SIGNET JEWELERS LTD, 10-K filed on 3/16/2017
Annual Report
Document and Entity Information (USD $)
12 Months Ended
Jan. 28, 2017
Mar. 10, 2017
Jul. 29, 2016
Document And Entity Information [Abstract]
 
 
 
Document type
10-K 
 
 
Amendment flag
false 
 
 
Document period end date
Jan. 28, 2017 
 
 
Document fiscal year focus
2017 
 
 
Document fiscal period focus
FY 
 
 
Trading symbol
SIG 
 
 
Entity registrant name
SIGNET JEWELERS LTD 
 
 
Entity Central Index Key
0000832988 
 
 
Current Fiscal Year End Date
--01-28 
 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Common Stock, Shares outstanding
 
68,300,375 
 
Entity Public Float
 
 
$ 6,638,040,057 
Consolidated Income Statements (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Jan. 28, 2017
Oct. 29, 2016
Jul. 30, 2016
Apr. 30, 2016
Jan. 30, 2016
Oct. 31, 2015
Aug. 1, 2015
May 2, 2015
Jan. 31, 2015
Nov. 1, 2014
Aug. 2, 2014
May 3, 2014
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Income Statement [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$ 2,269.9 
$ 1,186.2 
$ 1,373.4 
$ 1,578.9 
$ 2,392.6 
$ 1,216.4 
$ 1,410.6 
$ 1,530.6 
 
 
 
 
$ 6,408.4 
$ 6,550.2 
$ 5,736.3 
Cost of sales
 
 
 
 
 
 
 
 
 
 
 
 
(4,047.6)
(4,109.8)
(3,662.1)
Gross margin
945.5 
350.0 
464.9 
600.4 
1,016.0 
367.7 
490.8 
565.9 
 
 
 
 
2,360.8 
2,440.4 
2,074.2 
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
 
 
 
 
(1,880.2)
(1,987.6)
(1,712.9)
Other operating income, net
 
 
 
 
 
 
 
 
 
 
 
 
282.6 
250.9 
215.3 
Operating income
 
 
 
 
 
 
 
 
 
 
 
 
763.2 
703.7 
576.6 
Interest expense, net
 
 
 
 
 
 
 
 
 
 
 
 
(49.4)
(45.9)
(36.0)
Income before income taxes
 
 
 
 
 
 
 
 
 
 
 
 
713.8 
657.8 
540.6 
Income taxes
 
 
 
 
 
 
 
 
 
 
 
 
(170.6)
(189.9)
(159.3)
Net income
287.8 
14.8 
81.9 
146.8 
271.9 
15.0 
62.2 
118.8 
 
 
 
 
543.2 
467.9 
381.3 
Dividends on redeemable convertible preferred shares
 
 
 
 
 
 
 
 
 
 
 
 
(11.9)
Net income attributable to common shareholders
 
 
 
 
 
 
 
 
 
 
 
 
$ 531.3 
$ 467.9 
$ 381.3 
Earnings per common share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings per share: basic (usd per share)
$ 4.17 
$ 0.20 
$ 1.06 
$ 1.87 
$ 3.43 
$ 0.19 
$ 0.78 
$ 1.49 
 
 
 
 
$ 7.13 
$ 5.89 
$ 4.77 
Earnings per share: diluted (usd per share)
$ 3.92 
$ 0.20 
$ 1.06 
$ 1.87 
$ 3.42 
$ 0.19 
$ 0.78 
$ 1.48 
 
 
 
 
$ 7.08 
$ 5.87 
$ 4.75 
Weighted Average Number of Shares Outstanding, Diluted [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding: basic (in shares)
 
 
 
 
 
 
 
 
 
 
 
 
74.5 
79.5 
79.9 
Weighted average common shares outstanding: diluted (in shares)
 
 
 
 
 
 
 
 
 
 
 
 
76.7 
79.7 
80.2 
Dividends declared per common share (usd per share)
$ 0.26 
$ 0.26 
$ 0.26 
$ 0.26 
$ 0.22 
$ 0.22 
$ 0.22 
$ 0.22 
$ 0.18 
$ 0.18 
$ 0.18 
$ 0.18 
$ 1.04 
$ 0.88 
$ 0.72 
Consolidated Statements Of Comprehensive Income (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Pre-tax amount
 
 
 
Foreign currency translation adjustments
$ (25.6)
$ (40.2)
$ (60.6)
Available-for-sale securities:
 
 
 
Unrealized gain (loss)
(0.7)
Cash flow hedges:
 
 
 
Unrealized gain (loss)
8.8 
(17.2)
9.1 
Reclassification adjustment for losses to net income
(0.7)
4.9 
18.6 
Pension plan:
 
 
 
Actuarial gain (loss)
(16.9)
13.8 
(20.4)
Reclassification adjustment to net income for amortization of actuarial losses
1.5 
3.4 
2.0 
Prior service costs
(0.5)
(0.6)
(0.9)
Reclassification adjustment to net income for amortization of net prior service credits
(1.9)
(2.2)
(1.7)
Total other comprehensive (loss) income
(35.3)
(38.8)
(53.9)
Tax (expense) benefit
 
 
 
Foreign currency translation adjustments
Available-for-sale securities:
 
 
 
Unrealized gain (loss)
0.3 
Cash flow hedges:
 
 
 
Unrealized gain (loss)
(1.9)
5.4 
(2.9)
Reclassification adjustment for losses to net income
0.1 
(1.4)
(6.1)
Pension plan:
 
 
 
Actuarial gain (loss)
3.3 
(2.9)
4.6 
Reclassification adjustment to net income for amortization of actuarial losses
(0.3)
(0.7)
(0.4)
Prior service costs
0.1 
0.1 
0.2 
Reclassification adjustment to net income for amortization of net prior service credits
0.4 
0.5 
0.4 
Total other comprehensive (loss) income
1.7 
1.3 
(4.2)
After-tax amount
 
 
 
Net income
543.2 
467.9 
381.3 
Foreign currency translation adjustments
(25.6)
(40.2)
(60.6)
Available-for-sale securities:
 
 
 
Unrealized gain (loss)
(0.4)
Cash flow hedges:
 
 
 
Unrealized gain (loss)
6.9 
(11.8)
6.2 
Reclassification adjustment for losses to net income
0.6 
(3.5)
(12.5)
Pension plan:
 
 
 
Actuarial gain (loss)
(13.6)
10.9 
(15.8)
Reclassification adjustment to net income for amortization of actuarial losses
1.2 
2.7 
1.6 
Prior service costs
(0.4)
(0.5)
(0.7)
Reclassification adjustment to net income for amortization of net prior service credits
(1.5)
(1.7)
(1.3)
Total other comprehensive (loss) income
(33.6)
(37.5)
(58.1)
Total comprehensive income
$ 509.6 
$ 430.4 
$ 323.2 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Jan. 30, 2016
Current assets:
 
 
Cash and cash equivalents
$ 98.7 
$ 137.7 
Accounts receivable, net
1,858.0 
1,756.4 
Other receivables
95.9 
84.0 
Other current assets
136.3 
152.6 
Income taxes
4.4 
3.5 
Inventories
2,449.3 
2,453.9 
Total current assets
4,642.6 
4,588.1 
Non-current assets:
 
 
Property, plant and equipment, net
822.9 
727.6 
Goodwill
517.6 
515.5 
Intangible assets, net
417.0 
427.8 
Other assets
165.1 
154.6 
Deferred tax assets
0.7 
Retirement benefit asset
31.9 
51.3 
Total assets
6,597.8 
6,464.9 
Current liabilities:
 
 
Loans and overdrafts
91.1 
57.7 
Accounts payable
255.7 
269.1 
Accrued expenses and other current liabilities
478.2 
498.3 
Deferred revenue
276.9 
260.3 
Income taxes
101.8 
65.7 
Total current liabilities
1,203.7 
1,151.1 
Non-current liabilities:
 
 
Long-term debt
1,317.9 
1,321.0 
Other liabilities
213.7 
230.5 
Deferred revenue
659.0 
629.1 
Deferred tax liabilities
101.4 
72.5 
Total liabilities
3,495.7 
3,404.2 
Commitments and contingencies
   
   
Shareholders’ equity:
 
 
Common shares of $0.18 par value: authorized 500 shares, 68.3 shares outstanding (2016: 79.4 outstanding)
15.7 
15.7 
Additional paid-in capital
280.7 
279.9 
Other reserves
0.4 
0.4 
Treasury shares at cost: 18.9 shares (2016: 7.8 shares)
(1,494.8)
(495.8)
Retained earnings
3,995.9 
3,534.6 
Accumulated other comprehensive loss
(307.7)
(274.1)
Total shareholders’ equity
2,490.2 
3,060.7 
Total liabilities, redeemable convertible preferred shares and shareholders’ equity
6,597.8 
6,464.9 
Series A Redeemable Convertible Preferred Stock
 
 
Non-current liabilities:
 
 
Series A redeemable convertible preferred shares of $0.01 par value: 500 shares authorized, 0.625 shares outstanding
$ 611.9 
$ 0 
Consolidated Balance Sheets (Parenthetical) (USD $)
Jan. 28, 2017
Jan. 30, 2016
Common shares, par value (usd per share)
$ 0.18 
$ 0.18 
Common shares, authorized
500,000,000 
500,000,000 
Common shares, outstanding
68,300,000 
79,400,000 
Treasury shares, shares
18,900,000 
7,800,000 
Series A Redeemable Convertible Preferred Stock
 
 
Preferred shares, par value (usd per share)
$ 0.01 
 
Preferred shares, authorized
500,000,000 
 
Preferred shares, outstanding
625,000 
 
Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Cash flows from operating activities:
 
 
 
Net income
$ 543.2 
$ 467.9 
$ 381.3 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
188.8 
175.3 
149.7 
Amortization of unfavorable leases and contracts
(19.7)
(28.7)
(23.7)
Pension benefit
(1.6)
(2.4)
Share-based compensation
8.0 
16.4 
12.1 
Deferred taxation
27.7 
25.0 
(47.6)
Excess tax benefit from exercise of share awards
(2.4)
(6.9)
(11.8)
Amortization of debt discount and issuance costs
2.8 
3.6 
7.4 
Other non-cash movements
0.4 
3.6 
2.7 
Changes in operating assets and liabilities:
 
 
 
Increase in accounts receivable
(102.7)
(189.8)
(194.6)
Increase in other receivables and other assets
(20.4)
(44.1)
(18.0)
Decrease (increase) in other current assets
13.5 
(26.5)
(35.5)
Increase in inventories
(9.7)
(46.0)
(121.6)
(Decrease) increase in accounts payable
(7.0)
(6.4)
23.7 
(Decrease) increase in accrued expenses and other liabilities
(21.8)
51.8 
64.8 
Increase in deferred revenue
43.6 
76.3 
102.3 
Increase (decrease) in income taxes payable
38.9 
(25.7)
(1.6)
Pension plan contributions
(3.3)
(2.5)
(4.2)
Net cash provided by operating activities
678.3 
443.3 
283.0 
Investing activities
 
 
 
Purchase of property, plant and equipment
(278.0)
(226.5)
(220.2)
Purchase of available-for-sale securities
(10.4)
(6.2)
(5.7)
Proceeds from sale of available-for-sale securities
10.0 
4.0 
2.5 
Net cash used in investing activities
(278.4)
(228.7)
(1,652.6)
Financing activities
 
 
 
Dividends paid on common shares
(75.6)
(67.1)
(55.3)
Proceeds from issuance of common shares
2.1 
5.0 
6.1 
Proceeds from issuance of redeemable convertible preferred shares, net of issuance costs
611.3 
Excess tax benefit from exercise of share awards
2.4 
6.9 
11.8 
Proceeds from revolving credit facility
1,270.0 
316.0 
260.0 
Repayments of revolving credit facility
(1,214.0)
(316.0)
(260.0)
Payment of debt issuance costs
(2.7)
(20.5)
Repurchase of common shares
(1,000.0)
(130.0)
(29.8)
Net settlement of equity based awards
(4.9)
(8.3)
(18.4)
Principal payments under capital lease obligations
(0.2)
(1.0)
(0.8)
Proceeds from (repayment of) short-term borrowings
(10.2)
(47.1)
39.4 
Net cash (used in) provided by financing activities
(438.2)
(266.6)
1,320.9 
Cash and cash equivalents at beginning of period
137.7 
193.6 
247.6 
Decrease in cash and cash equivalents
(38.3)
(52.0)
(48.7)
Effect of exchange rate changes on cash and cash equivalents
(0.7)
(3.9)
(5.3)
Cash and cash equivalents at end of period
98.7 
137.7 
193.6 
Non-cash investing activities:
 
 
 
Capital expenditures in accounts payable
9.2 
9.3 
6.2 
Supplemental cash flow information:
 
 
 
Interest paid
47.1 
41.6 
25.4 
Income taxes paid
104.0 
180.1 
208.8 
Senior Notes
 
 
 
Financing activities
 
 
 
Proceeds from debt
398.4 
Term Loan
 
 
 
Financing activities
 
 
 
Proceeds from debt
400.0 
Repayments of debt
(16.4)
(25.0)
(10.0)
Securitization facility
 
 
 
Financing activities
 
 
 
Proceeds from debt
2,404.1 
2,303.9 
1,941.9 
Repayments of debt
(2,404.1)
(2,303.9)
(1,341.9)
Zale
 
 
 
Investing activities
 
 
 
Acquisition of Zale Corporation, net of cash acquired
$ 0 
$ 0 
$ (1,429.2)
Consolidated Statements Of Shareholders' Equity (USD $)
In Millions, unless otherwise specified
Total
Common shares at par value
Additional paid-in capital
Other reserves
Treasury shares
Retained earnings
Accumulated other comprehensive (loss) income
Balance at Feb. 01, 2014
$ 2,563.1 
$ 15.7 
$ 258.8 
$ 0.4 
$ (346.2)
$ 2,812.9 
$ (178.5)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
Net income
381.3 
381.3 
Other comprehensive loss
(58.1)
(58.1)
Dividends on common shares
(57.7)
(57.7)
Repurchase of common shares
(29.8)
(29.8)
Net settlement of equity based awards
(6.6)
(3.0)
(3.2)
(0.4)
Share options exercised
6.1 
(2.7)
9.2 
(0.4)
Share-based compensation expense
12.1 
12.1 
Balance at Jan. 31, 2015
2,810.4 
15.7 
265.2 
0.4 
(370.0)
3,135.7 
(236.6)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
Net income
467.9 
467.9 
Other comprehensive loss
(37.5)
(37.5)
Dividends on common shares
(70.2)
(70.2)
Repurchase of common shares
(130.0)
(130.0)
Net settlement of equity based awards
(1.3)
(1.5)
(1.1)
1.3 
Share options exercised
5.0 
(0.2)
5.3 
(0.1)
Share-based compensation expense
16.4 
16.4 
Balance at Jan. 30, 2016
3,060.7 
15.7 
279.9 
0.4 
(495.8)
3,534.6 
(274.1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
Net income
543.2 
 
Other comprehensive loss
(33.6)
(33.6)
Dividends on common shares
(75.9)
(75.9)
Dividends on redeemable convertible preferred shares
(11.9)
 
 
 
 
(11.9)
 
Repurchase of common shares
(1,000.0)
(1,000.0)
Net settlement of equity based awards
(2.4)
(7.2)
(1.1)
5.9 
Share options exercised
2.1 
2.1 
Share-based compensation expense
8.0 
8.0 
Balance at Jan. 28, 2017
$ 2,490.2 
$ 15.7 
$ 280.7 
$ 0.4 
$ (1,494.8)
$ 3,995.9 
$ (307.7)
Organization and summary of significant accoutning policies
Organization and summary of significant accoutning policies
Organization and summary of significant accounting policies
Signet Jewelers Limited (“Signet” or the “Company”), a holding company incorporated in Bermuda, is the world’s largest retailer of diamond jewelry. The Company operates through its 100% owned subsidiaries with sales primarily in the United States (“US”), United Kingdom (“UK”) and Canada. Signet manages its business as five reportable segments: the Sterling Jewelers division, the Zale division, which consists of the Zale Jewelry and Piercing Pagoda segments, the UK Jewelry division and Other. The “Other” reportable segment consists of all non-reportable segments, including subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones and unallocated corporate administrative functions. See Note 4 for additional discussion of the Company’s segments.
Signet’s sales are seasonal, with the first quarter slightly exceeding 20% of annual sales, the second and third quarters each approximating 20% and the fourth quarter accounting for almost 40% of annual sales, with December being by far the most important month of the year. The “Holiday Season” consists of results for the months of November and December. As a result, approximately 45% to 55% of Signet’s annual operating income normally occurs in the fourth quarter, comprised of nearly all of the UK Jewelry and Zale divisions’ annual operating income and about 40% to 45% of the Sterling Jewelers division’s annual operating income.
The Company has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued. There are no material related party transactions. The following accounting policies have been applied consistently in the preparation of the Company’s financial statements.
(a) Basis of preparation
The consolidated financial statements of Signet are prepared in accordance with US generally accepted accounting principles (“US GAAP”) and include the results for the 52 week period ended January 28, 2017 (“Fiscal 2017”), as Signet’s fiscal year ends on the Saturday nearest to January 31. The comparative periods are for the 52 week period ended January 30, 2016 (“Fiscal 2016”) and the 52 week period ended January 31, 2015 (“Fiscal 2015”). Intercompany transactions and balances have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation.
(b) Use of estimates
The preparation of these consolidated financial statements, in conformity with US GAAP and US Securities and Exchange Commission (“SEC”) regulations, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Estimates and assumptions are primarily made in relation to the valuation of accounts receivable, inventories, deferred revenue, derivatives, employee benefits, income taxes, contingencies, asset impairments, indefinite-lived intangible assets, as well as depreciation and amortization of long-lived assets.
The reported results of operations are not indicative of results expected in future periods.
(c) Foreign currency translation
The financial position and operating results of certain foreign operations, including the UK Jewelry division and the Canadian operations of the Zale Jewelry segment, are consolidated using the local currency as the functional currency. Assets and liabilities are translated at the rates of exchange on the balance sheet date, and revenues and expenses are translated at the monthly average rates of exchange during the period. Resulting translation gains or losses are included in the accompanying consolidated statements of shareholders’ equity as a component of accumulated other comprehensive income (loss) (“AOCI”). Gains or losses resulting from foreign currency transactions are included within the consolidated income statements, whereas translation adjustments and gains or losses related to intercompany loans of a long-term investment nature are recognized as a component of AOCI.
See Note 8 for additional discussion of the Company’s foreign currency translation.
(d) Revenue recognition
The Company recognizes revenue when there is persuasive evidence of an arrangement, delivery of products has occurred or services have been rendered, the sale price is fixed and determinable, and collectability is reasonably assured. The Company’s revenue streams and their respective accounting treatments are discussed below.
Merchandise sale and repairs
Store sales are recognized when the customer receives and pays for the merchandise at the store with cash, in-house customer finance, private label credit card programs or a third party credit card. For online sales shipped to customers, sales are recognized at the estimated time the customer has received the merchandise. Amounts related to shipping and handling that are billed to customers are reflected in sales and the related costs are reflected in cost of sales. Revenues on the sale of merchandise are reported net of anticipated returns and sales tax collected. Returns are estimated based on previous return rates experienced. Any deposits received from a customer for merchandise are deferred and recognized as revenue when the customer receives the merchandise. Revenues derived from providing replacement merchandise on behalf of insurance organizations are recognized upon receipt of the merchandise by the customer. Revenues on repair of merchandise are recognized when the service is complete and the customer collects the merchandise at the store.
Extended service plans and lifetime warranty agreements (“ESP”)
The Company recognizes revenue related to ESP sales in proportion to when the expected costs will be incurred. The deferral period for ESP sales in each division is determined from patterns of claims costs, including estimates of future claims costs expected to be incurred. Management reviews the trends in claims to assess whether changes are required to the revenue and cost recognition rates utilized. A significant change in estimates related to the time period or pattern in which warranty-related costs are expected to be incurred could materially impact revenues. All direct costs associated with the sale of these plans are deferred and amortized in proportion to the revenue recognized and disclosed as either other current assets or other assets in the consolidated balance sheets.
The Sterling Jewelers division sells ESP, subject to certain conditions, to perform repair work over the life of the product. Revenue from the sale of the lifetime ESP is recognized consistent with the estimated pattern of claim costs expected to be incurred by the Company in connection with performing under the ESP obligations. Based on an evaluation of historical claims data, management currently estimates that substantially all claims will be incurred within 17 years of the sale of the warranty contract.
In the second quarter of Fiscal 2016, an operational change related to the Sterling Jewelers division’s ESP associated with ring sizing was made to further align Zale and Sterling ESP policies. As a result, revenue from the sale of these lifetime ESP in the Sterling Jewelers division is deferred and recognized over 17 years for all plans, with approximately 57% of revenue recognized within the first two years for plans sold on or after May 2, 2015 (January 30, 2016: 57%) and 42% of revenue recognized within the first two years for plans sold prior to May 2, 2015 (January 30, 2016: 42%; January 31, 2015: 45%).
The Zale division also sells ESP. Zale Jewelry customers are offered lifetime warranties on certain products that cover sizing and breakage with an option to purchase theft protection for a two-year period. Revenue from the sale of lifetime ESP is deferred and recognized over 10 years, with approximately 69% of revenue recognized within the first two years (January 30, 2016: 69%; January 31, 2015: 69%). Revenues related to the optional theft protection are deferred and recognized in proportion to when the expected claims costs will be incurred over the two-year contract period. Zale Jewelry customers are also offered a two-year watch warranty and a one-year warranty that covers breakage. Piercing Pagoda customers are also offered a one-year warranty that covers breakage. Revenue from the two-year watch warranty and one-year breakage warranty is recognized on a straight-line basis over the respective contract terms.
The Sterling Jewelers division also sells a Jewelry Replacement Plan (“JRP”). The JRP is designed to protect customers from damage or defects of purchased merchandise for a period of three years. If the purchased merchandise is defective or becomes damaged under normal use in that time period, the item will be replaced. JRP revenue is deferred and recognized on a straight-line basis over the period of expected claims costs.
Signet also sells warranty agreements in the capacity of an agent on behalf of a third-party. The commission that Signet receives from the third-party is recognized at the time of sale less an estimate of cancellations based on historical experience.
Sale vouchers
Certain promotional offers award sale vouchers to customers who make purchases above a certain value, which grant a fixed discount on a future purchase within a stated time frame. The Company accounts for such vouchers by allocating the fair value of the voucher between the initial purchase and the future purchase using the relative-selling-price method. Sale vouchers are not sold on a stand-alone basis. The fair value of the voucher is determined based on the average sales transactions in which the vouchers were issued, when the vouchers are expected to be redeemed and the estimated voucher redemption rate. The fair value allocated to the future purchase is recorded as deferred revenue.
Consignment inventory sales
Sales of consignment inventory are accounted for on a gross sales basis as the Company is the primary obligor providing independent advice, guidance and after-sales service to customers. The products sold from consignment inventory are indistinguishable from other products that are sold to customers and are sold on the same terms. Supplier products are selected at the discretion of the Company. The Company is responsible for determining the selling price, physical security of the products and collections of accounts receivable.
(e) Cost of sales and selling, general and administrative expenses
Cost of sales includes merchandise costs net of discounts and allowances, freight, processing and distribution costs of moving merchandise from suppliers to distribution centers and stores inclusive of payroll, inventory shrinkage, store operating and occupancy costs, net bad debts and charges for late payments under the in-house customer finance programs. Store operating and occupancy costs include utilities, rent, real estate taxes, common area maintenance charges and depreciation. Selling, general and administrative expenses include store staff and store administrative costs; centralized administrative expenses, including information technology and credit; advertising and promotional costs and other operating expenses not specifically categorized elsewhere in the consolidated income statements.
Compensation and benefits costs included within cost of sales and selling, general and administrative expenses were as follows:
(in millions)
Fiscal 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


(f) Store opening costs
The opening costs of new locations are expensed as incurred.
(g) Advertising and promotional costs
Advertising and promotional costs are expensed within selling, general and administrative expenses. Production costs are expensed at the first communication of the advertisements, while communication expenses are recognized each time the advertisement is communicated. For catalogs and circulars, costs are all expensed at the first date they can be viewed by the customer. Point of sale promotional material is expensed when first displayed in the stores. Gross advertising costs totaled $380.6 million in Fiscal 2017 (Fiscal 2016: $384.2 million; Fiscal 2015: $333.0 million).
(h) In-house customer finance programs
Sterling Jewelers division operates customer in-house finance programs that allow customers to finance merchandise purchases from its stores. Finance charges are recognized in accordance with the contractual agreements. Gross interest earned is recorded as other operating income in the consolidated income statements. See Note 10 for additional discussion of the Company’s other operating income. In addition to interest-bearing accounts, a portion of credit sales are made using interest-free financing for one year or less, subject to certain conditions.
Accrual of interest is suspended when accounts become more than 90 days aged on a recency basis. Upon suspension of the accrual of interest, interest income is subsequently recognized to the extent cash payments are received. Accrual of interest is resumed when receivables are removed from the non-accrual status.
(i) Income taxes
Income taxes are accounted for using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are recognized by applying statutory tax rates in effect in the years in which the differences between the financial reporting and tax filing bases of existing assets and liabilities are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. A valuation allowance is established against deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized, based on management’s evaluation of all available evidence, both positive and negative, including reversals of deferred tax liabilities, projected future taxable income and results of recent operations.
The Company does not recognize tax benefits related to positions taken on certain tax matters unless the position is more likely than not to be sustained upon examination by tax authorities. At any point in time, various tax years are subject to or are in the process of being audited by various taxing authorities. The Company records a reserve for uncertain tax positions, including interest and penalties. To the extent that management’s estimates of settlements change, or the final tax outcome of these matters is different than the amounts recorded, such differences will impact the income tax provision in the period in which such determinations are made.
See Note 9 for additional discussion of the Company’s income taxes.
(j) Cash and cash equivalents
Cash and cash equivalents are comprised of cash on hand, money market deposits and amounts placed with external fund managers with an original maturity of three months or less. Cash and cash equivalents are carried at cost which approximates fair value. In addition, receivables from third-party credit card issuers typically converted to cash within 5 days of the original sales transaction are considered cash equivalents.
The following table summarizes the details of the Company’s cash and cash equivalents:
(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


(k) Accounts receivable
Accounts receivable under the customer finance programs are presented net of an allowance for uncollectible amounts. This allowance represents management’s estimate of the expected losses in the accounts receivable portfolio as of the balance sheet date, and is calculated using a model that analyzes factors such as delinquency rates and recovery rates. An allowance for amounts 90 days aged and under on a recency basis is established based on historical loss experience and payment performance information. A 100% allowance is made for any amount aged more than 90 days on a recency basis and any amount associated with an account the owner of which has filed for bankruptcy.
Signet’s recency method of aging has been in place and unchanged since the inception of the in-house consumer financing program. The delinquency level is measured by the number of days since the last qualifying payment was received, with the qualifying payment increasing with delinquency level. The average minimum scheduled payment on a customer account is 8%. The minimum payment does not decline as the balance declines.
See Note 11 for additional discussion of the Company’s accounts receivables.
(l) Inventories
Inventories are primarily held for resale and are valued at the lower of cost or market value. Cost is determined using weighted-average cost for all inventories except for inventories held in the Company’s diamond sourcing operations, where cost is determined using specific identification. Cost includes charges directly related to bringing inventory to its present location and condition. Such charges would include warehousing, security, distribution and certain buying costs. Market value is defined as estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. Inventory reserves are recorded for obsolete, slow moving or defective items and shrinkage. Inventory reserves for obsolete, slow moving or defective items are calculated as the difference between the cost of inventory and its estimated market value based on targeted inventory turn rates, future demand, management strategy and market conditions. Due to the inventory being primarily comprised of precious stones and metals including gold, the age of the inventory has a limited impact on the estimated market value. Inventory reserves for shrinkage are estimated and recorded based on historical physical inventory results, expectations of future inventory losses and current inventory levels. Physical inventories are taken at least once annually for all store locations and distribution centers.
See Note 12 for additional discussion of the Company’s inventories.
(m) Vendor contributions
Contributions are received from vendors through various programs and arrangements including cooperative advertising. Where vendor contributions related to identifiable promotional events are received, contributions are matched against the costs of promotions. Vendor contributions received as general contributions and not related to specific promotional events are recognized as a reduction of inventory costs.
(n) Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation, amortization and impairment charges. Maintenance and repair costs are expensed as incurred. Depreciation and amortization are recognized on the straight-line method over the estimated useful lives of the related assets as follows:
Buildings
 
30 – 40 years when land is owned or the remaining term of lease, not to exceed 40 years
Leasehold improvements
 
Remaining term of lease, not to exceed 10 years
Furniture and fixtures
 
Ranging from 3 – 10 years
Equipment and software
 
Ranging from 3 – 5 years

Computer software purchased or developed for internal use is stated at cost less accumulated amortization. Signet’s policy provides for the capitalization of external direct costs of materials and services associated with developing or obtaining internal use computer software. In addition, Signet also capitalizes certain payroll and payroll-related costs for employees directly associated with internal use computer projects. Amortization is charged on a straight-line basis over periods from three to five years.
Property, plant and equipment are reviewed for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Potentially impaired assets or asset groups are identified by reviewing the cash flows of individual stores. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset, based on the Company’s internal business plans. If the undiscounted cash flow is less than the asset’s carrying amount, the impairment charge recognized is determined by estimating the fair value of the assets and recording a loss for the amount that the carrying value exceeds the estimated fair value. The Company utilizes historical experience, internal business plans and an appropriate discount rate to estimate the fair value. Property and equipment at stores planned for closure are depreciated over a revised estimate of their useful lives.
See Note 13 for additional discussion of the Company’s property, plant and equipment.
(o) Goodwill and intangibles
In a business combination, the Company estimates and records the fair value of identifiable intangible assets and liabilities acquired. The fair value of these intangible assets and liabilities is estimated based on management’s assessment, including determination of appropriate valuation technique and consideration of any third party appraisals, when necessary. Significant estimates in valuing intangible assets and liabilities acquired include, but are not limited to, future expected cash flows associated with the acquired asset or liability, expected life and discount rates. The excess purchase price over the estimated fair values of the assets acquired and liabilities assumed is recognized as goodwill. Goodwill is recorded by the Company’s reporting units based on the acquisitions made by each. Goodwill is evaluated for impairment annually and more frequently if indicators of impairment arise. In evaluating goodwill for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value (including goodwill). If the Company concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, then no further testing is required. However, if the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the two-step goodwill impairment test is performed to identify a potential goodwill impairment and measure the amount of impairment to be recognized, if any. The two-step impairment test involves estimating the fair value of all assets and liabilities of the reporting unit, including the implied fair value of goodwill, through either estimated discounted future cash flows or market-based methodologies.
The annual testing date for goodwill allocated to the Sterling Jewelers reporting unit is the last day of the fourth quarter. The annual testing date for goodwill allocated to the reporting units associated with the Zale division and the Other reporting unit is May 31. There have been no goodwill impairment charges recorded during the fiscal periods presented in the consolidated financial statements as financial results for the reporting units have met or exceeded financial projections developed at the time of the acquisitions. If future economic conditions are different than those projected by management, future impairment charges may be required.
Intangible assets with definite lives are amortized and reviewed for impairment whenever events or circumstances indicate that the carrying amount of the asset may not be recoverable. If the estimated undiscounted future cash flows related to the asset are less than the carrying amount, the Company recognizes an impairment charge equal to the difference between the carrying value and the estimated fair value, usually determined by the estimated discounted future cash flows of the asset.
Intangible assets with indefinite lives are reviewed for impairment each year in the second quarter and may be reviewed more frequently if certain events occur or circumstances change. The Company first performs a qualitative assessment to determine whether it is more likely than not that the indefinite-lived intangible asset is impaired. If the Company determines that it is more likely than not that the fair value of the asset is less than its carrying amount, the Company estimates the fair value, usually determined by the estimated discounted future cash flows of the asset, compares that value with its carrying amount and records an impairment charge, if any. If future economic conditions are different than those projected by management, future impairment charges may be required.
See Note 14 for additional discussion of the Company’s goodwill and intangibles.
(p) Derivatives and hedge accounting
The Company enters into various types of derivative instruments to mitigate certain risk exposures related to changes in commodity costs and foreign exchange rates. Derivative instruments are recorded in the consolidated balance sheets at fair value, as either assets or liabilities, with an offset to net income or other comprehensive income (“OCI”), depending on whether the derivative qualifies as an effective hedge.
If a derivative instrument meets certain criteria, it may be designated as a cash flow hedge on the date it is entered into. For cash flow hedge transactions, the effective portion of the changes in fair value of the derivative instrument is recognized directly in equity as a component of AOCI and is recognized in the consolidated income statements in the same period(s) and on the same financial statement line in which the hedged item affects net income. Amounts excluded from the effectiveness calculation and any ineffective portions of the change in fair value of the derivatives are recognized immediately in other operating income, net in the consolidated income statements. In addition, gains and losses on derivatives that do not qualify for hedge accounting are recognized immediately in other operating income, net.
In the normal course of business, the Company may terminate cash flow hedges prior to the occurrence of the underlying forecasted transaction. For cash flow hedges terminated prior to the occurrence of the underlying forecasted transaction, management monitors the probability of the associated forecasted cash flow transactions to assess whether any gain or loss recorded in AOCI should be immediately recognized in net income. Cash flows from derivative contracts are included in net cash provided by operating activities.
See Note 17 for additional discussion of the Company’s derivatives and hedge activities.
(q) Employee Benefits
Signet operates a defined benefit pension plan in the UK (the “UK Plan”) which ceased to admit new employees effective April 2004. The UK Plan provides benefits to participating eligible employees. Beginning in Fiscal 2014, a change to the benefit structure was implemented and members’ benefits that accumulate after that date are now based upon career average salaries, whereas previously, all benefits were based on salaries at retirement. The UK Plan’s assets are held by the UK Plan.
The net periodic pension cost of the UK Plan is measured on an actuarial basis using the projected unit credit method and several actuarial assumptions, the most significant of which are the discount rate and the expected long-term rate of return on plan assets. Other material assumptions include rates of participant mortality, the expected long-term rate of compensation and pension increases, and rates of employee attrition. Gains and losses occur when actual experience differs from actuarial assumptions. If such gains or losses exceed 10% of the greater of plan assets or plan liabilities, Signet amortizes those gains or losses over the average remaining service period of the employees. The net periodic pension cost is charged to selling, general and administrative expenses in the consolidated income statements.
The funded status of the UK Plan is recognized on the balance sheet, and is the difference between the fair value of plan assets and the projected benefit obligation measured at the balance sheet date. Gains or losses and prior service costs or credits that arise and are not included as components of net periodic pension cost are recognized, net of tax, in OCI.
Signet also operates a defined contribution plan in the UK and a defined contribution retirement savings plan in the US. Contributions made by Signet to these pension arrangements are charged primarily to selling, general and administrative expenses in the consolidated income statements as incurred.
See Note 19 for additional discussion of the Company’s employee benefits.
(r) Borrowing costs
Borrowings include interest-bearing bank loans, accounts receivable securitization program and bank overdrafts. Borrowing costs are capitalized and amortized into interest expense over the contractual term of the related loan.
See Note 20 for additional discussion of the Company’s borrowing costs.
(s) Share-based compensation
Signet measures share-based compensation cost for awards classified as equity at the grant date based on the estimated fair value of the award and recognizes the cost as an expense on a straight-line basis (net of estimated forfeitures) over the requisite service period of employees. Certain share plans include a condition whereby vesting is contingent on growth exceeding a given target, and therefore awards granted with this condition are considered to be performance-based awards.
Signet estimates fair value using a Black-Scholes model for awards granted under the Omnibus Plan and the binomial valuation model for awards granted under the Share Saving Plans. Deferred tax assets for awards that result in deductions on the income tax returns of subsidiaries are recorded by Signet based on the amount of compensation cost recognized and the subsidiaries’ statutory tax rate in the jurisdiction in which it will receive a deduction. Differences between the deferred tax assets recognized for financial reporting purposes and the actual tax deduction reported on the subsidiaries’ income tax return are recorded in additional paid-in-capital (if the tax deduction exceeds the deferred tax asset) or in the income statement (if the deferred tax asset exceeds the tax deduction and no additional paid-in-capital exists from previous awards).
Share-based compensation is primarily recorded in selling, general and administrative expenses in the consolidated income statements, along with the relevant salary cost.
See Note 24 for additional discussion of the Company’s share-based compensation plans.
(t) Contingent liabilities
Provisions for contingent liabilities are recorded for probable losses when management is able to reasonably estimate the loss or range of loss. When it is reasonably possible that a contingent liability may result in a loss or additional loss, the range of the loss is disclosed.
See Note 25 for additional discussion of the Company’s contingencies.
(u) Leases
Signet’s operating leases generally include retail store locations. Certain operating leases include predetermined rent increases, which are charged to the income statement on a straight-line basis over the lease term, including any construction period or other rental holiday. Other amounts paid under operating leases, such as contingent rentals, taxes and common area maintenance, are charged to the income statement as incurred. Premiums paid to acquire short-term leasehold properties and inducements to enter into a lease are recognized on a straight-line basis over the lease term. In addition, certain leases provide for contingent rentals that are not measurable at inception. These contingent rentals are primarily based on a percentage of sales in excess of a predetermined level. These amounts are excluded from minimum rent and are included in the determination of rent expense when it is probable that the expense has been incurred and the amount is reasonably estimable.
See Note 25 for additional discussion of the Company’s leases.
(v) Common shares
New shares are recorded in common shares at their par value when issued. The excess of the issue price over the par value is recorded in additional paid-in capital.

