FORM 10-Q |
x | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
for the quarterly period ended May 5, 2018 or | |
¨ | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
SIGNET JEWELERS LIMITED (Exact name of Registrant as specified in its charter) |
Bermuda | Not Applicable | |
(State or other jurisdiction of incorporation) | (I.R.S. Employer Identification No.) |
PAGE | ||||||
PART I | FINANCIAL INFORMATION | |||||
ITEM 1. | Financial Statements (Unaudited) | |||||
Condensed Consolidated Income Statements | ||||||
Condensed Consolidated Statements of Comprehensive Income (Loss) | ||||||
Condensed Consolidated Balance Sheets | ||||||
Condensed Consolidated Statements of Cash Flows | ||||||
Condensed Consolidated Statement of Shareholders’ Equity | ||||||
Notes to the Condensed Consolidated Financial Statements | ||||||
ITEM 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |||||
ITEM 3. | Quantitative and Qualitative Disclosures about Market Risk | |||||
ITEM 4. | Controls and Procedures | |||||
PART II | OTHER INFORMATION | |||||
ITEM 1. | Legal Proceedings | |||||
ITEM 1A. | Risk Factors | |||||
ITEM 2. | Unregistered Sales of Equity and Securities and Use of Proceeds | |||||
ITEM 6. | Exhibits | |||||
13 weeks ended | ||||||||||
(in millions, except per share amounts) | May 5, 2018 | April 29, 2017 | Notes | |||||||
Sales | $ | 1,480.6 | $ | 1,403.4 | 6 | |||||
Cost of sales | (995.8 | ) | (912.2 | ) | ||||||
Gross margin | 484.8 | 491.2 | ||||||||
Selling, general and administrative expenses | (482.8 | ) | (452.8 | ) | ||||||
Credit transaction, net | (143.1 | ) | — | 4 | ||||||
Restructuring charges | (6.5 | ) | — | 7 | ||||||
Goodwill and intangible impairments | (448.7 | ) | — | 15 | ||||||
Other operating income, net | 22.1 | 76.9 | ||||||||
Operating (loss) income | (574.2 | ) | 115.3 | 6 | ||||||
Interest expense, net | (8.9 | ) | (12.6 | ) | ||||||
Other non-operating income | 0.6 | — | ||||||||
(Loss) income before income taxes | (582.5 | ) | 102.7 | |||||||
Income taxes | 85.9 | (24.2 | ) | 12 | ||||||
Net (loss) income | $ | (496.6 | ) | $ | 78.5 | |||||
Dividends on redeemable convertible preferred shares | (8.2 | ) | (8.2 | ) | 9 | |||||
Net (loss) income attributable to common shareholders | $ | (504.8 | ) | $ | 70.3 | |||||
(Loss) earnings per common share: | ||||||||||
Basic | $ | (8.48 | ) | $ | 1.03 | 10 | ||||
Diluted | $ | (8.48 | ) | $ | 1.03 | 10 | ||||
Weighted average common shares outstanding: | ||||||||||
Basic | 59.5 | 68.1 | 10 | |||||||
Diluted | 59.5 | 68.2 | 10 | |||||||
Dividends declared per common share | $ | 0.37 | $ | 0.31 | 9 |
13 weeks ended | ||||||||||||||||||||||||||
May 5, 2018 | April 29, 2017 | |||||||||||||||||||||||||
(in millions) | Pre-tax amount | Tax (expense) benefit | After-tax amount | Pre-tax amount | Tax (expense) benefit | After-tax amount | ||||||||||||||||||||
Net income | $ | (496.6 | ) | $ | 78.5 | |||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||
Foreign currency translation adjustments | $ | (21.7 | ) | $ | — | (21.7 | ) | $ | 0.5 | $ | — | 0.5 | ||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||
Unrealized (loss) gain (1) | (0.2 | ) | — | (0.2 | ) | 0.3 | (0.1 | ) | 0.2 | |||||||||||||||||
Impact from adoption of new accounting pronouncements (2) | (1.1 | ) | 0.3 | (0.8 | ) | — | — | — | ||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||||
Unrealized gain | 1.9 | (0.4 | ) | 1.5 | 4.5 | (1.8 | ) | 2.7 | ||||||||||||||||||
Reclassification adjustment for (gains) losses to net income | (0.5 | ) | 0.2 | (0.3 | ) | (1.9 | ) | 0.5 | (1.4 | ) | ||||||||||||||||
Pension plan: | ||||||||||||||||||||||||||
Reclassification adjustment to net income for amortization of actuarial losses | 0.3 | — | 0.3 | 0.7 | (0.1 | ) | 0.6 | |||||||||||||||||||
Reclassification adjustment to net income for amortization of net prior service credits | (0.1 | ) | — | (0.1 | ) | (0.4 | ) | 0.1 | (0.3 | ) | ||||||||||||||||
Total other comprehensive income (loss) | $ | (21.4 | ) | $ | 0.1 | $ | (21.3 | ) | $ | 3.7 | $ | (1.4 | ) | $ | 2.3 | |||||||||||
Total comprehensive income | $ | (517.9 | ) | $ | 80.8 |
(1) | During the 13 weeks ended May 5, 2018, amount represents unrealized losses related to the Company’s available-for-sale debt securities. During the 13 weeks ended April 29, 2017, amount represents unrealized gains related to the Company’s available-for-sale debt and equity securities. |
(2) | 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. |
(in millions, except par value per share amount) | May 5, 2018 | February 3, 2018 | April 29, 2017 | Notes | |||||||||
Assets | |||||||||||||
Current assets: | |||||||||||||
Cash and cash equivalents | $ | 153.9 | $ | 225.1 | $ | 99.7 | |||||||
Accounts receivable, held for sale | 484.6 | — | — | 4 | |||||||||
Accounts receivable, net | 6.8 | 692.5 | 1,726.3 | 13 | |||||||||
Other receivables | 83.6 | 87.2 | 88.6 | ||||||||||
Other current assets | 153.2 | 158.2 | 159.0 | ||||||||||
Income taxes | 55.2 | 2.6 | 1.8 | ||||||||||
Inventories | 2,429.0 | 2,280.5 | 2,432.4 | 14 | |||||||||
Total current assets | 3,366.3 | 3,446.1 | 4,507.8 | ||||||||||
Non-current assets: | |||||||||||||
Property, plant and equipment, net of accumulated depreciation of $1,227.3, $1,197.6 and $1,093.9, respectively | 847.2 | 877.9 | 829.8 | ||||||||||
Goodwill | 509.1 | 821.7 | 516.1 | 15 | |||||||||
Intangible assets, net | 343.2 | 481.5 | 411.9 | 15 | |||||||||
Other assets | 167.0 | 171.2 | 165.1 | ||||||||||
Deferred tax assets | 0.8 | 1.4 | 0.6 | ||||||||||
Retirement benefit asset | 39.3 | 39.8 | 33.9 | ||||||||||
Total assets | $ | 5,272.9 | $ | 5,839.6 | $ | 6,465.2 | |||||||
Liabilities and Shareholders’ equity | |||||||||||||
Current liabilities: | |||||||||||||
Loans and overdrafts | $ | 72.3 | $ | 44.0 | $ | 131.5 | 18 | ||||||
Accounts payable | 287.5 | 237.0 | 177.8 | ||||||||||
Accrued expenses and other current liabilities | 463.7 | 448.0 | 400.3 | ||||||||||
Deferred revenue | 284.9 | 288.6 | 272.1 | 3 | |||||||||
Income taxes | — | 19.6 | 34.2 | ||||||||||
Total current liabilities | 1,108.4 | 1,037.2 | 1,015.9 | ||||||||||
Non-current liabilities: | |||||||||||||
Long-term debt | 679.7 | 688.2 | 1,311.6 | 18 | |||||||||
Other liabilities | 236.5 | 239.6 | 206.2 | ||||||||||
Deferred revenue | 667.5 | 668.9 | 658.6 | 3 | |||||||||
Deferred tax liabilities | 74.2 | 92.3 | 117.2 | ||||||||||
Total liabilities | 2,766.3 | 2,726.2 | 3,309.5 | ||||||||||
Commitments and contingencies | 21 | ||||||||||||
Series A redeemable convertible preferred shares of $.01 par value: authorized 500 shares, 0.625 shares outstanding (February 3, 2018 and April 29, 2017: 0.625 shares outstanding) | 614.0 | 613.6 | 612.3 | 8 | |||||||||
Shareholders’ equity: | |||||||||||||
Common shares of $0.18 par value: authorized 500 shares, 59.2 shares outstanding (February 3, 2018: 60.5 outstanding; April 29, 2017: 68.4 outstanding) | 15.7 | 15.7 | 15.7 | ||||||||||
Additional paid-in capital | 281.4 | 290.2 | 278.4 | ||||||||||
Other reserves | 0.4 | 0.4 | 0.4 | ||||||||||
Treasury shares at cost: 28.0 shares (February 3, 2018: 26.7 shares; April 29, 2017: 18.8 shares) | (1,992.2 | ) | (1,942.1 | ) | (1,488.6 | ) | 9 | ||||||
Retained earnings | 3,869.2 | 4,396.2 | 4,042.9 | ||||||||||
Accumulated other comprehensive loss | (281.9 | ) | (260.6 | ) | (305.4 | ) | 11 | ||||||
Total shareholders’ equity | 1,892.6 | 2,499.8 | 2,543.4 | ||||||||||
Total liabilities, redeemable convertible preferred shares and shareholders’ equity | $ | 5,272.9 | $ | 5,839.6 | $ | 6,465.2 |
13 weeks ended | |||||||
(in millions) | May 5, 2018 | April 29, 2017 | |||||
Cash flows from operating activities | |||||||
Net (loss) income | $ | (496.6 | ) | $ | 78.5 | ||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 49.8 | 50.0 | |||||
Amortization of unfavorable leases and contracts | (2.0 | ) | (4.6 | ) | |||
Pension benefit | (0.3 | ) | — | ||||
Share-based compensation | 1.8 | 2.7 | |||||
Deferred taxation | (18.8 | ) | 15.8 | ||||
Credit transaction, net | 141.0 | — | |||||
Goodwill and intangible impairments | 448.7 | — | |||||
Amortization of debt discount and issuance costs | 0.4 | 0.6 | |||||
Other non-cash movements | (0.1 | ) | 1.3 | ||||
Changes in operating assets and liabilities: | |||||||
Decrease in accounts receivable held for investment | 40.4 | 132.0 | |||||
Decrease in accounts receivable held for sale | 19.5 | — | |||||
Decrease (increase) in other assets and other receivables | 10.8 | (14.6 | ) | ||||
(Increase) decrease in inventories | (162.4 | ) | 17.7 | ||||
Increase (decrease) in accounts payable | 55.7 | (74.0 | ) | ||||
Increase (decrease) in accrued expenses and other liabilities | 15.3 | (77.7 | ) | ||||
Decrease in deferred revenue | (4.3 | ) | (4.9 | ) | |||
Decrease in income taxes payable | (70.3 | ) | (65.2 | ) | |||
Pension plan contributions | (0.7 | ) | (0.8 | ) | |||
Net cash provided by operating activities | 27.9 | 56.8 | |||||
Investing activities | |||||||
Purchase of property, plant and equipment | (26.1 | ) | (56.2 | ) | |||
Purchase of available-for-sale securities | (0.4 | ) | (0.7 | ) | |||
Proceeds from sale of available-for-sale securities | 1.1 | 0.3 | |||||
Net cash used in investing activities | (25.4 | ) | (56.6 | ) | |||
Financing activities | |||||||
Dividends paid on common shares | (18.8 | ) | (17.8 | ) | |||
Dividends paid on redeemable convertible preferred shares | (7.8 | ) | (11.3 | ) | |||
Repurchase of common shares | (60.0 | ) | — | ||||
Repayments of term loans | (6.7 | ) | (4.5 | ) | |||
Proceeds from securitization facility | — | 666.5 | |||||
Repayments of securitization facility | — | (666.5 | ) | ||||
Proceeds from revolving credit facility | 40.0 | 128.0 | |||||
Repayments of revolving credit facility | — | (121.0 | ) | ||||
(Repayments of) proceeds from bank overdrafts | (13.9 | ) | 31.2 | ||||
Other financing activities | (2.1 | ) | (1.0 | ) | |||
Net cash (used in) provided by financing activities | (69.3 | ) | 3.6 | ||||
Cash and cash equivalents at beginning of period | 225.1 | 98.7 | |||||
(Decrease) increase in cash and cash equivalents | (66.8 | ) | 3.8 | ||||
Effect of exchange rate changes on cash and cash equivalents | (4.4 | ) | (2.8 | ) | |||
Cash and cash equivalents at end of period | $ | 153.9 | $ | 99.7 |
(in millions) | Common shares at par value | Additional paid-in capital | Other reserves | Treasury shares | Retained earnings | Accumulated other comprehensive loss | Total shareholders’ equity | ||||||||||||||||||||
Balance at February 3, 2018 | $ | 15.7 | $ | 290.2 | $ | 0.4 | $ | (1,942.1 | ) | $ | 4,396.2 | $ | (260.6 | ) | $ | 2,499.8 | |||||||||||
Impact from adoption of new accounting pronouncements (1) | — | — | — | — | 0.8 | (0.8 | ) | — | |||||||||||||||||||
Net loss | — | — | — | — | (496.6 | ) | — | (496.6 | ) | ||||||||||||||||||
Other comprehensive income | — | — | — | — | — | (20.5 | ) | (20.5 | ) | ||||||||||||||||||
Dividends on common shares | — | — | — | — | (21.8 | ) | — | (21.8 | ) | ||||||||||||||||||
Dividends on redeemable convertible preferred shares | — | — | — | — | (8.2 | ) | — | (8.2 | ) | ||||||||||||||||||
Repurchase of common shares | — | — | — | (60.0 | ) | — | — | (60.0 | ) | ||||||||||||||||||
Net settlement of equity based awards | — | (10.6 | ) | — | 9.9 | (1.2 | ) | — | (1.9 | ) | |||||||||||||||||
Share-based compensation expense | — | 1.8 | — | — | — | — | 1.8 | ||||||||||||||||||||
Balance at May 5, 2018 | $ | 15.7 | $ | 281.4 | $ | 0.4 | $ | (1,992.2 | ) | $ | 3,869.2 | $ | (281.9 | ) | $ | 1,892.6 |
(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 2016-1. |
Standard | Description | |
ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, issued January 2016. | Impacts accounting for equity investments and financial liabilities under the fair value option, as well as, the presentation and disclosure requirements for financial instruments. Under the new guidance, equity investments will generally be measured at fair value, with subsequent changes in fair value recognized in net income. The adoption of ASU 2016-01 did not have a material impact on the Company’s financial position or results of operations. See immaterial presentation changes on the condensed consolidated balance sheet and income statements and adoption adjustment within Note 11. | |
ASU No. 2016-04, Liabilities - Extinguishments of Liabilities (Subtopic 405-20), issued March 2016. | Addresses diversity in practice related to the derecognition of a prepaid stored-value product liability. Liabilities related to the sale of prepaid stored-value products within the scope of this update are financial liabilities. The adoption of ASU 2016-04 did not have a material impact on the Company’s financial position or results of operations. | |
ASU No. 2017-04, Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment, issued January 2017. | Requires a single-step quantitative test to identify and measure goodwill impairment based on the excess of a reporting unit's carrying amount over its fair value. A qualitative assessment may still be completed first for an entity to determine if a quantitative impairment test is necessary. ASU No. 2017-04 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019. Signet early adopted this guidance in the first quarter of Fiscal 2019. The adoption of ASU 2017-04 did not have a material impact on the Company’s financial position or results of operations. |
Standard | Description | |
ASU No. 2017-07, Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, issued March 2017. | Requires entities to present the service cost component of the net periodic pension cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. Entities will present the other components of net benefit cost separately from the service cost component and outside of operating profit within the income statement. In addition, only the service cost component will be eligible for capitalization in assets. The adoption of ASU 2017-07 did not have a material impact on the Company’s financial position or results of operations. See immaterial presentation changes on the condensed consolidated income statements. |
Standard | Description | |
ASU No. 2016-02, Leases (Topic 842), issued February 2016. | Requires the recognition of a right-of-use asset and a corresponding lease liability on the balance sheet for long-term lease agreements. The lease liability will be equal to the present value of all reasonably certain lease payments. The right-of-use asset will be based on the liability, subject to adjustment for initial direct costs. Lease agreements that are 12 months or less are permitted to be excluded from the balance sheet. In general, leases will be amortized on a straight-line basis with the exception of finance lease agreements. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. Signet will adopt this guidance in the first quarter of our fiscal year ending February 1, 2020. Signet continues to evaluate available transition methodologies and assess the impact that adopting this guidance will have on the Company’s financial position or results of operations. | |
ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, issued June 2016. | Requires entities to measure and recognize expected credit losses for financial assets measured at amortized cost basis. The estimate of expected credit losses should consider historical information, current information, and reasonable and supportable forecasts of expected losses over the remaining contractual life that affect collectability. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019, with early adoption permitted. | |
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 ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. |
13 weeks ended May 5, 2018 | 13 weeks ended April 29, 2017 | ||||||||||||||||||||||||||||||
(in millions) | North America | International | Other | Consolidated | North America | International | Other | Consolidated | |||||||||||||||||||||||
Sales by product: | |||||||||||||||||||||||||||||||
Bridal | $ | 617.9 | $ | 55.6 | $ | — | $ | 673.5 | $ | 562.9 | $ | 53.1 | $ | — | $ | 616.0 | |||||||||||||||
Fashion | 461.1 | 25.9 | — | 487.0 | 450.9 | 25.8 | — | 476.7 | |||||||||||||||||||||||
Watches | 52.2 | 39.1 | — | 91.3 | 51.5 | 36.5 | — | 88.0 | |||||||||||||||||||||||
Other(1) | 216.6 | 8.1 | 4.1 | 228.8 | 209.1 | 7.1 | 6.5 | 222.7 | |||||||||||||||||||||||
Total sales | $ | 1,347.8 | $ | 128.7 | $ | 4.1 | $ | 1,480.6 | $ | 1,274.4 | $ | 122.5 | $ | 6.5 | $ | 1,403.4 |
(1) | Other revenue primarily includes gift and other miscellaneous jewelery sales, repairs, warranty and other miscellaneous non-jewelry sales. |
13 weeks ended May 5, 2018 | 13 weeks ended April 29, 2017 | ||||||||||||||||||||||||||||||
(in millions) | North America | International | Other | Consolidated | North America | International | Other | Consolidated | |||||||||||||||||||||||
Sales by channel: | |||||||||||||||||||||||||||||||
Store | $ | 1,213.7 | $ | 116.3 | $ | 4.1 | $ | 1,334.1 | $ | 1,203.3 | $ | 112.6 | $ | 6.5 | $ | 1,322.4 | |||||||||||||||
E-commerce(1) | 134.1 | 12.4 | — | 146.5 | 71.1 | 9.9 | — | 81.0 | |||||||||||||||||||||||
Total sales | $ | 1,347.8 | $ | 128.7 | $ | 4.1 | $ | 1,480.6 | $ | 1,274.4 | $ | 122.5 | $ | 6.5 | $ | 1,403.4 |
(1) | North America includes $53.3 million in the 13 weeks ended May 5, 2018 from James Allen which was acquired during the third quarter of Fiscal 2018. See Note 5 for additional information regarding the acquisition. |
(in millions) | May 5, 2018 | February 3, 2018 | April 29, 2017 | ||||||||
Deferred ESP selling costs | |||||||||||
Other current assets | $ | 30.6 | $ | 30.9 | $ | 29.6 | |||||
Other assets | 89.2 | 89.5 | 86.7 | ||||||||
