3.7)
0.5 
(2.7)
Cash and cash equivalents at end of period
247.6 
301.0 
486.8 
Ultra Acquisition
 
 
 
Investing activities
 
 
 
Acquisition of business, net of cash received
1.4 
(56.7)
 
Botswana Diamond Polishing Factory Acquisition
 
 
 
Investing activities
 
 
 
Acquisition of business, net of cash received
(9.1)
 
 
Signet Jewelers Limited
 
 
 
Cash flows from operating activities
 
 
 
Other cash provided by operating activities
137.3 
305.7 
45.7 
Net cash provided by operating activities
137.3 
305.7 
45.7 
Investing activities
 
 
 
Investment in subsidiaries
(0.3)
 
 
Net cash used in investing activities
(0.3)
 
 
Financing activities
 
 
 
Dividends paid
(46.0)
(38.4)
(8.7)
Proceeds from issuance of common shares
9.3 
21.6 
10.6 
Repurchase of common shares
(104.7)
(287.2)
(12.7)
Intercompany activity, net
1.6 
17.1 
(38.6)
Net cash used in financing activities
(149.0)
(298.4)
(49.4)
Net settlement of equity based awards
(9.2)
(11.5)
 
Cash and cash equivalents at beginning of period
13.4 
6.1 
9.8 
(Decrease) increase in cash and cash equivalents
(12.0)
7.3 
(3.7)
Cash and cash equivalents at end of period
1.4 
13.4 
6.1 
Guarantor Subsidiaries
 
 
 
Cash flows from operating activities
 
 
 
Other cash provided by operating activities
421.3 
512.5 
665.2 
Net cash provided by operating activities
421.3 
512.5 
665.2 
Investing activities
 
 
 
Purchase of property, plant and equipment
(152.6)
(134.0)
(97.8)
Investment in subsidiaries
(11.0)
 
(4.2)
Net cash used in investing activities
(162.2)
(190.7)
(102.0)
Financing activities
 
 
 
Intercompany dividends paid
(104.4)
(520.1)
(253.3)
Excess tax benefit from exercise of share awards
6.5 
7.4 
3.9 
Credit facility fees paid
 
 
(2.1)
Proceeds from short-term borrowings
19.3 
 
(31.0)
Intercompany activity, net
(214.6)
(9.9)
(80.6)
Net cash used in financing activities
(293.2)
(522.6)
(363.1)
Cash and cash equivalents at beginning of period
271.3 
471.6 
275.0 
(Decrease) increase in cash and cash equivalents
(34.1)
(200.8)
200.1 
Effect of exchange rate changes on cash and cash equivalents
(0.2)
0.5 
(3.5)
Cash and cash equivalents at end of period
237.0 
271.3 
471.6 
Guarantor Subsidiaries |
Ultra Acquisition
 
 
 
Investing activities
 
 
 
Acquisition of business, net of cash received
1.4 
(56.7)
 
Non-Guarantor Subsidiaries
 
 
 
Cash flows from operating activities
 
 
 
Other cash provided by operating activities
286.9 
280.5 
306.5 
Net cash provided by operating activities
286.9 
280.5 
306.5 
Investing activities
 
 
 
Purchase of property, plant and equipment
(0.1)
(0.2)
 
Investment in subsidiaries
(11.0)
 
(2.4)
Net cash used in investing activities
(20.2)
(0.2)
(2.4)
Financing activities
 
 
 
Intercompany dividends paid
(35.6)
(265.9)
(438.9)
Proceeds from issuance of common shares
22.3 
 
2.4 
Intercompany activity, net
(257.0)
(7.2)
123.4 
Net cash used in financing activities
(270.3)
(273.1)
(313.1)
Cash and cash equivalents at beginning of period
16.3 
9.1 
17.3 
(Decrease) increase in cash and cash equivalents
(3.6)
7.2 
(9.0)
Effect of exchange rate changes on cash and cash equivalents
(3.5)
 
0.8 
Cash and cash equivalents at end of period
9.2 
16.3 
9.1 
Non-Guarantor Subsidiaries |
Botswana Diamond Polishing Factory Acquisition
 
 
 
Investing activities
 
 
 
Acquisition of business, net of cash received
(9.1)
 
 
Eliminations
 
 
 
Cash flows from operating activities
 
 
 
Other cash provided by operating activities
(610.0)
(786.0)
(692.2)
Net cash provided by operating activities
(610.0)
(786.0)
(692.2)
Investing activities
 
 
 
Investment in subsidiaries
22.3 
 
6.6 
Net cash used in investing activities
22.3 
 
6.6 
Financing activities
 
 
 
Intercompany dividends paid
140.0 
786.0 
692.2 
Proceeds from issuance of common shares
(22.3)
 
(2.4)
Intercompany activity, net
470.0 
 
(4.2)
Net cash used in financing activities
$ 587.7 
$ 786.0 
$ 685.6 
Quarterly Financial Information (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Feb. 1, 2014
Nov. 2, 2013
Aug. 3, 2013
May 4, 2013
Feb. 2, 2013
Oct. 27, 2012
Jul. 28, 2012
Apr. 28, 2012
Feb. 1, 2014
Feb. 2, 2013
Jan. 28, 2012
Quarterly financial information
 
 
 
 
 
 
 
 
 
 
 
Sales
$ 1,564.0 
$ 771.4 
$ 880.2 
$ 993.6 
$ 1,513.3 
$ 716.2 
$ 853.9 
$ 900.0 
$ 4,209.2 
$ 3,983.4 
$ 3,749.2 
Gross margin
648.8 
239.2 
309.7 
382.8 
637.1 
235.4 
311.2 
353.7 
1,580.5 
1,537.4 
1,437.6 
Net income
$ 175.2 
$ 33.6 
$ 67.4 
$ 91.8 
$ 171.8 
$ 34.9 
$ 70.7 
$ 82.5 
$ 368.0 
$ 359.9 
$ 324.4 
Earnings per share - basic
$ 2.20 
$ 0.42 
$ 0.84 
$ 1.14 
$ 2.13 
$ 0.43 
$ 0.86 
$ 0.96 
$ 4.59 
$ 4.37 
$ 3.76 
Earnings per share - diluted
$ 2.18 
$ 0.42 
$ 0.84 
$ 1.13 
$ 2.12 
$ 0.43 
$ 0.85 
$ 0.96 
$ 4.56 
$ 4.35 
$ 3.73