SIGNET JEWELERS LTD, 10-Q filed on 8/29/2013
Quarterly Report
Document and Entity Information
6 Months Ended
Aug. 3, 2013
Aug. 23, 2013
Document Information [Line Items]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Aug. 03, 2013 
 
Document Fiscal Year Focus
2014 
 
Document Fiscal Period Focus
Q2 
 
Trading Symbol
SIG 
 
Entity Registrant Name
SIGNET JEWELERS LTD 
 
Entity Central Index Key
0000832988 
 
Current Fiscal Year End Date
--02-01 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
80,529,205 
Condensed Consolidated Income Statements (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Aug. 3, 2013
Jul. 28, 2012
Aug. 3, 2013
Jul. 28, 2012
Sales
$ 880.2 
$ 853.9 
$ 1,873.8 
$ 1,753.9 
Cost of sales
(570.5)
(542.7)
(1,181.3)
(1,089.0)
Gross margin
309.7 
311.2 
692.5 
664.9 
Selling, general and administrative expenses
(250.5)
(240.3)
(537.5)
(504.8)
Other operating income, net
46.3 
40.0 
93.3 
80.2 
Operating income
105.5 
110.9 
248.3 
240.3 
Interest expense, net
(1.0)
(0.7)
(1.9)
(1.6)
Income before income taxes
104.5 
110.2 
246.4 
238.7 
Income taxes
(37.1)
(39.5)
(87.2)
(85.5)
Net income
$ 67.4 
$ 70.7 
$ 159.2 
$ 153.2 
Earnings per share: basic
$ 0.84 
$ 0.86 
$ 1.98 
$ 1.82 
Earnings per share: diluted
$ 0.84 
$ 0.85 
$ 1.97 
$ 1.81 
Weighted average common shares outstanding: basic
80.3 
82.6 
80.6 
84.1 
Weighted average common shares outstanding: diluted
80.7 
83.0 
81.0 
84.7 
Dividends declared per share
$ 0.15 
$ 0.12 
$ 0.30 
$ 0.24 
Condensed Consolidated Statements Of Comprehensive Income (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Aug. 3, 2013
Jul. 28, 2012
Aug. 3, 2013
Jul. 28, 2012
Net income
$ 67.4 
$ 70.7 
$ 159.2 
$ 153.2 
Other comprehensive income (loss):
 
 
 
 
Foreign currency translation adjustments
(5.2)
(7.7)
(7.0)
1.9 
Derivative instruments qualifying as cash flow hedges:
 
 
 
 
Unrealized loss, net of tax of $(3.2) and $(9.3), respectively (July 28, 2012: $(0.6) and $(5.1), respectively)
(5.4)
(0.6)
(16.8)
(9.0)
Reclassification adjustment for gains to net income, net of tax of $0.1 and $(0.3), respectively (July 28, 2012: $(1.9) and $(5.0), respectively)
(0.1)
(4.0)
(0.7)
(9.5)
Pension plan:
 
 
 
 
Reclassification adjustment to net income for amortization of actuarial loss, net of tax of $0.1 and $0.2, respectively (July 28, 2012: $0.3 and $0.3, respectively)
0.4 
0.8 
0.9 
1.6 
Reclassification adjustment to net income for amortization of net prior service credit, net of tax of $(0.1) and $(0.1), respectively (July 28, 2012: $(0.1) and $(0.1), respectively)
(0.2)
(0.4)
(0.6)
(0.8)
Total other comprehensive loss
(10.5)
(11.9)
(24.2)
(15.8)
Comprehensive income
$ 56.9 
$ 58.8 
$ 135.0 
$ 137.4 
Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Aug. 3, 2013
Jul. 28, 2012
Aug. 3, 2013
Jul. 28, 2012
Unrealized loss, Tax
$ (3.2)
$ (0.6)
$ (9.3)
$ (5.1)
Reclassification adjustment for gains to net income, Tax
0.1 
(1.9)
(0.3)
(5.0)
Reclassification adjustment to net income for amortization of actuarial gains, Tax
0.1 
0.3 
0.2 
0.3 
Reclassification adjustment to net income for amortization of prior service costs, Tax
$ (0.1)
$ (0.1)
$ (0.1)
$ (0.1)
Condensed Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Aug. 3, 2013
Feb. 2, 2013
Jul. 28, 2012
Current assets:
 
 
 
Cash and cash equivalents
$ 212.9 
$ 301.0 
$ 237.5 
Accounts receivable, net
1,152.1 
1,205.3 
1,032.2 
Other receivables
43.0 
42.1 
40.4 
Other current assets
79.5 
85.9 
71.6 
Deferred tax assets
2.3 
1.6 
1.8 
Inventories
1,417.7 
1,397.0 
1,312.8 
Total current assets
2,907.5 
3,032.9 
2,696.3 
Non-current assets:
 
 
 
Property and equipment, net of accumulated depreciation of $750.1, $724.1, and $709.8, respectively
434.9 
430.4 
392.0 
Other assets
107.4 
99.9 
72.6 
Deferred tax assets
127.3 
104.1 
120.3 
Retirement benefit asset
50.7 
48.5 
37.8 
Total assets
3,627.8 
3,715.8 
3,319.0 
Current liabilities:
 
 
 
Loans and overdrafts
1.7 
 
 
Accounts payable
130.3 
155.9 
136.4 
Accrued expenses and other current liabilities
259.7 
326.4 
257.5 
Deferred revenue
154.6 
159.7 
145.3 
Deferred tax liabilities
140.8 
129.6 
124.7 
Income taxes payable
34.4 
97.1 
57.0 
Total current liabilities
721.5 
868.7 
720.9 
Non-current liabilities:
 
 
 
Deferred tax liabilities
0.7 
 
 
Other liabilities
114.6 
111.3 
105.2 
Deferred revenue
418.4 
405.9 
381.9 
Total liabilities
1,255.2 
1,385.9 
1,208.0 
Commitments and contingencies
   
   
   
Shareholders' equity:
 
 
 
Common shares of $0.18 par value: authorized 500 shares, 80.5 shares outstanding (February 2, 2013: 81.4 shares outstanding; July 28, 2012: 80.9 shares outstanding)
15.7 
15.7 
15.7 
Additional paid-in capital
249.3 
246.3 
231.2 
Other reserves
235.2 
235.2 
235.2 
Treasury shares at cost: 6.7 shares (February 2, 2013: 5.8 shares; July 28, 2012: 6.3 shares)
(321.8)
(260.0)
(281.1)
Retained earnings
2,394.1 
2,268.4 
2,085.0 
Accumulated other comprehensive loss
(199.9)
(175.7)
(175.0)
Total shareholders' equity
2,372.6 
2,329.9 
2,111.0 
Total liabilities and shareholders' equity
$ 3,627.8 
$ 3,715.8 
$ 3,319.0 
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Per Share data, unless otherwise specified
Aug. 3, 2013
Feb. 2, 2013
Jul. 28, 2012
Property and equipment, accumulated depreciation
$ 750.1 
$ 724.1 
$ 709.8 
Common shares, par value
$ 0.18 
$ 0.18 
$ 0.18 
Common shares, authorized
500 
500 
500 
Common shares, outstanding
80.5 
81.4 
80.9 
Treasury shares, shares
6.7 
5.8 
6.3 
Condensed Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Aug. 3, 2013
Jul. 28, 2012
Aug. 3, 2013
Jul. 28, 2012
Cash flows from operating activities
 
 
 
 
Net income
$ 67.4 
$ 70.7 
$ 159.2 
$ 153.2 
Adjustments to reconcile net income to cash provided by operating activities:
 
 
 
 
Depreciation and amortization of property and equipment
25.5 
23.6 
51.1 
46.7 
Pension expense
(0.1)
0.8 
(0.2)
1.6 
Share-based compensation
3.5 
3.0 
6.5 
7.1 
Deferred taxation
(4.4)
(9.3)
(2.5)
(12.8)
Excess tax benefit from exercise of share options
(4.5)
 
(4.5)
 
Facility amendment fees amortization and charges
0.1 
0.1 
0.2 
0.2 
Other non-cash movements
(0.7)
(1.4)
(0.9)
(1.4)
Changes in operating assets and liabilities:
 
 
 
 
Decrease (increase) in accounts receivable
5.2 
(7.4)
52.8 
56.1 
(Increase) decrease in other receivables and other assets
(4.4)
3.2 
(9.9)
3.1 
(Increase) decrease in other current assets
(0.5)
2.9 
4.0 
7.2 
(Increase) decrease in inventories
(2.7)
8.4 
(57.4)
(17.2)
Decrease in accounts payable
(47.6)
(18.8)
(29.3)
(46.5)
(Decrease) increase in accrued expenses and other liabilities
(5.8)
9.0 
(57.1)
(53.0)
(Decrease) increase in deferred revenue
(0.4)
(3.6)
7.6 
(0.9)
(Decrease) increase in income taxes payable
(15.8)
4.7 
(58.2)
(20.9)
Pension plan contributions
(1.0)
(3.6)
(2.8)
(7.0)
Effect of exchange rate changes on currency swaps
(0.4)
0.5 
(0.1)
1.3 
Net cash provided by operating activities
13.4 
82.8 
58.5 
116.8 
Investing activities
 
 
 
 
Purchase of property and equipment
(30.4)
(36.2)
(53.6)
(54.8)
Acquisition of Ultra Stores, Inc.
1.4 
 
1.4 
 
Net cash used in investing activities
(29.0)
(36.2)
(52.2)
(54.8)
Financing activities
 
 
 
 
Dividends paid
(12.1)1
(10.3)
(21.9)
(19.0)
Proceeds from issuance of common shares
0.2 
0.3 
5.2 
5.4 
Excess tax benefit from exercise of share options
4.5 
 
4.5 
 
Repurchase of common shares
(25.0)
(196.5)
(75.1)
(287.2)
Net settlement of equity based awards
0.1 
(2.5)
(9.0)
(10.8)
(Repayment of) proceeds from short-term borrowings
(4.0)
 
1.7 
 
Net cash used in financing activities
(36.3)
(209.0)
(94.6)
(311.6)
Effect of exchange rate changes on cash and cash equivalents
1.1 
0.9 
0.2 
0.3 
Cash and cash equivalents at beginning of period
263.7 
399.0 
301.0 
486.8 
Decrease in cash and cash equivalents
(51.9)
(162.4)
(88.3)
(249.6)
Cash and cash equivalents at end of period
$ 212.9 
$ 237.5 
$ 212.9 
$ 237.5 
Condensed Consolidated Statement 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 Feb. 02, 2013
$ 2,329.9 
$ 15.7 
$ 246.3 
$ 235.2 
$ (260.0)
$ 2,268.4 
$ (175.7)
Net income
159.2 
 
 
 
 
159.2 
 
Other comprehensive (loss) income
(24.2)
 
 
 
 
 
(24.2)
Dividends
(24.2)
 
 
 
 
(24.2)
 
Repurchase of common shares
(75.1)
 
 
 
(75.1)
 
 
Net settlement of equity based awards
(4.5)
 
(3.5)
 
7.0 
(8.0)
 
Share options exercised
5.0 
 
 
 
6.3 
(1.3)
 
Share-based compensation expense
6.5 
 
6.5 
 
 
 
 
Balance at Aug. 03, 2013
$ 2,372.6 
$ 15.7 
$ 249.3 
$ 235.2 
$ (321.8)
$ 2,394.1 
$ (199.9)
Principal Accounting Policies and Basis of Preparation
Principal Accounting Policies and Basis of Preparation

1. Principal accounting policies and basis of preparation

Basis of preparation

Signet Jewelers Limited (“Signet” or the “Company”), including its subsidiaries, is a leading retailer of jewelry, watches and associated services. Signet manages its business as two geographical segments, 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, Ultra and various regional brands. Ultra was acquired by Signet in October 2012. The UK division’s retail stores operate under brands including H. Samuel and Ernest Jones.