Total deferred ESP selling costs | $ | 119.8 | $ | 120.4 | $ | 116.3 |
(in millions) | May 5, 2018 | February 3, 2018 | April 29, 2017 | ||||||||
ESP deferred revenue | $ | 913.5 | $ | 916.1 | $ | 903.7 | |||||
Voucher promotions and other | 38.9 | 41.4 | 27.0 | ||||||||
Total deferred revenue | $ | 952.4 | $ | 957.5 | $ | 930.7 | |||||
Disclosed as: | |||||||||||
Current liabilities | $ | 284.9 | $ | 288.6 | $ | 272.1 | |||||
Non-current liabilities | 667.5 | 668.9 | 658.6 | ||||||||
Total deferred revenue | $ | 952.4 | $ | 957.5 | $ | 930.7 |
13 weeks ended | ||||||||
(in millions) | May 5, 2018 | April 29, 2017 | ||||||
ESP deferred revenue, beginning of period | $ | 916.1 | $ | 905.6 | ||||
Plans sold(1) | 96.0 | 96.6 | ||||||
Revenue recognized | (98.6 | ) | (98.5 | ) | ||||
ESP deferred revenue, end of period | $ | 913.5 | $ | 903.7 |
(1) | Includes impact of foreign exchange translation. |
(in millions) | Preliminary amounts | ||
Cash and cash equivalents | $ | 47.3 | |
Inventories | 12.1 | ||
Other current assets | 9.7 | ||
Property, plant and equipment | 3.5 | ||
Intangible assets: | |||
Trade names | 70.6 | ||
Technology-related | 4.2 | ||
Current liabilities | (42.4 | ) | |
Deferred tax liabilities | (25.1 | ) | |
Fair value of net assets acquired | 79.9 | ||
Goodwill(1) | 299.1 | ||
Total consideration transferred | $ | 379.0 |
(1) | The amount of goodwill generated will be adjusted for any additional assets or liabilities identified by the Company or for any adjustments to the preliminary fair values identified for the assets acquired and liabilities assumed in the R2Net acquisition reflected above. |
13 weeks ended | ||||||||
(in millions) | May 5, 2018 | April 29, 2017 | ||||||
Sales: | ||||||||
North America segment | $ | 1,347.8 | $ | 1,274.4 | ||||
International segment | 128.7 | 122.5 | ||||||
Other | 4.1 | 6.5 | ||||||
Total sales | $ | 1,480.6 | $ | 1,403.4 | ||||
Operating (loss) income: | ||||||||
North America segment | $ | (537.3 | ) | $ | 134.8 | |||
International segment | (7.6 | ) | (2.5 | ) | ||||
Other | (29.3 | ) | (17.0 | ) | ||||
Total operating (loss) income | $ | (574.2 | ) | $ | 115.3 |
(in millions) | May 5, 2018 | February 3, 2018 | April 29, 2017 | ||||||||
Total assets: | |||||||||||
North America segment | $ | 4,722.3 | $ | 5,309.0 | $ | 5,961.8 | |||||
International segment | 401.7 | 420.3 | 394.3 | ||||||||
Other | 148.9 | 110.3 | 109.1 | ||||||||
Total assets | $ | 5,272.9 | $ | 5,839.6 | $ | 6,465.2 |
(in millions, except conversion rate and conversion price) | May 5, 2018 | February 3, 2018 | April 29, 2017 | ||||||||
Conversion rate | 10.9409 | 10.9409 | 10.7707 | ||||||||
Conversion price | $ | 91.4002 | $ | 91.4002 | $ | 92.8445 | |||||
Potential impact of preferred shares if-converted to common shares | 6.8 | 6.8 | 6.7 | ||||||||
Liquidation preference | $ | 632.8 | $ | 632.8 | $ | 632.8 |
13 weeks ended May 5, 2018 | 13 weeks ended April 29, 2017 | ||||||||||||||||||||||||
(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 | n/a | n/a | n/a | |||||||||||||||
2016 Program(2) | $ | 1,375.0 | 1.3 | $ | 50.6 | $ | 39.76 | — | $ | — | $ | — | |||||||||||||
Total | 1.5 | $ | 60.0 | $ | 39.62 | — | $ | — | $ | — |
(1) | The 2017 Program had $590.6 million remaining as of May 5, 2018. |
(2) | The 2016 Program was completed in March 2018. |
n/a | Not applicable. |
Fiscal 2019 | Fiscal 2018 | ||||||||||||||
(in millions, except per share amounts) | Cash dividend per share | Total dividends | Cash dividend per share | Total dividends | |||||||||||
First quarter(1) | $ | 0.37 | $ | 21.8 | $ | 0.31 | $ | 21.3 |
(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 5, 2018 and April 29, 2017, $21.8 million and $21.3 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 2019 and Fiscal 2018, respectively. |
Fiscal 2019 | Fiscal 2018 | ||||||
(in millions) | Total cash dividends | Total cash dividends | |||||
First quarter (1) | $ | 7.8 | $ | 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 5, 2018 and April 29, 2017, $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 2019 and Fiscal 2018, respectively. |
13 weeks ended | ||||||||
(in millions, except per share amounts) | May 5, 2018 | April 29, 2017 | ||||||
Numerator: | ||||||||
Net (loss) income attributable to common shareholders | $ | (504.8 | ) | $ | 70.3 | |||
Denominator: | ||||||||
Weighted average common shares outstanding | 59.5 | 68.1 | ||||||
EPS – basic | $ | (8.48 | ) | $ | 1.03 |
13 weeks ended | ||||||||
(in millions, except per share amounts) | May 5, 2018 | April 29, 2017 | ||||||
Numerator: | ||||||||
Net (loss) income attributable to common shareholders | $ | (504.8 | ) | $ | 70.3 | |||
Add: Dividends on preferred shares | — | — | ||||||
Numerator for diluted EPS | $ | (504.8 | ) | $ | 70.3 | |||
Denominator: | ||||||||
Weighted average common shares outstanding | 59.5 | 68.1 | ||||||
Plus: Dilutive effect of share awards | — | 0.1 | ||||||
Diluted weighted average common shares outstanding | 59.5 | 68.2 | ||||||
EPS – diluted | $ | (8.48 | ) | $ | 1.03 |
(in millions) | May 5, 2018 | April 29, 2017 | |||
Share awards | 0.5 | 0.3 | |||
Potential impact of preferred shares | 6.8 | 6.7 | |||
Total anti-dilutive shares | 7.3 | 7.0 |
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 3, 2018 | $ | (212.5 | ) | $ | (0.1 | ) | $ | 0.7 | $ | (51.1 | ) | $ | 2.4 | $ | (260.6 | ) | |||||||
Other comprehensive income (“OCI”) before reclassifications | (21.7 | ) | (0.2 | ) | 1.5 | — | — | (20.4 | ) | ||||||||||||||
Amounts reclassified from AOCI to net income | — | — | (0.3 | ) | 0.3 | (0.1 | ) | (0.1 | ) | ||||||||||||||
Impact from adoption of new accounting pronouncements (1) | — | (0.8 | ) | — | — | — | (0.8 | ) | |||||||||||||||
Net current period OCI | (21.7 | ) | (1.0 | ) | 1.2 | 0.3 | (0.1 | ) | (21.3 | ) | |||||||||||||
Balance at May 5, 2018 | $ | (234.2 | ) | $ | (1.1 | ) | $ | 1.9 | $ | (50.8 | ) | $ | 2.3 | $ | (281.9 | ) |
(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. |
Amounts reclassified from AOCI | |||||||||||
13 weeks ended | |||||||||||
(in millions) | May 5, 2018 | April 29, 2017 | Income statement caption | ||||||||
(Gains) losses on cash flow hedges: | |||||||||||
Foreign currency contracts | $ | 0.3 | $ | (1.0 | ) | Cost of sales (see Note 16) | |||||
Interest rate swaps | (0.3 | ) | 0.3 | Interest expense, net (see Note 16) | |||||||
Commodity contracts | (0.5 | ) | (1.2 | ) | Cost of sales (see Note 16) | ||||||
Total before income tax | (0.5 | ) | (1.9 | ) | |||||||
Income taxes | 0.2 | 0.5 | |||||||||
Net of tax | (0.3 | ) | (1.4 | ) | |||||||
Defined benefit pension plan items: | |||||||||||
Amortization of unrecognized actuarial losses | 0.3 | 0.7 | Other non-operating income | ||||||||
Amortization of unrecognized net prior service credits | (0.1 | ) | (0.4 | ) | Other non-operating income | ||||||
Total before income tax | 0.2 | 0.3 | |||||||||
Income taxes | — | — | |||||||||
Net of tax | 0.2 | 0.3 | |||||||||
Total reclassifications, net of tax | $ | (0.1 | ) | $ | (1.1 | ) |
13 weeks ended | |||||
May 5, 2018 | April 29, 2017 | ||||
Effective tax rate | 28.3 | % | 23.0 | % | |
Discrete items recognized | (13.5 | )% | 0.6 | % | |
Effective tax rate recognized in income statement | 14.8 | % | 23.6 | % |
(in millions) | May 5, 2018 | February 3, 2018 | April 29, 2017 | ||||||||
Accounts receivable by portfolio segment, net: | |||||||||||
Legacy Sterling Jewelers customer in-house finance receivables | $ | — | $ | 649.4 | $ | 1,683.8 | |||||
Legacy Zale customer in-house finance receivables | $ | — | 33.5 | 32.8 | |||||||
North America customer in-house finance receivables | $ | — | $ | 682.9 | $ | 1,716.6 | |||||
Other accounts receivable | 6.8 | 9.6 | 9.7 | ||||||||
Total accounts receivable, net | $ | 6.8 | $ | 692.5 | $ | 1,726.3 | |||||
Accounts receivable, held for sale | $ | 484.6 | $ | — | $ | — |
13 weeks ended | |||||||
(in millions) | May 5, 2018 | April 29, 2017 | |||||
Beginning balance | $ | (113.5 | ) | $ | (138.7 | ) | |
Charge-offs, net | 56.3 | 54.4 | |||||
Recoveries | 4.2 | 9.1 | |||||
Provision | (54.6 | ) | (51.7 | ) | |||
Reversal of allowance on receivables previously held for sale | 107.6 | — | |||||
Ending balance | $ | — | $ | (126.9 | ) | ||
Ending receivable balance evaluated for impairment | — | 1,810.7 | |||||
Sterling Jewelers customer in-house finance receivables, net | $ | — | $ | 1,683.8 |
February 3, 2018 | ||||||||
(in millions) | Gross | Valuation allowance | ||||||
Performing (accrual status): | ||||||||
0 - 120 days past due | $ | 703.4 | $ | (54.0 | ) | |||
121 or more days past due | 59.5 | (59.5 | ) | |||||
$ | 762.9 | $ | (113.5 | ) | ||||
Valuation allowance as a % of ending receivable balance | 14.9 | % |
April 29, 2017 | ||||||||
(in millions) | Gross | Valuation allowance | ||||||
Performing (accrual status): | ||||||||
Current, aged 0 – 30 days | $ | 1,445.9 | $ | (44.5 | ) | |||
Past due, aged 31 – 60 days | 251.9 | (8.3 | ) | |||||
Past due, aged 61 – 90 days | 40.9 | (2.1 | ) | |||||
Non Performing: | ||||||||
Past due, aged more than 90 days | 72.0 | (72.0 | ) | |||||
$ | 1,810.7 | $ | (126.9 | ) | ||||
Valuation allowance as a % of ending receivable balance | 7.0 | % |
(in millions) | May 5, 2018 | February 3, 2018 | April 29, 2017 | ||||||||
Raw materials | $ | 69.7 | $ | 72.0 | $ | 51.2 | |||||
Finished goods | 2,359.3 | 2,208.5 | 2,381.2 | ||||||||
Total inventories | $ | 2,429.0 | $ | 2,280.5 | $ | 2,432.4 |
(in millions) | North America | Other | Total | |||||||||
Balance at January 28, 2017 | $ | 514.0 | $ | 3.6 | $ | 517.6 | ||||||
Acquisitions | 301.7 | — | 301.7 | |||||||||
Impact of foreign exchange and other adjustments | 2.4 | — | 2.4 | |||||||||
Balance at February 3, 2018 | 818.1 | 3.6 | 821.7 | |||||||||
Impairment | (308.8 | ) | — | (308.8 | ) | |||||||
Impact of foreign exchange and other adjustments (1) | (3.8 | ) | — | (3.8 | ) | |||||||
Balance at May 5, 2018 | $ | 505.5 | $ | 3.6 | $ | 509.1 |
(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. Refer to Note 5 for additional details. |
May 5, 2018 | February 3, 2018 | April 29, 2017 | ||||||||||||||||||||||||||||||||||||||
(in millions) | Gross carrying amount | Accumulated amortization | Accumulated impairment loss | Net carrying amount | Gross carrying amount | Accumulated amortization | Net carrying amount | Gross carrying amount | Accumulated amortization | Net carrying amount | ||||||||||||||||||||||||||||||
Intangible assets, net: | ||||||||||||||||||||||||||||||||||||||||
Definite-lived intangible assets | 53.5 | (47.2 | ) | — | 6.3 | 49.8 | (46.7 | ) | 3.1 | 48.6 | (39.7 | ) | 8.9 | |||||||||||||||||||||||||||
Indefinite-lived intangible assets | 476.6 | — | (139.7 | ) | 336.9 | 478.4 | — | 478.4 | 403.0 | — | 403.0 | |||||||||||||||||||||||||||||
Total intangible assets, net | $ | 530.1 | $ | (47.2 | ) | $ | (139.7 | ) | $ | 343.2 | $ | 528.2 | $ | (46.7 | ) | $ | 481.5 | $ | 451.6 | $ | (39.7 | ) | $ | 411.9 | ||||||||||||||||
Intangible liabilities, net | $ | (114.1 | ) | $ | 87.1 | $ | — | $ | (27.0 | ) | $ | (114.5 | ) | $ | 85.2 | $ | (29.3 | ) | $ | (113.5 | ) | $ | 76.2 | $ | (37.3 | ) |
Fair value of derivative assets | |||||||||||||
(in millions) | Balance sheet location | May 5, 2018 | February 3, 2018 | April 29, 2017 | |||||||||
Derivatives designated as hedging instruments: | |||||||||||||
Foreign currency contracts | Other current assets | $ | 0.4 | $ | — | $ | 0.4 | ||||||
Commodity contracts | Other current assets | 0.1 | — | 2.0 | |||||||||
Interest rate swaps | Other assets | 2.3 | 2.2 | 0.8 | |||||||||
Total derivative assets | $ | 2.8 | $ | 2.2 | $ | 3.2 |
Fair value of derivative liabilities | |||||||||||||
(in millions) | Balance sheet location | May 5, 2018 | February 3, 2018 | April 29, 2017 | |||||||||
Derivatives designated as hedging instruments: | |||||||||||||
Foreign currency contracts | Other current liabilities | $ | (0.2 | ) | $ | (1.4 | ) | $ | (0.8 | ) | |||
Commodity contracts | Other current liabilities | — | (0.1 | ) | — | ||||||||
$ | (0.2 | ) | $ | (1.5 | ) | $ | (0.8 | ) | |||||
Derivatives not designated as hedging instruments: | |||||||||||||
Foreign currency contracts | Other current liabilities | (1.0 | ) | (0.9 | ) | (0.5 | ) | ||||||
Total derivative liabilities | $ | (1.2 | ) | $ | (2.4 | ) | $ | (1.3 | ) |
(in millions) | May 5, 2018 | February 3, 2018 | April 29, 2017 | ||||||||
Foreign currency contracts | $ | (0.8 | ) | $ | (2.4 | ) | $ | 2.1 | |||
Commodity contracts | 1.1 | 1.4 | 2.1 | ||||||||
Interest rate swaps | 2.3 | 2.2 | 0.8 | ||||||||
Gains recorded in AOCI | $ | 2.6 | $ | 1.2 | $ | 5.0 |
13 weeks ended | |||||||||
(in millions) | Income statement caption | May 5, 2018 | April 29, 2017 | ||||||
(Losses) gains recorded in AOCI, beginning of period | $ | (2.4 | ) | $ | 4.1 | ||||
Current period gains (losses) recognized in OCI | 1.3 | (1.0 | ) | ||||||
Losses (gains) reclassified from AOCI to net income | Cost of sales | 0.3 | (1.0 | ) | |||||
(Losses) gains recorded in AOCI, end of period | $ | (0.8 | ) | $ | 2.1 |
13 weeks ended | |||||||||
(in millions) | Income statement caption | May 5, 2018 | April 29, 2017 | ||||||
Gains (losses) recorded in AOCI, beginning of period | $ | 1.4 | $ | (2.1 | ) | ||||
Current period gains recognized in OCI | 0.2 | 5.4 | |||||||
Gains reclassified from AOCI to net income | Cost of sales | (0.5 | ) | (1.2 | ) | ||||
Gains recorded in AOCI, end of period | $ | 1.1 | $ | 2.1 |
13 weeks ended | |||||||||
(in millions) | Income statement caption | May 5, 2018 | April 29, 2017 | ||||||
Gains recorded in AOCI, beginning of period | $ | 2.2 | $ | 0.4 | |||||
Current period gains recognized in OCI | 0.4 | 0.1 | |||||||
(Gains) losses reclassified from AOCI to net income | Interest expense, net | (0.3 | ) | 0.3 | |||||
Gains recorded in AOCI, end of period | $ | 2.3 | $ | 0.8 |
13 weeks ended | |||||||||
(in millions) | Income statement caption | May 5, 2018 | April 29, 2017 | ||||||
Derivatives not designated as hedging instruments: | |||||||||
Foreign currency contracts | Other operating income, net | $ | (4.8 | ) | $ | (1.7 | ) |
May 5, 2018 | February 3, 2018 | April 29, 2017 | |||||||||||||||||||||||||||||||||
(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 | $ | 7.3 | $ | 7.3 | $ | — | $ | 7.5 | $ | 7.5 | $ | — | $ | 7.9 | $ | 7.9 | $ | — | |||||||||||||||||
Corporate equity securities | 4.3 | 4.3 | — | 4.5 | 4.5 | — | 4.0 | 4.0 | — | ||||||||||||||||||||||||||
Foreign currency contracts | 0.4 | — | 0.4 | — | — | — | 0.4 | — | 0.4 | ||||||||||||||||||||||||||
Commodity contracts | 0.1 | — | 0.1 | — | — | — | 2.0 | — | 2.0 | ||||||||||||||||||||||||||
Interest rate swaps | 2.3 | — | 2.3 | 2.2 | — | 2.2 | 0.8 | — | 0.8 | ||||||||||||||||||||||||||
US government agency securities | 4.7 | — | 4.7 | 5.1 | — | 5.1 | 4.9 | — | 4.9 | ||||||||||||||||||||||||||
Corporate bonds and notes | 10.6 | — | 10.6 | 10.8 | — | 10.8 | 11.1 | — | 11.1 | ||||||||||||||||||||||||||
Total assets | $ | 29.7 | $ | 11.6 | $ | 18.1 | $ | 30.1 | $ | 12.0 | $ | 18.1 | $ | 31.1 | $ | 11.9 | $ | 19.2 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | (1.2 | ) | $ | — | $ | (1.2 | ) | $ | (2.3 | ) | $ | — | $ | (2.3 | ) | $ | (1.3 | ) | $ | — | $ | (1.3 | ) | |||||||||||
Commodity contracts | — | — | — | (0.1 | ) | — | (0.1 | ) | — | — | — | ||||||||||||||||||||||||
Total liabilities | $ | (1.2 | ) | $ | — | $ | (1.2 | ) | $ | (2.4 | ) | $ | — | $ | (2.4 | ) | $ | (1.3 | ) | $ | — | $ | (1.3 | ) |
May 5, 2018 | February 3, 2018 | April 29, 2017 | |||||||||||||||||||||
(in millions) | Carrying Value | Fair Value | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||
Long-term debt: | |||||||||||||||||||||||
Senior notes (Level 2) | $ | 394.6 | $ | 382.3 | $ | 394.5 | $ | 396.3 | $ | 393.9 | $ | 396.5 | |||||||||||
Securitization facility (Level 2) | — | — | — | — | 599.7 | 600.0 | |||||||||||||||||
Term loan (Level 2) | 317.0 | 319.5 | 323.5 | 326.2 | 340.8 | 344.1 | |||||||||||||||||
Total | $ | 711.6 | $ | 701.8 | $ | 718.0 | $ | 722.5 | $ | 1,334.4 | $ | 1,340.6 |
(in millions) | May 5, 2018 | February 3, 2018 | April 29, 2017 | ||||||||
Debt: | |||||||||||
Senior unsecured notes due 2024, net of unamortized discount | $ | 398.9 | $ | 398.9 | $ | 398.8 | |||||
Securitization facility | — | — | 600.0 | ||||||||
Senior unsecured term loan | 319.5 | 326.2 | 344.1 | ||||||||
Revolving credit facility | 40.0 | — | 63.0 | ||||||||
Bank overdrafts | 0.3 | 14.2 | 45.4 | ||||||||
Total debt | $ | 758.7 | $ | 739.3 | $ | 1,451.3 | |||||
Less: Current portion of loans and overdrafts | (72.3 | ) | (44.0 | ) | (131.5 | ) | |||||
Less: Unamortized capitalized debt issuance fees | (6.7 | ) | (7.1 | ) | (8.2 | ) | |||||
Total long-term debt | $ | 679.7 | $ | 688.2 | $ | 1,311.6 |
13 weeks ended | ||||||||
(in millions) | May 5, 2018 | April 29, 2017 | ||||||
Warranty reserve, beginning of period | $ | 37.2 | $ | 40.0 | ||||
Warranty expense | 1.4 | 2.3 | ||||||
Utilized(1) | (3.0 | ) | (3.1 | ) | ||||
Warranty reserve, end of period | $ | 35.6 | $ | 39.2 |
(1) | Includes impact of foreign exchange translation. |
(in millions) | May 5, 2018 | February 3, 2018 | April 29, 2017 | ||||||||
Disclosed as: | |||||||||||
Current liabilities | $ | 11.0 | $ | 11.5 | $ | 12.6 | |||||
Non-current liabilities | 24.6 | 25.7 | 26.6 | ||||||||
Total warranty reserve | $ | 35.6 | $ | 37.2 | $ | 39.2 |
(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 (loss) income | (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 | |||||||||||||||||
(Loss) income before income taxes | (0.9 | ) | (0.2 | ) | (647.1 | ) | 65.7 | — | (582.5 | ) | |||||||||||||
Income taxes | — | — | 79.4 | 6.5 | — | 85.9 | |||||||||||||||||