(w) Preferred shares
On October 5, 2016, the Company issued 625,000 shares of Series A Convertible Preference Shares (“preferred shares”) for an aggregate price of $625.0 million. The preferred shares were issued under an effective registration statement filed with the SEC. The accounting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 480, “Distinguishing Liabilities from Equity,” requires preferred securities that are redeemable for cash or other assets to be classified outside of permanent equity if redeemable at a fixed or determinable price on a fixed or determinable date, at the option of the holder, or upon the occurrence of an event that is not solely within the control of the issuer. The Company's preferred shares were classified as temporary equity and recorded in the consolidated balance sheet at fair value upon issuance.
See Note 5 for additional information regarding the Company's preferred shares.
(x) Dividends
Dividends on common shares are reflected as a reduction of retained earnings in the period in which they are formally declared by the Board of Directors (the “Board”). In addition, the cumulative dividends on preferred shares, whether or not declared, are reflected as a reduction of retained earnings.
New Accounting Pronouncements
New accounting pronouncements
New accounting pronouncements
New accounting pronouncements adopted during the period
Share-based compensation
In June 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-12, “Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” The new guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. ASU No. 2014-12 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015, with early adoption permitted. Signet adopted this guidance during Fiscal 2017. The adoption of this guidance did not have a material impact on the Company’s financial position or results of operations.
Debt issuance costs
In April 2015, the FASB issued ASU No. 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” The new guidance requires that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the debt liability, similar to the presentation of debt discounts. In August 2015, the FASB issued ASU No. 2015-15, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” The new guidance provides clarity that the SEC would not object to the deferral and presentation of debt issuance costs related to line-of-credit arrangements as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement. ASU Nos. 2015-03 and 2015-15 are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015, with early adoption permitted. Signet adopted this guidance during Fiscal 2017. Accordingly, the Company adjusted the consolidated balance sheet as of January 30, 2016 by reducing total assets and debt for amounts classified as deferred debt issuance costs of $9.5 million. Signet continues to present debt issuance costs relating to its revolving credit facility and asset-backed securitization facility as other assets in the consolidated balance sheets.
See Note 20 for additional discussion of the Company's debt issuance costs.
New accounting pronouncements to be adopted in future periods
Credit losses
In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The new guidance requires entities to measure and recognize expected credit losses for financial assets measured at amortized cost basis. The estimate of expected credit losses should consider historical information, current information, and reasonable and supportable forecasts of expected losses over the remaining contractual life that affect collectibility. ASU No. 2016-13 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019, with early adoption permitted. Signet currently expects to adopt this guidance when effective, and continues to assess the impact the adoption of this guidance will have on the Company’s financial position or results of operations.
Revenue recognition
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The new guidance affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU No. 2014-09 provides alternative methods of retrospective adoption. In August 2015, the FASB issued an update (ASU No. 2015-14) that defers the effective date by one year. As a result, ASU No. 2014-09 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted for annual periods beginning after December 15, 2016, including interim periods within that annual period.
There are many aspects of this new accounting guidance that are still being interpreted. The FASB has recently issued updates to certain aspects of the guidance to address implementation issues. In March 2016, the FASB issued additional guidance concerning “Principal versus Agent” considerations (reporting revenue gross versus net); in April 2016, the FASB issued additional guidance on identifying performance obligations and licensing; and in May 2016, the FASB issued additional guidance on collectibility, noncash consideration, presentation of sales tax, and transition. These updates are intended to improve the operability and understandability of the implementation guidance and have the same effective date and transition requirements as ASU No. 2014-09 guidance discussed above. 
Signet is in the process of evaluating contracts with customers under the new guidance and cannot currently estimate the financial statement impact of adoption. The Company expects to progress through its assessment during Fiscal 2018 and will adopt this guidance in the first quarter of our fiscal year ending February 2, 2019. A decision has not yet been made regarding the transition method the Company will use to adopt the new guidance.
Inventory
In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory.” The new guidance states that inventory will be measured at the lower of cost and net realizable value. The ASU defines net realizable value as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. ASU No. 2015-11 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. Signet plans to adopt this guidance in the first quarter of Fiscal 2018. Signet does not expect the adoption of this guidance to have a material impact on the Company’s financial position or results of operations.
Financial instruments
In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The new guidance primarily impacts accounting for equity investments and financial liabilities under the fair value option, as well as, the presentation and disclosure requirements for financial instruments. Under the new guidance, equity investments will generally be measured at fair value, with subsequent changes in fair value recognized in net income. ASU No. 2016-01 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Signet plans to adopt this guidance in the first quarter of our fiscal year ending February 2, 2019. Signet does not expect the adoption of this guidance to have a material impact on the Company’s financial position or results of operations.
Leases
In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” The new guidance primarily impacts lessee accounting by requiring the recognition of a right-of-use asset and a corresponding lease liability on the balance sheet for long-term lease agreements. The lease liability will be equal to the present value of all reasonably certain lease payments. The right-of-use asset will be based on the liability, subject to adjustment for initial direct costs. Lease agreements that are 12 months or less are permitted to be excluded from the balance sheet. In general, leases will be amortized on a straight-line basis with the exception of finance lease agreements. ASU No. 2016-02 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. Signet is currently assessing the timing of adoption which is effective for the first quarter of our fiscal year ending February 1, 2020 and the impact that adopting this guidance will have on the Company’s financial position or results of operations.
Liabilities
In March 2016, the FASB issued ASU No. 2016-04, “Liabilities - Extinguishments of Liabilities (Subtopic 405-20).” The new guidance addresses diversity in practice related to the derecognition of a prepaid stored-value product liability. Liabilities related to the sale of prepaid stored-value products within the scope of this update are financial liabilities. ASU No. 2016-04 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. Signet plans to adopt this guidance in the first quarter of our fiscal year ending February 2, 2019. Signet does not expect the adoption of this guidance to have a material impact on the Company’s financial position or results of operations.
Share-based compensation
In March 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” The new guidance simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU No. 2016-09 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. This guidance is effective for Signet in the first quarter of Fiscal 2018. Signet does not expect the adoption of this guidance to have a material impact on the Company’s financial position or results of operations.
Acquisitions
Acquisitions
Acquisitions
Zale Corporation
On May 29, 2014, the Company acquired 100% of the outstanding shares of Zale Corporation, making the entity a wholly-owned consolidated subsidiary of Signet (the “Zale Acquisition” or “Acquisition”). Under the terms of the Agreement and Plan of Merger, Zale Corporation shareholders received $21 per share in cash for each outstanding share of common stock and the vesting, upon consummation of the Acquisition, of certain outstanding Zale Corporation restricted stock units and stock options, which converted into the right to receive the merger consideration of $1,458.0 million, including $478.2 million to extinguish Zale Corporation’s existing debt. The Acquisition was funded by the Company through existing cash and the issuance of $1,400.0 million of long-term debt, including: (a) $400.0 million of senior unsecured notes due in 2024, (b) $600.0 million of two-year revolving asset-backed variable funding notes, and (c) a $400.0 million five-year senior unsecured term loan facility. See Note 20 for additional information related to the Company’s long-term debt instruments.
The transaction was accounted for as a business combination during the second quarter of Fiscal 2015. The Acquisition aligns with the Company’s strategy to expand its footprint. The following table summarizes the consideration transferred in conjunction with the Acquisition as of May 29, 2014:
(in millions, except per share amounts)
Amount
Cash consideration paid to Zale Corporation shareholders ($21 per share)
$
910.2

Cash consideration paid for settlement of Zale Corporation stock options, restricted share awards and long term incentive plan awards
69.6

Cash paid to extinguish Zale Corporation outstanding debt as of May 29, 2014
478.2

Total consideration transferred
$
1,458.0

Under the acquisition method of accounting, the identifiable assets acquired and liabilities assumed are recorded at acquisition date fair values. During the fourth quarter of Fiscal 2015, the Company finalized the valuation of net assets acquired. The following table summarizes the fair values identified for the assets acquired and liabilities assumed in the Acquisition as of May 29, 2014:
(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


(1) Includes loans and overdrafts, accounts payable, income taxes payable, accrued expenses and other current liabilities.
The excess of the purchase price over the fair value of identifiable assets acquired and liabilities assumed was recognized as goodwill. The goodwill attributable to the Acquisition is not deductible for tax purposes. See Note 14 for additional discussion of the Company’s goodwill.
The following unaudited consolidated pro forma information summarizes the results of operations of the Company as if the Acquisition and related issuance of $1,400.0 million of long-term debt (see Note 20) had occurred as of February 2, 2013. The unaudited consolidated pro forma financial information was prepared in accordance with the acquisition method of accounting under existing standards and is not necessarily indicative of the results of operations that would have occurred if the Acquisition had been completed on the date indicated, nor is it indicative of the future operating results of the Company.
(in millions, except per share amounts)
Fiscal 2015
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


The unaudited pro forma information gives effect to actual operating results prior to the Acquisition and has been adjusted with respect to certain aspects of the Acquisition to reflect the following:
Acquisition accounting adjustments to reset deferred revenue associated with extended service plans sold by Zale Corporation prior to the Acquisition to fair value as of the acquisition date. The fair value of deferred revenue is determined based on the estimated costs remaining to be incurred for future obligations associated with the outstanding plans at the time of the Acquisition, plus a reasonable profit margin on the estimated costs. These adjustments also reflect the impact of deferring the revenue associated with the lifetime extended service plans over a 10-year period as disclosed in Note 1.
Additional depreciation and amortization expenses that would have been recognized assuming fair value adjustments to the existing Zale Corporation assets acquired and liabilities assumed, including intangible assets, favorable and unfavorable leases, and unfavorable contracts and expense associated with the fair value step-up of inventory acquired.
Tax impact of the Company’s amended capital structure as a result of the Acquisition and related issuance of $1,400.0 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.
The unaudited pro forma results do not reflect future events that either have occurred or may occur after the Acquisition, including, but not limited to, the anticipated realization of expected operating synergies in subsequent periods. They also do not give effect to acquisition-related costs that the Company expects to incur in connection with the Acquisition, including, but not limited to, additional professional fees, employee integration, retention and severance costs.
Segment Information
Segment information
Segment information
Financial information for each of Signet’s reportable segments is presented in the tables below. Signet’s chief operating decision maker utilizes sales and operating income, after the elimination of any inter-segment transactions, to determine resource allocations and performance assessment measures. Signet’s sales are derived from the retailing of jewelry, watches, other products and services as generated through the management of its five reportable segments: the Sterling Jewelers division, the Zale division, which consists of the Zale Jewelry and Piercing Pagoda segments, the UK Jewelry division and Other.
The Sterling Jewelers division operates in all 50 US states. Its stores operate nationally in malls and off-mall locations principally as Kay Jewelers (“Kay”), Kay Jewelers Outlet, Jared The Galleria Of Jewelry (“Jared”) and Jared Vault. The division also operates a variety of mall-based regional brands.
The Zale division operates jewelry stores (Zale Jewelry) and kiosks (Piercing Pagoda), located primarily in shopping malls throughout the US, Canada and Puerto Rico. Zale Jewelry includes the US store brand Zales (Zales Jewelers and Zales Outlet), which operates in all 50 US states, and the Canadian store brand Peoples Jewellers, which operates in nine provinces. The division also operates regional brands Gordon’s Jewelers and Mappins. Piercing Pagoda operates through mall-based kiosks.
The UK Jewelry division operates stores in the UK, Republic of Ireland and Channel Islands. Its stores operate in shopping malls and off-mall locations (i.e. high street) principally as H.Samuel and Ernest Jones.
The Other reportable segment consists of all non-reportable segments, including subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones, that are below the quantifiable threshold for separate disclosure as a reportable segment and unallocated corporate administrative functions.
(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

(1)    Includes sales of $234.6 million, $248.7 million and $205.5 million generated by Canadian operations in Fiscal 2017, Fiscal 2016 and Fiscal 2015, respectively.
(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

Redeemable Preferred Shares
Redeemable Preferred Shares
Redeemable preferred shares
On October 5, 2016, the Company issued 625,000 preferred shares to Green Equity Investors VI, L.P., Green Equity Investors Side VI, L.P., LGP Associates VI-A LLC and LGP Associates VI-B LLC, all affiliates of Leonard Green & Partners, L.P., (together, the “Investors”) for an aggregate purchase price of $625.0 million, or $1,000 per share (the “Stated Value”) pursuant to the investment agreement dated August 24, 2016. In connection with the issuance of the preferred shares, the Company incurred direct and incremental expenses of $13.7 million, including financial advisory fees, closing costs, legal expenses and other offering-related expenses. These direct and incremental expenses originally reduced the preferred shares carrying value, and are accreted through retained earnings as a deemed dividend from the date of issuance through the first possible known redemption date, November 2024. Accretion relating to these fees of $0.6 million was recorded in the consolidated balance sheet as of January 28, 2017.
Dividend rights: The preferred shares rank senior to the Company’s common shares, with respect to dividend rights and rights on the distribution of assets on any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Company. The liquidation preference for preferred shares is equal to the greater of (a) the Stated Value per share, plus all accrued but unpaid dividends and (b) the consideration holders would have received if preferred shares were converted into common shares immediately prior to the liquidation. As of January 28, 2017, the liquidation preference was $636.3 million. Preferred shareholders are entitled to a cumulative dividend at the rate of 5% per annum, payable quarterly in arrears, commencing on February 15, 2017, either in cash or by increasing the Stated Value at the option of the Company. In addition, preferred shareholders were entitled to receive dividends or distributions declared or paid on common shares on an as-converted basis, other than the Company’s regularly declared quarterly cash dividends not in excess of 130% of the arithmetic average of the regular, quarterly cash dividends per common share, if any, declared by the Company during the preceding four calendar quarters.
On November 2, 2016, the Board of Directors approved certain changes to the rights of the preferred shareholders, including the following: (a) elimination of the right of preferred shareholders to receive dividends or other distributions declared on the Company’s common shares and inclusion of adjustments to the conversion rate in the event of any dividend, distribution, spin-off or certain other events or transactions in respect of the common shares; and (b) addition of a requirement for approval by the holders of the majority of the issued preferred shares for the declaration or payment by the Company of any dividends or other distributions on the common shares other than (i) regularly declared quarterly cash dividends paid on the issued common shares in any calendar quarter in an amount per share that is not more than 130% of the arithmetic average of the regular, quarterly cash dividends per common share, if any, declared by the Company during the preceding four calendar quarters for such quarter and (ii) any dividends or other distributions which are paid or distributed at the same time on the common shares and the preferred shares, provided that the amount paid or distributed to the preferred shares is based on the number of common shares into which such preferred shares could be converted on the applicable record date for such dividends or other distributions.
Conversion features: Preferred shares are convertible at the option of the holders at any time into common shares at the then applicable conversion rate. The conversion rate of 10.6529 common shares per preferred share was established as the Stated Value divided by the defined conversion price of $93.8712. As of January 28, 2017, the maximum number of common shares that could be required to be issued if converted was 6.7 million shares. The conversion rate is subject to certain anti-dilution and other adjustments, including stock split / reverse stock split transactions, regular dividends declared on common shares, share repurchases (excluding amounts through open market transactions or accelerated share repurchases) and issuances of common shares or other securities convertible into common shares. The initial issuance did not include a beneficial conversion feature as the conversion price used to set the conversion ratio at the time of issuance was greater than the Company’s common stock price.
At any time on or after October 5, 2018, all or a portion of outstanding preferred shares are convertible at the option of the Company if the closing price of common shares exceeds 175% of the then applicable conversion price for at least 20 consecutive trading days.
Redemption rights: At any time after November 15, 2024, the Company will have the right to redeem any or all, and the holders of the preferred shares will have the right to require the Company to repurchase any or all, of the preferred shares for cash at a price equal to the Stated Value plus all accrued but unpaid dividends. Upon certain change of control or delisting events involving the Company, preferred shareholders can require the Company to repurchase, subject to certain exceptions, all or any portion of its preferred shares at (a) an amount in cash equal to 101% of the Stated Value plus all accrued but unpaid dividends or (b) the consideration the holders would have received if they had converted their preferred shares into common shares immediately prior to the change of control event.
Voting rights: Preferred shareholders are entitled to vote with the holders of common shares on an as-converted basis. Holders of preferred shares are entitled to a separate class vote with respect to certain designee(s) for election to the Company’s Board of Directors, amendments to the Company’s organizational documents that have an adverse effect on the preferred shareholders and issuances by the Company of securities that are senior to, or equal in priority with, the preferred shares.
Registration rights:  Preferred shareholders have certain customary registration rights with respect to the preferred shares and the shares of common shares into which they are converted, pursuant to the terms of a registration rights agreement.
Common Shares, Treasury Shares, Reserves and Dividends
Common Shares, Treasury Shares, Reserves and Dividends
Common shares, treasury shares, reserves and dividends
Common shares
The par value of each Common Share is 18 cents. The consideration received for common shares relating to options issued during Fiscal 2017 was $2.1 million (Fiscal 2016: $5.0 million; Fiscal 2015: $6.1 million).
Treasury shares
Signet may from time to time repurchase common shares under various share repurchase programs authorized by Signet’s Board. Repurchases may be made in the open market, through block trades, accelerated share repurchase agreements or otherwise. The timing, manner, price and amount of any repurchases will be determined by the Company at its discretion, and will be subject to economic and market conditions, stock prices, applicable legal requirements and other factors. The repurchase programs are funded through Signet’s existing cash reserves and liquidity sources. Repurchased shares are held as treasury shares and may be used by Signet for general corporate purposes.
Treasury shares represent the cost of shares that the Company purchased in the market under the applicable authorized repurchase program, shares forfeited under the Omnibus Incentive Plan and those previously held by the Employee Stock Ownership Trust (“ESOT”) to satisfy options under the Company’s share option plans.
In February 2016, the Board authorized the repurchase of Signet’s common shares up to $750.0 million (the “2016 Program”). In August 2016, the Board increased its authorized share repurchase program by $625.0 million, bringing the total authorization for the 2016 Program to $1,375.0 million. The 2016 Program may be suspended or discontinued at any time without notice.
On October 5, 2016, the Company entered into an accelerated share repurchase agreement (“ASR”) with a large financial institution to repurchase $525.0 million of the Company’s common shares. At inception, the Company paid $525.0 million to the financial institution and took delivery of 4.7 million shares with an initial estimated cost of $367.5 million. In December 2016, the ASR was finalized and the Company received an additional 1.3 million shares. Total shares repurchased under the ASR were 6.0 million shares at an average purchase price of $87.01 per share based on the volume-weighted average price of the Company’s common shares traded during the pricing period, less an agreed discount.
The Company reflected shares delivered as treasury shares as of the date the shares were physically delivered in computing the weighted average common shares outstanding for both basic and diluted earnings per share. The ASR was accounted for as a treasury stock transaction and a forward stock purchase contract. The forward stock purchase contract was determined to be indexed to the Company’s own stock and met all of the applicable criteria for equity classification.
During Fiscal 2017, the Company also repurchased 5.2 million common shares through open market transactions for a total cost of $475.0 million. The share repurchase activity is outlined in the table below:
 
 
 
Fiscal 2017
 
Fiscal 2016
 
Fiscal 2015
(in millions, expect per share amounts)
Amount
authorized
 
Shares
repurchased
 
Amount
repurchased
 
Average
repurchase
price per
share
 
Shares
repurchased
 
Amount
repurchased
 
Average
repurchase
price per
share
 
Shares
repurchased
 
Amount
repurchased
 
Average
repurchase
price per
share
2016 Program(1)
$
1,375.0

 
10.0

 
$
864.4

 
$
86.40

 
n/a

 
n/a

 
n/a

 
n/a

 
n/a

 
n/a

2013 Program(2)
$
350.0

 
1.2

 
$
135.6

 
$
111.26

 
1.0

 
$
130.0

 
$
127.63

 
0.3

 
$
29.8

 
$
103.37

Total
 
 
11.2

 
$
1,000.0

 
$
89.10

 
1.0

 
$
130.0

 
$
127.63

 
0.3

 
$
29.8

 
$
103.37

(1) 
The 2016 Program had $510.6 million remaining as of January 28, 2017.
(2) 
The 2013 Program was completed in May 2016.
n/a
Not applicable.
Shares held in treasury by the Company as of January 28, 2017 and January 30, 2016 were 18.9 million and 7.8 million, respectively. Shares were reissued in the amounts of 0.1 million and 0.2 million, net of taxes and forfeitures, in Fiscal 2017 and Fiscal 2016, respectively, to satisfy awards outstanding under existing share-based compensation plans.
Dividends on common shares
 
Fiscal 2017
 
Fiscal 2016
 
Fiscal 2015
(in millions, except per share amounts)
Cash dividend
per share
 
Total
dividends
 
Cash dividend
per share
 
Total
dividends
 
Cash dividend
per share
 
Total
dividends
First quarter
$
0.26

 
$
20.4

 
$
0.22

 
$
17.6

 
$
0.18

 
$
14.4

Second quarter
0.26

 
19.7

 
0.22

 
17.6

 
0.18

 
14.4

Third quarter
0.26

 
18.1

 
0.22

 
17.5

 
0.18

 
14.5

Fourth quarter
0.26

 
17.7

(1) 
0.22

 
17.5

(1) 
0.18

 
14.4

Total
$
1.04

 
$
75.9

 
$
0.88

 
$
70.2

 
$
0.72

 
$
57.7

(1) 
Signet’s dividend policy results in the dividend payment date being a quarter in arrears from the declaration date. As a result, as of January 28, 2017 and January 30, 2016, $17.7 million and $17.5 million, respectively, has been recorded in accrued expenses and other current liabilities in the consolidated balance sheets reflecting the cash dividends declared for the fourth quarter of Fiscal 2017 and Fiscal 2016, respectively.
In addition, on March 9, 2017, Signet’s Board declared a quarterly dividend of $0.31 per share on its common shares. This dividend will be payable on May 31, 2017 to shareholders of record on April 28, 2017, with an ex-dividend date of April 26, 2017.
Dividends on preferred shares
As of January 28, 2017, dividends on preferred shares totaling $11.3 million were declared and accrued for by the Company. As disclosed in the consolidated income statements, there were no cumulative undeclared dividends on the preferred shares that reduced net income attributable to common shareholders. In addition, a $0.6 million deemed dividend related to accretion of issuance costs associated with the preferred shares was recognized in Fiscal 2017.
These direct and incremental expenses originally reduced the preferred shares carrying value, and are accreted through retained earnings as a deemed dividend from the date of issuance through the first possible known redemption date, November 2024. Accretion relating to these fees of $0.6 million was recorded in the consolidated balance sheet as of January 28, 2017.
Other
As of January 28, 2017, the principal trading market for the Company’s common shares is the New York Stock Exchange (symbol: SIG). The Company also maintained a standard listing of its common shares on the London Stock Exchange (“LSE”) (symbol: SIG) during Fiscal 2016. On February 16, 2016, the Company filed a voluntary application with the United Kingdom’s Financial Conduct Authority to delist its common shares from the LSE. Common shares of the Company continued to trade on the LSE until close of business on March 15, 2016.
Earnings Per Common Share
Earnings per common share
Earnings per common share (“EPS”)
Basic EPS is computed by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding for the period. The computation of basic EPS is outlined in the table below:
(in millions, except per share amounts)
Fiscal 2017
 
Fiscal 2016
 
Fiscal 2015
Numerator:
 
 
 
 
 
Net income attributable to common shareholders
$
531.3

 
$
467.9

 
$
381.3

Denominator:
 
 
 
 
 
Weighted average common shares outstanding
74.5

 
79.5

 
79.9

EPS – basic
$
7.13

 
$
5.89

 
$
4.77


The dilutive effect of share awards represents the potential impact of outstanding awards issued under the Company’s share-based compensation plans, including restricted shares and restricted stock units issued under the Omnibus Plan and stock options issued under the Share Saving Plans and Executive Plans. The dilutive effect of preferred shares represents the potential impact for common shares that would be issued upon conversion. Potential common share dilution related to share awards and preferred shares is determined using the treasury stock and if-converted methods, respectively. Under the if-converted method, the preferred shares are assumed to be converted at the beginning of the period, and the resulting common shares are included in the denominator of the diluted EPS calculation for the entire period being presented. Additionally, cumulative dividends and accretion for issuance costs associated with the preferred shares are added back to net income attributable to common shareholders. See Note 5 for additional discussion of the Company’s preferred shares. The computation of diluted EPS is outlined in the table below:
(in millions, except per share amounts)
Fiscal 2017
 
Fiscal 2016
 
Fiscal 2015
Numerator:
 
 
 
 
 
Net income attributable to common shareholders
$
531.3

 
$
467.9

 
$
381.3

Add: Dividends on preferred shares
11.9

 

 

Numerator for diluted EPS
$
543.2

 
$
467.9

 
$
381.3

 
 
 
 
 
 
Denominator:
 
 
 
 
 
Weighted average common shares outstanding
74.5

 
79.5

 
79.9

Plus: Dilutive effect of share awards
0.1

 
0.2

 
0.3

Plus: Dilutive effect of preferred shares
2.1

 

 

Diluted weighted average common shares outstanding
76.7

 
79.7

 
80.2

 
 
 
 
 
 
EPS – diluted
$
7.08

 
$
5.87

 
$
4.75


The calculation of diluted EPS excludes the following share awards on the basis that their effect would be anti-dilutive.
(in millions)
Fiscal 2017
 
Fiscal 2016
 
Fiscal 2015
Share awards
0.1

 
0.1
 

Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss)
Accumulated other comprehensive income (loss)
The following tables present the changes in AOCI by component and the reclassifications out of AOCI, net of tax:
 
 
 
 
 
 
 
Pension plan
 
 
(in millions)
Foreign
currency
translation
 
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
)

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


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

In Fiscal 2017, Signet’s effective tax rate was lower than the US federal income tax rate primarily due to the impact of Signet’s global reinsurance and financing arrangements utilized to fund the acquisition of Zale. Signet’s future effective tax rate is dependent on changes in the geographic mix of income.
Deferred taxes
Deferred tax assets (liabilities) consisted of the following:
 
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
)

As of January 28, 2017, Signet had deferred tax assets associated with net operating loss carry forwards of $43.8 million, which are subject to ownership change limitations rules under Section 382 of the Internal Revenue Code (“IRC”) and various US state regulations, and expire between 2017 and 2033. Deferred tax assets associated with foreign tax credits also subject to Section 382 of the IRC total $13.7 million as of January 28, 2017, which expire between 2017 and 2024 and foreign net operating loss carryforwards of $11.7 million, which expire between 2018 and 2037. Additionally, Signet had foreign capital loss carry forward deferred tax assets of $11.3 million (Fiscal 2016: $13.4 million), which are only available to offset future capital gains, if any, over an indefinite period.
The decrease in the total valuation allowance in Fiscal 2017 was $0.4 million (Fiscal 2016: $0.5 million net decrease; Fiscal 2015: $7.5 million net increase). The valuation allowance primarily relates to foreign capital and trading loss carry forwards, foreign tax credits and net operating losses that, in the judgment of management, are not more likely than not to be realized.
Signet believes that it is more likely than not that deferred tax assets not subject to a valuation allowance as of January 28, 2017 will be offset where permissible by deferred tax liabilities or realized on future tax returns, primarily from the generation of future taxable income.

Uncertain tax positions
The following table summarizes the activity related to the Company’s unrecognized tax benefits for US federal, US state and non-US tax jurisdictions:
(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


As of January 28, 2017, Signet had approximately $12.0 million of unrecognized tax benefits in respect to uncertain tax positions. The unrecognized tax benefits relate primarily to financing arrangements and intra-group charges which are subject to different and changing interpretations of tax law. If all of these unrecognized tax benefits were settled in Signet’s favor, the effective income tax rate would be favorably impacted by $11.6 million.
Signet recognizes accrued interest and, where appropriate, penalties related to unrecognized tax benefits within income tax expense. As of January 28, 2017, Signet had accrued interest of $3.1 million and $0.7 million of accrued penalties.
Over the next twelve months management believes that it is reasonably possible that there could be a reduction of some or all of the unrecognized tax benefits as of January 28, 2017 due to settlement of the uncertain tax positions with the tax authorities.
Signet has business activity in all states within the US and files income tax returns for the US federal jurisdiction and all applicable states. Signet also files income tax returns in the UK, Canada and certain other foreign jurisdictions. Signet is subject to examinations by the US federal and state and Canadian tax authorities for tax years ending after November 1, 2011 and is subject to examination by the UK tax authority for tax years ending after February 1, 2014.
Other Operating Income, Net
Other operating income, net
Other operating income, net
(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

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


Signet grants credit to customers based on a variety of credit quality indicators, including consumer financial information and prior payment experience. On an ongoing basis, management monitors the credit exposure based on past due status and collection experience, as it has found a meaningful correlation between the past due status of customers and the risk of loss.
During the third quarter of Fiscal 2016, Signet implemented a program to provide in-house credit to customers in the Zale division’s US locations (“second look”). The allowance for credit losses associated with Zale customer in-house finance receivables was immaterial as of January 28, 2017 and January 30, 2016.
Other accounts receivable is comprised primarily of accounts receivable relating to the insurance loss replacement business in the UK Jewelry division of $11.0 million (Fiscal 2016: $13.6 million).
Sterling Jewelers customer in-house finance receivables
The allowance for credit losses on Sterling Jewelers customer in-house finance receivables is shown below:
(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

 
 
 
 
 
 

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

Securitized credit card receivables
The Sterling Jewelers division securitizes its credit card receivables through its Sterling Jewelers Receivables Master Note Trust. See Note 20 for additional information regarding this asset-backed securitization facility.
Inventories
Inventories
Inventories
Signet held $574.0 million of consignment inventory at January 28, 2017 (January 30, 2016: $441.9 million), which is not recorded on the balance sheet. The principal terms of the consignment agreements, which can generally be terminated by either party, are such that Signet can return any or all of the inventory to the relevant suppliers without financial or commercial penalties and the supplier can adjust the inventory prices prior to sale.
The following table summarizes the details of the Company’s inventory:
(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


Inventory reserves
(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

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


Depreciation and amortization expense for Fiscal 2017 was $175.0 million (Fiscal 2016: $161.4 million; Fiscal 2015: $140.1 million). The expense for Fiscal 2017 includes $1.3 million (Fiscal 2016: $0.7 million; Fiscal 2015: $0.8 million) for the impairment of assets.
Goodwill and Intangibles
Goodwill and intangibles
Goodwill and intangibles
Goodwill
The following table summarizes the Company’s goodwill by reportable segment:
(in millions)
Sterling
Jewelers
 
Zale
Jewelry
 
Piercing
Pagoda
 
UK Jewelry
 
Other
 
Total
Balance at 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


There have been no goodwill impairment losses recognized during Fiscal 2017 and Fiscal 2016. If future economic conditions are different than those projected by management, future impairment charges may be required.
Intangibles
Intangible assets with indefinite and definite lives represent Zale trade names and favorable leases acquired, while intangible liabilities with definite lives represent unfavorable leases and contract rights acquired in the Zale Acquisition. See Note 3 for additional information. No other intangible assets or liabilities were recognized prior to the acquisition of Zale Corporation on May 29, 2014. As of January 28, 2017, the remaining weighted-average amortization period for acquired definite-lived intangible assets and liabilities was 1.4 years and 4.8 years, respectively. The following table provides additional detail regarding the composition of intangible assets and liabilities:

 
 
 
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
)

Amortization expense relating to intangible assets was $13.8 million in Fiscal 2017 (Fiscal 2016: $13.9 million; Fiscal 2015: $9.6 million). Expected future amortization expense for intangible assets recorded at January 28, 2017 follows:
(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


The unfavorable leases and unfavorable contracts are classified as liabilities and recognized over the term of the underlying lease or contract. Amortization relating to intangible liabilities was $19.7 million in Fiscal 2017 (Fiscal 2016: $28.7 million; Fiscal 2015: $23.7 million). Expected future amortization for intangible liabilities recorded at January 28, 2017 follows:
(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
)
Other Assets
Other assets
Other assets
(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.
In addition, other current assets include deferred direct selling costs in relation to the sale of ESP of $29.4 million as of January 28, 2017 (January 30, 2016: $26.4 million).
Investments
Investments
Investments
Investments in debt and equity securities are held by certain insurance subsidiaries and are reported at fair value as other assets in the accompanying consolidated balance sheets. All investments are classified as available-for-sale and include the following:
 
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


Realized gains and losses on investments are determined on the specific identification basis. There were no material net realized gains or losses during Fiscal 2017 and Fiscal 2016. Investments with a carrying value of $6.6 million and $7.1 million were on deposit with various state insurance departments at January 28, 2017 and January 30, 2016, respectively, as required by law.
Investments in debt securities outstanding as of January 28, 2017 mature as follows:
(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

