SIGNET JEWELERS LTD, 10-Q filed on 6/6/2019
Quarterly Report
v3.19.1
Document and Entity Information - shares
3 Months Ended
May 04, 2019
May 31, 2019
Document And Entity Information [Abstract]    
Document type 10-Q  
Amendment flag false  
Document period end date May 04, 2019  
Document fiscal year focus 2020  
Document fiscal period focus Q1  
Trading symbol SIG  
Entity registrant name SIGNET JEWELERS LTD  
Entity Central Index Key 0000832988  
Entity Emerging Growth Company false  
Entity Small Business false  
Current Fiscal Year End Date --02-02  
Entity Filer Category Large Accelerated Filer  
Entity Common Stock, Shares outstanding   52,191,117
v3.19.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
shares in Millions, $ in Millions
3 Months Ended
May 04, 2019
May 05, 2018
Sales $ 1,431.7 $ 1,480.6
Cost of sales (932.3) (995.8)
Gross margin 499.4 484.8
Selling, general and administrative expenses (475.2) (482.8)
Credit transaction, net 0.0 (143.1)
Restructuring charges (26.8) (6.5)
Goodwill and intangible impairments 0.0 (448.7)
Other operating income, net 0.0 22.1
Operating income (loss) (2.6) (574.2)
Interest expense, net (9.2) (8.9)
Other non-operating income 0.3 0.6
Income (loss) before income taxes (11.5) (582.5)
Income taxes 1.5 85.9
Net income (loss) (10.0) (496.6)
Dividends on redeemable convertible preferred shares (8.2) (8.2)
Net income (loss) attributable to common shareholders $ (18.2) $ (504.8)
Earnings (loss) per common share:    
Earnings per common share: basic (usd per share) $ (0.35) $ (8.48)
Earnings per common share: diluted (usd per share) $ (0.35) $ (8.48)
Weighted average common shares outstanding:    
Weighted average common shares outstanding: basic (shares) 51.6 59.5
Weighted average common shares outstanding: diluted (shares) 51.6 59.5
Restructuring Charges    
Cost of sales $ 0.0 $ 0.0
v3.19.1
Condensed Consolidated Statements Of Comprehensive Income (Loss) (Unaudited) - USD ($)
$ in Millions
3 Months Ended
May 04, 2019
May 05, 2018
Pre-tax amount    
Foreign currency translation adjustments $ (2.0) $ (21.7)
Available-for-sale securities:    
Unrealized gain (loss) 0.3 (0.2)
Impact from the adoption of new accounting pronouncements [1] 0.0 (1.1)
Cash flow hedges:    
Unrealized gain (loss) (4.3)  
Current period gains (losses) recognized in OCI   1.9
Reclassification adjustment for gains to net income (0.5)  
Reclassification adjustment for gains to net income   (0.5)
Pension plan:    
Reclassification adjustment to net income for amortization of actuarial losses 0.3 0.3
Reclassification adjustment to net income for amortization of prior service credits 0.0 (0.1)
Total other comprehensive income (loss) (6.2) (21.4)
Tax (expense) benefit    
Foreign currency translation adjustments 0.0 0.0
Available-for-sale securities:    
Unrealized gain (loss) 0.0 0.0
Impact from the adoption of new accounting pronouncements [1] 0.0 0.3
Cash flow hedges:    
Unrealized gain (loss) 1.1  
Unrealized gain (loss)   (0.4)
Reclassification adjustment for gains to net income 0.1  
Reclassification adjustment for gains to net income   0.2
Pension plan:    
Reclassification adjustment to net income for amortization of actuarial losses (0.1) 0.0
Reclassification adjustment to net income for amortization of prior service credits 0.0 0.0
Total other comprehensive loss 1.1 0.1
After-tax amount    
Net income (loss) (10.0) (496.6)
Foreign currency translation adjustments (2.0) (21.7)
Available-for-sale securities:    
Unrealized gain (loss) 0.3 (0.2)
Impact from the adoption of new accounting pronouncements [1] 0.0 (0.8)
Cash flow hedges:    
Unrealized gain (loss) (3.2)  
Unrealized gain (loss)   1.5
Reclassification adjustment for gains to net income (0.4)  
Reclassification adjustment for gains to net income   (0.3)
Pension plan:    
Reclassification adjustment to net income for amortization of actuarial losses 0.2 0.3
Reclassification adjustment to net income for amortization of prior service credits 0.0 (0.1)
Total other comprehensive income (loss) (5.1) (21.3)
Total comprehensive income (loss) $ (15.1) $ (517.9)
[1] Adjustment reflects the reclassification of unrealized gains related to the Company’s available-for-sale equity securities as of February 3, 2018 from AOCI into retained earnings associated with the adoption of ASU 2016-1.
v3.19.1
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Millions
May 04, 2019
Feb. 02, 2019
May 05, 2018
Current assets:      
Cash and cash equivalents $ 195.1 $ 195.4 $ 153.9
Accounts receivable 23.1 23.7 491.4
Other current assets 205.5 244.0 236.8
Income taxes 4.8 5.8 55.2
Inventories 2,394.2 2,386.9 2,429.0
Total current assets 2,822.7 2,855.8 3,366.3
Non-current assets:      
Property, plant and equipment, net of accumulated depreciation of $1,319.6, $1,282.8 and $1,227.3, respectively 776.1 800.5 847.2
Operating lease right-of-use assets 1,822.8    
Goodwill 296.4 296.6 509.1
Intangible assets, net 264.1 265.0 343.2
Other assets 189.2 181.2 206.3
Deferred tax assets 22.0 21.0 0.8
Total assets 6,193.3 4,420.1 5,272.9
Current liabilities:      
Loans and overdrafts 43.7 78.8 72.3
Accounts payable 238.3 153.7 287.5
Accrued expenses and other current liabilities 420.2 502.8 463.7
Deferred revenue 277.0 270.0 284.9
Operating lease liabilities 358.9    
Income taxes 24.1 27.7 0.0
Total current liabilities 1,362.2 1,033.0 1,108.4
Non-current liabilities:      
Long-term debt 639.0 649.6 679.7
Operating lease liabilities 1,589.4    
Other liabilities 126.0 224.1 236.5
Deferred revenue 699.6 696.5 667.5
Deferred tax liabilities 0.0 0.0 74.2
Total liabilities 4,416.2 2,603.2 2,766.3
Commitments and contingencies
Shareholders’ equity:      
Common shares of $0.18 par value: authorized 500 shares, 52.2 shares outstanding (February 2, 2019: 51.9 outstanding; May 5, 2018: 59.2 outstanding) 12.6 12.6 15.7
Additional paid-in capital 232.7 236.5 281.4
Other reserves 0.4 0.4 0.4
Treasury shares at cost: 17.8 shares (February 2, 2019: 18.1 shares; May 5, 2018: 28.0 shares) (999.8) (1,027.3) (1,992.2)
Retained earnings 2,223.4 2,282.2 3,869.2
Accumulated other comprehensive loss (307.9) (302.8) (281.9)
Total shareholders’ equity 1,161.4 1,201.6 1,892.6
Total liabilities, redeemable convertible preferred shares and shareholders’ equity 6,193.3 4,420.1 5,272.9
Series A Redeemable Convertible Preferred Stock      
Non-current liabilities:      
Series A redeemable convertible preferred shares of $.01 par value: authorized 500 shares, 0.625 shares outstanding (February 2, 2019 and May 5,2018: 0.625 shares outstanding) $ 615.7 $ 615.3 $ 614.0
v3.19.1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
shares in Thousands, $ in Millions
May 04, 2019
Feb. 02, 2019
May 05, 2018
Accumulated depreciation $ 1,319.6 $ 1,282.8 $ 1,227.3
Common shares, par value (usd per share) $ 0.18 $ 0.18 $ 0.18
Common shares, authorized 500,000 500,000 500,000
Common shares, outstanding 52,200 51,900 59,200
Treasury shares, shares 17,800 18,100 28,000
Series A Redeemable Convertible Preferred Stock      
Preferred shares, par value (usd per share) $ 0.01 $ 0.01 $ 0.01
Preferred shares, authorized 500,000 500,000 500,000
Preferred shares, outstanding 625 625 625
v3.19.1
Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($)
$ in Millions
3 Months Ended
May 04, 2019
May 05, 2018
Cash flows from operating activities    
Net income (loss) $ (10.0) $ (496.6)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
Amortization of operating lease assets 87.3 0.0
Depreciation and amortization 41.0 49.8
Amortization of unfavorable leases and contracts (1.4) (2.0)
Share-based compensation 4.0 1.8
Deferred taxation 0.0 (18.8)
Credit transaction, net 0.0 141.0
Goodwill and intangible impairments 0.0 448.7
Restructuring charges 5.4 0.0
Other non-cash movements (4.9) 0.0
Changes in operating assets and liabilities:    
Decrease in accounts receivable 0.9 59.9
Decrease in other assets and other receivables 28.1 10.8
Increase in inventories (7.8) (162.4)
Increase in accounts payable 87.7 55.7
(Decrease) increase in accrued expenses and other liabilities (39.9) 15.3
Change in operating lease liabilities (91.4) 0.0
Increase (decrease) in deferred revenue 10.5 (4.3)
Decrease in income taxes payable (2.7) (70.3)
Pension plan contributions (1.4) (0.7)
Net cash provided by operating activities 105.4 27.9
Investing activities    
Purchase of property, plant and equipment (24.6) (26.1)
Purchase of available-for-sale securities (6.1) (0.4)
Proceeds from sale of available-for-sale securities 0.3 1.1
Net cash used in investing activities (30.4) (25.4)
Financing activities    
Dividends paid on common shares (19.2) (18.8)
Dividends paid on redeemable convertible preferred shares (7.8) (7.8)
Repurchase of common shares 0.0 (60.0)
Proceeds from revolving credit facility   40.0
Repayments of bank overdrafts (37.3) (13.9)
Other financing activities (1.5) (2.1)
Net cash used in financing activities (74.7) (69.3)
Cash and cash equivalents at beginning of period 195.4 225.1
Increase (decrease) in cash and cash equivalents 0.3 (66.8)
Effect of exchange rate changes on cash and cash equivalents (0.6) (4.4)
Cash and cash equivalents at end of period 195.1 153.9
Term Loan    
Financing activities    
Repayments of term loans (8.9) (6.7)
Credit Facility | Revolving Credit Facility    
Financing activities    
Proceeds from revolving credit facility $ 0.0 $ 40.0
v3.19.1
Condensed Consolidated Statements Of Shareholders' Equity (Unaudited) - USD ($)
$ in Millions
Total
Common shares at par value
Additional paid-in capital
Other reserves
Treasury shares
Retained earnings
Accumulated other comprehensive loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Impact from adoption of new accounting pronouncements [1]           $ 0.8 $ (0.8)
Beginning Balance at Feb. 03, 2018 $ 2,499.8 $ 15.7 $ 290.2 $ 0.4 $ (1,942.1) 4,396.2 (260.6)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income (loss) (496.6)         (496.6)  
Other comprehensive income (20.5)           (20.5)
Dividends declared: Common shares $0.37 in 2018 and 2019 (21.8)         (21.8)  
Dividends declared: Preferred shares, $12.50 in 2018 and 2019 (8.2)         (8.2)  
Repurchase of common shares (60.0)       (60.0)    
Net settlement of equity based awards (1.9)   (10.6)   9.9 (1.2)  
Share-based compensation expense 1.8   1.8        
Ending Balance at May. 05, 2018 1,892.6 15.7 281.4 0.4 (1,992.2) 3,869.2 (281.9)
Beginning Balance at Feb. 02, 2019 1,201.6 12.6 236.5 0.4 (1,027.3) 2,282.2 (302.8)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income (loss) (10.0)         (10.0)  
Other comprehensive income (5.1)           (5.1)
Dividends declared: Common shares $0.37 in 2018 and 2019 (19.3)         (19.3)  
Dividends declared: Preferred shares, $12.50 in 2018 and 2019 (8.2)         (8.2)  
Net settlement of equity based awards (1.6)   (7.8)   27.5 (21.3)  
Share-based compensation expense 4.0   4.0        
Ending Balance at May. 04, 2019 $ 1,161.4 $ 12.6 $ 232.7 $ 0.4 $ (999.8) $ 2,223.4 $ (307.9)
[1] Adjustment reflects the reclassification of unrealized gains related to the Company’s equity security investments as of February 3, 2018 from AOCI into beginning retained earnings associated with the adoption of ASU 2016-01.
v3.19.1
Condensed Consolidated Statements Of Shareholders' Equity (Unaudited) - Parenthetical - $ / shares
3 Months Ended
May 04, 2019
May 05, 2018
Statement of Stockholders' Equity [Abstract]    
Common stock, dividends (usd per share) $ 0.37 $ 0.37
Preferred stock, dividends (in usd per share) $ 12.50 $ 12.50
v3.19.1
Organization and principal accounting policies
3 Months Ended
May 04, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and principal accounting policies
Organization and principal 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 three reportable segments: North America; International; 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 fourth quarter accounting for approximately 35-40% of annual sales, with December being by far the highest volume month of the year. The “Holiday Season” consists of results for the months of November and December. As a result of our strategic credit outsourcing and transformation initiatives, we anticipate our operating profit will be almost entirely generated in the fourth quarter.
Basis of preparation
The condensed consolidated financial statements of Signet are prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with US generally accepted accounting principles (“US GAAP”) have been condensed or omitted from this report, as is permitted by such rules and regulations. In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of the results for the interim periods. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and notes included in Signet’s Annual Report on Form 10-K for the fiscal year ended February 2, 2019 filed with the SEC on April 3, 2019. Signet has reclassified certain prior year amounts in its consolidated financial statements and notes to the consolidated financial statements to conform to the current year presentation.
Use of estimates
The preparation of these condensed consolidated financial statements, in conformity with US GAAP and SEC regulations for interim reporting, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates and assumptions are primarily made in relation to the valuation of accounts receivable, inventories, deferred revenue, derivatives, employee benefits, income taxes, contingencies, asset impairments, leases, indefinite-lived intangible assets, depreciation and amortization of long-lived assets, as well as accounting for business combinations.
Fiscal year
The Company’s fiscal year ends on the Saturday nearest to January 31st. Fiscal 2020 and Fiscal 2019 refer to the 52 week periods ending February 1, 2020 and February 2, 2019, respectively. Within these condensed consolidated financial statements, the first quarter of the relevant fiscal years 2020 and 2019 refer to the 13 weeks ended May 4, 2019 and May 5, 2018, respectively.
Foreign currency translation
The financial position and operating results of certain foreign operations, including certain subsidiaries operating in the UK as part of the International segment and Canada as part of the North America 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 condensed consolidated statements of equity as a component of accumulated other comprehensive income (loss) (“AOCI”). Gains or losses resulting from foreign currency transactions are included within the condensed consolidated statements of operations.
See Note 9 for additional information regarding the Company’s foreign currency translation.
v3.19.1
New accounting pronouncements
3 Months Ended
May 04, 2019
Accounting Policies [Abstract]  
New accounting pronouncements
New accounting pronouncements
The following section provides a description of new accounting pronouncements ("Accounting Standard Update" or "ASU") issued by the Financial Accounting Standards Board ("FASB") that are applicable to the Company.
New accounting pronouncements adopted during the period
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 remaining 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. Signet adopted ASU 2016-02 and related updates effective February 3, 2019 using the additional transition method provided for in ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements,” which permitted the Company as of the effective date of ASU 2016-02 to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The impact of this approach was deemed immaterial upon adoption of ASU 2016-02.
The Company has elected the practical expedient to account for the lease and non-lease maintenance components as a single lease component. Therefore, for those leases, the lease payments used to measure the lease liability include all of the fixed consideration in the contract. Additionally, the Company utilized the practical expedient relief package, as well as the short-term leases and portfolio approach practical expedients. The effects of the changes made to the Company’s condensed consolidated balance sheet as of February 3, 2019 for the adoption of ASC 842 were as follows:
(in millions)
 
February 2, 2019
 
Adjustments due to ASC 842
 
February 3, 2019
Current assets:
 
 
 
 
 
 
Other current assets
 
$
244.0

 
$
(8.8
)
 
$
235.2

Non-current assets:
 
 
 
 
 
 
Operating lease right-of-use assets
 

 
1,927.2

 
1,927.2

Current liabilities:
 
 
 
 
 
 
Accrued expenses and other current liabilities
 
502.8

 
(109.0
)
 
393.8

Operating lease liabilities
 

 
376.5

 
376.5

Non-current liabilities:
 
 
 
 
 
 
Operating lease liabilities
 

 
1,676.9

 
1,676.9

Other liabilities
 
224.1

 
(26.0
)
 
198.1


See additional disclosure requirements within Note 13.
In addition to the pronouncement above, the following ASUs were adopted as of February 3, 2019. The impact on the Company's consolidated financial statements is described within the table below.
Standard
 
Description
ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, issued August 2017.
 
Expands the types of risk management strategies eligible for hedge accounting, refines the documentation and effectiveness assessment requirements and modifies the presentation and disclosure requirements for hedge accounting activities. The adoption of ASU 2017-12 did not have a material impact on the Company’s financial position or results of operations.
New accounting pronouncements to be adopted in future periods
The Company is also currently evaluating the impact on its financial statements of the following ASUs:
Standard
 
Description
ASU No. 2018-13, Fair Value Measurements (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, issued August 2018.
 
Modifies the disclosure requirements on fair value measurements in Topic 820 and eliminates ‘at a minimum’ from the phrase ‘an entity shall disclose at a minimum’ to promote the appropriate exercise of discretion by entities when considering fair value disclosures and to clarify that materiality is an appropriate consideration. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted.
ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Topic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans, issued August 2018.
 
Modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans and clarifies the disclosure requirements regarding projected benefit obligations and accumulated benefit obligations. The ASU is effective for fiscal years ending after December 15, 2020, with early adoption permitted.
v3.19.1
Revenue recognition
3 Months Ended
May 04, 2019
Revenue from Contract with Customer [Abstract]  
Revenue recognition
Revenue recognition
The following tables provide the Company’s revenue, disaggregated by banner, major product and channel, for the 13 weeks ended May 4, 2019 and May 5, 2018:
 
13 weeks ended May 4, 2019
 
13 weeks ended May 5, 2018
(in millions)
North America
 
International
 
Other
 
Consolidated
 
North America
 
International
 
Other
 
Consolidated
Sales by banner:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Kay
$
574.8

 
$

 
$

 
$
574.8

 
$
583.2

 
$

 
$

 
$
583.2

Zales
285.0

 

 

 
285.0

 
298.1

 

 

 
298.1

Jared
255.0

 

 

 
255.0

 
267.5

 

 

 
267.5

Piercing Pagoda
82.6

 

 

 
82.6

 
74.4

 

 

 
74.4

James Allen
52.0

 

 

 
52.0

 
53.3

 

 

 
53.3

Peoples
41.7

 

 

 
41.7

 
46.7

 

 

 
46.7

Regional banners
9.2

 

 

 
9.2

 
24.6

 

 

 
24.6

International segment

 
111.5

 

 
111.5

 

 
128.7

 

 
128.7

Other(1)

 

 
19.9

 
19.9

 

 

 
4.1

 
4.1

Total sales
$
1,300.3

 
$
111.5

 
$
19.9

 
$
1,431.7

 
$
1,347.8

 
$
128.7

 
$
4.1

 
$
1,480.6

(1)  
Includes sales from Signet’s diamond sourcing initiative.
 
13 weeks ended May 4, 2019
 
13 weeks ended May 5, 2018
(in millions)
North America
 
International
 
Other
 
Consolidated
 
North America
 
International
 
Other
 
Consolidated
Sales by product:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bridal
$
594.7

 
$
48.6

 
$

 
$
643.3

 
$
617.9

 
$
55.6

 
$

 
$
673.5

Fashion
467.4

 
22.4

 

 
489.8

 
461.1

 
25.9

 

 
487.0

Watches
48.2

 
34.0

 

 
82.2

 
52.2

 
39.1

 

 
91.3

Other(1)
190.0

 
6.5

 
19.9

 
216.4

 
216.6

 
8.1

 
4.1

 
228.8

Total sales
$
1,300.3

 
$
111.5

 
$
19.9

 
$
1,431.7

 
$
1,347.8

 
$
128.7

 
$
4.1

 
$
1,480.6

(1)  
Other revenue primarily includes gift, beads and other miscellaneous jewelery sales, repairs, warranty and other miscellaneous non-jewelry sales.
 
13 weeks ended May 4, 2019
 
13 weeks ended May 5, 2018
(in millions)
North America
 
International
 
Other
 
Consolidated
 
North America
 
International
 
Other
 
Consolidated
Sales by channel:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Store
$
1,157.3

 
$
100.2

 
$

 
$
1,257.5

 
$
1,213.7

 
$
116.3

 
$

 
$
1,330.0

E-commerce
143.0

 
11.3

 

 
154.3

 
134.1

 
12.4

 

 
146.5

Other

 

 
19.9

 
19.9

 

 

 
4.1

 
4.1

Total sales
$
1,300.3

 
$
111.5

 
$
19.9

 
$
1,431.7

 
$
1,347.8

 
$
128.7

 
$
4.1

 
$
1,480.6

For the majority of the Company’s transactions, revenue is recognized when there is persuasive evidence of an arrangement, products have been delivered 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 sales 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, a third-party credit card or a lease purchase option. 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 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. Unamortized deferred selling costs as of May 4, 2019, February 2, 2019 and May 5, 2018 were as follows:
(in millions)
May 4, 2019
 
February 2, 2019
 
May 5, 2018
Deferred ESP selling costs
 
 
 
 
 
Other current assets
$
23.8

 
$
23.8

 
$
30.6

Other assets
76.4

 
75.4

 
89.2

Total deferred ESP selling costs
$
100.2

 
$
99.2

 
$
119.8


The North America segment 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. Lifetime ESP revenue is deferred and recognized over a maximum of 17 years of the sale of the warranty contract. Although claims experience varies between our national banners, thereby resulting in different recognition rates, approximately 55% of revenue is recognized within the first two years on a weighted average basis.
The North America segment 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.
Deferred revenue
Deferred revenue is comprised primarily of ESP and sale voucher promotions and other as follows:
(in millions)
May 4, 2019
 
February 2, 2019
 
May 5, 2018
ESP deferred revenue
$
931.3

 
$
927.6

 
$
913.5

Voucher promotions and other
45.3

 
38.9

 
38.9

Total deferred revenue
$
976.6

 
$
966.5

 
$
952.4

 
 
 
 
 
 
Disclosed as:
 
 
 
 
 
Current liabilities
$
277.0

 
$
270.0

 
$
284.9

Non-current liabilities
699.6

 
696.5

 
667.5

Total deferred revenue
$
976.6

 
$
966.5

 
$
952.4

 
 
13 weeks ended
(in millions)
 
May 4, 2019
 
May 5, 2018
ESP deferred revenue, beginning of period
 
$
927.6

 
$
916.1

Plans sold(1)
 
96.0

 
96.0

Revenue recognized
 
(92.3
)
 
(98.6
)
ESP deferred revenue, end of period
 
$
931.3

 
$
913.5

(1) 
Includes impact of foreign exchange translation.
v3.19.1
Segment information
3 Months Ended
May 04, 2019
Segment Reporting [Abstract]  
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 manages its business as three reportable segments: North America; International; and Other. Signet’s sales are derived from the retailing of jewelry, watches, other products and services as generated through the management of its reportable segments.
The North America reportable segment operates across the US and Canada. Its US stores operate nationally in malls and off-mall locations principally as Kay (Kay Jewelers and Kay Jewelers Outlet), Zales (Zales Jewelers and Zales Outlet), Jared (Jared The Galleria Of Jewelry and Jared Vault), James Allen and Piercing Pagoda, which operates through mall-based kiosks. Its Canadian stores operate as the Peoples Jewellers store banner. The segment also operates a variety of mall-based regional banners.
The International reportable segment 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 that are below the quantifiable threshold for separate disclosure as a reportable segment, including subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones and unallocated corporate administrative functions.
 
 
13 weeks ended
(in millions)
 
May 4, 2019
 
May 5, 2018
Sales:
 
 
 
 
North America segment
 
$
1,300.3

 
$
1,347.8

International segment
 
111.5

 
128.7

Other
 
19.9

 
4.1

Total sales
 
$
1,431.7

 
$
1,480.6

 
 
 
 
 
Operating income (loss):
 
 
 
 
North America segment(1)
 
$
48.1

 
$
(537.3
)
International segment
 
(8.0
)
 
(7.6
)
Other(2)
 
(42.7
)
 
(29.3
)
Total operating income (loss)
 
$
(2.6
)
 
$
(574.2
)
(1) 
Operating income (loss) during the 13 weeks ended May 4, 2019 includes a $0.5 million benefit recognized due to a change in inventory reserves previously recognized as part of the Company’s restructuring activities. See Note 5 for additional information. Operating income (loss) during the 13 weeks ended May 5, 2018 includes charges of $448.7 million and $141.0 million related to the goodwill and intangible impairments recognized and valuation losses related to the sale of eligible non-prime in-house accounts receivable, respectively. See Note 14 and Note 11 for additional information.
(2) 
Operating income (loss) during the 13 weeks ended May 4, 2019 includes charges of $27.3 million, primarily related to severance and professional services recorded in conjunction with the Company’s restructuring activities. Operating income (loss) during the 13 weeks ended May 5, 2018 includes charges of $6.5 million recorded in conjunction with the Company’s restructuring activities. See Note 5 for additional information.
(in millions)
May 4, 2019
 
February 2, 2019
 
May 5, 2018
Total assets:
 
 
 
 
 
North America segment
$
5,437.4

 
$
3,943.0

 
$
4,722.3

International segment
608.1

 
367.4

 
401.7

Other
147.8

 
109.7

 
148.9

Total assets
$
6,193.3

 
$
4,420.1

 
$
5,272.9

v3.19.1
Restructuring Plans
3 Months Ended
May 04, 2019
Restructuring and Related Activities [Abstract]  
Restructuring Plans
Restructuring Plans
Signet Path to Brilliance Plan
During the first quarter of Fiscal 2019, Signet launched a three-year comprehensive transformation plan, the “Signet Path to Brilliance” plan (the “Plan”), to reposition the Company to be a share-gaining, OmniChannel jewelry category leader. The Plan is expected to result in pre-tax charges in the range of $200 million - $220 million over the duration of the plan of which $105 million - $115 million are expected to be cash charges.
Restructuring charges of $26.8 million were recognized in the 13 weeks ended May 4, 2019 primarily related to store closure and severance costs, and professional fees for legal and consulting services.
Restructuring charges and other Plan related costs are classified in the condensed consolidated statements of operations as follows:
 
 
 
13 weeks ended
(in millions)
Statement of operations caption
 
May 4, 2019
 
May 5, 2018
Other Plan related expenses
Restructuring charges
 
$
26.8

 
$
6.5

Total Signet Path to Brilliance Plan expenses
 
 
$
26.8

 
$
6.5


The composition of the restructuring charges the Company incurred during the 13 weeks ended May 4, 2019, as well as the cumulative amount incurred through May 4, 2019, were as follows:
 
 
13 weeks ended
 
Cumulative amount
(in millions)
 
May 4, 2019
 
May 4, 2019
Inventory charges
 
$

 
$
62.2

Termination benefits
 
8.8

 
18.5

Store closure and other costs
 
18.0

 
72.0

Total Signet Path to Brilliance Plan expenses
 
$
26.8

 
$
152.7

The following table summarizes the activity related to the Plan liabilities for Fiscal 2020:
(in millions)
 
Termination benefits
 
Store closure and other costs
 
Consolidated
Balance at February 2, 2019
 
$

 
$
12.6

 
$
12.6

Payments and other adjustments
 
(2.0
)
 
(25.1
)
 
(27.1
)
Charged to expense
 
8.8

 
18.0

 
26.8

Balance at May 4, 2019
 
$
6.8

 
$
5.5

 
$
12.3

v3.19.1
Redeemable preferred shares
3 Months Ended
May 04, 2019
Temporary Equity [Abstract]  
Redeemable preferred shares
Redeemable preferred shares
On October 5, 2016, the Company issued 625,000 shares of Series A Convertible Preference Shares (“preferred shares”) to certain affiliates of Leonard Green & Partners, L.P., (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. Preferred shareholders are entitled to a cumulative dividend at the rate of 5% per annum, payable quarterly in arrears. Refer to Note 7 for additional discussion of the Company’s dividends on preferred shares.
(in millions, except conversion rate and conversion price)
May 4, 2019
 