Equity in income 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 | ) |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Sales | $ | — | $ | — | $ | 1,325.2 | $ | 78.2 | $ | — | $ | 1,403.4 | |||||||||||
Cost of sales | — | — | (895.4 | ) | (16.8 | ) | — | (912.2 | ) | ||||||||||||||
Gross margin | — | — | 429.8 | 61.4 | — | 491.2 | |||||||||||||||||
Selling, general and administrative expenses | (0.2 | ) | — | (421.5 | ) | (31.1 | ) | — | (452.8 | ) | |||||||||||||
Other operating income (loss), net | — | — | 77.2 | (0.3 | ) | — | 76.9 | ||||||||||||||||
Operating (loss) income | (0.2 | ) | — | 85.5 | 30.0 | — | 115.3 | ||||||||||||||||
Intra-entity interest income (expense) | — | 4.7 | (45.4 | ) | 40.7 | — | — | ||||||||||||||||
Interest expense, net | — | (4.9 | ) | (4.1 | ) | (3.6 | ) | — | (12.6 | ) | |||||||||||||
(Loss) income before income taxes | (0.2 | ) | (0.2 | ) | 36.0 | 67.1 | — | 102.7 | |||||||||||||||
Income taxes | — | — | (15.4 | ) | (8.8 | ) | — | (24.2 | ) | ||||||||||||||
Equity in income of subsidiaries | 78.7 | — | 8.7 | 22.3 | (109.7 | ) | — | ||||||||||||||||
Net income (loss) | $ | 78.5 | $ | (0.2 | ) | $ | 29.3 | $ | 80.6 | $ | (109.7 | ) | $ | 78.5 | |||||||||
Dividends on redeemable convertible preferred shares | (8.2 | ) | — | — | — | — | (8.2 | ) | |||||||||||||||
Net income (loss) attributable to common shareholders | $ | 70.3 | $ | (0.2 | ) | $ | 29.3 | $ | 80.6 | $ | (109.7 | ) | $ | 70.3 |
(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 loss(1) | (0.2 | ) | — | — | (0.2 | ) | 0.2 | (0.2 | ) | ||||||||||||||
Impact from adoption of new accounting pronouncements(2) | (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) | During the 13 weeks ended May 5, 2018, amount represents unrealized losses related to the Company’s available-for-sale debt securities. During the 13 weeks ended April 29, 2017, amount represents unrealized gains related to the Company’s available-for-sale debt and equity securities. |
(2) | 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. |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net income (loss) | $ | 78.5 | $ | (0.2 | ) | $ | 29.3 | $ | 80.6 | $ | (109.7 | ) | $ | 78.5 | |||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Foreign currency translation adjustments | 0.5 | — | 0.5 | — | (0.5 | ) | 0.5 | ||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||
Unrealized gain | 0.2 | — | — | 0.2 | (0.2 | ) | 0.2 | ||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||
Unrealized gain | 2.7 | — | 2.7 | — | (2.7 | ) | 2.7 | ||||||||||||||||
Reclassification adjustment for gains to net income | (1.4 | ) | — | (1.4 | ) | — | 1.4 | (1.4 | ) | ||||||||||||||
Pension plan: | |||||||||||||||||||||||
Reclassification adjustment to net income for amortization of actuarial losses | 0.6 | — | 0.6 | — | (0.6 | ) | 0.6 | ||||||||||||||||
Reclassification adjustment to net income for amortization of net prior service credits | (0.3 | ) | — | (0.3 | ) | — | 0.3 | (0.3 | ) | ||||||||||||||
Total other comprehensive (loss) income | 2.3 | — | 2.1 | 0.2 | (2.3 | ) | 2.3 | ||||||||||||||||
Total comprehensive income (loss) | $ | 80.8 | $ | (0.2 | ) | $ | 31.4 | $ | 80.8 | $ | (112.0 | ) | $ | 80.8 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Assets | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 1.3 | $ | 0.1 | $ | 102.5 | $ | 50.0 | $ | — | $ | 153.9 | |||||||||||
Accounts receivable, held for sale | — | — | 484.6 | — | — | 484.6 | |||||||||||||||||
Accounts receivable, net | — | — | 5.8 | 1.0 | — | 6.8 | |||||||||||||||||
Intra-entity receivables, net | — | 7.8 | — | 237.3 | (245.1 | ) | — | ||||||||||||||||
Other receivables | — | — | 58.4 | 25.2 | — | 83.6 | |||||||||||||||||
Other current assets | — | — | 150.2 | 3.0 | — | 153.2 | |||||||||||||||||
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 | — | — | 137.1 | 29.9 | — | 167.0 | |||||||||||||||||
Deferred tax assets | — | — | 0.8 | — | — | 0.8 | |||||||||||||||||
Retirement benefit asset | — | — | 39.3 | — | — | 39.3 | |||||||||||||||||
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, preferred shares and shareholders’ equity | $ | 2,573.1 | $ | 407.9 | $ | 5,265.2 | $ | 3,663.6 | $ | (6,636.9 | ) | $ | 5,272.9 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Assets | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 1.7 | $ | 0.1 | $ | 150.5 | $ | 72.8 | $ | — | $ | 225.1 | |||||||||||
Accounts receivable, net | — | — | 692.5 | — | — | 692.5 | |||||||||||||||||
Intra-entity receivables, net | — | 2.9 | — | 166.9 | (169.8 | ) | — | ||||||||||||||||
Other receivables | — | — | 62.0 | 25.2 | — | 87.2 | |||||||||||||||||
Other current assets | — | — | 154.4 | 3.8 | — | 158.2 | |||||||||||||||||
Income taxes | — | — | 2.6 | — | — | 2.6 | |||||||||||||||||
Inventories | — | — | 2,201.3 | 79.2 | — | 2,280.5 | |||||||||||||||||
Total current assets | 1.7 | 3.0 | 3,263.3 | 347.9 | (169.8 | ) | 3,446.1 | ||||||||||||||||
Non-current assets: | |||||||||||||||||||||||
Property, plant and equipment, net | — | — | 870.1 | 7.8 | — | 877.9 | |||||||||||||||||
Goodwill | — | — | 516.4 | 305.3 | — | 821.7 | |||||||||||||||||
Intangible assets, net | — | — | 410.9 | 70.6 | — | 481.5 | |||||||||||||||||
Investment in subsidiaries | 3,150.2 | — | 1,163.6 | 606.0 | (4,919.8 | ) | — | ||||||||||||||||
Intra-entity receivables, net | — | 400.0 | — | 2,859.0 | (3,259.0 | ) | — | ||||||||||||||||
Other assets | — | — | 140.1 | 31.1 | — | 171.2 | |||||||||||||||||
Deferred tax assets | — | — | 1.3 | 0.1 | — | 1.4 | |||||||||||||||||
Retirement benefit asset | — | — | 39.8 | — | — | 39.8 | |||||||||||||||||
Total assets | $ | 3,151.9 | $ | 403.0 | $ | 6,405.5 | $ | 4,227.8 | $ | (8,348.6 | ) | $ | 5,839.6 | ||||||||||
Liabilities and Shareholders’ equity | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Loans and overdrafts | $ | — | $ | (0.7 | ) | $ | 44.7 | $ | — | $ | — | $ | 44.0 | ||||||||||
Accounts payable | — | — | 202.2 | 34.8 | — | 237.0 | |||||||||||||||||
Intra-entity payables, net | 11.3 | — | 158.5 | — | (169.8 | ) | — | ||||||||||||||||
Accrued expenses and other current liabilities | 27.2 | 2.4 | 397.5 | 20.9 | — | 448.0 | |||||||||||||||||
Deferred revenue | — | — | 276.2 | 12.4 | — | 288.6 | |||||||||||||||||
Income taxes | — | (0.2 | ) | 36.7 | (16.9 | ) | — | 19.6 | |||||||||||||||
Total current liabilities | 38.5 | 1.5 | 1,115.8 | 51.2 | (169.8 | ) | 1,037.2 | ||||||||||||||||
Non-current liabilities: | |||||||||||||||||||||||
Long-term debt | — | 395.2 | 293.0 | — | — | 688.2 | |||||||||||||||||
Intra-entity payables, net | — | — | 3,259.0 | — | (3,259.0 | ) | — | ||||||||||||||||
Other liabilities | — | — | 233.0 | 6.6 | — | 239.6 | |||||||||||||||||
Deferred revenue | — | — | 668.9 | — | — | 668.9 | |||||||||||||||||
Deferred tax liabilities | — | — | 76.7 | 15.6 | — | 92.3 | |||||||||||||||||
Total liabilities | 38.5 | 396.7 | 5,646.4 | 73.4 | (3,428.8 | ) | 2,726.2 | ||||||||||||||||
Series A redeemable convertible preferred shares | 613.6 | — | — | — | — | 613.6 | |||||||||||||||||
Total shareholders’ equity | 2,499.8 | 6.3 | 759.1 | 4,154.4 | (4,919.8 | ) | 2,499.8 | ||||||||||||||||
Total liabilities, preferred shares and shareholders’ equity | $ | 3,151.9 | $ | 403.0 | $ | 6,405.5 | $ | 4,227.8 | $ | (8,348.6 | ) | $ | 5,839.6 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Assets | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 1.0 | $ | 0.1 | $ | 72.9 | $ | 25.7 | $ | — | $ | 99.7 | |||||||||||
Accounts receivable, net | — | — | 1,726.1 | 0.2 | — | 1,726.3 | |||||||||||||||||
Intra-entity receivables, net | — | — | 87.0 | — | (87.0 | ) | — | ||||||||||||||||
Other receivables | — | — | 62.3 | 26.3 | — | 88.6 | |||||||||||||||||
Other current assets | 0.1 | — | 154.0 | 4.9 | — | 159.0 | |||||||||||||||||
Income taxes | — | — | 1.8 | — | — | 1.8 | |||||||||||||||||
Inventories | — | — | 2,362.0 | 70.4 | — | 2,432.4 | |||||||||||||||||
Total current assets | 1.1 | 0.1 | 4,466.1 | 127.5 | (87.0 | ) | 4,507.8 | ||||||||||||||||
Non-current assets: | |||||||||||||||||||||||
Property, plant and equipment, net | — | — | 825.6 | 4.2 | — | 829.8 | |||||||||||||||||
Goodwill | — | — | 512.5 | 3.6 | — | 516.1 | |||||||||||||||||
Intangible assets, net | — | — | 411.9 | — | — | 411.9 | |||||||||||||||||
Investment in subsidiaries | 3,200.8 | — | 734.5 | 616.8 | (4,552.1 | ) | — | ||||||||||||||||
Intra-entity receivables, net | — | 407.8 | — | 3,637.5 | (4,045.3 | ) | — | ||||||||||||||||
Other assets | — | — | 134.1 | 31.0 | — | 165.1 | |||||||||||||||||
Deferred tax assets | — | — | 0.5 | 0.1 | — | 0.6 | |||||||||||||||||
Retirement benefit asset | — | — | 33.9 | — | — | 33.9 | |||||||||||||||||
Total assets | $ | 3,201.9 | $ | 407.9 | $ | 7,119.1 | $ | 4,420.7 | $ | (8,684.4 | ) | $ | 6,465.2 | ||||||||||
Liabilities and Shareholders’ equity | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Loans and overdrafts | $ | — | $ | (0.7 | ) | $ | 132.2 | $ | — | $ | — | $ | 131.5 | ||||||||||
Accounts payable | — | — | 170.6 | 7.2 | — | 177.8 | |||||||||||||||||
Intra-entity payables, net | 16.2 | — | — | 70.8 | (87.0 | ) | — | ||||||||||||||||
Accrued expenses and other current liabilities | 30.0 | 7.2 | 343.9 | 19.2 | — | 400.3 | |||||||||||||||||
Deferred revenue | — | — | 272.1 | — | — | 272.1 | |||||||||||||||||
Income taxes | — | — | 36.3 | (2.1 | ) | — | 34.2 | ||||||||||||||||
Total current liabilities | 46.2 | 6.5 | 955.1 | 95.1 | (87.0 | ) | 1,015.9 | ||||||||||||||||
Non-current liabilities: | |||||||||||||||||||||||
Long-term debt | — | 394.5 | 317.1 | 600.0 | — | 1,311.6 | |||||||||||||||||
Intra-entity payables, net | — | — | 4,045.3 | — | (4,045.3 | ) | — | ||||||||||||||||
Other liabilities | — | — | 200.9 | 5.3 | — | 206.2 | |||||||||||||||||
Deferred revenue | — | — | 658.6 | — | — | 658.6 | |||||||||||||||||
Deferred tax liabilities | — | — | 117.1 | 0.1 | — | 117.2 | |||||||||||||||||
Total liabilities | 46.2 | 401.0 | 6,294.1 | 700.5 | (4,132.3 | ) | 3,309.5 | ||||||||||||||||
Series A redeemable convertible preferred shares | 612.3 | — | — | — | — | 612.3 | |||||||||||||||||
Total shareholders’ equity (deficit) | 2,543.4 | 6.9 | 825.0 | 3,720.2 | (4,552.1 | ) | 2,543.4 | ||||||||||||||||
Total liabilities, preferred shares and shareholders’ equity | $ | 3,201.9 | $ | 407.9 | $ | 7,119.1 | $ | 4,420.7 | $ | (8,684.4 | ) | $ | 6,465.2 |
(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 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 | ) | |||||||||||||||
Repayments of term and bridge loans | — | — | (6.7 | ) | — | — | (6.7 | ) | |||||||||||||||
Proceeds from revolving credit facility | — | — | 40.0 | — | — | 40.0 | |||||||||||||||||
Repayments of bank overdrafts | — | — | (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 (used in) provided by 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 | |||||||||||||||||
(Decrease) increase 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 |
(in millions) | Signet Jewelers Limited | Signet UK Finance plc | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net cash provided by (used in) operating activities | $ | — | $ | 4.9 | $ | (20.9 | ) | $ | 72.8 | $ | — | $ | 56.8 | ||||||||||
Investing activities | |||||||||||||||||||||||
Purchase of property, plant and equipment | — | — | (56.2 | ) | — | — | (56.2 | ) | |||||||||||||||
Investment in subsidiaries | — | — | — | — | — | — | |||||||||||||||||
Purchase of available-for-sale securities | — | — | — | (0.7 | ) | — | (0.7 | ) | |||||||||||||||
Proceeds from available-for-sale securities | — | — | — | 0.3 | — | 0.3 | |||||||||||||||||
Net cash used in investing activities | — | — | (56.2 | ) | (0.4 | ) | — | (56.6 | ) | ||||||||||||||
Financing activities | |||||||||||||||||||||||
Dividends paid on common shares | (17.8 | ) | — | — | — | — | (17.8 | ) | |||||||||||||||
Dividends paid on redeemable convertible preferred shares | (11.3 | ) | — | — | — | — | (11.3 | ) | |||||||||||||||
Repayments of term loan | — | — | (4.5 | ) | — | — | (4.5 | ) | |||||||||||||||
Proceeds from securitization facility | — | — | — | 666.5 | — | 666.5 | |||||||||||||||||
Repayments of securitization facility | — | — | — | (666.5 | ) | — | (666.5 | ) | |||||||||||||||
Proceeds from revolving credit facility | — | — | 128.0 | — | — | 128.0 | |||||||||||||||||
Repayments of revolving credit facility | — | — | (121.0 | ) | — | — | (121.0 | ) | |||||||||||||||
Proceeds from bank overdrafts | — | — | 31.2 | — | — | 31.2 | |||||||||||||||||
Other financing activities | (1.0 | ) | — | — | — | — | (1.0 | ) | |||||||||||||||
Intra-entity activity, net | 29.4 | (4.9 | ) | 48.9 | (73.4 | ) | — | — | |||||||||||||||
Net cash (used in) provided by financing activities | (0.7 | ) | (4.9 | ) | 82.6 | (73.4 | ) | — | 3.6 | ||||||||||||||
Cash and cash equivalents at beginning of period | 1.7 | 0.1 | 70.3 | 26.6 | — | 98.7 | |||||||||||||||||
(Decrease) increase in cash and cash equivalents | (0.7 | ) | — | 5.5 | (1.0 | ) | — | 3.8 | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (2.9 | ) | 0.1 | — | (2.8 | ) | |||||||||||||||
Cash and cash equivalents at end of period | $ | 1.0 | $ | 0.1 | $ | 72.9 | $ | 25.7 | $ | — | $ | 99.7 |
• | The North America segment operated 2,886 locations in the US and 143 locations in Canada as of May 5, 2018. |
◦ | In the US, the segment primarily operates in malls and off-mall locations under the following banners: Kay (Kay Jewelers and Kay Outlet); Zales (Zales Jewelers and Zales Outlet); Jared (Jared The Galleria of Jewelry and Jared Vault); and a variety of mall-based regional banners. Additionally, in the US, the segment operates mall-based kiosks under the Piercing Pagoda banner and the JamesAllen.com website (“James Allen”), which was acquired in the R2Net acquisition. |
◦ | In Canada, the segment primarily operates under the Peoples banner (Peoples Jewellers), as well as the Mappins Jewellers regional banner. |
◦ | The North America segment is entirely comprised of the Sterling Jewelers and Zale divisions reported under the Company’s previous reportable segment structure. |
• | The International segment operated 499 stores in the United Kingdom, Republic of Ireland and Channel Islands as of May 5, 2018. The segment primarily operates in shopping malls and off-mall locations under the H.Samuel and Ernest Jones banners. The International segment is entirely comprised of the UK Jewelry division reported under the Company’s previous reportable segment structure. |
(in millions) | May 5, 2018 | February 3, 2018 | April 29, 2017 | ||||||||
Cash and cash equivalents | $ | 153.9 | $ | 225.1 | $ | 99.7 | |||||
Loans and overdrafts | (72.3 | ) | (44.0 | ) | (131.5 | ) | |||||
Long-term debt | (679.7 | ) | (688.2 | ) | (1,311.6 | ) | |||||
Net debt | $ | (598.1 | ) | $ | (507.1 | ) | $ | (1,343.4 | ) |
13 weeks ended | ||||||||
(in millions) | May 5, 2018 | April 29, 2017 | ||||||
Net cash provided by operating activities | $ | 27.9 | $ | 56.8 | ||||
Purchase of property, plant and equipment | (26.1 | ) | (56.2 | ) | ||||
Free cash flow | $ | 1.8 | $ | 0.6 |
3. | Earnings before interest, income taxes, depreciation and amortization (“EBITDA”) and Adjusted EBITDA |
13 weeks ended | ||||||||
(in millions) | May 5, 2018 | April 29, 2017 | ||||||
Net (loss) income | $ | (496.6 | ) | $ | 78.5 | |||
Income taxes | (85.9 | ) | 24.2 | |||||
Other non-operating income | (0.6 | ) | — | |||||
Interest expense, net | 8.9 | 12.6 | ||||||
Depreciation and amortization | 49.8 | 50.0 | ||||||
Amortization of unfavorable leases and contracts | (2.0 | ) | (4.6 | ) | ||||
EBITDA | $ | (526.4 | ) | $ | 160.7 | |||
Credit transaction, net | 143.1 | — | ||||||
Restructuring charges | 6.5 | — | ||||||
Goodwill and intangible impairments | 448.7 | — | ||||||
Adjusted EBITDA | $ | 71.9 | $ | 160.7 |
4. | Non-GAAP operating income |
13 weeks ended | ||||||||
(in millions) | May 5, 2018 | April 29, 2017 | ||||||
Operating (loss) income | $ | (574.2 | ) | $ | 115.3 | |||
Credit transaction, net | 143.1 | — | ||||||
Restructuring charges | 6.5 | — | ||||||
Goodwill and intangible impairments | 448.7 | — | ||||||
Non-GAAP operating income | $ | 24.1 | $ | 115.3 |
• | Same store sales: Down 0.1%. |
• | Total sales: $1,480.6 million, increased 5.5%. |
• | Operating (loss) income: $(574.2) million, down $689.5 million including the impact of a non-cash impairment charge related to goodwill and intangibles, loss recognized on held for sale non-prime receivables and restructuring charges. |
• | Diluted (loss) earnings per share: $(8.48), including the impact of a non-cash impairment charge related to goodwill and intangibles of ($6.44), loss recognized on held for sale non-prime receivables of ($2.05) and restructuring charges of ($0.09). |
• | Company continues to expect sale of non-prime receivables to close in second quarter of Fiscal 2019. |
(1) | Non-GAAP measure. |
Year to Date | ||||||||||||||
Fiscal 2019 | Fiscal 2018 | |||||||||||||
(in millions) | $ | % of sales | $ | % of sales | ||||||||||
Sales | $ | 1,480.6 | 100.0 | % | $ | 1,403.4 | 100.0 | % | ||||||
Cost of sales | (995.8 | ) | (67.3 | ) | (912.2 | ) | (65.0 | ) | ||||||
Gross margin | 484.8 | 32.7 | 491.2 | 35.0 | ||||||||||
Selling, general and administrative expenses | (482.8 | ) | (32.6 | ) | (452.8 | ) | (32.3 | ) | ||||||
Credit transaction, net | (143.1 | ) | (9.7 | ) | — | — | ||||||||
Restructuring charges | (6.5 | ) | (0.4 | ) | — | — | ||||||||
Goodwill and intangible impairments | (448.7 | ) | (30.3 | ) | — | — | ||||||||
Other operating income, net | 22.1 | 1.5 | 76.9 | 5.5 | ||||||||||
Operating (loss) income | (574.2 | ) | (38.8 | ) | 115.3 | 8.2 | ||||||||
Interest expense, net | (8.9 | ) | (0.5 | ) | (12.6 | ) | (0.9 | ) | ||||||