These condensed consolidated financial statements included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted from this report, as is permitted by such rules and regulations. In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of the results for the interim periods. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and notes included in Signet’s Annual Report on Form 10-K for the year ended February 2, 2013.

Use of estimates

The preparation of these condensed consolidated financial statements, in conformity with US GAAP and SEC regulations for interim reporting, 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 condensed 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, inventory and deferred revenue, fair value of derivatives, depreciation and asset impairment, the valuation of employee benefits, income taxes and contingencies.

Fiscal year

The Company’s fiscal year ends on the Saturday nearest to January 31st. Fiscal 2014 is the 52 week year ending February 1, 2014 and Fiscal 2013 is the 53 week year ended February 2, 2013. Within these financial statements, the second quarter and year to date of the relevant fiscal years 2014 and 2013 refer to the 13 and 26 weeks ended August 3, 2013 and July 28, 2012, respectively.

Seasonality

Signet’s sales are seasonal, with the first and second quarters each normally accounting for slightly more than 20% of annual sales, the third quarter a little under 20% and the fourth quarter for about 40% of sales, with December being by far the most important month of the year. Sales made in November and December are known as the “Holiday Season.” Due to sales leverage, Signet’s operating income is even more seasonal; about 45% to 50% of Signet’s operating income normally occurs in the fourth quarter, comprised of nearly all of the UK division’s operating income and about 40% to 50% of the US division’s operating income.

Revenue recognition

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 and July 28, 2012: 46% and 46%, respectively). 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.

 

New 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.

New accounting pronouncements to be adopted in subsequent 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 is currently assessing the impact, if any, that the adoption of this accounting pronouncement will have on its consolidated financial statements.

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

Signet’s sales are derived from the retailing of jewelry, watches, other products and services. Signet is managed as two geographical operating 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 in turn reports to the Board of Directors (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. The operating segments do not include certain corporate administrative costs. There are no material transactions between the operating segments.

 

     13 weeks ended     26 weeks ended  

(in millions)

   August 3,
2013
    July 28,
2012
    August 3,
2013
    July 28,
2012
 

Sales:

        

US

   $ 741.1      $ 701.9      $ 1,599.7      $ 1,453.4   

UK

     139.1        152.0        274.1        300.5   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total sales

   $ 880.2      $ 853.9      $ 1,873.8      $ 1,753.9   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss):

        

US

   $ 111.5      $ 117.3      $ 264.3      $ 255.0   

UK

     (0.8     (0.3     (4.9     (3.3

Unallocated(1)

     (5.2     (6.1     (11.1     (11.4
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating income

   $ 105.5      $ 110.9      $ 248.3      $ 240.3   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(in millions)

   August 3,
2013
     February 2,
2013
     July 28,
2012
 

Total assets:

        

US

   $ 3,055.8       $ 3,018.8       $ 2,683.8   

UK

     421.5         446.7         437.3   

Unallocated(1)

     150.5         250.3         197.9   
  

 

 

    

 

 

    

 

 

 

Total assets

   $ 3,627.8       $ 3,715.8       $ 3,319.0   
  

 

 

    

 

 

    

 

 

 

 

(1) Unallocated principally relates to corporate administrative costs, assets and liabilities.
Foreign Currency Translation
Foreign Currency Translation

3. 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 reported as an element of other comprehensive income (loss).

Income Taxes
Income Taxes

4. Income taxes

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 ending after November 1, 2008 and is subject to examination by the UK tax authority for tax years ending after January 31, 2010.

As of February 2, 2013, Signet had approximately $4.5 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. There has been no material change in the amount of unrecognized tax benefits in respect of uncertain tax positions during the 13 and 26 weeks ended August 3, 2013.

Signet recognizes accrued interest and, where appropriate, penalties related to unrecognized tax benefits within income tax expense. As of February 2, 2013, Signet had accrued interest of $0.2 million and there has been no material change in the amount of accrued interest as of August 3, 2013.

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 2, 2013, due to settlement of the uncertain tax positions with the tax authorities.

Earnings Per Share
Earnings Per Share

5. Earnings per share

Earnings per share

 

     13 weeks ended      26 weeks ended  

(in millions, except per share amounts)

   August 3,
2013
     July 28,
2012
     August 3,
2013
     July 28,
2012
 

Net income

   $ 67.4       $ 70.7       $ 159.2       $ 153.2   
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic weighted average number of shares outstanding

     80.3         82.6         80.6         84.1   

Dilutive effect of share options

     0.4         0.4         0.4         0.6   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted weighted average number of shares outstanding

     80.7         83.0         81.0         84.7   
  

 

 

    

 

 

    

 

 

    

 

 

 

Earnings per share – basic

   $ 0.84       $ 0.86       $ 1.98       $ 1.82   

Earnings per share – diluted

   $ 0.84       $ 0.85       $ 1.97       $ 1.81   

 

The basic weighted average number of shares excludes non-vested time-based restricted shares, shares held by the Employee Stock Ownership Trust 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 the 13 and 26 week periods ended August 3, 2013 by 6,848,428 and 6,606,882 shares, respectively (13 and 26 week periods ended July 28, 2012: 4,579,232 and 3,108,956 shares, respectively). The calculation of fully diluted earnings per share for the 13 and 26 week periods ended August 3, 2013 excludes 1,071 and 53,421 non-vested time-based restricted shares (13 and 26 week periods ended July 28, 2012: 287,487 and 223,811 shares and share options, respectively) on the basis that their effect on earnings per share was anti-dilutive.

Shareholders' Equity
Shareholders' Equity

6. Shareholders’ equity

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:

 

            Shares repurchased      Amount repurchased      Average repurchase price  
            26 weeks ended      26 weeks ended      26 weeks ended  
     Amount
Authorized
     August 3,
2013
     July 28,
2012
     August 3,
2013
     July 28,
2012
     August 3,
2013
     July 28,
2012
 
     (in millions)                    (in millions)      (in millions)                

2013 Program(1)

   $ 350.0         374,613         n/a       $ 25.0       $  n/a       $ 66.74       $ n/a   

2011 Program(2)

     350.0         749,245         6,425,296         50.1         287.2         66.92         44.70   
     

 

 

    

 

 

    

 

 

    

 

 

       

Total

        1,123,858         6,425,296       $ 75.1       $ 287.2         

 

(1) On June 14, 2013, the Board authorized a new program to repurchase 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 $325.0 million remaining as of August 3, 2013.
(2) In October 2011, the Board authorized a program to repurchase 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.

Dividends

 

Fiscal 2014:                               
     Cash dividend
per share
     Date Declared      Record Date    Payment Date(1)    Total
Dividends
 
                             (in millions)  

First quarter

   $ 0.15         March 27, 2013       May 3, 2013    May 29, 2013    $ 12.1   

Second quarter

   $ 0.15         June 14, 2013       August 2, 2013    August 28, 2013    $ 12.1 (2) 

 

(1) Signet’s dividend policy results in the dividend payment date being a quarter in arrears from the declaration date. As such, the fourth quarter Fiscal 2013 $0.12 per share cash dividend was paid out on February 27, 2013 in the aggregate amount of $9.8 million.
(2) As of August 3, 2013, $12.1 million has been recorded in accrued expenses and other current liabilities reflecting the cash dividend declared for the second quarter of Fiscal 2014, which is not presented in the condensed consolidated statement of cash flows as it is a non-cash transaction.
Reclassification Out of Accumulated OCI
Reclassification Out of Accumulated OCI

7. Reclassification out of accumulated OCI

 

Reclassification activity by individual accumulated OCI component:    Amounts
reclassified from
accumulated OCI
    Amounts
reclassified from
accumulated OCI
   

Income statement caption

     13 weeks ended
August 3, 2013
    26 weeks ended
August 3, 2013
     

(in millions)

                

(Gains) losses on cash flow hedges:

      

Foreign currency contracts

   $ (0.2   $ (0.4   Cost of sales (see Note 11)

Commodity contracts

     0.2        (0.6   Cost of sales (see Note 11)
  

 

 

   

 

 

   

Total before income tax

     —          (1.0  
     (0.1     0.3      Income taxes
  

 

 

   

 

 

   

Net of tax

     (0.1     (0.7  
  

 

 

   

 

 

   

Defined benefit pension plan items:

      

Amortization of unrecognized net prior service credit

     (0.3     (0.7   Selling, general and administrative expenses(1)

Amortization of unrecognized actuarial loss

     0.5        1.1      Selling, general and administrative expenses(1)
  

 

 

   

 

 

   

Total before income tax

     0.2        0.4     
     —          (0.1   Income taxes
  

 

 

   

 

 

   

Net of tax

     0.2        0.3     
  

 

 

   

 

 

   

Total reclassifications

   $ 0.1      $ (0.4  
  

 

 

   

 

 

   

 

(1) These items are included in the computation of net periodic pension benefit (cost). See Note 12 for additional information.
Accounts Receivable, net
Accounts Receivable, net

8. 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.

 

(in millions)

   August 3,
2013
     February 2,
2013
     July 28,
2012
 

Accounts receivable by portfolio segment, net:

        

US customer in-house finance receivables

   $ 1,142.0      $ 1,192.9      $ 1,024.2  

Other accounts receivable

     10.1        12.4        8.0  
  

 

 

    

 

 

    

 

 

 

Total accounts receivable, net

   $ 1,152.1      $ 1,205.3      $ 1,032.2  
  

 

 

    

 

 

    

 

 

 

 

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 $9.1 million (February 2, 2013 and July 28, 2012: $13.0 million and $8.7 million, respectively) with a corresponding valuation allowance of $0.4 million (February 2, 2013 and July 28, 2012: $0.6 million and $0.7 million, respectively).