February 2, 2019
 
May 5, 2018
Conversion rate
11.5493

 
11.3660

 
10.9409

Conversion price
$
86.5853

 
$
87.9817

 
$
91.4002

Potential impact of preferred shares if-converted to common shares
7.2

 
7.1

 
6.8

Liquidation preference
$
632.8

 
$
632.8

 
$
632.8


In connection with the issuance of the preferred shares, the Company incurred direct and incremental expenses of $13.7 million. These direct and incremental expenses originally reduced the preferred shares carrying value, and will be accreted through retained earnings as a deemed dividend from the date of issuance through the first possible known redemption date, November 2024. Accumulated accretion recorded in the condensed consolidated balance sheets was $4.4 million as of May 4, 2019 (February 2, 2019 and May 5, 2018: $4.0 million and $2.7 million, respectively).
Accretion of $0.4 million was recorded to preferred shares in the condensed consolidated balance sheets during the 13 weeks ended May 4, 2019 ($0.4 million for the 13 weeks ended May 5, 2018).
v3.19.1
Shareholders' equity
3 Months Ended
May 04, 2019
Equity [Abstract]  
Shareholders' equity
Shareholders’ equity
Share repurchases
Common shares repurchased during the 13 weeks ended May 4, 2019 and May 5, 2018 were as follows:
 
 
 
13 weeks ended May 4, 2019
 
13 weeks ended May 5, 2018
(in millions, except per share amounts)
Amount
authorized
 
Shares
repurchased
 
Amount
repurchased
 
Average
repurchase
price per
share
 
Shares
repurchased
 
Amount
repurchased
 
Average
repurchase
price per
share
2017 Program(1)
$
600.0

 

 
$

 
$

 
0.2

 
$
9.4

 
$
38.86

2016 Program(2)
$
1,375.0

 
n/a

 
n/a

 
n/a

 
1.3

 
$
50.6

 
$
39.76

Total
 
 

 
$

 
$

 
1.5

 
$
60.0

 
$
39.62

(1) 
The 2017 Program had $165.6 million remaining as of May 4, 2019.
(2) 
The 2016 Program was completed in March 2018.
n/a
Not applicable.
Dividends on common shares
Dividends declared on common shares during the 13 weeks ended May 4, 2019 and May 5, 2018 were as follows:
 
Fiscal 2020
 
Fiscal 2019
(in millions, except per share amounts)
Cash dividend per share
 
Total
dividends
 
Cash dividend
per share
 
Total
dividends
First quarter(1)
$
0.37

 
$
19.3

 
$
0.37

 
$
21.8

(1) 
Signet’s dividend policy for common shares results in the dividend payment date being a quarter in arrears from the declaration date. As a result, as of May 4, 2019 and May 5, 2018, $19.3 million and $21.8 million, respectively, has been recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheets reflecting the cash dividends on common shares declared for the first quarter of Fiscal 2020 and Fiscal 2019, respectively.
Dividends on preferred shares
Dividends declared on preferred shares during the 13 weeks ended May 4, 2019 and May 5, 2018 were as follows:
 
Fiscal 2020
 
Fiscal 2019
(in millions)
Cash dividend
per share
 
Total cash
dividends
 
Cash dividend
per share
 
Total cash
dividends
First quarter(1)
$
12.50

 
$
7.8

 
$
12.50

 
$
7.8

(1) 
Signet’s preferred shares dividends results in the dividend payment date being a quarter in arrears from the declaration date. As a result, as of May 4, 2019 and May 5, 2018, $7.8 million and $7.8 million, respectively, has been recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheets reflecting the cash dividends on preferred shares declared for the first quarter of Fiscal 2020 and Fiscal 2019, respectively.
There were no cumulative undeclared dividends on the preferred shares that reduced net income (loss) attributable to common shareholders during the 13 weeks ended May 4, 2019 or May 5, 2018. In addition, deemed dividends of $0.4 million related to accretion of issuance costs associated with the preferred shares was recognized during the 13 weeks ended May 4, 2019 ($0.4 million for the 13 weeks ended May 5, 2018). See Note 6 for additional discussion of the Company’s preferred shares.
v3.19.1
Earnings (loss) per common share (EPS)
3 Months Ended
May 04, 2019
Earnings Per Share [Abstract]  
Earnings (loss) per common share (“EPS”)
Earnings (loss) per common share (EPS)
Basic EPS is computed by dividing net income (loss) 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:
 
 
13 weeks ended
(in millions, except per share amounts)
 
May 4, 2019
 
May 5, 2018
Numerator:
 
 
 
 
Net income (loss) attributable to common shareholders
 
$
(18.2
)
 
$
(504.8
)
Denominator:
 
 
 
 
Weighted average common shares outstanding
 
51.6

 
59.5

EPS – basic
 
$
(0.35
)
 
$
(8.48
)

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, restricted stock units and stock options issued under the Omnibus Plan and stock options issued under the Share Saving 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, only in the periods in which such effect is dilutive. Additionally, in periods in which preferred shares are dilutive, cumulative dividends and accretion for issuance costs associated with the preferred shares are added back to net (loss) income attributable to common shareholders. See Note 6 for additional discussion of the Company’s preferred shares.
The computation of diluted EPS is outlined in the table below:
 
 
13 weeks ended
(in millions, except per share amounts)
 
May 4, 2019
 
May 5, 2018
Numerator:
 
 
 
 
Net income (loss) attributable to common shareholders
 
$
(18.2
)
 
$
(504.8
)
Numerator for diluted EPS
 
$
(18.2
)
 
$
(504.8
)
 
 
 
 
 
Denominator:
 
 
 
 
Weighted average common shares outstanding
 
51.6

 
59.5

Diluted weighted average common shares outstanding
 
51.6

 
59.5

 
 
 
 
 
EPS – diluted
 
$
(0.35
)
 
$
(8.48
)

The calculation of diluted EPS excludes the following items for each respective period on the basis that their effect would be anti-dilutive.
 
 
13 weeks ended
(in millions)
 
May 4, 2019
 
May 5, 2018
Share awards
 
1.1

 
0.5

Potential impact of preferred shares
 
7.2

 
6.8

Total anti-dilutive shares
 
8.3

 
7.3

v3.19.1
Accumulated other comprehensive income (loss)
3 Months Ended
May 04, 2019
Equity [Abstract]  
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
losses
 
Prior
service
credits
 
Accumulated
other
comprehensive
loss
Balance at February 2, 2019
$
(248.4
)
 
$
(0.5
)
 
$
4.0

 
$
(53.8
)
 
$
(4.1
)
 
$
(302.8
)
Other comprehensive income (loss) (“OCI”) before reclassifications
(2.0
)
 
0.3

 
(3.2
)
 

 

 
(4.9
)
Amounts reclassified from AOCI to net income

 

 
(0.4
)
 
0.2

 

 
(0.2
)
Net current period OCI
(2.0
)
 
0.3

 
(3.6
)
 
0.2

 

 
(5.1
)
Balance at May 4, 2019
$
(250.4
)
 
$
(0.2
)
 
$
0.4

 
$
(53.6
)
 
$
(4.1
)
 
$
(307.9
)

The amounts reclassified from AOCI were as follows:
 
Amounts reclassified from AOCI
 
 
 
 
13 weeks ended
 
 
(in millions)
 
May 4, 2019
 
May 5, 2018
 
Statement of operations caption
Losses (gains) on cash flow hedges:
 
 
 
 
 
 
Foreign currency contracts
 
$
(0.3
)
 
$
0.3

 
Cost of sales (see Note 15)
Interest rate swaps
 
(0.6
)
 
(0.3
)
 
Interest expense, net
(see Note 15)
Commodity contracts
 
0.4

 
(0.5
)
 
Cost of sales (see Note 15)
Total before income tax
 
(0.5
)
 
(0.5
)
 
 
Income taxes
 
0.1

 
0.2

 
 
Net of tax
 
(0.4
)
 
(0.3
)
 
 
 
 
 
 
 
 
 
Defined benefit pension plan items:
 
 
 
 
 
 
Amortization of unrecognized actuarial losses
 
0.3

 
0.3

 
Other non-operating income
Amortization of unrecognized net prior service credits
 

 
(0.1
)
 
Other non-operating income
Total before income tax
 
0.3

 
0.2

 
 
Income taxes
 
(0.1
)
 

 
 
Net of tax
 
0.2

 
0.2

 
 
 
 
 
 
 
 
 
Total reclassifications, net of tax
 
$
(0.2
)
 
$
(0.1
)
 
 
v3.19.1
Income taxes
3 Months Ended
May 04, 2019
Income Tax Disclosure [Abstract]  
Income taxes
Income taxes
 
13 weeks ended
 
May 4, 2019
 
May 5, 2018
Effective tax rate before discrete items
14.7
 %
 
28.3
 %
Discrete items recognized
(1.7
)%
 
(13.5
)%
Effective tax rate recognized in statement of operations
13.0
 %
 
14.8
 %

During the 13 weeks ended May 4, 2019, the Company’s effective tax rate was lower than the US federal income tax rate primarily due to the favorable impact of foreign tax rate differences and benefits from global reinsurance arrangements. The forecasted annual effective tax rate excludes the effects of any discrete items that may be recognized in future periods.
There has been no material change in the amounts of unrecognized tax benefits, or the related accrued interest and penalties (where appropriate), in respect of uncertain tax positions identified as of February 2, 2019.
v3.19.1
Accounts receivable
3 Months Ended
May 04, 2019
Receivables [Abstract]  
Accounts receivable
Accounts receivable
During Fiscal 2018, Signet announced a strategic initiative to outsource its North America private label credit card programs and sell the existing in-house finance receivables. In October 2017, Signet, through its subsidiary Sterling Jewelers Inc. (“Sterling”), completed the sale of the prime-only credit quality portion of Sterling’s in-house finance receivable portfolio to Comenity Bank (“Comenity”). In June 2018, the Company completed the sale of the non-prime in-house accounts receivable to CarVal Investors (“CarVal”) and the appointed minority party, Castlelake, L.P. (“Castlelake”).
In addition, for a five-year term, Signet will remain the issuer of non-prime credit with investment funds managed by CarVal and Castlelake purchasing forward receivables at a discount rate determined in accordance with their respective agreements. Signet will hold the newly issued non-prime credit receivables on its balance sheet for two business days prior to selling the receivables to the respective counterparty in accordance with the agreements. Receivables issued by the Company but pending transfer to CarVal and Castlelake as of period end are classified as “held for sale” and included in the accounts receivable caption in the condensed consolidated balance sheets. As of May 4, 2019, the accounts receivable, held for sale were recorded at fair value. See Note 16 for additional information regarding the assumptions utilized in the calculation of fair value of the finance receivables held for sale.
The following table presents the components of Signet’s accounts receivable:
(in millions)
May 4, 2019
 
February 2, 2019
 
May 5, 2018
Accounts receivable, held for investment
$
15.3

 
$
19.5

 
$
6.8

Accounts receivable, held for sale
$
7.8

 
$
4.2

 
$
484.6

Accounts receivable
$
23.1

 
$
23.7

 
$
491.4


In March 2018, the eligible non-prime in-house accounts receivables that met the criteria for sale were reclassified from "held for investment" to "held for sale". Accordingly, the receivables were recorded at the lower of cost (par) or fair value as of the date of the reclassification with subsequent adjustments to the asset fair value as required through the closing date of the transaction. During the 13 weeks ended May 5, 2018, total valuation losses of $141.0 million and other transacted-related costs of $2.1 million were recorded within credit transaction, net in the condensed consolidated statement of operations.
Accounts receivable, held for investment is comprised primarily of accounts receivable related to the insurance loss replacement business in the International segment and receivables related to the sale of diamonds from its polishing factory deemed unsuitable for Signet's needs in the Other segment.
v3.19.1
Inventories
3 Months Ended
May 04, 2019
Inventory Disclosure [Abstract]  
Inventories
Inventories
The following table summarizes the Company’s inventory by classification:
(in millions)
May 4, 2019
 
February 2, 2019
 
May 5, 2018
Raw materials
$
74.2

 
$
76.3

 
$
69.7

Finished goods
2,320.0

 
2,310.6

 
2,359.3

Total inventories
$
2,394.2

 
$
2,386.9

 
$
2,429.0


As of May 4, 2019, inventory reserves were $84.7 million (February 2, 2019 and May 5, 2018: $95.3 million and $41.4 million, respectively).
v3.19.1
Leases
3 Months Ended
May 04, 2019
Leases [Abstract]  
Leases
Leases
Signet occupies certain properties and holds machinery and vehicles under operating leases. Signet determines if an arrangement is a lease at the agreement’s inception. Certain operating leases include predetermined rent increases, which are charged to store occupancy costs within cost of sales 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 taxes and common area maintenance, are charged to selling, general and administrative expenses 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 rent based on a percentage of sales in excess of a predetermined level. Further, certain leases provide for variable rent increases based on indexes specified within the lease agreement. As the contingent rent and variable increases are not measurable at inception, the amounts are excluded from minimum rent and the calculation of the operating lease liability. These amounts are included in variable lease cost and included in the determination of total lease cost when it is probable that the expense has been incurred and the amount is reasonably estimable. Operating leases are included in operating lease right-of-use (“ROU”) assets and current and non-current operating lease liabilities in the Company’s condensed consolidated balance sheets.
ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, Signet uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. Lease terms, which include the period of the lease that can not be canceled, may also include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The operating lease ROU asset may also include initial direct costs, prepaid and/or accrued lease payments and the unamortized balance of lease incentives received. ROU assets are reviewed for impairment whenever events or circumstances indicate that the carrying amount of the assets may not be recoverable in accordance with the Company’s long-lived asset impairment assessment policy.
Weighted average lease term and discount rate were as follows:
 
 
May 4, 2019
Weighted average remaining lease term (in years)
 
7.3

Weighted average discount rate
 
5.5
%

Total lease costs for operating leases are as follows:
 
 
13 weeks ended
(in millions)
 
May 4, 2019
Operating lease cost
 
$
114.4

Short-term lease cost
 
7.8

Variable lease cost
 
26.6

Sublease income
 
(0.7
)
Total lease cost
 
$
148.1


Payments arising from operating lease activity and variable and short-term lease payments not included within the operating lease liability are included as operating activities on the Company’s condensed consolidated statement of cash flows. Operating lease payments representing costs to ready an asset for its intended use are represented within investing activities within the Company’s condensed consolidated statements of cash flows.
Supplemental cash flow information related to leases was as follows:
 
 
13 weeks ended
(in millions)
 
May 4, 2019
Cash paid for amounts included in the measurement of lease liabilities:
 
 
Operating cash flows from operating leases
 
$
118.0

Operating lease right-of-use assets obtained in exchange for lease obligations
 
6.5


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)
 
May 4, 2019
Remainder of Fiscal 2020
 
$
342.2

Fiscal 2021
 
416.0

Fiscal 2022
 
364.0

Fiscal 2023
 
311.7

Fiscal 2024
 
245.3

Thereafter
 
726.1

Total lease payments
 
$
2,405.3

Less: Imputed interest
 
(457.0
)
Present value of lease liabilities
 
$
1,948.3

v3.19.1
Goodwill and intangibles
3 Months Ended
May 04, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and intangibles
Goodwill and intangibles
Goodwill and other indefinite-lived intangible assets, such as indefinite-lived trade names, are evaluated for impairment annually. Additionally, if events or conditions were to indicate the carrying value of a reporting unit or an indefinite-lived intangible asset may not be recoverable, the Company would evaluate the asset for impairment at that time. Impairment testing compares the carrying amount of the reporting unit or other intangible assets with its fair value. When the carrying amount of the reporting unit or other intangible assets exceeds its fair value, an impairment charge is recorded.
Due to a sustained decline in the Company’s market capitalization during the 13 weeks ended May 5, 2018, the Company determined a triggering event had occurred that required an interim impairment assessment for all of its reporting units and indefinite-lived intangible assets. As part of the assessment, it was determined that an increase in the discount rate applied in the valuation was required to align with market-based assumptions and company-specific risk. This higher discount rate, in conjunction with revised long-term projections associated with finalizing certain initial aspects of the Company’s Path to Brilliance transformation plan, resulted in lower than previously projected long-term future cash flows for the reporting units which negatively affected the valuation compared to previous valuations. As a result of the interim impairment assessment, the Company recognized pre-tax impairment charges totaling $448.7 million in the 13 weeks ended May 5, 2018.
Due to a continued decline in the Company’s market capitalization during the 13 weeks ended February 2, 2019, the Company determined a triggering event had occurred that required additional interim impairment assessments for its reporting units and indefinite-lived intangible assets. The Company recognized additional pre-tax impairment charges totaling $286.7 million during the 13 weeks ended February 2, 2019 primarily related to revised long-term projections and a higher discount rate associated with James Allen.
Goodwill
During the first quarter of Fiscal 2019, the Company compared the fair value of each of its reporting units using a combination of discounted cash flow and guideline public company methodologies with their carrying value and concluded that a deficit existed. Accordingly, in the 13 weeks ended May 5, 2018, the Company recognized pre-tax impairment charges in operations of $308.8 million within its North America segment. Due to the second triggering event in the 13 weeks ended February 2, 2019 and using similar methodologies as the initial impairment assessment, the Company recognized additional pre-tax impairment charges in operations of $208.8 million and $3.6 million within its North America and Other segments, respectively.
The following table summarizes the Company’s goodwill by reportable segment:
(in millions)
 
North America
 
Other
 
Total
Balance at February 3, 2018
 
$
818.1

 
$
3.6

 
$
821.7

Impairment
 
(517.6
)
 
(3.6
)
 
(521.2
)
Impact of foreign exchange and other adjustments (1)
 
(3.9
)
 

 
(3.9
)
Balance at February 2, 2019
 
296.6

 

 
296.6

Impact of foreign exchange and other adjustments
 
(0.2
)
 

 
(0.2
)
Balance at May 4, 2019
 
$
296.4

 
$

 
$
296.4


(1)
During the 13 weeks ended May 5, 2018, other adjustments include a purchase price accounting adjustment of $2.6 million related to a revised valuation of acquired intangible assets from the R2Net acquisition.
Intangibles
Definite-lived intangible assets include trade names and favorable lease agreements. Indefinite-lived intangible assets include trade names. Both definite and indefinite-lived assets are recorded within intangible assets, net on the consolidated balance sheets. Intangible liabilities, net is comprised of unfavorable lease agreements and contracts and is recorded within other liabilities on the consolidated balance sheets.
In conjunction with the interim goodwill impairment tests during Fiscal 2019, the Company reviewed its indefinite-lived intangible assets for potential impairment by calculating the fair values of the assets using the relief from royalty method and comparing the fair value to their respective carrying amounts. The interim impairment tests resulted in the determination that the fair values of indefinite-lived intangible assets related to certain Zales trade names were less than their carrying value. Accordingly, in the 13 weeks ended May 5, 2018, the Company recognized pre-tax impairment charges in operations of $139.9 million within its North America segment. Additionally, in conjunction with the interim goodwill impairment tests associated with the second triggering event in the fourth quarter of Fiscal 2019, the Company determined that the fair values of indefinite-lived intangible assets related to trade names, primarily James Allen, were less than their carrying value. Accordingly, in the 13 weeks ended February 2, 2019, the Company recognized pre-tax impairment charges in operations of $74.3 million within its North America segment.
The following table provides additional detail regarding the composition of intangible assets and liabilities:
 
 
May 4, 2019
 
February 2, 2019
 
May 5, 2018
(in millions)
 
Gross
carrying
amount
 
Accumulated
amortization
(1)
 
Net
carrying
amount
 
Gross
carrying
amount
 
Accumulated
amortization
(1)
 
Net
carrying
amount
 
Gross
carrying
amount
 
Accumulated
amortization
(1)
 
Net
carrying
amount
Intangible assets, net:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Definite-lived intangible assets
 
$
53.0

 
$
(50.2
)
 
$
2.8

 
$
53.3

 
$
(50.1
)
 
$
3.2

 
$
53.5

 
$
(47.2
)
 
$
6.3

Indefinite-lived intangible assets
 
475.1

 
(213.8
)
 
261.3

 
475.9

 
(214.1
)
 
261.8

 
476.6

 
(139.7
)
 
336.9

Total intangible assets, net
 
$
528.1

 
$
(264.0
)
 
$
264.1

 
$
529.2

 
$
(264.2
)
 
$
265.0

 
$
530.1

 
$
(186.9
)
 
$
343.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intangible liabilities, net
 
$
(113.7
)
 
$
93.8

 
$
(19.9
)
 
$
(113.9
)
 
$
92.5

 
$
(21.4
)
 
$
(114.1
)
 
$
87.1

 
$
(27.0
)

(1)
Accumulated amortization amounts related to the indefinite-lived intangible assets represents accumulated impairment losses recorded to date.
During the second quarter of Fiscal 2020, the Company observed a general decline in the market valuation of the Company’s common shares which could impact the assumptions used to perform an evaluation of its indefinite-lived intangible assets, including goodwill and trade names. As of the date of this report, the Company concluded that it was more likely than not that the estimated fair value of the reporting units and indefinite-lived trade names continues to exceed the carrying values. However, the Company will continue to monitor sales trends, interest rates, and other key inputs to the estimates of fair value. A further decline in the key inputs, especially sales trends used in the valuation of trade names, may result in an impairment charge.
v3.19.1
Derivatives
3 Months Ended
May 04, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
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 the International segment purchases and purchases made by the Canadian operations of the North America segment are denominated in US dollars, Signet enters into forward foreign currency exchange 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 reduce 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 forward purchase contracts, options and net zero premium collar arrangements (a combination of forwards and option contracts).
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 primary external sources of funding are a senior unsecured credit facility and senior unsecured notes as described in Note 17.
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 matured in April 2019. Under this contract, the Company agreed 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. During the term of the interest rate swap, the Company effectively converted a portion of its variable-rate senior unsecured term loan into fixed-rate debt.
Credit risk and concentrations of credit risk
Credit risk represents the loss that would be recognized at the reporting date if counter-parties failed to perform as contracted. Signet does not anticipate non-performance by counter-parties of its financial instruments. 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. As of May 4, 2019, 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 May 4, 2019 was $20.6 million (February 2, 2019 and May 5, 2018: $22.4 million and $22.2 million, respectively). These contracts have been designated as cash flow hedges and will be settled over the next 11 months (February 2, 2019 and May 5, 2018: 12 months and 11 months, respectively).
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 May 4, 2019 was $92.4 million (February 2, 2019 and May 5, 2018: $111.5 million and $104.3 million, respectively).
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 May 4, 2019 was 92,000 ounces of gold (February 2, 2019 and May 5, 2018: 89,000 ounces and 5,000 ounces, respectively). These contracts have been designated as cash flow hedges and will be settled over the next 20 months (February 2, 2019 and May 5, 2018: 20 months and 9 months, respectively).
The bank counterparties to the derivative instruments expose Signet to credit-related losses in the event of their non-performance. However, to mitigate that risk, Signet only contracts with counter-parties that meet certain minimum requirements under its counter-party risk assessment process. As of May 4, 2019, Signet believes that this credit risk did not materially change the fair value of the foreign currency or commodity contracts.
The following table summarizes the fair value and presentation of derivative instruments in the condensed consolidated balance sheets:
 
Fair value of derivative assets
(in millions)
Balance sheet location
 
May 4, 2019
 
February 2, 2019
 
May 5, 2018
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
Foreign currency contracts
Other current assets
 
$

 
$
0.1

 
$
0.4

Commodity contracts
Other current assets
 
0.8

 
4.3

 
0.1

Commodity contracts
Other assets
 
0.1

 
1.4

 

Interest rate swaps
Other assets
 

 
0.6

 
2.3

Total derivative assets
 
 
$
0.9

 
$
6.4

 
$
2.8

 
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Foreign currency contracts
Other current assets
 
1.0

 
0.8

 

Total derivative assets
 
 
$
1.9

 
$
7.2

 
$
2.8

 
Fair value of derivative liabilities
(in millions)
Balance sheet location
 
May 4, 2019
 
February 2, 2019
 
May 5, 2018
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
Foreign currency contracts
Other current liabilities
 
$
(0.1
)
 
$
(0.2
)
 
$
(0.2
)
Commodity contracts
Other current liabilities
 
(0.3
)
 

 

Commodity contracts
Other liabilities
 
(0.2
)
 

 

 
 
 
$
(0.6
)
 
$
(0.2
)
 
$
(0.2
)
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Foreign currency contracts
Other current liabilities
 

 

 
(1.0
)
Total derivative liabilities
 
 
$
(0.6
)
 
$
(0.2
)
 
$
(1.2
)

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)
May 4, 2019
 
February 2, 2019
 
May 5, 2018
Foreign currency contracts
$
0.4

 
$
0.7

 
$
(0.8
)
Commodity contracts
0.1

 
4.0

 
1.1

Interest rate swaps

 
0.6

 
2.3

Gains (losses) recorded in AOCI
$
0.5

 
$
5.3

 
$
2.6

The following tables summarize the effect of derivative instruments designated as cash flow hedges in OCI and the condensed consolidated statement of operations:
Foreign currency contracts
 
 
 
13 weeks ended
(in millions)
Statement of operations caption
 
May 4, 2019
 
May 5, 2018
(Losses) gains recorded in AOCI, beginning of period
 
 
$
0.7

 
$
(2.4
)
Current period gains (losses) recognized in OCI
 
 

 
1.3

Losses (gains) reclassified from AOCI to net income
Cost of sales
 
(0.3
)
 
0.3

Gains recorded in AOCI, end of period
 
 
$
0.4

 
$
(0.8
)
Commodity contracts
 
 
 
13 weeks ended
(in millions)
Statement of operations caption
 
May 4, 2019
 
May 5, 2018
Gains (losses) recorded in AOCI, beginning of period
 
 
$
4.0

 
$
1.4

Current period gains (losses) recognized in OCI
 
 
(4.3
)
 
0.2

Gains reclassified from AOCI to net income
Cost of sales
 
0.4

 
(0.5
)
Gains (losses) recorded in AOCI, end of period
 
 
$
0.1

 
$
1.1


Interest rate swaps
 
 
 
13 weeks ended
(in millions)
Statement of operations caption
 
May 4, 2019
 
May 5, 2018
Gains recorded in AOCI, beginning of period
 
 
$
0.6

 
$
2.2

Current period gains (losses) recognized in OCI
 
 

 
0.4

(Gains) losses reclassified from AOCI to net income
Interest expense, net
 
(0.6
)
 
(0.3
)
Gains recorded in AOCI, end of period
 
 
$

 
$
2.3


There was no material ineffectiveness related to the Company’s derivative instruments designated in cash flow hedging relationships for the 13 weeks ended May 4, 2019 and May 5, 2018. Based on current valuations, the Company expects approximately $0.5 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 condensed consolidated statement of operations:
 
 
 
13 weeks ended
(in millions)
Statement of operations caption
 
May 4, 2019
 
May 5, 2018
Derivatives not designated as hedging instruments:
 
 
 
 
 
Foreign currency contracts
Other operating income, 
net
 
$
1.1

 
$
(4.8
)
v3.19.1
Fair value measurements
3 Months Ended
May 04, 2019
Fair Value Disclosures [Abstract]  
Fair value measurements
Fair value measurement
The estimated fair value of Signet’s financial instruments held or issued to finance Signet’s operations is summarized below. Certain estimates and judgments were required to develop the fair value amounts. The fair value amounts shown below are not necessarily indicative of the amounts that Signet would realize upon disposition nor do they indicate Signet’s intent or ability to dispose of the financial instrument. Assets and liabilities that are carried at fair value are required to be classified and disclosed in one of the following three categories:
Level 1—quoted market prices in active markets for identical assets and liabilities
Level 2—observable market based inputs or unobservable inputs that are corroborated by market data
Level 3—unobservable inputs that are not corroborated by market data
Signet determines fair value based upon quoted prices when available or through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. The methods Signet uses to determine fair value on an instrument-specific basis are detailed below:
 
May 4, 2019
 
February 2, 2019
 
May 5, 2018
(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)
 
Carrying Value
 
Quoted prices in active markets for identical assets
(Level 1)
 
Significant
other
observable
inputs
(Level 2)
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
US Treasury securities
$
7.7

 
$
7.7

 
$

 
$
4.7

 
$
4.7

 
$

 
$
7.3

 
$
7.3

 
$

Corporate equity securities
2.6

 
2.6

 

 
2.4

 
2.4

 

 
4.3

 
4.3

 

Foreign currency contracts
1.0

 

 
1.0

 
0.9

 

 
0.9

 
0.4

 

 
0.4

Commodity contracts
0.9

 

 
0.9

 
5.7

 

 
5.7

 
0.1

 

 
0.1

Interest rate swaps

 