Derivatives
Derivatives
Derivatives
Derivative transactions are used by Signet for risk management purposes to address risks inherent in Signet’s business operations and sources of financing. The main risks arising from Signet’s operations are market risk including foreign currency risk, commodity risk, liquidity risk and interest rate risk. Signet uses derivative financial instruments to manage and mitigate certain of these risks under policies reviewed and approved by the Board of Directors. Signet does not enter into derivative transactions for speculative purposes.
Market risk
Signet generates revenues and incurs expenses in US dollars, Canadian dollars and British pounds. As a portion of UK Jewelry purchases and purchases made by the Canadian operations of the Zale division are denominated in US dollars, Signet enters into forward foreign currency exchange contracts, foreign currency option contracts and foreign currency swaps to manage this exposure to the US dollar.
Signet holds a fluctuating amount of British pounds and Canadian dollars reflecting the cash generative characteristics of operations. Signet’s objective is to minimize net foreign exchange exposure to the income statement on non-US dollar denominated items through managing cash levels, non-US dollar denominated intra-entity balances and foreign currency swaps. In order to manage the foreign exchange exposure and minimize the level of funds denominated in British pounds and Canadian dollars, dividends are paid regularly by subsidiaries to their immediate holding companies and excess British pounds and Canadian dollars are sold in exchange for US dollars.
Signet’s policy is to minimize the impact of precious metal commodity price volatility on operating results through the use of outright forward purchases of, or by entering into options to purchase, precious metals within treasury guidelines approved by the Board of Directors. In particular, Signet undertakes some hedging of its requirements for gold through the use of options, net zero-cost collar arrangements (a combination of call and put option contracts), forward contracts and commodity purchasing, while fluctuations in the cost of diamonds are not hedged.
Liquidity risk
Signet’s objective is to ensure that it has access to, or the ability to generate, sufficient cash from either internal or external sources in a timely and cost-effective manner to meet its commitments as they become due and payable. Signet manages liquidity risks as part of its overall risk management policy. Management produces forecasting and budgeting information that is reviewed and monitored by the Board of Directors. Cash generated from operations and external financing are the main sources of funding, which supplement Signet’s resources in meeting liquidity requirements.
The main external sources of funding are a senior unsecured credit facility, senior unsecured notes and securitized credit card receivables, as described in Note 20.
Interest rate risk
Signet has exposure to movements in interest rates associated with cash and borrowings. Signet may enter into various interest rate protection agreements in order to limit the impact of movements in interest rates.
Interest rate swap (designated) — The Company entered into an interest rate swap in March 2015 with an aggregate notional amount of $300.0 million that is scheduled to mature through April 2019. Under this contract, the Company agrees to exchange, at specified intervals, the difference between fixed contract rates and floating rate interest amounts calculated by reference to the agreed notional amounts. This contract was entered into to reduce the consolidated interest rate risk associated with variable rate, long-term debt. The Company designated this derivative as a cash flow hedge of the variability in expected cash outflows for interest payments. The Company has effectively converted a portion of its variable-rate senior unsecured term loan into fixed-rate debt.
The fair value of the swap is presented within the consolidated balance sheets, and the Company recognizes any changes in the fair value as an adjustment of AOCI within equity to the extent the swap is effective. The ineffective portion, if any, is recognized in current period earnings. As interest expense is accrued on the debt obligation, amounts in AOCI related to the interest rate swap are reclassified into income resulting in a net interest expense on the hedged amount of the underlying debt obligation equal to the effective yield of the fixed rate of the swap. In the event that the interest rate swap is dedesignated prior to maturity, gains or losses in AOCI remain deferred and are reclassified into earnings in the periods in which the hedged forecasted transaction affects earnings.
Credit risk and concentrations of credit risk
Credit risk represents the loss that would be recognized at the reporting date if counterparties failed to perform as contracted. Signet does not anticipate non-performance by counterparties of its financial instruments, except for customer in-house financing receivables as disclosed in Note 11 of which no single customer represents a significant portion of the Company’s receivable balance. Signet does not require collateral or other security to support cash investments or financial instruments with credit risk; however, it is Signet’s policy to only hold cash and cash equivalent investments and to transact financial instruments with financial institutions with a certain minimum credit rating. Management does not believe Signet is exposed to any significant concentrations of credit risk that arise from cash and cash equivalent investments, derivatives or accounts receivable.
Commodity and foreign currency risks
The following types of derivative financial instruments are utilized by Signet to mitigate certain risk exposures related to changes in commodity prices and foreign exchange rates:
Forward foreign currency exchange contracts (designated) — These contracts, which are principally in US dollars, are entered into to limit the impact of movements in foreign exchange rates on forecasted foreign currency purchases. The total notional amount of these foreign currency contracts outstanding as of January 28, 2017 was $37.8 million (January 30, 2016: $10.7 million). These contracts have been designated as cash flow hedges and will be settled over the next 12 months (January 30, 2016: 6 months).
Forward foreign currency exchange contracts (undesignated) — Foreign currency contracts not designated as cash flow hedges are used to limit the impact of movements in foreign exchange rates on recognized foreign currency payables and to hedge currency flows through Signet’s bank accounts to mitigate Signet’s exposure to foreign currency exchange risk in its cash and borrowings. The total notional amount of these foreign currency contracts outstanding as of January 28, 2017 was $117.8 million (January 30, 2016: $32.0 million).
Commodity forward purchase contracts and net zero-cost collar arrangements (designated) — These contracts are entered into to reduce Signet’s exposure to significant movements in the price of the underlying precious metal raw material. The total notional amount of these commodity derivative contracts outstanding as of January 28, 2017 was for approximately 94,000 ounces of gold (January 30, 2016: 76,000 ounces). These contracts have been designated as cash flow hedges and will be settled over the next 12 months (January 30, 2016: 12 months).
The bank counterparties to the derivative instruments expose Signet to credit-related losses in the event of their non-performance. However, to mitigate that risk, Signet only contracts with counterparties that meet certain minimum requirements under its counterparty risk assessment process. As of January 28, 2017, Signet believes that this credit risk did not materially change the fair value of the foreign currency or commodity contracts.
The following table summarizes the fair value and presentation of derivative instruments in the consolidated balance sheets:
 
Fair value of derivative assets
(in millions)
Balance sheet location
 
January 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
)

Derivatives designated as cash flow hedges
The following table summarizes the pre-tax gains (losses) recorded in AOCI for derivatives designated in cash flow hedging relationships:
(in millions)
January 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
)
The following tables summarize the effect of derivative instruments designated as cash flow hedges in OCI and the consolidated income statements:
Foreign currency contracts
(in millions)
Income statement caption
 
Fiscal 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

Commodity contracts
(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
)

Interest rate swaps
(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
)

There was no material ineffectiveness related to the Company’s derivative instruments designated in cash flow hedging relationships during Fiscal 2017 and Fiscal 2016. Based on current valuations, the Company expects approximately $2.3 million of net pre-tax derivative gains to be reclassified out of AOCI into earnings within the next 12 months.
Derivatives not designated as hedging instruments
The following table presents the effects of the Company’s derivatives instruments not designated as cash flow hedges in the consolidated income statements:
 
Income statement caption
 
Amount of 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
)
Fair Value Measurement
Fair value measurement
Fair value measurement
The estimated fair value of Signet’s financial instruments held or issued to finance Signet’s operations is summarized below. Certain estimates and judgments were required to develop the fair value amounts. The fair value amounts shown below are not necessarily indicative of the amounts that Signet would realize upon disposition nor do they indicate Signet’s intent or ability to dispose of the financial instrument. Assets and liabilities that are carried at fair value are required to be classified and disclosed in one of the following three categories:
Level 1—quoted market prices in active markets for identical assets and liabilities
Level 2—observable market based inputs or unobservable inputs that are corroborated by market data
Level 3—unobservable inputs that are not corroborated by market data
Signet determines fair value based upon quoted prices when available or through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. The methods Signet uses to determine fair value on an instrument-specific basis are detailed below:
 
January 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
)

Investments in US Treasury securities and corporate equity securities are based on quoted market prices for identical instruments in active markets, and therefore were classified as Level 1 measurements in the fair value hierarchy. Investments in US government agency securities and corporate bonds and notes are based on quoted prices for similar instruments in active markets, and therefore were classified as Level 2 measurements in the fair value hierarchy. See Note 16 for additional information related to the Company’s available-for-sale investments. The fair values of derivative financial instruments have been determined based on market value equivalents at the balance sheet date, taking into account the current interest rate environment, foreign currency forward rates or commodity forward rates, and therefore were classified as Level 2 measurements in the fair value hierarchy. See Note 17 for additional information related to the Company’s derivatives.
The carrying amounts of cash and cash equivalents, accounts receivable, other receivables, accounts payable, accrued expenses, other liabilities, income taxes and the revolving credit facility approximate fair value because of the short-term maturity of these amounts.
The fair values of long-term debt instruments were determined using quoted market prices in inactive markets or discounted cash flows based upon current observable market interest rates and therefore were classified as Level 2 measurements in the fair value hierarchy. See Note 20 for classification between current and long-term debt. The carrying amount and fair value of outstanding debt at January 28, 2017 and January 30, 2016 were as follows:
 
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

Pension Plans
Pension plans
Pension plans
The UK Plan, which ceased to admit new employees from April 2004, is a funded plan with assets held in a separate trustee administered fund, which is independently managed. Signet used January 28, 2017 and January 30, 2016 measurement dates in determining the UK Plan’s benefit obligation and fair value of plan assets.
The following tables provide information concerning the UK Plan as of and for the fiscal years ended January 28, 2017 and January 30, 2016:
(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


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


The estimated actuarial losses and prior service credits for the UK Plan that will be amortized from AOCI into net periodic pension cost over the next fiscal year are $2.9 million and $(1.7) million, respectively.
The accumulated benefit obligation for the UK Plan was $208.0 million and $204.2 million as of January 28, 2017 and January 30, 2016, respectively.
The components of net periodic pension benefit (cost) and other amounts recognized in OCI for the UK Plan are as follows:
(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
%

The discount rate is based upon published rates for high-quality fixed-income investments that produce expected cash flows that approximate the timing and amount of expected future benefit payments.
The expected return on the UK Plan assets assumption is based upon the historical return and future expected returns for each asset class, as well as the target asset allocation of the portfolio of UK Plan assets.
The UK Plan’s investment strategy is guided by an objective of achieving a return on the investments, which is consistent with the long-term return assumptions and funding policy, to ensure the UK Plan obligations are met. The investment policy is to allocate funds to a diverse portfolio of investments, including UK and overseas equities, diversified growth funds, UK corporate bonds, open-ended funds and commercial property. The commercial property investment is through a Pooled Pensions Property Fund that provides a diversified portfolio of property assets. As of January 28, 2017, the target allocation for the UK Plan’s assets was bonds 53%, diversified growth funds 34%, equities 8% and property 5%. This allocation is consistent with the long-term target allocation of investments underlying the UK Plan’s funding strategy.
The fair value of the assets in the UK Plan at January 28, 2017 and January 30, 2016 are required to be classified and disclosed in one of the following three categories:
Level 1—quoted market prices in active markets for identical assets and liabilities
Level 2—observable market based inputs or unobservable inputs that are corroborated by market data
Level 3—unobservable inputs that are not corroborated by market data
The methods Signet uses to determine fair value on an instrument-specific basis are detailed below:
 
Fair value measurements as of January 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


Investments in diversified equity securities, diversified growth funds and fixed income securities are in pooled funds. Investments are valued based on unadjusted quoted prices for each fund in active markets, where possible and, therefore, classified in Level 1 of the fair value hierarchy. If unadjusted quoted prices for identical assets are unavailable, investments are valued by the administrators of the funds. The valuation is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of units outstanding. The unit price is based on underlying investments which are generally either traded in an active market or are valued based on observable inputs such as market interest rates and quoted prices for similar securities and, therefore, classified in Level 2 of the fair value hierarchy.
The investment in property is in pooled funds valued by the administrators of the fund. The valuation is based on the value of the underlying assets owned by the fund, minus its liabilities and then divided by the number of units outstanding. The unit price is based on underlying investments which are independently valued on a monthly basis. The investment in the property fund is subject to certain restrictions on withdrawals that could delay the receipt of funds by up to 16 months. Property investments are classified in Level 3 of the fair value hierarchy.
The table below sets forth changes in the fair value of the Level 3 investment assets in Fiscal 2017 and Fiscal 2016:
(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


Signet contributed $3.3 million to the UK Plan in Fiscal 2017 and expects to contribute a minimum of $3.3 million to the UK Plan in Fiscal 2018. The level of contributions is in accordance with an agreed upon deficit recovery plan and based on the results of the actuarial valuation as of April 5, 2015.
The following benefit payments, which reflect expected future service, as appropriate, are estimated to be paid by the UK Plan:
(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 June 2004, Signet introduced a defined contribution plan which replaced the UK Plan for new UK employees. The contributions to this plan in Fiscal 2017 were $1.8 million (Fiscal 2016: $2.0 million; Fiscal 2015: $1.8 million).
In the US, Signet operates a defined contribution 401(k) retirement savings plan for all eligible employees who meet minimum age and service requirements. The assets of this plan are held in a separate trust and Signet matches 50% of up to 6% of employee elective salary deferrals, subject to statutory limitations. Signet’s contributions to this plan in Fiscal 2017 were $14.6 million (Fiscal 2016: $8.3 million; Fiscal 2015: $7.6 million). The Company has also established two unfunded, non-qualified deferred compensation plans, one of which permits certain management and highly compensated employees to elect annually to defer all or a portion of their compensation and earn interest on the deferred amounts (“DCP”) and the other of which is frozen as to new participants and new deferrals. Beginning in April 2011, the DCP provided for a matching contribution based on each participant’s annual compensation deferral. The plan also permits employer contributions on a discretionary basis. In connection with these plans, Signet has invested in trust-owned life insurance policies and money market funds. The cost recognized in connection with the DCP in Fiscal 2017 was $4.6 million (Fiscal 2016: $2.9 million; Fiscal 2015: $2.6 million).
The fair value of the assets in the two unfunded, non-qualified deferred compensation plans at January 28, 2017 and January 30, 2016 are required to be classified and disclosed. Although these plans are not required to be funded by the Company, the Company may elect to fund the plans. The value and classification of these assets are as follows:
 
Fair value measurements as of January 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

Loans, Overdrafts and Long-Term Debt
Loans, overdrafts and long-term debt
Loans, overdrafts and long-term debt
(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.
Revolving credit facility and term loan (the “Credit Facility”)
During the second quarter of Fiscal 2017, Signet amended and restated its Credit Facility agreement to (i) increase the borrowing capacity under the revolving credit facility from $400 million to $700 million and extend the maturity date to July 2021 and (ii) extend the maturity date of the term loan facility to July 2021 and revise the scheduled quarterly principal repayments to align with the July 2021 maturity date. The amendment of the Credit Facility was accounted for as a modification of existing debt in accordance with ASC Topic 470-50, “Debt Modifications and Extinguishments.”
In connection with the amendment of the revolving credit facility, incremental fees of $1.4 million were incurred and capitalized. Capitalized fees associated with the amended revolving credit facility as of January 28, 2017 total $2.6 million with the unamortized balance recorded as an asset within the consolidated balance sheets. Accumulated amortization related to these capitalized fees as of January 28, 2017 was $0.8 million (January 30, 2016: $0.4 million). Amortization relating to these fees of $0.4 million and $0.3 million was recorded as interest expense in the consolidated income statements for Fiscal 2017 and Fiscal 2016, respectively. As of January 28, 2017 and January 30, 2016, the Company had stand-by letters of credit outstanding of $15.3 million and $28.8 million, respectively, that reduce remaining borrowing availability. The revolving credit facility had a weighted average interest rate of 1.71% and 1.18% during Fiscal 2017 and Fiscal 2016, respectively.
The senior unsecured term loan had an outstanding principal balance of $357.5 million as of the amendment date. Beginning in October 2016, the Company is required to make scheduled quarterly principal payments equal to the amounts per annum of the outstanding principal balance as follows: 5% in the first year, 7.5% in the second year, 10% in the third year, 12.5% in the fourth year and 15% in the fifth year after the initial payment date, with the balance due in July 2021. Excluding the impact of the interest rate swap designated as a cash flow hedge discussed in Note 17, the term loan had a weighted average interest rate of 1.78% and 1.48% during Fiscal 2017 and Fiscal 2016, respectively.
In connection with the amendment of the term loan facility, incremental fees of $0.7 million were incurred and capitalized. Capitalized fees associated with the amended term loan facility as of January 28, 2017 total $6.2 million with the unamortized balance recorded as a direct deduction from the outstanding liability within the consolidated balance sheets. Accumulated amortization related to these capitalized fees as of January 28, 2017 was $2.7 million (January 30, 2016: $1.8 million). Amortization relating to these fees of $0.9 million and $1.0 million was recorded as interest expense in the consolidated income statements Fiscal 2017 and Fiscal 2016, respectively.
Borrowings under the Credit Facility bear interest at a rate per annum equal to an applicable margin, plus, at the Company’s option, either (a) a base rate or (b) a LIBOR rate. The Credit Facility provides that the Company may voluntarily repay outstanding loans at any time without premium or penalty other than reimbursement of the lender’s redeployment and breakage costs in certain cases. In addition, the Credit Facility contains various customary representations and warranties, financial reporting requirements and other affirmative and negative covenants. The Company is required to maintain at all times a leverage ratio of no greater than 2.50 to 1.00 and a fixed charge coverage ratio of no less than 1.40 to 1.00, both determined as of the end of each fiscal quarter for the trailing twelve months.
On February 19, 2014, Signet entered into a definitive agreement to acquire Zale Corporation and concurrently received commitments for an $800 million 364-day unsecured bridge facility to finance the transaction. The bridge facility contained customary fees and incurred interest on any borrowings drawn on the facility. In May 2014, Signet executed its Zale Acquisition financing as described in Note 3, replacing the bridge facility commitments in addition to amending its Credit Facility as outlined above, issuing senior unsecured notes and securitizing credit card receivables. No amounts were drawn on the bridge facility commitments prior to replacement by the issuances of long-term debt listed below. Fees of $4.0 million relating to this unsecured bridge facility were incurred and capitalized during Fiscal 2015. The capitalized fees of $4.0 million were fully expensed in Fiscal 2015.
Senior unsecured notes due 2024
On May 19, 2014, Signet UK Finance plc (“Signet UK Finance”), a wholly owned subsidiary of the Company, issued $400 million aggregate principal amount of its 4.700% senior unsecured notes due in 2024 (the “Notes”). The Notes were issued under an effective registration statement previously filed with the SEC. Interest on the notes is payable semi-annually on June 15 and December 15 of each year, commencing December 15, 2014. The Notes are jointly and severally guaranteed, on a full and unconditional basis, by the Company and by certain of the Company’s wholly owned subsidiaries (such subsidiaries, the “Guarantors”). See Note 26 for additional information. The Notes were issued pursuant to a base indenture among the Company, Signet UK Finance, the Guarantors and Deutsche Bank Trust Company Americas as trustee, with the indenture containing customary covenants and events of default provisions. The Company received proceeds from the offering of approximately $393.9 million, which were net of underwriting discounts, commissions and offering expenses.
Capitalized fees relating to the senior unsecured notes total $7.0 million. Accumulated amortization related to these capitalized fees as of January 28, 2017 was $1.9 million (January 30, 2016: $1.2 million). The remaining unamortized capitalized fees are recorded as a direct deduction from the outstanding liability within the consolidated balance sheets. Amortization relating to these fees of $0.7 million and $0.7 million was recorded as interest expense in the consolidated income statements for Fiscal 2017 and Fiscal 2016, respectively.
Asset-backed securitization facility
The Company sold an undivided interest in certain credit card receivables to Sterling Jewelers Receivables Master Note Trust (the “Issuer”), a wholly-owned Delaware statutory trust and a wholly-owned indirect subsidiary of the Company and issued two-year revolving asset-backed variable funding notes to unrelated third party conduits pursuant to a master indenture dated as of November 2, 2001, as supplemented by the Series 2014-A indenture supplement dated as of May 15, 2014 among the Issuer, Sterling Jewelers Inc. (“SJI”) and Deutsche Bank Trust Company Americas, the indenture trustee. During the second quarter of Fiscal 2017, Signet amended the note purchase agreement associated with the asset-backed securitization facility to extend the term of the facility by one year to May 2018 with remaining terms substantially consistent with the existing agreement. The amendment was accounted for as a modification of existing debt in accordance with ASC 470-50. In connection with the amendment of the note purchase agreement, incremental fees of $0.6 million million were incurred and capitalized.
Under terms of the notes, the Issuer has obtained $600 million of financing from the unrelated third party commercial paper conduits sponsored by JPMorgan Chase Bank, N.A., which indebtedness is secured by credit card receivables originated from time to time by SJI. The credit card receivables will ultimately be transferred to the Issuer and are serviced by SJI. Signet guarantees the performance by SJI of its obligations under the agreements associated with this financing arrangement. Borrowings under the asset-backed variable funding notes bear interest at a rate per annum equal to LIBOR plus an applicable margin. Payments received from customers for balances outstanding on securitized credit card receivables are utilized to repay amounts outstanding under the facility each period, while proceeds from the facility are received for incremental credit card receivables originated when the receivables are pledged to the Issuer. Such payments received from customers and proceeds from the facility are reflected on a gross basis in the consolidated statements of cash flows. As of January 28, 2017 and January 30, 2016, $600.0 million remained outstanding under the securitization facility with a weighted average interest rate of 2.05% and 1.61% during Fiscal 2017 and Fiscal 2016, respectively.
Capitalized fees relating to the asset-backed securitization facility total $3.4 million. Accumulated amortization related to these capitalized fees as of January 28, 2017 was $3.1 million (January 30, 2016: $2.4 million). Amortization relating to these fees of $0.7 million and $1.5 million was recorded as interest expense in the consolidated income statements for Fiscal 2017 and Fiscal 2016, respectively.
Other
As of January 28, 2017 and January 30, 2016, the Company was in compliance with all debt covenants.
As of January 28, 2017 and January 30, 2016, there were $14.2 million and $24.4 million in overdrafts, which represent issued and outstanding checks where no bank balances exist with the right of offset.
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities
Accrued expenses and other current liabilities
(in millions)
January 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


The sales returns reserve, included in accrued expenses, is as follows:
(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

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

ESP deferred revenue
(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.
Other Liabilities-Non-Current
Other liabilities-non-current
Other liabilities—non-current
(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


A lease loss reserve is recorded for the net present value of the difference between the contractual rent obligations and sublease income expected from the properties.
(in millions)
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.
The cash expenditures on the remaining lease loss reserve are expected to be paid over the various remaining lease terms through 2023.
Share-Based Compensation
Share-Based Compensation
Share-based compensation
Signet operates several share-based compensation plans which can be categorized as the “Omnibus Plan,” “Share Saving Plans” and the “Executive Plans.”
Impact on results
Share-based compensation expense and the associated tax benefits recognized in the consolidated income statements are as follows:
(in millions)
Fiscal 2017
 
Fiscal 2016
 
Fiscal 2015
Share-based compensation expense
$
8.0

 
$
16.4

 
$
12.1

Income tax benefit
$
(2.8
)
 
$
(5.9
)
 
$
(4.3
)

As of January 28, 2017, unrecognized compensation cost related to unvested awards granted under share-based compensation plans is as follows:
 
Unrecognized Compensation Cost
 
Weighted average period
 
(in millions)
 
 
Omnibus Plan
$
10.3

 
1.8 years
Share Saving Plans
5.0

 
1.8 years
Total
$
15.3

 


As of April 2012, the Company opted to satisfy share option exercises and the vesting of restricted stock and restricted stock units (“RSUs”) under its plans with the issuance of treasury shares.
Omnibus Plan
In June 2009, Signet adopted the Signet Jewelers Limited Omnibus Incentive Plan (the “Omnibus Plan”). Awards that may be granted under the Omnibus Plan include restricted stock, RSUs, stock options and stock appreciation rights. The Fiscal 2017, Fiscal 2016 and Fiscal 2015 awards granted under the Omnibus Plan have two elements, time-based restricted stock and performance-based RSUs. The time-based restricted stock has a three year vesting period, subject to continued employment, and has the same voting rights and dividend rights as common shares (which are payable once the shares have vested). Performance-based RSUs granted include two performance measures, operating income (subject to certain adjustments) and return on capital employed (“ROCE”), with ROCE measure only applicable to senior executives. For both performance measures, cumulative results achieved during the relevant three year performance period are compared to target metrics established in the underlying grant agreements. The relevant performance is measured over a three year vesting period from the start of the fiscal year in which the award is granted. The Omnibus Plan permits the grant of awards to employees for up to 7,000,000 common shares.
In Fiscal 2015, the Company issued a grant of performance-based RSUs under the Omnibus Plan. This grant occurred as part of the Signet Integration Incentive Plan (“IIP”), a transaction-related special incentive program that was designed to facilitate the integration of the Zale Acquisition and to reward the anticipated efforts of key management personnel on both sides of the transaction. The RSUs vested, subject to continued employment, based upon gross synergies realized during the one year performance period compared to targeted gross synergy metrics established in the underlying grant agreement.
The significant assumptions utilized to estimate the weighted-average fair value of awards granted under the Omnibus Plan are as follows:
 
Omnibus Plan
 
Fiscal 2017
 
Fiscal 2016
 
Fiscal 2015
Share price
$
109.03

 
$
136.37

 
$
104.57

Risk free interest rate
1.0
%
 
0.8
%
 
0.8
%
Expected term
2.8 years

 
2.9 years

 
2.7 years

Expected volatility
28.5
%
 
25.4
%
 
32.1
%
Dividend yield
1.1
%
 
0.7
%
 
0.9
%
Fair value
$
106.48

 
$
134.46

 
$
103.12

The risk-free interest rate is based on the US Treasury (for US-based award recipients in all fiscal years and UK-based award recipients in Fiscal 2017) or UK Gilt (for UK-based award recipients in Fiscal 2016 and Fiscal 2015) yield curve in effect at the grant date with remaining terms equal to the expected term of the awards. The expected term utilized is based on the contractual vesting period of the awards. The expected volatility is determined by calculating the historical volatility of Signet’s share price over the expected term of the award.
The Fiscal 2017 activity for awards granted under the Omnibus Plan is as follows:
 
Omnibus Plans
(in millions, except per share amounts)
No. of
shares
 
Weighted
average
grant date
fair value
 
Weighted
average
remaining
contractual
life
 
Intrinsic
value
(1)
Outstanding at January 30, 2016
0.6

 
$
101.88

 
1.1 years
 
$
69.8

Fiscal 2017 activity:
 
 
 
 
 
 
 
Granted
0.3

 
106.48

 
 
 
 
Vested
(0.1
)
 
84.55

 
 
 
 
Lapsed
(0.1
)
 
73.56

 
 
 
 
Outstanding at January 28, 2017
0.7

 
$
111.98

 
1.3 years
 
$
53.0

(1) 
Intrinsic value for outstanding restricted stock and RSUs is based on the fair market value of Signet’s common stock on the last business day of the fiscal year.
The following table summarizes additional information about awards granted under the Omnibus Plan:
(in millions)
Fiscal 2017
 
Fiscal 2016
 
Fiscal 2015
Total intrinsic value of awards vested
$
13.6

 
$
22.2

 
$
43.9


Share Saving Plans
Signet has three share option savings plans (collectively, the “Share Saving Plans”) available to employees as follows:
Employee Share Savings Plan, for US employees
Sharesave Plan, for UK employees
Irish Sharesave Plan for Republic of Ireland employees
The Share Saving Plans are compensatory and compensation expense is recognized over the requisite service period. In any 10 year period not more than 10% of the issued common shares of the Company from time to time may, in aggregate, be issued or be issuable pursuant to options granted under the Share Saving Plans or any other employees share plans adopted by Signet.
The Employee Share Savings Plan is a savings plan intended to qualify under US Section 423 of the US Internal Revenue Code and allows employees to purchase common shares at a discount of approximately 15% to the closing price of the New York Stock Exchange on the date of grant. Options granted under the Employee Share Savings Plan vest after 24 months and are generally only exercisable between 24 and 27 months of the grant date.
The Sharesave Plan and Irish Sharesave Plan allow eligible employees to purchase common shares at a discount of approximately 20% below a determined market price based on the New York Stock Exchange. The market price is determined as the average middle market price for the three trading days prior to the invitation date, or the market price on the day immediately preceding the participation date or other market price agreed in writing, whichever is the higher value. Options granted under the Sharesave Plan and the Irish Sharesave Plan vest after 36 months and are generally only exercisable between 36 and 42 months from commencement of the related savings contract.
The significant assumptions utilized to estimate the weighted-average fair value of awards granted under the Share Saving Plans are as follows:
 
Share Saving Plans
 
Fiscal 2017
 
Fiscal 2016
 
Fiscal 2015
Share price
$
84.37

 
$
139.18

 
$
114.93

Exercise price
$
67.24

 
$
114.67

 
$
96.67

Risk free interest rate
0.6
%
 
0.7
%
 
0.9
%
Expected term
2.7 years

 
2.6 years

 
2.8 years

Expected volatility
31.3
%
 
27.1
%
 
27.6
%
Dividend yield
1.7
%
 
0.8
%
 
0.8
%
Fair value
$
22.82

 
$
34.76

 
$
28.76


The risk-free interest rate is based on the US Treasury (for US-based award recipients) or UK Gilt (for UK-based award recipients) yield curve in effect at the grant date with remaining terms equal to the expected term of the awards. The expected term utilized is based on the contractual vesting period of the awards, inclusive of any exercise period available to award recipients after vesting. The expected volatility is determined by calculating the historical volatility of Signet’s share price over the expected term of the awards.
The Fiscal 2017 activity for awards granted under the Share Saving Plans is as follows:
 
Share Saving Plans
(in millions, except per share amounts)
No. of
shares
 
Weighted
average
exercise
price
 
Weighted
average
remaining
contractual
life
 
Intrinsic
value
(1)
Outstanding at January 30, 2016
0.2

 
$
94.07

 
1.9 years
 
$
4.9

Fiscal 2017 activity:
 
 
 
 
 
 
 
Granted
0.2

 
67.24

 
 
 
 
Exercised

 
48.78

 
 
 
 
Lapsed
(0.1
)
 
101.34

 
 
 
 
Outstanding at January 28, 2017
0.3

 
$
74.30

 
2.0 years
 
$
3.0

Exercisable at January 30, 2016

 
$

 
 
 
$

Exercisable at January 28, 2017

 
$

 
 
 
$

(1)    Intrinsic value for outstanding awards is based on the fair market value of Signet’s common stock on the last business day of the fiscal year.
The following table summarizes additional information about awards granted under the Share Saving Plans:
(in millions, except per share amounts)
Fiscal 2017
 
Fiscal 2016
 
Fiscal 2015
Weighted average grant date fair value per share of awards granted
$
22.82

 
$
34.76

 
$
28.76

Total intrinsic value of options exercised
$
1.5

 
$
6.4

 
$
11.0

Cash received from share options exercised
$
1.4

 
$
4.0

 
$
4.3


Executive Plans
Signet operates three 2003 executive share plans (the “2003 Plans”), together referred to as the “Executive Plans.” Option awards under the Executive Plans were generally granted with an exercise price equal to the market price of the Company’s shares at the date of grant. No awards have been granted under the Executive Plans since the adoption of the Omnibus Plan in Fiscal 2010. During Fiscal 2014, the plan periods for the Executive Plans expired. As a result, no additional awards may be granted under the Executive Plans.
The following table summarizes additional information about awards granted under the Executive Plans:
(in millions)
Fiscal 2017
 
Fiscal 2016
 
Fiscal 2015
Total intrinsic value of options exercised
$
0.6

 
$
3.4

 
$
2.9

Cash received from share options exercised
$
0.7

 
$
1.0

 
$
1.8


As of January 28, 2017 and January 30, 2016, the intrinsic value of unexercised awards outstanding under the Executive Plans was $0.3 million and $1.5 million, respectively. The outstanding awards, which are all exercisable, expire prior to the end of 2018.
Commitments and Contingencies
Commitments and contingencies
Commitments and contingencies
Operating leases
Signet occupies certain properties and holds machinery and vehicles under operating leases. Rental expense for operating leases is as follows:
(in millions)
Fiscal 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