Other non-operating income | 0.6 | — | — | — | ||||||||||
(Loss) income before income taxes | (582.5 | ) | (39.3 | ) | 102.7 | 7.3 | ||||||||
Income taxes | 85.9 | 5.8 | (24.2 | ) | (1.7 | ) | ||||||||
Net (loss) income | $ | (496.6 | ) | (33.5 | )% | $ | 78.5 | 5.6 | % | |||||
Dividends on redeemable convertible preferred shares | (8.2 | ) | nm | (8.2 | ) | nm | ||||||||
Net (loss) income attributable to common shareholders | $ | (504.8 | ) | (34.1 | )% | $ | 70.3 | 5.0 | % |
nm | Not meaningful. |
Change from previous year | ||||||||||||||||||
Year to date Fiscal 2019 | Same store sales(1) | Non-same store sales, net | Total sales at constant exchange rate | Exchange translation impact | Total sales as reported | Total sales (in millions) | ||||||||||||
Kay | (1.9 | )% | 5.0 | % | 3.1 | % | — | % | 3.1 | % | $ | 583.2 | ||||||
Zales | 8.9 | % | (1.0 | )% | 7.9 | % | — | % | 7.9 | % | $ | 298.1 | ||||||
Jared | (7.8 | )% | 5.6 | % | (2.2 | )% | — | % | (2.2 | )% | $ | 267.5 | ||||||
Piercing Pagoda | 7.2 | % | (0.5 | )% | 6.7 | % | — | % | 6.7 | % | $ | 74.4 | ||||||
James Allen(2) | 29.4 | % | $ | 53.3 | ||||||||||||||
Peoples | 4.6 | % | (0.1 | )% | 4.5 | % | 4.4 | % | 8.9 | % | $ | 46.7 | ||||||
Regional banners | (11.2 | )% | (35.9 | )% | (47.1 | )% | 0.2 | % | (46.9 | )% | $ | 24.6 | ||||||
North America segment | 0.6 | % | 5.0 | % | 5.6 | % | 0.2 | % | 5.8 | % | $ | 1,347.8 | ||||||
H.Samuel | (5.4 | )% | (1.4 | )% | (6.8 | )% | 11.1 | % | 4.3 | % | $ | 63.2 | ||||||
Ernest Jones | (7.9 | )% | 2.6 | % | (5.3 | )% | 11.1 | % | 5.8 | % | $ | 65.5 | ||||||
International segment | (6.7 | )% | 0.6 | % | (6.1 | )% | 11.2 | % | 5.1 | % | $ | 128.7 | ||||||
Other(3) | $ | 4.1 | ||||||||||||||||
Signet | (0.1 | )% | 4.4 | % | 4.3 | % | 1.2 | % | 5.5 | % | $ | 1,480.6 |
(1) | The 53rd week in Fiscal 2018 has resulted in a shift in Fiscal 2019, as the fiscal year began a week later than the previous fiscal year. As such, same store sales for Fiscal 2019 are being calculated by aligning the weeks of the quarter to the same weeks in the prior year. Total reported sales continue to be calculated based on the reported fiscal periods. |
(2) | Same store sales presented for James Allen to provide comparative performance measure. |
(3) | Includes sales from Signet’s diamond sourcing initiative. |
Average Merchandise Transaction Value(1)(2) | Merchandise Transactions | ||||||||||||||||||
Average Value | Change from previous year | Change from previous year | |||||||||||||||||
Year to date | Fiscal 2019 | Fiscal 2018 | Fiscal 2019 | Fiscal 2018 | Fiscal 2019 | Fiscal 2018 | |||||||||||||
Kay | $ | 492 | $ | 464 | 6.7 | % | 2.7 | % | (6.7 | )% | (16.1 | )% | |||||||
Zales | $ | 491 | $ | 484 | 1.9 | % | 2.1 | % | 8.5 | % | (17.1 | )% | |||||||
Jared | $ | 653 | $ | 593 | 7.2 | % | 6.1 | % | (13.4 | )% | (16.2 | )% | |||||||
Piercing Pagoda | $ | 67 | $ | 62 | 6.3 | % | 6.9 | % | (1.0 | )% | (8.2 | )% | |||||||
James Allen(3) | $ | 3,709 | $ | 3,814 | (2.8 | )% | na | 33.4 | % | na | |||||||||
Peoples(4) | C$ | 455 | C$ | 454 | (0.9 | )% | 7.8 | % | 5.5 | % | (13.5 | )% | |||||||
Regional banners | $ | 490 | $ | 448 | 8.4 | % | 5.7 | % | (16.3 | )% | (25.6 | )% | |||||||
North America segment | $ | 378 | $ | 347 | 5.0 | % | 1.2 | % | (2.9 | )% | (14.1 | )% | |||||||
H.Samuel(5) | £ | 86 | £ | 83 | 3.6 | % | 9.2 | % | (7.6 | )% | (14.1 | )% | |||||||
Ernest Jones(5) | £ | 371 | £ | 347 | 6.0 | % | 16.7 | % | (11.3 | )% | (15.5 | )% | |||||||
International segment(5) | £ | 141 | £ | 136 | 2.9 | % | 12.4 | % | (8.3 | )% | (14.4 | )% |
(1) | Net merchandise sales within the North America segment include all merchandise product sales, net of discounts and returns. In addition, excluded from net merchandise sales are sales tax in the US, repair, extended service plan, insurance, employee and other miscellaneous sales. |
(2) | Net merchandise sales within the International segment include all merchandise product sales, including value added tax (“VAT”), net of discounts and returns. In addition, excluded from net merchandise sales are repairs, warranty, insurance, employee and other miscellaneous sales. As a result, the sum of the changes will not agree to change in same store sales. |
(3) | ATV presented for James Allen to provide comparative performance measure. |
(4) | Amounts for Peoples stores are denominated in Canadian dollars. |
(5) | Amounts for the International segment, including H.Samuel and Ernest Jones, are denominated in British pounds. |
na | Not applicable as James Allen was acquired as part of R2Net acquisition in September 2017. See Note 5 for additional information. |
Year to date | |||||||||||||
Fiscal 2019 | Fiscal 2018 | ||||||||||||
(in millions) | $ | % of segment sales | $ | % of segment sales | |||||||||
North America segment | $ | (537.3 | ) | (1) | (39.9 | )% | $ | 134.8 | 10.6 | % | |||
International segment | (7.6 | ) | (5.9 | )% | (2.5 | ) | (2.0 | )% | |||||
Other | (29.3 | ) | (2) | nm | (17.0 | ) | nm | ||||||
Operating (loss) income | $ | (574.2 | ) | (38.8 | )% | $ | 115.3 | 8.2 | % |
(1) | Fiscal 2019 includes $448.7 million related to the goodwill and intangible impairments recognized during the first quarter and $141.0 million of charges related to the definitive agreements to sell all eligible non-prime in-house accounts receivable. See Notes 15 and 4, respectively, of Item 1 for additional information. Operating income was also negatively impacted by the sale of the prime accounts receivable in the third quarter of Fiscal 2018, which results in less interest income earned from a smaller receivable portfolio. |
(2) | Fiscal 2019 includes restructuring charges of $6.5 million related to the “Signet Path to Brilliance” plan initiated in the current fiscal year and charges of $2.1 million related to credit transaction costs. See Note 4 and Note 7 of Item 1 for additional information. |
nm | Not meaningful. |
13 weeks ended | |||||||
(in millions) | May 5, 2018 | April 29, 2017 | |||||
Net cash provided by operating activities | $ | 27.9 | $ | 56.8 | |||
Net cash used in investing activities | (25.4 | ) | (56.6 | ) | |||
Net cash (used in) provided by financing activities | (69.3 | ) | 3.6 | ||||
(Decrease) increase in cash and cash equivalents | $ | (66.8 | ) | $ | 3.8 | ||
Cash and cash equivalents at beginning of period | $ | 225.1 | $ | 98.7 | |||
(Decrease) increase in cash and cash equivalents | (66.8 | ) | 3.8 | ||||
Effect of exchange rate changes on cash and cash equivalents | (4.4 | ) | (2.8 | ) | |||
Cash and cash equivalents at end of period | $ | 153.9 | $ | 99.7 |
• | Net loss was $496.6 million compared to net income of $78.5 million, a decrease of $575.1 million. |
• | Non-cash goodwill and intangible impairment charges of $448.7 million were recorded related to an interim impairment assessment performed during the 13 weeks ended May 5, 2018. |
• | Depreciation and amortization decreased $0.2 million to $49.8 million from $50.0 million in the prior year comparable period. |
• | Cash provided by accounts receivable totaled $59.9 million, including $40.4 million generated by receivables held for investment, including in-house finance receivables prior to reclassification to held for sale, and $19.5 million related to the in-house finance receivable portfolio subsequent to the reclassification to held for sale. This compares to $132.0 million of cash provided by a decrease in accounts receivable in the prior year comparable period. The changes in accounts receivable are primarily driven by the North America in-house credit program. |
13 weeks ended | |||||||
May 5, 2018 | April 29, 2017 | ||||||
Total North America sales (excluding James Allen)(1) (millions) | $ | 1,294.5 | $ | 1,274.4 | |||
Credit and lease purchase sales (millions) | $ | 643.1 | $ | 681.0 | |||
Credit and lease purchase sales as % of total North America sales(1)(2) | 49.7 | % | 53.4 | % |
(1) | Excludes James Allen sales totaling $53.3 million during the 13 weeks ended May 5, 2018 as in-house credit was not available to James Allen customers during the period. Additionally, see Note 5 of Item 1 for additional information regarding the acquisition of R2Net in September 2017. |
(2) | See Note 13 of Item 1 for additional information. |
13 weeks ended | |||||||
Credit portfolio impact: | May 5, 2018 | April 29, 2017 | |||||
Net bad debt expense (millions)(1) | $ | (50.4 | ) | $ | (42.6 | ) | |
Late charge income (millions) | $ | 10.3 | $ | 7.7 | |||
Interest income from in-house customer finance programs (millions)(2) | $ | 21.4 | $ | 73.9 | |||
$ | (18.7 | ) | $ | 39.0 |
(2) | Primary component of other operating income, net, on the condensed consolidated income statements. |
• | Cash used for inventory and inventory-related items was $162.4 million compared to cash provided of $17.7 million in the prior year comparable period. Total inventory as of May 5, 2018 was $2,429.0 million compared to the prior year comparable quarter balance of $2,432.4 million. Cash used for inventory increased by $180.1 million from prior year primarily due to investments in new merchandise related to bridal initiatives across banners. |
• | Cash provided by accounts payable was $55.7 million compared to a cash used of $74.0 million in the prior year comparable period primarily driven by timing of payments made in connection with inventory purchases. |
• | Cash provided by accrued expenses and other liabilities was $15.3 million compared to cash used of $77.7 million in the prior year comparable period primarily driven by the timing of payments associated with payroll-related items including incentive compensation and advertising. |
Store count by banner | February 3, 2018 | Openings | Closures | May 5, 2018 | |||||||
Kay | 1,247 | 8 | (7 | ) | 1,248 | ||||||
Zales | 704 | 1 | (5 | ) | 700 | ||||||
Peoples | 129 | 1 | (2 | ) | 128 | ||||||
Jared | 274 | — | (2 | ) | 272 | ||||||
Piercing Pagoda | 598 | — | (7 | ) | 591 | ||||||
Regional banners | 100 | — | (10 | ) | 90 | ||||||
North America segment(1) | 3,052 | 10 | (33 | ) | 3,029 | ||||||
H.Samuel | 301 | — | (4 | ) | 297 | ||||||
Ernest Jones | 203 | — | (1 | ) | 202 | ||||||
International segment(1) | 504 | — | (5 | ) | 499 | ||||||
Signet | 3,556 | 10 | (38 | ) | 3,528 |
(1) | The annual net change in selling square footage for Fiscal 2018 for the North America and International segments were (1.9%) and (0.4%), respectively. |
Year to date | Fiscal 2019 | Fiscal 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 | n/a | n/a | n/a | |||||||||||||||
2016 Program(2) | $ | 1,375.0 | 1.3 | $ | 50.6 | $ | 39.76 | — | $ | — | $ | — | |||||||||||||
Total | 1.5 | $ | 60.0 | $ | 39.62 | — | $ | — | $ | — |
(1) | The 2017 Program had $590.6 million remaining as of May 5, 2018. |
(2) | The 2016 Program was completed in March 2018. |
n/a | Not applicable as the 2017 Program was authorized by the Board of Directors in June 2017. |
Fiscal 2019 | Fiscal 2018 | ||||||||||||||
(in millions, except per share amounts) | Cash dividend per share | Total dividends | Cash dividend per share | Total dividends | |||||||||||
First quarter(1) | $ | 0.37 | $ | 21.8 | $ | 0.31 | $ | 21.3 |
(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 5, 2018 and April 29, 2017, $21.8 million and $21.3 million, respectively, has been recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheets reflecting the cash dividends declared on common shares for the first quarter of Fiscal 2019 and Fiscal 2018, respectively. |
Fiscal 2019 | Fiscal 2018 | ||||||
(in millions) | Total cash dividends | Total cash dividends | |||||
First quarter (1) | $ | 7.8 | $ | 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 5, 2018 and April 29, 2017, $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 2019 and Fiscal 2018. |
Period | Total number of shares purchased(1) | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs(2) | Maximum number (or approximate dollar value) of shares that may yet be purchased under the plans or programs | |||||||||
February 4, 2018 to March 3, 2018 | 15,622 | $ | 50.94 | — | $ | 650,586,636 | |||||||
March 4, 2018 to March 31, 2018 | 1,515,397 | $ | 39.62 | 1,514,399 | $ | 590,586,635 | |||||||
April 1, 2018 to May 5, 2018 | 23,233 | $ | 39.43 | — | $ | 590,586,635 | |||||||
Total | 1,554,252 | $ | 39.73 | 1,514,399 | $ | 590,586,635 |
(1) | Includes 39,853 shares delivered to Signet by employees to satisfy minimum tax withholding obligations due upon the vesting or payment of stock awards under share-based compensation programs. These are not repurchased in connection with any publicly announced share repurchase programs. |
(2) | In February 2016 and August 2016, the Board of Directors authorized the repurchase of Signet's common shares for a combined total of $1,375.0 million (the “2016 Program”). In June 2017, the Board of Directors authorized a new program to repurchase $600.0 million of Signet’s common shares (the “2017 Program”). The 2016 Program was completed in March 2018. The 2017 Program may be suspended or discontinued at any time without notice. |
Number | Description of Exhibits(1) | |
10.1* | ||
10.2 | ||
31.1* | ||
31.2* | ||
32.1* | ||
32.2* | ||
101.INS* | XBRL Instance Document. | |
101.SCH* | XBRL Taxonomy Extension Schema Document. | |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document. | |
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document. |
(1) | Signet hereby agrees to furnish to the U.S. Securities and Exchange Commission, upon request, a copy of each instrument that defines the rights of holders of long-term debt under which the total amount of securities authorized does not exceed 10% of the total assets of Signet and its subsidiaries on a consolidated basis that is not filed or incorporated by reference as an exhibit to our annual and quarterly reports. |
* | Filed herewith. |
Signet Jewelers Limited | ||||||
Date: | June 12, 2018 | By: | /s/ Michele L. Santana | |||
Name: | Michele L. Santana | |||||
Title: | Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) |
By: | /s/ Virginia C. Drosos | |
Name: | Virginia C. Drosos | |
Title: | Chief Executive Officer |
By: | /s/ Michele L. Santana | |
Name: | Michele L. Santana | |
Title: | Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) |
By: | /s/ Virginia C. Drosos | |
Name: | Virginia C. Drosos | |
Title: | Chief Executive Officer |
By: | /s/ Michele L. Santana | |
Name: | Michele L. Santana | |
Title: | Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
May 05, 2018 |
Jun. 06, 2018 |
|
Document And Entity Information [Abstract] | ||
Document type | 10-Q | |
Amendment flag | false | |
Document period end date | May 05, 2018 | |
Document fiscal year focus | 2019 | |
Document fiscal period focus | Q1 | |
Trading symbol | SIG | |
Entity registrant name | SIGNET JEWELERS LTD | |
Entity Central Index Key | 0000832988 | |
Current Fiscal Year End Date | --01-28 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares outstanding | 59,203,161 |
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions |
May 05, 2018 |
Feb. 03, 2018 |
Apr. 29, 2017 |
---|---|---|---|
Current assets: | |||
Cash and cash equivalents | $ 153.9 | $ 225.1 | $ 99.7 |
Accounts receivable, held for sale | 484.6 | 0.0 | 0.0 |
Accounts receivable, net | 6.8 | 692.5 | 1,726.3 |
Other receivables | 83.6 | 87.2 | 88.6 |
Other current assets | 153.2 | 158.2 | 159.0 |
Income taxes | 55.2 | 2.6 | 1.8 |
Inventories | 2,429.0 | 2,280.5 | 2,432.4 |
Total current assets | 3,366.3 | 3,446.1 | 4,507.8 |
Non-current assets: | |||
Property, plant and equipment, net of accumulated depreciation of $1,227.3, $1,197.6 and $1,093.9, respectively | 847.2 | 877.9 | 829.8 |
Goodwill | 509.1 | 821.7 | 516.1 |
Intangible assets, net | 343.2 | 481.5 | 411.9 |
Other assets | 167.0 | 171.2 | 165.1 |
Deferred tax assets | 0.8 | 1.4 | 0.6 |
Retirement benefit asset | 39.3 | 39.8 | 33.9 |
Total assets | 5,272.9 | 5,839.6 | 6,465.2 |
Current liabilities: | |||
Loans and overdrafts | 72.3 | 44.0 | 131.5 |
Accounts payable | 287.5 | 237.0 | 177.8 |
Accrued expenses and other current liabilities | 463.7 | 448.0 | 400.3 |
Deferred revenue | 284.9 | 288.6 | 272.1 |
Income taxes | 0.0 | 19.6 | 34.2 |
Total current liabilities | 1,108.4 | 1,037.2 | 1,015.9 |
Non-current liabilities: | |||
Long-term debt | 679.7 | 688.2 | 1,311.6 |
Other liabilities | 236.5 | 239.6 | 206.2 |
Deferred revenue | 667.5 | 668.9 | 658.6 |
Deferred tax liabilities | 74.2 | 92.3 | 117.2 |
Total liabilities | 2,766.3 | 2,726.2 | 3,309.5 |
Commitments and contingencies | |||
Shareholders’ equity: | |||
Common shares of $0.18 par value: authorized 500 shares, 59.2 shares outstanding (February 3, 2018: 60.5 outstanding; April 29, 2017: 68.4 outstanding) | 15.7 | 15.7 | 15.7 |
Additional paid-in capital | 281.4 | 290.2 | 278.4 |
Other reserves | 0.4 | 0.4 | 0.4 |
Treasury shares at cost: 28.0 shares (February 3, 2018: 26.7 shares; April 29, 2017: 18.8 shares) | (1,992.2) | (1,942.1) | (1,488.6) |
Retained earnings | 3,869.2 | 4,396.2 | 4,042.9 |
Accumulated other comprehensive loss | (281.9) | (260.6) | (305.4) |
Total shareholders’ equity | 1,892.6 | 2,499.8 | 2,543.4 |
Total liabilities, redeemable convertible preferred shares and shareholders’ equity | 5,272.9 | 5,839.6 | 6,465.2 |
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 3, 2018 and April 29, 2017: 0.625 shares outstanding) | $ 614.0 | $ 613.6 | $ 612.3 |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions |
May 05, 2018 |
Feb. 03, 2018 |
Apr. 29, 2017 |
---|---|---|---|
Accumulated depreciation | $ 1,227.3 | $ 1,197.6 | $ 1,093.9 |
Common shares, par value (usd per share) | $ 0.18 | $ 0.18 | $ 0.18 |
Common shares, authorized | 500,000,000 | 500,000,000 | 500,000,000 |
