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(in millions) | Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | ||||||||
Wages and salaries | $ | 1,183.2 | $ | 1,222.8 | $ | 1,095.6 | |||||
Payroll taxes | 96.5 | 101.1 | 91.8 | ||||||||
Employee benefit plans | 19.3 | 17.5 | 9.6 | ||||||||
Share-based compensation | 8.0 | 16.4 | 12.1 | ||||||||
Total compensation and benefits | $ | 1,307.0 | $ | 1,357.8 | $ | 1,209.1 |
(in millions) | January 28, 2017 | January 30, 2016 | |||||
Cash and cash equivalents held in money markets and other accounts | $ | 65.6 | $ | 100.4 | |||
Cash equivalents from third-party credit card issuers | 31.1 | 35.4 | |||||
Cash on hand | 2.0 | 1.9 | |||||
Total cash and cash equivalents | $ | 98.7 | $ | 137.7 |
Buildings | 30 – 40 years when land is owned or the remaining term of lease, not to exceed 40 years | |
Leasehold improvements | Remaining term of lease, not to exceed 10 years | |
Furniture and fixtures | Ranging from 3 – 10 years | |
Equipment and software | Ranging from 3 – 5 years |
|
|
(in millions, except per share amounts) | Amount | ||
Cash consideration paid to Zale Corporation shareholders ($21 per share) | $ | 910.2 | |
Cash consideration paid for settlement of Zale Corporation stock options, restricted share awards and long term incentive plan awards | 69.6 | ||
Cash paid to extinguish Zale Corporation outstanding debt as of May 29, 2014 | 478.2 | ||
Total consideration transferred | $ | 1,458.0 |
(in millions) | Fair values | ||
Cash and cash equivalents | $ | 28.8 | |
Inventories | 856.7 | ||
Other current assets | 22.4 | ||
Property, plant and equipment | 103.6 | ||
Intangible assets: | |||
Trade names | 417.0 | ||
Favorable leases | 50.2 | ||
Deferred tax assets | 132.8 | ||
Other assets | 25.4 | ||
Current liabilities(1) | (206.3 | ) | |
Deferred revenue | (93.3 | ) | |
Unfavorable leases | (50.5 | ) | |
Unfavorable contracts | (65.6 | ) | |
Deferred tax liabilities | (234.0 | ) | |
Other liabilities | (28.6 | ) | |
Fair value of net assets acquired | 958.6 | ||
Goodwill | 499.4 | ||
Total consideration transferred | $ | 1,458.0 |
(in millions, except per share amounts) | Fiscal 2015 | ||
Pro forma sales | $ | 6,325.1 | |
Pro forma net income | $ | 462.1 | |
Pro forma earnings per share – basic | $ | 5.78 | |
Pro forma earnings per share – diluted | $ | 5.76 |
• | Acquisition accounting adjustments to reset deferred revenue associated with extended service plans sold by Zale Corporation prior to the Acquisition to fair value as of the acquisition date. The fair value of deferred revenue is determined based on the estimated costs remaining to be incurred for future obligations associated with the outstanding plans at the time of the Acquisition, plus a reasonable profit margin on the estimated costs. These adjustments also reflect the impact of deferring the revenue associated with the lifetime extended service plans over a 10-year period as disclosed in Note 1. |
• | Additional depreciation and amortization expenses that would have been recognized assuming fair value adjustments to the existing Zale Corporation assets acquired and liabilities assumed, including intangible assets, favorable and unfavorable leases, and unfavorable contracts and expense associated with the fair value step-up of inventory acquired. |
• | Tax impact of the Company’s amended capital structure as a result of the Acquisition and related issuance of $1,400.0 million of long-term debt. |
• | Adjustment of valuation allowances associated with US and Canadian deferred tax assets, including net operating loss carryforwards. |
• | Exclusion of acquisition-related costs of $58.0 million, which were included in the Company’s results of operations for the year ended January 31, 2015, respectively. Also excluded were costs associated with the unsecured bridge facility discussed in Note 20 of $4.0 million, which were expensed in Fiscal 2015. All amounts were reported within the Other segment. |
|
(in millions) | Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | ||||||||
Sales: | |||||||||||
Sterling Jewelers | $ | 3,930.4 | $ | 3,988.7 | $ | 3,765.0 | |||||
Zale Jewelry(1) | 1,549.7 | 1,568.2 | 1,068.7 | ||||||||
Piercing Pagoda | 263.1 | 243.2 | 146.9 | ||||||||
UK Jewelry | 647.1 | 737.6 | 743.6 | ||||||||
Other | 18.1 | 12.5 | 12.1 | ||||||||
Total sales | $ | 6,408.4 | $ | 6,550.2 | $ | 5,736.3 | |||||
Operating income (loss): | |||||||||||
Sterling Jewelers | $ | 715.8 | $ | 718.6 | $ | 624.3 | |||||
Zale Jewelry(2) | 62.2 | 44.3 | (1.9 | ) | |||||||
Piercing Pagoda(3) | 11.2 | 7.8 | (6.3 | ) | |||||||
UK Jewelry | 45.6 | 61.5 | 52.2 | ||||||||
Other(4) | (71.6 | ) | (128.5 | ) | (91.7 | ) | |||||
Total operating income | $ | 763.2 | $ | 703.7 | $ | 576.6 | |||||
Depreciation and amortization: | |||||||||||
Sterling Jewelers | $ | 112.7 | $ | 106.2 | $ | 95.7 | |||||
Zale Jewelry | 49.1 | 44.8 | 29.4 | ||||||||
Piercing Pagoda | 4.6 | 3.3 | 1.6 | ||||||||
UK Jewelry | 21.6 | 20.1 | 22.1 | ||||||||
Other | 0.8 | 0.9 | 0.9 | ||||||||
Total depreciation and amortization | $ | 188.8 | $ | 175.3 | $ | 149.7 | |||||
Capital additions: | |||||||||||
Sterling Jewelers | $ | 154.5 | $ | 141.6 | $ | 157.6 | |||||
Zale Jewelry | 85.0 | 47.7 | 35.1 | ||||||||
Piercing Pagoda | 12.7 | 10.2 | 6.9 | ||||||||
UK Jewelry | 25.7 | 26.4 | 20.2 | ||||||||
Other | 0.1 | 0.6 | 0.4 | ||||||||
Total capital additions | $ | 278.0 | $ | 226.5 | $ | 220.2 |
(2) | Includes net operating loss of $16.4 million, $23.1 million and $35.1 million related to the effects of purchase accounting associated with the acquisition of Zale Corporation for Fiscal 2017, Fiscal 2016 and Fiscal 2015, respectively. See Note 3 for additional information. |
(3) | Includes net operating loss of $0.4 million, $3.3 million and $10.8 million related to the effects of purchase accounting associated with the acquisition of Zale Corporation for Fiscal 2017, Fiscal 2016 and Fiscal 2015, respectively. See Note 3 for additional information. |
(4) | For Fiscal 2017, Other includes $28.4 million of integration costs for consulting expenses associated with information technology (“IT”) implementations, severance related to organizational changes and and expenses associated with the settlement of miscellaneous legal matters pending as of the date of the Zale acquisition. For Fiscal 2016, Other includes $78.9 million of transaction and integration costs primarily attributable to the impact of the appraisal rights legal settlement discussed in Note 25 and expenses associated with legal, tax, accounting, IT implementations and consulting services, as well as severance costs. For Fiscal 2015, Other includes $59.8 million of transaction and integration expenses associated with legal, tax, accounting, IT implementations and consulting services, as well as severance costs related to Zale and other management changes. |
(in millions) | January 28, 2017 | January 30, 2016 | |||||
Total assets: | |||||||
Sterling Jewelers | $ | 4,015.4 | $ | 3,788.0 | |||
Zale Jewelry | 1,940.7 | 1,955.1 | |||||
Piercing Pagoda | 141.6 | 141.8 | |||||
UK Jewelry | 372.6 | 427.8 | |||||
Other | 127.5 | 152.2 | |||||
Total assets | $ | 6,597.8 | $ | 6,464.9 | |||
Total long-lived assets: | |||||||
Sterling Jewelers | $ | 567.3 | $ | 519.7 | |||
Zale Jewelry | 1,050.1 | 1,013.7 | |||||
Piercing Pagoda | 61.4 | 53.3 | |||||
UK Jewelry | 70.7 | 75.3 | |||||
Other | 8.0 | 8.9 | |||||
Total long-lived assets | $ | 1,757.5 | $ | 1,670.9 | |||
Total liabilities: | |||||||
Sterling Jewelers | $ | 2,061.4 | $ | 1,982.2 | |||
Zale Jewelry | 524.3 | 530.3 | |||||
Piercing Pagoda | 28.2 | 28.5 | |||||
UK Jewelry | 110.6 | 132.0 | |||||
Other | 771.2 | 731.2 | |||||
Total liabilities | $ | 3,495.7 | $ | 3,404.2 |
(in millions) | Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | ||||||||
Sales by product: | |||||||||||
Diamonds and diamond jewelry | $ | 3,853.7 | $ | 3,918.1 | $ | 3,450.6 | |||||
Gold, silver jewelry, other products and services | 2,090.0 | 2,116.4 | 1,784.5 | ||||||||
Watches | 464.7 | 515.7 | 501.2 | ||||||||
Total sales | $ | 6,408.4 | $ | 6,550.2 | $ | 5,736.3 |
|
Pension plan | |||||||||||||||||||||||
(in millions) | Foreign currency translation | Losses on available-for-sale securities, net | Gains (losses) on cash flow hedges | Actuarial gains (losses) | Prior service credits (costs) | Accumulated other comprehensive (loss) income | |||||||||||||||||
Balance at February 1, 2014 | $ | (137.0 | ) | $ | — | $ | (14.3 | ) | $ | (42.5 | ) | $ | 15.3 | $ | (178.5 | ) | |||||||
OCI before reclassifications | (60.6 | ) | — | 6.2 | (15.8 | ) | (0.7 | ) | (70.9 | ) | |||||||||||||
Amounts reclassified from AOCI to net income | — | — | 12.5 | 1.6 | (1.3 | ) | 12.8 | ||||||||||||||||
Net current period OCI | (60.6 | ) | — | 18.7 | (14.2 | ) | (2.0 | ) | (58.1 | ) | |||||||||||||
Balance at January 31, 2015 | $ | (197.6 | ) | $ | — | $ | 4.4 | $ | (56.7 | ) | $ | 13.3 | $ | (236.6 | ) | ||||||||
OCI before reclassifications | (40.2 | ) | (0.4 | ) | (11.8 | ) | 10.9 | (0.5 | ) | (42.0 | ) | ||||||||||||
Amounts reclassified from AOCI to net income | — | — | 3.5 | 2.7 | (1.7 | ) | 4.5 | ||||||||||||||||
Net current period OCI | (40.2 | ) | (0.4 | ) | (8.3 | ) | 13.6 | (2.2 | ) | (37.5 | ) | ||||||||||||
Balance at January 30, 2016 | $ | (237.8 | ) | $ | (0.4 | ) | $ | (3.9 | ) | $ | (43.1 | ) | $ | 11.1 | $ | (274.1 | ) | ||||||
OCI before reclassifications | (25.6 | ) | — | 6.9 | (13.6 | ) | (0.4 | ) | (32.7 | ) | |||||||||||||
Amounts reclassified from AOCI to net income | — | — | (0.6 | ) | 1.2 | (1.5 | ) | (0.9 | ) | ||||||||||||||
Net current period OCI | (25.6 | ) | — | 6.3 | (12.4 | ) | (1.9 | ) | (33.6 | ) | |||||||||||||
Balance at January 28, 2017 | $ | (263.4 | ) | $ | (0.4 | ) | $ | 2.4 | $ | (55.5 | ) | $ | 9.2 | $ | (307.7 | ) |
Amounts reclassified from AOCI | |||||||||||||||
(in millions) | Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | Income statement caption | |||||||||||
(Gains) losses on cash flow hedges: | |||||||||||||||
Foreign currency contracts | $ | (2.7 | ) | $ | (0.4 | ) | $ | 1.3 | Cost of sales (see Note 17) | ||||||
Interest rate swaps | 2.2 | 2.7 | — | Interest expense, net (see Note 17) | |||||||||||
Commodity contracts | (0.2 | ) | 2.6 | 17.3 | Cost of sales (see Note 17) | ||||||||||
Total before income tax | (0.7 | ) | 4.9 | 18.6 | |||||||||||
Income taxes | 0.1 | (1.4 | ) | (6.1 | ) | ||||||||||
Net of tax | (0.6 | ) | 3.5 | 12.5 | |||||||||||
Defined benefit pension plan items: | |||||||||||||||
Amortization of unrecognized actuarial losses | 1.5 | 3.4 | 2.0 | Selling, general and administrative expenses(1) | |||||||||||
Amortization of unrecognized net prior service credits | (1.9 | ) | (2.2 | ) | (1.7 | ) | Selling, general and administrative expenses(1) | ||||||||
Total before income tax | (0.4 | ) | 1.2 | 0.3 | |||||||||||
Income taxes | 0.1 | (0.2 | ) | — | |||||||||||
Net of tax | (0.3 | ) | 1.0 | 0.3 | |||||||||||
Total reclassifications, net of tax | $ | (0.9 | ) | $ | 4.5 | $ | 12.8 |
(1) | These items are included in the computation of net periodic pension benefit (cost). See Note 19 for additional information. |
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(in millions) | Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | ||||||||
Income before income taxes: | |||||||||||
– US | $ | 424.0 | $ | 426.1 | $ | 380.8 | |||||
– Foreign | 289.8 | 231.7 | 159.8 | ||||||||
Total income before income taxes | $ | 713.8 | $ | 657.8 | $ | 540.6 | |||||
Current taxation: | |||||||||||
– US | $ | 137.6 | $ | 161.7 | $ | 199.5 | |||||
– Foreign | 3.9 | 3.5 | 7.8 | ||||||||
Deferred taxation: | |||||||||||
– US | 28.1 | 22.3 | (47.9 | ) | |||||||
– Foreign | 1.0 | 2.4 | (0.1 | ) | |||||||
Total income taxes | $ | 170.6 | $ | 189.9 | $ | 159.3 |
Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | ||||||
US federal income tax rates | 35.0 | % | 35.0 | % | 35.0 | % | ||
US state income taxes | 1.9 | % | 2.7 | % | 2.1 | % | ||
Differences between US federal and foreign statutory income tax rates | (0.2 | )% | (0.5 | )% | (0.8 | )% | ||
Expenditures permanently disallowable for tax purposes, net of permanent tax benefits | 0.4 | % | 0.5 | % | 0.8 | % | ||
Disallowable transaction costs | 0.1 | % | 2.1 | % | 0.7 | % | ||
Impact of global reinsurance arrangements | (5.4 | )% | (2.4 | )% | (1.5 | )% | ||
Impact of global financing arrangements | (8.2 | )% | (8.7 | )% | (7.2 | )% | ||
Other items | 0.3 | % | 0.2 | % | 0.4 | % | ||
Effective tax rate | 23.9 | % | 28.9 | % | 29.5 | % |
January 28, 2017 | January 30, 2016 | ||||||||||||||||||||||
(in millions) | Assets | (Liabilities) | Total | Assets | (Liabilities) | Total | |||||||||||||||||
Intangible assets | $ | — | $ | (160.1 | ) | $ | (160.1 | ) | $ | — | $ | (156.2 | ) | $ | (156.2 | ) | |||||||
US property, plant and equipment | — | (86.2 | ) | (86.2 | ) | — | (73.6 | ) | (73.6 | ) | |||||||||||||
Foreign property, plant and equipment | 5.0 | — | 5.0 | 5.4 | — | 5.4 | |||||||||||||||||
Inventory valuation | — | (289.4 | ) | (289.4 | ) | — | (252.8 | ) | (252.8 | ) | |||||||||||||
Allowances for doubtful accounts | 60.4 | — | 60.4 | 54.1 | — | 54.1 | |||||||||||||||||
Revenue deferral | 216.0 | — | 216.0 | 188.5 | — | 188.5 | |||||||||||||||||
Derivative instruments | — | — | — | 1.6 | — | 1.6 | |||||||||||||||||
Straight-line lease payments | 37.5 | — | 37.5 | 35.0 | — | 35.0 | |||||||||||||||||
Deferred compensation | 16.5 | — | 16.5 | 13.9 | — | 13.9 | |||||||||||||||||
Retirement benefit obligations | — | (6.1 | ) | (6.1 | ) | — | (10.3 | ) | (10.3 | ) | |||||||||||||
Share-based compensation | 5.7 | — | 5.7 | 7.4 | — | 7.4 | |||||||||||||||||
Other temporary differences | 51.0 | — | 51.0 | 52.4 | — | 52.4 | |||||||||||||||||
Net operating losses and foreign tax credits | 69.2 | — | 69.2 | 80.6 | — | 80.6 | |||||||||||||||||
Value of foreign capital losses | 11.3 | — | 11.3 | 13.4 | — | 13.4 | |||||||||||||||||
Total gross deferred tax assets (liabilities) | $ | 472.6 | $ | (541.8 | ) | $ | (69.2 | ) | $ | 452.3 | $ | (492.9 | ) | $ | (40.6 | ) | |||||||
Valuation allowance | (31.5 | ) | — | (31.5 | ) | (31.9 | ) | — | (31.9 | ) | |||||||||||||
Deferred tax assets (liabilities) | $ | 441.1 | $ | (541.8 | ) | $ | (100.7 | ) | $ | 420.4 | $ | (492.9 | ) | $ | (72.5 | ) | |||||||
Disclosed as: | |||||||||||||||||||||||
Non-current assets | $ | 0.7 | $ | — | |||||||||||||||||||
Non-current liabilities | (101.4 | ) | (72.5 | ) | |||||||||||||||||||
Deferred tax assets (liabilities) | $ | (100.7 | ) | $ | (72.5 | ) |
(in millions) | Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | ||||||||
Unrecognized tax benefits, beginning of period | $ | 11.4 | $ | 11.4 | $ | 4.6 | |||||
Acquired existing unrecognized tax benefits | — | — | 4.3 | ||||||||
Increases related to current year tax positions | 2.4 | 2.0 | 3.5 | ||||||||
Prior year tax positions: | |||||||||||
Increases | — | — | — | ||||||||
Decreases | — | — | (0.1 | ) | |||||||
Cash settlements | — | — | — | ||||||||
Lapse of statute of limitations | (1.9 | ) | (1.9 | ) | (0.4 | ) | |||||