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


Contingent property liabilities
Approximately 26 UK property leases had been assigned by Signet at January 28, 2017 (and remained unexpired and occupied by assignees at that date) and approximately 12 additional properties were sub-leased at that date. Should the assignees or sub-tenants fail to fulfill any obligations in respect of those leases or any other leases which have at any other time been assigned or sub-leased, Signet or one of its UK subsidiaries may be liable for those defaults. The number of such claims arising to date has been small, and the liability, which is charged to the income statement as it arises, has not been material.
Capital commitments
At January 28, 2017 Signet has committed to spend $48.4 million (January 30, 2016: $28.9 million) related to capital commitments. These commitments principally relate to the expansion and renovation of stores.
Legal proceedings
Employment practices
As previously reported, in March 2008, a group of private plaintiffs (the “Claimants”) filed a class action lawsuit for an unspecified amount against SJI, a subsidiary of Signet, in the US District Court for the Southern District of New York alleging that US store-level employment practices are discriminatory as to compensation and promotional activities with respect to gender. In June 2008, the District Court referred the matter to private arbitration where the Claimants sought to proceed on a class-wide basis. The Claimants filed a motion for class certification and SJI opposed the motion. A hearing on the class certification motion was held in late February 2014. On February 2, 2015, the arbitrator issued a Class Determination Award in which she certified for a class-wide hearing Claimants’ disparate impact declaratory and injunctive relief class claim under Title VII, with a class period of July 22, 2004 through date of trial for the Claimants’ compensation claims and December 7, 2004 through date of trial for Claimants’ promotion claims. The arbitrator otherwise denied Claimants’ motion to certify a disparate treatment class alleged under Title VII, denied a disparate impact monetary damages class alleged under Title VII, and denied an opt-out monetary damages class under the Equal Pay Act. On February 9, 2015, Claimants filed an Emergency Motion To Restrict Communications With The Certified Class And For Corrective Notice. SJI filed its opposition to Claimants’ emergency motion on February 17, 2015, and a hearing was held on February 18, 2015. Claimants’ motion was granted in part and denied in part in an order issued on March 16, 2015. Claimants filed a Motion for Reconsideration Regarding Title VII Claims for Disparate Treatment in Compensation on February 11, 2015. SJI filed its opposition to Claimants’ Motion for Reconsideration on March 4, 2015. Claimants’ reply was filed on March 16, 2015. Claimants’ Motion was denied in an order issued April 27, 2015. SJI filed with the US District Court for the Southern District of New York a Motion to Vacate the Arbitrator’s Class Certification Award on March 3, 2015. Claimants’ opposition was filed on March 23, 2015 and SJI’s reply was filed on April 3, 2015. SJI’s motion was heard on May 4, 2015. On November 16, 2015, the US District Court for the Southern District of New York granted SJI’s Motion to Vacate the Arbitrator’s Class Certification Award in part and denied it in part. On November 25, 2015, SJI filed a Motion to Stay the AAA Proceedings while SJI appeals the decision of the US District Court for the Southern District of New York to the United States Court of Appeals for the Second Circuit. Claimants filed their opposition on December 2, 2015. On December 3, 2015, SJI filed with the United States Court of Appeals for the Second Circuit SJI’s Notice of Appeal of the Southern District’s November 16, 2015 Opinion and Order. The arbitrator issued an order denying SJI’s Motion to Stay on February 22, 2016. SJI filed its Brief and Special Appendix with the Second Circuit on March 16, 2016. The matter was fully briefed and oral argument was heard by the U.S. Court of Appeals for the Second Circuit on November 2, 2016. On April 6, 2015, Claimants filed in the AAA Claimants’ Motion for Clarification or in the Alternative Motion for Stay of the Effect of the Class Certification Award as to the Individual Intentional Discrimination Claims. SJI filed its opposition on May 12, 2015. Claimants’ reply was filed on May 22, 2015. Claimants’ motion was granted on June 15, 2015. Claimants filed Claimants’ Motion for Conditional Certification of Claimants’ Equal Pay Act Claims and Authorization of Notice on March 6, 2015. SJI’s opposition was filed on May 1, 2015. Claimants filed their reply on June 5, 2015. The arbitrator heard oral argument on Claimants’ Motion on December 18, 2015 and, on February 29, 2016, issued an Equal Pay Act Collective Action Conditional Certification Award and Order Re Claimants’ Motion For Tolling Of EPA Limitations Period, conditionally certifying Claimants’ Equal Pay Act claims as a collective action, and tolling the statute of limitations on EPA claims to October 16, 2003 to ninety days after notice issues to the putative members of the collective action. SJI filed in the AAA a Motion To Stay Arbitration Pending The District Court’s Consideration Of Respondent’s Motion To Vacate Arbitrator’s Equal Pay Act Collective Action Conditional Certification Award And Order Re Claimants’ Motion For Tolling Of EPA Limitations Period on March 10, 2016. SJI filed in the AAA a Renewed Motion To Stay Arbitration Pending The District Court’s Resolution Of Sterling’s Motion To Vacate Arbitrator’s Equal Pay Act Collective Action Conditional Certification Award And Order Re Claimants’ Motion For Tolling Of EPA Limitations Period on March 31, 2016. Claimants filed their opposition on April 4, 2016. The arbitrator denied SJI’s Motion on April 5, 2016. On March 23, 2016 SJI filed with the US District Court for the Southern District of New York a Motion To Vacate The Arbitrator’s Equal Pay Act Collective Action Conditional Certification Award And Order Re Claimants’ Motion For Tolling Of EPA Limitations Period. Claimants filed their opposition brief on April 11, 2016, SJI filed its reply on April 20, 2016, and oral argument was heard on SJI’s Motion on May 11, 2016. SJI’s Motion was denied on May 22, 2016. On May 31, 2016, SJI filed a Notice Of Appeal of Judge Rakoff’s opinion and order to the Second Circuit Court of Appeals. SJI’s brief was filed September 13, 2016, and Claimants’ brief was filed on December 13, 2016, and SJI filed its reply brief on January 10, 2017. Claimants filed a Motion For Amended Class Determination Award on November 18, 2015, and on March 31, 2016 the arbitrator entered an order amending the Title VII class certification award to preclude class members from requesting exclusion from the injunctive and declaratory relief class certified in the arbitration. The arbitrator issued a Bifurcated Case Management Plan on April 5, 2016, and ordered into effect the parties’ Stipulation Regarding Notice Of Equal Pay Act Collective Action And Related Notice Administrative Procedures on April 7, 2016. SJI filed in the AAA a Motion For Protective Order on May 2, 2016. Claimants’ opposition was filed on June 3, 2016. The matter was fully briefed and oral argument was heard on July 22, 2016. The motion was granted in part on January 27, 2017. Notice to EPA collective action members was issued on May 3, 2016, and the opt-in period for these notice recipients closed on August 1, 2016. On January 4, 2017, the Arbitrator issued a Second Amended Bifurcated Case Management Order. At this time, 10,456 current and former employees have submitted consent forms to opt in to the collective action. We are awaiting a trial date in this matter, which we are anticipating to be set for calendar 2018.
Also, as previously reported, on September 23, 2008, the US Equal Employment Opportunity Commission (“EEOC”) filed a lawsuit against SJI in the US District Court for the Western District of New York. The EEOC’s lawsuit alleges that SJI engaged in intentional and disparate impact gender discrimination with respect to pay and promotions of female retail store employees from January 1, 2003 to the present. The EEOC asserts claims for unspecified monetary relief and non-monetary relief against the Company on behalf of a class of female employees subjected to these alleged practices. Non-expert fact discovery closed in mid-May 2013. In September 2013, SJI made a motion for partial summary judgment on procedural grounds, which was referred to a Magistrate Judge. The Magistrate Judge heard oral arguments on the summary judgment motion in December 2013. On January 2, 2014, the Magistrate Judge issued his Report, Recommendation and Order, recommending that the Court grant SJI’s motion for partial summary judgment and dismiss the EEOC’s claims in their entirety. The EEOC filed its objections to the Magistrate Judge’s ruling and SJI filed its response thereto. The District Court Judge heard oral arguments on the EEOC’s objections to the Magistrate Judge’s ruling on March 7, 2014 and on March 11, 2014 entered an order dismissing the action with prejudice. On May 12, 2014, the EEOC filed its Notice of Appeal of the District Court Judge’s dismissal of the action to United States Court of Appeals for the Second Circuit. The parties fully briefed the appeal and oral argument occurred on May 5, 2015. On September 9, 2015, the United States Court of Appeals for the Second Circuit issued a decision vacating the District Court’s order and remanding the case back to the District Court for further proceedings. SJI filed a Petition for Panel Rehearing and En Banc Review with the United States Court of Appeals for the Second Circuit, which was denied on December 1, 2015. On December 4, 2015, SJI filed in the United States Court of Appeals for the Second Circuit a Motion Of Appellee Sterling Jewelers Inc. For Stay Of Mandate Pending Petition For Writ Of Certiorari. The Motion was granted by the Second Circuit on December 10, 2015. SJI filed a Petition For Writ Of Certiorari in the Supreme Court of the United States on April 29, 2016, which was denied. The case was remanded to the Western District of New York and on November 2, 2016, the Court issued a case scheduling order. On January 25, 2017, the parties filed a joint motion to extend case scheduling order deadlines. The motion was granted on January 27, 2017.
SJI denies the allegations of the Claimants and EEOC and has been defending these cases vigorously. At this point, no outcome or possible loss or range of losses, if any, arising from the litigation is able to be estimated.
Prior to the Acquisition, Zale Corporation was a defendant in three purported class action lawsuits, Tessa Hodge v. Zale Delaware, Inc., d/b/a Piercing Pagoda which was filed on April 23, 2013 in the Superior Court of the State of California, County of San Bernardino; Naomi Tapia v. Zale Corporation which was filed on July 3, 2013 in the US District Court, Southern District of California; and Melissa Roberts v. Zale Delaware, Inc. which was filed on October 7, 2013 in the Superior Court of the State of California, County of Los Angeles. All three cases include allegations that Zale Corporation violated various wage and hour labor laws. Relief is sought on behalf of current and former Piercing Pagoda and Zale Corporation’s employees. The lawsuits seek to recover damages, penalties and attorneys’ fees as a result of the alleged violations. Without admitting or conceding any liability, the Company reached an agreement to settle the Hodge and Roberts matters for an immaterial amount. Final approval of the settlement was granted on March 9, 2015 and the settlement was implemented.
On April 6, 2016, the Court conditionally certified an opt-in collective action under the Fair Labor Standards Act (“FLSA”) of all current and former employees of Zale Delaware Inc. d/b/a Zale Corporation who were designated by Zale as nonexempt and who worked in a Zale retail store in the United States at any time from July 3, 2010 to the present. Additionally, the court certified an opt-out class action of the remaining claims on behalf of all current and former employees of Zale Delaware Inc. d/b/a Zale Corporation who were designated by Zale as nonexempt, and worked in a Zale retail store in the State of California at any time from July 3, 2009 to the present. On December 28, 2016, the Company participated in a mediation of all claims in the action. The mediation resulted in a settlement agreement signed by both parties. The settlement agreement is subject to court approval. The Company anticipates that the settlement will be approved on a final basis in 2017. 
Litigation Challenging the Company’s Acquisition of Zale Corporation
Five putative stockholder class action lawsuits challenging the Company’s acquisition of Zale Corporation were filed in the Court of Chancery of the State of Delaware: Breyer v. Zale Corp. et al., C.A. No. 9388-VCP, filed February 24, 2014; Stein v. Zale Corp. et al., C.A. No. 9408-VCP, filed March 3, 2014; Singh v. Zale Corp. et al., C.A. No. 9409-VCP, filed March 3, 2014; Smart v. Zale Corp. et al., C.A. No. 9420-VCP, filed March 6, 2014; and Pill v. Zale Corp. et al., C.A. No. 9440-VCP, filed March 12, 2014 (collectively, the “Actions”). Each of these Actions was brought by a purported former holder of Zale Corporation common stock, both individually and on behalf of a putative class of former Zale Corporation stockholders.
The Court of Chancery consolidated the Actions on March 25, 2014 (the “Consolidated Action”), and the plaintiffs filed a consolidated amended complaint on April 23, 2014, which named as defendants Zale Corporation, the members of the board of directors of Zale Corporation, the Company, and a merger-related subsidiary of the Company, and alleged that the Zale Corporation directors breached their fiduciary duties to Zale Corporation stockholders in connection with their consideration and approval of the merger agreement by failing to maximize stockholder value and agreeing to an inadequate merger price and to deal terms that deter higher bids. That complaint also alleged that the Zale Corporation directors issued a materially misleading and incomplete proxy statement regarding the merger and that Zale Corporation and the Company aided and abetted the Zale Corporation directors’ breaches of fiduciary duty. On May 23, 2014, the Court of Chancery denied plaintiffs’ motion for a preliminary injunction to prevent the consummation of the merger.
On September 30, 2014, the plaintiffs filed an amended complaint asserting substantially similar claims and allegations as the prior complaint. The amended complaint added Zale Corporation’s former financial advisor, Bank of America Merrill Lynch, as a defendant for allegedly aiding and abetting the Zale Corporation directors’ breaches of fiduciary duty. The amended complaint no longer named as defendants Zale Corporation or the Company’s merger-related subsidiary. The amended complaint sought, among other things, rescission of the merger or damages, as well as attorneys’ and experts’ fees. The defendant’s motion to dismiss was heard by the Court of Chancery on May 20, 2015. On October 1, 2015, the Court dismissed the claims against the Zale Corporation directors and the Company. On October 29, 2015, the Court dismissed the claims against Bank of America Merrill Lynch. On November 30, 2015, plaintiffs filed an appeal of the October 1, 2015 and October 29, 2015 decisions of the Court of Chancery with the Supreme Court of the State of Delaware. On May 6, 2016, the Supreme Court of the State of Delaware affirmed the Court of Chancery’s dismissal of the entirety of the amended complaint.
Appraisal Litigation
Following the consummation of the acquisition of Zale Corporation by the Company, former Zale Corporation stockholders sought appraisal pursuant to 8 Del. C. § 262 in the Court of Chancery of the State of Delaware, in consolidated proceedings captioned Merion Capital L.P. et al. v. Zale Corp., C.A. No. 9731-VCP,TIG Arbitrage Opportunity Fund I, L.P. v. Zale Corp., C.A. No. 10070-VCP,and The Gabelli ABC Fund et al. v. Zale Corp., C.A. No. 10162-VCP(the “Appraisal Action”). The total number of shares of Zale Corporation’s common stock for which appraisal had been demanded was approximately 8.8 million.
On August 12, 2015, the parties in the Appraisal Action entered into a settlement agreement (the “Settlement Agreement”). The terms of the Settlement Agreement provided for the payment to petitioners in the Appraisal Action of $21.00 per share of Zale Corporation common stock (the consideration offered in the Company’s acquisition of Zale Corporation) plus a total sum of $34.2 million to be allocated among petitioners, which proceeds are inclusive of and in satisfaction of any statutory interest that may have accrued on petitioners’ shares pursuant to 8 Del. C. § 262. On August 12, 2015, the Court of Chancery dismissed the Appraisal Action pursuant to the Settlement Agreement as to all former Zale Corporation stockholders who have submitted and not withdrawn a demand for appraisal. The Company recorded an accrual for the Settlement Agreement of $34.2 million during the second quarter of Fiscal 2016. This amount was paid to petitioners during the third quarter of Fiscal 2016.
Shareholder Action
On August 25, 2016, Susan Dube filed a putative class action complaint in the United States District Court for the Southern District of New York against the Company and its Chief Executive Officer and Chief Financial Officer, purportedly on behalf of stockholders that acquired the Company’s securities between January 7, 2016, and June 3, 2016, inclusive (Dube v. Signet Jewelers Limited, et al., Civ. No. 16-6728 (S.D.N.Y.)). On August 31, 2016, Lyubomir Spasov filed a putative class action complaint in the United States District Court for the Southern District of New York alleging identical claims against the Company and its Chief Executive Officer and Chief Financial Officer (Spasov v. Signet Jewelers Limited, et al., Civ. No. 16-06861 (S.D.N.Y.)). On September 16, 2016, the two complaints were consolidated under case number 16-CV-6728, and on November 21, 2016, Susan Dube and Lyubomir Spasov were named co-lead plaintiffs. On January 30, 2017, co-lead plaintiffs filed an amended complaint purportedly on behalf of a putative class of stockholders that acquired the Company’s securities between November 25, 2014, and August 25, 2016, which alleged that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by, among other things, misrepresenting the Company’s business and earnings by failing to disclose that the Company was allegedly experiencing difficulty ensuring the safety of customer’s jewelry while in Signet’s custody for repairs, which resulted in a drop-off in customer confidence, and making misleading statements about its credit portfolio. The amended complaint alleged that as a result of the alleged misrepresentations, the Company’s share price was artificially inflated and sought unspecified compensatory damages and costs and expenses, including attorneys’ and experts’ fees. On March 1, 2017, Plaintiffs sought leave from the Court to file a second amended complaint to add additional allegations and/or claims concerning public reports of sexual harassment allegations raised by certain claimants in an ongoing pay and promotion gender discrimination class arbitration. The Court granted Plaintiffs’ request and the second amended complaint is due to be filed on or before April 3, 2017. Defendants’ have until May 19, 2017, to answer or move to dismiss the second amended complaint. The Company believes that plaintiffs’ allegations are without merit and cannot estimate a range of potential liability, if any, at this time.
In the ordinary course of business, Signet may be subject, from time to time, to various other proceedings, lawsuits, disputes or claims incidental to its business, which the Company believes are not significant to Signet’s consolidated financial position, results of operations or cash flows.
Condensed Consolidating Financial Information
Condensed consolidating financial information
Condensed consolidating financial information
The accompanying condensed consolidating financial information has been prepared and presented pursuant to SEC Regulation S-X, Rule 3-10, “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.” We and certain of our subsidiaries have guaranteed the obligations under certain debt securities that have been issued by Signet UK Finance plc. The following presents the condensed consolidating financial information for: (i) the indirect Parent Company (Signet Jewelers Limited); (ii) the Issuer of the guaranteed obligations (Signet UK Finance plc); (iii) the Guarantor subsidiaries, on a combined basis; (iv) the non-guarantor subsidiaries, on a combined basis; (v) consolidating eliminations; and (vi) Signet Jewelers Limited and Subsidiaries on a consolidated basis. Each Guarantor subsidiary is 100% owned by the Parent Company at the date of each balance sheet presented. The Guarantor subsidiaries, along with Signet Jewelers Limited, will fully and unconditionally guarantee the obligations of Signet UK Finance plc under any such debt securities. Each entity in the consolidating financial information follows the same accounting policies as described in the consolidated financial statements.
The accompanying condensed consolidating financial information has been presented on the equity method of accounting for all periods presented. Under this method, investments in subsidiaries are recorded at cost and adjusted for the subsidiaries’ cumulative results of operations, capital contributions and distributions, and other changes in equity. Elimination entries include consolidating and eliminating entries for investments in subsidiaries, and intra-entity activity and balances.
Condensed Consolidating Income Statement
For the 52 week period ended January 28, 2017
(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

Condensed Consolidating Income Statement
For the 52 week period ended January 30, 2016
(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




Condensed Consolidating Income Statement
For the 52 week period ended January 31, 2015
(in millions)
Signet
Jewelers
Limited
 
Signet UK
Finance plc
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Sales
$

 
$

 
$
5,671.4

 
$
64.9

 
$

 
$
5,736.3

Cost of sales

 

 
(3,647.0
)
 
(15.1
)
 

 
(3,662.1
)
Gross margin

 

 
2,024.4

 
49.8

 

 
2,074.2

Selling, general and administrative expenses
(2.5
)
 

 
(1,683.6
)
 
(26.8
)
 

 
(1,712.9
)
Other operating income, net

 

 
220.8

 
(5.5
)
 

 
215.3

Operating (loss) income
(2.5
)
 

 
561.6

 
17.5

 

 
576.6

Intra-entity interest income (expense)

 
13.2

 
(129.6
)
 
116.4

 

 

Interest expense, net

 
(13.9
)
 
(14.8
)
 
(7.3
)
 

 
(36.0
)
(Loss) income before income taxes
(2.5
)
 
(0.7
)
 
417.2

 
126.6

 

 
540.6

Income taxes

 
0.1

 
(159.5
)
 
0.1

 

 
(159.3
)
Equity in income of subsidiaries
383.8

 

 
579.8

 
565.4

 
(1,529.0
)
 

Net income (loss)
381.3

 
(0.6
)
 
837.5

 
692.1

 
(1,529.0
)
 
381.3

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


Condensed Consolidating Statement of Comprehensive Income
For the 52 week period ended January 28, 2017
(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




Condensed Consolidating Statement of Comprehensive Income
For the 52 week period ended January 30, 2016
(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




Condensed Consolidating Statement of Comprehensive Income
For the 52 week period ended January 31, 2015
(in millions)
Signet
Jewelers
Limited
 
Signet UK
Finance plc
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net income (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


Condensed Consolidating Balance Sheet
January 28, 2017
(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

Condensed Consolidating Balance Sheet
January 30, 2016
(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


Condensed Consolidating Statement of Cash Flows
For the 52 week period ended January 28, 2017
(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

Condensed Consolidating Statement of Cash Flows
For the 52 week period ended January 30, 2016
(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

Condensed Consolidating Statement of Cash Flows
For the 52 week period ended January 31, 2015
(in millions)
Signet
Jewelers
Limited
 
Signet UK
Finance plc
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net cash provided by (used in) operating activities
$
150.5

 
$
2.2

 
$
166.6

 
$
116.7

 
$
(153.0
)
 
$
283.0

Investing activities


 

 


 


 


 


Purchase of property, plant and equipment

 

 
(219.8
)
 
(0.4
)
 

 
(220.2
)
Investment in subsidiaries

 

 
(18.9
)
 
(10.0
)
 
28.9

 

Purchase of available-for-sale securities

 

 

 
(5.7
)
 

 
(5.7
)
Proceeds from available-for-sale securities

 

 

 
2.5

 

 
2.5

Acquisition of Zale Corporation, net of cash acquired

 

 
(1,431.1
)
 
1.9

 

 
(1,429.2
)
Net cash (used in) provided by investing activities

 

 
(1,669.8
)
 
(11.7
)
 
28.9

 
(1,652.6
)
Financing activities


 

 


 


 


 


Dividends paid 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

Quarterly Financial Information - Unaudited
Quarterly Financial Information - Unaudited
QUARTERLY FINANCIAL INFORMATION—UNAUDITED
The sum of the quarterly earnings per share data may not equal the full year amount as the computations of the weighted average shares outstanding for each quarter and the full year are calculated independently.
 
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

Organization and summary of significant accoutning policies (Policies)
Basis of preparation
The consolidated financial statements of Signet are prepared in accordance with US generally accepted accounting principles (“US GAAP”) and include the results for the 52 week period ended January 28, 2017 (“Fiscal 2017”), as Signet’s fiscal year ends on the Saturday nearest to January 31. The comparative periods are for the 52 week period ended January 30, 2016 (“Fiscal 2016”) and the 52 week period ended January 31, 2015 (“Fiscal 2015”). Intercompany transactions and balances have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation.
Use of estimates
The preparation of these consolidated financial statements, in conformity with US GAAP and US Securities and Exchange Commission (“SEC”) regulations, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Estimates and assumptions are primarily made in relation to the valuation of accounts receivable, inventories, deferred revenue, derivatives, employee benefits, income taxes, contingencies, asset impairments, indefinite-lived intangible assets, as well as depreciation and amortization of long-lived assets.
The reported results of operations are not indicative of results expected in future periods.
Foreign currency translation
The financial position and operating results of certain foreign operations, including the UK Jewelry division and the Canadian operations of the Zale Jewelry segment, are consolidated using the local currency as the functional currency. Assets and liabilities are translated at the rates of exchange on the balance sheet date, and revenues and expenses are translated at the monthly average rates of exchange during the period. Resulting translation gains or losses are included in the accompanying consolidated statements of shareholders’ equity as a component of accumulated other comprehensive income (loss) (“AOCI”). Gains or losses resulting from foreign currency transactions are included within the consolidated income statements, whereas translation adjustments and gains or losses related to intercompany loans of a long-term investment nature are recognized as a component of AOCI.
Revenue recognition
The Company recognizes revenue when there is persuasive evidence of an arrangement, delivery of products has occurred or services have been rendered, the sale price is fixed and determinable, and collectability is reasonably assured. The Company’s revenue streams and their respective accounting treatments are discussed below.
Merchandise sale and repairs
Store sales are recognized when the customer receives and pays for the merchandise at the store with cash, in-house customer finance, private label credit card programs or a third party credit card. For online sales shipped to customers, sales are recognized at the estimated time the customer has received the merchandise. Amounts related to shipping and handling that are billed to customers are reflected in sales and the related costs are reflected in cost of sales. Revenues on the sale of merchandise are reported net of anticipated returns and sales tax collected. Returns are estimated based on previous return rates experienced. Any deposits received from a customer for merchandise are deferred and recognized as revenue when the customer receives the merchandise. Revenues derived from providing replacement merchandise on behalf of insurance organizations are recognized upon receipt of the merchandise by the customer. Revenues on repair of merchandise are recognized when the service is complete and the customer collects the merchandise at the store.
Extended service plans and lifetime warranty agreements (“ESP”)
The Company recognizes revenue related to ESP sales in proportion to when the expected costs will be incurred. The deferral period for ESP sales in each division is determined from patterns of claims costs, including estimates of future claims costs expected to be incurred. Management reviews the trends in claims to assess whether changes are required to the revenue and cost recognition rates utilized. A significant change in estimates related to the time period or pattern in which warranty-related costs are expected to be incurred could materially impact revenues. All direct costs associated with the sale of these plans are deferred and amortized in proportion to the revenue recognized and disclosed as either other current assets or other assets in the consolidated balance sheets.
The Sterling Jewelers division sells ESP, subject to certain conditions, to perform repair work over the life of the product. Revenue from the sale of the lifetime ESP is recognized consistent with the estimated pattern of claim costs expected to be incurred by the Company in connection with performing under the ESP obligations. Based on an evaluation of historical claims data, management currently estimates that substantially all claims will be incurred within 17 years of the sale of the warranty contract.
In the second quarter of Fiscal 2016, an operational change related to the Sterling Jewelers division’s ESP associated with ring sizing was made to further align Zale and Sterling ESP policies. As a result, revenue from the sale of these lifetime ESP in the Sterling Jewelers division is deferred and recognized over 17 years for all plans, with approximately 57% of revenue recognized within the first two years for plans sold on or after May 2, 2015 (January 30, 2016: 57%) and 42% of revenue recognized within the first two years for plans sold prior to May 2, 2015 (January 30, 2016: 42%; January 31, 2015: 45%).
The Zale division also sells ESP. Zale Jewelry customers are offered lifetime warranties on certain products that cover sizing and breakage with an option to purchase theft protection for a two-year period. Revenue from the sale of lifetime ESP is deferred and recognized over 10 years, with approximately 69% of revenue recognized within the first two years (January 30, 2016: 69%; January 31, 2015: 69%). Revenues related to the optional theft protection are deferred and recognized in proportion to when the expected claims costs will be incurred over the two-year contract period. Zale Jewelry customers are also offered a two-year watch warranty and a one-year warranty that covers breakage. Piercing Pagoda customers are also offered a one-year warranty that covers breakage. Revenue from the two-year watch warranty and one-year breakage warranty is recognized on a straight-line basis over the respective contract terms.
The Sterling Jewelers division also sells a Jewelry Replacement Plan (“JRP”). The JRP is designed to protect customers from damage or defects of purchased merchandise for a period of three years. If the purchased merchandise is defective or becomes damaged under normal use in that time period, the item will be replaced. JRP revenue is deferred and recognized on a straight-line basis over the period of expected claims costs.
Signet also sells warranty agreements in the capacity of an agent on behalf of a third-party. The commission that Signet receives from the third-party is recognized at the time of sale less an estimate of cancellations based on historical experience.
Sale vouchers
Certain promotional offers award sale vouchers to customers who make purchases above a certain value, which grant a fixed discount on a future purchase within a stated time frame. The Company accounts for such vouchers by allocating the fair value of the voucher between the initial purchase and the future purchase using the relative-selling-price method. Sale vouchers are not sold on a stand-alone basis. The fair value of the voucher is determined based on the average sales transactions in which the vouchers were issued, when the vouchers are expected to be redeemed and the estimated voucher redemption rate. The fair value allocated to the future purchase is recorded as deferred revenue.
Consignment inventory sales
Sales of consignment inventory are accounted for on a gross sales basis as the Company is the primary obligor providing independent advice, guidance and after-sales service to customers. The products sold from consignment inventory are indistinguishable from other products that are sold to customers and are sold on the same terms. Supplier products are selected at the discretion of the Company. The Company is responsible for determining the selling price, physical security of the products and collections of accounts receivable.
Cost of sales and selling, general and administrative expenses
Cost of sales includes merchandise costs net of discounts and allowances, freight, processing and distribution costs of moving merchandise from suppliers to distribution centers and stores inclusive of payroll, inventory shrinkage, store operating and occupancy costs, net bad debts and charges for late payments under the in-house customer finance programs. Store operating and occupancy costs include utilities, rent, real estate taxes, common area maintenance charges and depreciation. Selling, general and administrative expenses include store staff and store administrative costs; centralized administrative expenses, including information technology and credit; advertising and promotional costs and other operating expenses not specifically categorized elsewhere in the consolidated income statements.
Store opening costs
The opening costs of new locations are expensed as incurred.
Advertising and promotional costs
Advertising and promotional costs are expensed within selling, general and administrative expenses. Production costs are expensed at the first communication of the advertisements, while communication expenses are recognized each time the advertisement is communicated. For catalogs and circulars, costs are all expensed at the first date they can be viewed by the customer. Point of sale promotional material is expensed when first displayed in the stores.
In-house customer finance programs
Sterling Jewelers division operates customer in-house finance programs that allow customers to finance merchandise purchases from its stores. Finance charges are recognized in accordance with the contractual agreements. Gross interest earned is recorded as other operating income in the consolidated income statements. See Note 10 for additional discussion of the Company’s other operating income. In addition to interest-bearing accounts, a portion of credit sales are made using interest-free financing for one year or less, subject to certain conditions.
Accrual of interest is suspended when accounts become more than 90 days aged on a recency basis. Upon suspension of the accrual of interest, interest income is subsequently recognized to the extent cash payments are received. Accrual of interest is resumed when receivables are removed from the non-accrual status.
Income taxes
Income taxes are accounted for using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are recognized by applying statutory tax rates in effect in the years in which the differences between the financial reporting and tax filing bases of existing assets and liabilities are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. A valuation allowance is established against deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized, based on management’s evaluation of all available evidence, both positive and negative, including reversals of deferred tax liabilities, projected future taxable income and results of recent operations.
The Company does not recognize tax benefits related to positions taken on certain tax matters unless the position is more likely than not to be sustained upon examination by tax authorities. At any point in time, various tax years are subject to or are in the process of being audited by various taxing authorities. The Company records a reserve for uncertain tax positions, including interest and penalties. To the extent that management’s estimates of settlements change, or the final tax outcome of these matters is different than the amounts recorded, such differences will impact the income tax provision in the period in which such determinations are made.
Cash and cash equivalents
Cash and cash equivalents are comprised of cash on hand, money market deposits and amounts placed with external fund managers with an original maturity of three months or less. Cash and cash equivalents are carried at cost which approximates fair value. In addition, receivables from third-party credit card issuers typically converted to cash within 5 days of the original sales transaction are considered cash equivalents.
Accounts receivable
Accounts receivable under the customer finance programs are presented net of an allowance for uncollectible amounts. This allowance represents management’s estimate of the expected losses in the accounts receivable portfolio as of the balance sheet date, and is calculated using a model that analyzes factors such as delinquency rates and recovery rates. An allowance for amounts 90 days aged and under on a recency basis is established based on historical loss experience and payment performance information. A 100% allowance is made for any amount aged more than 90 days on a recency basis and any amount associated with an account the owner of which has filed for bankruptcy.
Signet’s recency method of aging has been in place and unchanged since the inception of the in-house consumer financing program. The delinquency level is measured by the number of days since the last qualifying payment was received, with the qualifying payment increasing with delinquency level. The average minimum scheduled payment on a customer account is 8%. The minimum payment does not decline as the balance declines.
Inventories
Inventories are primarily held for resale and are valued at the lower of cost or market value. Cost is determined using weighted-average cost for all inventories except for inventories held in the Company’s diamond sourcing operations, where cost is determined using specific identification. Cost includes charges directly related to bringing inventory to its present location and condition. Such charges would include warehousing, security, distribution and certain buying costs. Market value is defined as estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. Inventory reserves are recorded for obsolete, slow moving or defective items and shrinkage. Inventory reserves for obsolete, slow moving or defective items are calculated as the difference between the cost of inventory and its estimated market value based on targeted inventory turn rates, future demand, management strategy and market conditions. Due to the inventory being primarily comprised of precious stones and metals including gold, the age of the inventory has a limited impact on the estimated market value. Inventory reserves for shrinkage are estimated and recorded based on historical physical inventory results, expectations of future inventory losses and current inventory levels. Physical inventories are taken at least once annually for all store locations and distribution centers.
Vendor contributions
Contributions are received from vendors through various programs and arrangements including cooperative advertising. Where vendor contributions related to identifiable promotional events are received, contributions are matched against the costs of promotions. Vendor contributions received as general contributions and not related to specific promotional events are recognized as a reduction of inventory costs.
Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation, amortization and impairment charges. Maintenance and repair costs are expensed as incurred. Depreciation and amortization are recognized on the straight-line method over the estimated useful lives of the related assets as follows:
Buildings
 
30 – 40 years when land is owned or the remaining term of lease, not to exceed 40 years
Leasehold improvements
 