Common shares, outstanding | 59,200,000 | 60,500,000 | 68,400,000 |
Treasury shares, shares | 28,000,000 | 26,700,000 | 18,800,000 |
Series A Redeemable Convertible Preferred Stock | |||
Preferred shares, par value (usd per share) | $ 0.01 | $ 0.01 | |
Preferred shares, authorized | 500,000,000 | 500,000,000 | |
Preferred shares, outstanding | 625,000 | 625,000 | 625,000 |
Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
May 05, 2018 |
Apr. 29, 2017 |
|
Cash flows from operating activities | ||
Net loss | $ (496.6) | $ 78.5 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 49.8 | 50.0 |
Amortization of unfavorable leases and contracts | (2.0) | (4.6) |
Pension benefit | (0.3) | 0.0 |
Share-based compensation | 1.8 | 2.7 |
Deferred taxation | (18.8) | 15.8 |
Credit transaction, net | 141.0 | 0.0 |
Goodwill and intangible impairments | 448.7 | 0.0 |
Amortization of debt discount and issuance costs | 0.4 | 0.6 |
Other non-cash movements | (0.1) | 1.3 |
Changes in operating assets and liabilities: | ||
Decrease in accounts receivable held for investment | 40.4 | 132.0 |
Decrease in accounts receivable held for sale | 19.5 | 0.0 |
Decrease (increase) in other assets and other receivables | 10.8 | (14.6) |
(Increase) decrease in inventories | (162.4) | 17.7 |
Increase (decrease) in accounts payable | 55.7 | (74.0) |
Increase (decrease) in accrued expenses and other liabilities | 15.3 | (77.7) |
Decrease in deferred revenue | (4.3) | (4.9) |
Decrease in income taxes payable | (70.3) | (65.2) |
Pension plan contributions | (0.7) | (0.8) |
Net cash provided by operating activities | 27.9 | 56.8 |
Investing activities | ||
Purchase of property, plant and equipment | (26.1) | (56.2) |
Purchase of available-for-sale securities | (0.4) | (0.7) |
Proceeds from sale of available-for-sale securities | 1.1 | 0.3 |
Net cash used in investing activities | (25.4) | (56.6) |
Financing activities | ||
Dividends paid on common shares | (18.8) | (17.8) |
Dividends paid on redeemable convertible preferred shares | (7.8) | (11.3) |
Proceeds from issuance of common shares | 0.0 | 0.1 |
Repurchase of common shares | (60.0) | 0.0 |
Proceeds from revolving credit facility | 40.0 | 128.0 |
Repayments of revolving credit facility | (121.0) | |
(Repayments of) proceeds from bank overdrafts | (13.9) | 31.2 |
Other financing activities | (2.1) | (1.0) |
Net cash (used in) provided by financing activities | (69.3) | 3.6 |
Cash and cash equivalents at beginning of period | 225.1 | 98.7 |
(Decrease) increase in cash and cash equivalents | (66.8) | 3.8 |
Effect of exchange rate changes on cash and cash equivalents | (4.4) | (2.8) |
Cash and cash equivalents at end of period | 153.9 | 99.7 |
Term Loan | ||
Financing activities | ||
Repayments of debt | (6.7) | (4.5) |
Securitization facility | ||
Financing activities | ||
Repayments of debt | 0.0 | (666.5) |
Proceeds from securitization facility | 0.0 | 666.5 |
Credit Facility | Term Loan | ||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Amortization of debt discount and issuance costs | 0.2 | 0.2 |
Credit Facility | Revolving Credit Facility | ||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Amortization of debt discount and issuance costs | 0.1 | 0.1 |
Financing activities | ||
Proceeds from revolving credit facility | 40.0 | 128.0 |
Repayments of revolving credit facility | $ 0.0 | $ (121.0) |
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] | |||||||||
Cumulative adjustment for changes in accounting principals | [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 | (496.6) | (496.6) | |||||||
Other comprehensive income | (20.5) | (20.5) | |||||||
Dividends on common shares | (21.8) | (21.8) | |||||||
Dividends on redeemable convertible preferred shares | (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) | ||
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Organization and principal accounting policies |
3 Months Ended |
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May 05, 2018 | |
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. During the first quarter of Fiscal 2019, the Company realigned its organizational structure. The new structure will allow for further integration of operational and product development processes and support growth strategies. In accordance with this organizational change, beginning with quarterly reporting for the 13 weeks ended May 5, 2018, the Company identified three reportable segments as follows: North America, which consists of the legacy Sterling Jewelers and Zale division; International, which consists of the legacy UK Jewelry division; and Other. The “Other” reportable segment consists of all non-reportable segments, including subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones and unallocated corporate administrative functions. See Note 6 for additional discussion of the Company’s segments. On September 12, 2017, the Company completed the acquisition of R2Net Inc., a Delaware corporation (“R2Net”). See Note 5 for additional information regarding the acquisition. In October 2017, the Company, through its subsidiary Sterling Jewelers Inc. (“Sterling”), completed the sale of the prime-only quality portion of Sterling’s in-house finance receivable portfolio to Comenity Bank (“Comenity”). Additionally, during the first quarter of Fiscal 2019, the Company, through its subsidiary Sterling, entered into definitive agreements with CarVal Investors (“CarVal”) and Castlelake, L.P. (“Castlelake”) to sell all eligible non-prime in-house accounts receivable. See Note 4 for additional information regarding the transaction. Signet’s sales are seasonal, with the fourth quarter accounting for almost 40% of annual sales, with December being by far the most important month of the year. The “Holiday Season” consists of results for the months of November and December. As a result, approximately 45% to 55% of Signet’s annual operating income normally occurs in the fourth quarter, comprised of approximately 40% to 45% of the annual operating income in North America and nearly all of the annual operating income in the International segment. In Fiscal 2019, the Company expects all of its annual operating income to be generated in the fourth quarter of Fiscal 2019 due to the timing and impacts of the Company’s strategic credit outsourcing and transformation initiatives. 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 3, 2018 filed with the SEC on April 2, 2018. Related to the new accounting pronouncement adoptions discussed in Note 2 and the change in segments disclosed in Note 6, 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, 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 2019 and Fiscal 2018 refer to the 52 week period ending February 2, 2019 and the 53 week period ending February 3, 2018, respectively. Within these condensed consolidated financial statements, the first quarter of the relevant fiscal years 2019 and 2018 refer to the 13 weeks ended May 5, 2018 and April 29, 2017, 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 income statements. See Note 11 for additional information regarding the Company’s foreign currency translation. |
New accounting pronouncements |
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May 05, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||
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 Revenue recognition In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The FASB has issued several updates to the standard that i) defer the original effective date; ii) clarify the application of principal versus agent guidance; iii) clarify the guidance on inconsequential and perfunctory promises and licensing; and iv) clarify the guidance on the de-recognition of non-financial assets. Signet adopted ASU 2014‑09 and related updates effective February 4, 2018 using the modified retrospective approach applied only to contracts not completed as of the date of adoption with no restatement of prior periods and by recognizing the cumulative effect of initially applying the new standard as an adjustment to the opening balance of equity. As a result of the adoption, the Company identified that the new standard required the Company to adjust its presentation related to customer trade-ins, accounting for returns reserves and treatment of the amortization of certain bonus and profit-sharing arrangements related to third-party credit card programs. After the adoption of ASU 2014-09, the fair value of customer trade-ins will be considered non-cash consideration when determining the transaction price, and therefore classified as revenue rather than its previous classification as a reduction to cost of goods sold. During the 13 weeks ended May 5, 2018, the recognition of this non-cash consideration resulted in an additional $24.5 million of revenue due to the adoption of ASU 2014-09. Also, the Company will record its current sales return reserve within separate refund liability and asset for recovery accounts within other current asset and liabilities, respectively. Further, subsequent amortization of certain signing bonuses and receipt of funds in connection with economic profit sharing arrangements will be recognized as a component of sales rather than as an offset to selling, general and administrative expense. The change in balance classification and change in amortization treatment were immaterial to the Company’s consolidated financial statements. See additional disclosure requirements within Note 3. In addition to the pronouncement above, the following ASUs were adopted as of February 4, 2018. The impact on the Company's consolidated financial statements is described within the table below:
New accounting pronouncements to be adopted in future periods The Company is currently evaluating the impact on its financial statements of the following ASUs:
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Revenue recognition |
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Revenue recognition | Revenue recognition The following tables provide the Company’s revenue, disaggregated by major product and channel, for the 13 weeks ended May 5, 2018 and April 29, 2017:
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 sale and repairs Store sales are recognized when the customer receives and pays for the merchandise at the store with cash, in-house customer finance, private label credit card programs, 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 5, 2018, February 3, 2018 and April 29, 2017 were as follows:
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. Based on an evaluation of historical claims data, management currently estimates that substantially all claims will be incurred within 17 years of the sale of the warranty contract. 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:
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Credit transaction, net |
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Credit transaction, net | Credit transaction, net 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. Below is a summary of the transactions the Company has entered into as a result of this strategic initiative: Fiscal 2018 In October 2017, Signet, through its subsidiary Sterling, completed the sale of the prime-only credit quality portion of Sterling’s in-house finance receivable portfolio to Comenity. The following events summarize the credit transaction: Receivables reclassification: In the second quarter of Fiscal 2018, certain in-house finance receivables that met the criteria for sale to Comenity were reclassified from "held for investment" to "held for sale." Accordingly, the receivables were recorded at the lower of cost (par) or fair value, resulting in the reversal of the related allowance for credit losses. Proceeds received: In October 2017, the Company received $952.5 million in cash consideration reflecting the par value of the receivables sold. In addition, the Company recognized a beneficial interest asset representing the present value of the cash flows the Company expects to receive under the economic profit sharing agreement related to the receivables sold. Asset-backed securitization facility termination: In October 2017, the Company terminated the asset-backed securitization facility in order to transfer the receivables free and clear. The asset-backed securitization facility had a principal balance outstanding of $600.0 million at the time of termination. The payoff was funded through the proceeds received from the par value of receivables sold. Program agreement: Comenity provides credit to prime-only credit quality customers with an initial term of seven years and, unless terminated by either party, additional renewal terms of two years. Under the Program Agreement, Comenity established a program to issue Sterling credit cards to be serviced, marketed and promoted in accordance with the terms of the agreement. Subject to limited exceptions, Comenity is the exclusive issuer of private label credit cards or an installment or other closed end loan product in the United States bearing specified Company trademarks, including “Kay”, “Jared” and specified regional brands, but excluding “Zale”, during the term of the agreement. The pre-existing arrangement with Comenity for the issuing of Zale credit cards will be unaffected by the execution of the Program Agreement. Upon expiration or termination by either party of the Program Agreement, Sterling retains the option to purchase, or arrange the purchase by a third party of, the program assets from Comenity on terms that are no more onerous to Sterling than those applicable to Comenity under the Purchase Agreement, or in the case of a purchase by a third party, on customary terms. Additionally, the Company received a signing bonus, which may be repayable under certain conditions if the Program Agreement is terminated, and a right to receive future payments related to the performance of the credit program under an economic profit sharing agreement. The Program Agreement contains customary representations, warranties and covenants. Additionally, Signet and Genesis Financial Solutions (“Genesis”) entered into a five-year servicing agreement in October 2017, under which Genesis will provide credit servicing functions for Signet’s existing non-prime accounts receivable, as well as future non-prime account originations. Fiscal 2019 During March 2018, the Company, through its subsidiary Sterling, entered into a definitive agreement with CarVal to sell all eligible non-prime in-house accounts receivable. In May 2018, the Company exercised its option to appoint a minority party, Castlelake, to purchase 30% of the eligible receivables sold to CarVal under the Receivables Purchase Agreement. The accounts receivable will be sold at a price expressed as a percentage of the par value of the accounts receivable of 72% of par. The purchase price is expected to be settled with 95% received as cash upon closing and the remaining 5% deferred until the second anniversary of the closing date and subject to the non-prime in-house finance receivable portfolio achieving a pre-defined yield. The Company will adjust the asset to fair value in each period of the performance period. The agreement contains customary representations, warranties and covenants. Receivables reclassification: 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" on the condensed consolidated balance sheets. Accordingly, the receivables were recorded at the lower of cost (par) or fair value as of the date of the reclassification. Subsequent adjustments to the asset fair value are required to occur until the transaction closes, which is expected during the second quarter of Fiscal 2019 subject to certain closing conditions. During the first quarter of Fiscal 2019, total valuation losses of $141.0 million were recorded within credit transaction, net in the condensed consolidated income statement. Expenses: During Fiscal 2019, the Company incurred $2.1 million of transaction-related costs. These costs were recorded within credit transaction, net in the condensed consolidated income statement during Fiscal 2019. 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 the agreement. Servicing of the non-prime receivables, including operational interfaces and customer servicing, will continue to be provided by Genesis. The credit transaction is subject to certain closing conditions. Accounts receivable, net Signet’s accounts receivable primarily consist of US customer in-house financing receivables. The accounts receivable portfolio consists of a population that is of similar characteristics and is evaluated collectively for impairment. In October 2017, the Company completed the sale of the prime portion of the Sterling Jewelers customer in-house finance receivables. The receivables sold, which were classified as "held for sale" as of the second quarter of Fiscal 2018, are no longer reported within the condensed consolidated balance sheets. See Note 4 for additional information regarding the sale of the prime portion of the customer in-house finance receivable portfolio. In March 2018, the Company entered into an agreement to sell the remaining Sterling Jewelers and Zale customer in-house finance receivables. As a result, these receivables have been classified as “held for sale” in the condensed consolidated balance sheet and recorded at the lower of cost (par) or fair value. See Note 4 for additional information regarding the agreement. As of May 5, 2018, the accounts receivable held for sale were recorded at fair value. See Note 17 for additional information regarding the assumptions utilized in the calculation of fair value of the finance receivables held for sale.