Difference on foreign currency translation | 0.1 | (0.1 | ) | (0.5 | ) | ||||||
Unrecognized tax benefits, end of period | $ | 12.0 | $ | 11.4 | $ | 11.4 |
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(in millions) | Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | ||||||||
Interest income from in-house customer finance programs | $ | 282.5 | $ | 252.6 | $ | 217.9 | |||||
Other | 0.1 | (1.7 | ) | (2.6 | ) | ||||||
Other operating income, net | $ | 282.6 | $ | 250.9 | $ | 215.3 |
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(in millions) | January 28, 2017 | January 30, 2016 | |||||
Accounts receivable by portfolio segment, net: | |||||||
Sterling Jewelers customer in-house finance receivables | $ | 1,813.3 | $ | 1,725.9 | |||
Zale customer in-house finance receivables | 33.4 | 13.6 | |||||
Other accounts receivable | 11.3 | 16.9 | |||||
Total accounts receivable, net | $ | 1,858.0 | $ | 1,756.4 |
(in millions) | Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | ||||||||
Beginning balance: | $ | (130.0 | ) | $ | (113.1 | ) | $ | (97.8 | ) | ||
Charge-offs, net | 203.4 | 173.6 | 144.7 | ||||||||
Recoveries | 35.1 | 35.3 | 27.5 | ||||||||
Provision | (247.2 | ) | (225.8 | ) | (187.5 | ) | |||||
Ending balance | $ | (138.7 | ) | $ | (130.0 | ) | $ | (113.1 | ) | ||
Ending receivable balance evaluated for impairment | 1,952.0 | 1,855.9 | 1,666.0 | ||||||||
Sterling Jewelers customer in-house finance receivables, net | $ | 1,813.3 | $ | 1,725.9 | $ | 1,552.9 | |||||
January 28, 2017 | January 30, 2016 | January 31, 2015 | |||||||||||||||||||||
(in millions) | Gross | Valuation allowance | Gross | Valuation allowance | Gross | Valuation allowance | |||||||||||||||||
Performing: | |||||||||||||||||||||||
Current, aged 0 – 30 days | $ | 1,538.2 | $ | (47.2 | ) | $ | 1,473.0 | $ | (45.4 | ) | $ | 1,332.2 | $ | (41.1 | ) | ||||||||
Past due, aged 31 – 60 days | 282.0 | (9.0 | ) | 259.6 | (8.3 | ) | 230.2 | (7.5 | ) | ||||||||||||||
Past due, aged 61 – 90 days | 51.6 | (2.3 | ) | 49.2 | (2.2 | ) | 40.9 | (1.8 | ) | ||||||||||||||
Non Performing: | |||||||||||||||||||||||
Past due, aged more than 90 days | 80.2 | (80.2 | ) | 74.1 | (74.1 | ) | 62.7 | (62.7 | ) | ||||||||||||||
$ | 1,952.0 | $ | (138.7 | ) | $ | 1,855.9 | $ | (130.0 | ) | $ | 1,666.0 | $ | (113.1 | ) |
January 28, 2017 | January 30, 2016 | January 31, 2015 | |||||||||||||||
(as a % of the ending receivable balance) | Gross | Valuation allowance | Gross | Valuation allowance | Gross | Valuation allowance | |||||||||||
Performing: | |||||||||||||||||
Current, aged 0 – 30 days | 78.8 | % | 3.1 | % | 79.4 | % | 3.1 | % | 80.0 | % | 3.1 | % | |||||
Past due, aged 31 – 60 days | 14.5 | % | 3.2 | % | 14.0 | % | 3.2 | % | 13.8 | % | 3.3 | % | |||||
Past due, aged 61 – 90 days | 2.6 | % | 4.5 | % | 2.6 | % | 4.5 | % | 2.4 | % | 4.4 | % | |||||
Non Performing: | |||||||||||||||||
Past due, aged more than 90 days | 4.1 | % | 100.0 | % | 4.0 | % | 100.0 | % | 3.8 | % | 100.0 | % | |||||
100.0 | % | 7.1 | % | 100.0 | % | 7.0 | % | 100.0 | % | 6.8 | % |
|
(in millions) | January 28, 2017 | January 30, 2016 | |||||
Raw materials | $ | 60.8 | $ | 81.8 | |||
Finished goods | 2,388.5 | 2,372.1 | |||||
Total inventories | $ | 2,449.3 | $ | 2,453.9 |
(in millions) | Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | ||||||||
Inventory reserve, beginning of period | $ | 43.2 | $ | 28.4 | $ | 16.3 | |||||
Charged to profit | 57.3 | 87.6 | 44.6 | ||||||||
Utilization(1) | (57.3 | ) | (72.8 | ) | (32.5 | ) | |||||
Inventory reserve, end of period | $ | 43.2 | $ | 43.2 | $ | 28.4 |
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(in millions) | January 28, 2017 | January 30, 2016 | |||||
Land and buildings | $ | 33.5 | $ | 34.7 | |||
Leasehold improvements | 632.4 | 591.7 | |||||
Furniture and fixtures | 761.0 | 688.7 | |||||
Equipment | 137.7 | 133.6 | |||||
Software | 211.0 | 181.9 | |||||
Construction in progress | 96.7 | 46.2 | |||||
Total | $ | 1,872.3 | $ | 1,676.8 | |||
Accumulated depreciation and amortization | (1,049.4 | ) | (949.2 | ) | |||
Property, plant and equipment, net | $ | 822.9 | $ | 727.6 |
|
(in millions) | Sterling Jewelers | Zale Jewelry | Piercing Pagoda | UK Jewelry | Other | Total | |||||||||||||||||
Balance at January 31, 2015 | $ | 23.2 | $ | 492.4 | $ | — | $ | — | $ | 3.6 | $ | 519.2 | |||||||||||
Impact of foreign exchange | — | (3.7 | ) | — | — | — | (3.7 | ) | |||||||||||||||
Balance at January 30, 2016 | $ | 23.2 | $ | 488.7 | $ | — | $ | — | $ | 3.6 | $ | 515.5 | |||||||||||
Impact of foreign exchange | — | 2.1 | — | — | — | 2.1 | |||||||||||||||||
Balance at January 28, 2017 | $ | 23.2 | $ | 490.8 | $ | — | $ | — | $ | 3.6 | $ | 517.6 |
January 28, 2017 | January 30, 2016 | ||||||||||||||||||||||||
(in millions) | Balance sheet location | Gross carrying amount | Accumulated amortization | Net carrying amount | Gross carrying amount | Accumulated amortization | Net carrying amount | ||||||||||||||||||
Definite-lived intangible assets: | |||||||||||||||||||||||||
Trade names | Intangible assets, net | $ | 1.4 | $ | (0.8 | ) | $ | 0.6 | $ | 1.4 | $ | (0.5 | ) | $ | 0.9 | ||||||||||
Favorable leases | Intangible assets, net | 47.6 | (36.0 | ) | 11.6 | 47.0 | (22.3 | ) | 24.7 | ||||||||||||||||
Total definite-lived intangible assets | 49.0 | (36.8 | ) | 12.2 | 48.4 | (22.8 | ) | 25.6 | |||||||||||||||||
Indefinite-lived trade names | Intangible assets, net | 404.8 | — | 404.8 | 402.2 | — | 402.2 | ||||||||||||||||||
Total intangible assets, net | $ | 453.8 | $ | (36.8 | ) | $ | 417.0 | $ | 450.6 | $ | (22.8 | ) | $ | 427.8 | |||||||||||
Definite-lived intangible liabilities: | |||||||||||||||||||||||||
Unfavorable leases | Other liabilities | $ | (48.3 | ) | $ | 38.2 | $ | (10.1 | ) | $ | (47.7 | ) | $ | 23.7 | $ | (24.0 | ) | ||||||||
Unfavorable contracts | Other liabilities | (65.6 | ) | 33.5 | (32.1 | ) | (65.6 | ) | 28.1 | (37.5 | ) | ||||||||||||||
Total intangible liabilities, net | $ | (113.9 | ) | $ | 71.7 | $ | (42.2 | ) | $ | (113.3 | ) | $ | 51.8 | $ | (61.5 | ) |
(in millions) | Trade names | Favorable leases | Total | ||||||||
2018 | $ | 0.3 | $ | 9.0 | $ | 9.3 | |||||
2019 | 0.2 | 2.4 | 2.6 | ||||||||
2020 | 0.1 | 0.2 | 0.3 | ||||||||
2021 | — | — | — | ||||||||
2022 | — | — | — | ||||||||
Thereafter | — | — | — | ||||||||
Total | $ | 0.6 | $ | 11.6 | $ | 12.2 |
(in millions) | Unfavorable leases | Unfavorable contracts | Total | ||||||||
2018 | $ | (7.6 | ) | $ | (5.4 | ) | $ | (13.0 | ) | ||
2019 | (2.2 | ) | (5.4 | ) | (7.6 | ) | |||||
2020 | (0.3 | ) | (5.4 | ) | (5.7 | ) | |||||
2021 | — | (5.4 | ) | (5.4 | ) | ||||||
2022 | — | (5.4 | ) | (5.4 | ) | ||||||
Thereafter | — | (5.1 | ) | (5.1 | ) | ||||||
Total | $ | (10.1 | ) | $ | (32.1 | ) | $ | (42.2 | ) |
|
(in millions) | January 28, 2017 | January 30, 2016 | |||||
Deferred ESP selling costs | $ | 86.1 | $ | 79.4 | |||
Investments(1) | 27.2 | 26.8 | |||||
Other assets(2) | 51.8 | 48.4 | |||||
Total other assets | $ | 165.1 | $ | 154.6 |
(1) | See Note 16 for additional detail. |
(2) | Amounts adjusted to reflect the reclassification of capitalized debt issuance costs in accordance with Signet’s adoption of FASB ASU 2015-03 during the first quarter of Fiscal 2017. See Note 2 for additional information. |
|
January 28, 2017 | January 30, 2016 | ||||||||||||||||||||||
(in millions) | Cost | Unrealized Gain (Loss) | Fair Value | Cost | Unrealized Gain (Loss) | Fair Value | |||||||||||||||||
US Treasury securities | $ | 8.8 | $ | (0.7 | ) | $ | 8.1 | $ | 9.2 | $ | (0.4 | ) | $ | 8.8 | |||||||||
US government agency securities | 4.6 | (0.2 | ) | 4.4 | 4.0 | — | 4.0 | ||||||||||||||||
Corporate bonds and notes | 11.0 | (0.1 | ) | 10.9 | 10.8 | — | 10.8 | ||||||||||||||||
Corporate equity securities | 3.5 | 0.3 | 3.8 | 3.5 | (0.3 | ) | 3.2 | ||||||||||||||||
Total investments | $ | 27.9 | $ | (0.7 | ) | $ | 27.2 | $ | 27.5 | $ | (0.7 | ) | $ | 26.8 |
(in millions) | Cost | Fair Value | |||||
Less than one year | $ | 1.8 | $ | 1.2 | |||
Year two through year five | 13.4 | 13.2 | |||||
Year six through year ten | 9.2 | 9.0 | |||||
After ten years | — | — | |||||
Total investment in debt securities | $ | 24.4 | $ | 23.4 |
|
Fair value of derivative assets | |||||||||
(in millions) | Balance sheet location | January 28, 2017 | January 30, 2016 | ||||||
Derivatives designated as hedging instruments: | |||||||||
Foreign currency contracts | Other current assets | $ | 1.4 | $ | 0.8 | ||||
Commodity contracts | Other current assets | — | 0.6 | ||||||
Interest rate swaps | Other assets | 0.4 | — | ||||||
1.8 | 1.4 | ||||||||
Derivatives not designated as hedging instruments: | |||||||||
Foreign currency contracts | Other current assets | 1.8 | — | ||||||
Total derivative assets | $ | 3.6 | $ | 1.4 |
Fair value of derivative liabilities | |||||||||
(in millions) | Balance sheet location | January 28, 2017 | January 30, 2016 | ||||||
Derivatives designated as hedging instruments: | |||||||||
Foreign currency contracts | Other current liabilities | $ | (0.2 | ) | $ | — | |||
Commodity contracts | Other current liabilities | (3.4 | ) | (0.8 | ) | ||||
Interest rate swaps | Other liabilities | — | (3.4 | ) | |||||
(3.6 | ) | (4.2 | ) | ||||||
Derivatives not designated as hedging instruments: | |||||||||
Foreign currency contracts | Other current liabilities | — | (0.2 | ) | |||||
Total derivative liabilities | $ | (3.6 | ) | $ | (4.4 | ) |
(in millions) | January 28, 2017 | January 30, 2016 | |||||
Foreign currency contracts | $ | 4.1 | $ | 1.4 | |||
Commodity contracts | (2.1 | ) | (3.7 | ) | |||
Interest rate swaps | 0.4 | (3.4 | ) | ||||
Gains (losses) recorded in AOCI | $ | 2.4 | $ | (5.7 | ) |
(in millions) | Income statement caption | Fiscal 2017 | Fiscal 2016 | ||||||
Gains recorded in AOCI, beginning of period | $ | 1.4 | $ | 0.9 | |||||
Current period gains recognized in OCI | 5.4 | 0.9 | |||||||
Gains reclassified from AOCI to net income | Cost of sales | (2.7 | ) | (0.4 | ) | ||||
Gains recorded in AOCI, end of period | $ | 4.1 | $ | 1.4 |
(in millions) | Income statement caption | Fiscal 2017 | Fiscal 2016 | ||||||
(Losses) gains recorded in AOCI, beginning of period | $ | (3.7 | ) | $ | 5.7 | ||||
Current period gains (losses) recognized in OCI | 1.8 | (12.0 | ) | ||||||
(Gains) losses reclassified from AOCI to net income | Cost of sales | (0.2 | ) | 2.6 | |||||
Losses recorded in AOCI, end of period | $ | (2.1 | ) | $ | (3.7 | ) |
(in millions) | Income statement caption | Fiscal 2017 | Fiscal 2016 | ||||||
Losses recorded in AOCI, beginning of period | $ | (3.4 | ) | $ | — | ||||
Current period gains (losses) recognized in OCI | 1.6 | (6.1 | ) | ||||||
Losses reclassified from AOCI to net income | Interest expense, net | 2.2 | 2.7 | ||||||
Gains (losses) recorded in AOCI, end of period | $ | 0.4 | $ | (3.4 | ) |
Income statement caption | Amount of gains (losses) recognized in net income | ||||||||
(in millions) | Fiscal 2017 | Fiscal 2016 | |||||||
Derivatives not designated as hedging instruments: | |||||||||
Foreign currency contracts | Other operating income, net | $ | 6.3 | $ | (4.5 | ) |
|
January 28, 2017 | January 30, 2016 | ||||||||||||||||||||||
(in millions) | Carrying Value | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Carrying Value | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | |||||||||||||||||
Assets: | |||||||||||||||||||||||
US Treasury securities | $ | 8.1 | $ | 8.1 | $ | — | $ | 8.8 | $ | 8.8 | $ | — | |||||||||||
Corporate equity securities | 3.8 | 3.8 | — | 3.2 | 3.2 | — | |||||||||||||||||
Foreign currency contracts | 3.2 | — | 3.2 | 0.8 | — | 0.8 | |||||||||||||||||
Commodity contracts | — | — | — | 0.6 | — | 0.6 | |||||||||||||||||
Interest rate swaps | 0.4 | — | 0.4 | — | — | — | |||||||||||||||||
US government agency securities | 4.4 | — | 4.4 | 4.0 | — | 4.0 | |||||||||||||||||
Corporate bonds and notes | 10.9 | — | 10.9 | 10.8 | — | 10.8 | |||||||||||||||||
Total assets | $ | 30.8 | $ | 11.9 | $ | 18.9 | $ | 28.2 | $ | 12.0 | $ | 16.2 | |||||||||||
Liabilities: | |||||||||||||||||||||||
Foreign currency contracts | $ | (0.2 | ) | $ | — | $ | (0.2 | ) | $ | (0.2 | ) | $ | — | $ | (0.2 | ) | |||||||
Commodity contracts | (3.4 | ) | — | (3.4 | ) | (0.8 | ) | — | (0.8 | ) | |||||||||||||
Interest rate swaps | — | — | — | (3.4 | ) | — | (3.4 | ) | |||||||||||||||
Total liabilities | $ | (3.6 | ) | $ | — | $ | (3.6 | ) | $ | (4.4 | ) | $ | — | $ | (4.4 | ) |
January 28, 2017 | January 30, 2016 | ||||||||||||||
(in millions) | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||
Long-term debt | |||||||||||||||
Senior notes (Level 2) | $ | 393.7 | $ | 391.2 | $ | 392.8 | $ | 405.9 | |||||||
Securitization facility (Level 2) | 599.7 | 600.0 | 599.6 | 600.0 | |||||||||||
Term loan (Level 2) | 345.1 | 348.6 | 361.3 | 365.0 | |||||||||||
Capital lease obligations (Level 2) | — | — | 0.2 | 0.2 | |||||||||||
Total | $ | 1,338.5 | $ | 1,339.8 | $ | 1,353.9 | $ | 1,371.1 |
|
(in millions) | Fiscal 2017 | Fiscal 2016 | |||||
Change in UK Plan assets: | |||||||
Fair value at beginning of year | $ | 266.2 | $ | 295.8 | |||
Actual return on UK Plan assets | 18.2 | (4.8 | ) | ||||
Employer contributions | 3.3 | 2.5 | |||||
Members’ contributions | 0.6 | 0.7 | |||||
Benefits paid | (9.9 | ) | (11.2 | ) | |||
Foreign currency translation | (30.8 | ) | (16.8 | ) | |||
Fair value at end of year | $ | 247.6 | $ | 266.2 |
(in millions) | Fiscal 2017 | Fiscal 2016 | |||||
Change in benefit obligation: | |||||||
Benefit obligation at beginning of year | $ | 214.9 | $ | 258.8 | |||
Service cost | 2.0 | 2.6 | |||||
Past service cost | 0.5 | 0.6 | |||||
Interest cost | 7.2 | 7.7 | |||||
Members’ contributions | 0.6 | 0.7 | |||||
Actuarial (gain) loss | 24.1 | (29.4 | ) | ||||
Benefits paid | (9.9 | ) | (11.2 | ) | |||
Foreign currency translation | (23.7 | ) | (14.9 | ) | |||
Benefit obligation at end of year | $ | 215.7 | $ | 214.9 | |||
Funded status at end of year | $ | 31.9 | $ | 51.3 |
(in millions) | January 28, 2017 | January 30, 2016 | |||||
Amounts recognized in the balance sheet consist of: | |||||||
Non-current assets | $ | 31.9 | $ | 51.3 | |||
Non-current liabilities | — | — | |||||
Net asset recognized | $ | 31.9 | $ | 51.3 |
(in millions) | January 28, 2017 | January 30, 2016 | January 31, 2015 | ||||||||
Net actuarial losses | $ | (55.5 | ) | $ | (43.1 | ) | $ | (56.7 | ) | ||
Net prior service credits | 9.2 | 11.1 | 13.3 |
(in millions) | Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | ||||||||
Components of net periodic pension benefit (cost): | |||||||||||
Service cost | $ | (2.0 | ) | $ | (2.6 | ) | $ | (2.3 | ) | ||
Interest cost | (7.2 | ) | (7.7 | ) | (9.7 | ) | |||||
Expected return on UK Plan assets | 10.4 | 11.5 | 14.7 | ||||||||
Amortization of unrecognized actuarial losses | (1.5 | ) | (3.4 | ) | (2.0 | ) | |||||
Amortization of unrecognized net prior service credits | 1.9 | 2.2 | 1.7 | ||||||||
Net periodic pension benefit | $ | 1.6 | $ | — | $ | 2.4 | |||||
Other changes in assets and benefit obligations recognized in OCI | (17.8 | ) | 14.4 | (21.0 | ) | ||||||