Remaining term of lease, not to exceed 10 years
Furniture and fixtures
 
Ranging from 3 – 10 years
Equipment and software
 
Ranging from 3 – 5 years

Computer software purchased or developed for internal use is stated at cost less accumulated amortization. Signet’s policy provides for the capitalization of external direct costs of materials and services associated with developing or obtaining internal use computer software. In addition, Signet also capitalizes certain payroll and payroll-related costs for employees directly associated with internal use computer projects. Amortization is charged on a straight-line basis over periods from three to five years.
Property, plant and equipment are reviewed for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Potentially impaired assets or asset groups are identified by reviewing the cash flows of individual stores. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset, based on the Company’s internal business plans. If the undiscounted cash flow is less than the asset’s carrying amount, the impairment charge recognized is determined by estimating the fair value of the assets and recording a loss for the amount that the carrying value exceeds the estimated fair value. The Company utilizes historical experience, internal business plans and an appropriate discount rate to estimate the fair value. Property and equipment at stores planned for closure are depreciated over a revised estimate of their useful lives.
Goodwill and intangibles
In a business combination, the Company estimates and records the fair value of identifiable intangible assets and liabilities acquired. The fair value of these intangible assets and liabilities is estimated based on management’s assessment, including determination of appropriate valuation technique and consideration of any third party appraisals, when necessary. Significant estimates in valuing intangible assets and liabilities acquired include, but are not limited to, future expected cash flows associated with the acquired asset or liability, expected life and discount rates. The excess purchase price over the estimated fair values of the assets acquired and liabilities assumed is recognized as goodwill. Goodwill is recorded by the Company’s reporting units based on the acquisitions made by each. Goodwill is evaluated for impairment annually and more frequently if indicators of impairment arise. In evaluating goodwill for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value (including goodwill). If the Company concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, then no further testing is required. However, if the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the two-step goodwill impairment test is performed to identify a potential goodwill impairment and measure the amount of impairment to be recognized, if any. The two-step impairment test involves estimating the fair value of all assets and liabilities of the reporting unit, including the implied fair value of goodwill, through either estimated discounted future cash flows or market-based methodologies.
The annual testing date for goodwill allocated to the Sterling Jewelers reporting unit is the last day of the fourth quarter. The annual testing date for goodwill allocated to the reporting units associated with the Zale division and the Other reporting unit is May 31. There have been no goodwill impairment charges recorded during the fiscal periods presented in the consolidated financial statements as financial results for the reporting units have met or exceeded financial projections developed at the time of the acquisitions. If future economic conditions are different than those projected by management, future impairment charges may be required.
Intangible assets with definite lives are amortized and reviewed for impairment whenever events or circumstances indicate that the carrying amount of the asset may not be recoverable. If the estimated undiscounted future cash flows related to the asset are less than the carrying amount, the Company recognizes an impairment charge equal to the difference between the carrying value and the estimated fair value, usually determined by the estimated discounted future cash flows of the asset.
Intangible assets with indefinite lives are reviewed for impairment each year in the second quarter and may be reviewed more frequently if certain events occur or circumstances change. The Company first performs a qualitative assessment to determine whether it is more likely than not that the indefinite-lived intangible asset is impaired. If the Company determines that it is more likely than not that the fair value of the asset is less than its carrying amount, the Company estimates the fair value, usually determined by the estimated discounted future cash flows of the asset, compares that value with its carrying amount and records an impairment charge, if any. If future economic conditions are different than those projected by management, future impairment charges may be required.
Derivatives and hedge accounting
The Company enters into various types of derivative instruments to mitigate certain risk exposures related to changes in commodity costs and foreign exchange rates. Derivative instruments are recorded in the consolidated balance sheets at fair value, as either assets or liabilities, with an offset to net income or other comprehensive income (“OCI”), depending on whether the derivative qualifies as an effective hedge.
If a derivative instrument meets certain criteria, it may be designated as a cash flow hedge on the date it is entered into. For cash flow hedge transactions, the effective portion of the changes in fair value of the derivative instrument is recognized directly in equity as a component of AOCI and is recognized in the consolidated income statements in the same period(s) and on the same financial statement line in which the hedged item affects net income. Amounts excluded from the effectiveness calculation and any ineffective portions of the change in fair value of the derivatives are recognized immediately in other operating income, net in the consolidated income statements. In addition, gains and losses on derivatives that do not qualify for hedge accounting are recognized immediately in other operating income, net.
In the normal course of business, the Company may terminate cash flow hedges prior to the occurrence of the underlying forecasted transaction. For cash flow hedges terminated prior to the occurrence of the underlying forecasted transaction, management monitors the probability of the associated forecasted cash flow transactions to assess whether any gain or loss recorded in AOCI should be immediately recognized in net income. Cash flows from derivative contracts are included in net cash provided by operating activities.
Employee Benefits
Signet operates a defined benefit pension plan in the UK (the “UK Plan”) which ceased to admit new employees effective April 2004. The UK Plan provides benefits to participating eligible employees. Beginning in Fiscal 2014, a change to the benefit structure was implemented and members’ benefits that accumulate after that date are now based upon career average salaries, whereas previously, all benefits were based on salaries at retirement. The UK Plan’s assets are held by the UK Plan.
The net periodic pension cost of the UK Plan is measured on an actuarial basis using the projected unit credit method and several actuarial assumptions, the most significant of which are the discount rate and the expected long-term rate of return on plan assets. Other material assumptions include rates of participant mortality, the expected long-term rate of compensation and pension increases, and rates of employee attrition. Gains and losses occur when actual experience differs from actuarial assumptions. If such gains or losses exceed 10% of the greater of plan assets or plan liabilities, Signet amortizes those gains or losses over the average remaining service period of the employees. The net periodic pension cost is charged to selling, general and administrative expenses in the consolidated income statements.
The funded status of the UK Plan is recognized on the balance sheet, and is the difference between the fair value of plan assets and the projected benefit obligation measured at the balance sheet date. Gains or losses and prior service costs or credits that arise and are not included as components of net periodic pension cost are recognized, net of tax, in OCI.
Signet also operates a defined contribution plan in the UK and a defined contribution retirement savings plan in the US. Contributions made by Signet to these pension arrangements are charged primarily to selling, general and administrative expenses in the consolidated income statements as incurred.
Borrowing costs
Borrowings include interest-bearing bank loans, accounts receivable securitization program and bank overdrafts. Borrowing costs are capitalized and amortized into interest expense over the contractual term of the related loan.
Share-based compensation
Signet measures share-based compensation cost for awards classified as equity at the grant date based on the estimated fair value of the award and recognizes the cost as an expense on a straight-line basis (net of estimated forfeitures) over the requisite service period of employees. Certain share plans include a condition whereby vesting is contingent on growth exceeding a given target, and therefore awards granted with this condition are considered to be performance-based awards.
Signet estimates fair value using a Black-Scholes model for awards granted under the Omnibus Plan and the binomial valuation model for awards granted under the Share Saving Plans. Deferred tax assets for awards that result in deductions on the income tax returns of subsidiaries are recorded by Signet based on the amount of compensation cost recognized and the subsidiaries’ statutory tax rate in the jurisdiction in which it will receive a deduction. Differences between the deferred tax assets recognized for financial reporting purposes and the actual tax deduction reported on the subsidiaries’ income tax return are recorded in additional paid-in-capital (if the tax deduction exceeds the deferred tax asset) or in the income statement (if the deferred tax asset exceeds the tax deduction and no additional paid-in-capital exists from previous awards).
Share-based compensation is primarily recorded in selling, general and administrative expenses in the consolidated income statements, along with the relevant salary cost.
Contingent liabilities
Provisions for contingent liabilities are recorded for probable losses when management is able to reasonably estimate the loss or range of loss. When it is reasonably possible that a contingent liability may result in a loss or additional loss, the range of the loss is disclosed.
Leases
Signet’s operating leases generally include retail store locations. Certain operating leases include predetermined rent increases, which are charged to the income statement on a straight-line basis over the lease term, including any construction period or other rental holiday. Other amounts paid under operating leases, such as contingent rentals, taxes and common area maintenance, are charged to the income statement as incurred. Premiums paid to acquire short-term leasehold properties and inducements to enter into a lease are recognized on a straight-line basis over the lease term. In addition, certain leases provide for contingent rentals that are not measurable at inception. These contingent rentals are primarily based on a percentage of sales in excess of a predetermined level. These amounts are excluded from minimum rent and are included in the determination of rent expense when it is probable that the expense has been incurred and the amount is reasonably estimable.
Common shares
New shares are recorded in common shares at their par value when issued. The excess of the issue price over the par value is recorded in additional paid-in capital.
Preferred shares
On October 5, 2016, the Company issued 625,000 shares of Series A Convertible Preference Shares (“preferred shares”) for an aggregate price of $625.0 million. The preferred shares were issued under an effective registration statement filed with the SEC. The accounting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 480, “Distinguishing Liabilities from Equity,” requires preferred securities that are redeemable for cash or other assets to be classified outside of permanent equity if redeemable at a fixed or determinable price on a fixed or determinable date, at the option of the holder, or upon the occurrence of an event that is not solely within the control of the issuer. The Company's preferred shares were classified as temporary equity and recorded in the consolidated balance sheet at fair value upon issuance.
Dividends
Dividends on common shares are reflected as a reduction of retained earnings in the period in which they are formally declared by the Board of Directors (the “Board”). In addition, the cumulative dividends on preferred shares, whether or not declared, are reflected as a reduction of retained earnings.
New accounting pronouncements
New accounting pronouncements adopted during the period
Share-based compensation
In June 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-12, “Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” The new guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. ASU No. 2014-12 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015, with early adoption permitted. Signet adopted this guidance during Fiscal 2017. The adoption of this guidance did not have a material impact on the Company’s financial position or results of operations.
Debt issuance costs
In April 2015, the FASB issued ASU No. 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” The new guidance requires that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the debt liability, similar to the presentation of debt discounts. In August 2015, the FASB issued ASU No. 2015-15, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” The new guidance provides clarity that the SEC would not object to the deferral and presentation of debt issuance costs related to line-of-credit arrangements as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement. ASU Nos. 2015-03 and 2015-15 are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015, with early adoption permitted. Signet adopted this guidance during Fiscal 2017. Accordingly, the Company adjusted the consolidated balance sheet as of January 30, 2016 by reducing total assets and debt for amounts classified as deferred debt issuance costs of $9.5 million. Signet continues to present debt issuance costs relating to its revolving credit facility and asset-backed securitization facility as other assets in the consolidated balance sheets.
See Note 20 for additional discussion of the Company's debt issuance costs.
New accounting pronouncements to be adopted in future periods
Credit losses
In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The new guidance requires entities to measure and recognize expected credit losses for financial assets measured at amortized cost basis. The estimate of expected credit losses should consider historical information, current information, and reasonable and supportable forecasts of expected losses over the remaining contractual life that affect collectibility. ASU No. 2016-13 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019, with early adoption permitted. Signet currently expects to adopt this guidance when effective, and continues to assess the impact the adoption of this guidance will have on the Company’s financial position or results of operations.
Revenue recognition
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The new guidance affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU No. 2014-09 provides alternative methods of retrospective adoption. In August 2015, the FASB issued an update (ASU No. 2015-14) that defers the effective date by one year. As a result, ASU No. 2014-09 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted for annual periods beginning after December 15, 2016, including interim periods within that annual period.
There are many aspects of this new accounting guidance that are still being interpreted. The FASB has recently issued updates to certain aspects of the guidance to address implementation issues. In March 2016, the FASB issued additional guidance concerning “Principal versus Agent” considerations (reporting revenue gross versus net); in April 2016, the FASB issued additional guidance on identifying performance obligations and licensing; and in May 2016, the FASB issued additional guidance on collectibility, noncash consideration, presentation of sales tax, and transition. These updates are intended to improve the operability and understandability of the implementation guidance and have the same effective date and transition requirements as ASU No. 2014-09 guidance discussed above. 
Signet is in the process of evaluating contracts with customers under the new guidance and cannot currently estimate the financial statement impact of adoption. The Company expects to progress through its assessment during Fiscal 2018 and will adopt this guidance in the first quarter of our fiscal year ending February 2, 2019. A decision has not yet been made regarding the transition method the Company will use to adopt the new guidance.
Inventory
In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory.” The new guidance states that inventory will be measured at the lower of cost and net realizable value. The ASU defines net realizable value as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. ASU No. 2015-11 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. Signet plans to adopt this guidance in the first quarter of Fiscal 2018. Signet does not expect the adoption of this guidance to have a material impact on the Company’s financial position or results of operations.
Financial instruments
In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The new guidance primarily impacts accounting for equity investments and financial liabilities under the fair value option, as well as, the presentation and disclosure requirements for financial instruments. Under the new guidance, equity investments will generally be measured at fair value, with subsequent changes in fair value recognized in net income. ASU No. 2016-01 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Signet plans to adopt this guidance in the first quarter of our fiscal year ending February 2, 2019. Signet does not expect the adoption of this guidance to have a material impact on the Company’s financial position or results of operations.
Leases
In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” The new guidance primarily impacts lessee accounting by requiring the recognition of a right-of-use asset and a corresponding lease liability on the balance sheet for long-term lease agreements. The lease liability will be equal to the present value of all reasonably certain lease payments. The right-of-use asset will be based on the liability, subject to adjustment for initial direct costs. Lease agreements that are 12 months or less are permitted to be excluded from the balance sheet. In general, leases will be amortized on a straight-line basis with the exception of finance lease agreements. ASU No. 2016-02 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. Signet is currently assessing the timing of adoption which is effective for the first quarter of our fiscal year ending February 1, 2020 and the impact that adopting this guidance will have on the Company’s financial position or results of operations.
Liabilities
In March 2016, the FASB issued ASU No. 2016-04, “Liabilities - Extinguishments of Liabilities (Subtopic 405-20).” The new guidance addresses diversity in practice related to the derecognition of a prepaid stored-value product liability. Liabilities related to the sale of prepaid stored-value products within the scope of this update are financial liabilities. ASU No. 2016-04 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. Signet plans to adopt this guidance in the first quarter of our fiscal year ending February 2, 2019. Signet does not expect the adoption of this guidance to have a material impact on the Company’s financial position or results of operations.
Share-based compensation
In March 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” The new guidance simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU No. 2016-09 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. This guidance is effective for Signet in the first quarter of Fiscal 2018. Signet does not expect the adoption of this guidance to have a material impact on the Company’s financial position or results of operations.
Organization and summary of significant accoutning policies (Tables)
Compensation and benefits costs included within cost of sales and selling, general and administrative expenses were as follows:
(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

The following table summarizes the details of the Company’s cash and cash equivalents:
(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

Property, plant and equipment are stated at cost less accumulated depreciation, amortization and impairment charges. Maintenance and repair costs are expensed as incurred. Depreciation and amortization are recognized on the straight-line method over the estimated useful lives of the related assets as follows:
Buildings
 
30 – 40 years when land is owned or the remaining term of lease, not to exceed 40 years
Leasehold improvements
 
Remaining term of lease, not to exceed 10 years
Furniture and fixtures
 
Ranging from 3 – 10 years
Equipment 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

Acquisitions (Tables)
The following table summarizes the consideration transferred in conjunction with the Acquisition as of May 29, 2014:
(in millions, except per share amounts)
Amount
Cash consideration paid to Zale Corporation shareholders ($21 per share)
$
910.2

Cash consideration paid for settlement of Zale Corporation stock options, restricted share awards and long term incentive plan awards
69.6

Cash paid to extinguish Zale Corporation outstanding debt as of May 29, 2014
478.2

Total consideration transferred
$
1,458.0

Under the acquisition method of accounting, the identifiable assets acquired and liabilities assumed are recorded at acquisition date fair values. During the fourth quarter of Fiscal 2015, the Company finalized the valuation of net assets acquired. The following table summarizes the fair values identified for the assets acquired and liabilities assumed in the Acquisition as of May 29, 2014:
(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


(1) Includes loans and overdrafts, accounts payable, income taxes payable, accrued expenses and other current liabilities.
The following unaudited consolidated pro forma information summarizes the results of operations of the Company as if the Acquisition and related issuance of $1,400.0 million of long-term debt (see Note 20) had occurred as of February 2, 2013. The unaudited consolidated pro forma financial information was prepared in accordance with the acquisition method of accounting under existing standards and is not necessarily indicative of the results of operations that would have occurred if the Acquisition had been completed on the date indicated, nor is it indicative of the future operating results of the Company.
(in millions, except per share amounts)
Fiscal 2015
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

Segment Information (Tables)
(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

(1)    Includes sales of $234.6 million, $248.7 million and $205.5 million generated by Canadian operations in Fiscal 2017, Fiscal 2016 and Fiscal 2015, respectively.
(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

Common Shares, Treasury Shares, Reserves and Dividends (Tables)
The share repurchase activity is outlined in the table below:
 
 
 
Fiscal 2017
 
Fiscal 2016
 
Fiscal 2015
(in millions, expect per share amounts)
Amount
authorized
 
Shares
repurchased
 
Amount
repurchased
 
Average
repurchase
price per
share
 
Shares
repurchased
 
Amount
repurchased
 
Average
repurchase
price per
share
 
Shares
repurchased
 
Amount
repurchased
 
Average
repurchase
price per
share
2016 Program(1)
$
1,375.0

 
10.0

 
$
864.4

 
$
86.40

 
n/a

 
n/a

 
n/a

 
n/a

 
n/a

 
n/a

2013 Program(2)
$
350.0

 
1.2

 
$
135.6

 
$
111.26

 
1.0

 
$
130.0

 
$
127.63

 
0.3

 
$
29.8

 
$
103.37

Total
 
 
11.2

 
$
1,000.0

 
$
89.10

 
1.0

 
$
130.0

 
$
127.63

 
0.3

 
$
29.8

 
$
103.37

(1) 
The 2016 Program had $510.6 million remaining as of January 28, 2017.
(2) 
The 2013 Program was completed in May 2016.
n/a
Not applicable.
 
Fiscal 2017
 
Fiscal 2016
 
Fiscal 2015
(in millions, except per share amounts)
Cash dividend
per share
 
Total
dividends
 
Cash dividend
per share
 
Total
dividends
 
Cash dividend
per share
 
Total
dividends
First quarter
$
0.26

 
$
20.4

 
$
0.22

 
$
17.6

 
$
0.18

 
$
14.4

Second quarter
0.26

 
19.7

 
0.22

 
17.6

 
0.18

 
14.4

Third quarter
0.26

 
18.1

 
0.22

 
17.5

 
0.18

 
14.5

Fourth quarter
0.26

 
17.7

(1) 
0.22

 
17.5

(1) 
0.18

 
14.4

Total
$
1.04

 
$
75.9

 
$
0.88

 
$
70.2

 
$
0.72

 
$
57.7

(1) 
Signet’s dividend policy results in the dividend payment date being a quarter in arrears from the declaration date. As a result, as of January 28, 2017 and January 30, 2016, $17.7 million and $17.5 million, respectively, has been recorded in accrued expenses and other current liabilities in the consolidated balance sheets reflecting the cash dividends declared for the fourth quarter of Fiscal 2017 and Fiscal 2016, respectively.
Earnings Per Common Share (Tables)
The computation of basic EPS is outlined in the table below:
(in millions, except per share amounts)
Fiscal 2017
 
Fiscal 2016
 
Fiscal 2015
Numerator:
 
 
 
 
 
Net income attributable to common shareholders
$
531.3

 
$
467.9

 
$
381.3

Denominator:
 
 
 
 
 
Weighted average common shares outstanding
74.5

 
79.5

 
79.9

EPS – basic
$
7.13

 
$
5.89

 
$
4.77

The computation of diluted EPS is outlined in the table below:
(in millions, except per share amounts)
Fiscal 2017
 
Fiscal 2016
 
Fiscal 2015
Numerator:
 
 
 
 
 
Net income attributable to common shareholders
$
531.3

 
$
467.9

 
$
381.3

Add: Dividends on preferred shares
11.9

 

 

Numerator for diluted EPS
$
543.2

 
$
467.9

 
$
381.3

 
 
 
 
 
 
Denominator:
 
 
 
 
 
Weighted average common shares outstanding
74.5

 
79.5

 
79.9

Plus: Dilutive effect of share awards
0.1

 
0.2

 
0.3

Plus: Dilutive effect of preferred shares
2.1

 

 

Diluted weighted average common shares outstanding
76.7

 
79.7

 
80.2

 
 
 
 
 
 
EPS – diluted
$
7.08

 
$
5.87

 
$
4.75

(in millions)
Fiscal 2017
 
Fiscal 2016
 
Fiscal 2015
Share awards
0.1

 
0.1
 

Accumulated Other Comprehensive Income (Loss) (Tables)
The following tables present the changes in AOCI by component and the reclassifications out of AOCI, net of tax:
 
 
 
 
 
 
 
Pension plan
 
 
(in millions)
Foreign
currency
translation
 
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
)
 The amounts reclassified from AOCI were as follows:
 
 
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.
Income Taxes (Tables)
(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

As the statutory rate of corporation tax in Bermuda is 0%, the differences between the US federal income tax rate and the effective tax rates for Signet have been presented below:
 
Fiscal 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
 %
Deferred tax assets (liabilities) consisted of the following:
 
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
)
The following table summarizes the activity related to the Company’s unrecognized tax benefits for US federal, US state and non-US tax jurisdictions:
(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

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

Accounts Receivable, Net (Tables)
(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

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

 
 
 
 
 
 
The credit quality indicator and age analysis of Sterling Jewelers customer in-house finance receivables are shown below:
   
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
%
Inventories (Tables)
The following table summarizes the details of the Company’s inventory:
(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

Inventory reserves
(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

(1) Includes the impact of foreign exchange translation between opening and closing balance sheet dates.
Property, Plant and Equipment, Net (Tables)
Schedule of property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation, amortization and impairment charges. Maintenance and repair costs are expensed as incurred. Depreciation and amortization are recognized on the straight-line method over the estimated useful lives of the related assets as follows:
Buildings
 
30 – 40 years when land is owned or the remaining term of lease, not to exceed 40 years
Leasehold improvements
 
Remaining term of lease, not to exceed 10 years
Furniture and fixtures
 
Ranging from 3 – 10 years
Equipment 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

Goodwill and Intangibles (Tables)
The following table summarizes the Company’s goodwill by reportable segment:
(in millions)
Sterling
Jewelers
 
Zale
Jewelry
 
Piercing
Pagoda
 
UK Jewelry
 
Other
 
Total
Balance at 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

The following table provides additional detail regarding the composition of intangible assets and liabilities:

 
 
 
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
)
Expected future amortization expense for intangible assets recorded at January 28, 2017 follows:
(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

Expected future amortization for intangible liabilities recorded at January 28, 2017 follows:
(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
)
Other Assets (Tables)
Schedule of Other Assets
(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.
Investments (Tables)
Schedule of Available-for-Sale Securities
All investments are classified as available-for-sale and include the following:
 
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

Investments in debt securities outstanding as of January 28, 2017 mature as follows:
(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

Derivatives (Tables)
The following table summarizes the fair value and presentation of derivative instruments in the consolidated balance sheets:
 
Fair value of derivative assets
(in millions)
Balance sheet location
 
January 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
)
The following table summarizes the pre-tax gains (losses) recorded in AOCI for derivatives designated in cash flow hedging relationships:
(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
)
The following tables summarize the effect of derivative instruments designated as cash flow hedges in OCI and the consolidated income statements:
Foreign currency contracts
(in millions)
Income statement caption
 
Fiscal 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

Commodity contracts
(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
)

Interest rate swaps
(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
)
The following table presents the effects of the Company’s derivatives instruments not designated as cash flow hedges in the consolidated income statements:
 
Income statement caption
 
Amount of 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
)
Fair Value Measurement (Tables)
The methods Signet uses to determine fair value on an instrument-specific basis are detailed below:
 
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
)
The carrying amount and fair value of outstanding debt at January 28, 2017 and January 30, 2016 were as follows:
 
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

Pension Plans (Tables)
The following tables provide information concerning the UK Plan as of and for the fiscal years ended January 28, 2017 and January 30, 2016:
(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

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

The components of net periodic pension benefit (cost) and other amounts recognized in OCI for the UK Plan are as follows:
(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
%
The value and classification of these assets are as follows:
 
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

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

The table below sets forth changes in the fair value of the Level 3 investment assets in Fiscal 2017 and Fiscal 2016:
(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

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

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

Accrued Expenses and Other Current Liabilities (Tables)
(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

The sales returns reserve, included in accrued expenses, is as follows:
(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

(1)     Net adjustment relates to sales returns previously provided for, changes in estimate and the impact of foreign exchange translation.
The warranty reserve for diamond and gemstone guarantee, included in accrued expenses and other current liabilities and other non-current liabilities, is as follows:
(in millions)
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.
Deferred Revenue (Tables)
Summary of Deferred Revenue
Deferred revenue is comprised primarily of ESP and voucher promotions and other as follows:
(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

ESP deferred revenue
(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

Other Liabilities-Non-Current (Tables)
(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.
Share-Based Compensation (Tables)
Share-based compensation expense and the associated tax benefits recognized in the consolidated income statements are as follows:
(in millions)
Fiscal 2017
 
Fiscal 2016
 
Fiscal 2015
Share-based compensation expense
$
8.0

 
$
16.4

 
$
12.1

Income tax benefit
$
(2.8
)
 
$
(5.9
)
 
$
(4.3
)
As of January 28, 2017, unrecognized compensation cost related to unvested awards granted under share-based compensation plans is as follows:
 
Unrecognized Compensation Cost
 
Weighted average period
 
(in millions)
 
 
Omnibus Plan
$
10.3

 
1.8 years
Share Saving Plans
5.0

 
1.8 years
Total
$
15.3

 

The significant assumptions utilized to estimate the weighted-average fair value of awards granted under the Omnibus Plan are as follows:
 
Omnibus Plan
 
Fiscal 2017
 
Fiscal 2016
 
Fiscal 2015
Share price
$
109.03

 
$
136.37

 
$
104.57

Risk free interest rate
1.0
%
 
0.8
%
 
0.8
%
Expected term
2.8 years

 
2.9 years

 
2.7 years

Expected volatility
28.5
%
 
25.4
%
 
32.1
%
Dividend yield
1.1
%
 
0.7
%
 
0.9
%
Fair value
$
106.48

 
$
134.46

 
$
103.12

The Fiscal 2017 activity for awards granted under the Omnibus Plan is as follows:
 
Omnibus Plans
(in millions, except per share amounts)
No. of
shares
 
Weighted
average
grant date
fair value
 
Weighted
average
remaining
contractual
life
 
Intrinsic
value
(1)
Outstanding at January 30, 2016
0.6

 
$
101.88

 
1.1 years
 
$
69.8

Fiscal 2017 activity:
 
 
 
 
 
 
 
Granted
0.3

 
106.48

 
 
 
 
Vested
(0.1
)
 
84.55

 
 
 
 
Lapsed
(0.1
)
 
73.56

 
 
 
 
Outstanding at January 28, 2017
0.7

 
$
111.98

 
1.3 years
 
$
53.0

(1) 
Intrinsic value for outstanding restricted stock and RSUs is based on the fair market value of Signet’s common stock on the last business day of the fiscal year.
The following table summarizes additional information about awards granted under the Omnibus Plan:
(in millions)
Fiscal 2017
 
Fiscal 2016
 
Fiscal 2015
Total intrinsic value of awards vested
$
13.6

 
$
22.2

 
$
43.9

The following table summarizes additional information about awards granted under the Executive Plans:
(in millions)
Fiscal 2017
 
Fiscal 2016
 
Fiscal 2015
Total intrinsic value of options exercised
$
0.6

 
$
3.4

 
$
2.9

Cash received from share options exercised
$
0.7

 
$
1.0

 
$
1.8

The significant assumptions utilized to estimate the weighted-average fair value of awards granted under the Share Saving Plans are as follows:
 
Share Saving Plans
 
Fiscal 2017
 
Fiscal 2016
 
Fiscal 2015
Share price
$
84.37

 
$
139.18

 
$
114.93

Exercise price
$
67.24

 
$
114.67

 
$
96.67

Risk free interest rate
0.6
%
 
0.7
%
 
0.9
%
Expected term
2.7 years

 
2.6 years

 
2.8 years

Expected volatility
31.3
%
 
27.1
%
 
27.6
%
Dividend yield
1.7
%
 
0.8
%
 
0.8
%
Fair value
$
22.82

 
$
34.76

 
$
28.76

The Fiscal 2017 activity for awards granted under the Share Saving Plans is as follows:
 
Share Saving Plans
(in millions, except per share amounts)
No. of
shares
 
Weighted
average
exercise
price
 
Weighted
average
remaining
contractual
life
 
Intrinsic
value
(1)
Outstanding at January 30, 2016
0.2

 
$
94.07

 
1.9 years
 
$
4.9

Fiscal 2017 activity:
 
 
 
 
 
 
 
Granted
0.2

 
67.24

 
 
 
 
Exercised

 
48.78

 
 
 
 
Lapsed
(0.1
)
 
101.34

 
 
 
 
Outstanding at January 28, 2017
0.3

 
$
74.30

 
2.0 years
 
$
3.0

Exercisable at January 30, 2016

 
$

 
 
 
$

Exercisable at January 28, 2017

 
$

 
 
 
$

(1)    Intrinsic value for outstanding awards is based on the fair market value of Signet’s common stock on the last business day of the fiscal year.
The following table summarizes additional information about awards granted under the Share Saving Plans:
(in millions, except per share amounts)
Fiscal 2017
 
Fiscal 2016
 
Fiscal 2015
Weighted average grant date fair value per share of awards granted
$
22.82

 
$
34.76

 
$
28.76

Total intrinsic value of options exercised
$
1.5

 
$
6.4

 
$
11.0

Cash received from share options exercised
$
1.4

 
$
4.0

 
$
4.3

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

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

Condensed Consolidating Financial Information (Tables)
Condensed Consolidating Income Statement
For the 52 week period ended January 28, 2017
(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

Condensed Consolidating Income Statement
For the 52 week period ended January 30, 2016
(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




Condensed Consolidating Income Statement
For the 52 week period ended January 31, 2015
(in millions)
Signet
Jewelers
Limited
 
Signet UK
Finance plc
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Sales
$

 
$

 
$
5,671.4

 
$
64.9

 
$

 
$
5,736.3

Cost of sales

 

 
(3,647.0
)
 
(15.1
)
 

 
(3,662.1
)
Gross margin

 

 
2,024.4

 
49.8

 

 
2,074.2

Selling, general and administrative expenses
(2.5
)
 

 
(1,683.6
)
 
(26.8
)
 

 
(1,712.9
)
Other operating income, net

 

 
220.8

 
(5.5
)
 

 
215.3

Operating (loss) income
(2.5
)
 

 
561.6

 
17.5

 

 
576.6

Intra-entity interest income (expense)

 
13.2

 
(129.6
)
 
116.4

 

 

Interest expense, net

 
(13.9
)
 
(14.8
)
 
(7.3
)
 

 
(36.0
)
(Loss) income before income taxes
(2.5
)
 
(0.7
)
 
417.2

 
126.6

 

 
540.6

Income taxes

 
0.1

 
(159.5
)
 
0.1

 

 
(159.3
)
Equity in income of subsidiaries
383.8

 

 
579.8

 
565.4

 
(1,529.0
)
 

Net income (loss)
381.3

 
(0.6
)
 
837.5

 
692.1

 
(1,529.0
)
 
381.3

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

Condensed Consolidating Statement of Comprehensive Income
For the 52 week period ended January 28, 2017
(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




Condensed Consolidating Statement of Comprehensive Income
For the 52 week period ended January 30, 2016
(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




Condensed Consolidating Statement of Comprehensive Income
For the 52 week period ended January 31, 2015
(in millions)
Signet
Jewelers
Limited
 
Signet UK
Finance plc
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net income (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

Condensed Consolidating Balance Sheet
January 28, 2017
(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

Condensed Consolidating Balance Sheet
January 30, 2016
(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

Condensed Consolidating Statement of Cash Flows
For the 52 week period ended January 30, 2016
(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

Condensed Consolidating Statement of Cash Flows
For the 52 week period ended January 31, 2015
(in millions)
Signet
Jewelers
Limited
 
Signet UK
Finance plc
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net cash provided by (used in) operating activities
$
150.5

 
$
2.2

 
$
166.6

 
$
116.7

 
$
(153.0
)
 
$
283.0

Investing activities


 

 


 


 


 


Purchase of property, plant and equipment

 

 
(219.8
)
 
(0.4
)
 

 
(220.2
)
Investment in subsidiaries

 

 
(18.9
)
 
(10.0
)
 
28.9

 

Purchase of available-for-sale securities

 

 

 
(5.7
)
 

 
(5.7
)
Proceeds from available-for-sale securities

 

 

 
2.5

 

 
2.5

Acquisition of Zale Corporation, net of cash acquired

 

 
(1,431.1
)
 
1.9

 

 
(1,429.2
)
Net cash (used in) provided by investing activities

 

 
(1,669.8
)
 
(11.7
)
 
28.9

 
(1,652.6
)
Financing activities


 

 


 


 


 


Dividends paid 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



Quarterly Financial Information - Unaudited (Tables)
Quarterly Financial Information
 
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

Organization and summary of significant accoutning policies - Narrative (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 0 Months Ended
Jan. 30, 2016
Oct. 31, 2015
Aug. 1, 2015
May 2, 2015
Jan. 28, 2017
Segment
Jan. 30, 2016
Jan. 31, 2015
Jan. 28, 2017
Minimum
Jan. 28, 2017
Maximum
Jan. 28, 2017
Sterling Jewelers
Minimum
Jan. 28, 2017
Sterling Jewelers
Maximum
Jan. 28, 2017
Theft Protection
Zale
Jan. 30, 2016
Lifetime Warranty
Sterling Jewelers
Jan. 28, 2017
Lifetime Warranty
Sterling Jewelers
Jan. 30, 2016
Lifetime Warranty
Sterling Jewelers
Jan. 31, 2015
Lifetime Warranty
Sterling Jewelers
Jan. 28, 2017
Lifetime Warranty
Zale
Jan. 30, 2016
Lifetime Warranty
Zale
Jan. 31, 2015
Lifetime Warranty
Zale
Jan. 28, 2017
Watch Warranty
Zale
Jan. 28, 2017
Breakage Warranty
Zale
Jan. 28, 2017
Jewelry Replacement Plan
Sterling Jewelers
Oct. 5, 2016
Series A Redeemable Convertible Preferred Stock
Oct. 5, 2016
Series A Redeemable Convertible Preferred Stock
Organization and critical accounting policies [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of reportable segments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percent of annual sales
40.00% 
20.00% 
20.00% 
20.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income expected in fourth quarter
 
 
 
 
 
 
 
45.00% 
55.00% 
40.00% 
45.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue Recognition [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred revenue recognition period of extended service plan sales
 
 
 
 
 
 
 
 
 
 
 
 
2 years 
17 years 0 months 0 days 
 
 
 
 
 
 
 
3 years 
 
 
Revenue recognized percentage In relation to costs expected to be incurred within first two years
 
 
 
 
 
 
 
 
 
 
 
 
57.00% 
57.00% 
42.00% 
45.00% 
69.00% 
69.00% 
69.00% 
 
 
 
 
 
Product warranty
 
 
 
 
 
 
 
 
 
 
 
2 years 
 
 
 
 
10 years 
 
 
2 years 
1 year 
 
 
 
Advertising and promotional costs [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advertising expense
 
 
 
 
$ 380.6 
$ 384.2 
$ 333.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
In-house customer finance programs [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-free financing period
 
 
 
 
1 year 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrued interest suspension period
 
 
 
 
90 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts Receivable [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss allowance, maturity period
 
 
 
 
90 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage allowance on losses
 
 
 
 
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average minimum payment for customer finance programs
 
 
 
 
8.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property, Plant and Equipment [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period over which amortization is charged for capitalized payroll for internal use computer projects
 
 
 
 
 
 
 
3 years 
5 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Temporary Equity [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Redeemable convertible preferred stock, shares issued
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
625,000 
Preferred stock, purchase price
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 625.0 
 
Organization and summary of significant accoutning policies - Compensation and benefits (Details) (Selling, general and administrative expenses, USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Selling, general and administrative expenses
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
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 
Organization and summary of significant accoutning policies - Cash and Equivalents (Details) (USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Feb. 1, 2014
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and cash equivalents
$ 98.7 
$ 137.7 
$ 193.6 
$ 247.6 
Cash and cash equivalents held in money markets and other accounts
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and cash equivalents
65.6 
100.4 
 
 
Cash equivalents from third-party credit card issuers
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and cash equivalents
31.1 
35.4 
 
 
Cash on hand
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and cash equivalents
$ 2.0 
$ 1.9 
 
 
Organization and summary of significant accoutning policies - Property Plant and Equipment (Details)
12 Months Ended
Jan. 28, 2017
Minimum |
Buildings
 
Property, Plant and Equipment [Line Items]
 
Useful life
30 years 
Minimum |
Furniture and fixtures
 
Property, Plant and Equipment [Line Items]
 
Useful life
3 years 
Minimum |
Equipment, including software
 
Property, Plant and Equipment [Line Items]
 
Useful life
3 years 
Maximum |
Buildings
 
Property, Plant and Equipment [Line Items]
 
Useful life
40 years 
Maximum |
Leasehold Improvements
 
Property, Plant and Equipment [Line Items]
 
Useful life
10 years 
Maximum |
Furniture and fixtures
 
Property, Plant and Equipment [Line Items]
 
Useful life
10 years 
Maximum |
Equipment, including software
 
Property, Plant and Equipment [Line Items]
 
Useful life
5 years 
New Accounting Pronouncements - Debt issuance costs (Details) (Accounting Standards Update 2015-03, USD $)
In Millions, unless otherwise specified
Jan. 30, 2016
Assets, Total
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
Debt issuance costs, net
$ (9.5)
Long-term Debt
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
Debt issuance costs, net
$ 9.5 
Acquisitions - Additional Information (Detail) (USD $)
0 Months Ended 12 Months Ended
Aug. 12, 2015
May 29, 2014
Jan. 31, 2015
May 29, 2014
364-Day Unsecured Bridge Facility |
Bridge Loan
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
Debt issuance cost
 
 
$ 4,000,000 
 
Zale Corporation
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
Percentage of outstanding shares acquired
 
 
 
100.00% 
Business combination, price per share
$ 21.00 
$ 21 
 
 
Total consideration transferred
 
1,458,000,000 
 
 
Cash paid to extinguish Zale Corporation outstanding debt as of May 29, 2014
 
478,200,000 
 
 
Face amount
 
 
 
1,400,000,000 
Deferred revenue recognition period of extended service plan sales
 
 
10 years 
 
Initial accounting incomplete, adjustment, financial liabilities
 
 
1,400,000,000 
 
Acquisition related costs
 
 
58,000,000 
 
Zale Corporation |
Senior Unsecured Notes Due in 2024 |
Senior Notes
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
Face amount
 
400,000,000 
 
400,000,000 
Zale Corporation |
Two-Year Revolving Asset-Backed Variable Funding Notes |
Revolving Credit Facility
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
Face amount
 
 
 
600,000,000 
Debt instrument, maturity period
 
2 years 
 
 
Zale Corporation |
Five-Year Unsecured Term Loan Facility |
Credit Facility
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
Face amount
 
 
 
$ 400,000,000 
Debt instrument, maturity period
 
5 years 
 
 
Acquisitions - Acquisition Consideration (Details) (Zale, USD $)
In Millions, unless otherwise specified
0 Months Ended
May 29, 2014
Zale
 
Business Acquisition [Line Items]
 
Cash consideration paid to Zale Corporation shareholders ($21 per share)
$ 910.2 
Cash consideration paid for settlement of Zale Corporation stock options, restricted share awards and long term incentive plan awards
69.6 
Cash paid to extinguish Zale Corporation outstanding debt as of May 29, 2014
478.2 
Total consideration transferred
$ 1,458.0 
Acquisitions - Assets Acquired and Liabilities Assumed (Details) (USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
May 29, 2014
Zale
Business Acquisition [Line Items]
 
 
 
 
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
 
 
 
(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
517.6 
515.5 
519.2 
499.4 
Total consideration transferred
 
 
 
$ 1,458.0 
Acquisitions - Pro Forma Results of Operations (Details) (Zale, USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Zale
 
Business Acquisition [Line Items]
 
Pro forma sales
$ 6,325.1 
Pro forma net income
$ 462.1 
Pro forma earnings per share – basic (in dollars per share)
$ 5.78 
Pro forma earnings per share – diluted (in dollars per share)
$ 5.76 
Segment Information - Additional Information (Details)
12 Months Ended
Jan. 28, 2017
Segment
state
Segment Reporting [Abstract]
 
Number of reportable segments
Number of states in which entity operates
50 
Segment Information - Summary of Activity by Segment (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Jan. 28, 2017
Oct. 29, 2016
Jul. 30, 2016
Apr. 30, 2016
Jan. 30, 2016
Oct. 31, 2015
Aug. 1, 2015
May 2, 2015
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
$ 2,269.9 
$ 1,186.2 
$ 1,373.4 
$ 1,578.9 
$ 2,392.6 
$ 1,216.4 
$ 1,410.6 
$ 1,530.6 
$ 6,408.4 
$ 6,550.2 
$ 5,736.3 
Operating income (loss)
 
 
 
 
 
 
 
 
763.2 
703.7 
576.6 
Depreciation and amortization
 
 
 
 
 
 
 
 
188.8 
175.3 
149.7 
Capital additions
 
 
 
 
 
 
 
 
278.0 
226.5 
220.2 
Total assets
6,597.8 
 
 
 
6,464.9 
 
 
 
6,597.8 
6,464.9 
 
Total long-lived assets
1,757.5 
 
 
 
1,670.9 
 
 
 
1,757.5 
1,670.9 
 
Total liabilities
3,495.7 
 
 
 
3,404.2 
 
 
 
3,495.7 
3,404.2 
 
Sterling Jewelers
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
3,930.4 
3,988.7 
3,765.0 
Operating income (loss)
 
 
 
 
 
 
 