 

 
0.6

 

 
0.6

 
2.3

 

 
2.3

US government agency securities
4.0

 

 
4.0

 
2.5

 

 
2.5

 
4.7

 

 
4.7

Corporate bonds and notes
6.6

 

 
6.6

 
5.2

 

 
5.2

 
10.6

 

 
10.6

Total assets
$
22.8

 
$
10.3

 
$
12.5

 
$
22.0

 
$
7.1

 
$
14.9

 
$
29.7

 
$
11.6

 
$
18.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency contracts
$
(0.1
)
 
$

 
$
(0.1
)
 
$
(0.2
)
 
$

 
$
(0.2
)
 
$
(1.2
)
 
$

 
$
(1.2
)
Commodity contracts
(0.5
)
 

 
(0.5
)
 

 

 

 

 

 

Total liabilities
$
(0.6
)
 
$

 
$
(0.6
)
 
$
(0.2
)
 
$

 
$
(0.2
)
 
$
(1.2
)
 
$

 
$
(1.2
)

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. The fair value of derivative financial instruments has been determined based on market value equivalents at the balance sheet date, taking into account the current interest rate environment, foreign currency forward rates or commodity forward rates, and therefore were classified as Level 2 measurements in the fair value hierarchy. See Note 15 for additional information related to the Company’s derivatives.
During the second quarter of Fiscal 2019, the Company completed the sale of all eligible non-prime in-house accounts receivable. Upon closing, 5% of the purchase price was deferred until the second anniversary of the closing date. Final payment of the deferred purchase price is contingent upon the non-prime portfolio achieving a pre-defined yield. The Company recorded an asset related to this deferred payment within other assets at fair value and will adjust the asset to fair value in each subsequent period through the performance period through AOCI until settled. This estimated fair value was derived from a discounted cash flow model using unobservable inputs, including estimated yields derived from historic performance, loss rates, payment rates and discount rates to estimate the fair value associated with the accounts receivable. As of May 4, 2019, the fair value of the deferred payment was $19.3 million, which is recorded within other assets on the condensed consolidated balance sheets. See Note 11 for additional information.
Goodwill and other indefinite-lived intangible assets, are evaluated for impairment annually or more frequently if events or conditions indicate the carrying value of a reporting unit or an indefinite-lived intangible asset may not be recoverable. Impairment testing compares the carrying amount of the reporting unit or other intangible assets with its fair value. During the 13 weeks ended May 5, 2018, the Company performed an interim impairment test for goodwill and indefinite-lived intangible assets. The fair value was calculated using a combination of discounted cash flow and guideline public company methodologies for the reporting units and the relief from royalty method for the indefinite-lived intangible assets, respectively. The fair value of goodwill and indefinite-lived intangible assets is a Level 3 valuation based on certain unobservable inputs including projected cash flows and estimated risk-adjusted rates of return that would be utilized by market participants in valuing these assets or prices of similar assets. See Note 14 for additional information.
The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current 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 17 for classification between current and long-term debt. The following table provides a summary of the carrying amount and fair value of outstanding debt:
 
May 4, 2019
 
February 2, 2019
 
May 5, 2018
(in millions)
Carrying
Value
 
Fair Value
 
Carrying
Value
 
Fair Value
 
Carrying
Value
 
Fair Value
Long-term debt:
 
 
 
 
 
 
 
 
 
 
 
Senior notes (Level 2)
$
395.5

 
$
363.4

 
$
395.3

 
$
340.3

 
$
394.6

 
$
382.3

Term loan (Level 2)
284.5

 
286.0

 
293.0

 
294.9

 
317.0

 
319.5

Total
$
680.0

 
$
649.4

 
$
688.3

 
$
635.2

 
$
711.6

 
$
701.8

v3.19.1
Loans, overdrafts and long-term debt
3 Months Ended
May 04, 2019
Debt Disclosure [Abstract]  
Loans, overdrafts and long-term debt
Loans, overdrafts and long-term debt
(in millions)
May 4, 2019
 
February 2, 2019
 
May 5, 2018
Debt:
 
 
 
 
 
Senior unsecured notes due 2024, net of unamortized discount
$
399.1

 
$
399.0

 
$
398.9

Senior unsecured term loan
286.0

 
294.9

 
319.5

Revolving credit facility

 

 
40.0

Bank overdrafts
2.7

 
40.1

 
0.3

Total debt
$
687.8

 
$
734.0

 
$
758.7

Less: Current portion of loans and overdrafts
(43.7
)
 
(78.8
)
 
(72.3
)
Less: Unamortized capitalized debt issuance fees
(5.1
)
 
(5.6
)
 
(6.7
)
Total long-term debt
$
639.0

 
$
649.6

 
$
679.7


Revolving credit facility and term loan (the Credit Facility)
The Company’s Credit Facility contains a $700 million senior unsecured multi-currency multi-year revolving credit facility and a $357.5 million senior unsecured term loan facility. The maturity date for the Credit Facility, including both individual facilities disclosed above, is July 2021.
Deferred financing fees associated with the revolving credit facility as of May 4, 2019 total $2.6 million with the unamortized balance recorded as an asset within the condensed consolidated balance sheets. Accumulated amortization related to these capitalized fees as of May 4, 2019 was $1.7 million (February 2, 2019 and May 5, 2018: $1.6 million and $1.3 million, respectively). Amortization relating to these fees of $0.1 million was recorded as interest expense in the condensed consolidated statement of operations for the 13 weeks ended May 4, 2019 ($0.1 million for the 13 weeks ended May 5, 2018). As of May 4, 2019, February 2, 2019 and May 5, 2018, the Company had stand-by letters of credit outstanding of $14.6 million, $14.6 million and $14.5 million, respectively, that reduce remaining borrowing availability. The revolving credit facility was not utilized during the 13 weeks ended May 4, 2019. The revolving credit facility had a weighted average interest rate of 3.30% during the 13 weeks ended May 5, 2018.
Deferred financing fees associated with the term loan facility as of May 4, 2019 total $6.2 million with the unamortized balance recorded as a direct deduction from the outstanding liability within the condensed consolidated balance sheets. Accumulated amortization related to these capitalized fees as of May 4, 2019 was $4.7 million (February 2, 2019 and May 5, 2018: $4.3 million and $3.7 million, respectively). Amortization relating to these fees of $0.4 million was recorded as interest expense in the condensed consolidated statement of operations for the 13 weeks ended May 4, 2019 ($0.2 million for the 13 weeks ended May 5, 2018). Excluding the impact of the interest rate swap designated as a cash flow hedge discussed in Note 15, the term loan had a weighted average interest rate of 4.37% and 3.10% during the 13 weeks ended May 4, 2019 and May 5, 2018, respectively.
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 4.70% senior unsecured notes due in 2024 (the “Notes”). The Notes were issued under an effective registration statement previously filed with the SEC. 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 21 for additional information.
Deferred financing fees relating to the senior unsecured notes total $7.0 million. Accumulated amortization related to these capitalized fees as of May 4, 2019 was $3.4 million (February 2, 2019 and May 5, 2018: $3.3 million and $2.7 million, respectively). The remaining unamortized capitalized fees are recorded as a direct deduction from the outstanding liability within the condensed consolidated balance sheets. Amortization relating to these fees of $0.1 million was recorded as interest expense in the condensed consolidated statement of operations for the 13 weeks ended May 4, 2019 ($0.1 million for the 13 weeks ended May 5, 2018).
Other
As of May 4, 2019, February 2, 2019 and May 5, 2018, the Company was in compliance with all debt covenants.
v3.19.1
Warranty reserve
3 Months Ended
May 04, 2019
Other Liabilities Disclosure [Abstract]  
Warranty reserve
Warranty reserve
Specific merchandise sold by banners within the North America segment includes a product lifetime diamond or colored gemstone guarantee as long as six-month inspections are performed and certified by an authorized store representative. Provided the customer has complied with the six-month inspection policy, 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. The warranty reserve for diamond and gemstone guarantee, included in accrued expenses and other current liabilities and other non-current liabilities, is as follows:
 
 
13 weeks ended
(in millions)
 
May 4, 2019
 
May 5, 2018
Warranty reserve, beginning of period
 
$
33.2

 
$
37.2

Warranty expense
 
3.5

 
1.4

Utilized(1)
 
(2.9
)
 
(3.0
)
Warranty reserve, end of period
 
$
33.8

 
$
35.6


(1)  
Includes impact of foreign exchange translation.
(in millions)
May 4, 2019
 
February 2, 2019
 
May 5, 2018
Disclosed as:
 
 
 
 
 
Current liabilities
$
10.1

 
$
10.0

 
$
11.0

Non-current liabilities
23.7

 
23.2

 
24.6

Total warranty reserve
$
33.8

 
$
33.2

 
$
35.6

v3.19.1
Share-based compensation
3 Months Ended
May 04, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-based compensation
Share-based compensation
Signet recorded share-based compensation expense of $4.0 million for the 13 weeks ended May 4, 2019 related to the Omnibus Plan and Share Saving Plans ($1.8 million for the 13 weeks ended May 5, 2018).
v3.19.1
Commitments and contingencies
3 Months Ended
May 04, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments and contingencies
Commitments and contingencies
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.  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, which SJI opposed. April 27, 2015, the arbitrator issued an order denying the Claimants’ Motion. 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, which Claimants opposed. 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 December 3, 2015, SJI filed with the United States Court of Appeals for the Second Circuit SJI’s Notice of Appeal of the District Court’s November 16, 2015 Opinion and Order. 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, which Claimants opposed. 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, which SJI opposed. On June 15, 2015, the arbitrator granted the Claimants’ motion. On March 6, 2017, Claimants filed Claimants’ Motion for Conditional Certification of Claimants’ Equal Pay Act Claims and Authorization of Notice, which SJI opposed 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, which Claimants opposed. On April 5, 2016, the arbitrator denied SJI’s Motion. 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, which Claimants opposed. 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, which Claimant’s opposed. On June 1, 2017, the Second Circuit Court of Appeals dismissed SJI’s appeal for lack of appellate jurisdiction. 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, which Claimants opposed. 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. Approximately, 10,314 current and former employees submitted consent forms to opt in to the collective action; however, some have withdrawn their consents. The number of valid consents is disputed and yet to be determined. SJI believes the number of valid consents to be approximately 9,124. On July 24, 2017, the United States Court of Appeals for the Second Circuit issued its unanimous Summary Order that held that the absent class members “never consented” to the Arbitrator determining the permissibility of class arbitration under the agreements, and remanded the matter to the District Court to determine whether the Arbitrator exceeded her authority by certifying the Title VII class that contained absent class members who had not opted in the litigation. On August 7, 2017, SJI filed its Renewed Motion to Vacate the Class Determination Award relative to absent class members with the District Court. The matter was fully briefed and an oral argument was heard on October 16, 2017. On January 15, 2018, District Court granted SJI’s Motion finding that the Arbitrator exceeded her authority by binding non-parties (absent class members) to the Title VII claim. The District Court further held that the RESOLVE Agreement does not permit class action procedures, thereby, reducing the Claimants in the Title VII matter from 70,000 to 254. Claimants dispute that the number of claimants in the Title VII is 254. On January 18, 2018, the Claimants filed a Notice of Appeal with the United States Court of Appeals for the Second Circuit. The appeal was fully briefed and oral argument before the Second Circuit occurred on May 7, 2018. SJI currently awaits the Second Circuit’s decision on this appeal. On May 17, 2019, SJI submitted a Rule 28(j) letter to the Second Circuit addressing the effects of the Supreme Court’s ruling in Lamps Plus, Inc. v. Varela, No. 17-988 (S. Ct. Apr. 24, 2019), on the pending appeal. The Second Circuit then issued an order directing the parties to submit additional arguments on that issue, which have been submitted. On November 10, 2017, SJI filed in the arbitration motions for summary judgment, and for decertification, of Claimants’ Equal Pay Act and Title VII promotions claims. On January 30, 2018, oral argument on SJI’s motions was heard. On January 26, 2018, SJI filed a Motion to Vacate The Equal Pay Act Collective Action Award And Tolling Order asserting that the Arbitrator exceeded her authority by conditionally certifying the Equal Pay Act claim and allowing the absent claimants to opt-in the litigation. On March 12, 2018, the Arbitrator denied SJI’s Motion to Vacate The Equal Pay Act Collective Action Award and Tolling Order. SJI still has a pending motion seeking decertification of the EPA Collective Action before the Arbitrator. On March 19, 2018, the Arbitrator issued an Order partially granting SJI’s Motion to Amend the Arbitrator’s November 2, 2017, Bifurcated Seventh Amended Case Management Plan resulting in a continuance of the May 14, 2018 trial date. A new trial date has not been set.
SJI denies the allegations of the Claimants and has been defending the case vigorously. At this point, no outcome or possible loss or range of losses, if any, arising from the litigation is able to be estimated.
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. This suit was settled on May 5, 2017, as further described below. The EEOC’s lawsuit alleged 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 asserted 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. On May 5, 2017 the U.S. District Court for the Western District of New York approved and entered the Consent Decree jointly proposed by the EEOC and SJI, resolving all of the EEOC’s claims against SJI in this litigation for various injunctive relief including but not limited to the appointment of an employment practices expert to review specific policies and practices, a compliance officer to be employed by SJI, as well as obligations relative to training, notices, reporting and record-keeping. The Consent Decree does not require an outside third party monitor or require any monetary payment. The duration of the Consent Decree is three years and three months, expiring on August 4, 2020.
Shareholder Actions
In August 2016, two alleged Company shareholders each filed a putative class action complaint in the United States District Court for the Southern District of New York against the Company and its then-current Chief Executive Officer and current Chief Financial Officer (Nos. 16-cv-6728 and 16-cv-6861, the “S.D.N.Y. cases”). On September 16, 2016, the Court consolidated the S.D.N.Y. cases under case number 16-cv-6728. On April 3, 2017, the plaintiffs filed a second amended complaint, purportedly on behalf of persons that acquired the Company’s securities on or between August 29, 2013, and February 27, 2017, naming as defendants the Company, its then-current and former Chief Executive Officers, and its current and former Chief Financial Officers. The second amended complaint alleged that the 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 (i) failing to disclose that the Company was allegedly having issues ensuring the safety of customers’ jewelry while in the Company’s custody for repairs, which allegedly damaged customer confidence; (ii) making misleading statements about the Company’s credit portfolio; and (iii) failing to disclose reports of sexual harassment allegations that were raised by claimants in an ongoing pay and promotion gender discrimination class arbitration (the “Arbitration”). The second amended complaint alleged that the Company’s share price was artificially inflated as a result of the alleged misrepresentations and sought unspecified compensatory damages and costs and expenses, including attorneys’ and experts’ fees.
In March 2017, two other alleged Company shareholders each filed a putative class action complaint in the United States District Court for the Northern District of Texas against the Company and its then-current and former Chief Executive Officers (Nos. 17-cv-875 and 17-cv-923, the “N.D. Tex. cases”). Those complaints were nearly identical to each other and alleged that the defendants’ statements concerning the Arbitration violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The N.D. Tex. cases were subsequently transferred to the Southern District of New York and consolidated with the S.D.N.Y. cases (the “Consolidated Action”). On July 27, 2017, the Court appointed a lead plaintiff and lead plaintiff’s counsel in the Consolidated Action. On August 3, 2017, the Court ordered the lead plaintiff in the Consolidated Action to file a third amended complaint by September 29, 2017. On September 29, 2017, the lead plaintiff filed a third amended complaint that covered a putative class period of August 29, 2013, through May 24, 2017, and that asserted substantially similar claims to the second amended complaint, except that it omitted the claim based on defendants’ alleged misstatements concerning the security of customers’ jewelry while in the Company’s custody for repairs. The defendants moved to dismiss the third amended complaint on December 1, 2017. On December 4, 2017, the Court entered an order permitting the lead plaintiff to amend its complaint as of right by December 22, 2017, and providing that the lead plaintiff would not be given any further opportunity to amend its complaint to address the issues raised in the defendants’ motion to dismiss.
On December 15, 2017, Nebil Aydin filed a putative class action complaint in the United States District Court for the Southern District of New York against the Company and its current Chief Executive Officer and Chief Financial Officer (No. 17-cv-9853). The Aydin complaint alleged that the defendants made misleading statements regarding the Company’s credit portfolio between August 24, 2017, and November 21, 2017, in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and sought unspecified compensatory damages and costs and expenses, including attorneys’ and experts’ fees. On January 7, 2018, the Aydin case was consolidated into the Consolidated Action.
On December 22, 2017, the lead plaintiff in the Consolidated Action filed its fourth amended complaint, which asserted substantially the same claims as its third amended complaint for an expanded class period of August 28, 2013, through December 1, 2017. On January 26, 2017, the defendants moved to dismiss the fourth amended complaint. This motion was fully briefed as of March 9, 2018.
On March 20, 2018, the Court granted the lead plaintiff leave to file a fifth amended complaint. On March 22, 2018, the lead plaintiff in the Consolidated Action filed its fifth amended complaint which asserts substantially the same claims as its fourth amended complaint for an expanded class period of August 29, 2013, through March 13, 2018. The prior motion to dismiss was denied as moot. On March 30, 2018, the defendants moved to dismiss the fifth amended complaint.
On November 26, 2018, the Court denied the defendants’ motion to dismiss. Discovery is ongoing in this action.
On March 27, 2019, two actions were filed in the U.S. District Court for the Southern District of New York by investment funds that allegedly purchased the Company’s stock. The actions are captioned Pennant Master Fund LP et al. v. Signet Jewelers et al., Civ. No. 19-2757, and The Alger Funds et al. v. Signet Jewelers et al., Civ. No. 19-2758, and name the Company and its current and former Chief Executive Officers and Chief Financial Officers as defendants. Both complaints allege violations of Sections 10(b), 18, and 20(a) of the Securities Exchange Act of 1934, and common law fraud, based on alleged misstatements and omissions concerning the Company’s credit portfolio. These claims are substantially the same as the credit-related claims in the Consolidated Action, except that the Pennant action alleges misstatements for the period August 29, 2013, to June 2, 2016, and the Alger Funds action alleges misstatements for the period August 29, 2013, to August 25, 2016. On May 14, 2019, and May 29, 2019, the Court entered orders staying the Alger Funds and Pennant actions, respectively, until entry of final judgment in the Consolidated Action.
Derivative Action
On September 1, 2017, Josanne Aungst filed a putative shareholder derivative action entitled Aungst v. Light, et al., No. CV-2017-3665, in the Court of Common Pleas for Summit County Ohio. The complaint in this action, which purports to have been brought by Ms. Aungst on behalf of the Company, names certain current and former directors and officers of the Company as defendants and alleges claims for breach of fiduciary duty, abuse of control, and gross mismanagement.  The complaint challenges certain public disclosures and conduct relating to the allegations that were raised by the claimants in the Arbitration. The complaint also alleges that the Company’s share price was artificially inflated as a result of alleged misrepresentations and omissions. The complaint seeks money damages on behalf of the Company, changes to the Company’s corporate governance, and other equitable relief, as well as plaintiff’s legal fees and costs. The defendants’ motion to dismiss the complaint was granted on February 28, 2019. On March 26, 2019, plaintiff filed a notice of appeal.
The Company believes that the claims brought in these shareholder actions are without merit and cannot estimate a range of potential liability, if any, at this time.
Regulatory Matters
On January 16, 2019, Sterling Jewelers Inc., (“Sterling”), a wholly owned subsidiary of Company, without admitting or denying any of the allegations, findings of fact, or conclusions of law (except to establish jurisdiction), entered into a Consent Order with the Consumer Financial Protection Bureau (the "CFPB") and New York Attorney General (the “NY AG”) settling a previously disclosed investigation of certain in-store credit practices, promotions, and payment protection products (the "Consent Order").  Among other things, the Consent Order requires Sterling to (i) submit an accurate written compliance report to the CFPB; (ii) pay an $10,000,000 civil money penalty to the CFPB;  (iii) pay a $1,000,000 civil money penalty to the NY AG: and (iv) maintain policies and procedures related to the issuance of credit cards, including with respect to credit applications, credit financing terms and conditions, and any related add-on products that are reasonably designed to ensure consumer knowledge or consent.  All payments required by the Consent Order were made in February 2019.  We continue to work to ensure compliance with the Consent Order, which may result in us incurring additional costs. See Item 1A of Signet’s Annual Report on Form 10-K for the fiscal year ended February 2, 2019 filed with the SEC on April 3, 2019 for risks relating to the CFPB and our continued compliance with the Consent Order.
v3.19.1
Condensed consolidating financial information
3 Months Ended
May 04, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
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 condensed consolidated financial statements.
The accompanying condensed consolidating financial information has been presented on the equity method of accounting for all periods presented. Under this method, investments in subsidiaries are recorded at cost and adjusted for the subsidiaries’ cumulative results of operations, capital contributions and distributions and other changes in equity. Elimination entries include consolidating and eliminating entries for investments in subsidiaries, and intra-entity activity and balances.



Condensed Consolidated Statement of Operations
For the 13 weeks ended May 4, 2019
(Unaudited)
(in millions)
Signet
Jewelers
Limited
 
Signet UK
Finance plc
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Sales
$

 
$

 
$
1,316.9

 
$
114.8

 
$

 
$
1,431.7

Cost of sales

 

 
(854.0
)
 
(78.3
)
 

 
(932.3
)
Gross margin

 

 
462.9

 
36.5

 

 
499.4

Selling, general and administrative expenses

 

 
(462.4
)
 
(12.8
)
 

 
(475.2
)
Restructuring charges

 

 
(25.8
)
 
(1.0
)
 

 
(26.8
)
Other operating income (loss), net

 

 
(0.1
)
 
0.1

 

 

Operating income (loss)

 

 
(25.4
)
 
22.8

 

 
(2.6
)
Intra-entity interest income (expense)
(0.7
)
 
4.7

 
(48.4
)
 
44.4

 

 

Interest expense, net

 
(5.0
)
 
(4.3
)
 
0.1

 

 
(9.2
)
Other non-operating income

 

 
0.3

 

 

 
0.3

Income (loss) before income taxes
(0.7
)
 
(0.3
)
 
(77.8
)
 
67.3

 

 
(11.5
)
Income taxes

 
0.1

 
8.8

 
(7.4
)
 

 
1.5

Equity in income (loss) of subsidiaries
(9.3
)
 

 
(79.7
)
 
(65.4
)
 
154.4

 

Net income (loss)
$
(10.0
)
 
$
(0.2
)
 
$
(148.7
)
 
$
(5.5
)
 
$
154.4

 
$
(10.0
)
Dividends on redeemable convertible preferred shares
(8.2
)
 

 

 

 

 
(8.2
)
Net income (loss) attributable to common shareholders
$
(18.2
)
 
$
(0.2
)
 
$
(148.7
)
 
$
(5.5
)
 
$
154.4

 
$
(18.2
)

Condensed Consolidated Statement of Operations
For the 13 weeks ended May 5, 2018
(Unaudited)
(in millions)
Signet
Jewelers
Limited
 
Signet UK
Finance plc
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Sales
$

 
$

 
$
1,356.5

 
$
124.1

 
$

 
$
1,480.6

Cost of sales

 

 
(936.3
)
 
(59.5
)
 

 
(995.8
)
Gross margin

 

 
420.2

 
64.6

 

 
484.8

Selling, general and administrative expenses
(0.1
)
 

 
(444.4
)
 
(38.3
)
 

 
(482.8
)
Credit transaction, net

 

 
(143.1
)
 

 

 
(143.1
)
Restructuring charges

 

 
(5.5
)
 
(1.0
)
 

 
(6.5
)
Goodwill and intangible impairments

 

 
(448.7
)
 

 

 
(448.7
)
Other operating income (loss), net
(0.1
)
 

 
22.6

 
(0.4
)
 

 
22.1

Operating income (loss)
(0.2
)
 

 
(598.9
)
 
24.9

 

 
(574.2
)
Intra-entity interest income (expense)
(0.7
)
 
4.7

 
(44.8
)
 
40.8

 

 

Interest expense, net

 
(4.9
)
 
(4.0
)
 

 

 
(8.9
)
Other non-operating income

 

 
0.6

 

 

 
0.6

Income (loss) before income taxes
(0.9
)
 
(0.2
)
 
(647.1
)
 
65.7

 

 
(582.5
)
Income taxes

 

 
79.4

 
6.5

 

 
85.9

Equity in income (loss) of subsidiaries
(495.7
)
 

 
(565.1
)
 
(567.9
)
 
1,628.7

 

Net income (loss)
$
(496.6
)
 
$
(0.2
)
 
$
(1,132.8
)
 
$
(495.7
)
 
$
1,628.7

 
$
(496.6
)
Dividends on redeemable convertible preferred shares
(8.2
)
 

 

 

 

 
(8.2
)
Net income (loss) attributable to common shareholders
$
(504.8
)
 
$
(0.2
)
 
$
(1,132.8
)
 
$
(495.7
)
 
$
1,628.7

 
$
(504.8
)

Condensed Consolidated Statement of Comprehensive Income (Loss)
For the 13 weeks ended May 4, 2019
(Unaudited)
(in millions)
Signet
Jewelers
Limited
 
Signet UK
Finance plc
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net income (loss)
$
(10.0
)
 
$
(0.2
)
 
$
(148.7
)
 
$
(5.5
)
 
$
154.4

 
$
(10.0
)
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
(2.0
)
 

 
(2.0
)
 

 
2.0

 
(2.0
)
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain
0.3

 

 

 
0.3

 
(0.3
)
 
0.3

Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain
(3.2
)
 

 
(3.2
)
 

 
3.2

 
(3.2
)
Reclassification adjustment for gains to net income
(0.4
)
 

 
(0.4
)
 

 
0.4

 
(0.4
)
Pension plan:
 
 
 
 
 
 
 
 
 
 
 
Reclassification adjustment to net income for amortization of actuarial losses
0.2

 

 
0.2

 

 
(0.2
)
 
0.2

Total other comprehensive income (loss)
(5.1
)
 

 
(5.4
)
 
0.3

 
5.1

 
(5.1
)
Total comprehensive income (loss)
$
(15.1
)
 
$
(0.2
)
 
$
(154.1
)
 
$
(5.2
)
 
$
159.5

 
$
(15.1
)

Condensed Consolidated Statement of Comprehensive Income (Loss)
For the 13 weeks ended May 5, 2018
(Unaudited)
(in millions)
Signet
Jewelers
Limited
 
Signet UK
Finance plc
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net income (loss)
$
(496.6
)
 
$
(0.2
)
 
$
(1,132.8
)
 
$
(495.7
)
 
$
1,628.7

 
$
(496.6
)
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
(21.7
)
 

 
(21.5
)
 
(0.2
)
 
21.7

 
(21.7
)
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain
(0.2
)
 

 

 
(0.2
)
 
0.2

 
(0.2
)
Impact from adoption of new accounting pronouncements(1)
(0.8
)
 

 

 
(0.8
)
 
0.8

 
(0.8
)
Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain
1.5

 

 
1.5

 

 
(1.5
)
 
1.5

Reclassification adjustment for gains to net income
(0.3
)
 

 
(0.3
)
 

 
0.3

 
(0.3
)
Pension plan:
 
 
 
 
 
 
 
 
 
 
 
Reclassification adjustment to net income for amortization of actuarial losses
0.3

 

 
0.3

 

 
(0.3
)
 
0.3

Reclassification adjustment to net income for amortization of net prior service credits
(0.1
)
 

 
(0.1
)
 

 
0.1

 
(0.1
)
Total other comprehensive income
(21.3
)
 

 
(20.1
)
 
(1.2
)
 
21.3

 
(21.3
)
Total comprehensive income (loss)
$
(517.9
)
 
$
(0.2
)
 
$
(1,152.9
)
 
$
(496.9
)
 
$
1,650.0

 
$
(517.9
)

(1) 
Adjustment reflects the reclassification of unrealized gains related to the Company’s equity security investments as of February 3, 2018 from AOCI into retained earnings associated with the adoption of ASU 2016-1.