Total recognized in net periodic pension benefit (cost) and OCI | $ | (16.2 | ) | $ | 14.4 | $ | (18.6 | ) |
January 28, 2017 | January 30, 2016 | ||||
Assumptions used to determine benefit obligations (at the end of the year): | |||||
Discount rate | 2.90 | % | 3.60 | % | |
Salary increases | 2.00 | % | 2.50 | % | |
Assumptions used to determine net periodic pension costs (at the start of the year): | |||||
Discount rate | 3.60 | % | 3.00 | % | |
Expected return on UK Plan assets | 4.20 | % | 3.90 | % | |
Salary increases | 2.50 | % | 2.50 | % |
Fair value measurements as of January 28, 2017 | Fair value measurements as of January 30, 2016 | ||||||||||||||||||||||||||||||
(in millions) | Total | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant Unobservable inputs (Level 3) | Total | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | |||||||||||||||||||||||
Asset category: | |||||||||||||||||||||||||||||||
Diversified equity securities | $ | 22.3 | $ | — | $ | 22.3 | $ | — | $ | 21.2 | $ | 11.3 | $ | 9.9 | $ | — | |||||||||||||||
Diversified growth funds | 80.9 | 40.7 | 40.2 | — | 90.5 | 44.8 | 45.7 | — | |||||||||||||||||||||||
Fixed income – government bonds | 81.0 | — | 81.0 | — | 87.1 | — | 87.1 | — | |||||||||||||||||||||||
Fixed income – corporate bonds | 48.1 | — | 48.1 | — | 53.6 | — | 53.6 | — | |||||||||||||||||||||||
Property | 11.8 | — | — | 11.8 | 13.0 | — | — | 13.0 | |||||||||||||||||||||||
Cash | 3.5 | 3.5 | — | — | 0.8 | 0.8 | — | — | |||||||||||||||||||||||
Total | $ | 247.6 | $ | 44.2 | $ | 191.6 | $ | 11.8 | $ | 266.2 | $ | 56.9 | $ | 196.3 | $ | 13.0 |
(in millions) | Significant unobservable inputs (Level 3) | ||
Balance as of January 31, 2015 | $ | 12.3 | |
Actual return on assets | 0.7 | ||
Balance as of January 30, 2016 | $ | 13.0 | |
Actual return on assets | (1.2 | ) | |
Balance as of January 28, 2017 | $ | 11.8 |
(in millions) | Expected benefit payments | ||
Fiscal 2018 | $ | 9.7 | |
Fiscal 2019 | 7.3 | ||
Fiscal 2020 | 7.6 | ||
Fiscal 2021 | 8.0 | ||
Fiscal 2022 | 8.2 | ||
Thereafter | $ | 42.6 |
Fair value measurements as of January 28, 2017 | Fair value measurements as of January 30, 2016 | ||||||||||||||||||||||
(in millions) | Total | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Total | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | |||||||||||||||||
Assets: | |||||||||||||||||||||||
Corporate-owned life insurance plans | $ | 7.5 | $ | — | $ | 7.5 | $ | 8.3 | $ | — | $ | 8.3 | |||||||||||
Money market funds | 29.6 | 29.6 | — | 25.1 | 25.1 | — | |||||||||||||||||
Total assets | $ | 37.1 | $ | 29.6 | $ | 7.5 | $ | 33.4 | $ | 25.1 | $ | 8.3 |
|
(in millions) | January 28, 2017 | January 30, 2016 | |||||
Debt: | |||||||
Senior unsecured notes due 2024, net of unamortized discount | $ | 398.8 | $ | 398.6 | |||
Securitization facility | 600.0 | 600.0 | |||||
Senior unsecured term loan | 348.6 | 365.0 | |||||
Revolving credit facility | 56.0 | — | |||||
Bank overdrafts | 14.2 | 24.4 | |||||
Capital lease obligations | — | 0.2 | |||||
Total debt | $ | 1,417.6 | $ | 1,388.2 | |||
Less: Current portion of loans and overdrafts | (91.1 | ) | (57.7 | ) | |||
Less: Unamortized capitalized debt issuance fees(1) | (8.6 | ) | (9.5 | ) | |||
Total long-term debt | $ | 1,317.9 | $ | 1,321.0 |
(1) | Presentation of capitalized debt issuance costs was revised during the first quarter of Fiscal 2017 upon adoption of ASU 2015-03. See Note 2 for additional information. |
|
(in millions) | January 28, 2017 | January 30, 2016 | |||||
Accrued compensation | $ | 105.8 | $ | 162.3 | |||
Other liabilities | 33.0 | 36.0 | |||||
Other taxes | 45.1 | 45.1 | |||||
Payroll taxes | 9.9 | 11.5 | |||||
Accrued expenses | 284.4 | 243.4 | |||||
Total accrued expenses and other current liabilities | $ | 478.2 | $ | 498.3 |
(in millions) | Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | ||||||||
Sales return reserve, beginning of period | $ | 14.0 | $ | 15.3 | $ | 8.4 | |||||
Net adjustment(1) | (1.0 | ) | (1.3 | ) | 6.9 | ||||||
Sales return reserve, end of period | $ | 13.0 | $ | 14.0 | $ | 15.3 |
(in millions) | Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | ||||||||
Warranty reserve, beginning of period | $ | 41.9 | $ | 44.9 | $ | 19.1 | |||||
Warranty obligations acquired | — | — | 28.4 | ||||||||
Warranty expense(1) | 11.5 | 10.8 | 7.4 | ||||||||
Utilized(2) | (13.4 | ) | (13.8 | ) | (10.0 | ) | |||||
Warranty reserve, end of period | $ | 40.0 | $ | 41.9 | $ | 44.9 |
(1) | Includes impact of acquisition accounting adjustment related to warranty obligations acquired in the Zale Acquisition. |
(2) | Includes impact of foreign exchange translation. |
(in millions) | January 28, 2017 | January 30, 2016 | |||||
Disclosed as: | |||||||
Current liabilities(1) | $ | 13.0 | $ | 12.3 | |||
Non-current liabilities (see Note 23) | 27.0 | 29.6 | |||||
Total warranty reserve | $ | 40.0 | $ | 41.9 |
(1) | Included within accrued expenses above. |
|
(in millions) | January 28, 2017 | January 30, 2016 | |||||
Sterling Jewelers ESP deferred revenue | $ | 737.4 | $ | 715.1 | |||
Zale ESP deferred revenue | 168.2 | 146.1 | |||||
Voucher promotions and other | 30.3 | 28.2 | |||||
Total deferred revenue | $ | 935.9 | $ | 889.4 | |||
Disclosed as: | |||||||
Current liabilities | $ | 276.9 | $ | 260.3 | |||
Non-current liabilities | 659.0 | 629.1 | |||||
Total deferred revenue | $ | 935.9 | $ | 889.4 |
(in millions) | Fiscal 2017 | Fiscal 2016 | |||||
Sterling Jewelers ESP deferred revenue, beginning of period | $ | 715.1 | $ | 668.9 | |||
Plans sold | 290.8 | 281.2 | |||||
Revenue recognized | (268.5 | ) | (235.0 | ) | |||
Sterling Jewelers ESP deferred revenue, end of period | $ | 737.4 | $ | 715.1 |
(in millions) | Fiscal 2017 | Fiscal 2016 | |||||
Zale ESP deferred revenue, beginning of period | $ | 146.1 | $ | 120.3 | |||
Plans sold(1) | 150.1 | 138.6 | |||||
Revenue recognized | (128.0 | ) | (112.8 | ) | |||
Zale ESP deferred revenue, end of period | $ | 168.2 | $ | 146.1 |
(1) | Includes impact of foreign exchange translation. |
|
(in millions) | January 28, 2017 | January 30, 2016 | |||||
Straight-line rent | $ | 87.2 | $ | 81.2 | |||
Deferred compensation | 40.7 | 36.5 | |||||
Warranty reserve | 27.0 | 29.6 | |||||
Lease loss reserve | 1.3 | 3.4 | |||||
Other liabilities | 57.5 | 79.8 | |||||
Total other liabilities | $ | 213.7 | $ | 230.5 |
(in millions) | Fiscal 2017 | Fiscal 2016 | |||||
Lease loss reserve, beginning of period | $ | 3.4 | $ | 4.2 | |||
Adjustments, net | (1.5 | ) | (0.2 | ) | |||
Utilization(1) | (0.6 | ) | (0.6 | ) | |||
Lease loss reserve, end of period | $ | 1.3 | $ | 3.4 |
(1) | Includes impact of foreign exchange translation. |
|
(in millions) | Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | ||||||||
Minimum rentals | $ | 524.4 | $ | 525.7 | $ | 462.9 | |||||
Contingent rent | 10.2 | 15.3 | 14.0 | ||||||||
Sublease income | (0.6 | ) | (0.7 | ) | (0.8 | ) | |||||
Total | $ | 534.0 | $ | 540.3 | $ | 476.1 |
(in millions) | |||
Fiscal 2018 | $ | 450.0 | |
Fiscal 2019 | 370.6 | ||
Fiscal 2020 | 329.8 | ||
Fiscal 2021 | 301.2 | ||
Fiscal 2022 | 265.6 | ||
Thereafter | 901.1 | ||
Total | $ | 2,618.3 |
|
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Sales | $ | — | $ | — | $ | 6,141.9 | $ | 266.5 | $ | — | $ | 6,408.4 | |||||||||||
Cost of sales | — | — | (3,997.2 | ) | (50.4 | ) | — | (4,047.6 | ) | ||||||||||||||
Gross margin | — | — | 2,144.7 | 216.1 | — | 2,360.8 | |||||||||||||||||
Selling, general and administrative expenses | (1.3 | ) | — | (1,775.1 | ) | (103.8 | ) | — | (1,880.2 | ) | |||||||||||||
Other operating income, net | — | — | 293.8 | (11.2 | ) | — | 282.6 | ||||||||||||||||
Operating (loss) income | (1.3 | ) | — | 663.4 | 101.1 | — | 763.2 | ||||||||||||||||
Intra-entity interest income (expense) | — | 18.8 | (188.4 | ) | 169.6 | — | — | ||||||||||||||||
Interest expense, net | — | (19.8 | ) | (16.6 | ) | (13.0 | ) | — | (49.4 | ) | |||||||||||||
(Loss) income before income taxes | (1.3 | ) | (1.0 | ) | 458.4 | 257.7 | — | 713.8 | |||||||||||||||
Income taxes | — | 0.2 | (175.1 | ) | 4.3 | — | (170.6 | ) | |||||||||||||||
Equity in income of subsidiaries | 544.5 | — | 276.4 | 295.7 | (1,116.6 | ) | — | ||||||||||||||||
Net income (loss) | 543.2 | (0.8 | ) | 559.7 | 557.7 | (1,116.6 | ) | 543.2 | |||||||||||||||
Dividends on redeemable convertible preferred shares | (11.9 | ) | — | — | — | — | (11.9 | ) | |||||||||||||||
Net income (loss) attributable to common shareholders | $ | 531.3 | $ | (0.8 | ) | $ | 559.7 | $ | 557.7 | $ | (1,116.6 | ) | $ | 531.3 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Sales | $ | — | $ | — | $ | 6,444.8 | $ | 105.4 | $ | — | $ | 6,550.2 | |||||||||||
Cost of sales | — | — | (4,089.3 | ) | (20.5 | ) | — | (4,109.8 | ) | ||||||||||||||
Gross margin | — | — | 2,355.5 | 84.9 | — | 2,440.4 | |||||||||||||||||
Selling, general and administrative expenses | (2.2 | ) | — | (1,942.7 | ) | (42.7 | ) | — | (1,987.6 | ) | |||||||||||||
Other operating income, net | — | — | 254.8 | (3.9 | ) | — | 250.9 | ||||||||||||||||
Operating (loss) income | (2.2 | ) | — | 667.6 | 38.3 | — | 703.7 | ||||||||||||||||
Intra-entity interest income (expense) | — | 18.8 | (186.0 | ) | 167.2 | — | — | ||||||||||||||||
Interest expense, net | — | (19.9 | ) | (14.8 | ) | (11.2 | ) | — | (45.9 | ) | |||||||||||||
(Loss) income before income taxes | (2.2 | ) | (1.1 | ) | 466.8 | 194.3 | — | 657.8 | |||||||||||||||
Income taxes | — | 0.2 | (192.7 | ) | 2.6 | — | (189.9 | ) | |||||||||||||||
Equity in income of subsidiaries | 470.1 | — | 281.4 | 293.9 | (1,045.4 | ) | — | ||||||||||||||||
Net income (loss) | 467.9 | (0.9 | ) | 555.5 | 490.8 | (1,045.4 | ) | 467.9 | |||||||||||||||
Dividends on redeemable convertible preferred shares | — | — | — | — | — | — | |||||||||||||||||
Net income (loss) attributable to common shareholders | $ | 467.9 | $ | (0.9 | ) | $ | 555.5 | $ | 490.8 | $ | (1,045.4 | ) | $ | 467.9 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Sales | $ | — | $ | — | $ | 5,671.4 | $ | 64.9 | $ | — | $ | 5,736.3 | |||||||||||
Cost of sales | — | — | (3,647.0 | ) | (15.1 | ) | — | (3,662.1 | ) | ||||||||||||||
Gross margin | — | — | 2,024.4 | 49.8 | — | 2,074.2 | |||||||||||||||||
Selling, general and administrative expenses | (2.5 | ) | — | (1,683.6 | ) | (26.8 | ) | — | (1,712.9 | ) | |||||||||||||
Other operating income, net | — | — | 220.8 | (5.5 | ) | — | 215.3 | ||||||||||||||||
Operating (loss) income | (2.5 | ) | — | 561.6 | 17.5 | — | 576.6 | ||||||||||||||||
Intra-entity interest income (expense) | — | 13.2 | (129.6 | ) | 116.4 | — | — | ||||||||||||||||
Interest expense, net | — | (13.9 | ) | (14.8 | ) | (7.3 | ) | — | (36.0 | ) | |||||||||||||
(Loss) income before income taxes | (2.5 | ) | (0.7 | ) | 417.2 | 126.6 | — | 540.6 | |||||||||||||||
Income taxes | — | 0.1 | (159.5 | ) | 0.1 | — | (159.3 | ) | |||||||||||||||
Equity in income of subsidiaries | 383.8 | — | 579.8 | 565.4 | (1,529.0 | ) | — | ||||||||||||||||
Net income (loss) | 381.3 | (0.6 | ) | 837.5 | 692.1 | (1,529.0 | ) | 381.3 | |||||||||||||||
Dividends on redeemable convertible preferred shares | — | — | — | — | — | — | |||||||||||||||||
Net income (loss) attributable to common shareholders | $ | 381.3 | $ | (0.6 | ) | $ | 837.5 | $ | 692.1 | $ | (1,529.0 | ) | $ | 381.3 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net income (loss) | $ | 543.2 | $ | (0.8 | ) | $ | 559.7 | $ | 557.7 | $ | (1,116.6 | ) | $ | 543.2 | |||||||||
Other comprehensive (loss) income: | |||||||||||||||||||||||
Foreign currency translation adjustments | (25.6 | ) | — | (31.2 | ) | 5.6 | 25.6 | (25.6 | ) | ||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||
Unrealized gain (loss) | — | — | — | — | — | — | |||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||
Unrealized gain (loss) | 6.9 | — | 6.9 | — | (6.9 | ) | 6.9 | ||||||||||||||||
Reclassification adjustment for losses to net income | (0.6 | ) | — | (0.6 | ) | — | 0.6 | (0.6 | ) | ||||||||||||||
Pension plan: | |||||||||||||||||||||||
Actuarial gain (loss) | (13.6 | ) | — | (13.6 | ) | — | 13.6 | (13.6 | ) | ||||||||||||||
Reclassification adjustment to net income for amortization of actuarial losses | 1.2 | — | 1.2 | — | (1.2 | ) | 1.2 | ||||||||||||||||
Prior service costs | (0.4 | ) | — | (0.4 | ) | — | 0.4 | (0.4 | ) | ||||||||||||||
Reclassification adjustment to net income for amortization of net prior service credits | (1.5 | ) | — | (1.5 | ) | — | 1.5 | (1.5 | ) | ||||||||||||||
Total other comprehensive (loss) income | (33.6 | ) | — | (39.2 | ) | 5.6 | 33.6 | (33.6 | ) | ||||||||||||||
Total comprehensive income (loss) | $ | 509.6 | $ | (0.8 | ) | $ | 520.5 | $ | 563.3 | $ | (1,083.0 | ) | $ | 509.6 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net income (loss) | $ | 467.9 | $ | (0.9 | ) | $ | 555.5 | $ | 490.8 | $ | (1,045.4 | ) | $ | 467.9 | |||||||||
Other comprehensive (loss) income: | |||||||||||||||||||||||
Foreign currency translation adjustments | (40.2 | ) | — | (44.8 | ) | 4.6 | 40.2 | (40.2 | ) | ||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||
Unrealized gain (loss) | (0.4 | ) | — | — | (0.4 | ) | 0.4 | (0.4 | ) | ||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||
Unrealized gain (loss) | (11.8 | ) | — | (11.8 | ) | — | 11.8 | (11.8 | ) | ||||||||||||||
Reclassification adjustment for losses to net income | 3.5 | — | 3.5 | — | (3.5 | ) | 3.5 | ||||||||||||||||
Pension plan: | |||||||||||||||||||||||
Actuarial gain (loss) | 10.9 | — | 10.9 | — | (10.9 | ) | 10.9 | ||||||||||||||||
Reclassification adjustment to net income for amortization of actuarial losses | 2.7 | — | 2.7 | — | (2.7 | ) | 2.7 | ||||||||||||||||
Prior service costs | (0.5 | ) | — | (0.5 | ) | — | 0.5 | (0.5 | ) | ||||||||||||||
Reclassification adjustment to net income for amortization of net prior service credits | (1.7 | ) | — | (1.7 | ) | — | 1.7 | (1.7 | ) | ||||||||||||||
Total other comprehensive (loss) income | (37.5 | ) | — | (41.7 | ) | 4.2 | 37.5 | (37.5 | ) | ||||||||||||||
Total comprehensive income (loss) | $ | 430.4 | $ | (0.9 | ) | $ | 513.8 | $ | 495.0 | $ | (1,007.9 | ) | $ | 430.4 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net income (loss) | $ | 381.3 | $ | (0.6 | ) | $ | 837.5 | $ | 692.1 | $ | (1,529.0 | ) | $ | 381.3 | |||||||||
Other comprehensive (loss) income: | |||||||||||||||||||||||
Foreign currency translation adjustments | (60.6 | ) | — | (61.1 | ) | 4.6 | 56.5 | (60.6 | ) | ||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||
Unrealized gain (loss) | — | — | — | — | — | — | |||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||
Unrealized gain (loss) | 6.2 | — | 6.2 | — | (6.2 | ) | 6.2 | ||||||||||||||||
Reclassification adjustment for losses to net income | 12.5 | — | 12.5 | — | (12.5 | ) | 12.5 | ||||||||||||||||
Pension plan: | |||||||||||||||||||||||
Actuarial gain (loss) | (15.8 | ) | — | (15.8 | ) | — | 15.8 | (15.8 | ) | ||||||||||||||
Reclassification adjustment to net income for amortization of actuarial losses | 1.6 | — | 1.6 | — | (1.6 | ) | 1.6 | ||||||||||||||||