 
715.8 
718.6 
624.3 
Depreciation and amortization
 
 
 
 
 
 
 
 
112.7 
106.2 
95.7 
Capital additions
 
 
 
 
 
 
 
 
154.5 
141.6 
157.6 
Total assets
4,015.4 
 
 
 
3,788.0 
 
 
 
4,015.4 
3,788.0 
 
Total long-lived assets
567.3 
 
 
 
519.7 
 
 
 
567.3 
519.7 
 
Total liabilities
2,061.4 
 
 
 
1,982.2 
 
 
 
2,061.4 
1,982.2 
 
Zale Jewelry
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
1,549.7 
1,568.2 
1,068.7 
Operating income (loss)
 
 
 
 
 
 
 
 
62.2 
44.3 
(1.9)
Depreciation and amortization
 
 
 
 
 
 
 
 
49.1 
44.8 
29.4 
Capital additions
 
 
 
 
 
 
 
 
85.0 
47.7 
35.1 
Impact of purchase accounting adjustments on operating income loss
 
 
 
 
 
 
 
 
(16.4)
(23.1)
35.1 
Total assets
1,940.7 
 
 
 
1,955.1 
 
 
 
1,940.7 
1,955.1 
 
Total long-lived assets
1,050.1 
 
 
 
1,013.7 
 
 
 
1,050.1 
1,013.7 
 
Total liabilities
524.3 
 
 
 
530.3 
 
 
 
524.3 
530.3 
 
Zale Jewelry |
Canada
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
234.6 
248.7 
205.5 
Piercing Pagoda
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
263.1 
243.2 
146.9 
Operating income (loss)
 
 
 
 
 
 
 
 
11.2 
7.8 
(6.3)
Depreciation and amortization
 
 
 
 
 
 
 
 
4.6 
3.3 
1.6 
Capital additions
 
 
 
 
 
 
 
 
12.7 
10.2 
6.9 
Impact of purchase accounting adjustments on operating income loss
 
 
 
 
 
 
 
 
(0.4)
(3.3)
10.8 
Total assets
141.6 
 
 
 
141.8 
 
 
 
141.6 
141.8 
 
Total long-lived assets
61.4 
 
 
 
53.3 
 
 
 
61.4 
53.3 
 
Total liabilities
28.2 
 
 
 
28.5 
 
 
 
28.2 
28.5 
 
UK Jewelry
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
647.1 
737.6 
743.6 
Operating income (loss)
 
 
 
 
 
 
 
 
45.6 
61.5 
52.2 
Depreciation and amortization
 
 
 
 
 
 
 
 
21.6 
20.1 
22.1 
Capital additions
 
 
 
 
 
 
 
 
25.7 
26.4 
20.2 
Total assets
372.6 
 
 
 
427.8 
 
 
 
372.6 
427.8 
 
Total long-lived assets
70.7 
 
 
 
75.3 
 
 
 
70.7 
75.3 
 
Total liabilities
110.6 
 
 
 
132.0 
 
 
 
110.6 
132.0 
 
Other
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
18.1 
12.5 
12.1 
Operating income (loss)
 
 
 
 
 
 
 
 
(71.6)
(128.5)
(91.7)
Depreciation and amortization
 
 
 
 
 
 
 
 
0.8 
0.9 
0.9 
Capital additions
 
 
 
 
 
 
 
 
0.1 
0.6 
0.4 
Acquisition integration and severance related costs
 
 
 
 
 
 
 
 
28.4 
78.9 
59.8 
Total assets
127.5 
 
 
 
152.2 
 
 
 
127.5 
152.2 
 
Total long-lived assets
8.0 
 
 
 
8.9 
 
 
 
8.0 
8.9 
 
Total liabilities
771.2 
 
 
 
731.2 
 
 
 
771.2 
731.2 
 
Diamonds and diamond jewelry
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
3,853.7 
3,918.1 
3,450.6 
Gold, silver jewelry, other products and services
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
2,090.0 
2,116.4 
1,784.5 
Watches
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
$ 464.7 
$ 515.7 
$ 501.2 
Redeemable Preferred Shares - Narrative (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended 0 Months Ended 12 Months Ended 12 Months Ended 0 Months Ended
Jan. 28, 2017
Oct. 5, 2016
Series A Redeemable Convertible Preferred Stock
Jan. 28, 2017
Series A Redeemable Convertible Preferred Stock
Oct. 5, 2016
Series A Redeemable Convertible Preferred Stock
Jan. 28, 2017
Maximum
Series A Redeemable Convertible Preferred Stock
Oct. 5, 2018
Scenario, Forecast
Series A Redeemable Convertible Preferred Stock
Temporary Equity [Line Items]
 
 
 
 
 
 
Redeemable convertible preferred stock, shares issued
 
 
 
625,000 
 
 
Preferred stock, purchase price
 
$ 625.0 
 
 
 
 
Shares issued, price per share
 
 
 
$ 1,000 
 
 
Payments of stock issuance costs
 
13.7 
 
 
 
 
Dividends on redeemable convertible preferred shares
11.9 
 
0.6 
 
 
 
Liquidation preference
 
 
$ 636.3 
 
 
 
Preferred stock, dividend rate, percentage
 
 
5.00% 
 
 
 
Preferred dividends, percentage of average quarterly cash dividends (not more than)
 
 
 
 
130.00% 
 
Conversion ratio
 
 
10.6529 
 
 
 
Conversion price
 
 
$ 93.8712 
 
 
 
Conversion of stock, shares issued
 
 
6,700,000 
 
 
 
Percentage exceeding applicable conversion price
 
 
 
 
 
175.00% 
Threshold period at which shares can be converted
 
 
 
 
 
20 days 
Percentage of cash equal to the stated value
 
 
101.00% 
 
 
 
Common Shares, Treasury Shares, Reserves and Dividends - Additional Information (Detail) (USD $)
3 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 1 Months Ended 12 Months Ended 12 Months Ended
Jan. 28, 2017
Oct. 29, 2016
Jul. 30, 2016
Apr. 30, 2016
Jan. 30, 2016
Oct. 31, 2015
Aug. 1, 2015
May 2, 2015
Jan. 31, 2015
Nov. 1, 2014
Aug. 2, 2014
May 3, 2014
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Mar. 9, 2017
Subsequent Event
Jan. 28, 2017
2016 Program
Aug. 31, 2016
2016 Program
Feb. 29, 2016
2016 Program
Oct. 5, 2016
Accelerated Share Repurchase Program
Dec. 31, 2016
Accelerated Share Repurchase Program
Jan. 28, 2017
Accelerated Share Repurchase Program
Oct. 5, 2016
Accelerated Share Repurchase Program
Jan. 28, 2017
Common Stock
Jan. 28, 2017
Series A Redeemable Convertible Preferred Stock
Class of Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common shares, par value (usd per share)
$ 0.18 
 
 
 
$ 0.18 
 
 
 
 
 
 
 
$ 0.18 
$ 0.18 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from issuance of common shares
 
 
 
 
 
 
 
 
 
 
 
 
$ 2,100,000 
$ 5,000,000 
$ 6,100,000 
 
 
 
 
 
 
 
 
 
 
Amount authorized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,375,000,000 
625,000,000 
750,000,000 
 
 
 
 
 
 
Accelerated share repurchases, payment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
525,000,000 
 
 
Shares repurchased (shares)
 
 
 
 
 
 
 
 
 
 
 
 
11,200,000 
1,000,000 
300,000 
 
10,004,333 
 
 
4,700,000 
1,300,000 
6,000,000 
 
5,200,000 
 
Amount repurchased
 
 
 
 
 
 
 
 
 
 
 
 
1,000,000,000 
130,000,000 
29,800,000 
 
864,400,000 
 
 
367,500,000 
 
 
 
475,000,000 
 
Average repurchase price per share (usd per share)
 
 
 
 
 
 
 
 
 
 
 
 
$ 89.10 
$ 127.63 
$ 103.37 
 
$ 86.40 
 
 
 
 
$ 87.01 
 
 
 
Treasury stock held (shares)
18,900,000 
 
 
 
7,800,000 
 
 
 
 
 
 
 
18,900,000 
7,800,000 
 
 
 
 
 
 
 
 
 
 
 
Treasury stock reissued
 
 
 
 
 
 
 
 
 
 
 
 
100,000 
200,000 
 
 
 
 
 
 
 
 
 
 
 
Dividends declared date
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mar. 09, 2017 
 
 
 
 
 
 
 
 
 
Dividends declared per common share (usd per share)
$ 0.26 
$ 0.26 
$ 0.26 
$ 0.26 
$ 0.22 
$ 0.22 
$ 0.22 
$ 0.22 
$ 0.18 
$ 0.18 
$ 0.18 
$ 0.18 
$ 1.04 
$ 0.88 
$ 0.72 
$ 0.31 
 
 
 
 
 
 
 
 
 
Dividends payable date
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
May 31, 2017 
 
 
 
 
 
 
 
 
 
Dividends payable, date of record
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Apr. 28, 2017 
 
 
 
 
 
 
 
 
 
Dividends on preferred shares
17,700,000 
 
 
 
17,500,000 
 
 
 
 
 
 
 
17,700,000 
17,500,000 
 
 
 
 
 
 
 
 
 
 
11,300,000 
Cumulative undeclared dividends
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends on redeemable convertible preferred shares
 
 
 
 
 
 
 
 
 
 
 
 
$ 11,900,000 
 
 
 
 
 
 
 
 
 
 
 
$ 600,000 
Common Shares, Treasury Shares, Reserves and Dividends - Share Repurchase (Details) (USD $)
12 Months Ended 12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Jan. 28, 2017
2016 Program
Aug. 31, 2016
2016 Program
Feb. 29, 2016
2016 Program
Jan. 28, 2017
2013 Program
Jan. 30, 2016
2013 Program
Jan. 31, 2015
2013 Program
Class of Stock [Line Items]
 
 
 
 
 
 
 
 
 
Amount authorized
 
 
 
$ 1,375,000,000 
$ 625,000,000 
$ 750,000,000 
$ 350,000,000.0 
 
 
Shares repurchased (shares)
11,200,000 
1,000,000 
300,000 
10,004,333 
 
 
1,218,621 
1,018,568 
288,393 
Amount repurchased
1,000,000,000 
130,000,000 
29,800,000 
864,400,000 
 
 
135,600,000 
130,000,000 
29,800,000 
Average repurchase price per share (usd per share)
$ 89.10 
$ 127.63 
$ 103.37 
$ 86.40 
 
 
$ 111.26 
$ 127.63 
$ 103.37 
Remaining authorized repurchase amount
 
 
 
 
 
 
$ 510,600,000 
 
 
Common Shares, Treasury Shares, Reserves and Dividends - Dividends (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Jan. 28, 2017
Oct. 29, 2016
Jul. 30, 2016
Apr. 30, 2016
Jan. 30, 2016
Oct. 31, 2015
Aug. 1, 2015
May 2, 2015
Jan. 31, 2015
Nov. 1, 2014
Aug. 2, 2014
May 3, 2014
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Equity [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends declared per common share (usd per share)
$ 0.26 
$ 0.26 
$ 0.26 
$ 0.26 
$ 0.22 
$ 0.22 
$ 0.22 
$ 0.22 
$ 0.18 
$ 0.18 
$ 0.18 
$ 0.18 
$ 1.04 
$ 0.88 
$ 0.72 
Cash dividend per share (usd per share)
 
 
 
 
 
 
 
 
 
 
 
 
$ 1.04 
$ 0.88 
$ 0.72 
Total dividends
$ 17.7 
$ 18.1 
$ 19.7 
$ 20.4 
$ 17.5 
$ 17.5 
$ 17.6 
$ 17.6 
$ 14.4 
$ 14.5 
$ 14.4 
$ 14.4 
$ 75.9 
$ 70.2 
$ 57.7 
Dividends on preferred shares
$ 17.7 
 
 
 
$ 17.5 
 
 
 
 
 
 
 
$ 17.7 
$ 17.5 
 
Earnings Per Common Share - Schedule of Earnings per Share (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Jan. 28, 2017
Oct. 29, 2016
Jul. 30, 2016
Apr. 30, 2016
Jan. 30, 2016
Oct. 31, 2015
Aug. 1, 2015
May 2, 2015
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Equity [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to common shareholders
 
 
 
 
 
 
 
 
$ 531.3 
$ 467.9 
$ 381.3 
Add: Dividends on preferred shares
 
 
 
 
 
 
 
 
(11.9)
Net income
$ 287.8 
$ 14.8 
$ 81.9 
$ 146.8 
$ 271.9 
$ 15.0 
$ 62.2 
$ 118.8 
$ 543.2 
$ 467.9 
$ 381.3 
Basic weighted average number of common shares outstanding
 
 
 
 
 
 
 
 
74.5 
79.5 
79.9 
Dilutive effect of share awards (in shares)
 
 
 
 
 
 
 
 
0.1 
0.2 
0.3 
Dilutive effect of preferred shares (in shares)
 
 
 
 
 
 
 
 
2.1 
Diluted weighted average number of common shares outstanding
 
 
 
 
 
 
 
 
76.7 
79.7 
80.2 
Earnings per share - basic (usd per share)
$ 4.17 
$ 0.20 
$ 1.06 
$ 1.87 
$ 3.43 
$ 0.19 
$ 0.78 
$ 1.49 
$ 7.13 
$ 5.89 
$ 4.77 
Earnings per share - diluted (usd per share)
$ 3.92 
$ 0.20 
$ 1.06 
$ 1.87 
$ 3.42 
$ 0.19 
$ 0.78 
$ 1.48 
$ 7.08 
$ 5.87 
$ 4.75 
Earnings Per Common Share - Schedule of Antidilutive Securities Excluded From the Calculation of Earnings Per Share (Details) (Performance Shares)
In Millions, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Performance Shares
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
Anti-dilutive shares excluded from the calculation of earnings per share
0.1 
0.1 
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated OCI by Component and Reclassifications Out of Accumulated OCI (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Jan. 28, 2017
Foreign currency translation
Jan. 30, 2016
Foreign currency translation
Jan. 31, 2015
Foreign currency translation
Jan. 28, 2017
Losses on available-for-sale securities, net
Jan. 30, 2016
Losses on available-for-sale securities, net
Jan. 31, 2015
Losses on available-for-sale securities, net
Jan. 28, 2017
Gains (losses) on cash flow hedges
Jan. 30, 2016
Gains (losses) on cash flow hedges
Jan. 31, 2015
Gains (losses) on cash flow hedges
Jan. 28, 2017
Actuarial gains (losses)
Jan. 30, 2016
Actuarial gains (losses)
Jan. 31, 2015
Actuarial gains (losses)
Jan. 28, 2017
Prior service credits (costs)
Jan. 30, 2016
Prior service credits (costs)
Jan. 31, 2015
Prior service credits (costs)
Jan. 28, 2017
Accumulated other comprehensive (loss) income
Jan. 30, 2016
Accumulated other comprehensive (loss) income
Jan. 31, 2015
Accumulated other comprehensive (loss) income
Feb. 1, 2014
Accumulated other comprehensive (loss) income
AOCI Attributable to Parent, Net of Tax [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance
$ 3,060.7 
$ 2,810.4 
$ 2,563.1 
$ (237.8)
$ (197.6)
$ (137.0)
$ (0.4)
$ 0 
$ 0 
$ (3.9)
$ 4.4 
$ (14.3)
$ (43.1)
$ (56.7)
$ (42.5)
$ 11.1 
$ 13.3 
$ 15.3 
$ (307.7)
$ (274.1)
$ (236.6)
$ (178.5)
OCI before reclassifications
(32.7)
(42.0)
(70.9)
(25.6)
(40.2)
(60.6)
(0.4)
6.9 
(11.8)
6.2 
(13.6)
10.9 
(15.8)
(0.4)
(0.5)
(0.7)
 
 
 
 
Amounts reclassified from AOCI to net income
(0.9)
4.5 
12.8 
(0.6)
3.5 
12.5 
1.2 
2.7 
1.6 
(1.5)
(1.7)
(1.3)
 
 
 
 
Total other comprehensive (loss) income
(33.6)
(37.5)
(58.1)
(25.6)
(40.2)
(60.6)
(0.4)
6.3 
(8.3)
18.7 
(12.4)
13.6 
(14.2)
(1.9)
(2.2)
(2.0)
 
 
 
 
Balance
$ 2,490.2 
$ 3,060.7 
$ 2,810.4 
$ (263.4)
$ (237.8)
$ (197.6)
$ (0.4)
$ (0.4)
$ 0 
$ 2.4 
$ (3.9)
$ 4.4 
$ (55.5)
$ (43.1)
$ (56.7)
$ 9.2 
$ 11.1 
$ 13.3 
$ (307.7)
$ (274.1)
$ (236.6)
$ (178.5)
Accumulated Other Comprehensive Income (Loss) - Reclassifications out of AOCI (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Jan. 28, 2017
Oct. 29, 2016
Jul. 30, 2016
Apr. 30, 2016
Jan. 30, 2016
Oct. 31, 2015
Aug. 1, 2015
May 2, 2015
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Cost of sales reclassification adjustment
 
 
 
 
 
 
 
 
$ 4,047.6 
$ 4,109.8 
$ 3,662.1 
Interest expense reclassification adjustment
 
 
 
 
 
 
 
 
49.4 
45.9 
36.0 
Income before income taxes
 
 
 
 
 
 
 
 
(713.8)
(657.8)
(540.6)
Income taxes
 
 
 
 
 
 
 
 
170.6 
189.9 
159.3 
Net income
(287.8)
(14.8)
(81.9)
(146.8)
(271.9)
(15.0)
(62.2)
(118.8)
(543.2)
(467.9)
(381.3)
Amounts reclassified from AOCI
 
 
 
 
 
 
 
 
(0.9)
4.5 
12.8 
Actuarial gains (losses)
 
 
 
 
 
 
 
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Reclassification adjustment from AOCI, pension and other postretirement, before tax
 
 
 
 
 
 
 
 
1.5 
3.4 
2.0 
Prior service credits (costs)
 
 
 
 
 
 
 
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Reclassification adjustment from AOCI, pension and other postretirement, before tax
 
 
 
 
 
 
 
 
(1.9)
(2.2)
(1.7)
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
 
 
 
 
 
 
 
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Reclassification adjustment from AOCI, pension and other postretirement, before tax
 
 
 
 
 
 
 
 
(0.4)
1.2 
0.3 
Reclassification adjustment from AOCI, pension and other postretirement benefit plans, tax
 
 
 
 
 
 
 
 
0.1 
(0.2)
Amounts reclassified from AOCI
 
 
 
 
 
 
 
 
(0.3)
1.0 
0.3 
Reclassification out of AOCI |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
 
 
 
 
 
 
 
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
 
 
 
 
 
 
 
(0.7)
4.9 
18.6 
Income taxes
 
 
 
 
 
 
 
 
0.1 
(1.4)
(6.1)
Net income
 
 
 
 
 
 
 
 
(0.6)
3.5 
12.5 
Reclassification out of AOCI |
Foreign currency contracts |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
 
 
 
 
 
 
 
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Cost of sales reclassification adjustment
 
 
 
 
 
 
 
 
(2.7)
(0.4)
1.3 
Reclassification out of AOCI |
Interest rate swaps |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
 
 
 
 
 
 
 
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Interest expense reclassification adjustment
 
 
 
 
 
 
 
 
2.2 
2.7 
Reclassification out of AOCI |
Commodity contracts |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
 
 
 
 
 
 
 
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Cost of sales reclassification adjustment
 
 
 
 
 
 
 
 
$ (0.2)
$ 2.6 
$ 17.3 
Income Taxes - Summary of Income and Income Taxes (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Income before income taxes:
 
 
 
– US
$ 424.0 
$ 426.1 
$ 380.8 
– Foreign
289.8 
231.7 
159.8 
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 
Income Taxes - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Feb. 1, 2014
Operating Loss Carryforwards [Line Items]
 
 
 
 
Statutory tax rate
35.00% 
35.00% 
35.00% 
 
Foreign capital loss carry forward
$ 11.3 
$ 13.4 
 
 
Change in valuation allowance
0.4 
0.5 
(7.5)
 
Unrecognized tax benefits
12.0 
11.4 
11.4 
4.6 
Increase resulting from settlements with taxing authorities
11.6 
 
 
 
Accrued interest related to unrecognized tax benefits
3.1 
 
 
 
Accrued penalties
0.7 
 
 
 
Domestic Tax Authority
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carry forwards
43.8 
 
 
 
Foreign Tax Authority
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carry forwards
13.7 
 
 
 
Foreign net operating loss carry forwards
$ 11.7 
 
 
 
Bermuda
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Statutory tax rate
0.00% 
 
 
 
Income Taxes - Reconciliation of Statutory Tax Rate to Effective Tax Rate (Details)
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Income Tax Disclosure [Abstract]
 
 
 
US federal income tax rates
35.00% 
35.00% 
35.00% 
US state income taxes
1.90% 
2.70% 
2.10% 
Differences between US federal and foreign statutory income tax rates
(0.20%)
(0.50%)
(0.80%)
Expenditures permanently disallowable for tax purposes, net of permanent tax benefits
0.40% 
0.50% 
0.80% 
Disallowable transaction costs
0.10% 
2.10% 
0.70% 
Impact of global reinsurance arrangements
(5.40%)
(2.40%)
(1.50%)
Impact of global financing arrangements
(8.20%)
(8.70%)
(7.20%)
Other items
0.30% 
0.20% 
0.40% 
Effective tax rate
23.90% 
28.90% 
29.50% 
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) (USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Jan. 30, 2016
Assets
 
 
Foreign property, plant and equipment
$ 5.0 
$ 5.4 
Allowances for doubtful accounts
60.4 
54.1 
Revenue deferral
216.0 
188.5 
Derivative instruments
1.6 
Straight-line lease payments
37.5 
35.0 
Deferred compensation
16.5 
13.9 
Share-based compensation
5.7 
7.4 
Other temporary differences
51.0 
52.4 
Net operating losses and foreign tax credits
69.2 
80.6 
Value of foreign capital losses
11.3 
13.4 
Total gross deferred tax assets (liabilities)
472.6 
452.3 
Valuation allowance
(31.5)
(31.9)
Deferred tax assets (liabilities)
441.1 
420.4 
(Liabilities)
 
 
Intangible assets
(160.1)
(156.2)
US property, plant and equipment
(86.2)
(73.6)
Inventory valuation
(289.4)
(252.8)
Derivative instruments
 
Retirement benefit obligations
(6.1)
(10.3)
Deferred tax assets (liabilities)
(541.8)
(492.9)
Total
 
 
Intangible assets
(160.1)
(156.2)
Property, plant and equipment
 
5.4 
Inventory valuation
(289.4)
(252.8)
Allowances for doubtful accounts
60.4 
54.1 
Revenue deferral
216.0 
188.5 
Derivative instruments
1.6 
Straight-line lease payments
37.5 
35.0 
Deferred compensation
16.5 
13.9 
Retirement benefit obligations
(6.1)
(10.3)
Share-based compensation
5.7 
7.4 
Other temporary differences
51.0 
52.4 
Net operating losses and foreign tax credits
69.2 
80.6 
Value of foreign capital losses
11.3 
13.4 
Total gross deferred tax assets (liabilities)
(69.2)
(40.6)
Valuation allowance
(31.5)
(31.9)
Deferred tax assets (liabilities)
100.7 
72.5 
Non-current assets
0.7 
Non-current liabilities
(101.4)
(72.5)
Domestic Tax Authority
 
 
Total
 
 
Property, plant and equipment
(86.2)
 
Foreign Tax Authority
 
 
Total
 
 
Property, plant and equipment
$ 5.0 
$ (73.6)
Income Taxes - Summary of Activity of Unrecognized Tax Benefits (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Reconciliation of Unrecognized Tax Benefits
 
 
 
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
Prior year tax positions, 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 
Other Operating Income, Net - Components of Other Operating Income, Net (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Other Income and Expenses [Abstract]
 
 
 
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 
Accounts Receivable, Net - Portfolio of Accounts Receivable (Details) (USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Accounts receivable, net
$ 1,858.0 
$ 1,756.4 
 
Consumer Portfolio Segment
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Accounts receivable, net
1,813.3 
1,725.9 
1,552.9 
Other accounts receivable
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Accounts receivable, net
11.3 
16.9 
 
Sterling Jewelers |
Consumer Portfolio Segment
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Accounts receivable, net
1,813.3 
1,725.9 
 
Zale Jewelry |
Consumer Portfolio Segment
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Accounts receivable, net
$ 33.4 
$ 13.6 
 
Accounts Receivable, Net - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Jan. 30, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accounts receivable, net
$ 1,858.0 
$ 1,756.4 
Other accounts receivable
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accounts receivable, net
11.3 
16.9 
UK Jewelry |
Other accounts receivable
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accounts receivable, net
$ 11.0 
$ 13.6 
Accounts Receivable, Net - Allowance for Credit Losses (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Financing Receivable, Allowance for Credit Losses [Roll Forward]
 
 
 
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
1,858.0 
1,756.4 
 
Consumer Portfolio Segment
 
 
 
Financing Receivable, Allowance for Credit Losses [Roll Forward]
 
 
 
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 
Accounts Receivable, Net - Credit Quality Indicator and Age Analysis (Details) (USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Gross
$ 1,952.0 
$ 1,855.9 
$ 1,666.0 
Valuation allowance
(138.7)
(130.0)
(113.1)
Gross
100.00% 
100.00% 
100.00% 
Valuation allowance
7.10% 
7.00% 
6.80% 
Current, aged 0 – 30 days |
Performing
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Gross
1,538.2 
1,473.0 
1,332.2 
Valuation allowance
(47.2)
(45.4)
(41.1)
Gross
78.80% 
79.40% 
80.00% 
Valuation allowance
3.10% 
3.10% 
3.10% 
Past due, aged 31 – 60 days |
Performing
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Gross
282.0 
259.6 
230.2 
Valuation allowance
(9.0)
(8.3)
(7.5)
Gross
14.50% 
14.00% 
13.80% 
Valuation allowance
3.20% 
3.20% 
3.30% 
Past due, aged 61 – 90 days |
Performing
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Gross
51.6 
49.2 
40.9 
Valuation allowance
(2.3)
(2.2)
(1.8)
Gross
2.60% 
2.60% 
2.40% 
Valuation allowance
4.50% 
4.50% 
4.40% 
Past due, aged more than 90 days |
Non Performing
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
Gross
80.2 
74.1 
62.7 
Valuation allowance
$ (80.2)
$ (74.1)
$ (62.7)
Gross
4.10% 
4.00% 
3.80% 
Valuation allowance
100.00% 
100.00% 
100.00% 
Inventories - Additional Information (Details) (Consignment inventory, USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Jan. 30, 2016
Consignment inventory
 
 
Inventories
 
 
Other inventory
$ 574.0 
$ 441.9 
Inventories - Summary of Inventory Components (Details) (USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Jan. 30, 2016
Inventory Disclosure [Abstract]
 
 
Raw materials
$ 60.8 
$ 81.8 
Finished goods
2,388.5 
2,372.1 
Total inventories
$ 2,449.3 
$ 2,453.9 
Inventories - Rollforward of Inventory Reserves (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Balance at beginning of period
$ 43.2 
$ 28.4 
$ 16.3 
Charged to profit
57.3 
87.6 
44.6 
Utilized
(57.3)
(72.8)
(32.5)
Balance at end of period
$ 43.2 
$ 43.2 
$ 28.4 
Property, Plant and Equipment, Net - Summary of Property, Plant and Equipment, Net (Details) (USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Jan. 30, 2016
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 1,872.3 
$ 1,676.8 
Accumulated depreciation and amortization
(1,049.4)
(949.2)
Property, plant and equipment, net
822.9 
727.6 
Land and buildings
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
33.5 
34.7 
Leasehold Improvements
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
632.4 
591.7 
Furniture and fixtures
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
761.0 
688.7 
Equipment
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
137.7 
133.6 
Software
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
211.0 
181.9 
Construction in progress
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 96.7 
$ 46.2 
Property, Plant and Equipment, Net - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Property, Plant and Equipment [Abstract]
 
 
 
Depreciation and amortization expense
$ 175.0 
$ 161.4 
$ 140.1 
Impairment of assets
$ 1.3 
$ 0.7 
$ 0.8 
Goodwill and Intangibles - Summary of Goodwill (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Goodwill [Roll Forward]
 
 
Beginning balance
$ 515.5 
$ 519.2 
Impact of foreign exchange
2.1 
(3.7)
Ending balance
517.6 
515.5 
Sterling Jewelers
 
 
Goodwill [Roll Forward]
 
 
Beginning balance
23.2 
23.2 
Impact of foreign exchange
Ending balance
23.2 
23.2 
Zale Jewelry
 
 
Goodwill [Roll Forward]
 
 
Beginning balance
488.7 
492.4 
Impact of foreign exchange
2.1 
(3.7)
Ending balance
490.8 
488.7 
Piercing Pagoda
 
 
Goodwill [Roll Forward]
 
 
Beginning balance
Impact of foreign exchange
Ending balance
UK Jewelry
 
 
Goodwill [Roll Forward]
 
 
Beginning balance
Impact of foreign exchange
Ending balance
Other
 
 
Goodwill [Roll Forward]
 
 
Beginning balance
3.6 
3.6 
Impact of foreign exchange
Ending balance
$ 3.6 
$ 3.6 
Goodwill and Intangibles - Additional Information (Details) (USD $)
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Finite-Lived Intangible Assets [Line Items]
 
 
 
Goodwill, impairment loss
$ 0 
$ 0 
 
Amortization of intangible assets
13,800,000 
13,900,000 
9,600,000 
Amortization of intangible liabilities
$ 19,700,000 
$ 28,700,000 
$ 23,700,000 
Zale
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Intangible liabilities, weighted average useful life
4 years 9 months 
 
 
Zale |
Trade Names and Favorable Leases
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Intangible assets, weighted average useful life
1 year 5 months 
 
 
Goodwill and Intangibles - Composition of Finite-Lived Intangibles (Details) (USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Jan. 30, 2016
Definite-lived intangible assets:
 
 
Gross carrying amount
$ 49.0 
$ 48.4 
Accumulated amortization
(36.8)
(22.8)
Net carrying amount
12.2 
25.6 
Intangible assets, gross
453.8 
450.6 
Total intangible assets, net
417.0 
427.8 
Definite-lived intangible liabilities:
 
 
Gross carrying amount
(113.9)
(113.3)
Accumulated amortization
71.7 
51.8 
Total
(42.2)
(61.5)
Unfavorable leases
 
 
Definite-lived intangible liabilities:
 
 
Gross carrying amount
(48.3)
(47.7)
Accumulated amortization
38.2 
23.7 
Total
(10.1)
(24.0)
Unfavorable contracts
 
 
Definite-lived intangible liabilities:
 
 
Gross carrying amount
(65.6)
(65.6)
Accumulated amortization
33.5 
28.1 
Total
(32.1)
(37.5)
Trade names
 
 
Definite-lived intangible assets:
 
 
Gross carrying amount
1.4 
1.4 
Accumulated amortization
(0.8)
(0.5)
Net carrying amount
0.6 
0.9 
Favorable leases
 
 
Definite-lived intangible assets:
 
 
Gross carrying amount
47.6 
47.0 
Accumulated amortization
(36.0)
(22.3)
Net carrying amount
11.6 
24.7 
Trade names
 
 
Definite-lived intangible assets:
 
 
Indefinite-lived trade names
$ 404.8 
$ 402.2 
Goodwill and Intangibles - Summary of Future Amortization (Details) (USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Jan. 30, 2016
Definite-lived intangible assets amortization expense
 
 
2018
$ 9.3 
 
2019
2.6 
 
2020
0.3 
 
2021
 
2022
 
Thereafter
 
Net carrying amount
12.2 
25.6 
Definite-lived intangible liabilities amortization expense
 
 
2018
(13.0)
 
2019
(7.6)
 
2020
(5.7)
 
2021
(5.4)
 
2022
(5.4)
 
Thereafter
(5.1)
 
Total
(42.2)
(61.5)
Unfavorable leases
 
 
Definite-lived intangible liabilities amortization expense
 
 
2018
(7.6)
 
2019
(2.2)
 
2020
(0.3)
 
2021
 
2022
 
Thereafter
 
Total
(10.1)
(24.0)
Unfavorable contracts
 
 
Definite-lived intangible liabilities amortization expense
 
 
2018
(5.4)
 
2019
(5.4)
 
2020
(5.4)
 
2021
(5.4)
 
2022
(5.4)
 
Thereafter
(5.1)
 
Total
(32.1)
(37.5)
Trade names
 
 
Definite-lived intangible assets amortization expense
 
 
2018
0.3 
 
2019
0.2 
 
2020
0.1 
 
2021
 
2022
 
Thereafter
 
Net carrying amount
0.6 
0.9 
Favorable leases
 
 
Definite-lived intangible assets amortization expense
 
 
2018
9.0 
 
2019
2.4 
 
2020
0.2 
 
2021
 
2022
 
Thereafter
 
Net carrying amount
$ 11.6 
 
Other Assets - Components of Other Assets (Detail) (USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Jan. 30, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
 
 
Deferred ESP selling costs
$ 86.1 
$ 79.4 
Investments
27.2 
26.8 
Other assets
51.8 
48.4 
Total other assets
165.1 
154.6 
Deferred costs related to the sale of the extended service plan
$ 29.4 
$ 26.4 
Investments - Summary of Available-for-sale Securities (Details) (USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Jan. 30, 2016
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
$ 27.9 
$ 27.5 
Unrealized Gain (Loss)
(0.7)
(0.7)
Fair Value
27.2 
26.8 
US Treasury securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
8.8 
9.2 
Unrealized Gain (Loss)
(0.7)
(0.4)
Fair Value
8.1 
8.8 
US government agency securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
4.6 
4.0 
Unrealized Gain (Loss)
(0.2)
Fair Value
4.4 
4.0 
Corporate bonds and notes
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
11.0 
10.8 
Unrealized Gain (Loss)
(0.1)
Fair Value
10.9 
10.8 
Corporate equity securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
3.5 
3.5 
Unrealized Gain (Loss)
0.3 
(0.3)
Fair Value
$ 3.8 
$ 3.2 
Investments - Additional Information (Details) (Available-for-sale Securities, USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Jan. 30, 2016
Available-for-sale Securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Assets held by insurance regulators
$ 6.6 
$ 7.1 
Investments - Summary of Investments in Debt Securities Outstanding (Details) (USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Cost
 
Less than one year
$ 1.8 
Year two through year five
13.4 
Year six through year ten
9.2 
After ten years
Total investment in debt securities
24.4 
Fair Value
 
Less than one year
1.2 
Year two through year five
13.2 
Year six through year ten
9.0 
After ten years
Total investment in debt securities
$ 23.4 
Derivatives - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended
Jan. 28, 2017
oz
Jan. 30, 2016
oz
Jan. 28, 2017
Maximum
Jan. 28, 2017
Cash Flow Hedging
Mar. 31, 2015
Interest rate swaps
Jan. 28, 2017
Foreign currency contracts
Not Designated as Hedging Instrument
Jan. 30, 2016
Foreign currency contracts
Not Designated as Hedging Instrument
Jan. 28, 2017
Foreign currency contracts
Cash Flow Hedging
Jan. 30, 2016
Foreign currency contracts
Cash Flow Hedging
Jan. 28, 2017
Commodity contracts
Cash Flow Hedging
Jan. 30, 2016
Commodity contracts
Cash Flow Hedging
Derivative [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Aggregate notional amount
 
 
 
 
$ 300.0 
$ 117.8 
$ 32.0 
$ 37.8 
$ 10.7 
 
 
Remaining settlement period
 
 
12 months 
 
 
 
 
12 months 
6 months 
12 months 
12 months 
Ounces of gold
94,000 
76,000 
 
 
 