Condensed Consolidated Balance Sheet
May 4, 2019
(Unaudited)
(in millions)
Signet
Jewelers
Limited
 
Signet UK
Finance plc
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
0.4

 
$
0.1

 
$
133.7

 
$
60.9

 
$

 
$
195.1

Accounts receivable

 

 
13.4

 
9.7

 

 
23.1

Intra-entity receivables, net

 
11.8

 
30.7

 
297.2

 
(339.7
)
 

Other current assets

 

 
171.8

 
33.7

 

 
205.5

Income taxes

 

 
4.3

 
0.5

 

 
4.8

Inventories

 

 
2,309.0

 
85.2

 

 
2,394.2

Total current assets
0.4

 
11.9

 
2,662.9

 
487.2

 
(339.7
)
 
2,822.7

Non-current assets:
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment, net

 

 
765.5

 
10.6

 

 
776.1

Operating lease right-of-use assets

 

 
1,814.7

 
8.1

 

 
1,822.8

Goodwill

 

 
206.1

 
90.3

 

 
296.4

Intangible assets, net

 

 
243.3

 
20.8

 

 
264.1

Investment in subsidiaries
2,144.9

 

 
(96.3
)
 
(382.4
)
 
(1,666.2
)
 

Intra-entity receivables, net

 
400.0

 

 
2,583.0

 
(2,983.0
)
 

Other assets

 

 
165.9

 
23.3

 

 
189.2

Deferred tax assets

 

 
25.9

 
(3.9
)
 

 
22.0

Total assets
$
2,145.3

 
$
411.9

 
$
5,788.0

 
$
2,837.0

 
$
(4,988.9
)
 
$
6,193.3

Liabilities and Shareholders’ equity
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
Loans and overdrafts
$

 
$
(0.7
)
 
$
44.4

 
$

 
$

 
$
43.7

Accounts payable

 

 
176.1

 
62.2

 

 
238.3

Intra-entity payables, net
339.7

 

 

 

 
(339.7
)
 

Accrued expenses and other current liabilities
28.5

 
7.1

 
362.0

 
22.6

 

 
420.2

Deferred revenue

 

 
266.7

 
10.3

 

 
277.0

Operating lease liabilities

 

 
357.0

 
1.9

 

 
358.9

Income taxes

 

 
23.8

 
0.3

 

 
24.1

Total current liabilities
368.2

 
6.4

 
1,230.0

 
97.3

 
(339.7
)
 
1,362.2

Non-current liabilities:
 
 
 
 
 
 
 
 
 
 
 
Long-term debt

 
396.2

 
242.8

 

 

 
639.0

Intra-entity payables, net

 

 
2,983.0

 

 
(2,983.0
)
 

Operating lease liabilities

 

 
1,583.2

 
6.2

 

 
1,589.4

Other liabilities

 

 
121.4

 
4.6

 

 
126.0

Deferred revenue

 

 
699.6

 

 

 
699.6

Total liabilities
368.2

 
402.6

 
6,860.0

 
108.1

 
(3,322.7
)
 
4,416.2

Series A redeemable convertible preferred shares
615.7

 

 

 

 

 
615.7

Total shareholders’ equity (deficit)
1,161.4

 
9.3

 
(1,072.0
)
 
2,728.9

 
(1,666.2
)
 
1,161.4

Total liabilities, redeemable convertible preferred shares and shareholders’ equity
$
2,145.3

 
$
411.9

 
$
5,788.0

 
$
2,837.0

 
$
(4,988.9
)
 
$
6,193.3

Condensed Consolidated Balance Sheet
February 2, 2019

(in millions)
Signet
Jewelers
Limited
 
Signet UK
Finance plc
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
0.2

 
$
0.1

 
$
146.7

 
$
48.4

 
$

 
$
195.4

Accounts receivable

 

 
14.3

 
9.4

 

 
23.7

Intra-entity receivables, net

 
7.9

 
83.4

 
220.0

 
(311.3
)
 

Other current assets

 

 
215.9

 
28.1

 

 
244.0

Income taxes

 

 
5.1

 
0.7

 

 
5.8

Inventories

 

 
2,302.6

 
84.3

 

 
2,386.9

Total current assets
0.2

 
8.0

 
2,768.0

 
390.9

 
(311.3
)
 
2,855.8

Non-current assets:
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment, net

 

 
789.6

 
10.9

 

 
800.5

Goodwill

 

 
206.3

 
90.3

 

 
296.6

Intangible assets, net

 

 
244.0

 
21.0

 

 
265.0

Investment in subsidiaries
2,155.7

 

 
(15.7
)
 
(305.5
)
 
(1,834.5
)
 

Intra-entity receivables, net

 
400.0

 

 
2,588.0

 
(2,988.0
)
 

Other assets

 

 
164.0

 
17.2

 

 
181.2

Deferred tax assets

 

 
24.5

 
(3.5
)
 

 
21.0

Total assets
$
2,155.9

 
$
408.0

 
$
4,180.7

 
$
2,809.3

 
$
(5,133.8
)
 
$
4,420.1

Liabilities and Shareholders’ equity
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
Loans and overdrafts
$

 
$
(0.7
)
 
$
79.5

 
$

 
$

 
$
78.8

Accounts payable

 

 
119.7

 
34.0

 

 
153.7

Intra-entity payables, net
311.3

 

 

 

 
(311.3
)
 

Accrued expenses and other current liabilities
27.7

 
2.4

 
450.4

 
22.3

 

 
502.8

Deferred revenue

 

 
257.6

 
12.4

 

 
270.0

Income taxes

 
0.8

 
26.4

 
0.5

 

 
27.7

Total current liabilities
339.0

 
2.5

 
933.6

 
69.2

 
(311.3
)
 
1,033.0

Non-current liabilities:
 
 
 
 
 
 
 
 
 
 
 
Long-term debt

 
396.0

 
253.6

 

 

 
649.6

Intra-entity payables, net

 

 
2,988.0

 

 
(2,988.0
)
 

Other liabilities

 

 
219.4

 
4.7

 

 
224.1

Deferred revenue

 

 
696.5

 

 

 
696.5

Deferred tax liabilities

 

 

 

 

 

Total liabilities
339.0

 
398.5

 
5,091.1

 
73.9

 
(3,299.3
)
 
2,603.2

Series A redeemable convertible preferred shares
615.3

 

 

 

 

 
615.3

Total shareholders’ equity (deficit)
1,201.6

 
9.5

 
(910.4
)
 
2,735.4

 
(1,834.5
)
 
1,201.6

Total liabilities, redeemable convertible preferred shares and shareholders’ equity
$
2,155.9

 
$
408.0

 
$
4,180.7

 
$
2,809.3

 
$
(5,133.8
)
 
$
4,420.1



Condensed Consolidated Balance Sheet
May 5, 2018
(Unaudited)
(in millions)
Signet
Jewelers
Limited
 
Signet UK
Finance plc
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1.3

 
$
0.1

 
$
102.5

 
$
50.0

 
$

 
$
153.9

Accounts receivable

 

 
490.4

 
1.0

 

 
491.4

Intra-entity receivables, net

 
7.8

 

 
237.3

 
(245.1
)
 

Other current assets

 

 
208.6

 
28.2

 

 
236.8

Income taxes

 

 
32.0

 
23.2

 

 
55.2

Inventories

 

 
2,360.6

 
68.4

 

 
2,429.0

Total current assets
1.3

 
7.9

 
3,194.1

 
408.1

 
(245.1
)
 
3,366.3

Non-current assets:
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment, net

 

 
839.7

 
7.5

 

 
847.2

Goodwill

 

 
206.4

 
302.7

 

 
509.1

Intangible assets, net

 

 
268.4

 
74.8

 

 
343.2

Investment in subsidiaries
2,571.8

 

 
579.4

 
15.6

 
(3,166.8
)
 

Intra-entity receivables, net

 
400.0

 

 
2,825.0

 
(3,225.0
)
 

Other assets

 

 
176.4

 
29.9

 

 
206.3

Deferred tax assets

 

 
0.8

 

 

 
0.8

Total assets
$
2,573.1

 
$
407.9

 
$
5,265.2

 
$
3,663.6

 
$
(6,636.9
)
 
$
5,272.9

Liabilities and Shareholders’ equity
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
Loans and overdrafts
$

 
$
(0.7
)
 
$
73.0

 
$

 
$

 
$
72.3

Accounts payable

 

 
257.2

 
30.3

 

 
287.5

Intra-entity payables, net
36.3

 

 
208.8

 

 
(245.1
)
 

Accrued expenses and other current liabilities
30.2

 
7.1

 
403.7

 
22.7

 

 
463.7

Deferred revenue

 

 
272.1

 
12.8

 

 
284.9

Total current liabilities
66.5

 
6.4

 
1,214.8

 
65.8

 
(245.1
)
 
1,108.4

Non-current liabilities:
 
 
 
 
 
 
 
 
 
 
 
Long-term debt

 
395.4

 
284.3

 

 

 
679.7

Intra-entity payables, net

 

 
3,225.0

 

 
(3,225.0
)
 

Other liabilities

 

 
231.5

 
5.0

 

 
236.5

Deferred revenue

 

 
667.5

 

 

 
667.5

Deferred tax liabilities

 

 
57.5

 
16.7

 

 
74.2

Total liabilities
66.5

 
401.8

 
5,680.6

 
87.5

 
(3,470.1
)
 
2,766.3

Series A redeemable convertible preferred shares
614.0

 

 

 

 

 
614.0

Total shareholders’ equity (deficit)
1,892.6

 
6.1

 
(415.4
)
 
3,576.1

 
(3,166.8
)
 
1,892.6

Total liabilities, redeemable convertible preferred shares and shareholders’ equity
$
2,573.1

 
$
407.9

 
$
5,265.2

 
$
3,663.6

 
$
(6,636.9
)
 
$
5,272.9




Condensed Consolidated Statement of Cash Flows
For the 13 weeks ended May 4, 2019
(Unaudited)

(in millions)
Signet
Jewelers
Limited
 
Signet UK
Finance plc
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net cash provided by (used in) operating activities
$
(0.1
)
 
$
3.9

 
$
9.3

 
$
92.3

 
$

 
$
105.4

Investing activities
 
 
 
 
 
 
 
 
 
 
 
Purchase of property, plant and equipment

 

 
(24.6
)
 

 

 
(24.6
)
Purchase of available-for-sale securities

 

 

 
(6.1
)
 

 
(6.1
)
Proceeds from available-for-sale securities

 

 

 
0.3

 

 
0.3

Net cash provided by (used in) investing activities

 

 
(24.6
)
 
(5.8
)
 

 
(30.4
)
Financing activities
 
 
 
 
 
 
 
 
 
 
 
Dividends paid on common shares
(19.2
)
 

 

 

 

 
(19.2
)
Dividends paid on redeemable convertible preferred shares
(7.8
)
 

 

 

 

 
(7.8
)
Repayments of term and bridge loans

 

 
(8.9
)
 

 

 
(8.9
)
Repayments of bank overdrafts

 

 
(37.3
)
 

 

 
(37.3
)
Other financing activities
(1.5
)
 

 

 

 

 
(1.5
)
Intra-entity activity, net
28.8

 
(3.9
)
 
49.2

 
(74.1
)
 

 

Net cash provided by (used in) financing activities
0.3

 
(3.9
)
 
3.0

 
(74.1
)
 

 
(74.7
)
Cash and cash equivalents at beginning of period
0.2

 
0.1

 
146.7

 
48.4

 

 
195.4

Increase (decrease) in cash and cash equivalents
0.2

 

 
(12.4
)
 
12.5

 

 
0.3

Effect of exchange rate changes on cash and cash equivalents

 

 
(0.6
)
 

 

 
(0.6
)
Cash and cash equivalents at end of period
$
0.4

 
$
0.1

 
$
133.7

 
$
60.9

 
$

 
$
195.1


Condensed Consolidated Statement of Cash Flows
For the 13 weeks ended May 5, 2018
(Unaudited)

(in millions)
Signet
Jewelers
Limited
 
Signet UK
Finance plc
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net cash provided by (used in) operating activities
$
61.2

 
$
4.9

 
$
(68.0
)
 
$
93.4

 
$
(63.6
)
 
$
27.9

Investing activities
 
 
 
 
 
 
 
 
 
 
 
Purchase of property, plant and equipment

 

 
(25.9
)
 
(0.2
)
 

 
(26.1
)
Purchase of available-for-sale securities

 

 

 
(0.4
)
 

 
(0.4
)
Proceeds from available-for-sale securities

 

 

 
1.1

 

 
1.1

Net cash provided by (used in) investing activities

 

 
(25.9
)
 
0.5

 

 
(25.4
)
Financing activities
 
 
 
 
 
 
 
 
 
 
 
Dividends paid on common shares
(18.8
)
 

 

 

 

 
(18.8
)
Dividends paid on redeemable convertible preferred shares
(7.8
)
 

 

 

 

 
(7.8
)
Intra-entity dividends paid

 

 

 
(63.6
)
 
63.6

 

Repurchase of common shares
(60.0
)
 

 

 

 

 
(60.0
)
Proceeds from term and bridge loans

 

 
(6.7
)
 

 

 
(6.7
)
Proceeds from revolving credit facility

 

 
40.0

 

 

 
40.0

Repayments of revolving credit facility

 

 
(13.9
)
 

 

 
(13.9
)
Other financing activities
(2.1
)
 

 

 

 

 
(2.1
)
Intra-entity activity, net
27.1

 
(4.9
)
 
30.8

 
(53.0
)
 

 

Net cash provided by (used in) financing activities
(61.6
)
 
(4.9
)
 
50.2

 
(116.6
)
 
63.6

 
(69.3
)
Cash and cash equivalents at beginning of period
1.7

 
0.1

 
150.5

 
72.8

 

 
225.1

Increase (decrease) in cash and cash equivalents
(0.4
)
 

 
(43.7
)
 
(22.7
)
 

 
(66.8
)
Effect of exchange rate changes on cash and cash equivalents

 

 
(4.3
)
 
(0.1
)
 

 
(4.4
)
Cash and cash equivalents at end of period
$
1.3

 
$
0.1

 
$
102.5

 
$
50.0

 
$

 
$
153.9

v3.19.1
Organization and principal accounting policies (Policies)
3 Months Ended
May 04, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of preparation
Basis of preparation
The condensed consolidated financial statements of Signet are prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with US generally accepted accounting principles (“US GAAP”) have been condensed or omitted from this report, as is permitted by such rules and regulations. In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of the results for the interim periods. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and notes included in Signet’s Annual Report on Form 10-K for the fiscal year ended February 2, 2019 filed with the SEC on April 3, 2019. Signet has reclassified certain prior year amounts in its consolidated financial statements and notes to the consolidated financial statements to conform to the current year presentation.
Use of estimates
Use of estimates
The preparation of these condensed consolidated financial statements, in conformity with US GAAP and SEC regulations for interim reporting, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates and assumptions are primarily made in relation to the valuation of accounts receivable, inventories, deferred revenue, derivatives, employee benefits, income taxes, contingencies, asset impairments, leases, indefinite-lived intangible assets, depreciation and amortization of long-lived assets, as well as accounting for business combinations.
Fiscal year
Fiscal year
The Company’s fiscal year ends on the Saturday nearest to January 31st. Fiscal 2020 and Fiscal 2019 refer to the 52 week periods ending February 1, 2020 and February 2, 2019, respectively. Within these condensed consolidated financial statements, the first quarter of the relevant fiscal years 2020 and 2019 refer to the 13 weeks ended May 4, 2019 and May 5, 2018, respectively.
Foreign currency transactions
Foreign currency translation
The financial position and operating results of certain foreign operations, including certain subsidiaries operating in the UK as part of the International segment and Canada as part of the North America 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 condensed consolidated statements of equity as a component of accumulated other comprehensive income (loss) (“AOCI”). Gains or losses resulting from foreign currency transactions are included within the condensed consolidated statements of operations.
New accounting pronouncements
New accounting pronouncements adopted during the period
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 remaining 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. Signet adopted ASU 2016-02 and related updates effective February 3, 2019 using the additional transition method provided for in ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements,” which permitted the Company as of the effective date of ASU 2016-02 to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The impact of this approach was deemed immaterial upon adoption of ASU 2016-02.
The Company has elected the practical expedient to account for the lease and non-lease maintenance components as a single lease component. Therefore, for those leases, the lease payments used to measure the lease liability include all of the fixed consideration in the contract. Additionally, the Company utilized the practical expedient relief package, as well as the short-term leases and portfolio approach practical expedients. The effects of the changes made to the Company’s condensed consolidated balance sheet as of February 3, 2019 for the adoption of ASC 842 were as follows:
(in millions)
 
February 2, 2019
 
Adjustments due to ASC 842
 
February 3, 2019
Current assets:
 
 
 
 
 
 
Other current assets
 
$
244.0

 
$
(8.8
)
 
$
235.2

Non-current assets:
 
 
 
 
 
 
Operating lease right-of-use assets
 

 
1,927.2

 
1,927.2

Current liabilities:
 
 
 
 
 
 
Accrued expenses and other current liabilities
 
502.8

 
(109.0
)
 
393.8

Operating lease liabilities
 

 
376.5

 
376.5

Non-current liabilities:
 
 
 
 
 
 
Operating lease liabilities
 

 
1,676.9

 
1,676.9

Other liabilities
 
224.1

 
(26.0
)
 
198.1


See additional disclosure requirements within Note 13.
In addition to the pronouncement above, the following ASUs were adopted as of February 3, 2019. The impact on the Company's consolidated financial statements is described within the table below.
Standard
 
Description
ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, issued August 2017.
 
Expands the types of risk management strategies eligible for hedge accounting, refines the documentation and effectiveness assessment requirements and modifies the presentation and disclosure requirements for hedge accounting activities. The adoption of ASU 2017-12 did not have a material impact on the Company’s financial position or results of operations.
New accounting pronouncements to be adopted in future periods
The Company is also currently evaluating the impact on its financial statements of the following ASUs:
Standard
 
Description
ASU No. 2018-13, Fair Value Measurements (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, issued August 2018.
 
Modifies the disclosure requirements on fair value measurements in Topic 820 and eliminates ‘at a minimum’ from the phrase ‘an entity shall disclose at a minimum’ to promote the appropriate exercise of discretion by entities when considering fair value disclosures and to clarify that materiality is an appropriate consideration. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted.
ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Topic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans, issued August 2018.
 
Modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans and clarifies the disclosure requirements regarding projected benefit obligations and accumulated benefit obligations. The ASU is effective for fiscal years ending after December 15, 2020, with early adoption permitted.
v3.19.1
New accounting pronouncements (Tables)
3 Months Ended
May 05, 2018
Accounting Policies [Abstract]  
Schedule of New Accounting Pronouncements and Changes in Accounting Principles
The effects of the changes made to the Company’s condensed consolidated balance sheet as of February 3, 2019 for the adoption of ASC 842 were as follows:
(in millions)
 
February 2, 2019
 
Adjustments due to ASC 842
 
February 3, 2019
Current assets:
 
 
 
 
 
 
Other current assets
 
$
244.0

 
$
(8.8
)
 
$
235.2

Non-current assets:
 
 
 
 
 
 
Operating lease right-of-use assets
 

 
1,927.2

 
1,927.2

Current liabilities:
 
 
 
 
 
 
Accrued expenses and other current liabilities
 
502.8

 
(109.0
)
 
393.8

Operating lease liabilities
 

 
376.5

 
376.5

Non-current liabilities:
 
 
 
 
 
 
Operating lease liabilities
 

 
1,676.9

 
1,676.9

Other liabilities
 
224.1

 
(26.0
)
 
198.1

v3.19.1
Revenue recognition (Tables)
3 Months Ended
May 04, 2019
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The following tables provide the Company’s revenue, disaggregated by banner, major product and channel, for the 13 weeks ended May 4, 2019 and May 5, 2018:
 
13 weeks ended May 4, 2019
 
13 weeks ended May 5, 2018
(in millions)
North America
 
International
 
Other
 
Consolidated
 
North America
 
International
 
Other
 
Consolidated
Sales by banner:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Kay
$
574.8

 
$

 
$

 
$
574.8

 
$
583.2

 
$

 
$

 
$
583.2

Zales
285.0

 

 

 
285.0

 
298.1

 

 

 
298.1

Jared
255.0

 

 

 
255.0

 
267.5

 

 

 
267.5

Piercing Pagoda
82.6

 

 

 
82.6

 
74.4

 

 

 
74.4

James Allen
52.0

 

 

 
52.0

 
53.3

 

 

 
53.3

Peoples
41.7

 

 

 
41.7

 
46.7

 

 

 
46.7

Regional banners
9.2

 

 

 
9.2

 
24.6

 

 

 
24.6

International segment

 
111.5

 

 
111.5

 

 
128.7

 

 
128.7

Other(1)

 

 
19.9

 
19.9

 

 

 
4.1

 
4.1

Total sales
$
1,300.3

 
$
111.5

 
$
19.9

 
$
1,431.7

 
$
1,347.8

 
$
128.7

 
$
4.1

 
$
1,480.6

(1)  
Includes sales from Signet’s diamond sourcing initiative.
 
13 weeks ended May 4, 2019
 
13 weeks ended May 5, 2018
(in millions)
North America
 
International
 
Other
 
Consolidated
 
North America
 
International
 
Other
 
Consolidated
Sales by product:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bridal
$
594.7

 
$
48.6

 
$

 
$
643.3

 
$
617.9

 
$
55.6

 
$

 
$
673.5

Fashion
467.4

 
22.4

 

 
489.8

 
461.1

 
25.9

 

 
487.0

Watches
48.2

 
34.0

 

 
82.2

 
52.2

 
39.1

 

 
91.3

Other(1)
190.0

 
6.5

 
19.9

 
216.4

 
216.6

 
8.1

 
4.1

 
228.8

Total sales
$
1,300.3

 
$
111.5

 
$
19.9

 
$
1,431.7

 
$
1,347.8

 
$
128.7

 
$
4.1

 
$
1,480.6

(1)  
Other revenue primarily includes gift, beads and other miscellaneous jewelery sales, repairs, warranty and other miscellaneous non-jewelry sales.
 
13 weeks ended May 4, 2019
 
13 weeks ended May 5, 2018
(in millions)
North America
 
International
 
Other
 
Consolidated
 
North America
 
International
 
Other
 
Consolidated
Sales by channel:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Store
$
1,157.3

 
$
100.2

 
$

 
$
1,257.5

 
$
1,213.7

 
$
116.3

 
$

 
$
1,330.0

E-commerce
143.0

 
11.3

 

 
154.3

 
134.1

 
12.4

 

 
146.5

Other

 

 
19.9

 
19.9

 

 

 
4.1

 
4.1

Total sales
$
1,300.3

 
$
111.5

 
$
19.9

 
$
1,431.7

 
$
1,347.8

 
$
128.7

 
$
4.1

 
$
1,480.6

Other Assets
Unamortized deferred selling costs as of May 4, 2019, February 2, 2019 and May 5, 2018 were as follows:
(in millions)
May 4, 2019
 
February 2, 2019
 
May 5, 2018
Deferred ESP selling costs
 
 
 
 
 
Other current assets
$
23.8

 
$
23.8

 
$
30.6

Other assets
76.4

 
75.4

 
89.2

Total deferred ESP selling costs
$
100.2

 
$
99.2

 
$
119.8

Deferred Revenue
Deferred revenue is comprised primarily of ESP and sale voucher promotions and other as follows:
(in millions)
May 4, 2019
 
February 2, 2019
 
May 5, 2018
ESP deferred revenue
$
931.3

 
$
927.6

 
$
913.5

Voucher promotions and other
45.3

 
38.9

 
38.9

Total deferred revenue
$
976.6

 
$
966.5

 
$
952.4

 
 
 
 
 
 
Disclosed as:
 
 
 
 
 
Current liabilities
$
277.0

 
$
270.0

 
$
284.9

Non-current liabilities
699.6

 
696.5

 
667.5

Total deferred revenue
$
976.6

 
$
966.5

 
$
952.4

 
 
13 weeks ended
(in millions)
 
May 4, 2019
 
May 5, 2018
ESP deferred revenue, beginning of period
 
$
927.6

 
$
916.1

Plans sold(1)
 
96.0

 
96.0

Revenue recognized
 
(92.3
)
 
(98.6
)
ESP deferred revenue, end of period
 
$
931.3

 
$
913.5

(1) 
Includes impact of foreign exchange translation.
v3.19.1
Segment information (Tables)
3 Months Ended
May 04, 2019
Segment Reporting [Abstract]  
Segment reporting information, by segment
 
 
13 weeks ended
(in millions)
 
May 4, 2019
 
May 5, 2018
Sales:
 
 
 
 
North America segment
 
$
1,300.3

 
$
1,347.8

International segment
 
111.5

 
128.7

Other
 
19.9

 
4.1

Total sales
 
$
1,431.7

 
$
1,480.6

 
 
 
 
 
Operating income (loss):
 
 
 
 
North America segment(1)
 
$
48.1

 
$
(537.3
)
International segment
 
(8.0
)
 
(7.6
)
Other(2)
 
(42.7
)
 
(29.3
)
Total operating income (loss)
 
$
(2.6
)
 
$
(574.2
)
(1) 
Operating income (loss) during the 13 weeks ended May 4, 2019 includes a $0.5 million benefit recognized due to a change in inventory reserves previously recognized as part of the Company’s restructuring activities. See Note 5 for additional information. Operating income (loss) during the 13 weeks ended May 5, 2018 includes charges of $448.7 million and $141.0 million related to the goodwill and intangible impairments recognized and valuation losses related to the sale of eligible non-prime in-house accounts receivable, respectively. See Note 14 and Note 11 for additional information.
(2) 
Operating income (loss) during the 13 weeks ended May 4, 2019 includes charges of $27.3 million, primarily related to severance and professional services recorded in conjunction with the Company’s restructuring activities. Operating income (loss) during the 13 weeks ended May 5, 2018 includes charges of $6.5 million recorded in conjunction with the Company’s restructuring activities. See Note 5 for additional information.
(in millions)
May 4, 2019
 
February 2, 2019
 
May 5, 2018
Total assets:
 
 
 
 
 
North America segment
$
5,437.4

 
$
3,943.0

 
$
4,722.3

International segment
608.1

 
367.4

 
401.7

Other
147.8

 
109.7

 
148.9

Total assets
$
6,193.3

 
$
4,420.1

 
$
5,272.9

v3.19.1
Restructuring Plans (Tables)
3 Months Ended
May 04, 2019
Restructuring and Related Activities [Abstract]  
Restructuring and Related Costs
Restructuring charges and other Plan related costs are classified in the condensed consolidated statements of operations as follows:
 
 
 
13 weeks ended
(in millions)
Statement of operations caption
 
May 4, 2019
 
May 5, 2018
Other Plan related expenses
Restructuring charges
 
$
26.8

 
$
6.5

Total Signet Path to Brilliance Plan expenses
 
 
$
26.8

 
$
6.5


Schedule of Plan Liabilities
The following table summarizes the activity related to the Plan liabilities for Fiscal 2020:
(in millions)
 
Termination benefits
 
Store closure and other costs
 
Consolidated
Balance at February 2, 2019
 
$

 
$
12.6

 
$
12.6

Payments and other adjustments
 
(2.0
)
 
(25.1
)
 
(27.1
)
Charged to expense
 
8.8

 
18.0

 
26.8

Balance at May 4, 2019
 
$
6.8

 
$
5.5

 
$
12.3

v3.19.1
Redeemable preferred shares (Tables)
3 Months Ended
May 04, 2019
Temporary Equity [Abstract]  
Redeemable Preferred Shares
(in millions, except conversion rate and conversion price)
May 4, 2019
 
February 2, 2019
 
May 5, 2018
Conversion rate
11.5493

 
11.3660

 
10.9409

Conversion price
$
86.5853

 
$
87.9817

 
$
91.4002

Potential impact of preferred shares if-converted to common shares
7.2

 
7.1

 
6.8

Liquidation preference
$
632.8

 
$
632.8

 
$
632.8

v3.19.1
Shareholders' equity (Tables)
3 Months Ended
May 04, 2019
Class of Stock [Line Items]  
Class of Treasury Stock
Common shares repurchased during the 13 weeks ended May 4, 2019 and May 5, 2018 were as follows:
 
 
 
13 weeks ended May 4, 2019
 
13 weeks ended May 5, 2018
(in millions, except per share amounts)
Amount
authorized
 
Shares
repurchased
 
Amount
repurchased
 
Average
repurchase
price per
share
 
Shares
repurchased
 
Amount
repurchased
 
Average
repurchase
price per
share
2017 Program(1)
$
600.0

 

 
$

 
$

 
0.2

 
$
9.4

 
$
38.86

2016 Program(2)
$
1,375.0

 
n/a

 
n/a

 
n/a

 
1.3

 
$
50.6

 
$
39.76

Total
 
 

 
$

 
$

 
1.5

 
$
60.0

 
$
39.62

(1) 
The 2017 Program had $165.6 million remaining as of May 4, 2019.
(2) 
The 2016 Program was completed in March 2018.
n/a
Not applicable.
Common Stock  
Class of Stock [Line Items]  
Schedule of Dividends
Dividends on common shares
Dividends declared on common shares during the 13 weeks ended May 4, 2019 and May 5, 2018 were as follows:
 
Fiscal 2020
 
Fiscal 2019
(in millions, except per share amounts)
Cash dividend per share
 
Total
dividends
 
Cash dividend
per share
 
Total
dividends
First quarter(1)
$
0.37

 
$
19.3

 
$
0.37

 
$
21.8

(1) 
Signet’s dividend policy for common shares results in the dividend payment date being a quarter in arrears from the declaration date. As a result, as of May 4, 2019 and May 5, 2018, $19.3 million and $21.8 million, respectively, has been recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheets reflecting the cash dividends on common shares declared for the first quarter of Fiscal 2020 and Fiscal 2019, respectively.
Series A Redeemable Convertible Preferred Stock  
Class of Stock [Line Items]  
Schedule of Dividends
Dividends on preferred shares
Dividends declared on preferred shares during the 13 weeks ended May 4, 2019 and May 5, 2018 were as follows:
 
Fiscal 2020
 
Fiscal 2019
(in millions)
Cash dividend
per share
 
Total cash
dividends
 
Cash dividend
per share
 
Total cash
dividends
First quarter(1)
$
12.50

 
$
7.8

 
$
12.50

 
$
7.8

(1) 
Signet’s preferred shares dividends results in the dividend payment date being a quarter in arrears from the declaration date. As a result, as of May 4, 2019 and May 5, 2018, $7.8 million and $7.8 million, respectively, has been recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheets reflecting the cash dividends on preferred shares declared for the first quarter of Fiscal 2020 and Fiscal 2019, respectively.
v3.19.1
Earnings (loss) per common share (“EPS”) (Tables)
3 Months Ended
May 04, 2019
Earnings Per Share [Abstract]  
Schedule of earnings per share, basic
The computation of basic EPS is outlined in the table below:
 
 
13 weeks ended
(in millions, except per share amounts)
 
May 4, 2019
 
May 5, 2018
Numerator:
 
 
 
 
Net income (loss) attributable to common shareholders
 
$
(18.2
)
 
$
(504.8
)
Denominator:
 
 
 
 
Weighted average common shares outstanding
 
51.6

 
59.5

EPS – basic
 
$
(0.35
)
 
$
(8.48
)
Schedule of earnings per share, diluted
The computation of diluted EPS is outlined in the table below:
 
 
13 weeks ended
(in millions, except per share amounts)
 
May 4, 2019
 
May 5, 2018
Numerator:
 
 
 
 
Net income (loss) attributable to common shareholders
 
$
(18.2
)
 
$
(504.8
)
Numerator for diluted EPS
 
$
(18.2
)
 
$
(504.8
)
 
 
 
 
 
Denominator:
 
 
 
 
Weighted average common shares outstanding
 
51.6

 
59.5

Diluted weighted average common shares outstanding
 
51.6

 
59.5

 
 
 
 
 
EPS – diluted
 
$
(0.35
)
 
$
(8.48
)
Schedule of antidilutive securities excluded from computation of earnings per share
The calculation of diluted EPS excludes the following items for each respective period on the basis that their effect would be anti-dilutive.
 