Prior service costs | (0.7 | ) | — | (0.7 | ) | — | 0.7 | (0.7 | ) | ||||||||||||||
Reclassification adjustment to net income for amortization of net prior service credits | (1.3 | ) | — | (1.3 | ) | — | 1.3 | (1.3 | ) | ||||||||||||||
Total other comprehensive (loss) income | (58.1 | ) | — | (58.6 | ) | 4.6 | 54.0 | (58.1 | ) | ||||||||||||||
Total comprehensive income (loss) | $ | 323.2 | $ | (0.6 | ) | $ | 778.9 | $ | 696.7 | $ | (1,475.0 | ) | $ | 323.2 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Assets | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 1.7 | $ | 0.1 | $ | 70.3 | $ | 26.6 | $ | — | $ | 98.7 | |||||||||||
Accounts receivable, net | — | — | 1,858.0 | — | — | 1,858.0 | |||||||||||||||||
Intra-entity receivables, net | 12.7 | — | 145.1 | — | (157.8 | ) | — | ||||||||||||||||
Other receivables | — | — | 71.1 | 24.8 | — | 95.9 | |||||||||||||||||
Other current assets | — | — | 131.4 | 4.9 | — | 136.3 | |||||||||||||||||
Income taxes | — | — | 4.4 | — | — | 4.4 | |||||||||||||||||
Inventories | — | — | 2,371.8 | 77.5 | — | 2,449.3 | |||||||||||||||||
Total current assets | 14.4 | 0.1 | 4,652.1 | 133.8 | (157.8 | ) | 4,642.6 | ||||||||||||||||
Non-current assets: | |||||||||||||||||||||||
Property, plant and equipment, net | — | — | 818.5 | 4.4 | — | 822.9 | |||||||||||||||||
Goodwill | — | — | 514.0 | 3.6 | — | 517.6 | |||||||||||||||||
Intangible assets, net | — | — | 417.0 | — | — | 417.0 | |||||||||||||||||
Investment in subsidiaries | 3,117.6 | — | 721.6 | 590.9 | (4,430.1 | ) | — | ||||||||||||||||
Intra-entity receivables, net | — | 402.9 | — | 3,647.1 | (4,050.0 | ) | — | ||||||||||||||||
Other assets | — | — | 134.8 | 30.3 | — | 165.1 | |||||||||||||||||
Deferred tax assets | — | — | 0.6 | 0.1 | — | 0.7 | |||||||||||||||||
Retirement benefit asset | — | — | 31.9 | — | — | 31.9 | |||||||||||||||||
Total assets | $ | 3,132.0 | $ | 403.0 | $ | 7,290.5 | $ | 4,410.2 | $ | (8,637.9 | ) | $ | 6,597.8 | ||||||||||
Liabilities and Shareholders’ equity | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Loans and overdrafts | $ | — | $ | (0.7 | ) | $ | 91.8 | $ | — | $ | — | $ | 91.1 | ||||||||||
Accounts payable | — | — | 248.2 | 7.5 | — | 255.7 | |||||||||||||||||
Intra-entity payables, net | — | — | — | 157.8 | (157.8 | ) | — | ||||||||||||||||
Accrued expenses and other current liabilities | 29.9 | 2.5 | 429.2 | 16.6 | — | 478.2 | |||||||||||||||||
Deferred revenue | — | — | 275.5 | 1.4 | — | 276.9 | |||||||||||||||||
Income taxes | — | (0.2 | ) | 115.5 | (13.5 | ) | — | 101.8 | |||||||||||||||
Total current liabilities | 29.9 | 1.6 | 1,160.2 | 169.8 | (157.8 | ) | 1,203.7 | ||||||||||||||||
Non-current liabilities: | |||||||||||||||||||||||
Long-term debt | — | 394.3 | 323.6 | 600.0 | — | 1,317.9 | |||||||||||||||||
Intra-entity payables, net | — | — | 4,050.0 | — | (4,050.0 | ) | — | ||||||||||||||||
Other liabilities | — | — | 208.7 | 5.0 | — | 213.7 | |||||||||||||||||
Deferred revenue | — | — | 659.0 | — | — | 659.0 | |||||||||||||||||
Deferred tax liabilities | — | — | 101.4 | — | — | 101.4 | |||||||||||||||||
Total liabilities | 29.9 | 395.9 | 6,502.9 | 774.8 | (4,207.8 | ) | 3,495.7 | ||||||||||||||||
Series A redeemable convertible preferred shares | 611.9 | — | — | — | — | 611.9 | |||||||||||||||||
Total shareholders’ equity | 2,490.2 | 7.1 | 787.6 | 3,635.4 | (4,430.1 | ) | 2,490.2 | ||||||||||||||||
Total liabilities, redeemable convertible preferred shares and shareholders’ equity | $ | 3,132.0 | $ | 403.0 | $ | 7,290.5 | $ | 4,410.2 | $ | (8,637.9 | ) | $ | 6,597.8 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Assets | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 1.9 | $ | 0.1 | $ | 102.0 | $ | 33.7 | $ | — | $ | 137.7 | |||||||||||
Accounts receivable, net | — | — | 1,753.0 | 3.4 | — | 1,756.4 | |||||||||||||||||
Intra-entity receivables, net | 28.7 | — | — | 380.1 | (408.8 | ) | — | ||||||||||||||||
Other receivables | — | — | 68.8 | 15.2 | — | 84.0 | |||||||||||||||||
Other current assets | 0.1 | — | 144.2 | 8.3 | — | 152.6 | |||||||||||||||||
Income taxes | — | 0.2 | 2.3 | 1.0 | — | 3.5 | |||||||||||||||||
Inventories | — | — | 2,372.7 | 81.2 | — | 2,453.9 | |||||||||||||||||
Total current assets | 30.7 | 0.3 | 4,443.0 | 522.9 | (408.8 | ) | 4,588.1 | ||||||||||||||||
Non-current assets: | |||||||||||||||||||||||
Property, plant and equipment, net | — | — | 722.3 | 5.3 | — | 727.6 | |||||||||||||||||
Goodwill | — | — | 511.9 | 3.6 | — | 515.5 | |||||||||||||||||
Intangible assets, net | — | — | 427.8 | — | — | 427.8 | |||||||||||||||||
Investment in subsidiaries | 3,047.8 | — | 762.9 | 600.0 | (4,410.7 | ) | — | ||||||||||||||||
Intra-entity receivables, net | — | 402.6 | — | 3,467.4 | (3,870.0 | ) | — | ||||||||||||||||
Other assets | — | — | 124.5 | 30.1 | — | 154.6 | |||||||||||||||||
Deferred tax assets | — | — | — | — | — | — | |||||||||||||||||
Retirement benefit asset | — | — | 51.3 | — | — | 51.3 | |||||||||||||||||
Total assets | $ | 3,078.5 | $ | 402.9 | $ | 7,043.7 | $ | 4,629.3 | $ | (8,689.5 | ) | $ | 6,464.9 | ||||||||||
Liabilities and Shareholders’ equity | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Loans and overdrafts | $ | — | $ | (0.7 | ) | $ | 58.4 | $ | — | $ | — | $ | 57.7 | ||||||||||
Accounts payable | — | — | 260.3 | 8.8 | — | 269.1 | |||||||||||||||||
Intra-entity payables, net | — | — | 408.8 | — | (408.8 | ) | — | ||||||||||||||||
Accrued expenses and other current liabilities | 17.8 | 2.4 | 467.0 | 11.1 | — | 498.3 | |||||||||||||||||
Deferred revenue | — | — | 260.3 | — | — | 260.3 | |||||||||||||||||
Income taxes | — | — | 68.4 | (2.7 | ) | — | 65.7 | ||||||||||||||||
Total current liabilities | 17.8 | 1.7 | 1,523.2 | 17.2 | (408.8 | ) | 1,151.1 | ||||||||||||||||
Non-current liabilities: | |||||||||||||||||||||||
Long-term debt | — | 393.5 | 327.5 | 600.0 | — | 1,321.0 | |||||||||||||||||
Intra-entity payables, net | — | — | 3,870.0 | — | (3,870.0 | ) | — | ||||||||||||||||
Other liabilities | — | — | 223.6 | 6.9 | — | 230.5 | |||||||||||||||||
Deferred revenue | — | — | 629.1 | — | — | 629.1 | |||||||||||||||||
Deferred tax liabilities | — | — | 73.0 | (0.5 | ) | — | 72.5 | ||||||||||||||||
Total liabilities | 17.8 | 395.2 | 6,646.4 | 623.6 | (4,278.8 | ) | 3,404.2 | ||||||||||||||||
Series A redeemable convertible preferred shares | — | — | — | — | — | — | |||||||||||||||||
Total shareholders’ equity | 3,060.7 | 7.7 | 397.3 | 4,005.7 | (4,410.7 | ) | 3,060.7 | ||||||||||||||||
Total liabilities, redeemable convertible preferred shares and shareholders’ equity | $ | 3,078.5 | $ | 402.9 | $ | 7,043.7 | $ | 4,629.3 | $ | (8,689.5 | ) | $ | 6,464.9 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net cash provided by (used in) operating activities | $ | 1,057.9 | $ | 0.1 | $ | 724.8 | $ | 525.6 | $ | (1,630.1 | ) | $ | 678.3 | ||||||||||
Investing activities | |||||||||||||||||||||||
Purchase of property, plant and equipment | — | — | (277.9 | ) | (0.1 | ) | — | (278.0 | ) | ||||||||||||||
Investment in subsidiaries | (610.0 | ) | — | — | — | 610.0 | — | ||||||||||||||||
Purchase of available-for-sale securities | — | — | — | (10.4 | ) | — | (10.4 | ) | |||||||||||||||
Proceeds from available-for-sale securities | — | — | — | 10.0 | — | 10.0 | |||||||||||||||||
Acquisition of Zale Corporation, net of cash acquired | — | — | — | — | — | — | |||||||||||||||||
Net cash (used in) provided by investing activities | (610.0 | ) | — | (277.9 | ) | (0.5 | ) | 610.0 | (278.4 | ) | |||||||||||||
Financing activities | |||||||||||||||||||||||
Dividends paid on common shares | (75.6 | ) | — | — | — | — | (75.6 | ) | |||||||||||||||
Intra-entity dividends paid | — | — | (730.0 | ) | (900.1 | ) | 1,630.1 | — | |||||||||||||||
Proceeds from issuance of common shares | 2.1 | — | 610.0 | — | (610.0 | ) | 2.1 | ||||||||||||||||
Proceeds from issuance of redeemable convertible preferred shares, net of issuance costs | 611.3 | — | — | — | — | 611.3 | |||||||||||||||||
Excess tax benefit from exercise of share awards | — | — | 2.4 | — | — | 2.4 | |||||||||||||||||
Proceeds from senior notes | — | — | — | — | — | — | |||||||||||||||||
Proceeds from term loan | — | — | — | — | — | — | |||||||||||||||||
Repayments of term loan | — | — | (16.4 | ) | — | — | (16.4 | ) | |||||||||||||||
Proceeds from securitization facility | — | — | — | 2,404.1 | — | 2,404.1 | |||||||||||||||||
Repayment of securitization facility | — | — | — | (2,404.1 | ) | — | (2,404.1 | ) | |||||||||||||||
Proceeds from revolving credit facility | — | — | 1,270.0 | — | — | 1,270.0 | |||||||||||||||||
Repayments of revolving credit facility | — | — | (1,214.0 | ) | — | — | (1,214.0 | ) | |||||||||||||||
Payment of debt issuance costs | — | — | (2.1 | ) | (0.6 | ) | — | (2.7 | ) | ||||||||||||||
Repurchase of common shares | (1,000.0 | ) | — | — | — | — | (1,000.0 | ) | |||||||||||||||
Net settlement of equity based awards | (4.9 | ) | — | — | — | — | (4.9 | ) | |||||||||||||||
Principal payments under capital lease obligations | — | — | (0.2 | ) | — | — | (0.2 | ) | |||||||||||||||
Proceeds from (repayment of) short-term borrowings | — | — | (10.2 | ) | — | — | (10.2 | ) | |||||||||||||||
Intra-entity activity, net | 19.0 | (0.1 | ) | (386.6 | ) | 367.7 | — | — | |||||||||||||||
Net cash (used in) provided by financing activities | (448.1 | ) | (0.1 | ) | (477.1 | ) | (533.0 | ) | 1,020.1 | (438.2 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | 1.9 | 0.1 | 102.0 | 33.7 | — | 137.7 | |||||||||||||||||
Increase (decrease) in cash and cash equivalents | (0.2 | ) | — | (30.2 | ) | (7.9 | ) | — | (38.3 | ) | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (1.5 | ) | 0.8 | — | (0.7 | ) | |||||||||||||||
Cash and cash equivalents at end of period | $ | 1.7 | $ | 0.1 | $ | 70.3 | $ | 26.6 | $ | — | $ | 98.7 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net cash provided by (used in) operating activities | $ | 98.6 | $ | (0.1 | ) | $ | 325.7 | $ | 215.0 | $ | (195.9 | ) | $ | 443.3 | |||||||||
Investing activities | |||||||||||||||||||||||
Purchase of property, plant and equipment | — | — | (225.9 | ) | (0.6 | ) | — | (226.5 | ) | ||||||||||||||
Investment in subsidiaries | — | — | (0.3 | ) | — | 0.3 | — | ||||||||||||||||
Purchase of available-for-sale securities | — | — | — | (6.2 | ) | — | (6.2 | ) | |||||||||||||||
Proceeds from available-for-sale securities | — | — | — | 4.0 | — | 4.0 | |||||||||||||||||
Acquisition of Zale Corporation, net of cash acquired | — | — | — | — | — | — | |||||||||||||||||
Net cash (used in) provided by investing activities | — | — | (226.2 | ) | (2.8 | ) | 0.3 | (228.7 | ) | ||||||||||||||
Financing activities | |||||||||||||||||||||||
Dividends paid on common shares | (67.1 | ) | — | — | — | — | (67.1 | ) | |||||||||||||||
Intra-entity dividends paid | — | — | (149.3 | ) | (46.6 | ) | 195.9 | — | |||||||||||||||
Proceeds from issuance of redeemable convertible preferred shares, net of issuance costs | — | — | — | — | — | — | |||||||||||||||||
Proceeds from issuance of common shares | 5.0 | 0.3 | — | — | (0.3 | ) | 5.0 | ||||||||||||||||
Excess tax benefit from exercise of share awards | — | — | 6.9 | — | — | 6.9 | |||||||||||||||||
Proceeds from senior notes | — | — | — | — | — | — | |||||||||||||||||
Proceeds from term loan | — | — | — | — | — | — | |||||||||||||||||
Repayments of term loan | — | — | (25.0 | ) | — | — | (25.0 | ) | |||||||||||||||
Proceeds from securitization facility | — | — | — | 2,303.9 | — | 2,303.9 | |||||||||||||||||
Repayment of securitization facility | — | — | — | (2,303.9 | ) | — | (2,303.9 | ) | |||||||||||||||
Proceeds from revolving credit facility | — | — | 316.0 | — | — | 316.0 | |||||||||||||||||
Repayments of revolving credit facility | — | — | (316.0 | ) | — | — | (316.0 | ) | |||||||||||||||
Payment of debt issuance costs | — | — | — | — | — | — | |||||||||||||||||
Repurchase of common shares | (130.0 | ) | — | — | — | — | (130.0 | ) | |||||||||||||||
Net settlement of equity based awards | (8.3 | ) | — | — | — | — | (8.3 | ) | |||||||||||||||
Principal payments under capital lease obligations | — | — | (1.0 | ) | — | — | (1.0 | ) | |||||||||||||||
Proceeds from (repayment of) short-term borrowings | — | — | (47.1 | ) | — | — | (47.1 | ) | |||||||||||||||
Intra-entity activity, net | 101.6 | (0.2 | ) | 54.9 | (156.3 | ) | — | — | |||||||||||||||
Net cash (used in) provided by financing activities | (98.8 | ) | 0.1 | (160.6 | ) | (202.9 | ) | 195.6 | (266.6 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | 2.1 | 0.1 | 166.5 | 24.9 | — | 193.6 | |||||||||||||||||
Increase (decrease) in cash and cash equivalents | (0.2 | ) | — | (61.1 | ) | 9.3 | — | (52.0 | ) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (3.4 | ) | (0.5 | ) | — | (3.9 | ) | ||||||||||||||
Cash and cash equivalents at end of period | $ | 1.9 | $ | 0.1 | $ | 102.0 | $ | 33.7 | $ | — | $ | 137.7 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net cash provided by (used in) operating activities | $ | 150.5 | $ | 2.2 | $ | 166.6 | $ | 116.7 | $ | (153.0 | ) | $ | 283.0 | ||||||||||
Investing activities | |||||||||||||||||||||||
Purchase of property, plant and equipment | — | — | (219.8 | ) | (0.4 | ) | — | (220.2 | ) | ||||||||||||||
Investment in subsidiaries | — | — | (18.9 | ) | (10.0 | ) | 28.9 | — | |||||||||||||||
Purchase of available-for-sale securities | — | — | — | (5.7 | ) | — | (5.7 | ) | |||||||||||||||
Proceeds from available-for-sale securities | — | — | — | 2.5 | — | 2.5 | |||||||||||||||||
Acquisition of Zale Corporation, net of cash acquired | — | — | (1,431.1 | ) | 1.9 | — | (1,429.2 | ) | |||||||||||||||
Net cash (used in) provided by investing activities | — | — | (1,669.8 | ) | (11.7 | ) | 28.9 | (1,652.6 | ) | ||||||||||||||
Financing activities | |||||||||||||||||||||||
Dividends paid on common shares | (55.3 | ) | — | — | — | — | (55.3 | ) | |||||||||||||||
Intra-entity dividends paid | — | — | (953.0 | ) | — | 953.0 | — | ||||||||||||||||
Proceeds from issuance of common shares | 6.1 | 8.9 | 10.0 | 810.0 | (828.9 | ) | 6.1 | ||||||||||||||||
Proceeds from issuance of redeemable convertible preferred shares, net of issuance costs | — | — | — | — | — | — | |||||||||||||||||
Excess tax benefit from exercise of share awards | — | — | 11.8 | — | — | 11.8 | |||||||||||||||||
Proceeds from senior notes | — | 398.4 | — | — | — | 398.4 | |||||||||||||||||
Proceeds from term loan | — | — | 400.0 | — | — | 400.0 | |||||||||||||||||
Repayments of term loan | — | — | (10.0 | ) | — | — | (10.0 | ) | |||||||||||||||
Proceeds from securitization facility | — | — | — | 1,941.9 | — | 1,941.9 | |||||||||||||||||
Repayment of securitization facility | — | — | — | (1,341.9 | ) | — | (1,341.9 | ) | |||||||||||||||
Proceeds from revolving credit facility | — | — | 260.0 | — | — | 260.0 | |||||||||||||||||
Repayments of revolving credit facility | — | — | (260.0 | ) | — | — | (260.0 | ) | |||||||||||||||
Payment of debt issuance costs | — | (7.0 | ) | (10.7 | ) | (2.8 | ) | — | (20.5 | ) | |||||||||||||
Repurchase of common shares | (29.8 | ) | — | — | — | — | (29.8 | ) | |||||||||||||||