Signet grants credit to customers based on a variety of credit quality indicators, including consumer financial information and prior payment experience. On an ongoing basis, management monitors the credit exposure based on past due status and collection experience, as it has found a meaningful correlation between the past due status of customers and the risk of loss. During the third quarter of Fiscal 2016, Signet implemented a program to provide in-house credit to customers in the Zale division’s US locations. The allowance for credit losses associated with Zale customer in-house finance receivables was immaterial as of February 3, 2018 and April 29, 2017. Effective October 20, 2017, the Zale customer in-house financing programs are being underwritten and serviced by a third party for newly originated balances after the effective date. Other accounts receivable is comprised primarily of accounts receivable relating to the insurance loss replacement business in the International segment of $5.8 million (February 3, 2018 and April 29, 2017: $9.3 million and $8.9 million, respectively). The allowance for credit losses associated with the portion of customer in-house finance receivables reclassified as “held for sale” was reversed during the first quarter of Fiscal 2019. The activity in the allowance for credit losses on Sterling Jewelers customer in-house finance receivables is shown below:
As a result of the sale of the prime-only credit portion of the customer in-house finance receivable portfolio and the outsourcing of the credit servicing on the remaining in-house finance receivable portfolio in October 2017 as disclosed in Note 4, the Company revised its methodology for measuring delinquency to be based on the contractual basis. As of May 5, 2018, the customer in-house finance receivables were held for sale and recorded at fair value in the condensed consolidated balance sheet. As such, no valuation allowance for credit losses was required to be recorded. The credit quality indicator and age analysis of customer in-house finance receivables as of February 3, 2018 are shown below under the contractual basis:
Prior to the fourth quarter of Fiscal 2018, the Company’s calculation of the allowance for credit losses was based on a recency measure of delinquency. The credit quality indicator and age analysis of customer in-house finance receivables prior to the sale of the prime-only credit portion of the in-house receivable portfolio as of April 29, 2017 are shown below under the recency basis:
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Acquisition |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition | Acquisition On September 12, 2017, the Company acquired the outstanding shares of R2Net, the owner of online jewelry retailer JamesAllen.com and Segoma Imaging Technologies. The acquisition rapidly enhanced the Company’s digital capabilities and accelerated its OmniChannel strategy, while adding a millennial-focused online retail brand to the Company’s portfolio. The Company paid $331.7 million, net of acquired cash of $47.3 million, for R2Net. The transaction was accounted for as a business combination during the third quarter of Fiscal 2018 with R2Net becoming a wholly-owned consolidated subsidiary of Signet. The results of R2Net subsequent to the acquisition date are reported as a component of the results of the North America segment. Pro forma results of operations have not been presented, as the impact on the Company’s consolidated financial results was not material. Under the acquisition method of accounting, the identifiable assets acquired and liabilities assumed are recorded at their estimated fair values on the acquisition date, with the remaining unallocated net purchase price recorded as goodwill. The following table summarizes the preliminary fair values identified for the assets acquired and liabilities assumed in the R2Net acquisition as of September 12, 2017:
As of May 5, 2018, the Company is in the process of finalizing the net assets acquired in the acquisition, most notably, the valuation of intangible assets and income taxes. The estimates and assumptions utilized in the preliminary valuation are subject to change within the measurement period as additional information is obtained. The Company expects to finalize the valuation within one year from the date of acquisition. The goodwill generated from the acquisition is primarily attributable to expected synergies and will not be deductible for tax purposes. |
Segment information |
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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. During the first quarter of Fiscal 2019, the Company realigned its organizational structure. The new structure will allow for further integration of operational and product development processes and support growth strategies. In accordance with this organizational change, beginning with quarterly reporting for the 13 weeks ended May 5, 2018, the Company reported three reportable segments as follows: North America, which consists of the legacy Sterling Jewelers and Zale division; International, which consists of the legacy UK Jewelry division; 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), Jared (Jared The Galleria Of Jewelry and Jared Vault), Zales (Zales Jewelers and Zales Outlet) 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 brands, including Gordon’s Jewelers in the US and Mappins in Canada, and the JamesAllen.com website, which was acquired in the R2Net acquisition. 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.
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Restructuring Plans |
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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 $170 million - $190 million over the duration of the plan of which $105 million - $120 million are expected to be cash charges. In Fiscal 2019, the Company's preliminary estimates for pre-tax charges related to cost reduction activities is a range of $125 million - $135 million of which $60 million - $65 million are expected to be cash charges. Signet also expects a net reduction in net selling square footage of 4.0% - 5.0% related to a net reduction in stores in Fiscal 2019. Restructuring charges of $6.5 million were recognized in the 13 weeks ended May 5, 2018 primarily related to severance and professional fees for consulting services related to the Plan. No Plan liabilities were recorded as of May 5, 2018. |
Redeemable preferred shares |
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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 Green Equity Investors VI, L.P., Green Equity Investors Side VI, L.P., LGP Associates VI-A LLC and LGP Associates VI-B LLC, all affiliates of Leonard Green & Partners, L.P., (together, the “Investors”) for an aggregate purchase price of $625.0 million, or $1,000 per share (the “Stated Value”) pursuant to the investment agreement dated August 24, 2016. Preferred shareholders are entitled to a cumulative dividend at the rate of 5% per annum, payable quarterly in arrears. Refer to Note 9 for additional discussion of the Company’s dividends on preferred shares.
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 $2.7 million as of May 5, 2018 (February 3, 2018 and April 29, 2017: $2.3 million and $1.0 million, respectively). Accretion of $0.4 million was recorded to preferred shares in the condensed consolidated balance sheets during the 13 weeks ended May 5, 2018 ($0.4 million for the 13 weeks ended April 29, 2017). |
Shareholders' equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' equity | Shareholders’ equity Share repurchases Common shares repurchased during the 13 weeks ended May 5, 2018 and April 29, 2017 were as follows:
Dividends on common shares Dividends declared on common shares during the 13 weeks ended May 5, 2018 and April 29, 2017 were as follows:
Dividends on preferred shares Dividends declared on preferred shares during the 13 weeks ended May 5, 2018 and April 29, 2017 were as follows:
There were no cumulative undeclared dividends on the preferred shares that reduced net (loss) income attributable to common shareholders during the 13 weeks ended May 5, 2018 or the 13 weeks ended April 29, 2017. 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 5, 2018 ($0.4 million for the 13 weeks ended April 29, 2017). See Note 8 for additional discussion of the Company’s preferred shares. |
Earnings (loss) per common share (EPS) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) per common share (“EPS”) | Earnings (loss) per common share (“EPS”) During Fiscal 2019, basic EPS is computed by dividing net (loss) income attributable to common shareholders by the weighted average number of common shares outstanding for the period. The computation of basic EPS is outlined in the table below:
The dilutive effect of share awards represents the potential impact of outstanding awards issued under the Company’s share-based compensation plans, including restricted shares and restricted stock units issued under the Omnibus Plan and stock options issued under the Share Saving Plans. 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 8 for additional discussion of the Company’s preferred shares. The computation of diluted EPS is outlined in the table below:
The calculation of diluted EPS excludes the following items for each respective period on the basis that their effect would be anti-dilutive.
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Accumulated other comprehensive income (loss) |
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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:
The amounts reclassified from AOCI were as follows:
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Income taxes |
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Income taxes | Income taxes
During the 13 weeks ended May 5, 2018, 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 and financing arrangements offset by the unfavorable impact of the impairment of goodwill which was not deductible for tax purposes. The effective tax rate excludes the effects of any discrete items that may be recognized in future periods. On December 22, 2017, the US government enacted “An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018” (the “TCJ Act”). The TCJ Act provides for comprehensive tax legislation that reduces the US federal statutory corporate tax rate from 35.0% to 21.0% effective January 1, 2018, limits certain deductions, including limiting the deductibility of interest expense to 30.0% of US Earnings Before Interest, Taxes, Depreciation, and Amortization, broadens the US federal income tax base, requires companies to pay a one-time repatriation tax on earnings of certain foreign subsidiaries that were previously tax deferred (“transition tax”), and creates new taxes on certain foreign sourced earnings. As we have a 52-53-week tax year ending the Saturday nearest October 31, the lower corporate income tax rate is administratively phased in, resulting in a blended U.S. federal statutory rate of approximately 23.4% for our fiscal tax year from October 29, 2017 through November 3, 2018 and 21.0% for our fiscal tax years thereafter. The SEC issued rules to allow a measurement period of up to 12 months following the enactment of the TCJ Act for registrants to finalize their accounting for the related income tax effects. In the quarter ended February 3, 2018, we recorded a provisional net tax benefit associated with the TCJ Act. In the quarter ended May 5, 2018, we recorded a provisional benefit of $0.6 million as an adjustment to the amounts recorded at February 3, 2018 related to the re-measurement of deferred tax balances recorded in purchase accounting with respect to the R2Net acquisition. As of May 5, 2018, the amounts recorded for the TCJ Act remain provisional for the re-measurement of deferred taxes. Within our calculations of the income tax effects of the TCJ Act, we used assumptions and estimates that may change as a result of future guidance and interpretation from the Internal Revenue Service, the SEC, the FASB and/or various other taxing jurisdictions. In particular, we anticipate that the US state jurisdictions will continue to determine and announce their conformity or decoupling from the Act, either in its entirety or with respect to specific provisions. All of these potential legislative and interpretive actions could result in adjustments to any of the provisional estimates when the accounting for the income tax effects of the TCJ Act is completed. Tax effects for these items will be recorded in subsequent quarters, as discrete adjustments to our income tax provision, once complete. We elected to adopt the SEC issued guidance that allows for a measurement period, not to exceed one year after the enactment date of the TCJ Act, to finalize the recording of related tax impacts. We currently anticipate finalizing and recording any resulting adjustments during the fourth quarter. 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 3, 2018. |
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Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts receivable, net | Credit transaction, net 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. Below is a summary of the transactions the Company has entered into as a result of this strategic initiative: Fiscal 2018 In October 2017, Signet, through its subsidiary Sterling, completed the sale of the prime-only credit quality portion of Sterling’s in-house finance receivable portfolio to Comenity. The following events summarize the credit transaction: Receivables reclassification: In the second quarter of Fiscal 2018, certain in-house finance receivables that met the criteria for sale to Comenity were reclassified from "held for investment" to "held for sale." Accordingly, the receivables were recorded at the lower of cost (par) or fair value, resulting in the reversal of the related allowance for credit losses. Proceeds received: In October 2017, the Company received $952.5 million in cash consideration reflecting the par value of the receivables sold. In addition, the Company recognized a beneficial interest asset representing the present value of the cash flows the Company expects to receive under the economic profit sharing agreement related to the receivables sold. Asset-backed securitization facility termination: In October 2017, the Company terminated the asset-backed securitization facility in order to transfer the receivables free and clear. The asset-backed securitization facility had a principal balance outstanding of $600.0 million at the time of termination. The payoff was funded through the proceeds received from the par value of receivables sold. Program agreement: Comenity provides credit to prime-only credit quality customers with an initial term of seven years and, unless terminated by either party, additional renewal terms of two years. Under the Program Agreement, Comenity established a program to issue Sterling credit cards to be serviced, marketed and promoted in accordance with the terms of the agreement. Subject to limited exceptions, Comenity is the exclusive issuer of private label credit cards or an installment or other closed end loan product in the United States bearing specified Company trademarks, including “Kay”, “Jared” and specified regional brands, but excluding “Zale”, during the term of the agreement. The pre-existing arrangement with Comenity for the issuing of Zale credit cards will be unaffected by the execution of the Program Agreement. Upon expiration or termination by either party of the Program Agreement, Sterling retains the option to purchase, or arrange the purchase by a third party of, the program assets from Comenity on terms that are no more onerous to Sterling than those applicable to Comenity under the Purchase Agreement, or in the case of a purchase by a third party, on customary terms. Additionally, the Company received a signing bonus, which may be repayable under certain conditions if the Program Agreement is terminated, and a right to receive future payments related to the performance of the credit program under an economic profit sharing agreement. The Program Agreement contains customary representations, warranties and covenants. Additionally, Signet and Genesis Financial Solutions (“Genesis”) entered into a five-year servicing agreement in October 2017, under which Genesis will provide credit servicing functions for Signet’s existing non-prime accounts receivable, as well as future non-prime account originations. Fiscal 2019 During March 2018, the Company, through its subsidiary Sterling, entered into a definitive agreement with CarVal to sell all eligible non-prime in-house accounts receivable. In May 2018, the Company exercised its option to appoint a minority party, Castlelake, to purchase 30% of the eligible receivables sold to CarVal under the Receivables Purchase Agreement. The accounts receivable will be sold at a price expressed as a percentage of the par value of the accounts receivable of 72% of par. The purchase price is expected to be settled with 95% received as cash upon closing and the remaining 5% deferred until the second anniversary of the closing date and subject to the non-prime in-house finance receivable portfolio achieving a pre-defined yield. The Company will adjust the asset to fair value in each period of the performance period. The agreement contains customary representations, warranties and covenants. Receivables reclassification: 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" on the condensed consolidated balance sheets. Accordingly, the receivables were recorded at the lower of cost (par) or fair value as of the date of the reclassification. Subsequent adjustments to the asset fair value are required to occur until the transaction closes, which is expected during the second quarter of Fiscal 2019 subject to certain closing conditions. During the first quarter of Fiscal 2019, total valuation losses of $141.0 million were recorded within credit transaction, net in the condensed consolidated income statement. Expenses: During Fiscal 2019, the Company incurred $2.1 million of transaction-related costs. These costs were recorded within credit transaction, net in the condensed consolidated income statement during Fiscal 2019. 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 the agreement. Servicing of the non-prime receivables, including operational interfaces and customer servicing, will continue to be provided by Genesis. The credit transaction is subject to certain closing conditions. Accounts receivable, net Signet’s accounts receivable primarily consist of US customer in-house financing receivables. The accounts receivable portfolio consists of a population that is of similar characteristics and is evaluated collectively for impairment. In October 2017, the Company completed the sale of the prime portion of the Sterling Jewelers customer in-house finance receivables. The receivables sold, which were classified as "held for sale" as of the second quarter of Fiscal 2018, are no longer reported within the condensed consolidated balance sheets. See Note 4 for additional information regarding the sale of the prime portion of the customer in-house finance receivable portfolio. In March 2018, the Company entered into an agreement to sell the remaining Sterling Jewelers and Zale customer in-house finance receivables. As a result, these receivables have been classified as “held for sale” in the condensed consolidated balance sheet and recorded at the lower of cost (par) or fair value. See Note 4 for additional information regarding the agreement. As of May 5, 2018, the accounts receivable held for sale were recorded at fair value. See Note 17 for additional information regarding the assumptions utilized in the calculation of fair value of the finance receivables held for sale.