Allowance for Credit Losses on US Customer In-House Finance Receivables:

 

(in millions)

   26 weeks
ended
August 3,
2013
    53 weeks
ended
February 2,
2013
    26 weeks
ended
July 28,
2012
 

Allowance on US portfolio, beginning of period

   $ (87.7   $ (78.1   $ (78.1

Charge-offs

     56.4        112.8        49.5   

Recoveries

     13.6        21.8        11.1   

Provision

     (71.4     (144.2     (61.1
  

 

 

   

 

 

   

 

 

 

Allowance on US portfolio, end of period

   $ (89.1   $ (87.7   $ (78.6

Ending receivable balance evaluated for impairment

     1,231.1        1,280.6        1,102.8   
  

 

 

   

 

 

   

 

 

 

Percentage of allowance on US portfolio, end of period

     7.2     6.8     7.1
  

 

 

   

 

 

   

 

 

 

US customer in-house finance receivables, net

   $ 1,142.0      $ 1,192.9      $ 1,024.2   
  

 

 

   

 

 

   

 

 

 

Net bad debt expense is calculated as provision expense less recoveries.

Credit Quality Indicator and Age Analysis of Past Due US Customer In-House Finance Receivables:

 

     August 3,
2013
    February 2,
2013
    July 28,
2012
 

(in millions)

   Gross     Valuation
allowance
    Gross     Valuation
allowance
    Gross     Valuation
allowance
 

Performing:

            

Current, aged 0-30 days

   $ 973.2     $ (29.9 )   $ 1,030.3     $ (33.8 )   $ 874.8     $ (27.0

Past due, aged 31-90 days

     206.1       (7.4 )     203.9       (7.5 )     183.1       (6.7

Non Performing:

            

Past due, aged more than 90 days

     51.8        (51.8     46.4       (46.4     44.9        (44.9 )   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   $ 1,231.1     $ (89.1 )   $ 1,280.6      $ (87.7 )   $ 1,102.8     $ (78.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     August 3,
2013
    February 2,
2013
    July 28,
2012
 

(as a percentage of the ending receivable balance)

      Gross        Valuation
allowance
       Gross        Valuation
allowance
       Gross        Valuation
allowance
 

Performing

     95.8     3.0     96.4     3.2     95.9     3.1

Non Performing

     4.2     100.0     3.6     100.0     4.1     100.0
         100.0     7.2       100.0     6.8        100.0     7.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Deferred Revenue
Deferred Revenue

9. Deferred revenue

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

 

(in millions)

   August 3,
2013
     February 2,
2013
     July 28,
2012
 

ESP deferred revenue

   $ 567.0      $ 549.7      $ 523.7  

Voucher promotions and other

     6.0        15.9        3.5  
  

 

 

    

 

 

    

 

 

 

Total deferred revenue

   $ 573.0      $ 565.6      $ 527.2  
  

 

 

    

 

 

    

 

 

 

Disclosed as:

        

Current liabilities

   $ 154.6      $ 159.7      $ 145.3  

Non-current liabilities

     418.4        405.9        381.9  
  

 

 

    

 

 

    

 

 

 

Total deferred revenue

   $ 573.0      $ 565.6      $ 527.2  
  

 

 

    

 

 

    

 

 

 

In addition, other current assets include deferred direct costs related to the sale of ESP of $20.8 million as of August 3, 2013 (February 2, 2013 and July 28, 2012: $20.9 million and $21.2 million, respectively). Other assets include the long-term portion of these deferred direct costs of $58.8 million as of August 3, 2013 (February 2, 2013 and July 28, 2012: $56.9 million and $53.7 million, respectively).

 

     13 weeks ended     26 weeks ended  

(in millions)

   August 3,
2013
    July 28,
2012
    August 3,
2013
    July 28,
2012
 

ESP deferred revenue, beginning of period

   $ 563.4      $  520.7      $ 549.7      $  511.7   

Plans sold

     46.1        44.4        101.4        94.2   

Revenues recognized

     (42.5     (41.4     (84.1     (82.2
  

 

 

   

 

 

   

 

 

   

 

 

 

ESP deferred revenue, end of period

   $ 567.0      $ 523.7      $ 567.0      $  523.7   
  

 

 

   

 

 

   

 

 

   

 

 

 
Warranty Reserve
Warranty Reserve

10. Warranty reserve

Warranty reserve for diamond and gemstone guarantee, included in accrued expenses and other current liabilities, and other non-current liabilities, is as follows:

 

     13 weeks ended     26 weeks ended  

(in millions)

   August 3,
2013
    July 28,
2012
    August 3,
2013
    July 28,
2012
 

Warranty reserve, beginning of period

   $ 18.6     $ 15.1     $ 18.5     $ 15.1  

Warranty expense

     1.9       4.6       3.5       6.1  

Utilized

     (1.9 )     (2.1 )     (3.4 )     (3.6
  

 

 

   

 

 

   

 

 

   

 

 

 

Warranty reserve, end of period

   $ 18.6     $ 17.6     $ 18.6     $ 17.6  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(in millions)

   August 3,
2013
     February 2,
2013
     July 28,
2012
 

Disclosed as:

        

Current liabilities

   $ 6.6      $ 6.9      $ 6.7  

Non-current liabilities

     12.0        11.6        10.9  
  

 

 

    

 

 

    

 

 

 

Total warranty reserve

   $ 18.6      $ 18.5      $ 17.6  
  

 

 

    

 

 

    

 

 

 
Financial Instruments and Fair Value
Financial Instruments and Fair Value

11. 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.

 

Derivatives

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 their fair values, 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 reported as other comprehensive income (“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 transaction affects net income. Amounts excluded from the effectiveness calculation and any ineffective portions of the change in fair value of the derivative 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.

The following types of derivative instruments are utilized by Signet:

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 August 3, 2013 was $50.3 million (February 2, 2013 and July 28, 2012: $50.8 million and $52.3 million, respectively). These contracts have been designated as cash flow hedges and will be settled over the next 18 months (February 2, 2013 and July 28, 2012: 12 months and 17 months, respectively).

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.

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. As of August 3, 2013, no commodity derivative contracts were outstanding. As of February 2, 2013 and July 28, 2012, the total notional amount of commodity contracts outstanding was $187.6 million and $197.5 million, respectively. The contracts outstanding as of February 2, 2013 and July 28, 2012 were designated as cash flow hedges and will be settled over 11 months and 16 months, respectively.

The bank counterparties to the derivative instruments expose Signet to credit-related losses in the event of their non-performance. However, to mitigate that risk, Signet only contracts with counterparties that meet certain minimum requirements under its counterparty risk assessment process. As of August 3, 2013, 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 condensed consolidated balance sheets:

 

    

Derivative assets

 
          Fair value  

(in millions)

  

    Balance sheet location     

       August 3,    
2013
         February 2,    
2013
         July 28,    
2012
 

Derivatives designated as hedging instruments:

           

Foreign currency contracts

   Other current assets    $ 1.5      $ 1.0      $ 1.0  

Foreign currency contracts

   Other assets      0.1        —          0.2  

Commodity contracts

   Other current assets      —          2.8        3.1  

Commodity contracts

   Other assets      —          —          0.1  
     

 

 

    

 

 

    

 

 

 
      $ 1.6      $ 3.8      $ 4.4  
     

 

 

    

 

 

    

 

 

 

Derivatives not designated as hedging instruments:

           

Foreign currency contracts

   Other current assets      0.1        —          —    
     

 

 

    

 

 

    

 

 

 
      $ 0.1      $ —        $ —    
     

 

 

    

 

 

    

 

 

 

Total derivative assets

      $ 1.7      $ 3.8      $ 4.4  
     

 

 

    

 

 

    

 

 

 

 

     Derivative liabilities  
          Fair value  

(in millions)

       Balance sheet location             August 3,    
2013
         February 2,    
2013
        July 28,    
2012
 

Derivatives designated as hedging instruments:

          

Foreign currency contracts

   Other current liabilities    $ —         $ —        $ (0.2

Commodity contracts

   Other current liabilities      —           (4.6     (6.3
     

 

 

    

 

 

   

 

 

 
      $ —         $ (4.6   $ (6.5
     

 

 

    

 

 

   

 

 

 

Derivatives not designated as hedging instruments:

          

Foreign currency contracts

   Other current liabilities      —           —          (1.3
     

 

 

    

 

 

   

 

 

 
      $ —         $ —        $ (1.3
     

 

 

    

 

 

   

 

 

 

Total derivative liabilities

      $ —         $ (4.6   $ (7.8
     

 

 

    

 

 

   

 

 

 

The following tables summarize the effect of derivative instruments on the condensed consolidated income statements:

 

    Amount of gain (loss)
recognized in OCI on
derivatives

(Effective portion)
    Location of
gain (loss)
reclassified from
accumulated OCI

into income
 (Effective portion) 
    Amount of gain
(loss) reclassified
from accumulated OCI into
income (Effective portion)
 
            13 weeks ended                            13 weeks ended          

(in millions)

  August 3, 2013     July 28, 2012           August 3,
2013
    July 28,
2012
 

Derivatives in cash flow hedging relationships:

         

Foreign currency contracts

  $ 0.9      $ 0.9        Cost of sales      $ 0.2      $ 0.1   

Commodity contracts

    (9.5 )(1)      (2.1     Cost of sales        (0.2     5.8   
 

 

 

   

 

 

     

 

 

   

 

 

 

Total

  $ (8.6   $ (1.2     $ —        $ 5.9   
 

 

 

   

 

 

     

 

 

   

 

 

 

 

    Amount of gain (loss)
recognized in OCI on
derivatives

(Effective portion)
    Location of
gain (loss)
reclassified from
accumulated OCI
into income
 (Effective portion) 
    Amount of gain
(loss) reclassified
from accumulated OCI  into
income (Effective portion)
 
            26 weeks ended                            26 weeks ended          

(in millions)

  August 3, 2013     July 28, 2012           August 3,
2013
    July 28,
2012
 

Derivatives in cash flow hedging relationships:

         

Foreign currency contracts

  $ 1.4      $ 0.1        Cost of sales      $ 0.4      $ 0.2   

Commodity contracts

    (27.5 )(1)      (14.2     Cost of sales        0.6        14.3   
 

 

 

   

 

 

     

 

 

   

 

 

 

Total

  $ (26.1   $ (14.1     $ 1.0      $ 14.5   
 

 

 

   

 

 

     

 

 

   

 

 

 

 

(1) During the 13 and 26 weeks ended August 3, 2013, losses recognized in OCI on commodity derivative contracts designated in cash flow hedging relationships included $6.2 million and $25.8 million of losses related to the change in fair value of commodity derivative contracts the Company terminated prior to contract maturity in the respective periods.