 
13 weeks ended
(in millions)
 
May 4, 2019
 
May 5, 2018
Share awards
 
1.1

 
0.5

Potential impact of preferred shares
 
7.2

 
6.8

Total anti-dilutive shares
 
8.3

 
7.3

v3.19.1
Accumulated other comprehensive income (loss) (Tables)
3 Months Ended
May 04, 2019
Equity [Abstract]  
Schedule of 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
losses
 
Prior
service
credits
 
Accumulated
other
comprehensive
loss
Balance at February 2, 2019
$
(248.4
)
 
$
(0.5
)
 
$
4.0

 
$
(53.8
)
 
$
(4.1
)
 
$
(302.8
)
Other comprehensive income (loss) (“OCI”) before reclassifications
(2.0
)
 
0.3

 
(3.2
)
 

 

 
(4.9
)
Amounts reclassified from AOCI to net income

 

 
(0.4
)
 
0.2

 

 
(0.2
)
Net current period OCI
(2.0
)
 
0.3

 
(3.6
)
 
0.2

 

 
(5.1
)
Balance at May 4, 2019
$
(250.4
)
 
$
(0.2
)
 
$
0.4

 
$
(53.6
)
 
$
(4.1
)
 
$
(307.9
)

Reclassification out of Accumulated Other Comprehensive Income
The amounts reclassified from AOCI were as follows:
 
Amounts reclassified from AOCI
 
 
 
 
13 weeks ended
 
 
(in millions)
 
May 4, 2019
 
May 5, 2018
 
Statement of operations caption
Losses (gains) on cash flow hedges:
 
 
 
 
 
 
Foreign currency contracts
 
$
(0.3
)
 
$
0.3

 
Cost of sales (see Note 15)
Interest rate swaps
 
(0.6
)
 
(0.3
)
 
Interest expense, net
(see Note 15)
Commodity contracts
 
0.4

 
(0.5
)
 
Cost of sales (see Note 15)
Total before income tax
 
(0.5
)
 
(0.5
)
 
 
Income taxes
 
0.1

 
0.2

 
 
Net of tax
 
(0.4
)
 
(0.3
)
 
 
 
 
 
 
 
 
 
Defined benefit pension plan items:
 
 
 
 
 
 
Amortization of unrecognized actuarial losses
 
0.3

 
0.3

 
Other non-operating income
Amortization of unrecognized net prior service credits
 

 
(0.1
)
 
Other non-operating income
Total before income tax
 
0.3

 
0.2

 
 
Income taxes
 
(0.1
)
 

 
 
Net of tax
 
0.2

 
0.2

 
 
 
 
 
 
 
 
 
Total reclassifications, net of tax
 
$
(0.2
)
 
$
(0.1
)
 
 
v3.19.1
Income taxes (Tables)
3 Months Ended
May 04, 2019
Income Tax Disclosure [Abstract]  
Reconciliation Of Effective Tax Rate
 
13 weeks ended
 
May 4, 2019
 
May 5, 2018
Effective tax rate before discrete items
14.7
 %
 
28.3
 %
Discrete items recognized
(1.7
)%
 
(13.5
)%
Effective tax rate recognized in statement of operations
13.0
 %
 
14.8
 %
v3.19.1
Accounts receivable (Tables)
3 Months Ended
May 04, 2019
Receivables [Abstract]  
Accounts Receivable By Portfolio Segment
The following table presents the components of Signet’s accounts receivable:
(in millions)
May 4, 2019
 
February 2, 2019
 
May 5, 2018
Accounts receivable, held for investment
$
15.3

 
$
19.5

 
$
6.8

Accounts receivable, held for sale
$
7.8

 
$
4.2

 
$
484.6

Accounts receivable
$
23.1

 
$
23.7

 
$
491.4

v3.19.1
Inventories (Tables)
3 Months Ended
May 04, 2019
Inventory Disclosure [Abstract]  
Schedule of Inventory, Current
The following table summarizes the Company’s inventory by classification:
(in millions)
May 4, 2019
 
February 2, 2019
 
May 5, 2018
Raw materials
$
74.2

 
$
76.3

 
$
69.7

Finished goods
2,320.0

 
2,310.6

 
2,359.3

Total inventories
$
2,394.2

 
$
2,386.9

 
$
2,429.0

v3.19.1
Leases (Tables)
3 Months Ended
May 04, 2019
Leases [Abstract]  
Schedule of Lease Term and DIscount Rate
Weighted average lease term and discount rate were as follows:
 
 
May 4, 2019
Weighted average remaining lease term (in years)
 
7.3

Weighted average discount rate
 
5.5
%
Total Lease Costs For Operating Leases
Total lease costs for operating leases are as follows:
 
 
13 weeks ended
(in millions)
 
May 4, 2019
Operating lease cost
 
$
114.4

Short-term lease cost
 
7.8

Variable lease cost
 
26.6

Sublease income
 
(0.7
)
Total lease cost
 
$
148.1

Schedule of Supplemental Cash Flow Information
Supplemental cash flow information related to leases was as follows:
 
 
13 weeks ended
(in millions)
 
May 4, 2019
Cash paid for amounts included in the measurement of lease liabilities:
 
 
Operating cash flows from operating leases
 
$
118.0

Operating lease right-of-use assets obtained in exchange for lease obligations
 
6.5

Future Minimum Operating Lease Payments
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)
 
May 4, 2019
Remainder of Fiscal 2020
 
$
342.2

Fiscal 2021
 
416.0

Fiscal 2022
 
364.0

Fiscal 2023
 
311.7

Fiscal 2024
 
245.3

Thereafter
 
726.1

Total lease payments
 
$
2,405.3

Less: Imputed interest
 
(457.0
)
Present value of lease liabilities
 
$
1,948.3

v3.19.1
Goodwill and intangibles (Tables)
3 Months Ended
May 04, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of Goodwill by Reporting Unit
The following table summarizes the Company’s goodwill by reportable segment:
(in millions)
 
North America
 
Other
 
Total
Balance at February 3, 2018
 
$
818.1

 
$
3.6

 
$
821.7

Impairment
 
(517.6
)
 
(3.6
)
 
(521.2
)
Impact of foreign exchange and other adjustments (1)
 
(3.9
)
 

 
(3.9
)
Balance at February 2, 2019
 
296.6

 

 
296.6

Impact of foreign exchange and other adjustments
 
(0.2
)
 

 
(0.2
)
Balance at May 4, 2019
 
$
296.4

 
$

 
$
296.4


(1)
During the 13 weeks ended May 5, 2018, other adjustments include a purchase price accounting adjustment of $2.6 million related to a revised valuation of acquired intangible assets from the R2Net acquisition.
Schedule of Finite-Lived Intangible Assets
The following table provides additional detail regarding the composition of intangible assets and liabilities:
 
 
May 4, 2019
 
February 2, 2019
 
May 5, 2018
(in millions)
 
Gross
carrying
amount
 
Accumulated
amortization
(1)
 
Net
carrying
amount
 
Gross
carrying
amount
 
Accumulated
amortization
(1)
 
Net
carrying
amount
 
Gross
carrying
amount
 
Accumulated
amortization
(1)
 
Net
carrying
amount
Intangible assets, net:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Definite-lived intangible assets
 
$
53.0

 
$
(50.2
)
 
$
2.8

 
$
53.3

 
$
(50.1
)
 
$
3.2

 
$
53.5

 
$
(47.2
)
 
$
6.3

Indefinite-lived intangible assets
 
475.1

 
(213.8
)
 
261.3

 
475.9

 
(214.1
)
 
261.8

 
476.6

 
(139.7
)
 
336.9

Total intangible assets, net
 
$
528.1

 
$
(264.0
)
 
$
264.1

 
$
529.2

 
$
(264.2
)
 
$
265.0

 
$
530.1

 
$
(186.9
)
 
$
343.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intangible liabilities, net
 
$
(113.7
)
 
$
93.8

 
$
(19.9
)
 
$
(113.9
)
 
$
92.5

 
$
(21.4
)
 
$
(114.1
)
 
$
87.1

 
$
(27.0
)

(1)
Accumulated amortization amounts related to the indefinite-lived intangible assets represents accumulated impairment losses recorded to date.
v3.19.1
Derivatives (Tables)
3 Months Ended
May 04, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The following table summarizes the fair value and presentation of derivative instruments in the condensed consolidated balance sheets:
 
Fair value of derivative assets
(in millions)
Balance sheet location
 
May 4, 2019
 
February 2, 2019
 
May 5, 2018
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
Foreign currency contracts
Other current assets
 
$

 
$
0.1

 
$
0.4

Commodity contracts
Other current assets
 
0.8

 
4.3

 
0.1

Commodity contracts
Other assets
 
0.1

 
1.4

 

Interest rate swaps
Other assets
 

 
0.6

 
2.3

Total derivative assets
 
 
$
0.9

 
$
6.4

 
$
2.8

 
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Foreign currency contracts
Other current assets
 
1.0

 
0.8

 

Total derivative assets
 
 
$
1.9

 
$
7.2

 
$
2.8

 
Fair value of derivative liabilities
(in millions)
Balance sheet location
 
May 4, 2019
 
February 2, 2019
 
May 5, 2018
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
Foreign currency contracts
Other current liabilities
 
$
(0.1
)
 
$
(0.2
)
 
$
(0.2
)
Commodity contracts
Other current liabilities
 
(0.3
)
 

 

Commodity contracts
Other liabilities
 
(0.2
)
 

 

 
 
 
$
(0.6
)
 
$
(0.2
)
 
$
(0.2
)
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Foreign currency contracts
Other current liabilities
 

 

 
(1.0
)
Total derivative liabilities
 
 
$
(0.6
)
 
$
(0.2
)
 
$
(1.2
)
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
The following table summarizes the pre-tax gains (losses) recorded in AOCI for derivatives designated in cash flow hedging relationships:
(in millions)
May 4, 2019
 
February 2, 2019
 
May 5, 2018
Foreign currency contracts
$
0.4

 
$
0.7

 
$
(0.8
)
Commodity contracts
0.1

 
4.0

 
1.1

Interest rate swaps

 
0.6

 
2.3

Gains (losses) recorded in AOCI
$
0.5

 
$
5.3

 
$
2.6

Derivative Instruments, Gain (Loss)
The following table presents the effects of the Company’s derivatives instruments not designated as cash flow hedges in the condensed consolidated statement of operations:
 
 
 
13 weeks ended
(in millions)
Statement of operations caption
 
May 4, 2019
 
May 5, 2018
Derivatives not designated as hedging instruments:
 
 
 
 
 
Foreign currency contracts
Other operating income, 
net
 
$
1.1

 
$
(4.8
)
The following tables summarize the effect of derivative instruments designated as cash flow hedges in OCI and the condensed consolidated statement of operations:
Foreign currency contracts
 
 
 
13 weeks ended
(in millions)
Statement of operations caption
 
May 4, 2019
 
May 5, 2018
(Losses) gains recorded in AOCI, beginning of period
 
 
$
0.7

 
$
(2.4
)
Current period gains (losses) recognized in OCI
 
 

 
1.3

Losses (gains) reclassified from AOCI to net income
Cost of sales
 
(0.3
)
 
0.3

Gains recorded in AOCI, end of period
 
 
$
0.4

 
$
(0.8
)
Commodity contracts
 
 
 
13 weeks ended
(in millions)
Statement of operations caption
 
May 4, 2019
 
May 5, 2018
Gains (losses) recorded in AOCI, beginning of period
 
 
$
4.0

 
$
1.4

Current period gains (losses) recognized in OCI
 
 
(4.3
)
 
0.2

Gains reclassified from AOCI to net income
Cost of sales
 
0.4

 
(0.5
)
Gains (losses) recorded in AOCI, end of period
 
 
$
0.1

 
$
1.1


Interest rate swaps
 
 
 
13 weeks ended
(in millions)
Statement of operations caption
 
May 4, 2019
 
May 5, 2018
Gains recorded in AOCI, beginning of period
 
 
$
0.6

 
$
2.2

Current period gains (losses) recognized in OCI
 
 

 
0.4

(Gains) losses reclassified from AOCI to net income
Interest expense, net
 
(0.6
)
 
(0.3
)
Gains recorded in AOCI, end of period
 
 
$

 
$
2.3

v3.19.1
Fair value measurements (Tables)
3 Months Ended
May 04, 2019
Fair Value Disclosures [Abstract]  
Fair Value, by Balance Sheet Grouping
The methods Signet uses to determine fair value on an instrument-specific basis are detailed below:
 
May 4, 2019
 
February 2, 2019
 
May 5, 2018
(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)
 
Carrying Value
 
Quoted prices in active markets for identical assets
(Level 1)
 
Significant
other
observable
inputs
(Level 2)
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
US Treasury securities
$
7.7

 
$
7.7

 
$

 
$
4.7

 
$
4.7

 
$

 
$
7.3

 
$
7.3

 
$

Corporate equity securities
2.6

 
2.6

 

 
2.4

 
2.4

 

 
4.3

 
4.3

 

Foreign currency contracts
1.0

 

 
1.0

 
0.9

 

 
0.9

 
0.4

 

 
0.4

Commodity contracts
0.9

 

 
0.9

 
5.7

 

 
5.7

 
0.1

 

 
0.1

Interest rate swaps

 

 

 
0.6

 

 
0.6

 
2.3

 

 
2.3

US government agency securities
4.0

 

 
4.0

 
2.5

 

 
2.5

 
4.7

 

 
4.7

Corporate bonds and notes
6.6

 

 
6.6

 
5.2

 

 
5.2

 
10.6

 

 
10.6

Total assets
$
22.8

 
$
10.3

 
$
12.5

 
$
22.0

 
$
7.1

 
$
14.9

 
$
29.7

 
$
11.6

 
$
18.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency contracts
$
(0.1
)
 
$

 
$
(0.1
)
 
$
(0.2
)
 
$

 
$
(0.2
)
 
$
(1.2
)
 
$

 
$
(1.2
)
Commodity contracts
(0.5
)
 

 
(0.5
)
 

 

 

 

 

 

Total liabilities
$
(0.6
)
 
$

 
$
(0.6
)
 
$
(0.2
)
 
$

 
$
(0.2
)
 
$
(1.2
)
 
$

 
$
(1.2
)
Schedule of Carrying Values and Estimated Fair Values
The following table provides a summary of the carrying amount and fair value of outstanding debt:
 
May 4, 2019
 
February 2, 2019
 
May 5, 2018
(in millions)
Carrying
Value
 
Fair Value
 
Carrying
Value
 
Fair Value
 
Carrying
Value
 
Fair Value
Long-term debt:
 
 
 
 
 
 
 
 
 
 
 
Senior notes (Level 2)
$
395.5

 
$
363.4

 
$
395.3

 
$
340.3

 
$
394.6

 
$
382.3

Term loan (Level 2)
284.5

 
286.0

 
293.0

 
294.9

 
317.0

 
319.5

Total
$
680.0

 
$
649.4

 
$
688.3

 
$
635.2

 
$
711.6

 
$
701.8

v3.19.1
Loans, overdrafts and long-term debt (Tables)
3 Months Ended
May 04, 2019
Debt Disclosure [Abstract]  
Summary of Loans, Overdrafts and Long-Term Debt
(in millions)
May 4, 2019
 
February 2, 2019
 
May 5, 2018
Debt:
 
 
 
 
 
Senior unsecured notes due 2024, net of unamortized discount
$
399.1

 
$
399.0

 
$
398.9

Senior unsecured term loan
286.0

 
294.9

 
319.5

Revolving credit facility

 

 
40.0

Bank overdrafts
2.7

 
40.1

 
0.3

Total debt
$
687.8

 
$
734.0

 
$
758.7

Less: Current portion of loans and overdrafts
(43.7
)
 
(78.8
)
 
(72.3
)
Less: Unamortized capitalized debt issuance fees
(5.1
)
 
(5.6
)
 
(6.7
)
Total long-term debt
$
639.0

 
$
649.6

 
$
679.7

v3.19.1
Warranty reserve (Tables)
3 Months Ended
May 04, 2019
Other Liabilities Disclosure [Abstract]  
Other Liabilities
The warranty reserve for diamond and gemstone guarantee, included in accrued expenses and other current liabilities and other non-current liabilities, is as follows:
 
 
13 weeks ended
(in millions)
 
May 4, 2019
 
May 5, 2018
Warranty reserve, beginning of period
 
$
33.2

 
$
37.2

Warranty expense
 
3.5

 
1.4

Utilized(1)
 
(2.9
)
 
(3.0
)
Warranty reserve, end of period
 
$
33.8

 
$
35.6


(1)  
Includes impact of foreign exchange translation.
(in millions)
May 4, 2019
 
February 2, 2019
 
May 5, 2018
Disclosed as:
 
 
 
 
 
Current liabilities
$
10.1

 
$
10.0

 
$
11.0

Non-current liabilities
23.7

 
23.2

 
24.6

Total warranty reserve
$
33.8

 
$
33.2

 
$
35.6

v3.19.1
Condensed consolidating financial information (Tables)
3 Months Ended
May 04, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Condensed Income Statement


Condensed Consolidated Statement of Operations
For the 13 weeks ended May 4, 2019
(Unaudited)
(in millions)
Signet
Jewelers
Limited
 
Signet UK
Finance plc
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Sales
$

 
$

 
$
1,316.9

 
$
114.8

 
$

 
$
1,431.7

Cost of sales

 

 
(854.0
)
 
(78.3
)
 

 
(932.3
)
Gross margin

 

 
462.9

 
36.5

 

 
499.4

Selling, general and administrative expenses

 

 
(462.4
)
 
(12.8
)
 

 
(475.2
)
Restructuring charges

 

 
(25.8
)
 
(1.0
)
 

 
(26.8
)
Other operating income (loss), net

 

 
(0.1
)
 
0.1

 

 

Operating income (loss)

 

 
(25.4
)
 
22.8

 

 
(2.6
)
Intra-entity interest income (expense)
(0.7
)
 
4.7

 
(48.4
)
 
44.4

 

 

Interest expense, net

 
(5.0
)
 
(4.3
)
 
0.1

 

 
(9.2
)
Other non-operating income

 

 
0.3

 

 

 
0.3

Income (loss) before income taxes
(0.7
)
 
(0.3
)
 
(77.8
)
 
67.3

 

 
(11.5
)
Income taxes

 
0.1

 
8.8

 
(7.4
)
 

 
1.5

Equity in income (loss) of subsidiaries
(9.3
)
 

 
(79.7
)
 
(65.4
)
 
154.4

 

Net income (loss)
$
(10.0
)
 
$
(0.2
)
 
$
(148.7
)
 
$
(5.5
)
 
$
154.4

 
$
(10.0
)
Dividends on redeemable convertible preferred shares
(8.2
)
 

 

 

 

 
(8.2
)
Net income (loss) attributable to common shareholders
$
(18.2
)
 
$
(0.2
)
 
$
(148.7
)
 
$
(5.5
)
 
$
154.4

 
$
(18.2
)

Condensed Consolidated Statement of Operations
For the 13 weeks ended May 5, 2018
(Unaudited)
(in millions)
Signet
Jewelers
Limited
 
Signet UK
Finance plc
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Sales
$

 
$

 
$
1,356.5

 
$
124.1

 
$

 
$
1,480.6

Cost of sales

 

 
(936.3
)
 
(59.5
)
 

 
(995.8
)
Gross margin

 

 
420.2

 
64.6

 

 
484.8

Selling, general and administrative expenses
(0.1
)
 

 
(444.4
)
 
(38.3
)
 

 
(482.8
)
Credit transaction, net

 

 
(143.1
)
 

 

 
(143.1
)
Restructuring charges

 

 
(5.5
)
 
(1.0
)
 

 
(6.5
)
Goodwill and intangible impairments

 

 
(448.7
)
 

 

 
(448.7
)
Other operating income (loss), net
(0.1
)
 

 
22.6

 
(0.4
)
 

 
22.1

Operating income (loss)
(0.2
)
 

 
(598.9
)
 
24.9

 

 
(574.2
)
Intra-entity interest income (expense)
(0.7
)
 
4.7

 
(44.8
)
 
40.8

 

 

Interest expense, net

 
(4.9
)
 
(4.0
)
 

 

 
(8.9
)
Other non-operating income

 

 
0.6

 

 

 
0.6

Income (loss) before income taxes
(0.9
)
 
(0.2
)
 
(647.1
)
 
65.7

 

 
(582.5
)
Income taxes

 

 
79.4

 
6.5

 

 
85.9

Equity in income (loss) of subsidiaries
(495.7
)
 

 
(565.1
)
 
(567.9
)
 
1,628.7

 

Net income (loss)
$
(496.6
)
 
$
(0.2
)
 
$
(1,132.8
)
 
$
(495.7
)
 
$
1,628.7

 
$
(496.6
)
Dividends on redeemable convertible preferred shares
(8.2
)
 

 

 

 

 
(8.2
)
Net income (loss) attributable to common shareholders
$
(504.8
)
 
$
(0.2
)
 
$
(1,132.8
)
 
$
(495.7
)
 
$
1,628.7

 
$
(504.8
)
Condensed Statement of Comprehensive Income

Condensed Consolidated Statement of Comprehensive Income (Loss)
For the 13 weeks ended May 4, 2019
(Unaudited)
(in millions)
Signet
Jewelers
Limited
 
Signet UK
Finance plc
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net income (loss)
$
(10.0
)
 
$
(0.2
)
 
$
(148.7
)
 
$
(5.5
)
 
$
154.4

 
$
(10.0
)
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
(2.0
)
 

 
(2.0
)
 

 
2.0

 
(2.0
)
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain
0.3

 

 

 
0.3

 
(0.3
)
 
0.3

Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain
(3.2
)
 

 
(3.2
)
 

 
3.2

 
(3.2
)
Reclassification adjustment for gains to net income
(0.4
)
 

 
(0.4
)
 

 
0.4

 
(0.4
)
Pension plan:
 
 
 
 
 
 
 
 
 
 
 
Reclassification adjustment to net income for amortization of actuarial losses
0.2

 

 
0.2

 

 
(0.2
)
 
0.2

Total other comprehensive income (loss)
(5.1
)
 

 
(5.4
)
 
0.3

 
5.1

 
(5.1
)
Total comprehensive income (loss)
$
(15.1
)
 
$
(0.2
)
 
$
(154.1
)
 
$
(5.2
)
 
$
159.5

 
$
(15.1
)

Condensed Consolidated Statement of Comprehensive Income (Loss)
For the 13 weeks ended May 5, 2018
(Unaudited)
(in millions)
Signet
Jewelers
Limited
 
Signet UK
Finance plc
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net income (loss)
$
(496.6
)
 
$
(0.2
)
 
$
(1,132.8
)
 
$
(495.7
)
 
$
1,628.7

 
$
(496.6
)
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
(21.7
)
 

 
(21.5
)
 
(0.2
)
 
21.7

 
(21.7
)
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain
(0.2
)
 

 

 
(0.2
)
 
0.2

 
(0.2
)
Impact from adoption of new accounting pronouncements(1)
(0.8
)
 

 

 
(0.8
)
 
0.8

 
(0.8
)
Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain
1.5

 

 
1.5

 

 
(1.5
)
 
1.5

Reclassification adjustment for gains to net income
(0.3
)
 

 
(0.3
)
 

 
0.3

 
(0.3
)
Pension plan:
 
 
 
 
 
 
 
 
 
 
 
Reclassification adjustment to net income for amortization of actuarial losses
0.3

 

 
0.3

 

 
(0.3
)
 
0.3

Reclassification adjustment to net income for amortization of net prior service credits
(0.1
)
 

 
(0.1
)
 

 
0.1

 
(0.1
)
Total other comprehensive income
(21.3
)
 

 
(20.1
)
 
(1.2
)
 
21.3

 
(21.3
)
Total comprehensive income (loss)
$
(517.9
)
 
$
(0.2
)
 
$
(1,152.9
)
 
$
(496.9
)
 
$
1,650.0

 
$
(517.9
)

(1) 
Adjustment reflects the reclassification of unrealized gains related to the Company’s equity security investments as of February 3, 2018 from AOCI into retained earnings associated with the adoption of ASU 2016-1.