Net settlement of equity based awards | (18.4 | ) | — | — | — | — | (18.4 | ) | |||||||||||||||
Principal payments under capital lease obligations | — | — | (0.8 | ) | — | — | (0.8 | ) | |||||||||||||||
Proceeds from (repayment of) short-term borrowings | — | — | 39.4 | — | — | 39.4 | |||||||||||||||||
Intra-entity activity, net | (52.4 | ) | (402.4 | ) | 1,957.9 | (1,503.1 | ) | — | — | ||||||||||||||
Net cash (used in) provided by financing activities | (149.8 | ) | (2.1 | ) | 1,444.6 | (95.9 | ) | 124.1 | 1,320.9 | ||||||||||||||
Cash and cash equivalents at beginning of period | 1.4 | — | 237.0 | 9.2 | — | 247.6 | |||||||||||||||||
Increase (decrease) in cash and cash equivalents | 0.7 | 0.1 | (58.6 | ) | 9.1 | — | (48.7 | ) | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (11.9 | ) | 6.6 | — | (5.3 | ) | |||||||||||||||
Cash and cash equivalents at end of period | $ | 2.1 | $ | 0.1 | $ | 166.5 | $ | 24.9 | $ | — | $ | 193.6 |
|
Fiscal 2017 Quarters ended | |||||||||||||||
(in millions, except per share amounts) | April 30, 2016 | July 30, 2016 | October 29, 2016 | January 28, 2017 | |||||||||||
Sales | $ | 1,578.9 | $ | 1,373.4 | $ | 1,186.2 | $ | 2,269.9 | |||||||
Gross margin | 600.4 | 464.9 | 350.0 | 945.5 | |||||||||||
Net income attributable to common shareholders | 146.8 | 81.9 | 14.8 | 287.8 | |||||||||||
Earnings per common share: | |||||||||||||||
Basic | $ | 1.87 | $ | 1.06 | $ | 0.20 | $ | 4.17 | |||||||
Diluted | $ | 1.87 | $ | 1.06 | $ | 0.20 | $ | 3.92 |
Fiscal 2016 Quarters ended | |||||||||||||||
(in millions, except per share amounts) | May 2, 2015 | August 1, 2015 | October 31, 2015 | January 30, 2016 | |||||||||||
Sales | $ | 1,530.6 | $ | 1,410.6 | $ | 1,216.4 | $ | 2,392.6 | |||||||
Gross margin | 565.9 | 490.8 | 367.7 | 1,016.0 | |||||||||||
Net income attributable to common shareholders | 118.8 | 62.2 | 15.0 | 271.9 | |||||||||||
Earnings per common share: | |||||||||||||||
Basic | $ | 1.49 | $ | 0.78 | $ | 0.19 | $ | 3.43 | |||||||
Diluted | $ | 1.48 | $ | 0.78 | $ | 0.19 | $ | 3.42 |
|
Buildings | 30 – 40 years when land is owned or the remaining term of lease, not to exceed 40 years | |
Leasehold improvements | Remaining term of lease, not to exceed 10 years | |
Furniture and fixtures | Ranging from 3 – 10 years | |
Equipment and software | Ranging from 3 – 5 years |
|
(in millions) | Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | ||||||||
Wages and salaries | $ | 1,183.2 | $ | 1,222.8 | $ | 1,095.6 | |||||
Payroll taxes | 96.5 | 101.1 | 91.8 | ||||||||
Employee benefit plans | 19.3 | 17.5 | 9.6 | ||||||||
Share-based compensation | 8.0 | 16.4 | 12.1 | ||||||||
Total compensation and benefits | $ | 1,307.0 | $ | 1,357.8 | $ | 1,209.1 |
(in millions) | January 28, 2017 | January 30, 2016 | |||||
Cash and cash equivalents held in money markets and other accounts | $ | 65.6 | $ | 100.4 | |||
Cash equivalents from third-party credit card issuers | 31.1 | 35.4 | |||||
Cash on hand | 2.0 | 1.9 | |||||
Total cash and cash equivalents | $ | 98.7 | $ | 137.7 |
Buildings | 30 – 40 years when land is owned or the remaining term of lease, not to exceed 40 years | |
Leasehold improvements | Remaining term of lease, not to exceed 10 years | |
Furniture and fixtures | Ranging from 3 – 10 years | |
Equipment and software | Ranging from 3 – 5 years |
(in millions) | January 28, 2017 | January 30, 2016 | |||||
Land and buildings | $ | 33.5 | $ | 34.7 | |||
Leasehold improvements | 632.4 | 591.7 | |||||
Furniture and fixtures | 761.0 | 688.7 | |||||
Equipment | 137.7 | 133.6 | |||||
Software | 211.0 | 181.9 | |||||
Construction in progress | 96.7 | 46.2 | |||||
Total | $ | 1,872.3 | $ | 1,676.8 | |||
Accumulated depreciation and amortization | (1,049.4 | ) | (949.2 | ) | |||
Property, plant and equipment, net | $ | 822.9 | $ | 727.6 |
|
(in millions, except per share amounts) | Amount | ||
Cash consideration paid to Zale Corporation shareholders ($21 per share) | $ | 910.2 | |
Cash consideration paid for settlement of Zale Corporation stock options, restricted share awards and long term incentive plan awards | 69.6 | ||
Cash paid to extinguish Zale Corporation outstanding debt as of May 29, 2014 | 478.2 | ||
Total consideration transferred | $ | 1,458.0 |
(in millions) | Fair values | ||
Cash and cash equivalents | $ | 28.8 | |
Inventories | 856.7 | ||
Other current assets | 22.4 | ||
Property, plant and equipment | 103.6 | ||
Intangible assets: | |||
Trade names | 417.0 | ||
Favorable leases | 50.2 | ||
Deferred tax assets | 132.8 | ||
Other assets | 25.4 | ||
Current liabilities(1) | (206.3 | ) | |
Deferred revenue | (93.3 | ) | |
Unfavorable leases | (50.5 | ) | |
Unfavorable contracts | (65.6 | ) | |
Deferred tax liabilities | (234.0 | ) | |
Other liabilities | (28.6 | ) | |
Fair value of net assets acquired | 958.6 | ||
Goodwill | 499.4 | ||
Total consideration transferred | $ | 1,458.0 |
(in millions, except per share amounts) | Fiscal 2015 | ||
Pro forma sales | $ | 6,325.1 | |
Pro forma net income | $ | 462.1 | |
Pro forma earnings per share – basic | $ | 5.78 | |
Pro forma earnings per share – diluted | $ | 5.76 |
|
(in millions) | Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | ||||||||
Sales: | |||||||||||
Sterling Jewelers | $ | 3,930.4 | $ | 3,988.7 | $ | 3,765.0 | |||||
Zale Jewelry(1) | 1,549.7 | 1,568.2 | 1,068.7 | ||||||||
Piercing Pagoda | 263.1 | 243.2 | 146.9 | ||||||||
UK Jewelry | 647.1 | 737.6 | 743.6 | ||||||||
Other | 18.1 | 12.5 | 12.1 | ||||||||
Total sales | $ | 6,408.4 | $ | 6,550.2 | $ | 5,736.3 | |||||
Operating income (loss): | |||||||||||
Sterling Jewelers | $ | 715.8 | $ | 718.6 | $ | 624.3 | |||||
Zale Jewelry(2) | 62.2 | 44.3 | (1.9 | ) | |||||||
Piercing Pagoda(3) | 11.2 | 7.8 | (6.3 | ) | |||||||
UK Jewelry | 45.6 | 61.5 | 52.2 | ||||||||
Other(4) | (71.6 | ) | (128.5 | ) | (91.7 | ) | |||||
Total operating income | $ | 763.2 | $ | 703.7 | $ | 576.6 | |||||
Depreciation and amortization: | |||||||||||
Sterling Jewelers | $ | 112.7 | $ | 106.2 | $ | 95.7 | |||||
Zale Jewelry | 49.1 | 44.8 | 29.4 | ||||||||
Piercing Pagoda | 4.6 | 3.3 | 1.6 | ||||||||
UK Jewelry | 21.6 | 20.1 | 22.1 | ||||||||
Other | 0.8 | 0.9 | 0.9 | ||||||||
Total depreciation and amortization | $ | 188.8 | $ | 175.3 | $ | 149.7 | |||||
Capital additions: | |||||||||||
Sterling Jewelers | $ | 154.5 | $ | 141.6 | $ | 157.6 | |||||
Zale Jewelry | 85.0 | 47.7 | 35.1 | ||||||||
Piercing Pagoda | 12.7 | 10.2 | 6.9 | ||||||||
UK Jewelry | 25.7 | 26.4 | 20.2 | ||||||||
Other | 0.1 | 0.6 | 0.4 | ||||||||
Total capital additions | $ | 278.0 | $ | 226.5 | $ | 220.2 |
(2) | Includes net operating loss of $16.4 million, $23.1 million and $35.1 million related to the effects of purchase accounting associated with the acquisition of Zale Corporation for Fiscal 2017, Fiscal 2016 and Fiscal 2015, respectively. See Note 3 for additional information. |
(3) | Includes net operating loss of $0.4 million, $3.3 million and $10.8 million related to the effects of purchase accounting associated with the acquisition of Zale Corporation for Fiscal 2017, Fiscal 2016 and Fiscal 2015, respectively. See Note 3 for additional information. |
(4) | For Fiscal 2017, Other includes $28.4 million of integration costs for consulting expenses associated with information technology (“IT”) implementations, severance related to organizational changes and and expenses associated with the settlement of miscellaneous legal matters pending as of the date of the Zale acquisition. For Fiscal 2016, Other includes $78.9 million of transaction and integration costs primarily attributable to the impact of the appraisal rights legal settlement discussed in Note 25 and expenses associated with legal, tax, accounting, IT implementations and consulting services, as well as severance costs. For Fiscal 2015, Other includes $59.8 million of transaction and integration expenses associated with legal, tax, accounting, IT implementations and consulting services, as well as severance costs related to Zale and other management changes. |
(in millions) | January 28, 2017 | January 30, 2016 | |||||
Total assets: | |||||||
Sterling Jewelers | $ | 4,015.4 | $ | 3,788.0 | |||
Zale Jewelry | 1,940.7 | 1,955.1 | |||||
Piercing Pagoda | 141.6 | 141.8 | |||||
UK Jewelry | 372.6 | 427.8 | |||||
Other | 127.5 | 152.2 | |||||
Total assets | $ | 6,597.8 | $ | 6,464.9 | |||
Total long-lived assets: | |||||||
Sterling Jewelers | $ | 567.3 | $ | 519.7 | |||
Zale Jewelry | 1,050.1 | 1,013.7 | |||||
Piercing Pagoda | 61.4 | 53.3 | |||||
UK Jewelry | 70.7 | 75.3 | |||||
Other | 8.0 | 8.9 | |||||
Total long-lived assets | $ | 1,757.5 | $ | 1,670.9 | |||
Total liabilities: | |||||||
Sterling Jewelers | $ | 2,061.4 | $ | 1,982.2 | |||
Zale Jewelry | 524.3 | 530.3 | |||||
Piercing Pagoda | 28.2 | 28.5 | |||||
UK Jewelry | 110.6 | 132.0 | |||||
Other | 771.2 | 731.2 | |||||
Total liabilities | $ | 3,495.7 | $ | 3,404.2 |
(in millions) | Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | ||||||||
Sales by product: | |||||||||||
Diamonds and diamond jewelry | $ | 3,853.7 | $ | 3,918.1 | $ | 3,450.6 | |||||
Gold, silver jewelry, other products and services | 2,090.0 | 2,116.4 | 1,784.5 | ||||||||
Watches | 464.7 | 515.7 | 501.2 | ||||||||
Total sales | $ | 6,408.4 | $ | 6,550.2 | $ | 5,736.3 |
|
Pension plan | |||||||||||||||||||||||
(in millions) | Foreign currency translation | Losses on available-for-sale securities, net | Gains (losses) on cash flow hedges | Actuarial gains (losses) | Prior service credits (costs) | Accumulated other comprehensive (loss) income | |||||||||||||||||
Balance at February 1, 2014 | $ | (137.0 | ) | $ | — | $ | (14.3 | ) | $ | (42.5 | ) | $ | 15.3 | $ | (178.5 | ) | |||||||
OCI before reclassifications | (60.6 | ) | — | 6.2 | (15.8 | ) | (0.7 | ) | (70.9 | ) | |||||||||||||
Amounts reclassified from AOCI to net income | — | — | 12.5 | 1.6 | (1.3 | ) | 12.8 | ||||||||||||||||
Net current period OCI | (60.6 | ) | — | 18.7 | (14.2 | ) | (2.0 | ) | (58.1 | ) | |||||||||||||
Balance at January 31, 2015 | $ | (197.6 | ) | $ | — | $ | 4.4 | $ | (56.7 | ) | $ | 13.3 | $ | (236.6 | ) | ||||||||
OCI before reclassifications | (40.2 | ) | (0.4 | ) | (11.8 | ) | 10.9 | (0.5 | ) | (42.0 | ) | ||||||||||||
Amounts reclassified from AOCI to net income | — | — | 3.5 | 2.7 | (1.7 | ) | 4.5 | ||||||||||||||||
Net current period OCI | (40.2 | ) | (0.4 | ) | (8.3 | ) | 13.6 | (2.2 | ) | (37.5 | ) | ||||||||||||
Balance at January 30, 2016 | $ | (237.8 | ) | $ | (0.4 | ) | $ | (3.9 | ) | $ | (43.1 | ) | $ | 11.1 | $ | (274.1 | ) | ||||||
OCI before reclassifications | (25.6 | ) | — | 6.9 | (13.6 | ) | (0.4 | ) | (32.7 | ) | |||||||||||||
Amounts reclassified from AOCI to net income | — | — | (0.6 | ) | 1.2 | (1.5 | ) | (0.9 | ) | ||||||||||||||
Net current period OCI | (25.6 | ) | — | 6.3 | (12.4 | ) | (1.9 | ) | (33.6 | ) | |||||||||||||
Balance at January 28, 2017 | $ | (263.4 | ) | $ | (0.4 | ) | $ | 2.4 | $ | (55.5 | ) | $ | 9.2 | $ | (307.7 | ) |
Amounts reclassified from AOCI | |||||||||||||||
(in millions) | Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | Income statement caption | |||||||||||
(Gains) losses on cash flow hedges: | |||||||||||||||
Foreign currency contracts | $ | (2.7 | ) | $ | (0.4 | ) | $ | 1.3 | Cost of sales (see Note 17) | ||||||
Interest rate swaps | 2.2 | 2.7 | — | Interest expense, net (see Note 17) | |||||||||||
Commodity contracts | (0.2 | ) | 2.6 | 17.3 | Cost of sales (see Note 17) | ||||||||||
Total before income tax | (0.7 | ) | 4.9 | 18.6 | |||||||||||
Income taxes | 0.1 | (1.4 | ) | (6.1 | ) | ||||||||||
Net of tax | (0.6 | ) | 3.5 | 12.5 | |||||||||||
Defined benefit pension plan items: | |||||||||||||||
Amortization of unrecognized actuarial losses | 1.5 | 3.4 | 2.0 | Selling, general and administrative expenses(1) | |||||||||||
Amortization of unrecognized net prior service credits | (1.9 | ) | (2.2 | ) | (1.7 | ) | Selling, general and administrative expenses(1) | ||||||||
Total before income tax | (0.4 | ) | 1.2 | 0.3 | |||||||||||
Income taxes | 0.1 | (0.2 | ) | — | |||||||||||
Net of tax | (0.3 | ) | 1.0 | 0.3 | |||||||||||
Total reclassifications, net of tax | $ | (0.9 | ) | $ | 4.5 | $ | 12.8 |
(1) | These items are included in the computation of net periodic pension benefit (cost). See Note 19 for additional information. |
|
(in millions) | Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | ||||||||
Income before income taxes: | |||||||||||
– US | $ | 424.0 | $ | 426.1 | $ | 380.8 | |||||
– Foreign | 289.8 | 231.7 | 159.8 | ||||||||
Total income before income taxes | $ | 713.8 | $ | 657.8 | $ | 540.6 | |||||
Current taxation: | |||||||||||
– US | $ | 137.6 | $ | 161.7 | $ | 199.5 | |||||
– Foreign | 3.9 | 3.5 | 7.8 | ||||||||
Deferred taxation: | |||||||||||
– US | 28.1 | 22.3 | (47.9 | ) | |||||||
– Foreign | 1.0 | 2.4 | (0.1 | ) | |||||||
Total income taxes | $ | 170.6 | $ | 189.9 | $ | 159.3 |
Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | ||||||
US federal income tax rates | 35.0 | % | 35.0 | % | 35.0 | % | ||
US state income taxes | 1.9 | % | 2.7 | % | 2.1 | % | ||
Differences between US federal and foreign statutory income tax rates | (0.2 | )% | (0.5 | )% | (0.8 | )% | ||
Expenditures permanently disallowable for tax purposes, net of permanent tax benefits | 0.4 | % | 0.5 | % | 0.8 | % | ||
Disallowable transaction costs | 0.1 | % | 2.1 | % | 0.7 | % | ||
Impact of global reinsurance arrangements | (5.4 | )% | (2.4 | )% | (1.5 | )% | ||
Impact of global financing arrangements | (8.2 | )% | (8.7 | )% | (7.2 | )% | ||
Other items | 0.3 | % | 0.2 | % | 0.4 | % | ||
Effective tax rate | 23.9 | % | 28.9 | % | 29.5 | % |
January 28, 2017 | January 30, 2016 | ||||||||||||||||||||||
(in millions) | Assets | (Liabilities) | Total | Assets | (Liabilities) | Total | |||||||||||||||||
Intangible assets | $ | — | $ | (160.1 | ) | $ | (160.1 | ) | $ | — | $ | (156.2 | ) | $ | (156.2 | ) | |||||||
US property, plant and equipment | — | (86.2 | ) | (86.2 | ) | — | (73.6 | ) | (73.6 | ) | |||||||||||||
Foreign property, plant and equipment | 5.0 | — | 5.0 | 5.4 | — | 5.4 | |||||||||||||||||
Inventory valuation | — | (289.4 | ) | (289.4 | ) | — | (252.8 | ) | (252.8 | ) | |||||||||||||
Allowances for doubtful accounts | 60.4 | — | 60.4 | 54.1 | — | 54.1 | |||||||||||||||||
Revenue deferral | 216.0 | — | 216.0 | 188.5 | — | 188.5 | |||||||||||||||||
Derivative instruments | — | — | — | 1.6 | — | 1.6 | |||||||||||||||||
Straight-line lease payments | 37.5 | — | 37.5 | 35.0 | — | 35.0 | |||||||||||||||||
Deferred compensation | 16.5 | — | 16.5 | 13.9 | — | 13.9 | |||||||||||||||||
Retirement benefit obligations | — | (6.1 | ) | (6.1 | ) | — | (10.3 | ) | (10.3 | ) | |||||||||||||
Share-based compensation | 5.7 | — | 5.7 | 7.4 | — | 7.4 | |||||||||||||||||
Other temporary differences | 51.0 | — | 51.0 | 52.4 | — | 52.4 | |||||||||||||||||
Net operating losses and foreign tax credits | 69.2 | — | 69.2 | 80.6 | — | 80.6 | |||||||||||||||||
Value of foreign capital losses | 11.3 | — | 11.3 | 13.4 | — | 13.4 | |||||||||||||||||