 

     Amount of gain (loss)
recognized in income
on derivatives
     Location of gain (loss)
recognized in income on
derivatives
   Amount of gain (loss)
recognized in income
on derivatives
 
     13 weeks ended           26 weeks ended  

(in millions)

   August 3,
2013
     July 28,
2012
          August 3,
2013
     July 28,
2012
 

Derivatives not designated as hedging instruments:

              

Foreign currency contracts

   $ 3.0       $ 1.1       Other operating income, net    $ 2.8       $ 1.1   
  

 

 

    

 

 

       

 

 

    

 

 

 

Total

   $ 3.0       $ 1.1          $ 2.8       $ 1.1   
  

 

 

    

 

 

       

 

 

    

 

 

 

As of August 3, 2013, the ending balance of accumulated OCI for commodity derivative contracts designated in cash flow hedging relationships was $28.6 million, including $27.7 million related to the commodity derivative contracts terminated prior to contract maturity in Fiscal 2014. The Company expects approximately $22.1 million of net pre-tax derivative losses to be reclassified out of accumulated OCI into earnings within the next 12 months.

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:

 

     August 3, 2013      February 2, 2013     July 28, 2012  

(in millions)

   Carrying
Value
     Fair Value
(Level 2)
     Carrying
Value
    Fair Value
(Level 2)
    Carrying
Value
    Fair Value
(Level 2)
 

Assets:

              

Forward foreign currency contracts and swaps

   $ 1.7       $ 1.7       $ 1.0      $ 1.0      $ 1.2      $ 1.2   

Forward commodity contracts

     —           —           2.8        2.8        3.2        3.2   

Liabilities:

              

Forward foreign currency contracts and swaps

     —           —           —          —          (1.5     (1.5

Forward commodity contracts

     —           —           (4.6     (4.6     (6.3     (6.3

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 18 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.

Pensions
Pensions

12. Pensions

Signet operates a defined benefit pension plan in the UK (the “UK Plan”). The components of net periodic pension cost were as follows:

 

     13 weeks ended     26 weeks ended  

(in millions)

   August 3,
2013
    July 28,
2012
    August 3,
2013
    July 28,
2012
 

Components of net periodic pension benefit (cost):

        

Service cost

   $ (0.6   $ (0.9   $ (1.2   $ (1.8

Interest cost

     (2.3     (2.3     (4.6     (4.7

Expected return on UK Plan assets

     3.2        2.8        6.4        5.7   

Amortization of unrecognized prior service credit

     0.3        0.4        0.7        0.8   

Amortization of unrecognized actuarial loss

     (0.5     (0.8     (1.1     (1.6
  

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic pension benefit (cost)

   $ 0.1      $ (0.8   $ 0.2      $ (1.6
  

 

 

   

 

 

   

 

 

   

 

 

 

In the 26 weeks ended August 3, 2013, Signet contributed $2.8 million to the UK Plan and expects to contribute a minimum aggregate of $5.2 million at current exchange rates to the UK Plan in Fiscal 2014. These contributions are in accordance with an agreed upon deficit recovery plan and based on the results of the actuarial valuation as of April 5, 2012.

Commitments and Contingencies
Commitments and Contingencies

13. Commitments and contingencies

Legal proceedings

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. In June 2009, the arbitrator ruled that the arbitration agreements allowed the Claimants to proceed on a class-wide basis and attempt to seek class certification. Sterling challenged the ruling and the District Court vacated the arbitrator’s decision in July 2010. The Claimants appealed that order to the U.S. Court of Appeals for the Second Circuit. In July 2011, the Second Circuit reversed the District Court’s decision and instructed the District Court to confirm the Arbitrator’s Award (i.e., to allow the Claimants to move forward with a proposed class claim in arbitration). Sterling filed a petition for rehearing en banc of the Second Circuit panel’s decision, which was denied on September 6, 2011. Sterling filed a petition writ of certiorari with U.S. Supreme Court seeking review of the Second Circuit’s decision, which was denied on March 19, 2012. The arbitration proceeding has resumed. The parties engaged in fact discovery related to class certification issues through March 15, 2013. On June 21, 2013, pursuant to the briefing schedule ordered by the Arbitrator, the Claimants filed their motion for class certification, disclosed their experts, and produced their expert reports. Sterling’s response to Claimants’ class certification motion, Sterling’s disclosure of its experts and their reports, as well as any motions relating thereto are due on October 3, 2013. The Claimants’ reply brief, any expert rebuttal submissions, as well as any motions relating thereto are due on December 20, 2013. Expert discovery is ongoing, and all expert depositions must be completed by January 10, 2014. The parties have proposed that a hearing on Claimants’ motion for class certification be held during the week of January 20, 2014, or as soon thereafter as the Arbitrator’s schedule permits.

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 on May 13, 2013. Pursuant to the Court’s case management order, on June 21, 2013, the EEOC designated its experts and produced their reports. Sterling’s disclosure of its experts and their reports are due on October 3, 2013. The EEOC’s expert rebuttal submission is due on December 20, 2013. Expert discovery is ongoing, and all expert depositions must be completed by January 10, 2014. Any dispositive motions must be filed by February 4, 2014. In the event that no dispositive motions are filed, a status conference is set for February 7, 2014.

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 or not significant to Signet’s consolidated financial position.

Share-Based Compensation Expense
Share-Based Compensation Expense

14. Share-based compensation expense

Signet recorded share-based compensation expense of $3.5 million and $6.5 million for the 13 and 26 weeks ended August 3, 2013, respectively, related to the Omnibus Plans and Saving Share Plans ($3.0 million and $7.1 million for the 13 and 26 weeks ended July 28, 2012, respectively).

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

15. Loans, overdrafts and long-term debt

In May 2011, Signet entered into a $400 million senior unsecured multi-currency five year revolving credit facility agreement (the “Credit Facility”). The Credit Facility 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 Facility may be increased by an additional $200 million at the request of Signet. The Credit Facility has a five year term and matures in May 2016, at which time all amounts outstanding under the Credit Facility will be due and payable. The Credit Facility also contains various customary representations and warranties, financial reporting requirements and other affirmative and negative covenants. The Credit Facility requires that Signet maintain at all times a “Leverage Ratio” (as defined in the Credit Facility) to be no greater than 2.50 to 1.00 and a “Fixed Charge Coverage Ratio” (as defined in the Credit Facility) to be no less than 1.40 to 1.00, both determined as of the end of each fiscal quarter of Signet for the trailing twelve months.

At August 3, 2013, February 2, 2013, and July 28, 2012, there were no amounts outstanding under the Credit Facility, with no intra-period borrowings. Signet had stand-by letters of credit of $9.5 million as of August 3, 2013 and February 2, 2013 and $8.2 million as of July 28, 2012.

Acquisition
Acquisition

16. Acquisition

On October 29, 2012, Signet acquired the outstanding shares of Ultra Stores, Inc., a leading jewelry retailer operating primarily in outlet centers, from Crystal Financial LLC and its other stockholders (the “Ultra Acquisition”). As a result of the acquisition, Signet immediately increased its share of the US outlet channel for jewelry. The Company initially paid $56.7 million, net of acquired cash of $1.5 million, for the Ultra Acquisition including a $1.4 million working capital adjustment as of the closing, subject to post-closing procedures. 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.

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.

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:

 

(in millions)

   Initial
Allocation
    Final
Allocation
    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(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.
Principal Accounting Policies and Basis of Preparation (Policies)

Basis of preparation

Signet Jewelers Limited (“Signet” or the “Company”), including its subsidiaries, is a leading retailer of jewelry, watches and associated services. Signet manages its business as two geographical segments, 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, Ultra and various regional brands. Ultra was acquired by Signet in October 2012. The UK division’s retail stores operate under brands including H. Samuel and Ernest Jones.

These condensed consolidated financial statements included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted from this report, as is permitted by such rules and regulations. In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of the results for the interim periods. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and notes included in Signet’s Annual Report on Form 10-K for the year ended February 2, 2013.

Use of estimates

The preparation of these condensed consolidated financial statements, in conformity with US GAAP and SEC regulations for interim reporting, 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 condensed 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, inventory and deferred revenue, fair value of derivatives, depreciation and asset impairment, the valuation of employee benefits, income taxes and contingencies.

Fiscal year

The Company’s fiscal year ends on the Saturday nearest to January 31st. Fiscal 2014 is the 52 week year ending February 1, 2014 and Fiscal 2013 is the 53 week year ended February 2, 2013. Within these financial statements, the second quarter and year to date of the relevant fiscal years 2014 and 2013 refer to the 13 and 26 weeks ended August 3, 2013 and July 28, 2012, respectively.

Seasonality

Signet’s sales are seasonal, with the first and second quarters each normally accounting for slightly more than 20% of annual sales, the third quarter a little under 20% and the fourth quarter for about 40% of sales, with December being by far the most important month of the year. Sales made in November and December are known as the “Holiday Season.” Due to sales leverage, Signet’s operating income is even more seasonal; about 45% to 50% of Signet’s operating income normally occurs in the fourth quarter, comprised of nearly all of the UK division’s operating income and about 40% to 50% of the US division’s operating income.

Revenue recognition

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 and July 28, 2012: 46% and 46%, respectively). 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.

New 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.

New accounting pronouncements to be adopted in subsequent 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 is currently assessing the impact, if any, that the adoption of this accounting pronouncement will have on its consolidated financial statements.