 
 
 
 
 
 
Expected pre-tax derivative losses
 
 
 
$ 2.3 
 
 
 
 
 
 
 
Derivatives - Fair Value of Presentation of Derivative Assets and Liabilities (Details) (USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Jan. 30, 2016
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative assets
$ 3.6 
$ 1.4 
Fair value of derivative liabilities
(3.6)
(4.4)
Designated as Hedging Instrument
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative assets
1.8 
1.4 
Fair value of derivative liabilities
(3.6)
(4.2)
Foreign currency contracts |
Designated as Hedging Instrument |
Other current assets
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative assets
1.4 
0.8 
Foreign currency contracts |
Designated as Hedging Instrument |
Other current liabilities
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative liabilities
(0.2)
Foreign currency contracts |
Not Designated as Hedging Instrument |
Other current assets
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative assets
1.8 
Foreign currency contracts |
Not Designated as Hedging Instrument |
Other current liabilities
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative liabilities
(0.2)
Commodity contracts |
Designated as Hedging Instrument |
Other current assets
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative assets
0.6 
Commodity contracts |
Designated as Hedging Instrument |
Other current liabilities
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative liabilities
(3.4)
(0.8)
Interest rate swaps |
Designated as Hedging Instrument |
Other assets
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative assets
0.4 
Interest rate swaps |
Designated as Hedging Instrument |
Other liabilities
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative liabilities
$ 0 
$ (3.4)
Derivatives - Derivatives Designated as Cash Flow Hedges (Details) (USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Foreign currency contracts
 
 
 
Derivative [Line Items]
 
 
 
Pre-tax gains (losses) recorded in AOCI
$ 4.1 
$ 1.4 
 
Commodity contracts
 
 
 
Derivative [Line Items]
 
 
 
Pre-tax gains (losses) recorded in AOCI
(2.1)
(3.7)
 
Cash Flow Hedging
 
 
 
Derivative [Line Items]
 
 
 
Pre-tax gains (losses) recorded in AOCI
2.4 
(5.7)
 
Cash Flow Hedging |
Foreign currency contracts
 
 
 
Derivative [Line Items]
 
 
 
Pre-tax gains (losses) recorded in AOCI
4.1 
1.4 
0.9 
Cash Flow Hedging |
Commodity contracts
 
 
 
Derivative [Line Items]
 
 
 
Pre-tax gains (losses) recorded in AOCI
(2.1)
(3.7)
5.7 
Cash Flow Hedging |
Interest rate swaps
 
 
 
Derivative [Line Items]
 
 
 
Pre-tax gains (losses) recorded in AOCI
$ 0.4 
$ (3.4)
 
Derivatives - Foreign Currency Contracts (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Cash Flow Hedging
 
 
 
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
 
 
 
Gains recorded in AOCI, beginning of period
$ 2.4 
$ (5.7)
 
Losses (gains) recorded in AOCI, end of period
2.4 
(5.7)
 
Foreign currency contracts
 
 
 
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
 
 
 
Gains recorded in AOCI, beginning of period
4.1 
1.4 
 
Losses (gains) recorded in AOCI, end of period
4.1 
1.4 
 
Foreign currency contracts |
Cash Flow Hedging
 
 
 
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
 
 
 
Gains recorded in AOCI, beginning of period
4.1 
1.4 
0.9 
Current period gains recognized in OCI
5.4 
0.9 
 
Losses (gains) recorded in AOCI, end of period
4.1 
1.4 
0.9 
Foreign currency contracts |
Cash Flow Hedging |
Cost of sales
 
 
 
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
 
 
 
Gains reclassified from AOCI to net income
$ (2.7)
$ (0.4)
 
Derivatives - Commodity Contracts (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Cash Flow Hedging
 
 
Movement in Accumulated Other Comprehensive Income [Roll Forward]
 
 
Losses (gains) recorded in AOCI, end of period
$ 2.4 
$ (5.7)
Commodity contracts
 
 
Movement in Accumulated Other Comprehensive Income [Roll Forward]
 
 
Losses (gains) recorded in AOCI, end of period
(2.1)
(3.7)
Commodity contracts |
Cash Flow Hedging
 
 
Movement in Accumulated Other Comprehensive Income [Roll Forward]
 
 
(Losses) gains recorded in AOCI, beginning of period
(3.7)
5.7 
Current period gains (losses) recognized in OCI
1.8 
(12.0)
Losses (gains) recorded in AOCI, end of period
(2.1)
(3.7)
Commodity contracts |
Cash Flow Hedging |
Cost of sales
 
 
Movement in Accumulated Other Comprehensive Income [Roll Forward]
 
 
(Gains) losses reclassified from AOCI to net income
(0.2)
2.6 
Interest rate contract |
Cash Flow Hedging
 
 
Movement in Accumulated Other Comprehensive Income [Roll Forward]
 
 
(Losses) gains recorded in AOCI, beginning of period
(3.4)
Current period gains (losses) recognized in OCI
1.6 
(6.1)
Losses (gains) recorded in AOCI, end of period
0.4 
(3.4)
Interest rate contract |
Cash Flow Hedging |
Interest expense, net
 
 
Movement in Accumulated Other Comprehensive Income [Roll Forward]
 
 
(Gains) losses reclassified from AOCI to net income
$ 2.2 
$ 2.7 
Derivatives - Derivatives Not Designated as Hedging Instruments (Details) (Not Designated as Hedging Instrument, Foreign currency contracts, Other operating income, net, USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Not Designated as Hedging Instrument |
Foreign currency contracts |
Other operating income, net
 
 
Derivative [Line Items]
 
 
Foreign currency contracts not designated as hedging
$ 6.3 
$ (4.5)
Fair Value Measurement - Fair Value of Assets and Liabilities (Details) (USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Jan. 30, 2016
Quoted prices in active markets for identical assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets
$ 11.9 
$ 12.0 
Liabilities
Significant other observable inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets
18.9 
16.2 
Liabilities
(3.6)
(4.4)
Carrying Value
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets
30.8 
28.2 
Liabilities
(3.6)
(4.4)
US Treasury securities |
Quoted prices in active markets for identical assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets
8.1 
8.8 
US Treasury securities |
Significant other observable inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets
US Treasury securities |
Carrying Value
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets
8.1 
8.8 
Corporate equity securities |
Quoted prices in active markets for identical assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets
3.8 
3.2 
Corporate equity securities |
Significant other observable inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets
Corporate equity securities |
Carrying Value
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets
3.8 
3.2 
Foreign currency contracts |
Quoted prices in active markets for identical assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets
Liabilities
Foreign currency contracts |
Significant other observable inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets
3.2 
0.8 
Liabilities
(0.2)
(0.2)
Foreign currency contracts |
Carrying Value
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets
3.2 
0.8 
Liabilities
(0.2)
(0.2)
Commodity contracts |
Quoted prices in active markets for identical assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets
Liabilities
Commodity contracts |
Significant other observable inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets
0.6 
Liabilities
(3.4)
(0.8)
Commodity contracts |
Carrying Value
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets
0.6 
Liabilities
(3.4)
(0.8)
US government agency securities |
Quoted prices in active markets for identical assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets
US government agency securities |
Significant other observable inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets
4.4 
4.0 
US government agency securities |
Carrying Value
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets
4.4 
4.0 
Corporate bonds and notes |
Quoted prices in active markets for identical assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets
Corporate bonds and notes |
Significant other observable inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets
10.9 
10.8 
Corporate bonds and notes |
Carrying Value
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets
10.9 
10.8 
Interest rate swaps |
Quoted prices in active markets for identical assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets
Liabilities
Interest rate swaps |
Significant other observable inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets
0.4 
Liabilities
(3.4)
Interest rate swaps |
Carrying Value
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets
0.4 
Liabilities
$ 0 
$ (3.4)
Fair Value Measurement - Outstanding Debt (Details) (USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Jan. 30, 2016
Carrying Value
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Outstanding debt
$ 1,338.5 
$ 1,353.9 
Fair Value
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Outstanding debt
1,339.8 
1,371.1 
Senior Notes |
Level 2 |
Carrying Value
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Outstanding debt
393.7 
392.8 
Senior Notes |
Level 2 |
Fair Value
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Outstanding debt
391.2 
405.9 
Securitization Facility |
Level 2 |
Carrying Value
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Outstanding debt
599.7 
599.6 
Securitization Facility |
Level 2 |
Fair Value
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Outstanding debt
600.0 
600.0 
Term Loan |
Level 2 |
Carrying Value
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Outstanding debt
345.1 
361.3 
Term Loan |
Level 2 |
Fair Value
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Outstanding debt
348.6 
365.0 
Capital Lease Obligations |
Level 2 |
Carrying Value
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Outstanding debt
0.2 
Capital Lease Obligations |
Level 2 |
Fair Value
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Outstanding debt
$ 0 
$ 0.2 
Pension Plans - Change in UK Plan Assets (Details) (Foreign Pension Plan, Defined Benefit, USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Foreign Pension Plan, Defined Benefit
 
 
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
 
 
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 
Pension Plans - Change in UK Benefit Obligation (Details) (Foreign Pension Plan, Defined Benefit, USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Foreign Pension Plan, Defined Benefit
 
 
 
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
 
 
 
Benefit obligation at beginning of year
$ 214.9 
$ 258.8 
 
Service cost
2.0 
2.6 
2.3 
Past service cost
0.5 
0.6 
 
Interest cost
7.2 
7.7 
9.7 
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 
258.8 
Funded status at end of year
$ 31.9 
$ 51.3 
 
Pension Plans - Components of UK Net Asset Recognized (Details) (USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Jan. 30, 2016
Defined Benefit Plan Disclosure [Line Items]
 
 
Non-current assets
$ 31.9 
$ 51.3 
Foreign Pension Plan, Defined Benefit
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Non-current assets
31.9 
51.3 
Non-current liabilities
Net asset recognized
$ 31.9 
$ 51.3 
Pension Plans - AOCI Items not yet Recognized (Details) (Foreign Pension Plan, Defined Benefit, USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Foreign Pension Plan, Defined Benefit
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Net actuarial losses
$ (55.5)
$ (43.1)
$ (56.7)
Net prior service credits
$ 9.2 
$ 11.1 
$ 13.3 
Pension Plans - Additional Information (Details) (USD $)
12 Months Ended
Jan. 28, 2017
plan
Jan. 30, 2016
Jan. 31, 2015
Foreign Pension Plan, Defined Benefit
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Future amortization of gain (loss)
$ (2,900,000)
 
 
Future amortization of prior service cost (credit)
(1,700,000)
 
 
Accumulated benefit obligation
208,000,000 
204,200,000 
 
Employer contributions
3,300,000 
2,500,000 
 
Foreign Pension Plan, Defined Benefit |
Minimum
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Estimated future employer contributions in next fiscal year
3,300,000.0 
 
 
Foreign Pension Plan, Defined Benefit |
Debt Securities
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Target plan asset allocations
53.00% 
 
 
Foreign Pension Plan, Defined Benefit |
Diversified growth funds
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Target plan asset allocations
34.00% 
 
 
Foreign Pension Plan, Defined Benefit |
Corporate equity securities
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Target plan asset allocations
8.00% 
 
 
Foreign Pension Plan, Defined Benefit |
Real estate
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Target plan asset allocations
5.00% 
 
 
Pension plan
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Employer discretionary contribution amount
14,600,000 
8,300,000 
7,600,000 
Employer matching contribution, percent of match
50.00% 
 
 
Employer matching contribution, maximum, percent of employees' gross pay
6.00% 
 
 
Number of US non-qualified deferred compensation plans
 
 
Cost recognized
4,600,000 
2,900,000 
2,600,000 
United Kingdom |
Foreign Pension Plan, Defined Benefit
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Employer discretionary contribution amount
$ 1,800,000 
$ 2,000,000 
$ 1,800,000 
Pension Plans - Components of Net Periodic Pension Cost (Details) (Foreign Pension Plan, Defined Benefit, USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Foreign Pension Plan, Defined Benefit
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
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)
Pension Plans - Assumptions used to Determine Benefit Obligations and Periodic Pension Costs (Details) (Foreign Pension Plan, Defined Benefit)
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Foreign Pension Plan, Defined Benefit
 
 
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% 
Pension Plans - Fair Value Measurements of Plan Assets (Details) (USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Significant Unobservable inputs (Level 3)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
$ 11.8 
$ 13.0 
$ 12.3 
Foreign Pension Plan, Defined Benefit
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
247.6 
266.2 
295.8 
Foreign Pension Plan, Defined Benefit |
Quoted prices in active markets for identical assets (Level 1)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
44.2 
56.9 
 
Foreign Pension Plan, Defined Benefit |
Significant other observable inputs (Level 2)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
191.6 
196.3 
 
Foreign Pension Plan, Defined Benefit |
Significant Unobservable inputs (Level 3)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
11.8 
13.0 
 
Foreign Pension Plan, Defined Benefit |
Corporate equity securities
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
22.3 
21.2 
 
Foreign Pension Plan, Defined Benefit |
Corporate equity securities |
Quoted prices in active markets for identical assets (Level 1)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
11.3 
 
Foreign Pension Plan, Defined Benefit |
Corporate equity securities |
Significant other observable inputs (Level 2)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
22.3 
9.9 
 
Foreign Pension Plan, Defined Benefit |
Diversified growth funds
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
80.9 
90.5 
 
Foreign Pension Plan, Defined Benefit |
Diversified growth funds |
Quoted prices in active markets for identical assets (Level 1)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
40.7 
44.8 
 
Foreign Pension Plan, Defined Benefit |
Diversified growth funds |
Significant other observable inputs (Level 2)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
40.2 
45.7 
 
Foreign Pension Plan, Defined Benefit |
Fixed income – government bonds
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
81.0 
87.1 
 
Foreign Pension Plan, Defined Benefit |
Fixed income – government bonds |
Significant other observable inputs (Level 2)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
81.0 
87.1 
 
Foreign Pension Plan, Defined Benefit |
Corporate bonds and notes
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
48.1 
53.6 
 
Foreign Pension Plan, Defined Benefit |
Corporate bonds and notes |
Significant other observable inputs (Level 2)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
48.1 
53.6 
 
Foreign Pension Plan, Defined Benefit |
Property
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
11.8 
13.0 
 
Foreign Pension Plan, Defined Benefit |
Property |
Significant Unobservable inputs (Level 3)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
11.8 
13.0 
 
Foreign Pension Plan, Defined Benefit |
Cash
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
3.5 
0.8 
 
Foreign Pension Plan, Defined Benefit |
Cash |
Quoted prices in active markets for identical assets (Level 1)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
$ 3.5 
$ 0.8 
 
Pension Plans - Changes in Fair Value of Level 3 Investment Assets (Details) (Significant Unobservable inputs (Level 3), USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Significant Unobservable inputs (Level 3)
 
 
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
 
 
Fair value at beginning of year
$ 13.0 
$ 12.3 
Actual return on assets
(1.2)
0.7 
Fair value at end of year
$ 11.8 
$ 13.0 
Pension Plans - Fair Value of Unfunded, Non-qualified Deferred Compensation Plans Assets (Details) (USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Jan. 30, 2016
Defined Benefit Plan Disclosure [Line Items]
 
 
Total assets
$ 37.1 
$ 33.4 
Level 1
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Total assets
29.6 
25.1 
Level 2
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Total assets
7.5 
8.3 
Corporate-owned life insurance plans
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Total assets
7.5 
8.3 
Corporate-owned life insurance plans |
Level 2
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Total assets
7.5 
8.3 
Money market funds
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Total assets
29.6 
25.1 
Money market funds |
Level 1
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Total assets
$ 29.6 
$ 25.1 
Loans, Overdrafts and Long-Term Debt - Summary (Details) (USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Jan. 30, 2016
Debt Disclosure [Abstract]
 
 
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
(8.6)
(9.5)
Long-term debt
$ 1,317.9 
$ 1,321.0 
Loans, Overdrafts and Long-Term Debt - Additional Information (Detail) (USD $)
12 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
May 29, 2014
Zale
Jan. 28, 2017
Term Loan
Jan. 30, 2016
Term Loan
Jan. 31, 2015
Term Loan
Feb. 19, 2014
Unsecured Bridge Facility
Zale
Jan. 31, 2015
Unsecured Bridge Facility
Zale
Feb. 19, 2014
Unsecured Bridge Facility
Zale
May 19, 2014
Senior Unsecured Notes Due in 2024
Signet UK Finance plc
Jan. 28, 2017
Senior Unsecured Notes Due in 2024
Signet UK Finance plc
Jan. 30, 2016
Senior Unsecured Notes Due in 2024
Signet UK Finance plc
May 19, 2014
Senior Unsecured Notes Due in 2024
Signet UK Finance plc
Jan. 28, 2017
Credit Facility
Revolving Credit Facility
Jan. 30, 2016
Credit Facility
Revolving Credit Facility
Jul. 30, 2016
Credit Facility
Revolving Credit Facility
Apr. 30, 2016
Credit Facility
Revolving Credit Facility
Jan. 28, 2017
Credit Facility
Term Loan
Jan. 30, 2016
Credit Facility
Term Loan
Jan. 28, 2017
Credit Facility
Term Loan
Year One
Jan. 28, 2017
Credit Facility
Term Loan
Year Two
Jan. 28, 2017
Credit Facility
Term Loan
Year Three
Jan. 28, 2017
Credit Facility
Term Loan
Year Four
Jan. 28, 2017
Credit Facility
Term Loan
Year Five
May 15, 2014
Securitization Facility
Jan. 28, 2017
Securitization Facility
Jan. 30, 2016
Securitization Facility
May 15, 2014
Securitization Facility
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit facility, maximum borrowing capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 700,000,000 
$ 400,000,000 
 
 
 
 
 
 
 
 
 
 
 
Capitalized fees, current
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,400,000 
 
 
 
700,000 
 
 
 
 
 
 
 
600,000 
 
 
Capitalized fees
 
 
 
 
 
 
 
 
 
 
 
7,000,000 
 
 
2,600,000 
 
 
 
6,200,000 
 
 
 
 
 
 
 
 
 
 
Capitalized issuance costs written off
 
 
 
 
 
 
 
 
 
 
 
1,900,000 
1,200,000 
 
800,000 
400,000 
 
 
2,700,000 
1,800,000 
 
 
 
 
 
 
3,100,000 
2,400,000 
 
Amortization related to capitalized fees
2,800,000 
3,600,000 
7,400,000 
 
 
 
 
 
 
 
 
700,000 
700,000 
 
400,000 
300,000 
 
 
900,000 
1,000,000 
 
 
 
 
 
 
700,000 
1,500,000 
 
Stand-by letters of credit
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15,300,000 
28,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.71% 
1.18% 
 
 
1.78% 
1.48% 
 
 
 
 
 
 
2.05% 
1.61% 
 
Face amount
 
 
 
1,400,000,000 
 
 
 
 
 
800,000,000 
 
 
 
400,000,000 
 
 
 
 
357,500,000.0 
 
 
 
 
 
 
 
 
 
600,000,000 
Quarterly repayment rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.00% 
7.50% 
10.00% 
12.50% 
15.00% 
 
 
 
 
Covenant, maximum leverage ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.50 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Covenant, minimum coverage ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.40 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, maturity period
 
 
 
 
 
 
 
364 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2 years 
 
 
 
Capitalized fees, noncurrent
 
 
 
 
 
 
 
 
4,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stated interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
4.70% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from debt, net of issuance costs
 
 
 
 
400,000,000 
 
 
 
393,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Securitization facility
600,000,000 
600,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt issuance cost
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,400,000 
 
 
Bank overdrafts
$ 14,200,000 
$ 24,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrued Expenses and Other Current Liabilities - Accrued Expenses and Other Current Liabilities (Detail) (USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Jan. 30, 2016
Payables and Accruals [Abstract]
 
 
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 
Accrued Expenses and Other Current Liabilities - Summary of Activity in Sales Returns Reserve (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Beginning balance
$ 14.0 
$ 15.3 
$ 8.4 
Net adjustment
(1.0)
(1.3)
6.9 
Ending balance
$ 13.0 
$ 14.0 
$ 15.3 
Accrued Expenses and Other Current Liabilities - Additional Information (Detail)
12 Months Ended
Jan. 28, 2017
Payables and Accruals [Abstract]
 
Lifetime diamond guarantee inspection period
6 months 
Accrued Expenses and Other Current Liabilities - Summary of Activity in Warranty Reserve (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Movement in Standard Product Warranty Accrual [Roll Forward]
 
 
 
Balance at beginning of period
$ 41.9 
$ 44.9 
$ 19.1 
Warranty obligations acquired
28.4 
Warranty expense
11.5 
10.8 
7.4 
Utilized
(13.4)
(13.8)
(10.0)
Balance at end of period
$ 40.0 
$ 41.9 
$ 44.9 
Accrued Expenses and Other Current Liabilities - Components of Warranty Reserve (Details) (USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Feb. 1, 2014
Warranty Reserve [Line Items]
 
 
 
 
Warranty reserve
$ 27.0 
$ 29.6 
 
 
Included within accrued expenses above
40.0 
41.9 
44.9 
19.1 
Warranty reserves
 
 
 
 
Warranty Reserve [Line Items]
 
 
 
 
Current liabilities
13.0 
12.3 
 
 
Warranty reserve
27.0 
29.6 
 
 
Included within accrued expenses above
$ 40.0 
$ 41.9 
 
 
Deferred Revenue - ESP and Voucher Promotions (Details) (USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Deferred Revenue Arrangement [Line Items]
 
 
 
Voucher promotions and other
$ 30.3 
$ 28.2 
 
Total deferred revenue
935.9 
889.4 
 
Current liabilities
276.9 
260.3 
 
Non-current liabilities
659.0 
629.1 
 
Sterling Jewelers
 
 
 
Deferred Revenue Arrangement [Line Items]
 
 
 
ESP deferred revenue
737.4 
715.1 
668.9 
Zale Jewelry
 
 
 
Deferred Revenue Arrangement [Line Items]
 
 
 
ESP deferred revenue
$ 168.2 
$ 146.1 
 
Deferred Revenue - Rollforward (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Sterling Jewelers
 
 
Deferred Revenue Arrangement [Line Items]
 
 
ESP deferred revenue, beginning of period
$ 715.1 
$ 668.9 
Plans sold
290.8 
281.2 
Revenue recognized
(268.5)
(235.0)
ESP deferred revenue, end of period
737.4 
715.1 
Zale
 
 
Deferred Revenue Arrangement [Line Items]
 
 
ESP deferred revenue, beginning of period
146.1 
120.3 
Plans sold
150.1 
138.6 
Revenue recognized
(128.0)
(112.8)
ESP deferred revenue, end of period
$ 168.2 
$ 146.1 
Other Liabilities-Non-Current - Summary of Other Liabilities (Details) (USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Other Liabilities Disclosure [Abstract]
 
 
 
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 
4.2 
Other liabilities
57.5 
79.8 
 
Total other liabilities
$ 213.7 
$ 230.5 
 
Other Liabilities-Non-Current - Summary of Lease Loss Reserve (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Allowance for Loan and Lease Losses [Roll Forward]
 
 
Lease loss reserve, beginning of period
$ 3.4 
$ 4.2 
Adjustments, net
(1.5)
(0.2)
Utilization
(0.6)
(0.6)
Lease loss reserve, end of period
$ 1.3 
$ 3.4 
Share-Based Compensation - Share-based Compensation Expense (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Income tax benefit
$ (2.8)
$ (5.9)
$ (4.3)
Selling, general and administrative expenses
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based compensation
$ 8.0 
$ 16.4 
$ 12.1 
Share-Based Compensation - Narrative (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Omnibus Plan
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Vesting period
3 years 
 
Performance measurement period
3 years 
 
Shares available for grant
7,000,000 
 
Intrinsic value
$ 53.0 
$ 69.8 
Executive Plans
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Plan period
10 years 
 
Annual maximum percent of issued common shares issuable under share plan
10.00% 
 
Discount from market price
15.00% 
 
Intrinsic value
$ 0.3 
$ 1.5 
Share-Based Compensation - Significant Assumptions used to Estimate Fair Value of Awards under Omnibus Plan (Details) (Omnibus Plan, USD $)
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Omnibus Plan
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share price (usd per share)
$ 109.03 
$ 136.37 
$ 104.57 
Risk free interest rate
1.00% 
0.80% 
0.80% 
Expected term
2 years 9 months 12 days 
2 years 10 months 12 days 
2 years 8 months 12 days 
Expected volatility
28.50% 
25.40% 
32.10% 
Dividend yield
1.10% 
0.70% 
0.90% 
Weighted average grant date fair value per share of awards granted (usd per share)
$ 106.48 
$ 134.46 
$ 103.12 
Share-Based Compensation - Summary of Activity of Awards Granted under Omnibus Plan (Details) (Omnibus Plan, USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Omnibus Plan
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
 
 
Beginning Balance (shares)
0.6 
 
 
Granted (shares)
0.3 
 
 
Vested (shares)
(0.1)
 
 
Lapsed (shares)
(0.1)
 
 
Ending Balance (shares)
0.7 
0.6 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
 
 
 
Beginning Balance (usd per share)
$ 101.88 
 
 
Granted (usd per share)
$ 106.48 
$ 134.46 
$ 103.12 
Vested (usd per share)
$ 84.55 
 
 
Lapsed (usd per share)
$ 73.56 
 
 
Ending Balance (usd per share)
$ 111.98 
$ 101.88 
 
Weighted average remaining contractual life
1 year 3 months 12 days 
1 year 1 month 12 days 
 
Intrinsic value
$ 53.0 
$ 69.8 
 
Share-Based Compensation - Additional Information about Awards Granted under Omnibus Plan (Details) (Omnibus Plan, USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Omnibus Plan
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Total intrinsic value of awards vested
$ 13.6 
$ 22.2 
$ 43.9 
Share-Based Compensation - Significant Assumptions used to Estimate Fair Value of Awards under Share Saving Plan (Details) (Saving Share Plans, USD $)
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Saving Share Plans
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share price (usd per share)
$ 84.37 
$ 139.18 
$ 114.93 
Exercise price (usd per share)
$ 67.24000000 
$ 114.67000000 
$ 96.67000000 
Risk free interest rate
0.60% 
0.70% 
0.90% 
Expected term
2 years 8 months 10 days 
2 years 7 months 10 days 
2 years 9 months 18 days 
Expected volatility
31.30% 
27.10% 
27.60% 
Dividend yield
1.70% 
0.80% 
0.80% 
Weighted average grant date fair value per share of awards granted (usd per share)
$ 22.82 
$ 34.76 
$ 28.76 
Share-Based Compensation - Summary of Activity of Awards Granted under Share Saving Plan (Details) (Saving Share Plans, USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Saving Share Plans
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
 
Beginning Balance (shares)
0.2 
 
Granted (shares)
0.2 
 
Exercised (shares)
 
Lapsed (shares)
(0.1)
 
Ending Balance (shares)
0.3 
0.2 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
 
 
Beginning Balance (usd per share)
$ 94.07 
 
Granted (usd per share)
$ 67.24 
 
Exercised (usd per share)
$ 48.78 
 
Lapsed (usd per share)
$ 101.34 
 
Ending Balance (usd per share)
$ 74.30 
$ 94.07 
Weighted average remaining contractual life
1 year 11 months 24 days 
1 year 10 months 24 days 
Intrinsic value
$ 3.0 
$ 4.9 
Shares Exercisable (shares)
Weighted Average Exercise Price, Shares Exercisable (usd per share)
$ 0.00 
$ 0.00 
Intrinsic Value, Shares Exercisable
$ 0 
$ 0 
Share-Based Compensation - Additional Information about Awards Granted under Share Saving Plan (Details) (Saving Share Plans, USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Saving Share Plans
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Weighted average grant date fair value per share of awards granted (usd per share)
$ 22.82 
$ 34.76 
$ 28.76 
Total intrinsic value of options exercised
$ 1.5 
$ 6.4 
$ 11.0 
Cash received from share options exercised
$ 1.4 
$ 4.0 
$ 4.3 
Share-Based Compensation - Additional Information about Awards Granted under Executive Plans (Details) (Executive Plans, USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Executive Plans
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Total intrinsic value of options exercised
$ 0.6 
$ 3.4 
$ 2.9 
Cash received from share options exercised
$ 0.7 
$ 1.0 
$ 1.8 
Commitments and Contingencies - Operating Leases (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
 
 
 
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 
Commitments and Contingencies - Future Minimum Payments (Details) (USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Commitments and Contingencies Disclosure [Abstract]
 
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 
Commitments and Contingencies - Narrative (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended 0 Months Ended 0 Months Ended
Jan. 28, 2017
Property
Jan. 30, 2016
May 28, 2014
Zale Corporation
lawsuit
Aug. 12, 2015
Zale Corporation
May 29, 2014
Zale Corporation
Aug. 1, 2015
Zale Corporation
Jan. 4, 2017
Environmental Protection Agency Collective Action
employee
Loss Contingencies [Line Items]
 
 
 
 
 
 
 
Number of property leases in United Kingdom
26 
 
 
 
 
 
 
Number of additional properties sublet
12 
 
 
 
 
 
 
Capital commitments related to expansion and renovation of stores
$ 48.4 
$ 28.9 
 
 
 
 
 
Number of plaintiffs
 
 
 
 
 
 
10,456 
Number of pending claims
 
 
 
 
 
 
Common stock appraisal demanded and not withdrawn shares
8.8 
 
 
 
 
 
 
Business combination, price per share
 
 
 
$ 21.00 
$ 21 
 
 
Loss contingency accrual, provision
 
 
 
34.2 
 
 
 
Loss contingency, accrual, current
 
 
 
 
 
$ 34.2 
 
Condensed Consolidating Financial Information - Condensed Consolidated Income Statement (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Jan. 28, 2017
Oct. 29, 2016
Jul. 30, 2016
Apr. 30, 2016
Jan. 30, 2016
Oct. 31, 2015
Aug. 1, 2015
May 2, 2015
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Condensed Income Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
$ 2,269.9 
$ 1,186.2 
$ 1,373.4 
$ 1,578.9 
$ 2,392.6 
$ 1,216.4 
$ 1,410.6 
$ 1,530.6 
$ 6,408.4 
$ 6,550.2 
$ 5,736.3 
Cost of sales
 
 
 
 
 
 
 
 
(4,047.6)
(4,109.8)
(3,662.1)
Gross margin
945.5 
350.0 
464.9 
600.4 
1,016.0 
367.7 
490.8 
565.9 
2,360.8 
2,440.4 
2,074.2 
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
(1,880.2)
(1,987.6)
(1,712.9)
Other operating income, net
 
 
 
 
 
 
 
 
282.6 
250.9 
215.3 
Operating income
 
 
 
 
 
 
 
 
763.2 
703.7 
576.6 
Intra-entity interest income (expense)
 
 
 
 
 
 
 
 
 
Interest expense, net
 
 
 
 
 
 
 
 
(49.4)
(45.9)
(36.0)
Income before income taxes
 
 
 
 
 
 
 
 
713.8 
657.8 
540.6 
Income taxes
 
 
 
 
 
 
 
 
(170.6)
(189.9)
(159.3)
Equity in income of subsidiaries
 
 
 
 
 
 
 
 
 
Net income
287.8 
14.8 
81.9 
146.8 
271.9 
15.0 
62.2 
118.8 
543.2 
467.9 
381.3 
Dividends on redeemable convertible preferred shares
 
 
 
 
 
 
 
 
(11.9)
Net income attributable to common shareholders
 
 
 
 
 
 
 
 
531.3 
467.9 
381.3 
Consolidation, Eliminations
 
 
 
 
 
 
 
 
 
 
 
Condensed Income Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
Cost of sales
 
 
 
 
 
 
 
 
Gross margin
 
 
 
 
 
 
 
 
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
Other operating income, net
 
 
 
 
 
 
 
 
Operating income
 
 
 
 
 
 
 
 
Intra-entity interest income (expense)
 
 
 
 
 
 
 
 
Interest expense, net
 
 
 
 
 
 
 
 
Income before income taxes
 
 
 
 
 
 
 
 
Income taxes
 
 
 
 
 
 
 
 
Equity in income of subsidiaries
 
 
 
 
 
 
 
 
(1,116.6)
(1,045.4)
(1,529.0)
Net income
 
 
 
 
 
 
 
 
(1,116.6)
(1,045.4)
(1,529.0)
Dividends on redeemable convertible preferred shares
 
 
 
 
 
 
 
 
Net income attributable to common shareholders
 
 
 
 
 
 
 
 
(1,116.6)
(1,045.4)
(1,529.0)
Signet Jewelers Limited |
Reportable Legal Entities
 
 
 
 
 
 
 
 
 
 
 
Condensed Income Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
Cost of sales
 
 
 
 
 
 
 
 
Gross margin
 
 
 
 
 
 
 
 
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
(1.3)
(2.2)
(2.5)
Other operating income, net
 
 
 
 
 
 
 
 
Operating income
 
 
 
 
 
 
 
 
(1.3)
(2.2)
(2.5)
Intra-entity interest income (expense)
 
 
 
 
 
 
 
 
Interest expense, net
 
 
 
 
 
 
 
 
Income before income taxes
 
 
 
 
 
 
 
 
(1.3)
(2.2)
(2.5)
Income taxes
 
 
 
 
 
 
 
 
Equity in income of subsidiaries
 
 
 
 
 
 
 
 
544.5 
470.1 
383.8 
Net income
 
 
 
 
 
 
 
 
543.2 
467.9 
381.3 
Net income attributable to common shareholders
 
 
 
 
 
 
 
 
531.3 
467.9 
381.3 
Signet UK Finance plc |
Reportable Legal Entities
 
 
 
 
 
 
 
 
 
 
 
Condensed Income Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
Cost of sales
 
 
 
 
 
 
 
 
Gross margin
 
 
 
 
 
 
 
 
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
Other operating income, net
 
 
 
 
 
 
 
 
Operating income
 
 
 
 
 
 
 
 
Intra-entity interest income (expense)
 
 
 
 
 
 
 
 
18.8 
18.8 
13.2 
Interest expense, net
 
 
 
 
 
 
 
 
(19.8)
(19.9)
(13.9)
Income before income taxes
 
 
 
 
 
 
 
 
(1.0)
(1.1)
(0.7)
Income taxes
 
 
 
 
 
 
 
 
0.2 
0.2 
0.1 
Equity in income of subsidiaries
 
 
 
 
 
 
 
 
Net income
 
 
 
 
 
 
 
 
(0.8)
(0.9)
(0.6)
Dividends on redeemable convertible preferred shares
 
 
 
 
 
 
 
 
Net income attributable to common shareholders
 
 
 
 
 
 
 
 
(0.8)
(0.9)
(0.6)
Guarantor Subsidiaries |
Reportable Legal Entities
 
 
 
 
 
 
 
 
 
 
 
Condensed Income Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
6,141.9 
6,444.8 
5,671.4 
Cost of sales
 
 
 
 
 
 
 
 
(3,997.2)
(4,089.3)
(3,647.0)
Gross margin
 
 
 
 
 
 
 
 
2,144.7 
2,355.5 
2,024.4 
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
(1,775.1)
(1,942.7)
(1,683.6)
Other operating income, net
 
 
 
 
 
 
 
 
293.8 
254.8 
220.8 
Operating income
 
 
 
 
 
 
 
 
663.4 
667.6 
561.6 
Intra-entity interest income (expense)
 
 
 
 
 
 
 
 
(188.4)
(186.0)
(129.6)
Interest expense, net
 
 
 
 
 
 
 
 
(16.6)
(14.8)
(14.8)
Income before income taxes
 
 
 
 
 
 
 
 
458.4 
466.8 
417.2 
Income taxes
 
 
 