Signet grants credit to customers based on a variety of credit quality indicators, including consumer financial information and prior payment experience. On an ongoing basis, management monitors the credit exposure based on past due status and collection experience, as it has found a meaningful correlation between the past due status of customers and the risk of loss. During the third quarter of Fiscal 2016, Signet implemented a program to provide in-house credit to customers in the Zale division’s US locations. The allowance for credit losses associated with Zale customer in-house finance receivables was immaterial as of February 3, 2018 and April 29, 2017. Effective October 20, 2017, the Zale customer in-house financing programs are being underwritten and serviced by a third party for newly originated balances after the effective date. Other accounts receivable is comprised primarily of accounts receivable relating to the insurance loss replacement business in the International segment of $5.8 million (February 3, 2018 and April 29, 2017: $9.3 million and $8.9 million, respectively). The allowance for credit losses associated with the portion of customer in-house finance receivables reclassified as “held for sale” was reversed during the first quarter of Fiscal 2019. The activity in the allowance for credit losses on Sterling Jewelers customer in-house finance receivables is shown below:
As a result of the sale of the prime-only credit portion of the customer in-house finance receivable portfolio and the outsourcing of the credit servicing on the remaining in-house finance receivable portfolio in October 2017 as disclosed in Note 4, the Company revised its methodology for measuring delinquency to be based on the contractual basis. As of May 5, 2018, the customer in-house finance receivables were held for sale and recorded at fair value in the condensed consolidated balance sheet. As such, no valuation allowance for credit losses was required to be recorded. The credit quality indicator and age analysis of customer in-house finance receivables as of February 3, 2018 are shown below under the contractual basis:
Prior to the fourth quarter of Fiscal 2018, the Company’s calculation of the allowance for credit losses was based on a recency measure of delinquency. The credit quality indicator and age analysis of customer in-house finance receivables prior to the sale of the prime-only credit portion of the in-house receivable portfolio as of April 29, 2017 are shown below under the recency basis:
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Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories The following table summarizes the Company’s inventory by classification:
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Goodwill and intangibles |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and intangibles | Goodwill and intangibles In connection with the acquisition of R2Net on September 12, 2017, the Company recognized $299.1 million of goodwill, which is reported in the North America segment. The amount of goodwill generated will be adjusted for any additional assets or liabilities identified by the Company or for any adjustments to the preliminary fair values identified for the assets acquired and liabilities assumed in the R2Net acquisition. Goodwill and other indefinite-lived intangible assets, such as indefinite-lived trade names, are evaluated for impairment annually during the second quarter of the fiscal year. 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 the 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 in the first quarter, resulted in lower than previously projected long-term future cash flows for the reporting units which negatively affected the valuation compared to previous valuations. Due to the inherent uncertainties involved in making the estimates and assumptions used in the fair value analysis, actual results may differ, which could alter the fair value of the reporting units and trade names, and possibly result in impairment charges in future periods. 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. Goodwill Using a combination of discounted cash flow and guideline public company methodologies, the Company compared the fair value of each of its reporting units 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 $23.2 million and $285.6 million at its’ legacy Sterling Jewelers and Zale Jewelry segments, which are within the Company’s current North America segment. The following table summarizes the Company’s goodwill by reportable segment:
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, 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 test 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 at its’ legacy Zale Jewelry segment, which is within the Company’s current North America segment. The following table provides additional detail regarding the composition of intangible assets and liabilities:
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Derivatives |
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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 minimize the impact of precious metal commodity price volatility on operating results through the use of outright forward purchases of, or by entering into options to purchase, precious metals within treasury guidelines approved by the Board of Directors. In particular, Signet undertakes some hedging of its requirements for gold through the use of options, net zero-cost collar arrangements (a combination of call and put option contracts), forward contracts and commodity purchasing, while fluctuations in the cost of diamonds are not hedged. Liquidity risk Signet’s objective is to ensure that it has access to, or the ability to generate, sufficient cash from either internal or external sources in a timely and cost-effective manner to meet its commitments as they become due and payable. Signet manages liquidity risks as part of its overall risk management policy. Management produces forecasting and budgeting information that is reviewed and monitored by the Board of Directors. Cash generated from operations and external financing are the main sources of funding, which supplement Signet’s resources in meeting liquidity requirements. The main external sources of funding are a senior unsecured credit facility and senior unsecured notes as described in Note 18. Interest rate risk Signet has exposure to movements in interest rates associated with cash and borrowings. Signet may enter into various interest rate protection agreements in order to limit the impact of movements in interest rates. Interest rate swap (designated) — The Company entered into an interest rate swap in March 2015 with an aggregate notional amount of $300.0 million that is scheduled to mature through April 2019. Under this contract, the Company agrees to exchange, at specified intervals, the difference between fixed contract rates and floating rate interest amounts calculated by reference to the agreed notional amounts. This contract was entered into to reduce the consolidated interest rate risk associated with variable rate, long-term debt. The Company designated this derivative as a cash flow hedge of the variability in expected cash outflows for interest payments. The Company has effectively converted a portion of its variable-rate senior unsecured term loan into fixed-rate debt. The fair value of the swap is presented within the condensed consolidated balance sheets, and the Company recognizes any changes in the fair value as an adjustment of AOCI within equity to the extent the swap is effective. The ineffective portion, if any, is recognized in current period earnings. As interest expense is accrued on the debt obligation, amounts in AOCI related to the interest rate swap are reclassified into income resulting in a net interest expense on the hedged amount of the underlying debt obligation equal to the effective yield of the fixed rate of the swap. In the event that the interest rate swap is de-designated prior to maturity, gains or losses in AOCI remain deferred and are reclassified into earnings in the periods in which the hedged forecasted transaction affects earnings. Credit risk and concentrations of credit risk Credit risk represents the loss that would be recognized at the reporting date if counter-parties failed to perform as contracted. Signet does not anticipate non-performance by counter-parties of its financial instruments, except for customer in-house financing receivables as disclosed in Note 13 of which no single customer represents a significant portion of the Company’s receivable balance. Signet does not require collateral or other security to support cash investments or financial instruments with credit risk; however, it is Signet’s policy to only hold cash and cash equivalent investments and to transact financial instruments with financial institutions with a certain minimum credit rating. Management does not believe Signet is exposed to any significant concentrations of credit risk that arise from cash and cash equivalent investments, derivatives or accounts receivable. Commodity and foreign currency risks The following types of derivative financial instruments are utilized by Signet to mitigate certain risk exposures related to changes in commodity prices and foreign exchange rates: Forward foreign currency exchange contracts (designated) — These contracts, which are principally in US dollars, are entered into to limit the impact of movements in foreign exchange rates on forecasted foreign currency purchases. The total notional amount of these foreign currency contracts outstanding as of May 5, 2018 was $22.2 million (February 3, 2018 and April 29, 2017: $26.6 million and $37.4 million, respectively). These contracts have been designated as cash flow hedges and will be settled over the next 11 months (February 3, 2018 and April 29, 2017: 11 months and 12 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 5, 2018 was $104.3 million (February 3, 2018 and April 29, 2017: $112.7 million and $47.9 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 5, 2018 was 5,000 ounces of gold (February 3, 2018 and April 29, 2017: 6,000 ounces and 69,000 ounces, respectively). These contracts have been designated as cash flow hedges and will be settled over the next 9 months (February 3, 2018 and April 29, 2017: 12 months and 9 months, respectively). The bank counter-parties 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 5, 2018, 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:
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:
The following tables summarize the effect of derivative instruments designated as cash flow hedges in OCI and the condensed consolidated income statements: Foreign currency contracts
Commodity contracts
Interest rate swaps
There was no material ineffectiveness related to the Company’s derivative instruments designated in cash flow hedging relationships for the 13 weeks ended May 5, 2018 and April 29, 2017. Based on current valuations, the Company expects approximately $2.5 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 income statements:
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Fair value measurements |
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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:
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 16 for additional information related to the Company’s derivatives. As of May 5, 2018, the fair value of the in-house finance receivable portfolio was approximately 70% of par value. This estimated value was derived from a discounted cash flow model using unobservable inputs, including estimated yields, loss rates, payment rates and discount rates to estimate the fair value associated with the accounts receivable existing as of May 5, 2018, with consideration given to the terms of the agreements entered into with CarVal and Castlelake during the first quarter of Fiscal 2019. See Note 4 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 15 for additional information. The carrying amounts of cash and cash equivalents, other receivables, accounts payable, accrued expenses, other liabilities, income taxes and the revolving credit facility approximate fair value because of the short-term maturity of these amounts. The fair values of long-term debt instruments were determined using quoted market prices in inactive markets or discounted cash flows based upon current observable market interest rates and therefore were classified as Level 2 measurements in the fair value hierarchy. See Note 18 for classification between current and long-term debt. The carrying amount and fair value of outstanding debt at May 5, 2018, February 3, 2018 and April 29, 2017 were as follows:
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Loans, overdrafts and long-term debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, overdrafts and long-term debt | Loans, overdrafts and long-term debt
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. Capitalized fees associated with the revolving credit facility as of May 5, 2018 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 5, 2018 was $1.3 million (February 3, 2018 and April 29, 2017: $1.2 million and $0.9 million, respectively). Amortization relating to these fees of $0.1 million was recorded as interest expense in the condensed consolidated income statements for the 13 weeks ended May 5, 2018 ($0.1 million for the 13 weeks ended April 29, 2017). As of May 5, 2018, February 3, 2018 and April 29, 2017, the Company had stand-by letters of credit outstanding of $14.5 million, $15.7 million and $15.3 million, respectively, that reduce remaining borrowing availability. The revolving credit facility had a weighted average interest rate of 3.30% and 2.11% during the 13 weeks ended May 5, 2018 and April 29, 2017, respectively. Capitalized fees associated with the term loan facility as of May 5, 2018 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 5, 2018 was $3.7 million (February 3, 2018 and April 29, 2017: $3.5 million and $2.9 million, respectively). Amortization relating to these fees of $0.2 million was recorded as interest expense in the condensed consolidated income statements for the 13 weeks ended May 5, 2018 ($0.2 million for the 13 weeks ended April 29, 2017). Excluding the impact of the interest rate swap designated as a cash flow hedge discussed in Note 16, the term loan had a weighted average interest rate of 3.10% and 2.13% during the 13 weeks ended May 5, 2018 and April 29, 2017, 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 22 for additional information. Capitalized fees relating to the senior unsecured notes total $7.0 million. Accumulated amortization related to these capitalized fees as of May 5, 2018 was $2.7 million (February 3, 2018 and April 29, 2017: $2.6 million and $2.1 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 income statements for the 13 weeks ended May 5, 2018 ($0.2 million for the 13 weeks ended April 29, 2017). Other As of May 5, 2018, February 3, 2018 and April 29, 2017, the Company was in compliance with all debt covenants. |
Warranty reserve |
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warranty reserve | Warranty reserve Specific mechandise 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:
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Share-based compensation |
3 Months Ended |
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May 05, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based compensation | Share-based compensation Signet recorded share-based compensation expense of $1.8 million for the 13 weeks ended May 5, 2018 related to the Omnibus Plan and Share Saving Plans ($2.7 million for the 13 weeks ended April 29, 2017). |
Commitments and contingencies |
3 Months Ended |
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May 05, 2018 | |
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 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. On May 12, 2017, SJI received notice that a Class Action Complaint against SJI and Signet Jewelers Ltd. (improperly named as a party) was filed by Veronica Masten in the Superior Court of California, County of Los Angeles, alleging violations of various wage and hour labor laws. The claims include: (1) failure to pay overtime; (2) failure to provide meal periods; (3) failure to reimburse business expenses; (4) failure to provide itemized wage statements; (5) failure to timely pay wages; and a derivative claims for (6) unfair competition. SJI filed its Answer to the Complaint on June 13, 2017. On June 14, 2017, SJI removed this matter to the United States District Court for the Central District of California. After engaging in limited discovery, Plaintiff agreed to pursue her claims on an individual basis in a separate forum, and sought to dismiss her claims in this action without prejudice. Plaintiff filed a request for dismissal with the district court on December 18, 2017. The Court has not yet formally ruled on the dismissal, however, the Court’s docket indicates that the matter is closed. 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. The defendants motion to dismiss the fifth amended complaint is fully briefed and awaiting decision. 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 is fully briefed and awaiting decision. 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 September 6, 2017, the Consumer Financial Protection Bureau (“CFPB”) notified Signet that, in accordance with the CFPB’s discretionary Notice and Opportunity to Respond and Advise (“NORA”) process, the CFPB’s Office of Enforcement is considering recommending that the CFPB take legal action against Signet, alleging that Signet violated §§ 1031 and 1036 of the Consumer Financial Protection Act of 2010, 12 U.S.C. §§ 5531, 5536, and the Truth in Lending Act, 15 U.S.C. § 1601 et seq., and its implementing regulation, relating to in-store: credit practices, promotions, and payment protection products. The purpose of a NORA letter is to provide a party being investigated an opportunity to present its position to the CFPB before an enforcement action is recommended or commenced. This notice stems from an inquiry that commenced in late 2016 when Signet received and responded to an initial Civil Investigative Demand. Signet has cooperated and continues to fully cooperate with the CFPB. On September 27, 2017, Signet submitted a response to the NORA letter to the CFPB, which stated its belief that the potential claims lack merit. The Attorney General for the State of New York (“NYAG”) is investigating similar issues under its jurisdiction. Signet has been cooperating with the NYAG’s investigation which remains ongoing. Signet is currently unable to predict the timing or outcome of the NORA process or NYAG investigation. Signet continues to believe that its acts and practices relating to the matters under investigation are lawful and, as such, has concluded the possibility of an unfavorable outcome was remote as of May 5, 2018. In the ordinary course of business, Signet may be subject, from time to time, to various other proceedings, lawsuits, disputes or claims incidental to its business, which the Company believes are not significant to Signet’s consolidated financial position, results of operations or cash flows. |
Condensed consolidating financial information |
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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 Income Statement For the 13 weeks ended May 5, 2018 (Unaudited)
Condensed Consolidated Income Statement For the 13 weeks ended April 29, 2017 (Unaudited)
Condensed Consolidated Statement of Comprehensive Income (Loss) For the 13 weeks ended May 5, 2018 (Unaudited)
Condensed Consolidated Statement of Comprehensive Income (Loss) For the 13 weeks ended April 29, 2017 (Unaudited)
Condensed Consolidated Balance Sheet May 5, 2018 (Unaudited)
Condensed Consolidated Balance Sheet February 3, 2018
Condensed Consolidated Balance Sheet April 29, 2017 (Unaudited)
Condensed Consolidated Statement of Cash Flows For the 13 weeks ended May 5, 2018 (Unaudited)
Condensed Consolidated Statement of Cash Flows For the 13 weeks ended April 29, 2017 (Unaudited)
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Organization and principal accounting policies (Policies) |
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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 3, 2018 filed with the SEC on April 2, 2018. Related to the new accounting pronouncement adoptions discussed in Note 2 and the change in segments disclosed in Note 6, 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. |
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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, indefinite-lived intangible assets, depreciation and amortization of long-lived assets, as well as accounting for business combinations. |
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Fiscal year | Fiscal year The Company’s fiscal year ends on the Saturday nearest to January 31st. Fiscal 2019 and Fiscal 2018 refer to the 52 week period ending February 2, 2019 and the 53 week period ending February 3, 2018, respectively. Within these condensed consolidated financial statements, the first quarter of the relevant fiscal years 2019 and 2018 refer to the 13 weeks ended May 5, 2018 and April 29, 2017, respectively. |
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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 income statements. |
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New accounting pronouncements | New accounting pronouncements adopted during the period Revenue recognition In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The FASB has issued several updates to the standard that i) defer the original effective date; ii) clarify the application of principal versus agent guidance; iii) clarify the guidance on inconsequential and perfunctory promises and licensing; and iv) clarify the guidance on the de-recognition of non-financial assets. Signet adopted ASU 2014‑09 and related updates effective February 4, 2018 using the modified retrospective approach applied only to contracts not completed as of the date of adoption with no restatement of prior periods and by recognizing the cumulative effect of initially applying the new standard as an adjustment to the opening balance of equity. As a result of the adoption, the Company identified that the new standard required the Company to adjust its presentation related to customer trade-ins, accounting for returns reserves and treatment of the amortization of certain bonus and profit-sharing arrangements related to third-party credit card programs. After the adoption of ASU 2014-09, the fair value of customer trade-ins will be considered non-cash consideration when determining the transaction price, and therefore classified as revenue rather than its previous classification as a reduction to cost of goods sold. During the 13 weeks ended May 5, 2018, the recognition of this non-cash consideration resulted in an additional $24.5 million of revenue due to the adoption of ASU 2014-09. Also, the Company will record its current sales return reserve within separate refund liability and asset for recovery accounts within other current asset and liabilities, respectively. Further, subsequent amortization of certain signing bonuses and receipt of funds in connection with economic profit sharing arrangements will be recognized as a component of sales rather than as an offset to selling, general and administrative expense. The change in balance classification and change in amortization treatment were immaterial to the Company’s consolidated financial statements. See additional disclosure requirements within Note 3. In addition to the pronouncement above, the following ASUs were adopted as of February 4, 2018. The impact on the Company's consolidated financial statements is described within the table below:
New accounting pronouncements to be adopted in future periods The Company is currently evaluating the impact on its financial statements of the following ASUs:
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Revenue recognition (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 05, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following tables provide the Company’s revenue, disaggregated by major product and channel, for the 13 weeks ended May 5, 2018 and April 29, 2017:
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Other Assets | Unamortized deferred selling costs as of May 5, 2018, February 3, 2018 and April 29, 2017 were as follows:
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Deferred Revenue | Deferred revenue is comprised primarily of ESP and sale voucher promotions and other as follows:
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Acquisition (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 05, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary fair values identified for the assets acquired and liabilities assumed in the R2Net acquisition as of September 12, 2017:
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Segment information (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 05, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment reporting information, by segment |
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Redeemable preferred shares (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 05, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Temporary Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Preferred Shares |
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Shareholders' equity (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 05, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class of Treasury Stock | Common shares repurchased during the 13 weeks ended May 5, 2018 and April 29, 2017 were as follows:
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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 5, 2018 and April 29, 2017 were as follows:
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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 5, 2018 and April 29, 2017 were as follows:
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Earnings (loss) per common share (“EPS”) (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 05, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic | The computation of basic EPS is outlined in the table below:
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Schedule of Earnings Per Share, Diluted | The computation of diluted EPS is outlined in the table below:
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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.