Condensed Balance Sheet
Condensed Consolidated Balance Sheet
May 4, 2019
(Unaudited)
(in millions)
Signet
Jewelers
Limited
 
Signet UK
Finance plc
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
0.4

 
$
0.1

 
$
133.7

 
$
60.9

 
$

 
$
195.1

Accounts receivable

 

 
13.4

 
9.7

 

 
23.1

Intra-entity receivables, net

 
11.8

 
30.7

 
297.2

 
(339.7
)
 

Other current assets

 

 
171.8

 
33.7

 

 
205.5

Income taxes

 

 
4.3

 
0.5

 

 
4.8

Inventories

 

 
2,309.0

 
85.2

 

 
2,394.2

Total current assets
0.4

 
11.9

 
2,662.9

 
487.2

 
(339.7
)
 
2,822.7

Non-current assets:
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment, net

 

 
765.5

 
10.6

 

 
776.1

Operating lease right-of-use assets

 

 
1,814.7

 
8.1

 

 
1,822.8

Goodwill

 

 
206.1

 
90.3

 

 
296.4

Intangible assets, net

 

 
243.3

 
20.8

 

 
264.1

Investment in subsidiaries
2,144.9

 

 
(96.3
)
 
(382.4
)
 
(1,666.2
)
 

Intra-entity receivables, net

 
400.0

 

 
2,583.0

 
(2,983.0
)
 

Other assets

 

 
165.9

 
23.3

 

 
189.2

Deferred tax assets

 

 
25.9

 
(3.9
)
 

 
22.0

Total assets
$
2,145.3

 
$
411.9

 
$
5,788.0

 
$
2,837.0

 
$
(4,988.9
)
 
$
6,193.3

Liabilities and Shareholders’ equity
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
Loans and overdrafts
$

 
$
(0.7
)
 
$
44.4

 
$

 
$

 
$
43.7

Accounts payable

 

 
176.1

 
62.2

 

 
238.3

Intra-entity payables, net
339.7

 

 

 

 
(339.7
)
 

Accrued expenses and other current liabilities
28.5

 
7.1

 
362.0

 
22.6

 

 
420.2

Deferred revenue

 

 
266.7

 
10.3

 

 
277.0

Operating lease liabilities

 

 
357.0

 
1.9

 

 
358.9

Income taxes

 

 
23.8

 
0.3

 

 
24.1

Total current liabilities
368.2

 
6.4

 
1,230.0

 
97.3

 
(339.7
)
 
1,362.2

Non-current liabilities:
 
 
 
 
 
 
 
 
 
 
 
Long-term debt

 
396.2

 
242.8

 

 

 
639.0

Intra-entity payables, net

 

 
2,983.0

 

 
(2,983.0
)
 

Operating lease liabilities

 

 
1,583.2

 
6.2

 

 
1,589.4

Other liabilities

 

 
121.4

 
4.6

 

 
126.0

Deferred revenue

 

 
699.6

 

 

 
699.6

Total liabilities
368.2

 
402.6

 
6,860.0

 
108.1

 
(3,322.7
)
 
4,416.2

Series A redeemable convertible preferred shares
615.7

 

 

 

 

 
615.7

Total shareholders’ equity (deficit)
1,161.4

 
9.3

 
(1,072.0
)
 
2,728.9

 
(1,666.2
)
 
1,161.4

Total liabilities, redeemable convertible preferred shares and shareholders’ equity
$
2,145.3

 
$
411.9

 
$
5,788.0

 
$
2,837.0

 
$
(4,988.9
)
 
$
6,193.3

Condensed Consolidated Balance Sheet
February 2, 2019

(in millions)
Signet
Jewelers
Limited
 
Signet UK
Finance plc
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
0.2

 
$
0.1

 
$
146.7

 
$
48.4

 
$

 
$
195.4

Accounts receivable

 

 
14.3

 
9.4

 

 
23.7

Intra-entity receivables, net

 
7.9

 
83.4

 
220.0

 
(311.3
)
 

Other current assets

 

 
215.9

 
28.1

 

 
244.0

Income taxes

 

 
5.1

 
0.7

 

 
5.8

Inventories

 

 
2,302.6

 
84.3

 

 
2,386.9

Total current assets
0.2

 
8.0

 
2,768.0

 
390.9

 
(311.3
)
 
2,855.8

Non-current assets:
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment, net

 

 
789.6

 
10.9

 

 
800.5

Goodwill

 

 
206.3

 
90.3

 

 
296.6

Intangible assets, net

 

 
244.0

 
21.0

 

 
265.0

Investment in subsidiaries
2,155.7

 

 
(15.7
)
 
(305.5
)
 
(1,834.5
)
 

Intra-entity receivables, net

 
400.0

 

 
2,588.0

 
(2,988.0
)
 

Other assets

 

 
164.0

 
17.2

 

 
181.2

Deferred tax assets

 

 
24.5

 
(3.5
)
 

 
21.0

Total assets
$
2,155.9

 
$
408.0

 
$
4,180.7

 
$
2,809.3

 
$
(5,133.8
)
 
$
4,420.1

Liabilities and Shareholders’ equity
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
Loans and overdrafts
$

 
$
(0.7
)
 
$
79.5

 
$

 
$

 
$
78.8

Accounts payable

 

 
119.7

 
34.0

 

 
153.7

Intra-entity payables, net
311.3

 

 

 

 
(311.3
)
 

Accrued expenses and other current liabilities
27.7

 
2.4

 
450.4

 
22.3

 

 
502.8

Deferred revenue

 

 
257.6

 
12.4

 

 
270.0

Income taxes

 
0.8

 
26.4

 
0.5

 

 
27.7

Total current liabilities
339.0

 
2.5

 
933.6

 
69.2

 
(311.3
)
 
1,033.0

Non-current liabilities:
 
 
 
 
 
 
 
 
 
 
 
Long-term debt

 
396.0

 
253.6

 

 

 
649.6

Intra-entity payables, net

 

 
2,988.0

 

 
(2,988.0
)
 

Other liabilities

 

 
219.4

 
4.7

 

 
224.1

Deferred revenue

 

 
696.5

 

 

 
696.5

Deferred tax liabilities

 

 

 

 

 

Total liabilities
339.0

 
398.5

 
5,091.1

 
73.9

 
(3,299.3
)
 
2,603.2

Series A redeemable convertible preferred shares
615.3

 

 

 

 

 
615.3

Total shareholders’ equity (deficit)
1,201.6

 
9.5

 
(910.4
)
 
2,735.4

 
(1,834.5
)
 
1,201.6

Total liabilities, redeemable convertible preferred shares and shareholders’ equity
$
2,155.9

 
$
408.0

 
$
4,180.7

 
$
2,809.3

 
$
(5,133.8
)
 
$
4,420.1



Condensed Consolidated Balance Sheet
May 5, 2018
(Unaudited)
(in millions)
Signet
Jewelers
Limited
 
Signet UK
Finance plc
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1.3

 
$
0.1

 
$
102.5

 
$
50.0

 
$

 
$
153.9

Accounts receivable

 

 
490.4

 
1.0

 

 
491.4

Intra-entity receivables, net

 
7.8

 

 
237.3

 
(245.1
)
 

Other current assets

 

 
208.6

 
28.2

 

 
236.8

Income taxes

 

 
32.0

 
23.2

 

 
55.2

Inventories

 

 
2,360.6

 
68.4

 

 
2,429.0

Total current assets
1.3

 
7.9

 
3,194.1

 
408.1

 
(245.1
)
 
3,366.3

Non-current assets:
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment, net

 

 
839.7

 
7.5

 

 
847.2

Goodwill

 

 
206.4

 
302.7

 

 
509.1

Intangible assets, net

 

 
268.4

 
74.8

 

 
343.2

Investment in subsidiaries
2,571.8

 

 
579.4

 
15.6

 
(3,166.8
)
 

Intra-entity receivables, net

 
400.0

 

 
2,825.0

 
(3,225.0
)
 

Other assets

 

 
176.4

 
29.9

 

 
206.3

Deferred tax assets

 

 
0.8

 

 

 
0.8

Total assets
$
2,573.1

 
$
407.9

 
$
5,265.2

 
$
3,663.6

 
$
(6,636.9
)
 
$
5,272.9

Liabilities and Shareholders’ equity
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
Loans and overdrafts
$

 
$
(0.7
)
 
$
73.0

 
$

 
$

 
$
72.3

Accounts payable

 

 
257.2

 
30.3

 

 
287.5

Intra-entity payables, net
36.3

 

 
208.8

 

 
(245.1
)
 

Accrued expenses and other current liabilities
30.2

 
7.1

 
403.7

 
22.7

 

 
463.7

Deferred revenue

 

 
272.1

 
12.8

 

 
284.9

Total current liabilities
66.5

 
6.4

 
1,214.8

 
65.8

 
(245.1
)
 
1,108.4

Non-current liabilities:
 
 
 
 
 
 
 
 
 
 
 
Long-term debt

 
395.4

 
284.3

 

 

 
679.7

Intra-entity payables, net

 

 
3,225.0

 

 
(3,225.0
)
 

Other liabilities

 

 
231.5

 
5.0

 

 
236.5

Deferred revenue

 

 
667.5

 

 

 
667.5

Deferred tax liabilities

 

 
57.5

 
16.7

 

 
74.2

Total liabilities
66.5

 
401.8

 
5,680.6

 
87.5

 
(3,470.1
)
 
2,766.3

Series A redeemable convertible preferred shares
614.0

 

 

 

 

 
614.0

Total shareholders’ equity (deficit)
1,892.6

 
6.1

 
(415.4
)
 
3,576.1

 
(3,166.8
)
 
1,892.6

Total liabilities, redeemable convertible preferred shares and shareholders’ equity
$
2,573.1

 
$
407.9

 
$
5,265.2

 
$
3,663.6

 
$
(6,636.9
)
 
$
5,272.9

Condensed Cash Flow Statement
Condensed Consolidated Statement of Cash Flows
For the 13 weeks ended May 4, 2019
(Unaudited)

(in millions)
Signet
Jewelers
Limited
 
Signet UK
Finance plc
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net cash provided by (used in) operating activities
$
(0.1
)
 
$
3.9

 
$
9.3

 
$
92.3

 
$

 
$
105.4

Investing activities
 
 
 
 
 
 
 
 
 
 
 
Purchase of property, plant and equipment

 

 
(24.6
)
 

 

 
(24.6
)
Purchase of available-for-sale securities

 

 

 
(6.1
)
 

 
(6.1
)
Proceeds from available-for-sale securities

 

 

 
0.3

 

 
0.3

Net cash provided by (used in) investing activities

 

 
(24.6
)
 
(5.8
)
 

 
(30.4
)
Financing activities
 
 
 
 
 
 
 
 
 
 
 
Dividends paid on common shares
(19.2
)
 

 

 

 

 
(19.2
)
Dividends paid on redeemable convertible preferred shares
(7.8
)
 

 

 

 

 
(7.8
)
Repayments of term and bridge loans

 

 
(8.9
)
 

 

 
(8.9
)
Repayments of bank overdrafts

 

 
(37.3
)
 

 

 
(37.3
)
Other financing activities
(1.5
)
 

 

 

 

 
(1.5
)
Intra-entity activity, net
28.8

 
(3.9
)
 
49.2

 
(74.1
)
 

 

Net cash provided by (used in) financing activities
0.3

 
(3.9
)
 
3.0

 
(74.1
)
 

 
(74.7
)
Cash and cash equivalents at beginning of period
0.2

 
0.1

 
146.7

 
48.4

 

 
195.4

Increase (decrease) in cash and cash equivalents
0.2

 

 
(12.4
)
 
12.5

 

 
0.3

Effect of exchange rate changes on cash and cash equivalents

 

 
(0.6
)
 

 

 
(0.6
)
Cash and cash equivalents at end of period
$
0.4

 
$
0.1

 
$
133.7

 
$
60.9

 
$

 
$
195.1


Condensed Consolidated Statement of Cash Flows
For the 13 weeks ended May 5, 2018
(Unaudited)

(in millions)
Signet
Jewelers
Limited
 
Signet UK
Finance plc
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net cash provided by (used in) operating activities
$
61.2

 
$
4.9

 
$
(68.0
)
 
$
93.4

 
$
(63.6
)
 
$
27.9

Investing activities
 
 
 
 
 
 
 
 
 
 
 
Purchase of property, plant and equipment

 

 
(25.9
)
 
(0.2
)
 

 
(26.1
)
Purchase of available-for-sale securities

 

 

 
(0.4
)
 

 
(0.4
)
Proceeds from available-for-sale securities

 

 

 
1.1

 

 
1.1

Net cash provided by (used in) investing activities

 

 
(25.9
)
 
0.5

 

 
(25.4
)
Financing activities
 
 
 
 
 
 
 
 
 
 
 
Dividends paid on common shares
(18.8
)
 

 

 

 

 
(18.8
)
Dividends paid on redeemable convertible preferred shares
(7.8
)
 

 

 

 

 
(7.8
)
Intra-entity dividends paid

 

 

 
(63.6
)
 
63.6

 

Repurchase of common shares
(60.0
)
 

 

 

 

 
(60.0
)
Proceeds from term and bridge loans

 

 
(6.7
)
 

 

 
(6.7
)
Proceeds from revolving credit facility

 

 
40.0

 

 

 
40.0

Repayments of revolving credit facility

 

 
(13.9
)
 

 

 
(13.9
)
Other financing activities
(2.1
)
 

 

 

 

 
(2.1
)
Intra-entity activity, net
27.1

 
(4.9
)
 
30.8

 
(53.0
)
 

 

Net cash provided by (used in) financing activities
(61.6
)
 
(4.9
)
 
50.2

 
(116.6
)
 
63.6

 
(69.3
)
Cash and cash equivalents at beginning of period
1.7

 
0.1

 
150.5

 
72.8

 

 
225.1

Increase (decrease) in cash and cash equivalents
(0.4
)
 

 
(43.7
)
 
(22.7
)
 

 
(66.8
)
Effect of exchange rate changes on cash and cash equivalents

 

 
(4.3
)
 
(0.1
)
 