Reclassification

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

Segment Information (Tables)
Segment Reporting Information, By Segment

13 weeks ended
    26 weeks ended  

(in millions)

   August 3,
2013
    July 28,
2012
    August 3,
2013
    July 28,
2012
 

Sales:

        

US

   $ 741.1      $ 701.9      $ 1,599.7      $ 1,453.4   

UK

     139.1        152.0        274.1        300.5   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total sales

   $ 880.2      $ 853.9      $ 1,873.8      $ 1,753.9   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss):

        

US

   $ 111.5      $ 117.3      $ 264.3      $ 255.0   

UK

     (0.8     (0.3     (4.9     (3.3

Unallocated(1)

     (5.2     (6.1     (11.1     (11.4
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating income

   $ 105.5      $ 110.9      $ 248.3      $ 240.3   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(in millions)

   August 3,
2013
     February 2,
2013
     July 28,
2012
 

Total assets:

        

US

   $ 3,055.8       $ 3,018.8       $ 2,683.8   

UK

     421.5         446.7         437.3   

Unallocated(1)

     150.5         250.3         197.9   
  

 

 

    

 

 

    

 

 

 

Total assets

   $ 3,627.8       $ 3,715.8       $ 3,319.0   
  

 

 

    

 

 

    

 

 

 

 

(1) Unallocated principally relates to corporate administrative costs, assets and liabilities.
Earnings Per Share (Tables)
Earnings Per Share, Basic and Diluted
     13 weeks ended      26 weeks ended  

(in millions, except per share amounts)

   August 3,
2013
     July 28,
2012
     August 3,
2013
     July 28,
2012
 

Net income

   $ 67.4       $ 70.7       $ 159.2       $ 153.2   
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic weighted average number of shares outstanding

     80.3         82.6         80.6         84.1   

Dilutive effect of share options

     0.4         0.4         0.4         0.6   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted weighted average number of shares outstanding

     80.7         83.0         81.0         84.7   
  

 

 

    

 

 

    

 

 

    

 

 

 

Earnings per share – basic

   $ 0.84       $ 0.86       $ 1.98       $ 1.82   

Earnings per share – diluted

   $ 0.84       $ 0.85       $ 1.97       $ 1.81   
Shareholders' Equity (Tables)

Share repurchase activity is as follows:

 

            Shares repurchased      Amount repurchased      Average repurchase price  
            26 weeks ended      26 weeks ended      26 weeks ended  
     Amount
Authorized
     August 3,
2013
     July 28,
2012
     August 3,
2013
     July 28,
2012
     August 3,
2013
     July 28,
2012
 
     (in millions)                    (in millions)      (in millions)                

2013 Program(1)

   $ 350.0         374,613         n/a       $ 25.0       $  n/a       $ 66.74       $ n/a   

2011 Program(2)

     350.0         749,245         6,425,296         50.1         287.2         66.92         44.70   
     

 

 

    

 

 

    

 

 

    

 

 

       

Total

        1,123,858         6,425,296       $ 75.1       $ 287.2         

 

(1) On June 14, 2013, the Board authorized a new program to repurchase 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 $325.0 million remaining as of August 3, 2013.
(2) In October 2011, the Board authorized a program to repurchase 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.

Dividends

 

Fiscal 2014:                               
     Cash dividend
per share
     Date Declared      Record Date    Payment Date(1)    Total
Dividends
 
                             (in millions)  

First quarter

   $ 0.15         March 27, 2013       May 3, 2013    May 29, 2013    $ 12.1   

Second quarter

   $ 0.15         June 14, 2013       August 2, 2013    August 28, 2013    $ 12.1 (2) 

 

(1) Signet’s dividend policy results in the dividend payment date being a quarter in arrears from the declaration date. As such, the fourth quarter Fiscal 2013 $0.12 per share cash dividend was paid out on February 27, 2013 in the aggregate amount of $9.8 million.
(2) As of August 3, 2013, $12.1 million has been recorded in accrued expenses and other current liabilities reflecting the cash dividend declared for the second quarter of Fiscal 2014, which is not presented in the condensed consolidated statement of cash flows as it is a non-cash transaction.
Reclassification Out of Accumulated OCI (Tables)
Reclassification Activity by Individual Accumulated OCI Component
Reclassification activity by individual accumulated OCI component:    Amounts
reclassified from
accumulated OCI
    Amounts
reclassified from
accumulated OCI
   

Income statement caption

     13 weeks ended
August 3, 2013
    26 weeks ended
August 3, 2013
     

(in millions)

                

(Gains) losses on cash flow hedges:

      

Foreign currency contracts

   $ (0.2   $ (0.4   Cost of sales (see Note 11)

Commodity contracts

     0.2        (0.6   Cost of sales (see Note 11)
  

 

 

   

 

 

   

Total before income tax

     —          (1.0  
     (0.1     0.3      Income taxes
  

 

 

   

 

 

   

Net of tax

     (0.1     (0.7  
  

 

 

   

 

 

   

Defined benefit pension plan items:

      

Amortization of unrecognized net prior service credit

     (0.3     (0.7   Selling, general and administrative expenses(1)

Amortization of unrecognized actuarial loss

     0.5        1.1      Selling, general and administrative expenses(1)
  

 

 

   

 

 

   

Total before income tax

     0.2        0.4     
     —          (0.1   Income taxes
  

 

 

   

 

 

   

Net of tax

     0.2        0.3     
  

 

 

   

 

 

   

Total reclassifications

   $ 0.1      $ (0.4  
  

 

 

   

 

 

   

 

(1) These items are included in the computation of net periodic pension benefit (cost). See Note 12 for additional information.
Accounts Receivable, net (Tables)

(in millions)

   August 3,
2013
     February 2,
2013
     July 28,
2012
 

Accounts receivable by portfolio segment, net:

        

US customer in-house finance receivables

   $ 1,142.0      $ 1,192.9      $ 1,024.2  

Other accounts receivable

     10.1        12.4        8.0  
  

 

 

    

 

 

    

 

 

 

Total accounts receivable, net

   $ 1,152.1      $ 1,205.3      $ 1,032.2  
  

 

 

    

 

 

    

 

 

 

Allowance for Credit Losses on US Customer In-House Finance Receivables:

 

(in millions)

   26 weeks
ended
August 3,
2013
    53 weeks
ended
February 2,
2013
    26 weeks
ended
July 28,
2012
 

Allowance on US portfolio, beginning of period

   $ (87.7   $ (78.1   $ (78.1

Charge-offs

     56.4        112.8        49.5   

Recoveries

     13.6        21.8        11.1   

Provision

     (71.4     (144.2     (61.1
  

 

 

   

 

 

   

 

 

 

Allowance on US portfolio, end of period

   $ (89.1   $ (87.7   $ (78.6

Ending receivable balance evaluated for impairment

     1,231.1        1,280.6        1,102.8   
  

 

 

   

 

 

   

 

 

 

Percentage of allowance on US portfolio, end of period

     7.2     6.8     7.1
  

 

 

   

 

 

   

 

 

 

US customer in-house finance receivables, net

   $ 1,142.0      $ 1,192.9      $ 1,024.2   
  

 

 

   

 

 

   

 

 

 

Credit Quality Indicator and Age Analysis of Past Due US Customer In-House Finance Receivables:

 

     August 3,
2013
    February 2,
2013
    July 28,
2012
 

(in millions)

   Gross     Valuation
allowance
    Gross     Valuation
allowance
    Gross     Valuation
allowance
 

Performing:

            

Current, aged 0-30 days

   $ 973.2     $ (29.9 )   $ 1,030.3     $ (33.8 )   $ 874.8     $ (27.0

Past due, aged 31-90 days

     206.1       (7.4 )     203.9       (7.5 )     183.1       (6.7

Non Performing:

            

Past due, aged more than 90 days

     51.8        (51.8     46.4       (46.4     44.9        (44.9 )   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   $ 1,231.1     $ (89.1 )   $ 1,280.6      $ (87.7 )   $ 1,102.8     $ (78.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     August 3,
2013
    February 2,
2013
    July 28,
2012
 

(as a percentage of the ending receivable balance)

      Gross        Valuation
allowance
       Gross        Valuation
allowance
       Gross        Valuation
allowance
 

Performing

     95.8     3.0     96.4     3.2     95.9     3.1

Non Performing

     4.2     100.0     3.6     100.0     4.1     100.0
         100.0     7.2       100.0     6.8        100.0     7.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Deferred Revenue (Tables)

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

 

(in millions)

   August 3,
2013
     February 2,
2013
     July 28,
2012
 

ESP deferred revenue

   $ 567.0      $ 549.7      $ 523.7  

Voucher promotions and other

     6.0        15.9        3.5  
  

 

 

    

 

 

    

 

 

 

Total deferred revenue

   $ 573.0      $ 565.6      $ 527.2  
  

 

 

    

 

 

    

 

 

 

Disclosed as:

        

Current liabilities

   $ 154.6      $ 159.7      $ 145.3  

Non-current liabilities

     418.4        405.9        381.9  
  

 

 

    

 

 

    

 

 

 

Total deferred revenue

   $ 573.0      $ 565.6      $ 527.2  
  

 

 

    

 

 

    

 

 

 
     13 weeks ended     26 weeks ended  

(in millions)

   August 3,
2013
    July 28,
2012
    August 3,
2013
    July 28,
2012
 

ESP deferred revenue, beginning of period

   $ 563.4      $  520.7      $ 549.7      $  511.7   

Plans sold

     46.1        44.4        101.4        94.2   

Revenues recognized

     (42.5     (41.4     (84.1     (82.2
  

 

 

   

 

 

   

 

 

   

 

 

 

ESP deferred revenue, end of period

   $ 567.0      $ 523.7      $ 567.0      $  523.7   
  

 

 

   

 

 

   

 

 

   

 

 

 
Warranty Reserve (Tables)
Warranty Reserve for Diamond and Gemstone Guarantee

Warranty reserve for diamond and gemstone guarantee, included in accrued expenses and other current liabilities, and other non-current liabilities, is as follows:

 

     13 weeks ended     26 weeks ended  

(in millions)

   August 3,
2013
    July 28,
2012
    August 3,
2013
    July 28,
2012
 

Warranty reserve, beginning of period

   $ 18.6     $ 15.1     $ 18.5     $ 15.1  

Warranty expense

     1.9       4.6       3.5       6.1  

Utilized

     (1.9 )     (2.1 )     (3.4 )     (3.6
  

 

 

   

 

 

   

 

 

   

 

 

 

Warranty reserve, end of period

   $ 18.6     $ 17.6     $ 18.6     $ 17.6  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(in millions)

   August 3,
2013
     February 2,
2013
     July 28,
2012
 

Disclosed as:

        

Current liabilities

   $ 6.6      $ 6.9      $ 6.7  

Non-current liabilities

     12.0        11.6        10.9  
  

 

 

    

 

 

    

 

 

 

Total warranty reserve

   $ 18.6      $ 18.5      $ 17.6  
  

 

 

    

 

 

    

 

 

 
Financial Instruments and Fair Value (Tables)

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

 

    

Derivative assets

 
          Fair value  

(in millions)

  

    Balance sheet location     

       August 3,    
2013
         February 2,    
2013
         July 28,    
2012
 

Derivatives designated as hedging instruments:

           

Foreign currency contracts

   Other current assets    $ 1.5      $ 1.0      $ 1.0  

Foreign currency contracts

   Other assets      0.1        —          0.2  

Commodity contracts

   Other current assets      —          2.8        3.1  

Commodity contracts

   Other assets      —          —          0.1  
     

 

 

    

 

 

    

 

 

 
      $ 1.6      $ 3.8      $ 4.4  
     

 

 

    

 

 

    

 

 

 

Derivatives not designated as hedging instruments:

           

Foreign currency contracts

   Other current assets      0.1        —          —    
     

 

 

    

 

 

    

 

 

 
      $ 0.1      $ —        $ —    
     

 

 

    

 

 

    

 

 

 

Total derivative assets

      $ 1.7      $ 3.8      $ 4.4  
     

 

 

    

 

 

    

 

 

 

 

     Derivative liabilities  
          Fair value  

(in millions)

       Balance sheet location             August 3,    
2013
         February 2,    
2013
        July 28,    
2012
 

Derivatives designated as hedging instruments:

          