Total gross deferred tax assets (liabilities) | $ | 472.6 | $ | (541.8 | ) | $ | (69.2 | ) | $ | 452.3 | $ | (492.9 | ) | $ | (40.6 | ) | |||||||
Valuation allowance | (31.5 | ) | — | (31.5 | ) | (31.9 | ) | — | (31.9 | ) | |||||||||||||
Deferred tax assets (liabilities) | $ | 441.1 | $ | (541.8 | ) | $ | (100.7 | ) | $ | 420.4 | $ | (492.9 | ) | $ | (72.5 | ) | |||||||
Disclosed as: | |||||||||||||||||||||||
Non-current assets | $ | 0.7 | $ | — | |||||||||||||||||||
Non-current liabilities | (101.4 | ) | (72.5 | ) | |||||||||||||||||||
Deferred tax assets (liabilities) | $ | (100.7 | ) | $ | (72.5 | ) |
(in millions) | Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | ||||||||
Unrecognized tax benefits, beginning of period | $ | 11.4 | $ | 11.4 | $ | 4.6 | |||||
Acquired existing unrecognized tax benefits | — | — | 4.3 | ||||||||
Increases related to current year tax positions | 2.4 | 2.0 | 3.5 | ||||||||
Prior year tax positions: | |||||||||||
Increases | — | — | — | ||||||||
Decreases | — | — | (0.1 | ) | |||||||
Cash settlements | — | — | — | ||||||||
Lapse of statute of limitations | (1.9 | ) | (1.9 | ) | (0.4 | ) | |||||
Difference on foreign currency translation | 0.1 | (0.1 | ) | (0.5 | ) | ||||||
Unrecognized tax benefits, end of period | $ | 12.0 | $ | 11.4 | $ | 11.4 |
|
(in millions) | Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | ||||||||
Interest income from in-house customer finance programs | $ | 282.5 | $ | 252.6 | $ | 217.9 | |||||
Other | 0.1 | (1.7 | ) | (2.6 | ) | ||||||
Other operating income, net | $ | 282.6 | $ | 250.9 | $ | 215.3 |
|
(in millions) | January 28, 2017 | January 30, 2016 | |||||
Accounts receivable by portfolio segment, net: | |||||||
Sterling Jewelers customer in-house finance receivables | $ | 1,813.3 | $ | 1,725.9 | |||
Zale customer in-house finance receivables | 33.4 | 13.6 | |||||
Other accounts receivable | 11.3 | 16.9 | |||||
Total accounts receivable, net | $ | 1,858.0 | $ | 1,756.4 |
(in millions) | Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | ||||||||
Beginning balance: | $ | (130.0 | ) | $ | (113.1 | ) | $ | (97.8 | ) | ||
Charge-offs, net | 203.4 | 173.6 | 144.7 | ||||||||
Recoveries | 35.1 | 35.3 | 27.5 | ||||||||
Provision | (247.2 | ) | (225.8 | ) | (187.5 | ) | |||||
Ending balance | $ | (138.7 | ) | $ | (130.0 | ) | $ | (113.1 | ) | ||
Ending receivable balance evaluated for impairment | 1,952.0 | 1,855.9 | 1,666.0 | ||||||||
Sterling Jewelers customer in-house finance receivables, net | $ | 1,813.3 | $ | 1,725.9 | $ | 1,552.9 | |||||
January 28, 2017 | January 30, 2016 | January 31, 2015 | |||||||||||||||||||||
(in millions) | Gross | Valuation allowance | Gross | Valuation allowance | Gross | Valuation allowance | |||||||||||||||||
Performing: | |||||||||||||||||||||||
Current, aged 0 – 30 days | $ | 1,538.2 | $ | (47.2 | ) | $ | 1,473.0 | $ | (45.4 | ) | $ | 1,332.2 | $ | (41.1 | ) | ||||||||
Past due, aged 31 – 60 days | 282.0 | (9.0 | ) | 259.6 | (8.3 | ) | 230.2 | (7.5 | ) | ||||||||||||||
Past due, aged 61 – 90 days | 51.6 | (2.3 | ) | 49.2 | (2.2 | ) | 40.9 | (1.8 | ) | ||||||||||||||
Non Performing: | |||||||||||||||||||||||
Past due, aged more than 90 days | 80.2 | (80.2 | ) | 74.1 | (74.1 | ) | 62.7 | (62.7 | ) | ||||||||||||||
$ | 1,952.0 | $ | (138.7 | ) | $ | 1,855.9 | $ | (130.0 | ) | $ | 1,666.0 | $ | (113.1 | ) |
January 28, 2017 | January 30, 2016 | January 31, 2015 | |||||||||||||||
(as a % of the ending receivable balance) | Gross | Valuation allowance | Gross | Valuation allowance | Gross | Valuation allowance | |||||||||||
Performing: | |||||||||||||||||
Current, aged 0 – 30 days | 78.8 | % | 3.1 | % | 79.4 | % | 3.1 | % | 80.0 | % | 3.1 | % | |||||
Past due, aged 31 – 60 days | 14.5 | % | 3.2 | % | 14.0 | % | 3.2 | % | 13.8 | % | 3.3 | % | |||||
Past due, aged 61 – 90 days | 2.6 | % | 4.5 | % | 2.6 | % | 4.5 | % | 2.4 | % | 4.4 | % | |||||
Non Performing: | |||||||||||||||||
Past due, aged more than 90 days | 4.1 | % | 100.0 | % | 4.0 | % | 100.0 | % | 3.8 | % | 100.0 | % | |||||
100.0 | % | 7.1 | % | 100.0 | % | 7.0 | % | 100.0 | % | 6.8 | % |
|
(in millions) | January 28, 2017 | January 30, 2016 | |||||
Raw materials | $ | 60.8 | $ | 81.8 | |||
Finished goods | 2,388.5 | 2,372.1 | |||||
Total inventories | $ | 2,449.3 | $ | 2,453.9 |
(in millions) | Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | ||||||||
Inventory reserve, beginning of period | $ | 43.2 | $ | 28.4 | $ | 16.3 | |||||
Charged to profit | 57.3 | 87.6 | 44.6 | ||||||||
Utilization(1) | (57.3 | ) | (72.8 | ) | (32.5 | ) | |||||
Inventory reserve, end of period | $ | 43.2 | $ | 43.2 | $ | 28.4 |
|
Buildings | 30 – 40 years when land is owned or the remaining term of lease, not to exceed 40 years | |
Leasehold improvements | Remaining term of lease, not to exceed 10 years | |
Furniture and fixtures | Ranging from 3 – 10 years | |
Equipment and software | Ranging from 3 – 5 years |
(in millions) | January 28, 2017 | January 30, 2016 | |||||
Land and buildings | $ | 33.5 | $ | 34.7 | |||
Leasehold improvements | 632.4 | 591.7 | |||||
Furniture and fixtures | 761.0 | 688.7 | |||||
Equipment | 137.7 | 133.6 | |||||
Software | 211.0 | 181.9 | |||||
Construction in progress | 96.7 | 46.2 | |||||
Total | $ | 1,872.3 | $ | 1,676.8 | |||
Accumulated depreciation and amortization | (1,049.4 | ) | (949.2 | ) | |||
Property, plant and equipment, net | $ | 822.9 | $ | 727.6 |
|
(in millions) | Sterling Jewelers | Zale Jewelry | Piercing Pagoda | UK Jewelry | Other | Total | |||||||||||||||||
Balance at January 31, 2015 | $ | 23.2 | $ | 492.4 | $ | — | $ | — | $ | 3.6 | $ | 519.2 | |||||||||||
Impact of foreign exchange | — | (3.7 | ) | — | — | — | (3.7 | ) | |||||||||||||||
Balance at January 30, 2016 | $ | 23.2 | $ | 488.7 | $ | — | $ | — | $ | 3.6 | $ | 515.5 | |||||||||||
Impact of foreign exchange | — | 2.1 | — | — | — | 2.1 | |||||||||||||||||
Balance at January 28, 2017 | $ | 23.2 | $ | 490.8 | $ | — | $ | — | $ | 3.6 | $ | 517.6 |
January 28, 2017 | January 30, 2016 | ||||||||||||||||||||||||
(in millions) | Balance sheet location | Gross carrying amount | Accumulated amortization | Net carrying amount | Gross carrying amount | Accumulated amortization | Net carrying amount | ||||||||||||||||||
Definite-lived intangible assets: | |||||||||||||||||||||||||
Trade names | Intangible assets, net | $ | 1.4 | $ | (0.8 | ) | $ | 0.6 | $ | 1.4 | $ | (0.5 | ) | $ | 0.9 | ||||||||||
Favorable leases | Intangible assets, net | 47.6 | (36.0 | ) | 11.6 | 47.0 | (22.3 | ) | 24.7 | ||||||||||||||||
Total definite-lived intangible assets | 49.0 | (36.8 | ) | 12.2 | 48.4 | (22.8 | ) | 25.6 | |||||||||||||||||
Indefinite-lived trade names | Intangible assets, net | 404.8 | — | 404.8 | 402.2 | — | 402.2 | ||||||||||||||||||
Total intangible assets, net | $ | 453.8 | $ | (36.8 | ) | $ | 417.0 | $ | 450.6 | $ | (22.8 | ) | $ | 427.8 | |||||||||||
Definite-lived intangible liabilities: | |||||||||||||||||||||||||
Unfavorable leases | Other liabilities | $ | (48.3 | ) | $ | 38.2 | $ | (10.1 | ) | $ | (47.7 | ) | $ | 23.7 | $ | (24.0 | ) | ||||||||
Unfavorable contracts | Other liabilities | (65.6 | ) | 33.5 | (32.1 | ) | (65.6 | ) | 28.1 | (37.5 | ) | ||||||||||||||
Total intangible liabilities, net | $ | (113.9 | ) | $ | 71.7 | $ | (42.2 | ) | $ | (113.3 | ) | $ | 51.8 | $ | (61.5 | ) |
(in millions) | Trade names | Favorable leases | Total | ||||||||
2018 | $ | 0.3 | $ | 9.0 | $ | 9.3 | |||||
2019 | 0.2 | 2.4 | 2.6 | ||||||||
2020 | 0.1 | 0.2 | 0.3 | ||||||||
2021 | — | — | — | ||||||||
2022 | — | — | — | ||||||||
Thereafter | — | — | — | ||||||||
Total | $ | 0.6 | $ | 11.6 | $ | 12.2 |
(in millions) | Unfavorable leases | Unfavorable contracts | Total | ||||||||
2018 | $ | (7.6 | ) | $ | (5.4 | ) | $ | (13.0 | ) | ||
2019 | (2.2 | ) | (5.4 | ) | (7.6 | ) | |||||
2020 | (0.3 | ) | (5.4 | ) | (5.7 | ) | |||||
2021 | — | (5.4 | ) | (5.4 | ) | ||||||
2022 | — | (5.4 | ) | (5.4 | ) | ||||||
Thereafter | — | (5.1 | ) | (5.1 | ) | ||||||
Total | $ | (10.1 | ) | $ | (32.1 | ) | $ | (42.2 | ) |
|
(in millions) | January 28, 2017 | January 30, 2016 | |||||
Deferred ESP selling costs | $ | 86.1 | $ | 79.4 | |||
Investments(1) | 27.2 | 26.8 | |||||
Other assets(2) | 51.8 | 48.4 | |||||
Total other assets | $ | 165.1 | $ | 154.6 |
(1) | See Note 16 for additional detail. |
(2) | Amounts adjusted to reflect the reclassification of capitalized debt issuance costs in accordance with Signet’s adoption of FASB ASU 2015-03 during the first quarter of Fiscal 2017. See Note 2 for additional information. |
|
January 28, 2017 | January 30, 2016 | ||||||||||||||||||||||
(in millions) | Cost | Unrealized Gain (Loss) | Fair Value | Cost | Unrealized Gain (Loss) | Fair Value | |||||||||||||||||
US Treasury securities | $ | 8.8 | $ | (0.7 | ) | $ | 8.1 | $ | 9.2 | $ | (0.4 | ) | $ | 8.8 | |||||||||
US government agency securities | 4.6 | (0.2 | ) | 4.4 | 4.0 | — | 4.0 | ||||||||||||||||
Corporate bonds and notes | 11.0 | (0.1 | ) | 10.9 | 10.8 | — | 10.8 | ||||||||||||||||
Corporate equity securities | 3.5 | 0.3 | 3.8 | 3.5 | (0.3 | ) | 3.2 | ||||||||||||||||
Total investments | $ | 27.9 | $ | (0.7 | ) | $ | 27.2 | $ | 27.5 | $ | (0.7 | ) | $ | 26.8 |
(in millions) | Cost | Fair Value | |||||
Less than one year | $ | 1.8 | $ | 1.2 | |||
Year two through year five | 13.4 | 13.2 | |||||
Year six through year ten | 9.2 | 9.0 | |||||
After ten years | — | — | |||||
Total investment in debt securities | $ | 24.4 | $ | 23.4 |
|
Fair value of derivative assets | |||||||||
(in millions) | Balance sheet location | January 28, 2017 | January 30, 2016 | ||||||
Derivatives designated as hedging instruments: | |||||||||
Foreign currency contracts | Other current assets | $ | 1.4 | $ | 0.8 | ||||
Commodity contracts | Other current assets | — | 0.6 | ||||||
Interest rate swaps | Other assets | 0.4 | — | ||||||
1.8 | 1.4 | ||||||||
Derivatives not designated as hedging instruments: | |||||||||
Foreign currency contracts | Other current assets | 1.8 | — | ||||||
Total derivative assets | $ | 3.6 | $ | 1.4 |
Fair value of derivative liabilities | |||||||||
(in millions) | Balance sheet location | January 28, 2017 | January 30, 2016 | ||||||
Derivatives designated as hedging instruments: | |||||||||
Foreign currency contracts | Other current liabilities | $ | (0.2 | ) | $ | — | |||
Commodity contracts | Other current liabilities | (3.4 | ) | (0.8 | ) | ||||
Interest rate swaps | Other liabilities | — | (3.4 | ) | |||||
(3.6 | ) | (4.2 | ) | ||||||
Derivatives not designated as hedging instruments: | |||||||||
Foreign currency contracts | Other current liabilities | — | (0.2 | ) | |||||
Total derivative liabilities | $ | (3.6 | ) | $ | (4.4 | ) |
(in millions) | January 28, 2017 | January 30, 2016 | |||||
Foreign currency contracts | $ | 4.1 | $ | 1.4 | |||
Commodity contracts | (2.1 | ) | (3.7 | ) | |||
Interest rate swaps | 0.4 | (3.4 | ) | ||||
Gains (losses) recorded in AOCI | $ | 2.4 | $ | (5.7 | ) |
(in millions) | Income statement caption | Fiscal 2017 | Fiscal 2016 | ||||||
Gains recorded in AOCI, beginning of period | $ | 1.4 | $ | 0.9 | |||||
Current period gains recognized in OCI | 5.4 | 0.9 | |||||||
Gains reclassified from AOCI to net income | Cost of sales | (2.7 | ) | (0.4 | ) | ||||
Gains recorded in AOCI, end of period | $ | 4.1 | $ | 1.4 |
(in millions) | Income statement caption | Fiscal 2017 | Fiscal 2016 | ||||||
(Losses) gains recorded in AOCI, beginning of period | $ | (3.7 | ) | $ | 5.7 | ||||
Current period gains (losses) recognized in OCI | 1.8 | (12.0 | ) | ||||||
(Gains) losses reclassified from AOCI to net income | Cost of sales | (0.2 | ) | 2.6 | |||||
Losses recorded in AOCI, end of period | $ | (2.1 | ) | $ | (3.7 | ) |
(in millions) | Income statement caption | Fiscal 2017 | Fiscal 2016 | ||||||
Losses recorded in AOCI, beginning of period | $ | (3.4 | ) | $ | — | ||||
Current period gains (losses) recognized in OCI | 1.6 | (6.1 | ) | ||||||
Losses reclassified from AOCI to net income | Interest expense, net | 2.2 | 2.7 | ||||||
Gains (losses) recorded in AOCI, end of period | $ | 0.4 | $ | (3.4 | ) |
Income statement caption | Amount of gains (losses) recognized in net income | ||||||||
(in millions) | Fiscal 2017 | Fiscal 2016 | |||||||
Derivatives not designated as hedging instruments: | |||||||||
Foreign currency contracts | Other operating income, net | $ | 6.3 | $ | (4.5 | ) |
|
January 28, 2017 | January 30, 2016 | ||||||||||||||||||||||
(in millions) | Carrying Value | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Carrying Value | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | |||||||||||||||||
Assets: | |||||||||||||||||||||||
US Treasury securities | $ | 8.1 | $ | 8.1 | $ | — | $ | 8.8 | $ | 8.8 | $ | — | |||||||||||
Corporate equity securities | 3.8 | 3.8 | — | 3.2 | 3.2 | — | |||||||||||||||||
Foreign currency contracts | 3.2 | — | 3.2 | 0.8 | — | 0.8 | |||||||||||||||||
Commodity contracts | — | — | — | 0.6 | — | 0.6 | |||||||||||||||||
Interest rate swaps | 0.4 | — | 0.4 | — | — | — | |||||||||||||||||
US government agency securities | 4.4 | — | 4.4 | 4.0 | — | 4.0 | |||||||||||||||||
Corporate bonds and notes | 10.9 | — | 10.9 | 10.8 | — | 10.8 | |||||||||||||||||
Total assets | $ | 30.8 | $ | 11.9 | $ | 18.9 | $ | 28.2 | $ | 12.0 | $ | 16.2 | |||||||||||
Liabilities: | |||||||||||||||||||||||
Foreign currency contracts | $ | (0.2 | ) | $ | — | $ | (0.2 | ) | $ | (0.2 | ) | $ | — | $ | (0.2 | ) | |||||||
Commodity contracts | (3.4 | ) | — | (3.4 | ) | (0.8 | ) | — | (0.8 | ) | |||||||||||||
Interest rate swaps | — | — | — | (3.4 | ) | — | (3.4 | ) | |||||||||||||||
Total liabilities | $ | (3.6 | ) | $ | — | $ | (3.6 | ) | $ | (4.4 | ) | $ | — | $ | (4.4 | ) |
January 28, 2017 | January 30, 2016 | ||||||||||||||
(in millions) | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||
Long-term debt | |||||||||||||||
Senior notes (Level 2) | $ | 393.7 | $ | 391.2 | $ | 392.8 | $ | 405.9 | |||||||
Securitization facility (Level 2) | 599.7 | 600.0 | 599.6 | 600.0 | |||||||||||
Term loan (Level 2) | 345.1 | 348.6 | 361.3 | 365.0 | |||||||||||
Capital lease obligations (Level 2) | — | — | 0.2 | 0.2 | |||||||||||
Total | $ | 1,338.5 | $ | 1,339.8 | $ | 1,353.9 | $ | 1,371.1 |
|
(in millions) | Fiscal 2017 | Fiscal 2016 | |||||
Change in UK Plan assets: | |||||||
Fair value at beginning of year | $ | 266.2 | $ | 295.8 | |||
Actual return on UK Plan assets | 18.2 | (4.8 | ) | ||||
Employer contributions | 3.3 | 2.5 | |||||
Members’ contributions | 0.6 | 0.7 | |||||
Benefits paid | (9.9 | ) | (11.2 | ) | |||
Foreign currency translation | (30.8 | ) | (16.8 | ) | |||
Fair value at end of year | $ | 247.6 | $ | 266.2 |
(in millions) | Fiscal 2017 | Fiscal 2016 | |||||
Change in benefit obligation: | |||||||
Benefit obligation at beginning of year | $ | 214.9 | $ | 258.8 | |||
Service cost | 2.0 | 2.6 | |||||
Past service cost | 0.5 | 0.6 | |||||
Interest cost | 7.2 | 7.7 | |||||
Members’ contributions | 0.6 | 0.7 | |||||
Actuarial (gain) loss | 24.1 | (29.4 | ) | ||||
Benefits paid | (9.9 | ) | (11.2 | ) | |||