 
(4.4
)
Cash and cash equivalents at end of period
$
1.3

 
$
0.1

 
$
102.5

 
$
50.0

 
$

 
$
153.9

v3.19.1
Organization and principal accounting policies - Additional information (Details)
3 Months Ended
May 04, 2019
segment
Property, Plant and Equipment [Line Items]  
Number of reportable segments (segment) 3
Minimum  
Property, Plant and Equipment [Line Items]  
Seasonal revenues, fourth quarter sales, percent 35.00%
Maximum  
Property, Plant and Equipment [Line Items]  
Seasonal revenues, fourth quarter sales, percent 40.00%
v3.19.1
New accounting pronouncements - Effects of the Adoption of ASC 842 (Details) - USD ($)
$ in Millions
May 04, 2019
Feb. 03, 2019
Feb. 02, 2019
May 05, 2018
Current assets:        
Other current assets $ 205.5 $ 235.2 $ 244.0 $ 236.8
Non-current assets:        
Operating lease right-of-use assets 1,822.8 1,927.2    
Current liabilities:        
Accrued expenses and other current liabilities 420.2 393.8 502.8 463.7
Operating lease liabilities 358.9 376.5    
Non-current liabilities:        
Operating lease liabilities 1,589.4 1,676.9    
Other liabilities $ 126.0 198.1 $ 224.1 $ 236.5
Accounting Standards Update 2016-02        
Current assets:        
Other current assets   (8.8)    
Non-current assets:        
Operating lease right-of-use assets   1,927.2    
Current liabilities:        
Accrued expenses and other current liabilities   (109.0)    
Operating lease liabilities   376.5    
Non-current liabilities:        
Operating lease liabilities   1,676.9    
Other liabilities   $ (26.0)    
v3.19.1
Revenue recognition - Disaggregation of Revenue (Details) - USD ($)
$ in Millions
3 Months Ended
May 04, 2019
May 05, 2018
Disaggregation of Revenue [Line Items]    
Sales $ 1,431.7 $ 1,480.6
Bridal    
Disaggregation of Revenue [Line Items]    
Sales 643.3 673.5
Fashion    
Disaggregation of Revenue [Line Items]    
Sales 489.8 487.0
Watches    
Disaggregation of Revenue [Line Items]    
Sales 82.2 91.3
Other    
Disaggregation of Revenue [Line Items]    
Sales 216.4 228.8
Store    
Disaggregation of Revenue [Line Items]    
Sales 1,257.5 1,330.0
Kay    
Disaggregation of Revenue [Line Items]    
Sales 574.8 583.2
Zales    
Disaggregation of Revenue [Line Items]    
Sales 285.0 298.1
Jared    
Disaggregation of Revenue [Line Items]    
Sales 255.0 267.5
Piercing Pagoda    
Disaggregation of Revenue [Line Items]    
Sales 82.6 74.4
James Allen    
Disaggregation of Revenue [Line Items]    
Sales 52.0 53.3
Peoples    
Disaggregation of Revenue [Line Items]    
Sales 41.7 46.7
Regional banners    
Disaggregation of Revenue [Line Items]    
Sales 9.2 24.6
International segment    
Disaggregation of Revenue [Line Items]    
Sales 111.5 128.7
Other    
Disaggregation of Revenue [Line Items]    
Sales 19.9 4.1
E-commerce    
Disaggregation of Revenue [Line Items]    
Sales 154.3 146.5
Other    
Disaggregation of Revenue [Line Items]    
Sales 19.9 4.1
North America    
Disaggregation of Revenue [Line Items]    
Sales 1,300.3 1,347.8
North America | Bridal    
Disaggregation of Revenue [Line Items]    
Sales 594.7 617.9
North America | Fashion    
Disaggregation of Revenue [Line Items]    
Sales 467.4 461.1
North America | Watches    
Disaggregation of Revenue [Line Items]    
Sales 48.2 52.2
North America | Other    
Disaggregation of Revenue [Line Items]    
Sales 190.0 216.6
North America | Store    
Disaggregation of Revenue [Line Items]    
Sales 1,157.3 1,213.7
North America | Kay    
Disaggregation of Revenue [Line Items]    
Sales 574.8 583.2
North America | Zales    
Disaggregation of Revenue [Line Items]    
Sales 285.0 298.1
North America | Jared    
Disaggregation of Revenue [Line Items]    
Sales 255.0 267.5
North America | Piercing Pagoda    
Disaggregation of Revenue [Line Items]    
Sales 82.6 74.4
North America | James Allen    
Disaggregation of Revenue [Line Items]    
Sales 52.0 53.3
North America | Peoples    
Disaggregation of Revenue [Line Items]    
Sales 41.7 46.7
North America | Regional banners    
Disaggregation of Revenue [Line Items]    
Sales 9.2 24.6
North America | International segment    
Disaggregation of Revenue [Line Items]    
Sales 0.0 0.0
North America | Other    
Disaggregation of Revenue [Line Items]    
Sales 0.0 0.0
North America | E-commerce    
Disaggregation of Revenue [Line Items]    
Sales 143.0 134.1
North America | Other    
Disaggregation of Revenue [Line Items]    
Sales 0.0 0.0
International segment    
Disaggregation of Revenue [Line Items]    
Sales 111.5 128.7
International segment | Bridal    
Disaggregation of Revenue [Line Items]    
Sales 48.6 55.6
International segment | Fashion    
Disaggregation of Revenue [Line Items]    
Sales 22.4 25.9
International segment | Watches    
Disaggregation of Revenue [Line Items]    
Sales 34.0 39.1
International segment | Other    
Disaggregation of Revenue [Line Items]    
Sales 6.5 8.1
International segment | Store    
Disaggregation of Revenue [Line Items]    
Sales 100.2 116.3
International segment | Kay    
Disaggregation of Revenue [Line Items]    
Sales 0.0 0.0
International segment | Zales    
Disaggregation of Revenue [Line Items]    
Sales 0.0 0.0
International segment | Jared    
Disaggregation of Revenue [Line Items]    
Sales 0.0 0.0
International segment | Piercing Pagoda    
Disaggregation of Revenue [Line Items]    
Sales 0.0 0.0
International segment | James Allen    
Disaggregation of Revenue [Line Items]    
Sales 0.0 0.0
International segment | Peoples    
Disaggregation of Revenue [Line Items]    
Sales 0.0 0.0
International segment | Regional banners    
Disaggregation of Revenue [Line Items]    
Sales 0.0 0.0
International segment | International segment    
Disaggregation of Revenue [Line Items]    
Sales 111.5 128.7
International segment | Other    
Disaggregation of Revenue [Line Items]    
Sales 0.0 0.0
International segment | E-commerce    
Disaggregation of Revenue [Line Items]    
Sales 11.3 12.4
International segment | Other    
Disaggregation of Revenue [Line Items]    
Sales 0.0 0.0
Other    
Disaggregation of Revenue [Line Items]    
Sales 19.9 4.1
Other | Bridal    
Disaggregation of Revenue [Line Items]    
Sales 0.0 0.0
Other | Fashion    
Disaggregation of Revenue [Line Items]    
Sales 0.0 0.0
Other | Watches    
Disaggregation of Revenue [Line Items]    
Sales 0.0 0.0
Other | Other    
Disaggregation of Revenue [Line Items]    
Sales 19.9 4.1
Other | Store    
Disaggregation of Revenue [Line Items]    
Sales 0.0 0.0
Other | Kay    
Disaggregation of Revenue [Line Items]    
Sales 0.0 0.0
Other | Zales    
Disaggregation of Revenue [Line Items]    
Sales 0.0 0.0
Other | Jared    
Disaggregation of Revenue [Line Items]    
Sales 0.0 0.0
Other | Piercing Pagoda    
Disaggregation of Revenue [Line Items]    
Sales 0.0 0.0
Other | James Allen    
Disaggregation of Revenue [Line Items]    
Sales 0.0 0.0
Other | Peoples    
Disaggregation of Revenue [Line Items]    
Sales 0.0 0.0
Other | Regional banners    
Disaggregation of Revenue [Line Items]    
Sales 0.0 0.0
Other | International segment    
Disaggregation of Revenue [Line Items]    
Sales 0.0 0.0
Other | Other    
Disaggregation of Revenue [Line Items]    
Sales 19.9 4.1
Other | E-commerce    
Disaggregation of Revenue [Line Items]    
Sales 0.0 0.0
Other | Other    
Disaggregation of Revenue [Line Items]    
Sales $ 19.9 $ 4.1
v3.19.1
Revenue recognition - Unamortized Deferred Selling Costs (Details) - USD ($)
$ in Millions
May 04, 2019
Feb. 02, 2019
May 05, 2018
Revenue from Contract with Customer [Abstract]      
Other current assets $ 23.8 $ 23.8 $ 30.6
Other assets 76.4 75.4 89.2
Deferred ESP selling costs $ 100.2 $ 99.2 $ 119.8
v3.19.1
Revenue recognition - Narrative (Details) - North America
3 Months Ended
May 04, 2019
May 05, 2018
Extended Service Plans and Lifetime Warranty Agreements    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Revenue, performance obligation, description of timing 17 years  
Jewelry Replacement Plan    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Revenue, performance obligation, description of timing   three years
Revenue recognized, percentage 55.00%  
v3.19.1
Revenue recognition - ESP and Voucher Promotions (Details) - USD ($)
$ in Millions
May 04, 2019
Feb. 02, 2019
May 05, 2018
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]      
Total deferred revenue $ 976.6 $ 966.5 $ 952.4
Deferred revenue 277.0 270.0 284.9
Non-current liabilities 699.6 696.5 667.5
ESP deferred revenue      
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]      
Total deferred revenue 931.3 927.6 913.5
Voucher promotions and other      
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]      
Total deferred revenue $ 45.3 $ 38.9 $ 38.9
v3.19.1
Revenue recognition - ESP Deferred Revenue Rollforward (Details) - USD ($)
$ in Millions
3 Months Ended
May 04, 2019
May 05, 2018
Change in Contract with Customer, Liability [Roll Forward]    
ESP deferred revenue, beginning of period $ 966.5  
ESP deferred revenue, end of period 976.6 $ 952.4
Extended Service Plan    
Change in Contract with Customer, Liability [Roll Forward]    
ESP deferred revenue, beginning of period 927.6 916.1
Plans sold 92.3 98.6
Revenue recognized 96.0 96.0
ESP deferred revenue, end of period $ 931.3 $ 913.5
v3.19.1
Segment information - Additional Information (Details)
3 Months Ended
May 04, 2019
segment
Segment Reporting [Abstract]  
Number of reportable segments (segment) 3
v3.19.1
Segment information - Summary of Activity by Segment (Details) - USD ($)
$ in Millions
3 Months Ended
May 04, 2019
May 05, 2018
Feb. 02, 2019
Segment Reporting Information [Line Items]      
Sales $ 1,431.7 $ 1,480.6  
Operating income (loss) (2.6) (574.2)  
Restructuring costs 26.8 6.5  
Goodwill and intangible impairments 0.0 448.7  
Credit transaction, net 0.0 141.0  
Total assets 6,193.3 5,272.9 $ 4,420.1
North America      
Segment Reporting Information [Line Items]      
Sales 1,300.3 1,347.8  
Operating income (loss) 48.1 (537.3)  
Restructuring costs (0.5)    
Goodwill and intangible impairments   448.7  
Credit transaction, net   141.0  
Total assets 5,437.4 4,722.3 3,943.0
International      
Segment Reporting Information [Line Items]      
Sales 111.5 128.7  
Operating income (loss) (8.0) (7.6)  
Total assets 608.1 401.7 367.4
Other      
Segment Reporting Information [Line Items]      
Sales 19.9 4.1  
Operating income (loss) (42.7) (29.3)  
Restructuring costs 27.3 6.5  
Total assets $ 147.8 $ 148.9 $ 109.7
v3.19.1
Restructuring Plans - Narrative (Details) - USD ($)
$ in Millions
3 Months Ended 15 Months Ended
May 04, 2019
May 05, 2018
May 04, 2019
Restructuring Cost and Reserve [Line Items]      
Restructuring charges $ 5.4 $ 0.0  
Signet Path to Brillance      
Restructuring Cost and Reserve [Line Items]      
Restructuring plan, length   3 years  
Restructuring charges 26.8 $ 6.5 $ 152.7
Cash payments $ 27.1    
Minimum | Signet Path to Brillance      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges   200.0  
Cash payments   105.0  
Maximum | Signet Path to Brillance      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges   220.0  
Cash payments   $ 115.0  
v3.19.1
Restructuring Plans - Restructuring and Related Costs (Details) - USD ($)
$ in Millions
3 Months Ended 15 Months Ended
May 04, 2019
May 05, 2018
May 04, 2019
Restructuring Cost and Reserve [Line Items]      
Restructuring charges $ 5.4 $ 0.0  
Signet Path to Brillance      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges 26.8 6.5 $ 152.7
Signet Path to Brillance | Restructuring Charges      
Restructuring Cost and Reserve [Line Items]      
Other Plan related expenses 26.8 $ 6.5  
Inventory charges | Signet Path to Brillance      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges 0.0   62.2
Termination benefits | Signet Path to Brillance      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges 8.8   18.5
Store closure and other costs | Signet Path to Brillance      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges $ 18.0   $ 72.0
v3.19.1
Restructuring Plans - Schedule of Plan Liabilities (Details) - USD ($)
$ in Millions
3 Months Ended 15 Months Ended
May 04, 2019
May 05, 2018
May 04, 2019
Restructuring Reserve [Roll Forward]      
Charged to expense $ 5.4 $ 0.0  
Signet Path to Brillance      
Restructuring Reserve [Roll Forward]      
Beginning balance 12.6    
Payments and other adjustments (27.1)    
Charged to expense 26.8 $ 6.5 $ 152.7
Ending balance 12.3   12.3
Termination benefits | Signet Path to Brillance      
Restructuring Reserve [Roll Forward]      
Beginning balance 0.0    
Payments and other adjustments (2.0)    
Charged to expense 8.8   18.5
Ending balance 6.8   6.8
Store closure and other costs | Signet Path to Brillance      
Restructuring Reserve [Roll Forward]      
Beginning balance 12.6    
Payments and other adjustments (25.1)    
Charged to expense 18.0   72.0
Ending balance $ 5.5   $ 5.5
v3.19.1
Redeemable preferred shares - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended
Oct. 05, 2016
May 04, 2019
May 05, 2018
Feb. 02, 2019
Temporary Equity [Line Items]        
Accretion on redeemable convertible preferred shares   $ 8.2 $ 8.2  
Series A Redeemable Convertible Preferred Stock        
Temporary Equity [Line Items]        
Redeemable convertible preferred stock, shares issued (shares) 625,000      
Preferred stock, purchase price $ 625.0      
Shares issued, price per share (in usd per share) $ 1,000      
Preferred stock, dividend rate, percentage   5.00%    
Payments of stock issuance costs $ 13.7      
Accumulated accretion of dividends   $ 4.4 2.7 $ 4.0
Accretion on redeemable convertible preferred shares   $ 0.4 $ 0.4  
v3.19.1
Redeemable preferred shares - Redeemable Preferred Shares (Details) - Series A Redeemable Convertible Preferred Stock
$ / shares in Units, shares in Millions, $ in Millions
May 04, 2019
USD ($)
$ / shares
shares
Feb. 02, 2019
USD ($)
$ / shares
shares
May 05, 2018
USD ($)
$ / shares
shares
Temporary Equity [Line Items]      
Conversion ratio 11.5493 11.3660 10.9409
Conversion price (USD per share) | $ / shares $ 86.5853 $ 87.9817 $ 91.4002
Conversion of stock, shares issued (shares) | shares 7.2 7.1 6.8
Liquidation preference | $ $ 632.8 $ 632.8 $ 632.8
v3.19.1
Shareholders' equity - Share Repurchase (Details) - USD ($)
$ / shares in Units, shares in Millions
3 Months Ended
May 04, 2019
May 05, 2018
Class of Stock [Line Items]    
Shares repurchased (shares) 0.0 1.5
Amount repurchased $ 0 $ 60,000,000
Average repurchase price per share (usd per share) $ 0.00 $ 39.62
2017 Program    
Class of Stock [Line Items]    
Amount authorized $ 600,000,000  
Shares repurchased (shares) 0.0 0.2
Amount repurchased $ 0 $ 9,400,000
Average repurchase price per share (usd per share) $ 0.00 $ 38.86
Remaining authorized repurchase amount $ 165,600,000  
2016 Program    
Class of Stock [Line Items]    
Amount authorized $ 1,375,000,000  
Shares repurchased (shares)   1.3
Amount repurchased   $ 50,600,000
Average repurchase price per share (usd per share)   $ 39.76
v3.19.1
Shareholders' equity - Dividends (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended
May 04, 2019
May 05, 2018
Dividends Payable [Line Items]    
Dividends declared per common share (usd per share) $ 0.37 $ 0.37
Dividends, common stock $ 19.3 $ 21.8
Dividends declared per preferred share (usd per share) $ 12.50 $ 12.50
Dividends on redeemable convertible preferred shares $ 8.2 $ 8.2
Series A Redeemable Convertible Preferred Stock    
Dividends Payable [Line Items]    
Dividends declared per preferred share (usd per share) $ 12.5 $ 12.5
Dividends, preferred stock $ 7.8 $ 7.8
Dividends on redeemable convertible preferred shares 0.4 0.4
Accrued Expenses    
Dividends Payable [Line Items]    
Dividends, preferred stock $ 7.8  
Other liabilities    
Dividends Payable [Line Items]    
Dividends, preferred stock   $ 7.8
v3.19.1
Earnings (loss) per common share (“EPS”) - Schedule of Earnings per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
3 Months Ended
May 04, 2019
May 05, 2018
Earnings Per Share [Abstract]    
Net income (loss) attributable to common shareholders $ (18.2) $ (504.8)
Net income $ (18.2) $ (504.8)
Basic weighted average number of shares outstanding (shares) 51.6 59.5
Diluted weighted average number of shares outstanding (shares) 51.6 59.5
Earnings per common share - diluted (usd per share) $ (0.35) $ (8.48)
v3.19.1
Earnings (loss) per common share (“EPS”) - Schedule of Antidilutive Securities Excluded From Computation of Earnings Per Share (Details) - shares
shares in Millions
3 Months Ended
May 04, 2019
May 05, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Anti-dilutive shares excluded from the calculation of earnings per share (shares) 8.3 7.3
Share awards    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Anti-dilutive shares excluded from the calculation of earnings per share (shares) 1.1 0.5
Potential impact of preferred shares    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Anti-dilutive shares excluded from the calculation of earnings per share (shares) 7.2 6.8
v3.19.1
Accumulated other comprehensive income (loss) - Changes in Accumulated OCI by Component and Reclassifications Out of Accumulated OCI (Details)
$ in Millions
3 Months Ended
May 04, 2019
USD ($)
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning Balance $ 1,201.6
Other comprehensive income (loss) (“OCI”) before reclassifications (4.9)
Amounts reclassified from AOCI to net income (0.2)
Total other comprehensive (loss) income (5.1)
Ending Balance 1,161.4
Foreign currency translation  
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning Balance (248.4)
Other comprehensive income (loss) (“OCI”) before reclassifications (2.0)
Amounts reclassified from AOCI to net income 0.0
Total other comprehensive (loss) income (2.0)
Ending Balance (250.4)
Losses on available-for-sale securities, net  
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning Balance (0.5)
Other comprehensive income (loss) (“OCI”) before reclassifications 0.3
Amounts reclassified from AOCI to net income 0.0
Total other comprehensive (loss) income 0.3
Ending Balance (0.2)
Gains (losses) on cash flow hedges  
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning Balance 4.0
Other comprehensive income (loss) (“OCI”) before reclassifications (3.2)
Amounts reclassified from AOCI to net income (0.4)
Total other comprehensive (loss) income (3.6)
Ending Balance 0.4
Accumulated other comprehensive loss  
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning Balance (302.8)
Ending Balance (307.9)
Pension Plan | Actuarial losses  
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning Balance (53.8)
Other comprehensive income (loss) (“OCI”) before reclassifications 0.0
Amounts reclassified from AOCI to net income 0.2
Total other comprehensive (loss) income 0.2
Ending Balance (53.6)
Pension Plan | Prior service credits  
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning Balance (4.1)
Other comprehensive income (loss) (“OCI”) before reclassifications 0.0
Amounts reclassified from AOCI to net income 0.0
Total other comprehensive (loss) income 0.0
Ending Balance $ (4.1)
v3.19.1
Accumulated other comprehensive income (loss) - Reclassifications out of AOCI (Details) - USD ($)
$ in Millions
3 Months Ended
May 04, 2019
May 05, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Cost of sales $ (932.3) $ (995.8)
Interest expense, net (9.2) (8.9)
Income before income taxes 11.5 582.5
Other non-operating income 0.3 0.6
Income taxes (1.5) (85.9)
Net income 10.0 496.6
Reclassification out of Accumulated Other Comprehensive Income    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Net income (0.2) (0.1)
Gains (losses) on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Income before income taxes (0.5) (0.5)
Income taxes 0.1 0.2
Net income (0.4) (0.3)
Gains (losses) on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | Foreign currency contracts    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Cost of sales (0.3) 0.3
Gains (losses) on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | Interest rate swaps    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Interest expense, net (0.6) (0.3)
Gains (losses) on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | Commodity contracts    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Cost of sales 0.4 (0.5)
Actuarial losses | Reclassification out of Accumulated Other Comprehensive Income    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Other non-operating income (0.3) (0.3)
Prior service credits | Reclassification out of Accumulated Other Comprehensive Income    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Other non-operating income 0.0 0.1
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | Reclassification out of Accumulated Other Comprehensive Income    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Income before income taxes 0.3 0.2
Income taxes (0.1) 0.0
Net income $ 0.2 $ 0.2
v3.19.1
Income taxes - Reconciliation of Statutory Tax Rate to Effective Tax Rate (Details)
3 Months Ended
May 04, 2019
May 05, 2018
Income Tax Disclosure [Abstract]    
Effective tax rate before discrete items 14.70% 28.30%
Discrete items recognized (1.70%) (13.50%)
Effective tax rate recognized in statement of operations 13.00% 14.80%
v3.19.1
Accounts receivable - Portfolio of Accounts Receivable (Details) - USD ($)
$ in Millions
May 04, 2019
Feb. 02, 2019
May 05, 2018
Receivables [Abstract]      
Accounts receivable, held for investment $ 15.3 $ 19.5 $ 6.8
Accounts receivable, held for sale 7.8 4.2 484.6
Accounts receivable $ 23.1 $ 23.7 $ 491.4
v3.19.1
Accounts receivable - Additional Information (Details) - Credit Transaction, Net
$ in Millions
3 Months Ended
May 05, 2018
USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Valuation losses on accounts receivable $ 141.0
Other transacted-related costs $ 2.1
v3.19.1
Inventories - Summary of Inventory Components (Details) - USD ($)
$ in Millions
May 04, 2019
Feb. 02, 2019
May 05, 2018
Inventory Disclosure [Abstract]      
Raw materials $ 74.2 $ 76.3 $ 69.7
Finished goods 2,320.0 2,310.6 2,359.3
Total inventories $ 2,394.2 $ 2,386.9 $ 2,429.0
v3.19.1
Inventories - Narrative (Details) - USD ($)
$ in Millions
May 04, 2019
Feb. 02, 2019
Feb. 03, 2018
Inventory Disclosure [Abstract]      
Inventory reserves $ 84.7 $ 95.3 $ 41.4
v3.19.1
Leases - Lease Term and Discount Rate (Details)
May 04, 2019
Leases [Abstract]  
Operating lease, weighted average remaining lease term (years) 7 years 4 months
Operating lease, weighted average discount rate, percent 5.50%
v3.19.1
Leases - Total Lease Costs For Operating Leases (Details)
$ in Millions
3 Months Ended
May 04, 2019
USD ($)
Leases [Abstract]  
Operating lease cost $ 114.4
Short-term lease cost 7.8
Variable lease cost 26.6
Sublease income (0.7)
Total lease cost $ 148.1
v3.19.1
Leases - Schedule of Supplementary Cash Flow Information (Details)
$ in Millions
3 Months Ended
May 04, 2019
USD ($)
Leases [Abstract]  
Operating cash flows from operating leases $ 118.0
Operating lease right-of-use assets obtained in exchange for lease obligations $ 6.5
v3.19.1
Leases - Future Minimum Payments For Operating Leases (Details)
$ in Millions
May 04, 2019
USD ($)
Leases [Abstract]  
Remainder of Fiscal 2020 $ 342.2
Fiscal 2021 416.0
Fiscal 2022 364.0
Fiscal 2023 311.7
Fiscal 2024 245.3
Thereafter 726.1
Total lease payments 2,405.3
Less: Imputed interest (457.0)
Present value of lease liabilities $ 1,948.3
v3.19.1
Goodwill and intangibles - Additional Information (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
May 04, 2019
Feb. 02, 2019
May 05, 2018
Feb. 02, 2019
Finite-Lived Intangible Assets [Line Items]        
Goodwill and intangible impairments $ 0.0   $ 448.7  
Impairment     286.7 $ 521.2
North America        
Finite-Lived Intangible Assets [Line Items]        
Goodwill and intangible impairments     448.7  
Impairment   $ 208.8 308.8 $ 517.6
Impairment of intangible assets (excluding goodwill)   74.3 $ 139.9  
Other        
Finite-Lived Intangible Assets [Line Items]        
Impairment   $ 3.6    
v3.19.1
Goodwill and intangibles - Summary of Goodwill (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
May 04, 2019
Feb. 02, 2019
May 05, 2018
Feb. 02, 2019
Goodwill [Roll Forward]        
Beginning Balance $ 296.6   $ 821.7 $ 821.7
Impairment     (286.7) (521.2)
Impact of foreign exchange and other adjustments (0.2)     (3.9)
Ending Balance 296.4 $ 296.6 509.1 296.6
Intangible assets, purchase accounting adjustments     2.6  
North America        
Goodwill [Roll Forward]        
Beginning Balance 296.6   818.1 818.1
Impairment   (208.8) (308.8) (517.6)
Impact of foreign exchange and other adjustments (0.2)     (3.9)
Ending Balance 296.4 296.6   296.6
Other        
Goodwill [Roll Forward]        
Beginning Balance 0.0   $ 3.6 3.6
Impairment       (3.6)
Impact of foreign exchange and other adjustments       0.0
Ending Balance $ 0.0 $ 0.0   $ 0.0
v3.19.1
Goodwill and intangibles - Composition of Finite-Lived Intangibles (Details) - USD ($)
$ in Millions
May 04, 2019
Feb. 02, 2019
May 05, 2018
Intangible assets, net:      
Gross carrying amount $ 53.0 $ 53.3 $ 53.5
Accumulated amortization (50.2) (50.1) (47.2)
Net carrying amount 2.8 3.2 6.3
Intangible assets, gross 528.1 529.2 530.1
Accumulated amortization, net (264.0) (264.2) (186.9)
Total intangible assets, net 264.1 265.0 343.2
Intangible liabilities, net      
Gross carrying amount (113.7) (113.9) (114.1)
Accumulated amortization 93.8 92.5 87.1
Total (19.9) (21.4) (27.0)
Trade names      
Intangible assets, net:      
Indefinite-lived intangible assets, gross 475.1 475.9 476.6
Accumulated amortization (213.8) (214.1) (139.7)
Indefinite-lived intangible assets $ 261.3 $ 261.8 $ 336.9
v3.19.1
Derivatives - Additional Information (Details)
oz in Thousands
3 Months Ended
May 04, 2019
USD ($)
oz
Feb. 02, 2019
USD ($)
oz
May 05, 2018
USD ($)
oz
Mar. 31, 2015
USD ($)
Interest rate swaps        
Derivative [Line Items]        
Derivative, notional amount       $ 300,000,000
Foreign currency contracts | Not Designated as Hedging Instrument        
Derivative [Line Items]        
Derivative, notional amount $ 92,400,000 $ 111,500,000 $ 104,300,000  
Cash Flow Hedging        
Derivative [Line Items]        
Cash flow hedge gain to be reclassified within twelve months 500,000      
Cash Flow Hedging | Foreign currency contracts        
Derivative [Line Items]        
Derivative, notional amount $ 20,600,000 $ 22,400,000 $ 22,200,000  
Derivative, remaining maturity 11 months 12 months 11 months  
Cash Flow Hedging | Commodity contracts        
Derivative [Line Items]        
Derivative, remaining maturity 20 months 20 months 9 months  
Derivative, notional amount in gold | oz 92 89 5  
v3.19.1
Derivatives - Fair Value of Presentation of Derivative Assets and Liabilities (Details) - USD ($)
$ in Millions
May 04, 2019
Feb. 02, 2019
May 05, 2018
Derivatives, Fair Value [Line Items]      
Fair Value of derivative assets $ 1.9 $ 7.2 $ 2.8
Fair value of derivative liabilities (0.6) (0.2) (1.2)
Designated as Hedging Instrument      
Derivatives, Fair Value [Line Items]      
Fair Value of derivative assets 0.9 6.4 2.8
Fair value of derivative liabilities (0.6) (0.2) (0.2)
Foreign currency contracts | Designated as Hedging Instrument | Other current assets      
Derivatives, Fair Value [Line Items]      
Fair Value of derivative assets 0.0 0.1 0.4
Foreign currency contracts | Designated as Hedging Instrument | Other current liabilities      
Derivatives, Fair Value [Line Items]      
Fair value of derivative liabilities (0.1) (0.2) (0.2)
Foreign currency contracts | Not Designated as Hedging Instrument | Other current assets      
Derivatives, Fair Value [Line Items]      
Fair Value of derivative assets 1.0 0.8 0.0
Foreign currency contracts | Not Designated as Hedging Instrument | Other current liabilities      
Derivatives, Fair Value [Line Items]      
Fair value of derivative liabilities 0.0 0.0 (1.0)
Commodity contracts | Designated as Hedging Instrument | Other current assets      
Derivatives, Fair Value [Line Items]      
Fair Value of derivative assets 0.8 4.3 0.1
Commodity contracts | Designated as Hedging Instrument | Other assets      
Derivatives, Fair Value [Line Items]      
Fair Value of derivative assets 0.1 1.4 0.0
Commodity contracts | Designated as Hedging Instrument | Other current liabilities      
Derivatives, Fair Value [Line Items]      
Fair value of derivative liabilities (0.3) 0.0 0.0
Commodity contracts | Designated as Hedging Instrument | Other liabilities      
Derivatives, Fair Value [Line Items]      
Fair value of derivative liabilities (0.2) 0.0 0.0
Interest rate swaps | Designated as Hedging Instrument | Other assets      
Derivatives, Fair Value [Line Items]      
Fair Value of derivative assets $ 0.0 $ 0.6 $ 2.3
v3.19.1
Derivatives - Derivative Instruments Designated as Cash Flow Hedges in OCI (Details) - USD ($)
$ in Millions
3 Months Ended
May 04, 2019
May 05, 2018
Movement in Accumulated Other Comprehensive Income [Roll Forward]    
Current period gains (losses) recognized in OCI $ (4.3)  
Current period gains (losses) recognized in OCI   $ 1.9
Losses (gains) reclassified from AOCI to net income (0.5)  
Losses (gains) reclassified from AOCI to net income   (0.5)
Cash Flow Hedging    
Movement in Accumulated Other Comprehensive Income [Roll Forward]    
Gains (losses) recorded in AOCI, beginning of period 5.3  
Gains recorded in AOCI, end of period 0.5 2.6
Commodity contracts | Cash Flow Hedging    
Movement in Accumulated Other Comprehensive Income [Roll Forward]    
Gains (losses) recorded in AOCI, beginning of period 4.0 1.4
Current period gains (losses) recognized in OCI (4.3)  
Current period gains (losses) recognized in OCI   0.2
Gains recorded in AOCI, end of period 0.1 1.1
Interest rate swaps | Cash Flow Hedging    
Movement in Accumulated Other Comprehensive Income [Roll Forward]    
Gains (losses) recorded in AOCI, beginning of period 0.6 2.2
Current period gains (losses) recognized in OCI 0.0  
Current period gains (losses) recognized in OCI   0.4
Gains recorded in AOCI, end of period 0.0 2.3
Foreign currency contracts | Cash Flow Hedging    
Movement in Accumulated Other Comprehensive Income [Roll Forward]    
Gains (losses) recorded in AOCI, beginning of period 0.7 (2.4)
Current period gains (losses) recognized in OCI 0.0  
Current period gains (losses) recognized in OCI   1.3
Gains recorded in AOCI, end of period 0.4 (0.8)
Cost of sales | Commodity contracts | Cash Flow Hedging    
Movement in Accumulated Other Comprehensive Income [Roll Forward]    
Losses (gains) reclassified from AOCI to net income 0.4  
Losses (gains) reclassified from AOCI to net income   (0.5)
Cost of sales | Foreign currency contracts | Cash Flow Hedging    
Movement in Accumulated Other Comprehensive Income [Roll Forward]    
Losses (gains) reclassified from AOCI to net income (0.3)  
Losses (gains) reclassified from AOCI to net income   0.3
Interest expense, net | Interest rate swaps | Cash Flow Hedging    
Movement in Accumulated Other Comprehensive Income [Roll Forward]    
Losses (gains) reclassified from AOCI to net income $ (0.6)  
Losses (gains) reclassified from AOCI to net income   $ (0.3)
v3.19.1
Derivatives - Derivatives not Designated as Hedging Instruments (Details) - USD ($)
$ in Millions
3 Months Ended
May 04, 2019
May 05, 2018
Not Designated as Hedging Instrument | Foreign currency contracts | Other Income    
Derivative [Line Items]    
Foreign currency contracts not designated as hedging $ 1.1 $ (4.8)
v3.19.1
Fair value measurements - Fair Value of Assets and Liabilities (Details) - USD ($)
$ in Millions
May 04, 2019
Feb. 02, 2019
May 05, 2018
Quoted prices in active markets for identical assets (Level 1)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Assets $ 10.3 $ 7.1 $ 11.6
Liabilities 0.0 0.0 0.0
Significant other observable inputs (Level 2)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Assets 12.5 14.9 18.1
Liabilities (0.6) (0.2) (1.2)
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 7.7 4.7 7.3
US Treasury securities | Significant other observable inputs (Level 2)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Assets 0.0 0.0 0.0
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 2.6 2.4 4.3
Corporate equity securities | Significant other observable inputs (Level 2)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Assets 0.0 0.0 0.0
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 0.0 0.0 0.0
Liabilities 0.0 0.0 0.0
Foreign currency contracts | Significant other observable inputs (Level 2)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Assets 1.0 0.9 0.4
Liabilities (0.1) (0.2) (1.2)
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 0.0 0.0 0.0
Liabilities 0.0 0.0 0.0
Commodity contracts | Significant other observable inputs (Level 2)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Assets 0.9 5.7 0.1
Liabilities (0.5) 0.0 0.0
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 0.0 0.0 0.0
Interest rate swaps | Significant other observable inputs (Level 2)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Assets 0.0 0.6 2.3
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 0.0 0.0 0.0
US government agency securities | Significant other observable inputs (Level 2)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Assets 4.0 2.5 4.7
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 0.0 0.0 0.0
Corporate bonds and notes | Significant other observable inputs (Level 2)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Assets 6.6 5.2 10.6
Carrying Value      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Assets 22.8 22.0 29.7
Liabilities (0.6) (0.2) (1.2)
Carrying Value | US Treasury securities      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Assets 7.7 4.7 7.3
Carrying Value | Corporate equity securities      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Assets 2.6 2.4 4.3
Carrying Value | Foreign currency contracts      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Assets 1.0 0.9 0.4
Liabilities (0.1) (0.2) (1.2)