Foreign currency contracts

   Other current liabilities    $ —         $ —        $ (0.2

Commodity contracts

   Other current liabilities      —           (4.6     (6.3
     

 

 

    

 

 

   

 

 

 
      $ —         $ (4.6   $ (6.5
     

 

 

    

 

 

   

 

 

 

Derivatives not designated as hedging instruments:

          

Foreign currency contracts

   Other current liabilities      —           —          (1.3
     

 

 

    

 

 

   

 

 

 
      $ —         $ —        $ (1.3
     

 

 

    

 

 

   

 

 

 

Total derivative liabilities

      $ —         $ (4.6   $ (7.8
     

 

 

    

 

 

   

 

 

 

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

 

     August 3, 2013      February 2, 2013     July 28, 2012  

(in millions)

   Carrying
Value
     Fair Value
(Level 2)
     Carrying
Value
    Fair Value
(Level 2)
    Carrying
Value
    Fair Value
(Level 2)
 

Assets:

              

Forward foreign currency contracts and swaps

   $ 1.7       $ 1.7       $ 1.0      $ 1.0      $ 1.2      $ 1.2   

Forward commodity contracts

     —           —           2.8        2.8        3.2        3.2   

Liabilities:

              

Forward foreign currency contracts and swaps

     —           —           —          —          (1.5     (1.5

Forward commodity contracts

     —           —           (4.6     (4.6     (6.3     (6.3

The following tables summarize the effect of derivative instruments on the condensed consolidated income statements:

 

    Amount of gain (loss)
recognized in OCI on
derivatives

(Effective portion)
    Location of
gain (loss)
reclassified from
accumulated OCI

into income
 (Effective portion) 
    Amount of gain
(loss) reclassified
from accumulated OCI into
income (Effective portion)
 
            13 weeks ended                            13 weeks ended          

(in millions)

  August 3, 2013     July 28, 2012           August 3,
2013
    July 28,
2012
 

Derivatives in cash flow hedging relationships:

         

Foreign currency contracts

  $ 0.9      $ 0.9        Cost of sales      $ 0.2      $ 0.1   

Commodity contracts

    (9.5 )(1)      (2.1     Cost of sales        (0.2     5.8   
 

 

 

   

 

 

     

 

 

   

 

 

 

Total

  $ (8.6   $ (1.2     $ —        $ 5.9   
 

 

 

   

 

 

     

 

 

   

 

 

 

 

    Amount of gain (loss)
recognized in OCI on
derivatives

(Effective portion)
    Location of
gain (loss)
reclassified from
accumulated OCI
into income
 (Effective portion) 
    Amount of gain
(loss) reclassified
from accumulated OCI  into
income (Effective portion)
 
            26 weeks ended                            26 weeks ended          

(in millions)

  August 3, 2013     July 28, 2012           August 3,
2013
    July 28,
2012
 

Derivatives in cash flow hedging relationships:

         

Foreign currency contracts

  $ 1.4      $ 0.1        Cost of sales      $ 0.4      $ 0.2   

Commodity contracts

    (27.5 )(1)      (14.2     Cost of sales        0.6        14.3   
 

 

 

   

 

 

     

 

 

   

 

 

 

Total

  $ (26.1   $ (14.1     $ 1.0      $ 14.5   
 

 

 

   

 

 

     

 

 

   

 

 

 

 

(1) During the 13 and 26 weeks ended August 3, 2013, losses recognized in OCI on commodity derivative contracts designated in cash flow hedging relationships included $6.2 million and $25.8 million of losses related to the change in fair value of commodity derivative contracts the Company terminated prior to contract maturity in the respective periods.
     Amount of gain (loss)
recognized in income
on derivatives
     Location of gain (loss)
recognized in income on
derivatives
   Amount of gain (loss)
recognized in income
on derivatives
 
     13 weeks ended           26 weeks ended  

(in millions)

   August 3,
2013
     July 28,
2012
          August 3,
2013
     July 28,
2012
 

Derivatives not designated as hedging instruments:

              

Foreign currency contracts

   $ 3.0       $ 1.1       Other operating income, net    $ 2.8       $ 1.1   
  

 

 

    

 

 

       

 

 

    

 

 

 

Total

   $ 3.0       $ 1.1          $ 2.8       $ 1.1   
  

 

 

    

 

 

       

 

 

    

 

 

 
Pensions (Tables)
Components Of Net Periodic Pension Cost

The components of net periodic pension cost were as follows:

 

     13 weeks ended     26 weeks ended  

(in millions)

   August 3,
2013
    July 28,
2012
    August 3,
2013
    July 28,
2012
 

Components of net periodic pension benefit (cost):

        

Service cost

   $ (0.6   $ (0.9   $ (1.2   $ (1.8

Interest cost

     (2.3     (2.3     (4.6     (4.7

Expected return on UK Plan assets

     3.2        2.8        6.4        5.7   

Amortization of unrecognized prior service credit

     0.3        0.4        0.7        0.8   

Amortization of unrecognized actuarial loss

     (0.5     (0.8     (1.1     (1.6
  

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic pension benefit (cost)

   $ 0.1      $ (0.8   $ 0.2      $ (1.6
  

 

 

   

 

 

   

 

 

   

 

 

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

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:

 

(in millions)

   Initial
Allocation
    Final
Allocation
    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(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.
Principal Accounting Policies and Basis of Preparation - Additional Information (Detail)
6 Months Ended 12 Months Ended
Aug. 3, 2013
Y
Jul. 28, 2012
Feb. 2, 2013
Principal Accounting Policies and Basis of Preparation [Line Items]
 
 
 
Approximate percentage of first quarter sales to annual sales
Slightly more than 20% 
 
 
Approximate percentage of second quarter sales to annual sales
Slightly more than 20% 
 
 
Approximate percentage of third quarter sales to annual sales
Little under 20% 
 
 
Approximate percentage of fourth quarter sales to annual sales
40.00% 
 
 
Revenue from sale over deferred period
14 
 
 
Revenue recognized in relation to cost incurred
45.00% 
46.00% 
46.00% 
Minimum
 
 
 
Principal Accounting Policies and Basis of Preparation [Line Items]
 
 
 
Approximate percentage of operating income in fourth quarter
45.00% 
 
 
Maximum
 
 
 
Principal Accounting Policies and Basis of Preparation [Line Items]
 
 
 
Approximate percentage of operating income in fourth quarter
50.00% 
 
 
US |
Minimum
 
 
 
Principal Accounting Policies and Basis of Preparation [Line Items]
 
 
 
Approximate percentage of operating income in fourth quarter
40.00% 
 
 
US |
Maximum
 
 
 
Principal Accounting Policies and Basis of Preparation [Line Items]
 
 
 
Approximate percentage of operating income in fourth quarter
50.00% 
 
 
Segment Information - Additional Information (Detail)
6 Months Ended
Aug. 3, 2013
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 6 Months Ended
Aug. 3, 2013
Jul. 28, 2012
Aug. 3, 2013
Jul. 28, 2012
Feb. 2, 2013
Segment Reporting Information [Line Items]
 
 
 
 
 
Total sales
$ 880.2 
$ 853.9 
$ 1,873.8 
$ 1,753.9 
 
Total operating income
105.5 
110.9 
248.3 
240.3 
 
Total assets
3,627.8 
3,319.0 
3,627.8 
3,319.0 
3,715.8 
Operating Segments
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Total sales
880.2 
853.9 
1,873.8 
1,753.9 
 
Operating Segments |
US
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Total sales
741.1 
701.9 
1,599.7 
1,453.4 
 
Total operating income
111.5 
117.3 
264.3 
255.0 
 
Total assets
3,055.8 
2,683.8 
3,055.8 
2,683.8 
3,018.8 
Operating Segments |
UNITED KINGDOM
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Total sales
139.1 
152.0 
274.1 
300.5 
 
Total operating income
(0.8)
(0.3)
(4.9)
(3.3)
 
Total assets
421.5 
437.3 
421.5 
437.3 
446.7 
Corporate, Non-Segment
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Total operating income
(5.2)1
(6.1)1
(11.1)1
(11.4)1
 
Total assets
$ 150.5 1
$ 197.9 1
$ 150.5 1
$ 197.9 1
$ 250.3 1
Income Taxes - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Aug. 3, 2013
Feb. 2, 2013
Aug. 3, 2013
US
Aug. 3, 2013
UNITED KINGDOM
Income Taxes [Line Items]
 
 
 
 
Tax years subject to examination
 
 
Tax years ending after November 1, 2008 
Tax years ending after January 31, 2010 
Unrecognized tax benefits
$ 0 
$ 4.5 
 
 
Accrued interest related to unrecognized tax benefits
$ 0 
$ 0.2 
 
 
Earnings Per Share, Basic And Diluted (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Aug. 3, 2013
Jul. 28, 2012
Aug. 3, 2013
Jul. 28, 2012
Earnings Per Share [Abstract]
 
 
 
 
Net income
$ 67.4 
$ 70.7 
$ 159.2 
$ 153.2 
Basic weighted average number of shares outstanding
80.3 
82.6 
80.6 
84.1 
Dilutive effect of share options
0.4 
0.4 
0.4 
0.6 
Diluted weighted average number of shares outstanding
80.7 
83.0 
81.0 
84.7 
Earnings per share - basic
$ 0.84 
$ 0.86 
$ 1.98 
$ 1.82 
Earnings per share - diluted
$ 0.84 
$ 0.85 
$ 1.97 
$ 1.81 
Earnings Per Share - Additional Information (Detail)
3 Months Ended 6 Months Ended
Aug. 3, 2013
Jul. 28, 2012
Aug. 3, 2013
Jul. 28, 2012
Restricted Stock
 
 
 
 
Earnings Per Share [Abstract]
 
 
 
 
Effect of shares excluded from basic weighted average number of shares
6,848,428 
4,579,232 
6,606,882 
3,108,956 
Non Vested Restricted Stock
 
 
 
 
Earnings Per Share [Abstract]
 
 
 
 
Anti-dilutive shares excluded from the calculation of earnings per share
1,071 
287,487 
53,421 
223,811 
Share Repurchase Activity (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
6 Months Ended 1 Months Ended 6 Months Ended 1 Months Ended 6 Months Ended
Aug. 3, 2013
Jul. 28, 2012
Jun. 14, 2013
2013 Program
Aug. 3, 2013
2013 Program
Oct. 31, 2011
2011 Program
Aug. 3, 2013
2011 Program
Jul. 28, 2012
2011 Program
Equity, Class of Treasury Stock [Line Items]
 
 
 
 
 
 
 
Amount Authorized
 
 
$ 350.0 
$ 350.0 1
$ 300.0 
$ 350.0 2
 
Shares repurchased
1,123,858 
6,425,296 
 
374,613 1
 
749,245 2
6,425,296 2
Amount repurchased
$ 75.1 
$ 287.2 
 
$ 25.0 1
 
$ 50.1 2
$ 287.2 2
Average repurchase price
 
 
 