Foreign currency translation | (23.7 | ) | (14.9 | ) | |||
Benefit obligation at end of year | $ | 215.7 | $ | 214.9 | |||
Funded status at end of year | $ | 31.9 | $ | 51.3 |
(in millions) | January 28, 2017 | January 30, 2016 | |||||
Amounts recognized in the balance sheet consist of: | |||||||
Non-current assets | $ | 31.9 | $ | 51.3 | |||
Non-current liabilities | — | — | |||||
Net asset recognized | $ | 31.9 | $ | 51.3 |
(in millions) | January 28, 2017 | January 30, 2016 | January 31, 2015 | ||||||||
Net actuarial losses | $ | (55.5 | ) | $ | (43.1 | ) | $ | (56.7 | ) | ||
Net prior service credits | 9.2 | 11.1 | 13.3 |
(in millions) | Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | ||||||||
Components of net periodic pension benefit (cost): | |||||||||||
Service cost | $ | (2.0 | ) | $ | (2.6 | ) | $ | (2.3 | ) | ||
Interest cost | (7.2 | ) | (7.7 | ) | (9.7 | ) | |||||
Expected return on UK Plan assets | 10.4 | 11.5 | 14.7 | ||||||||
Amortization of unrecognized actuarial losses | (1.5 | ) | (3.4 | ) | (2.0 | ) | |||||
Amortization of unrecognized net prior service credits | 1.9 | 2.2 | 1.7 | ||||||||
Net periodic pension benefit | $ | 1.6 | $ | — | $ | 2.4 | |||||
Other changes in assets and benefit obligations recognized in OCI | (17.8 | ) | 14.4 | (21.0 | ) | ||||||
Total recognized in net periodic pension benefit (cost) and OCI | $ | (16.2 | ) | $ | 14.4 | $ | (18.6 | ) |
January 28, 2017 | January 30, 2016 | ||||
Assumptions used to determine benefit obligations (at the end of the year): | |||||
Discount rate | 2.90 | % | 3.60 | % | |
Salary increases | 2.00 | % | 2.50 | % | |
Assumptions used to determine net periodic pension costs (at the start of the year): | |||||
Discount rate | 3.60 | % | 3.00 | % | |
Expected return on UK Plan assets | 4.20 | % | 3.90 | % | |
Salary increases | 2.50 | % | 2.50 | % |
Fair value measurements as of January 28, 2017 | Fair value measurements as of January 30, 2016 | ||||||||||||||||||||||
(in millions) | Total | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Total | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | |||||||||||||||||
Assets: | |||||||||||||||||||||||
Corporate-owned life insurance plans | $ | 7.5 | $ | — | $ | 7.5 | $ | 8.3 | $ | — | $ | 8.3 | |||||||||||
Money market funds | 29.6 | 29.6 | — | 25.1 | 25.1 | — | |||||||||||||||||
Total assets | $ | 37.1 | $ | 29.6 | $ | 7.5 | $ | 33.4 | $ | 25.1 | $ | 8.3 |
Fair value measurements as of January 28, 2017 | Fair value measurements as of January 30, 2016 | ||||||||||||||||||||||||||||||
(in millions) | Total | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant Unobservable inputs (Level 3) | Total | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | |||||||||||||||||||||||
Asset category: | |||||||||||||||||||||||||||||||
Diversified equity securities | $ | 22.3 | $ | — | $ | 22.3 | $ | — | $ | 21.2 | $ | 11.3 | $ | 9.9 | $ | — | |||||||||||||||
Diversified growth funds | 80.9 | 40.7 | 40.2 | — | 90.5 | 44.8 | 45.7 | — | |||||||||||||||||||||||
Fixed income – government bonds | 81.0 | — | 81.0 | — | 87.1 | — | 87.1 | — | |||||||||||||||||||||||
Fixed income – corporate bonds | 48.1 | — | 48.1 | — | 53.6 | — | 53.6 | — | |||||||||||||||||||||||
Property | 11.8 | — | — | 11.8 | 13.0 | — | — | 13.0 | |||||||||||||||||||||||
Cash | 3.5 | 3.5 | — | — | 0.8 | 0.8 | — | — | |||||||||||||||||||||||
Total | $ | 247.6 | $ | 44.2 | $ | 191.6 | $ | 11.8 | $ | 266.2 | $ | 56.9 | $ | 196.3 | $ | 13.0 |
(in millions) | Significant unobservable inputs (Level 3) | ||
Balance as of January 31, 2015 | $ | 12.3 | |
Actual return on assets | 0.7 | ||
Balance as of January 30, 2016 | $ | 13.0 | |
Actual return on assets | (1.2 | ) | |
Balance as of January 28, 2017 | $ | 11.8 |
(in millions) | Expected benefit payments | ||
Fiscal 2018 | $ | 9.7 | |
Fiscal 2019 | 7.3 | ||
Fiscal 2020 | 7.6 | ||
Fiscal 2021 | 8.0 | ||
Fiscal 2022 | 8.2 | ||
Thereafter | $ | 42.6 |
|
(in millions) | January 28, 2017 | January 30, 2016 | |||||
Debt: | |||||||
Senior unsecured notes due 2024, net of unamortized discount | $ | 398.8 | $ | 398.6 | |||
Securitization facility | 600.0 | 600.0 | |||||
Senior unsecured term loan | 348.6 | 365.0 | |||||
Revolving credit facility | 56.0 | — | |||||
Bank overdrafts | 14.2 | 24.4 | |||||
Capital lease obligations | — | 0.2 | |||||
Total debt | $ | 1,417.6 | $ | 1,388.2 | |||
Less: Current portion of loans and overdrafts | (91.1 | ) | (57.7 | ) | |||
Less: Unamortized capitalized debt issuance fees(1) | (8.6 | ) | (9.5 | ) | |||
Total long-term debt | $ | 1,317.9 | $ | 1,321.0 |
|
(in millions) | January 28, 2017 | January 30, 2016 | |||||
Accrued compensation | $ | 105.8 | $ | 162.3 | |||
Other liabilities | 33.0 | 36.0 | |||||
Other taxes | 45.1 | 45.1 | |||||
Payroll taxes | 9.9 | 11.5 | |||||
Accrued expenses | 284.4 | 243.4 | |||||
Total accrued expenses and other current liabilities | $ | 478.2 | $ | 498.3 |
(in millions) | Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | ||||||||
Sales return reserve, beginning of period | $ | 14.0 | $ | 15.3 | $ | 8.4 | |||||
Net adjustment(1) | (1.0 | ) | (1.3 | ) | 6.9 | ||||||
Sales return reserve, end of period | $ | 13.0 | $ | 14.0 | $ | 15.3 |
(in millions) | Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | ||||||||
Warranty reserve, beginning of period | $ | 41.9 | $ | 44.9 | $ | 19.1 | |||||
Warranty obligations acquired | — | — | 28.4 | ||||||||
Warranty expense(1) | 11.5 | 10.8 | 7.4 | ||||||||
Utilized(2) | (13.4 | ) | (13.8 | ) | (10.0 | ) | |||||
Warranty reserve, end of period | $ | 40.0 | $ | 41.9 | $ | 44.9 |
(1) | Includes impact of acquisition accounting adjustment related to warranty obligations acquired in the Zale Acquisition. |
(2) | Includes impact of foreign exchange translation. |
(in millions) | January 28, 2017 | January 30, 2016 | |||||
Disclosed as: | |||||||
Current liabilities(1) | $ | 13.0 | $ | 12.3 | |||
Non-current liabilities (see Note 23) | 27.0 | 29.6 | |||||
Total warranty reserve | $ | 40.0 | $ | 41.9 |
(1) | Included within accrued expenses above. |
|
(in millions) | January 28, 2017 | January 30, 2016 | |||||
Sterling Jewelers ESP deferred revenue | $ | 737.4 | $ | 715.1 | |||
Zale ESP deferred revenue | 168.2 | 146.1 | |||||
Voucher promotions and other | 30.3 | 28.2 | |||||
Total deferred revenue | $ | 935.9 | $ | 889.4 | |||
Disclosed as: | |||||||
Current liabilities | $ | 276.9 | $ | 260.3 | |||
Non-current liabilities | 659.0 | 629.1 | |||||
Total deferred revenue | $ | 935.9 | $ | 889.4 |
(in millions) | Fiscal 2017 | Fiscal 2016 | |||||
Sterling Jewelers ESP deferred revenue, beginning of period | $ | 715.1 | $ | 668.9 | |||
Plans sold | 290.8 | 281.2 | |||||
Revenue recognized | (268.5 | ) | (235.0 | ) | |||
Sterling Jewelers ESP deferred revenue, end of period | $ | 737.4 | $ | 715.1 |
(in millions) | Fiscal 2017 | Fiscal 2016 | |||||
Zale ESP deferred revenue, beginning of period | $ | 146.1 | $ | 120.3 | |||
Plans sold(1) | 150.1 | 138.6 | |||||
Revenue recognized | (128.0 | ) | (112.8 | ) | |||
Zale ESP deferred revenue, end of period | $ | 168.2 | $ | 146.1 |
|
(in millions) | January 28, 2017 | January 30, 2016 | |||||
Straight-line rent | $ | 87.2 | $ | 81.2 | |||
Deferred compensation | 40.7 | 36.5 | |||||
Warranty reserve | 27.0 | 29.6 | |||||
Lease loss reserve | 1.3 | 3.4 | |||||
Other liabilities | 57.5 | 79.8 | |||||
Total other liabilities | $ | 213.7 | $ | 230.5 |
(in millions) | Fiscal 2017 | Fiscal 2016 | |||||
Lease loss reserve, beginning of period | $ | 3.4 | $ | 4.2 | |||
Adjustments, net | (1.5 | ) | (0.2 | ) | |||
Utilization(1) | (0.6 | ) | (0.6 | ) | |||
Lease loss reserve, end of period | $ | 1.3 | $ | 3.4 |
(1) | Includes impact of foreign exchange translation. |
|
(in millions) | Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | ||||||||
Minimum rentals | $ | 524.4 | $ | 525.7 | $ | 462.9 | |||||
Contingent rent | 10.2 | 15.3 | 14.0 | ||||||||
Sublease income | (0.6 | ) | (0.7 | ) | (0.8 | ) | |||||
Total | $ | 534.0 | $ | 540.3 | $ | 476.1 |
(in millions) | |||
Fiscal 2018 | $ | 450.0 | |
Fiscal 2019 | 370.6 | ||
Fiscal 2020 | 329.8 | ||
Fiscal 2021 | 301.2 | ||
Fiscal 2022 | 265.6 | ||
Thereafter | 901.1 | ||
Total | $ | 2,618.3 |
|
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Sales | $ | — | $ | — | $ | 6,141.9 | $ | 266.5 | $ | — | $ | 6,408.4 | |||||||||||
Cost of sales | — | — | (3,997.2 | ) | (50.4 | ) | — | (4,047.6 | ) | ||||||||||||||
Gross margin | — | — | 2,144.7 | 216.1 | — | 2,360.8 | |||||||||||||||||
Selling, general and administrative expenses | (1.3 | ) | — | (1,775.1 | ) | (103.8 | ) | — | (1,880.2 | ) | |||||||||||||
Other operating income, net | — | — | 293.8 | (11.2 | ) | — | 282.6 | ||||||||||||||||
Operating (loss) income | (1.3 | ) | — | 663.4 | 101.1 | — | 763.2 | ||||||||||||||||
Intra-entity interest income (expense) | — | 18.8 | (188.4 | ) | 169.6 | — | — | ||||||||||||||||
Interest expense, net | — | (19.8 | ) | (16.6 | ) | (13.0 | ) | — | (49.4 | ) | |||||||||||||
(Loss) income before income taxes | (1.3 | ) | (1.0 | ) | 458.4 | 257.7 | — | 713.8 | |||||||||||||||
Income taxes | — | 0.2 | (175.1 | ) | 4.3 | — | (170.6 | ) | |||||||||||||||
Equity in income of subsidiaries | 544.5 | — | 276.4 | 295.7 | (1,116.6 | ) | — | ||||||||||||||||
Net income (loss) | 543.2 | (0.8 | ) | 559.7 | 557.7 | (1,116.6 | ) | 543.2 | |||||||||||||||
Dividends on redeemable convertible preferred shares | (11.9 | ) | — | — | — | — | (11.9 | ) | |||||||||||||||
Net income (loss) attributable to common shareholders | $ | 531.3 | $ | (0.8 | ) | $ | 559.7 | $ | 557.7 | $ | (1,116.6 | ) | $ | 531.3 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Sales | $ | — | $ | — | $ | 6,444.8 | $ | 105.4 | $ | — | $ | 6,550.2 | |||||||||||
Cost of sales | — | — | (4,089.3 | ) | (20.5 | ) | — | (4,109.8 | ) | ||||||||||||||
Gross margin | — | — | 2,355.5 | 84.9 | — | 2,440.4 | |||||||||||||||||
Selling, general and administrative expenses | (2.2 | ) | — | (1,942.7 | ) | (42.7 | ) | — | (1,987.6 | ) | |||||||||||||
Other operating income, net | — | — | 254.8 | (3.9 | ) | — | 250.9 | ||||||||||||||||
Operating (loss) income | (2.2 | ) | — | 667.6 | 38.3 | — | 703.7 | ||||||||||||||||
Intra-entity interest income (expense) | — | 18.8 | (186.0 | ) | 167.2 | — | — | ||||||||||||||||
Interest expense, net | — | (19.9 | ) | (14.8 | ) | (11.2 | ) | — | (45.9 | ) | |||||||||||||
(Loss) income before income taxes | (2.2 | ) | (1.1 | ) | 466.8 | 194.3 | — | 657.8 | |||||||||||||||
Income taxes | — | 0.2 | (192.7 | ) | 2.6 | — | (189.9 | ) | |||||||||||||||
Equity in income of subsidiaries | 470.1 | — | 281.4 | 293.9 | (1,045.4 | ) | — | ||||||||||||||||
Net income (loss) | 467.9 | (0.9 | ) | 555.5 | 490.8 | (1,045.4 | ) | 467.9 | |||||||||||||||
Dividends on redeemable convertible preferred shares | — | — | — | — | — | — | |||||||||||||||||
Net income (loss) attributable to common shareholders | $ | 467.9 | $ | (0.9 | ) | $ | 555.5 | $ | 490.8 | $ | (1,045.4 | ) | $ | 467.9 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Sales | $ | — | $ | — | $ | 5,671.4 | $ | 64.9 | $ | — | $ | 5,736.3 | |||||||||||
Cost of sales | — | — | (3,647.0 | ) | (15.1 | ) | — | (3,662.1 | ) | ||||||||||||||
Gross margin | — | — | 2,024.4 | 49.8 | — | 2,074.2 | |||||||||||||||||
Selling, general and administrative expenses | (2.5 | ) | — | (1,683.6 | ) | (26.8 | ) | — | (1,712.9 | ) | |||||||||||||
Other operating income, net | — | — | 220.8 | (5.5 | ) | — | 215.3 | ||||||||||||||||
Operating (loss) income | (2.5 | ) | — | 561.6 | 17.5 | — | 576.6 | ||||||||||||||||
Intra-entity interest income (expense) | — | 13.2 | (129.6 | ) | 116.4 | — | — | ||||||||||||||||
Interest expense, net | — | (13.9 | ) | (14.8 | ) | (7.3 | ) | — | (36.0 | ) | |||||||||||||
(Loss) income before income taxes | (2.5 | ) | (0.7 | ) | 417.2 | 126.6 | — | 540.6 | |||||||||||||||
Income taxes | — | 0.1 | (159.5 | ) | 0.1 | — | (159.3 | ) | |||||||||||||||
Equity in income of subsidiaries | 383.8 | — | 579.8 | 565.4 | (1,529.0 | ) | — | ||||||||||||||||
Net income (loss) | 381.3 | (0.6 | ) | 837.5 | 692.1 | (1,529.0 | ) | 381.3 | |||||||||||||||
Dividends on redeemable convertible preferred shares | — | — | — | — | — | — | |||||||||||||||||
Net income (loss) attributable to common shareholders | $ | 381.3 | $ | (0.6 | ) | $ | 837.5 | $ | 692.1 | $ | (1,529.0 | ) | $ | 381.3 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net income (loss) | $ | 543.2 | $ | (0.8 | ) | $ | 559.7 | $ | 557.7 | $ | (1,116.6 | ) | $ | 543.2 | |||||||||
Other comprehensive (loss) income: | |||||||||||||||||||||||
Foreign currency translation adjustments | (25.6 | ) | — | (31.2 | ) | 5.6 | 25.6 | (25.6 | ) | ||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||
Unrealized gain (loss) | — | — | — | — | — | — | |||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||
Unrealized gain (loss) | 6.9 | — | 6.9 | — | (6.9 | ) | 6.9 | ||||||||||||||||
Reclassification adjustment for losses to net income | (0.6 | ) | — | (0.6 | ) | — | 0.6 | (0.6 | ) | ||||||||||||||
Pension plan: | |||||||||||||||||||||||
Actuarial gain (loss) | (13.6 | ) | — | (13.6 | ) | — | 13.6 | (13.6 | ) | ||||||||||||||
Reclassification adjustment to net income for amortization of actuarial losses | 1.2 | — | 1.2 | — | (1.2 | ) | 1.2 | ||||||||||||||||
Prior service costs | (0.4 | ) | — | (0.4 | ) | — | 0.4 | (0.4 | ) | ||||||||||||||
Reclassification adjustment to net income for amortization of net prior service credits | (1.5 | ) | — | (1.5 | ) | — | 1.5 | (1.5 | ) | ||||||||||||||
Total other comprehensive (loss) income | (33.6 | ) | — | (39.2 | ) | 5.6 | 33.6 | (33.6 | ) | ||||||||||||||
Total comprehensive income (loss) | $ | 509.6 | $ | (0.8 | ) | $ | 520.5 | $ | 563.3 | $ | (1,083.0 | ) | $ | 509.6 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net income (loss) | $ | 467.9 | $ | (0.9 | ) | $ | 555.5 | $ | 490.8 | $ | (1,045.4 | ) | $ | 467.9 | |||||||||
Other comprehensive (loss) income: | |||||||||||||||||||||||
Foreign currency translation adjustments | (40.2 | ) | — | (44.8 | ) | 4.6 | 40.2 | (40.2 | ) | ||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||
Unrealized gain (loss) | (0.4 | ) | — | — | (0.4 | ) | 0.4 | (0.4 | ) | ||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||
Unrealized gain (loss) | (11.8 | ) | — | (11.8 | ) | — | 11.8 | (11.8 | ) | ||||||||||||||
Reclassification adjustment for losses to net income | 3.5 | — | 3.5 | — | (3.5 | ) | 3.5 | ||||||||||||||||
Pension plan: | |||||||||||||||||||||||
Actuarial gain (loss) | 10.9 | — | 10.9 | — | (10.9 | ) | 10.9 | ||||||||||||||||
Reclassification adjustment to net income for amortization of actuarial losses | 2.7 | — | 2.7 | — | (2.7 | ) | 2.7 | ||||||||||||||||
Prior service costs | (0.5 | ) | — | (0.5 | ) | — | 0.5 | (0.5 | ) | ||||||||||||||
Reclassification adjustment to net income for amortization of net prior service credits | (1.7 | ) | — | (1.7 | ) | — | 1.7 | (1.7 | ) | ||||||||||||||
Total other comprehensive (loss) income | (37.5 | ) | — | (41.7 | ) | 4.2 | 37.5 | (37.5 | ) | ||||||||||||||