Carrying Value | Commodity contracts      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Assets 0.9 5.7 0.1
Liabilities (0.5) 0.0 0.0
Carrying Value | Interest rate swaps      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Assets 0.0 0.6 2.3
Carrying Value | US government agency securities      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Assets 4.0 2.5 4.7
Carrying Value | Corporate bonds and notes      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Assets $ 6.6 $ 5.2 $ 10.6
v3.19.1
Fair value measurements - Narrative (Details) - USD ($)
$ in Millions
3 Months Ended
Aug. 04, 2018
May 04, 2019
Fair Value Disclosures [Abstract]    
Sale of receivables. percentage deferred until second anniversary 5.00%  
Deferred payment, fair value disclosure   $ 19.3
v3.19.1
Fair value measurements - Outstanding Debt (Details) - USD ($)
$ in Millions
May 04, 2019
Feb. 02, 2019
May 05, 2018
Carrying Value      
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Outstanding debt $ 680.0 $ 688.3 $ 711.6
Fair Value      
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Outstanding debt 649.4 635.2 701.8
Senior Notes | Level 2 | Carrying Value      
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Outstanding debt 395.5 395.3 394.6
Senior Notes | Level 2 | Fair Value      
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Outstanding debt 363.4 340.3 382.3
Term Loan | Level 2 | Carrying Value      
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Outstanding debt 284.5 293.0 317.0
Term Loan | Level 2 | Fair Value      
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Outstanding debt $ 286.0 $ 294.9 $ 319.5
v3.19.1
Loans, overdrafts and long-term debt (Details) - USD ($)
$ in Millions
May 04, 2019
Feb. 02, 2019
May 05, 2018
Debt Disclosure [Abstract]      
Senior unsecured notes due 2024, net of unamortized discount $ 399.1 $ 399.0 $ 398.9
Senior unsecured term loan 286.0 294.9 319.5
Revolving credit facility 0.0 0.0 40.0
Bank overdrafts 2.7 40.1 0.3
Total debt 687.8 734.0 758.7
Less: Current portion of loans and overdrafts (43.7) (78.8) (72.3)
Less: Unamortized capitalized debt issuance fees (5.1) (5.6) (6.7)
Long-term debt $ 639.0 $ 649.6 $ 679.7
v3.19.1
Loans, overdrafts and long-term debt - Additional Information (Details) - USD ($)
3 Months Ended
May 04, 2019
May 05, 2018
Feb. 02, 2019
Credit Facility | Revolving Credit Facility      
Debt Instrument [Line Items]      
Credit facility, maximum borrowing capacity $ 700,000,000    
Capitalized fees 2,600,000    
Accumulated amortization of noncurrent deferred finance costs 1,700,000 $ 1,300,000 $ 1,600,000
Amortization of financing costs 100,000 100,000  
Letters of credit outstanding 14,600,000 $ 14,500,000 14,600,000
Weighted average interest rate   3.30%  
Credit Facility | Term Loan      
Debt Instrument [Line Items]      
Face amount 357,500,000.0    
Capitalized fees 6,200,000    
Accumulated amortization of noncurrent deferred finance costs 4,700,000 $ 3,700,000 4,300,000
Amortization of financing costs $ 400,000 $ 200,000  
Weighted average interest rate 4.37% 3.10%  
Signet UK Finance plc | Senior Unsecured Notes Due in 2024      
Debt Instrument [Line Items]      
Face amount $ 400,000,000    
Capitalized fees 7,000,000    
Accumulated amortization of noncurrent deferred finance costs 3,400,000 $ 2,700,000 $ 3,300,000
Amortization of financing costs $ 100,000 $ 100,000  
Stated interest rate 4.70%    
v3.19.1
Warranty reserve - Warranty Reserve Rollforward (Details) - USD ($)
$ in Millions
3 Months Ended
May 04, 2019
May 05, 2018
Movement in Standard Product Warranty Accrual [Roll Forward]    
Balance at beginning of period $ 33.2 $ 37.2
Warranty expense 3.5 1.4
Utilized (2.9) (3.0)
Balance at end of period $ 33.8 $ 35.6
v3.19.1
Warranty reserve (Details) - USD ($)
$ in Millions
May 04, 2019
Feb. 02, 2019
May 05, 2018
Feb. 03, 2018
Other Liabilities Disclosure [Abstract]        
Current liabilities $ 10.1 $ 10.0 $ 11.0  
Non-current liabilities 23.7 23.2 24.6  
Product warranty accrual $ 33.8 $ 33.2 $ 35.6 $ 37.2
v3.19.1
Share-based compensation - Additional Information (Details) - USD ($)
$ in Millions
3 Months Ended
May 04, 2019
May 05, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]    
Share-based compensation expense $ 4.0 $ 1.8
v3.19.1
Commitments and contingencies - Additional information (Details)
1 Months Ended 12 Months Ended
Mar. 27, 2019
lawsuit
Jan. 15, 2018
plaintiff
Jan. 14, 2018
plaintiff
Aug. 01, 2016
employee
Feb. 28, 2019
USD ($)
Mar. 31, 2017
lawsuit
Aug. 31, 2016
lawsuit
Feb. 03, 2018
employee
EPA Collective Action                
Loss Contingencies [Line Items]                
Number of employees opted in lawsuit (employee) (plaintiff)   254 70,000 10,314       9,124
S.D.N.Y. Cases                
Loss Contingencies [Line Items]                
New claims filed, number | lawsuit 2         2 2  
Consumer FInancial Protection Bureau                
Loss Contingencies [Line Items]                
Loss contingency, damages paid, value         $ 10,000,000      
New York Attorney General                
Loss Contingencies [Line Items]                
Loss contingency, damages paid, value         $ 1,000,000      
v3.19.1
Condensed consolidating financial information - Narrative (Details)
May 04, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Parent's ownership in guarantor subsidiary (percent) 100.00%
v3.19.1
Condensed consolidating financial information - Condensed consolidated statement of operations (Details) - USD ($)
$ in Millions
3 Months Ended
May 04, 2019
May 05, 2018
Condensed Income Statements, Captions [Line Items]    
Sales $ 1,431.7 $ 1,480.6
Cost of sales (932.3) (995.8)
Gross margin 499.4 484.8
Selling, general and administrative expenses (475.2) (482.8)
Credit transaction, net 0.0 (143.1)
Restructuring charges (26.8) (6.5)
Goodwill and intangible impairments 0.0 (448.7)
Other operating income, net 0.0 22.1
Operating income (loss) (2.6) (574.2)
Intra-entity interest income (expense) 0.0 0.0
Interest expense, net (9.2) (8.9)
Other non-operating income 0.3 0.6
Income (loss) before income taxes (11.5) (582.5)
Income taxes 1.5 85.9
Equity in income of subsidiaries 0.0 0.0
Net income (loss) (10.0) (496.6)
Dividends on redeemable convertible preferred shares (8.2) (8.2)
Net income attributable to common shareholders (18.2) (504.8)
Consolidation, Eliminations    
Condensed Income Statements, Captions [Line Items]    
Sales 0.0 0.0
Cost of sales 0.0 0.0
Gross margin 0.0 0.0
Selling, general and administrative expenses 0.0 0.0
Credit transaction, net   0.0
Restructuring charges 0.0 0.0
Goodwill and intangible impairments   0.0
Other operating income, net 0.0 0.0
Operating income (loss) 0.0 0.0
Intra-entity interest income (expense) 0.0 0.0
Interest expense, net 0.0 0.0
Other non-operating income 0.0 0.0
Income (loss) before income taxes 0.0 0.0
Income taxes 0.0 0.0
Equity in income of subsidiaries 154.4 1,628.7
Net income (loss) 154.4 1,628.7
Dividends on redeemable convertible preferred shares 0.0 0.0
Net income attributable to common shareholders 154.4 1,628.7
Guarantor Subsidiaries | Reportable Legal Entities    
Condensed Income Statements, Captions [Line Items]    
Sales 1,316.9 1,356.5
Cost of sales (854.0) (936.3)
Gross margin 462.9 420.2
Selling, general and administrative expenses (462.4) (444.4)
Credit transaction, net   (143.1)
Restructuring charges (25.8) (5.5)
Goodwill and intangible impairments   (448.7)
Other operating income, net (0.1) 22.6
Operating income (loss) (25.4) (598.9)
Intra-entity interest income (expense) (48.4) (44.8)
Interest expense, net (4.3) (4.0)
Other non-operating income 0.3 0.6
Income (loss) before income taxes (77.8) (647.1)
Income taxes 8.8 79.4
Equity in income of subsidiaries (79.7) (565.1)
Net income (loss) (148.7) (1,132.8)
Dividends on redeemable convertible preferred shares 0.0 0.0
Net income attributable to common shareholders (148.7) (1,132.8)
Non-Guarantor Subsidiaries | Reportable Legal Entities    
Condensed Income Statements, Captions [Line Items]    
Sales 114.8 124.1
Cost of sales (78.3) (59.5)
Gross margin 36.5 64.6
Selling, general and administrative expenses (12.8) (38.3)
Credit transaction, net   0.0
Restructuring charges (1.0) (1.0)
Goodwill and intangible impairments   0.0
Other operating income, net 0.1 (0.4)
Operating income (loss) 22.8 24.9
Intra-entity interest income (expense) 44.4 40.8
Interest expense, net 0.1 0.0
Other non-operating income 0.0 0.0
Income (loss) before income taxes 67.3 65.7
Income taxes (7.4) 6.5
Equity in income of subsidiaries (65.4) (567.9)
Net income (loss) (5.5) (495.7)
Dividends on redeemable convertible preferred shares 0.0 0.0
Net income attributable to common shareholders (5.5) (495.7)
Signet Jewelers Limited | Reportable Legal Entities    
Condensed Income Statements, Captions [Line Items]    
Sales 0.0 0.0
Cost of sales 0.0 0.0
Gross margin 0.0 0.0
Selling, general and administrative expenses 0.0 (0.1)
Credit transaction, net   0.0
Restructuring charges 0.0 0.0
Goodwill and intangible impairments   0.0
Other operating income, net 0.0 (0.1)
Operating income (loss) 0.0 (0.2)
Intra-entity interest income (expense) (0.7) (0.7)
Interest expense, net 0.0 0.0
Other non-operating income 0.0 0.0
Income (loss) before income taxes (0.7) (0.9)
Income taxes 0.0 0.0
Equity in income of subsidiaries (9.3) (495.7)
Net income (loss) (10.0) (496.6)
Dividends on redeemable convertible preferred shares (8.2) (8.2)
Net income attributable to common shareholders (18.2) (504.8)
Signet UK Finance plc | Reportable Legal Entities    
Condensed Income Statements, Captions [Line Items]    
Sales 0.0 0.0
Cost of sales 0.0 0.0
Gross margin 0.0 0.0
Selling, general and administrative expenses 0.0 0.0
Credit transaction, net   0.0
Restructuring charges 0.0 0.0
Goodwill and intangible impairments   0.0
Other operating income, net 0.0 0.0
Operating income (loss) 0.0 0.0
Intra-entity interest income (expense) 4.7 4.7
Interest expense, net (5.0) (4.9)
Other non-operating income 0.0 0.0
Income (loss) before income taxes (0.3) (0.2)
Income taxes 0.1 0.0
Equity in income of subsidiaries 0.0 0.0
Net income (loss) (0.2) (0.2)
Dividends on redeemable convertible preferred shares 0.0 0.0
Net income attributable to common shareholders $ (0.2) $ (0.2)
v3.19.1
Condensed consolidating financial information - Condensed consolidated statement of comprehensive income (loss) (Details) - USD ($)
$ in Millions
3 Months Ended
May 04, 2019
May 05, 2018
Condensed Statement of Comprehensive Income [Line Items]    
Net income $ (10.0) $ (496.6)
Other comprehensive income (loss):    
Foreign currency translation adjustments (2.0) (21.7)
Available-for-sale securities:    
Unrealized loss 0.3 (0.2)
Impact from adoption of new accounting pronouncements [1] 0.0 (0.8)
Cash flow hedges:    
Unrealized gain (loss) (3.2)  
Reclassification adjustment for gains to net income (0.4)  
Unrealized gain (loss)   1.5
Reclassification adjustment for gains to net income   (0.3)
Pension plan:    
Reclassification adjustment to net income for amortization of actuarial loss 0.2 0.3
Reclassification adjustment to net income for amortization of prior service credits 0.0 (0.1)
Total other comprehensive income (loss) (5.1) (21.3)
Total comprehensive income (loss) (15.1) (517.9)
Consolidation, Eliminations    
Condensed Statement of Comprehensive Income [Line Items]    
Net income 154.4 1,628.7
Other comprehensive income (loss):    
Foreign currency translation adjustments 2.0 21.7
Available-for-sale securities:    
Unrealized loss (0.3) 0.2
Impact from adoption of new accounting pronouncements   0.8
Cash flow hedges:    
Unrealized gain (loss) 3.2  
Reclassification adjustment for gains to net income 0.4  
Unrealized gain (loss)   (1.5)
Reclassification adjustment for gains to net income   0.3
Pension plan:    
Reclassification adjustment to net income for amortization of actuarial loss (0.2) (0.3)
Reclassification adjustment to net income for amortization of prior service credits   0.1
Total other comprehensive income (loss) 5.1 21.3
Total comprehensive income (loss) 159.5 1,650.0
Guarantor Subsidiaries | Reportable Legal Entities    
Condensed Statement of Comprehensive Income [Line Items]    
Net income (148.7) (1,132.8)
Other comprehensive income (loss):    
Foreign currency translation adjustments (2.0) (21.5)
Available-for-sale securities:    
Unrealized loss 0.0 0.0
Impact from adoption of new accounting pronouncements   0.0
Cash flow hedges:    
Unrealized gain (loss) (3.2)  
Reclassification adjustment for gains to net income (0.4)  
Unrealized gain (loss)   1.5
Reclassification adjustment for gains to net income   (0.3)
Pension plan:    
Reclassification adjustment to net income for amortization of actuarial loss 0.2 0.3
Reclassification adjustment to net income for amortization of prior service credits   (0.1)
Total other comprehensive income (loss) (5.4) (20.1)
Total comprehensive income (loss) (154.1) (1,152.9)
Non-Guarantor Subsidiaries | Reportable Legal Entities    
Condensed Statement of Comprehensive Income [Line Items]    
Net income (5.5) (495.7)
Other comprehensive income (loss):    
Foreign currency translation adjustments   (0.2)
Available-for-sale securities:    
Unrealized loss 0.3 (0.2)
Impact from adoption of new accounting pronouncements   (0.8)
Cash flow hedges:    
Unrealized gain (loss) 0.0  
Reclassification adjustment for gains to net income 0.0  
Unrealized gain (loss)   0.0
Reclassification adjustment for gains to net income   0.0
Pension plan:    
Reclassification adjustment to net income for amortization of actuarial loss 0.0 0.0
Reclassification adjustment to net income for amortization of prior service credits   0.0
Total other comprehensive income (loss) 0.3 (1.2)
Total comprehensive income (loss) (5.2) (496.9)
Signet Jewelers Limited | Reportable Legal Entities    
Condensed Statement of Comprehensive Income [Line Items]    
Net income (10.0) (496.6)
Other comprehensive income (loss):    
Foreign currency translation adjustments (2.0) (21.7)
Available-for-sale securities:    
Unrealized loss 0.3 (0.2)
Impact from adoption of new accounting pronouncements   (0.8)
Cash flow hedges:    
Unrealized gain (loss) (3.2)  
Reclassification adjustment for gains to net income (0.4)  
Unrealized gain (loss)   1.5
Reclassification adjustment for gains to net income   (0.3)
Pension plan:    
Reclassification adjustment to net income for amortization of actuarial loss 0.2 0.3
Reclassification adjustment to net income for amortization of prior service credits   (0.1)
Total other comprehensive income (loss) (5.1) (21.3)
Total comprehensive income (loss) (15.1) (517.9)
Signet UK Finance plc | Reportable Legal Entities    
Condensed Statement of Comprehensive Income [Line Items]    
Net income (0.2) (0.2)
Other comprehensive income (loss):    
Foreign currency translation adjustments 0.0 0.0
Available-for-sale securities:    
Unrealized loss 0.0 0.0
Impact from adoption of new accounting pronouncements   0.0
Cash flow hedges:    
Unrealized gain (loss) 0.0  
Reclassification adjustment for gains to net income 0.0  
Unrealized gain (loss)   0.0
Reclassification adjustment for gains to net income   0.0
Pension plan:    
Reclassification adjustment to net income for amortization of actuarial loss 0.0 0.0
Reclassification adjustment to net income for amortization of prior service credits   0.0
Total other comprehensive income (loss) 0.0 0.0
Total comprehensive income (loss) $ (0.2) $ (0.2)
[1] Adjustment reflects the reclassification of unrealized gains related to the Company’s available-for-sale equity securities as of February 3, 2018 from AOCI into retained earnings associated with the adoption of ASU 2016-1.
v3.19.1
Condensed consolidating financial information - Condensed consolidated balance sheet (Details) - USD ($)
$ in Millions
May 04, 2019
Feb. 03, 2019
Feb. 02, 2019
May 05, 2018
Feb. 03, 2018
Current assets:          
Cash and cash equivalents $ 195.1   $ 195.4 $ 153.9  
Accounts receivable 23.1   23.7 491.4  
Intra-entity receivables, net 0.0   0.0 0.0  
Other current assets 205.5 $ 235.2 244.0 236.8  
Income taxes 4.8   5.8 55.2  
Inventories 2,394.2   2,386.9 2,429.0  
Total current assets 2,822.7   2,855.8 3,366.3  
Non-current assets:          
Property, plant and equipment, net 776.1   800.5 847.2  
Operating lease right-of-use assets 1,822.8 1,927.2      
Goodwill 296.4   296.6 509.1 $ 821.7
Intangible assets, net 264.1   265.0 343.2  
Investment in subsidiaries 0.0     0.0  
Intra-entity receivables, net 0.0     0.0  
Other assets 189.2   181.2 206.3  
Deferred tax assets 22.0   21.0 0.8  
Total assets 6,193.3   4,420.1 5,272.9  
Current liabilities:          
Loans and overdrafts 43.7   78.8 72.3  
Accounts payable 238.3   153.7 287.5  
Intra-entity payables, net     0.0 0.0  
Accrued expenses and other current liabilities 420.2 393.8 502.8 463.7  
Deferred revenue 277.0   270.0 284.9  
Operating lease liabilities 358.9 376.5      
Income taxes 24.1   27.7 0.0  
Total current liabilities 1,362.2   1,033.0 1,108.4  
Non-current liabilities:          
Long-term debt 639.0   649.6 679.7  
Operating lease liabilities 1,589.4 1,676.9      
Other liabilities 126.0 $ 198.1 224.1 236.5  
Deferred revenue 699.6   696.5 667.5  
Deferred tax liabilities 0.0   0.0 74.2  
Total liabilities 4,416.2   2,603.2 2,766.3  
Shareholders’ equity:          
Total shareholders’ equity 1,161.4   1,201.6 1,892.6 $ 2,499.8
Total liabilities, redeemable convertible preferred shares and shareholders’ equity 6,193.3   4,420.1 5,272.9  
Consolidation, Eliminations          
Current assets:          
Cash and cash equivalents 0.0   0.0 0.0  
Accounts receivable 0.0   0.0 0.0  
Intra-entity receivables, net (339.7)   (311.3) (245.1)  
Other current assets 0.0   0.0 0.0  
Income taxes 0.0   0.0 0.0  
Inventories 0.0   0.0 0.0  
Total current assets (339.7)   (311.3) (245.1)  
Non-current assets:          
Property, plant and equipment, net 0.0     0.0  
Operating lease right-of-use assets 0.0        
Goodwill 0.0     0.0  
Intangible assets, net 0.0   0.0 0.0  
Investment in subsidiaries (1,666.2)   (1,834.5) (3,166.8)  
Intra-entity receivables, net (2,983.0)   (2,988.0) (3,225.0)  
Other assets 0.0   0.0 0.0  
Deferred tax assets 0.0     0.0  
Total assets (4,988.9)   (5,133.8) (6,636.9)  
Current liabilities:          
Loans and overdrafts 0.0   0.0 0.0  
Accounts payable 0.0   0.0 0.0  
Intra-entity payables, net (339.7)   (311.3) (245.1)  
Accrued expenses and other current liabilities 0.0   0.0 0.0  
Deferred revenue 0.0   0.0 0.0  
Operating lease liabilities 0.0        
Income taxes 0.0   0.0    
Total current liabilities (339.7)   (311.3) (245.1)  
Non-current liabilities:          
Long-term debt       0.0  
Intra-entity payables, net (2,983.0)   (2,988.0) (3,225.0)  
Operating lease liabilities 0.0        
Other liabilities       0.0  
Deferred revenue       0.0  
Deferred tax liabilities     0.0 0.0  
Total liabilities (3,322.7)   (3,299.3) (3,470.1)  
Shareholders’ equity:          
Total shareholders’ equity (1,666.2)   (1,834.5) (3,166.8)  
Total liabilities, redeemable convertible preferred shares and shareholders’ equity (4,988.9)   (5,133.8) (6,636.9)  
Guarantor Subsidiaries | Reportable Legal Entities          
Current assets:          
Cash and cash equivalents 133.7   146.7 102.5  
Accounts receivable 13.4   14.3 490.4  
Intra-entity receivables, net 30.7   83.4 0.0  
Other current assets 171.8   215.9 208.6  
Income taxes 4.3   5.1 32.0  
Inventories 2,309.0   2,302.6 2,360.6  
Total current assets 2,662.9   2,768.0 3,194.1  
Non-current assets:          
Property, plant and equipment, net 765.5   789.6 839.7  
Operating lease right-of-use assets 1,814.7        
Goodwill 206.1   206.3 206.4  
Intangible assets, net 243.3   244.0 268.4  
Investment in subsidiaries (96.3)   (15.7) 579.4  
Intra-entity receivables, net 0.0     0.0  
Other assets 165.9   164.0 176.4  
Deferred tax assets 25.9   24.5 0.8  
Total assets 5,788.0   4,180.7 5,265.2  
Current liabilities:          
Loans and overdrafts 44.4   79.5 73.0  
Accounts payable 176.1   119.7 257.2  
Intra-entity payables, net       208.8  
Accrued expenses and other current liabilities 362.0   450.4 403.7  
Deferred revenue 266.7   257.6 272.1  
Operating lease liabilities 357.0        
Income taxes 23.8   26.4    
Total current liabilities 1,230.0   933.6 1,214.8  
Non-current liabilities:          
Long-term debt 242.8   253.6 284.3  
Intra-entity payables, net 2,983.0   2,988.0 3,225.0  
Operating lease liabilities 1,583.2        
Other liabilities 121.4   219.4 231.5  
Deferred revenue 699.6   696.5 667.5  
Deferred tax liabilities     0.0 57.5  
Total liabilities 6,860.0   5,091.1 5,680.6  
Shareholders’ equity:          
Total shareholders’ equity (1,072.0)   (910.4) (415.4)  
Total liabilities, redeemable convertible preferred shares and shareholders’ equity 5,788.0   4,180.7 5,265.2  
Non-Guarantor Subsidiaries | Reportable Legal Entities          
Current assets:          
Cash and cash equivalents 60.9   48.4 50.0  
Accounts receivable 9.7   9.4 1.0  
Intra-entity receivables, net 297.2   220.0 237.3  
Other current assets 33.7   28.1 28.2  
Income taxes 0.5   0.7 23.2  
Inventories 85.2   84.3 68.4  
Total current assets 487.2   390.9 408.1  
Non-current assets:          
Property, plant and equipment, net 10.6   10.9 7.5  
Operating lease right-of-use assets 8.1        
Goodwill 90.3   90.3 302.7  
Intangible assets, net 20.8   21.0 74.8  
Investment in subsidiaries (382.4)   (305.5) 15.6  
Intra-entity receivables, net 2,583.0   2,588.0 2,825.0  
Other assets 23.3   17.2 29.9  
Deferred tax assets (3.9)   (3.5) 0.0  
Total assets 2,837.0   2,809.3 3,663.6  
Current liabilities:          
Loans and overdrafts 0.0   0.0 0.0  
Accounts payable 62.2   34.0 30.3  
Intra-entity payables, net 0.0   0.0 0.0  
Accrued expenses and other current liabilities 22.6   22.3 22.7  
Deferred revenue 10.3   12.4 12.8  
Operating lease liabilities 1.9        
Income taxes 0.3   0.5    
Total current liabilities 97.3   69.2 65.8  
Non-current liabilities:          
Long-term debt       0.0  
Operating lease liabilities 6.2        
Other liabilities 4.6   4.7 5.0  
Deferred revenue       0.0  
Deferred tax liabilities     0.0 16.7  
Total liabilities 108.1   73.9 87.5  
Shareholders’ equity:          
Total shareholders’ equity 2,728.9   2,735.4 3,576.1  
Total liabilities, redeemable convertible preferred shares and shareholders’ equity 2,837.0   2,809.3 3,663.6  
Signet Jewelers Limited | Reportable Legal Entities          
Current assets:          
Cash and cash equivalents 0.4   0.2 1.3  
Accounts receivable 0.0   0.0 0.0  
Intra-entity receivables, net       0.0  
Other current assets 0.0   0.0 0.0  
Income taxes 0.0   0.0 0.0  
Inventories 0.0   0.0 0.0  
Total current assets 0.4   0.2 1.3  
Non-current assets:          
Property, plant and equipment, net 0.0     0.0  
Operating lease right-of-use assets 0.0        
Goodwill 0.0     0.0  
Intangible assets, net 0.0   0.0 0.0  
Investment in subsidiaries 2,144.9   2,155.7 2,571.8  
Intra-entity receivables, net 0.0     0.0  
Other assets 0.0   0.0 0.0  
Deferred tax assets 0.0     0.0  
Total assets 2,145.3   2,155.9 2,573.1  
Current liabilities:          
Loans and overdrafts 0.0   0.0 0.0  
Accounts payable 0.0   0.0 0.0  
Intra-entity payables, net 339.7   311.3 36.3  
Accrued expenses and other current liabilities 28.5   27.7 30.2  
Deferred revenue 0.0   0.0 0.0  
Operating lease liabilities 0.0        
Income taxes 0.0   0.0    
Total current liabilities 368.2   339.0 66.5  
Non-current liabilities:          
Long-term debt       0.0  
Operating lease liabilities 0.0        
Other liabilities       0.0  
Deferred revenue       0.0  
Deferred tax liabilities     0.0 0.0  
Total liabilities 368.2   339.0 66.5  
Shareholders’ equity:          
Total shareholders’ equity 1,161.4   1,201.6 1,892.6  
Total liabilities, redeemable convertible preferred shares and shareholders’ equity 2,145.3   2,155.9 2,573.1  
Signet UK Finance plc | Reportable Legal Entities          
Current assets:          
Cash and cash equivalents 0.1   0.1 0.1  
Accounts receivable 0.0   0.0 0.0  
Intra-entity receivables, net 11.8   7.9 7.8  
Other current assets 0.0   0.0 0.0  
Income taxes 0.0   0.0 0.0  
Inventories 0.0   0.0 0.0  
Total current assets 11.9   8.0 7.9  
Non-current assets:          
Property, plant and equipment, net 0.0   0.0 0.0  
Operating lease right-of-use assets 0.0        
Goodwill 0.0   0.0 0.0  
Intangible assets, net 0.0   0.0 0.0  
Investment in subsidiaries 0.0   0.0 0.0  
Intra-entity receivables, net 400.0   400.0 400.0  
Other assets 0.0   0.0 0.0  
Deferred tax assets 0.0   0.0 0.0  
Total assets 411.9   408.0 407.9  
Current liabilities:          
Loans and overdrafts (0.7)   (0.7) (0.7)  
Accounts payable 0.0   0.0 0.0  
Intra-entity payables, net 0.0   0.0 0.0  
Accrued expenses and other current liabilities 7.1   2.4 7.1  
Deferred revenue 0.0   0.0 0.0  
Operating lease liabilities 0.0        
Income taxes     0.8    
Total current liabilities 6.4   2.5 6.4  
Non-current liabilities:          
Long-term debt 396.2   396.0 395.4  
Intra-entity payables, net     0.0 0.0  
Operating lease liabilities 0.0        
Other liabilities     0.0 0.0  
Deferred revenue     0.0 0.0  
Deferred tax liabilities     0.0 0.0  
Total liabilities 402.6   398.5 401.8  
Shareholders’ equity:          
Total shareholders’ equity 9.3   9.5 6.1  
Total liabilities, redeemable convertible preferred shares and shareholders’ equity 411.9   408.0 407.9  
Series A Redeemable Convertible Preferred Stock          
Non-current liabilities:          
Series A redeemable convertible preferred shares 615.7   615.3 614.0  
Series A Redeemable Convertible Preferred Stock | Consolidation, Eliminations          
Non-current liabilities:          
Series A redeemable convertible preferred shares 0.0   0.0 0.0  
Series A Redeemable Convertible Preferred Stock | Guarantor Subsidiaries | Reportable Legal Entities          
Non-current liabilities:          
Series A redeemable convertible preferred shares 0.0   0.0 0.0  
Series A Redeemable Convertible Preferred Stock | Non-Guarantor Subsidiaries | Reportable Legal Entities          
Non-current liabilities:          
Series A redeemable convertible preferred shares 0.0   0.0 0.0  
Series A Redeemable Convertible Preferred Stock | Signet Jewelers Limited | Reportable Legal Entities          
Non-current liabilities:          
Series A redeemable convertible preferred shares 615.7   615.3 614.0  
Series A Redeemable Convertible Preferred Stock | Signet UK Finance plc | Reportable Legal Entities          
Non-current liabilities:          
Series A redeemable convertible preferred shares $ 0.0   $ 0.0 $ 0.0  
v3.19.1
Condensed consolidating financial information - Condensed consolidated statement of cash flows (Details) - USD ($)
$ in Millions
3 Months Ended
May 04, 2019
May 05, 2018
Cash flows from operating activities    
Net cash provided by operating activities $ 105.4 $ 27.9
Investing activities    
Purchase of property, plant and equipment (24.6) (26.1)
Purchase of available-for-sale securities (6.1) (0.4)
Proceeds from available-for-sale securities 0.3 1.1
Net cash used in investing activities (30.4) (25.4)
Financing activities    
Dividends paid on common shares (19.2) (18.8)
Dividends paid on redeemable convertible preferred shares (7.8) (7.8)
Intra-entity dividends paid   0.0
Repurchase of common shares 0.0 (60.0)
Proceeds from revolving credit facility   40.0
Repayments of revolving credit facility   (13.9)
Repayments of bank overdrafts (37.3) (13.9)
Other financing activities (1.5) (2.1)
Intra-entity activity, net 0.0 0.0
Net cash used in financing activities (74.7) (69.3)
Cash and cash equivalents at end of period 195.1 153.9
Increase (decrease) in cash and cash equivalents 0.3 (66.8)
Effect of exchange rate changes on cash and cash equivalents (0.6) (4.4)
Cash and cash equivalents at beginning of period 195.4 225.1
Consolidation, Eliminations    
Cash flows from operating activities    
Net cash provided by operating activities   (63.6)
Investing activities    
Purchase of property, plant and equipment 0.0 0.0
Purchase of available-for-sale securities 0.0 0.0
Proceeds from available-for-sale securities 0.0 0.0
Net cash used in investing activities 0.0 0.0
Financing activities    
Dividends paid on common shares 0.0 0.0
Dividends paid on redeemable convertible preferred shares 0.0 0.0
Intra-entity dividends paid   63.6
Repurchase of common shares   0.0
Proceeds from revolving credit facility   0.0
Repayments of revolving credit facility   0.0
Repayments of bank overdrafts 0.0  
Other financing activities 0.0 0.0
Intra-entity activity, net 0.0 0.0
Net cash used in financing activities 0.0 63.6
Cash and cash equivalents at end of period 0.0 0.0
Increase (decrease) in cash and cash equivalents 0.0 0.0
Effect of exchange rate changes on cash and cash equivalents 0.0 0.0
Cash and cash equivalents at beginning of period 0.0 0.0
Guarantor Subsidiaries | Reportable Legal Entities    
Cash flows from operating activities    
Net cash provided by operating activities 9.3 (68.0)
Investing activities    
Purchase of property, plant and equipment (24.6) (25.9)
Purchase of available-for-sale securities 0.0 0.0
Proceeds from available-for-sale securities 0.0 0.0
Net cash used in investing activities (24.6) (25.9)
Financing activities    
Dividends paid on common shares 0.0 0.0
Dividends paid on redeemable convertible preferred shares 0.0 0.0
Intra-entity dividends paid   0.0
Repurchase of common shares   0.0
Proceeds from revolving credit facility   40.0
Repayments of revolving credit facility   (13.9)
Repayments of bank overdrafts (37.3)  
Other financing activities 0.0 0.0
Intra-entity activity, net 49.2 30.8
Net cash used in financing activities 3.0 50.2
Cash and cash equivalents at end of period 133.7 102.5
Increase (decrease) in cash and cash equivalents (12.4) (43.7)
Effect of exchange rate changes on cash and cash equivalents (0.6) (4.3)
Cash and cash equivalents at beginning of period 146.7 150.5
Non-Guarantor Subsidiaries | Reportable Legal Entities    
Cash flows from operating activities    
Net cash provided by operating activities 92.3 93.4
Investing activities    
Purchase of property, plant and equipment   (0.2)
Purchase of available-for-sale securities (6.1) (0.4)
Proceeds from available-for-sale securities 0.3 1.1
Net cash used in investing activities (5.8) 0.5
Financing activities    
Dividends paid on common shares 0.0 0.0
Dividends paid on redeemable convertible preferred shares 0.0 0.0
Intra-entity dividends paid   (63.6)
Repurchase of common shares   0.0
Proceeds from revolving credit facility   0.0
Repayments of revolving credit facility   0.0
Repayments of bank overdrafts 0.0  
Other financing activities 0.0 0.0
Intra-entity activity, net (74.1) (53.0)
Net cash used in financing activities (74.1) (116.6)
Cash and cash equivalents at end of period 60.9 50.0
Increase (decrease) in cash and cash equivalents 12.5 (22.7)
Effect of exchange rate changes on cash and cash equivalents   (0.1)
Cash and cash equivalents at beginning of period 48.4 72.8
Signet Jewelers Limited | Reportable Legal Entities    
Cash flows from operating activities    
Net cash provided by operating activities (0.1) 61.2
Investing activities    
Purchase of property, plant and equipment 0.0 0.0
Purchase of available-for-sale securities 0.0 0.0
Proceeds from available-for-sale securities 0.0 0.0
Net cash used in investing activities 0.0 0.0
Financing activities    
Dividends paid on common shares (19.2) (18.8)
Dividends paid on redeemable convertible preferred shares (7.8) (7.8)
Intra-entity dividends paid   0.0
Repurchase of common shares   (60.0)
Proceeds from revolving credit facility   0.0
Repayments of bank overdrafts 0.0  
Other financing activities (1.5) (2.1)
Intra-entity activity, net 28.8 27.1
Net cash used in financing activities 0.3 (61.6)
Cash and cash equivalents at end of period 0.4 1.3
Increase (decrease) in cash and cash equivalents 0.2 (0.4)
Effect of exchange rate changes on cash and cash equivalents 0.0 0.0
Cash and cash equivalents at beginning of period 0.2 1.7
Signet UK Finance plc | Reportable Legal Entities    
Cash flows from operating activities    
Net cash provided by operating activities 3.9 4.9
Investing activities    
Purchase of property, plant and equipment 0.0 0.0
Purchase of available-for-sale securities 0.0 0.0
Proceeds from available-for-sale securities 0.0 0.0
Net cash used in investing activities 0.0 0.0
Financing activities    
Dividends paid on common shares 0.0 0.0
Dividends paid on redeemable convertible preferred shares 0.0 0.0
Intra-entity dividends paid   0.0
Repurchase of common shares   0.0
Proceeds from revolving credit facility   0.0
Repayments of revolving credit facility   0.0
Repayments of bank overdrafts 0.0  
Other financing activities 0.0 0.0
Intra-entity activity, net (3.9) (4.9)
Net cash used in financing activities (3.9) (4.9)
Cash and cash equivalents at end of period 0.1 0.1
Increase (decrease) in cash and cash equivalents 0.0 0.0
Effect of exchange rate changes on cash and cash equivalents 0.0 0.0
Cash and cash equivalents at beginning of period 0.1 0.1
Term Loan    
Financing activities    
Proceeds from term and bridge loans   (6.7)
Repayments of debt (8.9) (6.7)
Term Loan | Consolidation, Eliminations    
Financing activities    
Proceeds from term and bridge loans   0.0
Repayments of debt 0.0  
Term Loan | Guarantor Subsidiaries | Reportable Legal Entities    
Financing activities    
Proceeds from term and bridge loans   (6.7)
Repayments of debt (8.9)  
Term Loan | Non-Guarantor Subsidiaries | Reportable Legal Entities    
Financing activities    
Proceeds from term and bridge loans   0.0
Repayments of debt 0.0  
Term Loan | Signet Jewelers Limited | Reportable Legal Entities    
Financing activities    
Proceeds from term and bridge loans   0.0
Repayments of debt 0.0  
Term Loan | Signet UK Finance plc | Reportable Legal Entities    
Financing activities    
Proceeds from term and bridge loans   $ 0.0
Repayments of debt $ 0.0