$ 66.74 1
 
$ 66.92 2
$ 44.70 2
Share Repurchase Activity (Parenthetical) (Detail) (USD $)
In Millions, unless otherwise specified
1 Months Ended 6 Months Ended 1 Months Ended 6 Months Ended
Jun. 14, 2013
2013 Program
Aug. 3, 2013
2013 Program
Oct. 31, 2011
2011 Program
Aug. 3, 2013
2011 Program
Equity, Class of Treasury Stock [Line Items]
 
 
 
 
Stock repurchase program, authorized amount
$ 350.0 
$ 350.0 1
$ 300.0 
$ 350.0 2
Stock repurchase program, remaining available amount
 
$ 325 
 
 
Payment Of Dividends (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified
1 Months Ended 3 Months Ended 6 Months Ended
Feb. 27, 2013
Aug. 3, 2013
May 4, 2013
Jul. 28, 2012
Aug. 3, 2013
Jul. 28, 2012
Dividends Payable [Line Items]
 
 
 
 
 
 
Cash dividend per share
 
$ 0.15 
$ 0.15 
 
$ 0.15 
 
Date Declared
 
Jun. 14, 2013 
Mar. 27, 2013 
 
 
 
Record Date
 
Aug. 02, 2013 
May 03, 2013 
 
 
 
Payment Date
 
Aug. 28, 2013 1
May 29, 2013 1
 
 
 
Total Dividends
$ 9.8 
$ 12.1 2
$ 12.1 
$ 10.3 
$ 21.9 
$ 19.0 
Payment Of Dividends (Parenthetical) (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified
1 Months Ended 3 Months Ended 6 Months Ended
Feb. 27, 2013
Aug. 3, 2013
May 4, 2013
Feb. 2, 2013
Jul. 28, 2012
Aug. 3, 2013
Jul. 28, 2012
Dividends Payable [Line Items]
 
 
 
 
 
 
 
Dividend paid
$ 9.8 
$ 12.1 1
$ 12.1 
 
$ 10.3 
$ 21.9 
$ 19.0 
Dividend declared
 
$ 0.15 
 
$ 0.12 
$ 0.12 
$ 0.30 
$ 0.24 
Other current liabilities reflecting dividend
 
$ 12.1 
 
 
 
$ 12.1 
 
Reclassification Activity by Individual Accumulated OCI Component (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Aug. 3, 2013
Jul. 28, 2012
Aug. 3, 2013
Jul. 28, 2012
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
Gain (losses) on cash flow hedges reclassification, before tax
 
 
$ (1.0)
 
Gain (losses) on cash flow hedges reclassification, tax expense
(0.1)
1.9 
0.3 
5.0 
Gain (losses) on cash flow hedges reclassification, net of tax
(0.1)
(4.0)
(0.7)
(9.5)
Defined benefit plan reclassification, before tax
0.2 
 
0.4 
 
Defined benefit plan reclassification, tax expense
 
 
(0.1)
 
Defined benefit plan reclassification, net of tax
0.2 
 
0.3 
 
Total reclassifications
0.1 
 
(0.4)
 
Foreign Exchange Contract |
Cost of Sales
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
Gain (losses) on cash flow hedges reclassification, before tax
(0.2)
 
(0.4)
 
Commodity Contract |
Cost of Sales
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
Gain (losses) on cash flow hedges reclassification, before tax
0.2 
 
(0.6)
 
Prior Service Credit |
Selling, General and Administrative Expenses
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
Defined benefit plan reclassification, before tax
(0.3)1
 
(0.7)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
$ 0.5 1
 
$ 1.1 1
 
Accounts Receivable, net - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Aug. 3, 2013
D
Aug. 3, 2013
Other Accounts Receivable
Feb. 2, 2013
Other Accounts Receivable
Jul. 28, 2012
Other Accounts Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Percentage allowance on losses
100.00% 
 
 
 
Losses allowance maturity date, (in days)
90 
 
 
 
Finance receivable age, (in days)
90 
 
 
 
Gross accounts receivable
 
$ 9.1 
$ 13.0 
$ 8.7 
Valuation of allowance
 
$ 0.4 
$ 0.6 
$ 0.7 
Accounts Receivable by Portfolio Segment, Net (Detail) (USD $)
In Millions, unless otherwise specified
Aug. 3, 2013
Feb. 2, 2013
Jul. 28, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Total accounts receivable, net
$ 1,152.1 
$ 1,205.3 
$ 1,032.2 
US Customer In-House Finance Receivables
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Total accounts receivable, net
1,142.0 
1,192.9 
1,024.2 
Other Accounts Receivable
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Total accounts receivable, net
$ 10.1 
$ 12.4 
$ 8.0 
Allowance for Credit Losses On US Customer In-House Finance Receivables (Detail) (USD $)
In Millions, unless otherwise specified
6 Months Ended 12 Months Ended
Aug. 3, 2013
Jul. 28, 2012
Feb. 2, 2013
Financing Receivable, Allowance for Credit Losses [Line Items]
 
 
 
Allowance on US portfolio, end of period
$ (89.1)
$ (78.6)
$ (87.7)
Ending receivable balance evaluated for impairment
1,231.1 
1,102.8 
1,280.6 
Percentage of allowance on US portfolio, end of period
7.20% 
7.10% 
6.80% 
Accounts receivable, net
1,152.1 
1,032.2 
1,205.3 
US Customer In-House Finance Receivables
 
 
 
Financing Receivable, Allowance for Credit Losses [Line Items]
 
 
 
Allowance on US portfolio, beginning of period
(87.7)
(78.1)
(78.1)
Charge-offs
56.4 
49.5 
112.8 
Recoveries
13.6 
11.1 
21.8 
Provision
(71.4)
(61.1)
(144.2)
Allowance on US portfolio, end of period
(89.1)
(78.6)
(87.7)
Ending receivable balance evaluated for impairment
1,231.1 
1,102.8 
1,280.6 
Percentage of allowance on US portfolio, end of period
7.20% 
7.10% 
6.80% 
Accounts receivable, net
$ 1,142.0 
$ 1,024.2 
$ 1,192.9 
Credit Quality Indicator and Age Analysis of Past Due US Customer In-House Finance Receivables (Detail) (USD $)
In Millions, unless otherwise specified
Aug. 3, 2013
Feb. 2, 2013
Jul. 28, 2012
Financing Receivable, Allowance for Credit Losses [Line Items]
 
 
 
Gross, Value
$ 1,231.1 
$ 1,280.6 
$ 1,102.8 
Valuation Allowance, Value
(89.1)
(87.7)
(78.6)
Gross, Percentage
100.00% 
100.00% 
100.00% 
Valuation Allowance, Percentage
7.20% 
6.80% 
7.10% 
Performing Financing Receivable
 
 
 
Financing Receivable, Allowance for Credit Losses [Line Items]
 
 
 
Gross, Percentage
95.80% 
96.40% 
95.90% 
Valuation Allowance, Percentage
3.00% 
3.20% 
3.10% 
Performing Financing Receivable |
Current |
Aged 0-30 Days
 
 
 
Financing Receivable, Allowance for Credit Losses [Line Items]
 
 
 
Gross, Value
973.2 
1,030.3 
874.8 
Valuation Allowance, Value
(29.9)
(33.8)
(27.0)
Performing Financing Receivable |
Past Due |
Aged 31 - 90 Days
 
 
 
Financing Receivable, Allowance for Credit Losses [Line Items]
 
 
 
Gross, Value
206.1 
203.9 
183.1 
Valuation Allowance, Value
(7.4)
(7.5)
(6.7)
Nonperforming Financing Receivable
 
 
 
Financing Receivable, Allowance for Credit Losses [Line Items]
 
 
 
Gross, Percentage
4.20% 
3.60% 
4.10% 
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
51.8 
46.4 
44.9 
Valuation Allowance, Value
$ (51.8)
$ (46.4)
$ (44.9)
Deferred Revenue (Detail) (USD $)
In Millions, unless otherwise specified
Aug. 3, 2013
May 4, 2013
Feb. 2, 2013
Jul. 28, 2012
Apr. 28, 2012
Jan. 28, 2012
Deferred Revenue Arrangement [Line Items]
 
 
 
 
 
 
ESP deferred revenue
$ 567.0 
$ 563.4 
$ 549.7 
$ 523.7 
$ 520.7 
$ 511.7 
Voucher promotions and other
6.0 
 
15.9 
3.5 
 
 
Total deferred revenue
573.0 
 
565.6 
527.2 
 
 
Deferred revenue, current liabilities
154.6 
 
159.7 
145.3 
 
 
Deferred revenue, non-current liabilities
418.4 
 
405.9 
381.9 
 
 
Total deferred revenue
$ 573.0 
 
$ 565.6 
$ 527.2 
 
 
Deferred Revenue - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
Aug. 3, 2013
Feb. 2, 2013
Jul. 28, 2012
Deferred Revenue Arrangement [Line Items]
 
 
 
Current portion of deferred direct costs
$ 20.8 
$ 20.9 
$ 21.2 
Long-term portion of deferred direct costs
$ 58.8 
$ 56.9 
$ 53.7 
Warranty Deferred Revenue (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Aug. 3, 2013
Jul. 28, 2012
Aug. 3, 2013
Jul. 28, 2012
Deferred Revenue [Line Items]
 
 
 
 
ESP deferred revenue, beginning of period
$ 563.4 
$ 520.7 
$ 549.7 
$ 511.7 
Plans sold
46.1 
44.4 
101.4 
94.2 
Revenues recognized
(42.5)
(41.4)
(84.1)
(82.2)
ESP deferred revenue, end of period
$ 567.0 
$ 523.7 
$ 567.0 
$ 523.7 
Warranty Reserve Included within Accrued Expenses and Other Liabilities Non-Current (Detail) (Warranty Reserves, USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Aug. 3, 2013
Jul. 28, 2012
Aug. 3, 2013
Jul. 28, 2012
Warranty Reserves
 
 
 
 
Warranty Reserve [Line Items]
 
 
 
 
Warranty reserve, beginning of period
$ 18.6 
$ 15.1 
$ 18.5 
$ 15.1 
Warranty expense
1.9 
4.6 
3.5 
6.1 
Utilized
(1.9)
(2.1)
(3.4)
(3.6)
Warranty reserve, end of period
$ 18.6 
$ 17.6 
$ 18.6 
$ 17.6 
Warranty Reserves (Detail) (Warranty Reserves, USD $)
In Millions, unless otherwise specified
Aug. 3, 2013
May 4, 2013
Feb. 2, 2013
Jul. 28, 2012
Apr. 28, 2012
Jan. 28, 2012
Warranty Reserves
 
 
 
 
 
 
Warranty Reserve [Line Items]
 
 
 
 
 
 
Current liabilities
$ 6.6 
 
$ 6.9 
$ 6.7 
 
 
Non-current liabilities
12.0 
 
11.6 
10.9 
 
 
Total warranty reserve
$ 18.6 
$ 18.6 
$ 18.5 
$ 17.6 
$ 15.1 
$ 15.1 
Financial Instruments and Fair Value - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended 12 Months Ended 6 Months Ended 12 Months Ended 6 Months Ended
Aug. 3, 2013
Cash Flow Hedging
Aug. 3, 2013
Foreign Exchange Contract
Cash Flow Hedging
Jul. 28, 2012
Foreign Exchange Contract
Cash Flow Hedging
Feb. 2, 2013
Foreign Exchange Contract
Cash Flow Hedging
Aug. 3, 2013
Commodity Contract
Cash Flow Hedging
Jul. 28, 2012
Commodity Contract
Cash Flow Hedging
Feb. 2, 2013
Commodity Contract
Cash Flow Hedging
Aug. 3, 2013
Maximum
Financial Instruments and Fair Value [Line Items]
 
 
 
 
 
 
 
 
Total notional amount
 
$ 50.3 
$ 52.3 
$ 50.8 
$ 0 
$ 197.5 
$ 187.6 
 
Cash flow hedges settlement period
 
These contracts have been designated as cash flow hedges and will be settled over the next 18 months (February 2, 2013 and July 28, 2012 12 months and 17 months, respectively). 
 