Total comprehensive income (loss) | $ | 430.4 | $ | (0.9 | ) | $ | 513.8 | $ | 495.0 | $ | (1,007.9 | ) | $ | 430.4 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net income (loss) | $ | 381.3 | $ | (0.6 | ) | $ | 837.5 | $ | 692.1 | $ | (1,529.0 | ) | $ | 381.3 | |||||||||
Other comprehensive (loss) income: | |||||||||||||||||||||||
Foreign currency translation adjustments | (60.6 | ) | — | (61.1 | ) | 4.6 | 56.5 | (60.6 | ) | ||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||
Unrealized gain (loss) | — | — | — | — | — | — | |||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||
Unrealized gain (loss) | 6.2 | — | 6.2 | — | (6.2 | ) | 6.2 | ||||||||||||||||
Reclassification adjustment for losses to net income | 12.5 | — | 12.5 | — | (12.5 | ) | 12.5 | ||||||||||||||||
Pension plan: | |||||||||||||||||||||||
Actuarial gain (loss) | (15.8 | ) | — | (15.8 | ) | — | 15.8 | (15.8 | ) | ||||||||||||||
Reclassification adjustment to net income for amortization of actuarial losses | 1.6 | — | 1.6 | — | (1.6 | ) | 1.6 | ||||||||||||||||
Prior service costs | (0.7 | ) | — | (0.7 | ) | — | 0.7 | (0.7 | ) | ||||||||||||||
Reclassification adjustment to net income for amortization of net prior service credits | (1.3 | ) | — | (1.3 | ) | — | 1.3 | (1.3 | ) | ||||||||||||||
Total other comprehensive (loss) income | (58.1 | ) | — | (58.6 | ) | 4.6 | 54.0 | (58.1 | ) | ||||||||||||||
Total comprehensive income (loss) | $ | 323.2 | $ | (0.6 | ) | $ | 778.9 | $ | 696.7 | $ | (1,475.0 | ) | $ | 323.2 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Assets | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 1.7 | $ | 0.1 | $ | 70.3 | $ | 26.6 | $ | — | $ | 98.7 | |||||||||||
Accounts receivable, net | — | — | 1,858.0 | — | — | 1,858.0 | |||||||||||||||||
Intra-entity receivables, net | 12.7 | — | 145.1 | — | (157.8 | ) | — | ||||||||||||||||
Other receivables | — | — | 71.1 | 24.8 | — | 95.9 | |||||||||||||||||
Other current assets | — | — | 131.4 | 4.9 | — | 136.3 | |||||||||||||||||
Income taxes | — | — | 4.4 | — | — | 4.4 | |||||||||||||||||
Inventories | — | — | 2,371.8 | 77.5 | — | 2,449.3 | |||||||||||||||||
Total current assets | 14.4 | 0.1 | 4,652.1 | 133.8 | (157.8 | ) | 4,642.6 | ||||||||||||||||
Non-current assets: | |||||||||||||||||||||||
Property, plant and equipment, net | — | — | 818.5 | 4.4 | — | 822.9 | |||||||||||||||||
Goodwill | — | — | 514.0 | 3.6 | — | 517.6 | |||||||||||||||||
Intangible assets, net | — | — | 417.0 | — | — | 417.0 | |||||||||||||||||
Investment in subsidiaries | 3,117.6 | — | 721.6 | 590.9 | (4,430.1 | ) | — | ||||||||||||||||
Intra-entity receivables, net | — | 402.9 | — | 3,647.1 | (4,050.0 | ) | — | ||||||||||||||||
Other assets | — | — | 134.8 | 30.3 | — | 165.1 | |||||||||||||||||
Deferred tax assets | — | — | 0.6 | 0.1 | — | 0.7 | |||||||||||||||||
Retirement benefit asset | — | — | 31.9 | — | — | 31.9 | |||||||||||||||||
Total assets | $ | 3,132.0 | $ | 403.0 | $ | 7,290.5 | $ | 4,410.2 | $ | (8,637.9 | ) | $ | 6,597.8 | ||||||||||
Liabilities and Shareholders’ equity | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Loans and overdrafts | $ | — | $ | (0.7 | ) | $ | 91.8 | $ | — | $ | — | $ | 91.1 | ||||||||||
Accounts payable | — | — | 248.2 | 7.5 | — | 255.7 | |||||||||||||||||
Intra-entity payables, net | — | — | — | 157.8 | (157.8 | ) | — | ||||||||||||||||
Accrued expenses and other current liabilities | 29.9 | 2.5 | 429.2 | 16.6 | — | 478.2 | |||||||||||||||||
Deferred revenue | — | — | 275.5 | 1.4 | — | 276.9 | |||||||||||||||||
Income taxes | — | (0.2 | ) | 115.5 | (13.5 | ) | — | 101.8 | |||||||||||||||
Total current liabilities | 29.9 | 1.6 | 1,160.2 | 169.8 | (157.8 | ) | 1,203.7 | ||||||||||||||||
Non-current liabilities: | |||||||||||||||||||||||
Long-term debt | — | 394.3 | 323.6 | 600.0 | — | 1,317.9 | |||||||||||||||||
Intra-entity payables, net | — | — | 4,050.0 | — | (4,050.0 | ) | — | ||||||||||||||||
Other liabilities | — | — | 208.7 | 5.0 | — | 213.7 | |||||||||||||||||
Deferred revenue | — | — | 659.0 | — | — | 659.0 | |||||||||||||||||
Deferred tax liabilities | — | — | 101.4 | — | — | 101.4 | |||||||||||||||||
Total liabilities | 29.9 | 395.9 | 6,502.9 | 774.8 | (4,207.8 | ) | 3,495.7 | ||||||||||||||||
Series A redeemable convertible preferred shares | 611.9 | — | — | — | — | 611.9 | |||||||||||||||||
Total shareholders’ equity | 2,490.2 | 7.1 | 787.6 | 3,635.4 | (4,430.1 | ) | 2,490.2 | ||||||||||||||||
Total liabilities, redeemable convertible preferred shares and shareholders’ equity | $ | 3,132.0 | $ | 403.0 | $ | 7,290.5 | $ | 4,410.2 | $ | (8,637.9 | ) | $ | 6,597.8 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Assets | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 1.9 | $ | 0.1 | $ | 102.0 | $ | 33.7 | $ | — | $ | 137.7 | |||||||||||
Accounts receivable, net | — | — | 1,753.0 | 3.4 | — | 1,756.4 | |||||||||||||||||
Intra-entity receivables, net | 28.7 | — | — | 380.1 | (408.8 | ) | — | ||||||||||||||||
Other receivables | — | — | 68.8 | 15.2 | — | 84.0 | |||||||||||||||||
Other current assets | 0.1 | — | 144.2 | 8.3 | — | 152.6 | |||||||||||||||||
Income taxes | — | 0.2 | 2.3 | 1.0 | — | 3.5 | |||||||||||||||||
Inventories | — | — | 2,372.7 | 81.2 | — | 2,453.9 | |||||||||||||||||
Total current assets | 30.7 | 0.3 | 4,443.0 | 522.9 | (408.8 | ) | 4,588.1 | ||||||||||||||||
Non-current assets: | |||||||||||||||||||||||
Property, plant and equipment, net | — | — | 722.3 | 5.3 | — | 727.6 | |||||||||||||||||
Goodwill | — | — | 511.9 | 3.6 | — | 515.5 | |||||||||||||||||
Intangible assets, net | — | — | 427.8 | — | — | 427.8 | |||||||||||||||||
Investment in subsidiaries | 3,047.8 | — | 762.9 | 600.0 | (4,410.7 | ) | — | ||||||||||||||||
Intra-entity receivables, net | — | 402.6 | — | 3,467.4 | (3,870.0 | ) | — | ||||||||||||||||
Other assets | — | — | 124.5 | 30.1 | — | 154.6 | |||||||||||||||||
Deferred tax assets | — | — | — | — | — | — | |||||||||||||||||
Retirement benefit asset | — | — | 51.3 | — | — | 51.3 | |||||||||||||||||
Total assets | $ | 3,078.5 | $ | 402.9 | $ | 7,043.7 | $ | 4,629.3 | $ | (8,689.5 | ) | $ | 6,464.9 | ||||||||||
Liabilities and Shareholders’ equity | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Loans and overdrafts | $ | — | $ | (0.7 | ) | $ | 58.4 | $ | — | $ | — | $ | 57.7 | ||||||||||
Accounts payable | — | — | 260.3 | 8.8 | — | 269.1 | |||||||||||||||||
Intra-entity payables, net | — | — | 408.8 | — | (408.8 | ) | — | ||||||||||||||||
Accrued expenses and other current liabilities | 17.8 | 2.4 | 467.0 | 11.1 | — | 498.3 | |||||||||||||||||
Deferred revenue | — | — | 260.3 | — | — | 260.3 | |||||||||||||||||
Income taxes | — | — | 68.4 | (2.7 | ) | — | 65.7 | ||||||||||||||||
Total current liabilities | 17.8 | 1.7 | 1,523.2 | 17.2 | (408.8 | ) | 1,151.1 | ||||||||||||||||
Non-current liabilities: | |||||||||||||||||||||||
Long-term debt | — | 393.5 | 327.5 | 600.0 | — | 1,321.0 | |||||||||||||||||
Intra-entity payables, net | — | — | 3,870.0 | — | (3,870.0 | ) | — | ||||||||||||||||
Other liabilities | — | — | 223.6 | 6.9 | — | 230.5 | |||||||||||||||||
Deferred revenue | — | — | 629.1 | — | — | 629.1 | |||||||||||||||||
Deferred tax liabilities | — | — | 73.0 | (0.5 | ) | — | 72.5 | ||||||||||||||||
Total liabilities | 17.8 | 395.2 | 6,646.4 | 623.6 | (4,278.8 | ) | 3,404.2 | ||||||||||||||||
Series A redeemable convertible preferred shares | — | — | — | — | — | — | |||||||||||||||||
Total shareholders’ equity | 3,060.7 | 7.7 | 397.3 | 4,005.7 | (4,410.7 | ) | 3,060.7 | ||||||||||||||||
Total liabilities, redeemable convertible preferred shares and shareholders’ equity | $ | 3,078.5 | $ | 402.9 | $ | 7,043.7 | $ | 4,629.3 | $ | (8,689.5 | ) | $ | 6,464.9 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net cash provided by (used in) operating activities | $ | 98.6 | $ | (0.1 | ) | $ | 325.7 | $ | 215.0 | $ | (195.9 | ) | $ | 443.3 | |||||||||
Investing activities | |||||||||||||||||||||||
Purchase of property, plant and equipment | — | — | (225.9 | ) | (0.6 | ) | — | (226.5 | ) | ||||||||||||||
Investment in subsidiaries | — | — | (0.3 | ) | — | 0.3 | — | ||||||||||||||||
Purchase of available-for-sale securities | — | — | — | (6.2 | ) | — | (6.2 | ) | |||||||||||||||
Proceeds from available-for-sale securities | — | — | — | 4.0 | — | 4.0 | |||||||||||||||||
Acquisition of Zale Corporation, net of cash acquired | — | — | — | — | — | — | |||||||||||||||||
Net cash (used in) provided by investing activities | — | — | (226.2 | ) | (2.8 | ) | 0.3 | (228.7 | ) | ||||||||||||||
Financing activities | |||||||||||||||||||||||
Dividends paid on common shares | (67.1 | ) | — | — | — | — | (67.1 | ) | |||||||||||||||
Intra-entity dividends paid | — | — | (149.3 | ) | (46.6 | ) | 195.9 | — | |||||||||||||||
Proceeds from issuance of redeemable convertible preferred shares, net of issuance costs | — | — | — | — | — | — | |||||||||||||||||
Proceeds from issuance of common shares | 5.0 | 0.3 | — | — | (0.3 | ) | 5.0 | ||||||||||||||||
Excess tax benefit from exercise of share awards | — | — | 6.9 | — | — | 6.9 | |||||||||||||||||
Proceeds from senior notes | — | — | — | — | — | — | |||||||||||||||||
Proceeds from term loan | — | — | — | — | — | — | |||||||||||||||||
Repayments of term loan | — | — | (25.0 | ) | — | — | (25.0 | ) | |||||||||||||||
Proceeds from securitization facility | — | — | — | 2,303.9 | — | 2,303.9 | |||||||||||||||||
Repayment of securitization facility | — | — | — | (2,303.9 | ) | — | (2,303.9 | ) | |||||||||||||||
Proceeds from revolving credit facility | — | — | 316.0 | — | — | 316.0 | |||||||||||||||||
Repayments of revolving credit facility | — | — | (316.0 | ) | — | — | (316.0 | ) | |||||||||||||||
Payment of debt issuance costs | — | — | — | — | — | — | |||||||||||||||||
Repurchase of common shares | (130.0 | ) | — | — | — | — | (130.0 | ) | |||||||||||||||
Net settlement of equity based awards | (8.3 | ) | — | — | — | — | (8.3 | ) | |||||||||||||||
Principal payments under capital lease obligations | — | — | (1.0 | ) | — | — | (1.0 | ) | |||||||||||||||
Proceeds from (repayment of) short-term borrowings | — | — | (47.1 | ) | — | — | (47.1 | ) | |||||||||||||||
Intra-entity activity, net | 101.6 | (0.2 | ) | 54.9 | (156.3 | ) | — | — | |||||||||||||||
Net cash (used in) provided by financing activities | (98.8 | ) | 0.1 | (160.6 | ) | (202.9 | ) | 195.6 | (266.6 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | 2.1 | 0.1 | 166.5 | 24.9 | — | 193.6 | |||||||||||||||||
Increase (decrease) in cash and cash equivalents | (0.2 | ) | — | (61.1 | ) | 9.3 | — | (52.0 | ) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (3.4 | ) | (0.5 | ) | — | (3.9 | ) | ||||||||||||||
Cash and cash equivalents at end of period | $ | 1.9 | $ | 0.1 | $ | 102.0 | $ | 33.7 | $ | — | $ | 137.7 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net cash provided by (used in) operating activities | $ | 150.5 | $ | 2.2 | $ | 166.6 | $ | 116.7 | $ | (153.0 | ) | $ | 283.0 | ||||||||||
Investing activities | |||||||||||||||||||||||
Purchase of property, plant and equipment | — | — | (219.8 | ) | (0.4 | ) | — | (220.2 | ) | ||||||||||||||
Investment in subsidiaries | — | — | (18.9 | ) | (10.0 | ) | 28.9 | — | |||||||||||||||
Purchase of available-for-sale securities | — | — | — | (5.7 | ) | — | (5.7 | ) | |||||||||||||||
Proceeds from available-for-sale securities | — | — | — | 2.5 | — | 2.5 | |||||||||||||||||
Acquisition of Zale Corporation, net of cash acquired | — | — | (1,431.1 | ) | 1.9 | — | (1,429.2 | ) | |||||||||||||||
Net cash (used in) provided by investing activities | — | — | (1,669.8 | ) | (11.7 | ) | 28.9 | (1,652.6 | ) | ||||||||||||||
Financing activities | |||||||||||||||||||||||
Dividends paid on common shares | (55.3 | ) | — | — | — | — | (55.3 | ) | |||||||||||||||
Intra-entity dividends paid | — | — | (953.0 | ) | — | 953.0 | — | ||||||||||||||||
Proceeds from issuance of common shares | 6.1 | 8.9 | 10.0 | 810.0 | (828.9 | ) | 6.1 | ||||||||||||||||
Proceeds from issuance of redeemable convertible preferred shares, net of issuance costs | — | — | — | — | — | — | |||||||||||||||||
Excess tax benefit from exercise of share awards | — | — | 11.8 | — | — | 11.8 | |||||||||||||||||
Proceeds from senior notes | — | 398.4 | — | — | — | 398.4 | |||||||||||||||||
Proceeds from term loan | — | — | 400.0 | — | — | 400.0 | |||||||||||||||||
Repayments of term loan | — | — | (10.0 | ) | — | — | (10.0 | ) | |||||||||||||||
Proceeds from securitization facility | — | — | — | 1,941.9 | — | 1,941.9 | |||||||||||||||||
Repayment of securitization facility | — | — | — | (1,341.9 | ) | — | (1,341.9 | ) | |||||||||||||||
Proceeds from revolving credit facility | — | — | 260.0 | — | — | 260.0 | |||||||||||||||||
Repayments of revolving credit facility | — | — | (260.0 | ) | — | — | (260.0 | ) | |||||||||||||||
Payment of debt issuance costs | — | (7.0 | ) | (10.7 | ) | (2.8 | ) | — | (20.5 | ) | |||||||||||||
Repurchase of common shares | (29.8 | ) | — | — | — | — | (29.8 | ) | |||||||||||||||
Net settlement of equity based awards | (18.4 | ) | — | — | — | — | (18.4 | ) | |||||||||||||||
Principal payments under capital lease obligations | — | — | (0.8 | ) | — | — | (0.8 | ) | |||||||||||||||
Proceeds from (repayment of) short-term borrowings | — | — | 39.4 | — | — | 39.4 | |||||||||||||||||
Intra-entity activity, net | (52.4 | ) | (402.4 | ) | 1,957.9 | (1,503.1 | ) | — | — | ||||||||||||||
Net cash (used in) provided by financing activities | (149.8 | ) | (2.1 | ) | 1,444.6 | (95.9 | ) | 124.1 | 1,320.9 | ||||||||||||||
Cash and cash equivalents at beginning of period | 1.4 | — | 237.0 | 9.2 | — | 247.6 | |||||||||||||||||
Increase (decrease) in cash and cash equivalents | 0.7 | 0.1 | (58.6 | ) | 9.1 | — | (48.7 | ) | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (11.9 | ) | 6.6 | — | (5.3 | ) | |||||||||||||||
Cash and cash equivalents at end of period | $ | 2.1 | $ | 0.1 | $ | 166.5 | $ | 24.9 | $ | — | $ | 193.6 |
|
Fiscal 2017 Quarters ended | |||||||||||||||
(in millions, except per share amounts) | April 30, 2016 | July 30, 2016 | October 29, 2016 | January 28, 2017 | |||||||||||
Sales | $ | 1,578.9 | $ | 1,373.4 | $ | 1,186.2 | $ | 2,269.9 | |||||||
Gross margin | 600.4 | 464.9 | 350.0 | 945.5 | |||||||||||
Net income attributable to common shareholders | 146.8 | 81.9 | 14.8 | 287.8 | |||||||||||
Earnings per common share: | |||||||||||||||
Basic | $ | 1.87 | $ | 1.06 | $ | 0.20 | $ | 4.17 | |||||||
Diluted | $ | 1.87 | $ | 1.06 | $ | 0.20 | $ | 3.92 |
Fiscal 2016 Quarters ended | |||||||||||||||
(in millions, except per share amounts) | May 2, 2015 | August 1, 2015 | October 31, 2015 | January 30, 2016 | |||||||||||
Sales | $ | 1,530.6 | $ | 1,410.6 | $ | 1,216.4 | $ | 2,392.6 | |||||||
Gross margin | 565.9 | 490.8 | 367.7 | 1,016.0 | |||||||||||
Net income attributable to common shareholders | 118.8 | 62.2 | 15.0 | 271.9 | |||||||||||
Earnings per common share: | |||||||||||||||
Basic | $ | 1.49 | $ | 0.78 | $ | 0.19 | $ | 3.43 | |||||||
Diluted | $ | 1.48 | $ | 0.78 | $ | 0.19 | $ | 3.42 |
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