 
 
 
 
 
(175.1)
(192.7)
(159.5)
Equity in income of subsidiaries
 
 
 
 
 
 
 
 
276.4 
281.4 
579.8 
Net income
 
 
 
 
 
 
 
 
559.7 
555.5 
837.5 
Dividends on redeemable convertible preferred shares
 
 
 
 
 
 
 
 
Net income attributable to common shareholders
 
 
 
 
 
 
 
 
559.7 
555.5 
837.5 
Non-Guarantor Subsidiaries |
Reportable Legal Entities
 
 
 
 
 
 
 
 
 
 
 
Condensed Income Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
266.5 
105.4 
64.9 
Cost of sales
 
 
 
 
 
 
 
 
(50.4)
(20.5)
(15.1)
Gross margin
 
 
 
 
 
 
 
 
216.1 
84.9 
49.8 
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
(103.8)
(42.7)
(26.8)
Other operating income, net
 
 
 
 
 
 
 
 
(11.2)
(3.9)
(5.5)
Operating income
 
 
 
 
 
 
 
 
101.1 
38.3 
17.5 
Intra-entity interest income (expense)
 
 
 
 
 
 
 
 
169.6 
167.2 
116.4 
Interest expense, net
 
 
 
 
 
 
 
 
(13.0)
(11.2)
(7.3)
Income before income taxes
 
 
 
 
 
 
 
 
257.7 
194.3 
126.6 
Income taxes
 
 
 
 
 
 
 
 
4.3 
2.6 
0.1 
Equity in income of subsidiaries
 
 
 
 
 
 
 
 
295.7 
293.9 
565.4 
Net income
 
 
 
 
 
 
 
 
557.7 
490.8 
692.1 
Dividends on redeemable convertible preferred shares
 
 
 
 
 
 
 
 
Net income attributable to common shareholders
 
 
 
 
 
 
 
 
$ 557.7 
$ 490.8 
$ 692.1 
Condensed Consolidating Financial Information - Condensed Consolidated Statement of Comprehensive Income (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Jan. 28, 2017
Oct. 29, 2016
Jul. 30, 2016
Apr. 30, 2016
Jan. 30, 2016
Oct. 31, 2015
Aug. 1, 2015
May 2, 2015
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Condensed Statement of Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net income
$ 287.8 
$ 14.8 
$ 81.9 
$ 146.8 
$ 271.9 
$ 15.0 
$ 62.2 
$ 118.8 
$ 543.2 
$ 467.9 
$ 381.3 
Other comprehensive (loss) income:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
 
 
 
 
 
 
 
 
(25.6)
(40.2)
(60.6)
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain (loss)
 
 
 
 
 
 
 
 
(0.4)
Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain (loss)
 
 
 
 
 
 
 
 
6.9 
(11.8)
6.2 
Reclassification adjustment for losses to net income
 
 
 
 
 
 
 
 
(0.6)
3.5 
12.5 
Pension plan:
 
 
 
 
 
 
 
 
 
 
 
Actuarial gain (loss)
 
 
 
 
 
 
 
 
(13.6)
10.9 
(15.8)
Reclassification adjustment to net income for amortization of actuarial losses
 
 
 
 
 
 
 
 
1.2 
2.7 
1.6 
Prior service costs
 
 
 
 
 
 
 
 
(0.4)
(0.5)
(0.7)
Reclassification adjustment to net income for amortization of net prior service credits
 
 
 
 
 
 
 
 
(1.5)
(1.7)
(1.3)
Total other comprehensive (loss) income
 
 
 
 
 
 
 
 
(33.6)
(37.5)
(58.1)
Total comprehensive income
 
 
 
 
 
 
 
 
509.6 
430.4 
323.2 
Consolidation, Eliminations
 
 
 
 
 
 
 
 
 
 
 
Condensed Statement of Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net income
 
 
 
 
 
 
 
 
(1,116.6)
(1,045.4)
(1,529.0)
Other comprehensive (loss) income:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
 
 
 
 
 
 
 
 
25.6 
40.2 
56.5 
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain (loss)
 
 
 
 
 
 
 
 
0.4 
Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain (loss)
 
 
 
 
 
 
 
 
(6.9)
11.8 
(6.2)
Reclassification adjustment for losses to net income
 
 
 
 
 
 
 
 
0.6 
(3.5)
(12.5)
Pension plan:
 
 
 
 
 
 
 
 
 
 
 
Actuarial gain (loss)
 
 
 
 
 
 
 
 
13.6 
(10.9)
15.8 
Reclassification adjustment to net income for amortization of actuarial losses
 
 
 
 
 
 
 
 
(1.2)
(2.7)
(1.6)
Prior service costs
 
 
 
 
 
 
 
 
0.4 
0.5 
0.7 
Reclassification adjustment to net income for amortization of net prior service credits
 
 
 
 
 
 
 
 
1.5 
1.7 
1.3 
Total other comprehensive (loss) income
 
 
 
 
 
 
 
 
33.6 
37.5 
54.0 
Total comprehensive income
 
 
 
 
 
 
 
 
(1,083.0)
(1,007.9)
(1,475.0)
Signet Jewelers Limited |
Reportable Legal Entities
 
 
 
 
 
 
 
 
 
 
 
Condensed Statement of Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net income
 
 
 
 
 
 
 
 
543.2 
467.9 
381.3 
Other comprehensive (loss) income:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
 
 
 
 
 
 
 
 
(25.6)
(40.2)
(60.6)
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain (loss)
 
 
 
 
 
 
 
 
(0.4)
Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain (loss)
 
 
 
 
 
 
 
 
6.9 
(11.8)
6.2 
Reclassification adjustment for losses to net income
 
 
 
 
 
 
 
 
(0.6)
3.5 
12.5 
Pension plan:
 
 
 
 
 
 
 
 
 
 
 
Actuarial gain (loss)
 
 
 
 
 
 
 
 
(13.6)
10.9 
(15.8)
Reclassification adjustment to net income for amortization of actuarial losses
 
 
 
 
 
 
 
 
1.2 
2.7 
1.6 
Prior service costs
 
 
 
 
 
 
 
 
(0.4)
(0.5)
(0.7)
Reclassification adjustment to net income for amortization of net prior service credits
 
 
 
 
 
 
 
 
(1.5)
(1.7)
(1.3)
Total other comprehensive (loss) income
 
 
 
 
 
 
 
 
(33.6)
(37.5)
(58.1)
Total comprehensive income
 
 
 
 
 
 
 
 
509.6 
430.4 
323.2 
Signet UK Finance plc |
Reportable Legal Entities
 
 
 
 
 
 
 
 
 
 
 
Condensed Statement of Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net income
 
 
 
 
 
 
 
 
(0.8)
(0.9)
(0.6)
Other comprehensive (loss) income:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
 
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain (loss)
 
 
 
 
 
 
 
 
Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain (loss)
 
 
 
 
 
 
 
 
Reclassification adjustment for losses to net income
 
 
 
 
 
 
 
 
Pension plan:
 
 
 
 
 
 
 
 
 
 
 
Actuarial gain (loss)
 
 
 
 
 
 
 
 
Reclassification adjustment to net income for amortization of actuarial losses
 
 
 
 
 
 
 
 
Prior service costs
 
 
 
 
 
 
 
 
Reclassification adjustment to net income for amortization of net prior service credits
 
 
 
 
 
 
 
 
Total other comprehensive (loss) income
 
 
 
 
 
 
 
 
Total comprehensive income
 
 
 
 
 
 
 
 
(0.8)
(0.9)
(0.6)
Guarantor Subsidiaries |
Reportable Legal Entities
 
 
 
 
 
 
 
 
 
 
 
Condensed Statement of Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net income
 
 
 
 
 
 
 
 
559.7 
555.5 
837.5 
Other comprehensive (loss) income:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
 
 
 
 
 
 
 
 
(31.2)
(44.8)
(61.1)
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain (loss)
 
 
 
 
 
 
 
 
Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain (loss)
 
 
 
 
 
 
 
 
6.9 
(11.8)
6.2 
Reclassification adjustment for losses to net income
 
 
 
 
 
 
 
 
(0.6)
3.5 
12.5 
Pension plan:
 
 
 
 
 
 
 
 
 
 
 
Actuarial gain (loss)
 
 
 
 
 
 
 
 
(13.6)
10.9 
(15.8)
Reclassification adjustment to net income for amortization of actuarial losses
 
 
 
 
 
 
 
 
1.2 
2.7 
1.6 
Prior service costs
 
 
 
 
 
 
 
 
(0.4)
(0.5)
(0.7)
Reclassification adjustment to net income for amortization of net prior service credits
 
 
 
 
 
 
 
 
(1.5)
(1.7)
(1.3)
Total other comprehensive (loss) income
 
 
 
 
 
 
 
 
(39.2)
(41.7)
(58.6)
Total comprehensive income
 
 
 
 
 
 
 
 
520.5 
513.8 
778.9 
Non-Guarantor Subsidiaries |
Reportable Legal Entities
 
 
 
 
 
 
 
 
 
 
 
Condensed Statement of Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net income
 
 
 
 
 
 
 
 
557.7 
490.8 
692.1 
Other comprehensive (loss) income:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
 
 
 
 
 
 
 
 
5.6 
4.6 
4.6 
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain (loss)
 
 
 
 
 
 
 
 
(0.4)
Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain (loss)
 
 
 
 
 
 
 
 
Reclassification adjustment for losses to net income
 
 
 
 
 
 
 
 
Pension plan:
 
 
 
 
 
 
 
 
 
 
 
Actuarial gain (loss)
 
 
 
 
 
 
 
 
Reclassification adjustment to net income for amortization of actuarial losses
 
 
 
 
 
 
 
 
Prior service costs
 
 
 
 
 
 
 
 
Reclassification adjustment to net income for amortization of net prior service credits
 
 
 
 
 
 
 
 
Total other comprehensive (loss) income
 
 
 
 
 
 
 
 
5.6 
4.2 
4.6 
Total comprehensive income
 
 
 
 
 
 
 
 
$ 563.3 
$ 495.0 
$ 696.7 
Condensed Consolidating Financial Information - Condensed Consolidated Balance Sheet (Details) (USD $)
In Millions, unless otherwise specified
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Feb. 1, 2014
Current assets:
 
 
 
 
Cash and cash equivalents
$ 98.7 
$ 137.7 
$ 193.6 
$ 247.6 
Accounts receivable, net
1,858.0 
1,756.4 
 
 
Intra-entity receivables, net
 
 
Other receivables
95.9 
84.0 
 
 
Other current assets
136.3 
152.6 
 
 
Income taxes
4.4 
3.5 
 
 
Inventories
2,449.3 
2,453.9 
 
 
Total current assets
4,642.6 
4,588.1 
 
 
Non-current assets:
 
 
 
 
Property, plant and equipment, net
822.9 
727.6 
 
 
Goodwill
517.6 
515.5 
519.2 
 
Intangible assets, net
417.0 
427.8 
 
 
Investment in subsidiaries
 
 
 
Intra-entity receivables, net
 
 
 
Other assets
165.1 
154.6 
 
 
Deferred tax assets
0.7 
 
 
Retirement benefit asset
31.9 
51.3 
 
 
Total assets
6,597.8 
6,464.9 
 
 
Current liabilities:
 
 
 
 
Loans and overdrafts
91.1 
57.7 
 
 
Accounts payable
255.7 
269.1 
 
 
Intra-entity payables, net
 
 
 
Accrued expenses and other current liabilities
478.2 
498.3 
 
 
Deferred revenue
276.9 
260.3 
 
 
Income taxes
101.8 
65.7 
 
 
Total current liabilities
1,203.7 
1,151.1 
 
 
Non-current liabilities:
 
 
 
 
Long-term debt
1,317.9 
1,321.0 
 
 
Other liabilities
213.7 
230.5 
 
 
Deferred revenue
659.0 
629.1 
 
 
Deferred tax liabilities
101.4 
72.5 
 
 
Total liabilities
3,495.7 
3,404.2 
 
 
Shareholders’ equity:
 
 
 
 
Total shareholders’ equity
2,490.2 
3,060.7 
2,810.4 
2,563.1 
Total liabilities, redeemable convertible preferred shares and shareholders’ equity
6,597.8 
6,464.9 
 
 
Consolidation, Eliminations
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
Accounts receivable, net
 
 
Intra-entity receivables, net
(157.8)
(408.8)
 
 
Other receivables
 
 
Other current assets
 
 
Income taxes
 
 
Inventories
 
 
Total current assets
(157.8)
(408.8)
 
 
Non-current assets:
 
 
 
 
Property, plant and equipment, net
 
 
 
Goodwill
 
 
 
Intangible assets, net
 
 
Investment in subsidiaries
(4,430.1)
(4,410.7)
 
 
Intra-entity receivables, net
(4,050.0)
(3,870.0)
 
 
Other assets
 
 
 
Deferred tax assets
 
 
 
Retirement benefit asset
 
 
 
Total assets
(8,637.9)
(8,689.5)
 
 
Current liabilities:
 
 
 
 
Loans and overdrafts
 
 
Accounts payable
 
 
Intra-entity payables, net
(157.8)
(408.8)
 
 
Accrued expenses and other current liabilities
 
 
Deferred revenue
 
 
Income taxes
 
 
Total current liabilities
(157.8)
(408.8)
 
 
Non-current liabilities:
 
 
 
 
Intra-entity payables, net
(4,050.0)
(3,870.0)
 
 
Total liabilities
(4,207.8)
(4,278.8)
 
 
Shareholders’ equity:
 
 
 
 
Total shareholders’ equity
(4,430.1)
(4,410.7)
 
 
Total liabilities, redeemable convertible preferred shares and shareholders’ equity
(8,637.9)
(8,689.5)
 
 
Signet Jewelers Limited |
Reportable Legal Entities
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
1.7 
1.9 
2.1 
1.4 
Accounts receivable, net
 
 
Intra-entity receivables, net
12.7 
28.7 
 
 
Other receivables
 
 
Other current assets
 
0.1 
 
 
Income taxes
 
 
Inventories
 
 
Total current assets
14.4 
30.7 
 
 
Non-current assets:
 
 
 
 
Property, plant and equipment, net
 
 
 
Goodwill
 
 
 
Intangible assets, net
 
 
Investment in subsidiaries
3,117.6 
3,047.8 
 
 
Intra-entity receivables, net
 
 
 
Other assets
 
 
 
Deferred tax assets
 
 
 
Retirement benefit asset
 
 
 
Total assets
3,132.0 
3,078.5 
 
 
Current liabilities:
 
 
 
 
Loans and overdrafts
 
 
Accounts payable
 
 
Intra-entity payables, net
 
 
Accrued expenses and other current liabilities
29.9 
17.8 
 
 
Deferred revenue
 
 
Income taxes
 
 
Total current liabilities
29.9 
17.8 
 
 
Non-current liabilities:
 
 
 
 
Total liabilities
29.9 
17.8 
 
 
Shareholders’ equity:
 
 
 
 
Total shareholders’ equity
2,490.2 
3,060.7 
 
 
Total liabilities, redeemable convertible preferred shares and shareholders’ equity
3,132.0 
3,078.5 
 
 
Signet UK Finance plc |
Reportable Legal Entities
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
0.1 
0.1 
0.1 
Accounts receivable, net
 
 
Intra-entity receivables, net
 
 
Other receivables
 
 
Other current assets
 
 
 
Income taxes
0.2 
 
 
Inventories
 
 
Total current assets
0.1 
0.3 
 
 
Non-current assets:
 
 
 
 
Property, plant and equipment, net
 
 
Goodwill
 
 
Intangible assets, net
 
 
Investment in subsidiaries
 
 
Intra-entity receivables, net
402.9 
402.6 
 
 
Other assets
 
 
 
Deferred tax assets
 
 
Retirement benefit asset
 
 
Total assets
403.0 
402.9 
 
 
Current liabilities:
 
 
 
 
Loans and overdrafts
(0.7)
(0.7)
 
 
Accounts payable
 
 
Intra-entity payables, net
 
 
Accrued expenses and other current liabilities
2.5 
2.4 
 
 
Deferred revenue
 
 
Income taxes
(0.2)
 
 
Total current liabilities
1.6 
1.7 
 
 
Non-current liabilities:
 
 
 
 
Long-term debt
394.3 
393.5 
 
 
Intra-entity payables, net
 
 
 
Other liabilities
 
 
 
Deferred revenue
 
 
 
Total liabilities
395.9 
395.2 
 
 
Shareholders’ equity:
 
 
 
 
Total shareholders’ equity
7.1 
7.7 
 
 
Total liabilities, redeemable convertible preferred shares and shareholders’ equity
403.0 
402.9 
 
 
Guarantor Subsidiaries |
Reportable Legal Entities
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
70.3 
102.0 
166.5 
237.0 
Accounts receivable, net
1,858.0 
1,753.0 
 
 
Intra-entity receivables, net
145.1 
 
 
Other receivables
71.1 
68.8 
 
 
Other current assets
131.4 
144.2 
 
 
Income taxes
4.4 
2.3 
 
 
Inventories
2,371.8 
2,372.7 
 
 
Total current assets
4,652.1 
4,443.0 
 
 
Non-current assets:
 
 
 
 
Property, plant and equipment, net
818.5 
722.3 
 
 
Goodwill
514.0 
511.9 
 
 
Intangible assets, net
417.0 
427.8 
 
 
Investment in subsidiaries
721.6 
762.9 
 
 
Intra-entity receivables, net
 
 
 
Other assets
134.8 
124.5 
 
 
Deferred tax assets
0.6 
 
 
 
Retirement benefit asset
31.9 
51.3 
 
 
Total assets
7,290.5 
7,043.7 
 
 
Current liabilities:
 
 
 
 
Loans and overdrafts
91.8 
58.4 
 
 
Accounts payable
248.2 
260.3 
 
 
Intra-entity payables, net
 
408.8 
 
 
Accrued expenses and other current liabilities
429.2 
467.0 
 
 
Deferred revenue
275.5 
260.3 
 
 
Income taxes
115.5 
68.4 
 
 
Total current liabilities
1,160.2 
1,523.2 
 
 
Non-current liabilities:
 
 
 
 
Long-term debt
323.6 
327.5 
 
 
Intra-entity payables, net
4,050.0 
3,870.0 
 
 
Other liabilities
208.7 
223.6 
 
 
Deferred revenue
659.0 
629.1 
 
 
Deferred tax liabilities
101.4 
73.0 
 
 
Total liabilities
6,502.9 
6,646.4 
 
 
Shareholders’ equity:
 
 
 
 
Total shareholders’ equity
787.6 
397.3 
 
 
Total liabilities, redeemable convertible preferred shares and shareholders’ equity
7,290.5 
7,043.7 
 
 
Non-Guarantor Subsidiaries |
Reportable Legal Entities
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
26.6 
33.7 
24.9 
9.2 
Accounts receivable, net
 
3.4 
 
 
Intra-entity receivables, net
 
380.1 
 
 
Other receivables
24.8 
15.2 
 
 
Other current assets
4.9 
8.3 
 
 
Income taxes
1.0 
 
 
Inventories
77.5 
81.2 
 
 
Total current assets
133.8 
522.9 
 
 
Non-current assets:
 
 
 
 
Property, plant and equipment, net
4.4 
5.3 
 
 
Goodwill
3.6 
3.6 
 
 
Intangible assets, net
 
 
Investment in subsidiaries
590.9 
600.0 
 
 
Intra-entity receivables, net
3,647.1 
3,467.4 
 
 
Other assets
30.3 
30.1 
 
 
Deferred tax assets
0.1 
 
 
 
Retirement benefit asset
 
 
 
Total assets
4,410.2 
4,629.3 
 
 
Current liabilities:
 
 
 
 
Loans and overdrafts
 
 
Accounts payable
7.5 
8.8 
 
 
Intra-entity payables, net
157.8 
 
 
Accrued expenses and other current liabilities
16.6 
11.1 
 
 
Deferred revenue
1.4 
 
 
Income taxes
(13.5)
(2.7)
 
 
Total current liabilities
169.8 
17.2 
 
 
Non-current liabilities:
 
 
 
 
Long-term debt
600.0 
600.0 
 
 
Other liabilities
5.0 
6.9 
 
 
Deferred tax liabilities
 
(0.5)
 
 
Total liabilities
774.8 
623.6 
 
 
Shareholders’ equity:
 
 
 
 
Total shareholders’ equity
3,635.4 
4,005.7 
 
 
Total liabilities, redeemable convertible preferred shares and shareholders’ equity
4,410.2 
4,629.3 
 
 
Series A Redeemable Convertible Preferred Stock
 
 
 
 
Non-current liabilities:
 
 
 
 
Series A redeemable convertible preferred shares
611.9 
 
 
Series A Redeemable Convertible Preferred Stock |
Consolidation, Eliminations
 
 
 
 
Non-current liabilities:
 
 
 
 
Series A redeemable convertible preferred shares
 
 
 
Series A Redeemable Convertible Preferred Stock |
Signet Jewelers Limited |
Reportable Legal Entities
 
 
 
 
Non-current liabilities:
 
 
 
 
Series A redeemable convertible preferred shares
611.9 
 
 
Series A Redeemable Convertible Preferred Stock |
Signet UK Finance plc |
Reportable Legal Entities
 
 
 
 
Non-current liabilities:
 
 
 
 
Series A redeemable convertible preferred shares
 
 
Series A Redeemable Convertible Preferred Stock |
Guarantor Subsidiaries |
Reportable Legal Entities
 
 
 
 
Non-current liabilities:
 
 
 
 
Series A redeemable convertible preferred shares
 
 
Series A Redeemable Convertible Preferred Stock |
Non-Guarantor Subsidiaries |
Reportable Legal Entities
 
 
 
 
Non-current liabilities:
 
 
 
 
Series A redeemable convertible preferred shares
$ 0 
$ 0 
 
 
Condensed Consolidating Financial Information - Condensed Consolidated Statement of Cash Flows (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Cash flows from operating activities:
 
 
 
Net cash provided by (used in) operating activities
$ 678.3 
$ 443.3 
$ 283.0 
Investing activities
 
 
 
Purchase of property, plant and equipment
(278.0)
(226.5)
(220.2)
Investment in subsidiaries
Purchase of available-for-sale securities
(10.4)
(6.2)
(5.7)
Proceeds from available-for-sale securities
10.0 
4.0 
2.5 
Net cash used in investing activities
(278.4)
(228.7)
(1,652.6)
Financing activities
 
 
 
Dividends paid on common shares
(75.6)
(67.1)
(55.3)
Intra-entity dividends paid
Proceeds from issuance of common shares
2.1 
5.0 
6.1 
Proceeds from issuance of redeemable convertible preferred shares, net of issuance costs
611.3 
Excess tax benefit from exercise of share awards
2.4 
6.9 
11.8 
Proceeds from revolving credit facility
1,270.0 
316.0 
260.0 
Repayments of revolving credit facility
(1,214.0)
(316.0)
(260.0)
Payment of debt issuance costs
(2.7)
(20.5)
Repurchase of common shares
(1,000.0)
(130.0)
(29.8)
Net settlement of equity based awards
(4.9)
(8.3)
(18.4)
Principal payments under capital lease obligations
(0.2)
(1.0)
(0.8)
Proceeds from (repayment of) short-term borrowings
(10.2)
(47.1)
39.4 
Intra-entity activity, net
Net cash (used in) provided by financing activities
(438.2)
(266.6)
1,320.9 
Cash and cash equivalents at beginning of period
137.7 
193.6 
247.6 
Decrease in cash and cash equivalents
(38.3)
(52.0)
(48.7)
Effect of exchange rate changes on cash and cash equivalents
(0.7)
(3.9)
(5.3)
Cash and cash equivalents at end of period
98.7 
137.7 
193.6 
Zale
 
 
 
Investing activities
 
 
 
Acquisition of business
(1,429.2)
Consolidation, Eliminations
 
 
 
Cash flows from operating activities:
 
 
 
Net cash provided by (used in) operating activities
(1,630.1)
(195.9)
(153.0)
Investing activities
 
 
 
Purchase of property, plant and equipment
Investment in subsidiaries
610.0 
0.3 
28.9 
Purchase of available-for-sale securities
Proceeds from available-for-sale securities
Net cash used in investing activities
610.0 
0.3 
28.9 
Financing activities
 
 
 
Dividends paid on common shares
Intra-entity dividends paid
1,630.1 
195.9 
953.0 
Proceeds from issuance of common shares
(610.0)
(0.3)
(828.9)
Proceeds from issuance of redeemable convertible preferred shares, net of issuance costs
Excess tax benefit from exercise of share awards
Proceeds from revolving credit facility
Repayments of revolving credit facility
Payment of debt issuance costs
Repurchase of common shares
Net settlement of equity based awards
Principal payments under capital lease obligations
Proceeds from (repayment of) short-term borrowings
Intra-entity activity, net
 
Net cash (used in) provided by financing activities
1,020.1 
195.6 
124.1 
Cash and cash equivalents at beginning of period
Decrease in cash and cash equivalents
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at end of period
Consolidation, Eliminations |
Zale
 
 
 
Investing activities
 
 
 
Acquisition of business
Signet Jewelers Limited |
Reportable Legal Entities
 
 
 
Cash flows from operating activities:
 
 
 
Net cash provided by (used in) operating activities
1,057.9 
98.6 
150.5 
Investing activities
 
 
 
Purchase of property, plant and equipment
Investment in subsidiaries
(610.0)
 
 
Purchase of available-for-sale securities
Proceeds from available-for-sale securities
Net cash used in investing activities
(610.0)
Financing activities
 
 
 
Dividends paid on common shares
(75.6)
(67.1)
(55.3)
Intra-entity dividends paid
Proceeds from issuance of common shares
2.1 
5.0 
6.1 
Proceeds from issuance of redeemable convertible preferred shares, net of issuance costs
611.3 
Excess tax benefit from exercise of share awards
Proceeds from revolving credit facility
Repayments of revolving credit facility
Payment of debt issuance costs
Repurchase of common shares
(1,000.0)
(130.0)
(29.8)
Net settlement of equity based awards
(4.9)
(8.3)
(18.4)
Principal payments under capital lease obligations
Proceeds from (repayment of) short-term borrowings
Intra-entity activity, net
19.0 
101.6 
(52.4)
Net cash (used in) provided by financing activities
(448.1)
(98.8)
(149.8)
Cash and cash equivalents at beginning of period
1.9 
2.1 
1.4 
Decrease in cash and cash equivalents
(0.2)
(0.2)
0.7 
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at end of period
1.7 
1.9 
2.1 
Signet Jewelers Limited |
Reportable Legal Entities |
Zale
 
 
 
Investing activities
 
 
 
Acquisition of business
Signet UK Finance plc |
Reportable Legal Entities
 
 
 
Cash flows from operating activities:
 
 
 
Net cash provided by (used in) operating activities
0.1 
(0.1)
2.2 
Investing activities
 
 
 
Purchase of property, plant and equipment
Investment in subsidiaries
Purchase of available-for-sale securities
Proceeds from available-for-sale securities
Net cash used in investing activities
Financing activities
 
 
 
Dividends paid on common shares
Intra-entity dividends paid
Proceeds from issuance of common shares
 
0.3 
8.9 
Proceeds from issuance of redeemable convertible preferred shares, net of issuance costs
Excess tax benefit from exercise of share awards
Proceeds from revolving credit facility
Repayments of revolving credit facility
Payment of debt issuance costs
 
(7.0)
Repurchase of common shares
Net settlement of equity based awards
Principal payments under capital lease obligations
Proceeds from (repayment of) short-term borrowings
Intra-entity activity, net
(0.1)
(0.2)
(402.4)
Net cash (used in) provided by financing activities
(0.1)
0.1 
(2.1)
Cash and cash equivalents at beginning of period
0.1 
0.1 
Decrease in cash and cash equivalents
 
0.1 
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at end of period
0.1 
0.1 
0.1 
Signet UK Finance plc |
Reportable Legal Entities |
Zale
 
 
 
Investing activities
 
 
 
Acquisition of business
Guarantor Subsidiaries |
Reportable Legal Entities
 
 
 
Cash flows from operating activities:
 
 
 
Net cash provided by (used in) operating activities
724.8 
325.7 
166.6 
Investing activities
 
 
 
Purchase of property, plant and equipment
(277.9)
(225.9)
(219.8)
Investment in subsidiaries
 
(0.3)
(18.9)
Purchase of available-for-sale securities
Proceeds from available-for-sale securities
Net cash used in investing activities
(277.9)
(226.2)
(1,669.8)
Financing activities
 
 
 
Dividends paid on common shares
Intra-entity dividends paid
(730.0)
(149.3)
(953.0)
Proceeds from issuance of common shares
610.0 
10.0 
Proceeds from issuance of redeemable convertible preferred shares, net of issuance costs
Excess tax benefit from exercise of share awards
2.4 
6.9 
11.8 
Proceeds from revolving credit facility
1,270.0 
316.0 
260.0 
Repayments of revolving credit facility
(1,214.0)
(316.0)
(260.0)
Payment of debt issuance costs
(2.1)
(10.7)
Repurchase of common shares
Net settlement of equity based awards
Principal payments under capital lease obligations
(0.2)
(1.0)
(0.8)
Proceeds from (repayment of) short-term borrowings
(10.2)
(47.1)
39.4 
Intra-entity activity, net
(386.6)
54.9 
1,957.9 
Net cash (used in) provided by financing activities
(477.1)
(160.6)
1,444.6 
Cash and cash equivalents at beginning of period
102.0 
166.5 
237.0 
Decrease in cash and cash equivalents
(30.2)
(61.1)
(58.6)
Effect of exchange rate changes on cash and cash equivalents
(1.5)
(3.4)
(11.9)
Cash and cash equivalents at end of period
70.3 
102.0 
166.5 
Guarantor Subsidiaries |
Reportable Legal Entities |
Zale
 
 
 
Investing activities
 
 
 
Acquisition of business
 
 
(1,431.1)
Non-Guarantor Subsidiaries |
Reportable Legal Entities
 
 
 
Cash flows from operating activities:
 
 
 
Net cash provided by (used in) operating activities
525.6 
215.0 
116.7 
Investing activities
 
 
 
Purchase of property, plant and equipment
(0.1)
(0.6)
(0.4)
Investment in subsidiaries
 
 
(10.0)
Purchase of available-for-sale securities
(10.4)
(6.2)
(5.7)
Proceeds from available-for-sale securities
10.0 
4.0 
2.5 
Net cash used in investing activities
(0.5)
(2.8)
(11.7)
Financing activities
 
 
 
Dividends paid on common shares
Intra-entity dividends paid
(900.1)
(46.6)
 
Proceeds from issuance of common shares
 
 
810.0 
Excess tax benefit from exercise of share awards
Proceeds from revolving credit facility
Repayments of revolving credit facility
Payment of debt issuance costs
(0.6)
(2.8)
Repurchase of common shares
Net settlement of equity based awards
Principal payments under capital lease obligations
Proceeds from (repayment of) short-term borrowings
Intra-entity activity, net
367.7 
(156.3)
(1,503.1)
Net cash (used in) provided by financing activities
(533.0)
(202.9)
(95.9)
Cash and cash equivalents at beginning of period
33.7 
24.9 
9.2 
Decrease in cash and cash equivalents
(7.9)
9.3 
9.1 
Effect of exchange rate changes on cash and cash equivalents
0.8 
(0.5)
6.6 
Cash and cash equivalents at end of period
26.6 
33.7 
24.9 
Non-Guarantor Subsidiaries |
Reportable Legal Entities |
Zale
 
 
 
Investing activities
 
 
 
Acquisition of business
 
 
1.9 
Senior Notes
 
 
 
Financing activities
 
 
 
Proceeds from debt
398.4 
Senior Notes |
Consolidation, Eliminations
 
 
 
Financing activities
 
 
 
Proceeds from debt
Senior Notes |
Signet Jewelers Limited |
Reportable Legal Entities
 
 
 
Financing activities
 
 
 
Proceeds from debt
Senior Notes |
Signet UK Finance plc |
Reportable Legal Entities
 
 
 
Financing activities
 
 
 
Proceeds from debt
398.4 
Senior Notes |
Non-Guarantor Subsidiaries |
Reportable Legal Entities
 
 
 
Financing activities
 
 
 
Proceeds from debt
Term Loan
 
 
 
Financing activities
 
 
 
Proceeds from debt
400.0 
Repayments of term loan
(16.4)
(25.0)
(10.0)
Term Loan |
Consolidation, Eliminations
 
 
 
Financing activities
 
 
 
Proceeds from debt
Repayments of term loan
Term Loan |
Signet Jewelers Limited |
Reportable Legal Entities
 
 
 
Financing activities
 
 
 
Proceeds from debt
Repayments of term loan
Term Loan |
Signet UK Finance plc |
Reportable Legal Entities
 
 
 
Financing activities
 
 
 
Proceeds from debt
Repayments of term loan
Term Loan |
Guarantor Subsidiaries |
Reportable Legal Entities
 
 
 
Financing activities
 
 
 
Proceeds from debt
 
 
400.0 
Repayments of term loan
(16.4)
(25.0)
(10.0)
Term Loan |
Non-Guarantor Subsidiaries |
Reportable Legal Entities
 
 
 
Financing activities
 
 
 
Proceeds from debt
Repayments of term loan
Securitization facility
 
 
 
Financing activities
 
 
 
Proceeds from debt
2,404.1 
2,303.9 
1,941.9 
Repayments of term loan
(2,404.1)
(2,303.9)
(1,341.9)
Securitization facility |
Consolidation, Eliminations
 
 
 
Financing activities
 
 
 
Proceeds from debt
Repayments of term loan
Securitization facility |
Signet Jewelers Limited |
Reportable Legal Entities
 
 
 
Financing activities
 
 
 
Proceeds from debt
Repayments of term loan
Securitization facility |
Signet UK Finance plc |
Reportable Legal Entities
 
 
 
Financing activities
 
 
 
Proceeds from debt
Repayments of term loan
Securitization facility |
Non-Guarantor Subsidiaries |
Reportable Legal Entities
 
 
 
Financing activities
 
 
 
Proceeds from debt
2,404.1 
2,303.9 
1,941.9 
Repayments of term loan
$ (2,404.1)
$ (2,303.9)
$ (1,341.9)
Quarterly Financial Information - Unaudited (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Jan. 28, 2017
Oct. 29, 2016
Jul. 30, 2016
Apr. 30, 2016
Jan. 30, 2016
Oct. 31, 2015
Aug. 1, 2015
May 2, 2015
Jan. 28, 2017
Jan. 30, 2016
Jan. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Sales
$ 2,269.9 
$ 1,186.2 
$ 1,373.4 
$ 1,578.9 
$ 2,392.6 
$ 1,216.4 
$ 1,410.6 
$ 1,530.6 
$ 6,408.4 
$ 6,550.2 
$ 5,736.3 
Gross margin
945.5 
350.0 
464.9 
600.4 
1,016.0 
367.7 
490.8 
565.9 
2,360.8 
2,440.4 
2,074.2 
Net income
$ 287.8 
$ 14.8 
$ 81.9 
$ 146.8 
$ 271.9 
$ 15.0 
$ 62.2 
$ 118.8 
$ 543.2 
$ 467.9 
$ 381.3 
Earnings per common share:
 
 
 
 
 
 
 
 
 
 
 
Earnings per share - basic (usd per share)
$ 4.17 
$ 0.20 
$ 1.06 
$ 1.87 
$ 3.43 
$ 0.19 
$ 0.78 
$ 1.49 
$ 7.13 
$ 5.89 
$ 4.77 
Earnings per share - diluted (usd per share)
$ 3.92 
$ 0.20 
$ 1.06 
$ 1.87 
$ 3.42 
$ 0.19 
$ 0.78 
$ 1.48 
$ 7.08 
$ 5.87 
$ 4.75