 
The contracts outstanding as of February 2, 2013 and July 28, 2012 were designated as cash flow hedges and will be settled over 11 months and 16 months, respectively. 
 
 
 
Contracts maturity period
 
18 months 
17 months 
12 months 
 
16 months 
11 months 
18 months 
Accumulated other comprehensive ending balance related to commodity derivative contracts
 
 
 
 
28.6 
 
 
 
Accumulated other comprehensive income loss related to commodity derivative contracts, terminated contracts
 
 
 
 
27.7 
 
 
 
Derivative losses to be reclassified out of AOCI
$ 22.1 
 
 
 
 
 
 
 
Fair Value and Presentation of Derivative Instruments In Condensed Consolidated Balance Sheets (Detail) (USD $)
In Millions, unless otherwise specified
Aug. 3, 2013
Feb. 2, 2013
Jul. 28, 2012
Derivatives, Fair Value [Line Items]
 
 
 
Total derivative assets
$ 1.7 
$ 3.8 
$ 4.4 
Total derivative liabilities
 
(4.6)
(7.8)
Designated as Hedging Instrument
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Total derivative assets
1.6 
3.8 
4.4 
Total derivative liabilities
 
(4.6)
(6.5)
Designated as Hedging Instrument |
Other Current Assets |
Foreign Exchange Contract
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Total derivative assets
1.5 
1.0 
1.0 
Designated as Hedging Instrument |
Other Current Assets |
Commodity Contract
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Total derivative assets
 
2.8 
3.1 
Designated as Hedging Instrument |
Other Assets |
Foreign Exchange Contract
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Total derivative assets
0.1 
 
0.2 
Designated as Hedging Instrument |
Other Assets |
Commodity Contract
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Total derivative assets
 
 
0.1 
Designated as Hedging Instrument |
Other Current Liabilities |
Foreign Exchange Contract
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Total derivative liabilities
 
 
(0.2)
Designated as Hedging Instrument |
Other Current Liabilities |
Commodity Contract
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Total derivative liabilities
 
(4.6)
(6.3)
Not Designated as Hedging Instrument
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Total derivative assets
0.1 
 
 
Total derivative liabilities
 
 
(1.3)
Not Designated as Hedging Instrument |
Other Current Assets |
Foreign Exchange Contract
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Total derivative assets
0.1 
 
 
Not Designated as Hedging Instrument |
Other Current Liabilities |
Foreign Exchange Contract
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Total derivative liabilities
 
 
$ (1.3)
Effect of Derivative Instruments on Condensed Consolidated Income Statements (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Aug. 3, 2013
Jul. 28, 2012
Aug. 3, 2013
Jul. 28, 2012
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Amount of gain (loss) recognized in OCI on derivatives (Effective portion)
$ (8.6)
$ (1.2)
$ (26.1)
$ (14.1)
Amount of gain (loss) reclassified from accumulated OCI into income (Effective portion)
 
5.9 
1.0 
14.5 
Amount of gain (loss) recognized in income on derivatives
3.0 
1.1 
2.8 
1.1 
Cash Flow Hedging |
Foreign Exchange Contract |
Cost of Sales
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Amount of gain (loss) recognized in OCI on derivatives (Effective portion)
0.9 
0.9 
1.4 
0.1 
Amount of gain (loss) reclassified from accumulated OCI into income (Effective portion)
0.2 
0.1 
0.4 
0.2 
Cash Flow Hedging |
Commodity Contract |
Cost of Sales
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Amount of gain (loss) recognized in OCI on derivatives (Effective portion)
(9.5)1
(2.1)
(27.5)1
(14.2)
Amount of gain (loss) reclassified from accumulated OCI into income (Effective portion)
(0.2)
5.8 
0.6 
14.3 
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
$ 3.0 
$ 1.1 
$ 2.8 
$ 1.1 
Effect of Derivative Instruments on Condensed Consolidated Income Statements (Parenthetical) (Detail) (Cash Flow Hedging, Commodity Contract, USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Aug. 3, 2013
Aug. 3, 2013
Cash Flow Hedging |
Commodity Contract
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Amount of gain (loss) recognized in OCI on derivatives (Effective portion), terminated contracts
$ (6.2)
$ (25.8)
Fair Value of Financial Instruments Held or Issued (Detail) (USD $)
In Millions, unless otherwise specified
Aug. 3, 2013
Feb. 2, 2013
Jul. 28, 2012
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
 
Assets, Carrying Value
$ 3,627.8 
$ 3,715.8 
$ 3,319.0 
Liabilities, Carrying Value
(1,255.2)
(1,385.9)
(1,208.0)
Forward Foreign Currency Contracts
 
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
 
Assets, Carrying Value
1.7 
1.0 
1.2 
Liabilities, Carrying Value
 
 
(1.5)
Forward Commodity Contracts
 
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
 
Assets, Carrying Value
 
2.8 
3.2 
Liabilities, Carrying Value
 
(4.6)
(6.3)
Fair Value, Inputs, Level 2 |
Forward Foreign Currency Contracts
 
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
 
Assets, Fair Value
1.7 
1.0 
1.2 
Liabilities, Fair Value
 
 
(1.5)
Fair Value, Inputs, Level 2 |
Forward Commodity Contracts
 
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
 
Assets, Fair Value
 
2.8 
3.2 
Liabilities, Fair Value
 
$ (4.6)
$ (6.3)
Components Of Net Periodic Pension Cost (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Aug. 3, 2013
Jul. 28, 2012
Aug. 3, 2013
Jul. 28, 2012
Components of net periodic pension benefit (cost):
 
 
 
 
Service cost
$ (0.6)
$ (0.9)
$ (1.2)
$ (1.8)
Interest cost
(2.3)
(2.3)
(4.6)
(4.7)
Expected return on UK Plan assets
3.2 
2.8 
6.4 
5.7 
Amortization of unrecognized prior service credit
0.3 
0.4 
0.7 
0.8 
Amortization of unrecognized actuarial loss
(0.5)
(0.8)
(1.1)
(1.6)
Net periodic pension benefit (cost)
$ 0.1 
$ (0.8)
$ 0.2 
$ (1.6)
Pensions - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Aug. 3, 2013
Defined Benefit Plan Disclosure [Line Items]
 
Defined benefit plans, contribution
$ 2.8 
Fiscal Year 2014
 
Defined Benefit Plan Disclosure [Line Items]
 
Defined future contributions
$ 5.2 
Share Based Compensation Expense - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Aug. 3, 2013
Jul. 28, 2012
Aug. 3, 2013
Jul. 28, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Share-based compensation expense
$ 3.5 
$ 3.0 
$ 6.5 
$ 7.1 
Loans, Overdrafts and Long-Term Debt - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
1 Months Ended 6 Months Ended
Aug. 3, 2013
Feb. 2, 2013
Jul. 28, 2012
May 24, 2011
Revolving Credit Facility
Aug. 3, 2013
Revolving Credit Facility
Aug. 3, 2013
Financial Standby Letter of Credit
Feb. 2, 2013
Financial Standby Letter of Credit
Jul. 28, 2012
Financial Standby Letter of Credit
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
Credit facility, maximum borrowing capacity
 
 
 
$ 400 
 
 
 
 
Debt instrument, maturity period
 
 
 
5 years 
5 years 
 
 
 
Credit facility, increase
 
 
 
 
200 
 
 
 
Debt instrument, maturity date
 
 
 
 
May 2016 
 
 
 
Leverage ratio
 
 
 
 
250.00% 
 
 
 
Fixed charge coverage ratio
 
 
 
 
140.00% 
 
 
 
Borrowings were drawn on the facility
 
 
9.5 
9.5 
8.2 
Intra-period borrowings
$ 0 
 
 
 
 
 
 
 
Acquisition - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended 1 Months Ended 3 Months Ended 1 Months Ended 0 Months Ended
Aug. 3, 2013
Aug. 3, 2013
Oct. 29, 2012
Ultra Acquisition
Aug. 3, 2013
Ultra Acquisition
Oct. 29, 2012
Ultra Acquisition
Initial
May 15, 2013
Ultra Acquisition
Final Payment
Business Acquisition [Line Items]
 
 
 
 
 
 
Business acquisition cash paid, initial
 
 
 
 
$ 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 
$ 1.4 
 
$ 1.4 
 
 
Purchase Price Allocation to Net Assets Acquired (Detail) (USD $)
In Millions, unless otherwise specified
Oct. 29, 2012
Initial Allocation
 
Recognized amounts of assets acquired and liabilities assumed:
 
Inventories
$ 43.3 
Other current assets, excluding cash acquired
3.3 
Property and equipment
12.1 
Other assets
0.3 
Current liabilities
(19.5)
Other liabilities
(7.4)
Fair value of net assets acquired
32.1 
Goodwill
24.6 1
Total consideration
56.7 
Final Allocation
 
Recognized amounts of assets acquired and liabilities assumed:
 
Inventories
43.3 
Other current assets, excluding cash acquired
3.3 
Property and equipment
12.1 
Other assets
0.3 
Current liabilities
(19.5)
Other liabilities
(7.4)
Fair value of net assets acquired
32.1 
Goodwill
23.2 1
Total consideration
55.3 
Change
 
Recognized amounts of assets acquired and liabilities assumed:
 
Goodwill
(1.4)1
Total consideration
$ (1.4)