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Accumulated other comprehensive income (loss) (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 05, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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Reclassification out of Accumulated Other Comprehensive Income | The amounts reclassified from AOCI were as follows:
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Income taxes (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
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May 05, 2018 | |||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Reconciliation Of Effective Tax Rate |
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Accounts receivable, net (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 05, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable By Portfolio Segment, Net |
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Allowance for Credit Losses on US Customer In-House Finance Receivables | The activity in the allowance for credit losses on Sterling Jewelers customer in-house finance receivables is shown below:
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Credit Quality Indicator and Age Analysis of Past Due US Customer In-House Finance Receivables | The credit quality indicator and age analysis of customer in-house finance receivables as of February 3, 2018 are shown below under the contractual basis:
Prior to the fourth quarter of Fiscal 2018, the Company’s calculation of the allowance for credit losses was based on a recency measure of delinquency. The credit quality indicator and age analysis of customer in-house finance receivables prior to the sale of the prime-only credit portion of the in-house receivable portfolio as of April 29, 2017 are shown below under the recency basis:
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Inventories (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 05, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory, Current | The following table summarizes the Company’s inventory by classification:
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Goodwill and intangibles (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 05, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Goodwill by Reporting Unit | The following table summarizes the Company’s goodwill by reportable segment:
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Schedule of Finite-Lived Intangible Assets |
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Derivatives (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 05, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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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:
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Derivative Instruments, Gain (Loss) | The following tables summarize the effect of derivative instruments designated as cash flow hedges in OCI and the condensed consolidated income statements: Foreign currency contracts
Commodity contracts
Interest rate swaps
The following table presents the effects of the Company’s derivatives instruments not designated as cash flow hedges in the condensed consolidated income statements:
|
Fair value measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 05, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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Schedule of Carrying Values and Estimated Fair Values | The carrying amount and fair value of outstanding debt at May 5, 2018, February 3, 2018 and April 29, 2017 were as follows:
|
Loans, overdrafts and long-term debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 05, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Loans, Overdrafts and Long-Term Debt |
|
Warranty reserve (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 05, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
Condensed consolidating financial information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 05, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Income Statement |
Condensed Consolidated Income Statement For the 13 weeks ended April 29, 2017 (Unaudited)
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Condensed Statement of Comprehensive Income | Condensed Consolidated Statement of Comprehensive Income (Loss) For the 13 weeks ended May 5, 2018 (Unaudited)
Condensed Consolidated Statement of Comprehensive Income (Loss) For the 13 weeks ended April 29, 2017 (Unaudited)
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Condensed Balance Sheet | Condensed Consolidated Balance Sheet May 5, 2018 (Unaudited)
Condensed Consolidated Balance Sheet February 3, 2018
Condensed Consolidated Balance Sheet April 29, 2017 (Unaudited)
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Condensed Cash Flow Statement | Condensed Consolidated Statement of Cash Flows For the 13 weeks ended May 5, 2018 (Unaudited)
Condensed Consolidated Statement of Cash Flows For the 13 weeks ended April 29, 2017 (Unaudited)
|
Organization and principal accounting policies - Additional information (Details) |
3 Months Ended |
---|---|
May 05, 2018
segment
| |
Property, Plant and Equipment [Line Items] | |
Number of reportable segments | 3 |
Seasonal revenues, fourth quarter sales, percent | 40.00% |
UK Jewelry and Zales Jewelry | Minimum | |
Property, Plant and Equipment [Line Items] | |
Operating income expected in fourth quarter, Percent | 45.00% |
UK Jewelry and Zales Jewelry | Maximum | |
Property, Plant and Equipment [Line Items] | |
Operating income expected in fourth quarter, Percent | 55.00% |
Sterling Jewelers | Minimum | |
Property, Plant and Equipment [Line Items] | |
Operating income expected in fourth quarter, Percent | 40.00% |
Sterling Jewelers | Maximum | |
Property, Plant and Equipment [Line Items] | |
Operating income expected in fourth quarter, Percent | 45.00% |
New accounting pronouncements (Details) $ in Millions |
3 Months Ended |
---|---|
May 05, 2018
USD ($)
| |
Accounting Standards Update 2014-09 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Revenue | $ 24.5 |
Revenue recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
May 05, 2018 |
Apr. 29, 2017 |
|
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,480.6 | $ 1,403.4 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,347.8 | 1,274.4 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 128.7 | 122.5 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 4.1 | 6.5 |
Bridal | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 673.5 | 616.0 |
Bridal | North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 617.9 | 562.9 |
Bridal | International | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 55.6 | 53.1 |
Bridal | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0.0 | 0.0 |
Fashion | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 487.0 | 476.7 |
Fashion | North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 461.1 | 450.9 |
Fashion | International | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 25.9 | 25.8 |
Fashion | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0.0 | 0.0 |
Watches | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 91.3 | 88.0 |
Watches | North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 52.2 | 51.5 |
Watches | International | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 39.1 | 36.5 |
Watches | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0.0 | 0.0 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 228.8 | 222.7 |
Other | North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 216.6 | 209.1 |
Other | International | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 8.1 | 7.1 |
Other | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 4.1 | 6.5 |
Store | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,334.1 | 1,322.4 |
Store | North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,213.7 | 1,203.3 |
Store | International | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 116.3 | 112.6 |
Store | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 4.1 | 6.5 |
E-commerce | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 146.5 | 81.0 |
E-commerce | North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 134.1 | 71.1 |
E-commerce | International | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 12.4 | 9.9 |
E-commerce | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0.0 | $ 0.0 |
James Allen | E-commerce | North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 53.3 |
Revenue recognition - Unamortized Deferred Selling Costs (Details) - USD ($) $ in Millions |
May 05, 2018 |
Feb. 03, 2018 |
Apr. 29, 2017 |
---|---|---|---|
Revenue from Contract with Customer [Abstract] | |||
Other current assets | $ 30.6 | $ 30.9 | $ 29.6 |
Other assets | 89.2 | 89.5 | 86.7 |
Deferred ESP selling costs | $ 119.8 | $ 120.4 | $ 116.3 |
Revenue recognition - Narrative (Details) - North America |
3 Months Ended |
---|---|
May 05, 2018 | |
Extended Service Plans and Lifetime Warranty Agreements | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, expected timing of satisfaction, period | 17 years |
Jewelry Replacement Plan | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, expected timing of satisfaction, period | 3 years |
Revenue recognition - ESP and Voucher Promotions (Details) - USD ($) $ in Millions |
May 05, 2018 |
Feb. 03, 2018 |
Apr. 29, 2017 |
Jan. 28, 2017 |
---|---|---|---|---|
Deferred Revenue Arrangement [Line Items] | ||||
Voucher promotions and other | $ 38.9 | $ 41.4 | $ 27.0 | |
Total deferred revenue | 952.4 | 957.5 | 930.7 | |
Deferred revenue | 284.9 | 288.6 | 272.1 | |
Non-current liabilities | 667.5 | 668.9 | 658.6 | |
Sterling Jewelers | ||||
Deferred Revenue Arrangement [Line Items] | ||||
ESP deferred revenue | $ 913.5 | $ 916.1 | $ 903.7 | $ 905.6 |
Revenue recognition - Rollforward (Details) - Sterling Jewelers - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
May 05, 2018 |
Apr. 29, 2017 |
|
Movement in Deferred Revenue [Roll Forward] | ||
ESP deferred revenue, beginning of period | $ 916.1 | $ 905.6 |
Plans sold | 96.0 | 96.6 |
Revenue recognized | (98.6) | (98.5) |
ESP deferred revenue, end of period | $ 913.5 | $ 903.7 |
Credit transaction, net - Narrative (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Mar. 31, 2018 |
Oct. 28, 2017 |
May 05, 2018 |
Apr. 29, 2017 |
Feb. 02, 2019 |
Feb. 03, 2018 |
|
Debt Instrument [Line Items] | ||||||
Credit transaction, net | $ (143.1) | $ 0.0 | ||||
Initial credit term (years) | 7 years | |||||
Credit renewal term (years) | 2 years | |||||
Sale of receivables, percentage of par | 72.00% | |||||
Sale of receivables, percentage settled in cash | 95.00% | |||||
Sale of receivables. percentage deferred until second anniversary | 5.00% | |||||
Reversal of allowance on receivables previously held for sale | 141.0 | $ 0.0 | ||||
Securitization Facility | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of secured debt | $ (600.0) | |||||
Consumer Portfolio Segment | ||||||
Debt Instrument [Line Items] | ||||||
Reversal of allowance on receivables previously held for sale | 107.6 | $ 0.0 | ||||
Sterling Jewelers, Inc. | Consumer Portfolio Segment | ||||||
Debt Instrument [Line Items] | ||||||
Net proceeds | $ 952.5 | |||||
Genesis Financial Solution | ||||||
Debt Instrument [Line Items] | ||||||
Servicing agreement, term (years) | 5 years | |||||
Forecast | Consumer Portfolio Segment | Sterling Jewelers | ||||||
Debt Instrument [Line Items] | ||||||
Reversal of allowance on receivables previously held for sale | $ (141.0) | |||||
Forecast | Consumer Portfolio Segment | Other | ||||||
Debt Instrument [Line Items] | ||||||
Transaction-related costs | $ 2.1 |
Acquisition - Additional Information (Detail) - R2Net Inc. $ in Millions |
Sep. 12, 2017
USD ($)
|
---|---|
Business Acquisition [Line Items] | |
Base-line purchase price | $ 331.7 |
Cash and cash equivalents | $ 47.3 |
Acquisition - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions |
3 Months Ended | ||||
---|---|---|---|---|---|
Sep. 12, 2017 |
Apr. 29, 2017 |
May 05, 2018 |
Feb. 03, 2018 |
Jan. 28, 2017 |
|
Business Acquisition [Line Items] | |||||
Goodwilll, acquired during period | $ 301.7 | ||||
Goodwill | $ 516.1 | $ 509.1 | $ 821.7 | $ 517.6 | |
R2Net Inc. | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 47.3 | ||||
Inventories | 12.1 | ||||
Other current assets | 9.7 | ||||
Property, plant and equipment | 3.5 | ||||
Current liabilities | (42.4) | ||||
Deferred tax liabilities | (25.1) | ||||
Fair value of net assets acquired | 79.9 | ||||
Goodwilll, acquired during period | 299.1 | ||||
Total consideration transferred | 379.0 | ||||
Trade names | R2Net Inc. | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 70.6 | ||||
Technology-related | R2Net Inc. | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 4.2 |
Segment information - Additional Information (Details) |
3 Months Ended |
---|---|
May 05, 2018
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment information - Summary of Activity by Segment (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
May 05, 2018 |
Apr. 29, 2017 |
Feb. 03, 2018 |
|
Segment Reporting Information [Line Items] | |||
Sales | $ 1,480.6 | $ 1,403.4 | |
Operating income (loss) | (574.2) | 115.3 | |
Total assets | 5,272.9 | 6,465.2 | $ 5,839.6 |
North America | |||
Segment Reporting Information [Line Items] | |||
Sales | 1,347.8 | 1,274.4 | |
Operating income (loss) | (537.3) | 134.8 | |
Total assets | 4,722.3 | 5,961.8 | 5,309.0 |
International | |||
Segment Reporting Information [Line Items] | |||
Sales | 128.7 | 122.5 | |
Operating income (loss) | (7.6) | (2.5) | |
Total assets | 401.7 | 394.3 | 420.3 |
Other | |||
Segment Reporting Information [Line Items] | |||
Sales | 4.1 | 6.5 | |
Operating income (loss) | (29.3) | (17.0) | |
Total assets | $ 148.9 | $ 109.1 | $ 110.3 |
Restructuring Plans - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
May 05, 2018 |
Apr. 29, 2017 |
|
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 6.5 | $ 0.0 |
Signet Path to Brillance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring plan, length | 3 years | |
Minimum | Signet Path to Brillance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 170.0 | |
Cash payments | $ 105.0 | |
Net reduction in net selling square feet, percent | 4.00% | |
Maximum | Signet Path to Brillance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 190.0 | |
Cash payments | $ 120.0 | |
Net reduction in net selling square feet, percent | 5.00% | |
Cost Reduction Activities | Minimum | Signet Path to Brillance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 125.0 | |
Cash payments | 60.0 | |
Cost Reduction Activities | Maximum | Signet Path to Brillance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 135.0 | |
Cash payments | $ 65.0 |
Redeemable preferred shares - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Oct. 05, 2016 |
May 05, 2018 |
Apr. 29, 2017 |
Feb. 03, 2018 |
|
Temporary Equity [Line Items] | ||||
Accretion on redeemable convertible preferred shares | $ 8.2 | |||
Series A Redeemable Convertible Preferred Stock | ||||
Temporary Equity [Line Items] | ||||
Redeemable convertible preferred stock, shares issued | 625,000 | |||
Preferred stock, purchase price | $ 625.0 | |||
Shares issued, price per share | $ 1,000 | |||
Preferred stock, dividend rate, percentage | 5.00% | |||
Payments of stock issuance costs | $ 13.7 | |||
Accumulated accretion of dividends | $ 2.7 | $ 1.0 | $ 2.3 | |
Accretion on redeemable convertible preferred shares | $ 0.4 | $ 0.4 |
Redeemable preferred shares - Redeemable Preferred Shares (Details) - Series A Redeemable Convertible Preferred Stock $ / shares in Units, shares in Millions, $ in Millions |
May 05, 2018
USD ($)
$ / shares
shares
|
Feb. 03, 2018
USD ($)
$ / shares
shares
|
Apr. 29, 2017
USD ($)
$ / shares
shares
|
---|---|---|---|
Temporary Equity [Line Items] | |||
Conversion ratio | 10.9409 | 10.9409 | 10.7707 |
Conversion price (USD per share) | $ / shares | $ 91.4002 | $ 91.4002 | $ 92.8445 |
Conversion of stock, shares issued | shares | 6.8 | 6.8 | 6.7 |
Liquidation preference | $ | $ 632.8 | $ 632.8 | $ 632.8 |
Shareholders' equity - Share Repurchase (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
May 05, 2018 |
Apr. 29, 2017 |
|
Class of Stock [Line Items] | ||
Shares repurchased (shares) | 1.5 | 0.0 |
Amount repurchased | $ 60.0 | $ 0.0 |
Average repurchase price per share (usd per share) | $ 39.62 | $ 0.00 |
2017 Program | ||
Class of Stock [Line Items] | ||
Amount authorized | $ 600.0 | |
Shares repurchased (shares) | 0.2 | |
Amount repurchased | $ 9.4 | |
Average repurchase price per share (usd per share) | $ 38.86 | |
2016 Program | ||
Class of Stock [Line Items] | ||
Amount authorized | $ 1,375.0 | |
Shares repurchased (shares) | 1.3 | 0.0 |
Amount repurchased | $ 50.6 | $ 0.0 |
Average repurchase price per share (usd per share) | $ 39.76 | $ 0.00 |
Remaining authorized repurchase amount | $ 590.6 |
Shareholders' equity - Dividends (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
May 05, 2018 |
Apr. 29, 2017 |
Apr. 30, 2016 |
|
Dividends Payable [Line Items] | |||
Dividends declared per share (usd per share) | $ 0.37 | $ 0.31000000 | |
Dividends, common stock | $ 21,800,000 | $ 21,300,000 | |
Cash dividends declared | 0 | ||
Dividends on redeemable convertible preferred shares | 8,200,000 | ||
Series A Redeemable Convertible Preferred Stock | |||
Dividends Payable [Line Items] | |||
Cash dividends declared | 7,800,000 | $ 7,800,000 | |
Dividends on redeemable convertible preferred shares | 400,000 | 400,000 | |
Accrued Expenses | |||
Dividends Payable [Line Items] | |||
Cash dividends declared | $ 7,800,000 | ||
Other Liabilities | |||
Dividends Payable [Line Items] | |||
Cash dividends declared | $ 7,800,000 |
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 05, 2018 |
Apr. 29, 2017 |
|
Earnings Per Share [Abstract] | ||
Net income attributable to common shareholders | $ (504.8) | $ 70.3 |
Dividends on preferred shares | 0.0 | |
Net income | $ (504.8) | $ 70.3 |
Basic weighted average number of shares outstanding (shares) | 59.5 | 68.1 |
Dilutive effect of share awards (shares) | 0.0 | 0.1 |
Diluted weighted average number of shares outstanding (shares) | 59.5 | 68.2 |
Earnings per common share - basic (usd per share) | $ (8.48) | $ 1.03 |
Earnings per common share - diluted (usd per share) | $ (8.48) | $ 1.03 |
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 05, 2018 |
Apr. 29, 2017 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from the calculation of earnings per share (shares) | 7.3 | 7.0 |
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) | 0.5 | 0.3 |
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) | 6.8 | 6.7 |
Accumulated other comprehensive income (loss) - Changes in Accumulated OCI by Component and Reclassifications Out of Accumulated OCI (Details) $ in Millions |
3 Months Ended |
---|---|
May 05, 2018
USD ($)
| |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | $ 2,499.8 |
Other comprehensive income (“OCI”) before reclassifications | (20.4) |
Amounts reclassified from AOCI to net income | (0.1) |
Impact from adoption of new accounting pronouncements | (0.8) |
Total other comprehensive (loss) income | (21.3) |
Ending Balance | 1,892.6 |
Foreign currency translation | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (212.5) |
Other comprehensive income (“OCI”) before reclassifications | (21.7) |
Amounts reclassified from AOCI to net income | 0.0 |
Impact from adoption of new accounting pronouncements | 0.0 |
Total other comprehensive (loss) income | (21.7) |
Ending Balance | (234.2) |
Losses on available-for-sale securities, net | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (0.1) |
Other comprehensive income (“OCI”) before reclassifications | (0.2) |
Amounts reclassified from AOCI to net income | 0.0 |
Impact from adoption of new accounting pronouncements | (0.8) |
Total other comprehensive (loss) income | (1.0) |
Ending Balance | (1.1) |
Gains (losses) on cash flow hedges | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | 0.7 |
Other comprehensive income (“OCI”) before reclassifications | 1.5 |
Amounts reclassified from AOCI to net income | (0.3) |
Impact from adoption of new accounting pronouncements | 0.0 |
Total other comprehensive (loss) income | 1.2 |
Ending Balance | 1.9 |
Accumulated other comprehensive loss | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (260.6) |
Ending Balance | (281.9) |
Pension Plan | Actuarial losses | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (51.1) |
Other comprehensive income (“OCI”) before reclassifications | 0.0 |
Amounts reclassified from AOCI to net income | 0.3 |
Impact from adoption of new accounting pronouncements | 0.0 |
Total other comprehensive (loss) income | 0.3 |
Ending Balance | (50.8) |
Pension Plan | Prior service credits | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | 2.4 |
Other comprehensive income (“OCI”) before reclassifications | 0.0 |
Amounts reclassified from AOCI to net income | (0.1) |
Impact from adoption of new accounting pronouncements | 0.0 |
Total other comprehensive (loss) income | (0.1) |
Ending Balance | $ 2.3 |
Accumulated other comprehensive income (loss) - Reclassifications out of AOCI (Details) - USD ($) $ in Millions |
3 Months Ended | ||||
---|---|---|---|---|---|
May 05, 2018 |
Apr. 29, 2017 |
||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Cost of sales reclassification adjustment | $ 995.8 | $ 912.2 | |||
Interest expense reclassification adjustment | 8.9 | 12.6 | |||
Income before income taxes | 582.5 | (102.7) | |||
Income taxes | (85.9) | 24.2 | |||
Net income | 496.6 | (78.5) | |||
Amounts reclassified from AOCI | (0.1) | (1.1) | |||
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) | (1.9) | |||
Income taxes | 0.2 | 0.5 | |||
Net income | (0.3) | (1.4) | |||
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 reclassification adjustment | 0.3 | (1.0) | |||
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 reclassification adjustment | (0.3) | 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 reclassification adjustment | (0.5) | (1.2) | |||
Actuarial losses | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Reclassification adjustment from AOCI, pension and other postretirement benefit plans, before tax | [1] | 0.3 | 0.7 | ||
Prior service credits | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Reclassification adjustment from AOCI, pension and other postretirement benefit plans, before tax | [1] | (0.1) | (0.4) | ||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Reclassification adjustment from AOCI, pension and other postretirement benefit plans, before tax | 0.2 | 0.3 | |||
Reclassification adjustment from AOCI, pension and other postretirement benefit plans, tax | 0.0 | 0.0 | |||
Amounts reclassified from AOCI | $ 0.2 | $ 0.3 | |||
|
Income taxes - Reconciliation of Statutory Tax Rate to Effective Tax Rate (Details) |
3 Months Ended | |
---|---|---|
May 05, 2018 |
Apr. 29, 2017 |
|
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 28.30% | 23.00% |
Discrete items recognized | (13.50%) | 0.60% |
Effective tax rate recognized in income statement | 14.80% | 23.60% |
Income taxes - Additional Information (Details) |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Nov. 04, 2018 |
May 05, 2018 |
Apr. 29, 2017 |
Nov. 03, 2018 |
|
Tax Credit Carryforward [Line Items] | ||||
Effective income tax rate, percent | 14.80% | 23.60% | ||
Forecast | ||||
Tax Credit Carryforward [Line Items] | ||||
Effective income tax rate, percent | 21.00% | 23.40% |
Accounts receivable, net - Portfolio of Accounts Receivable (Details) - USD ($) $ in Millions |
May 05, 2018 |
Feb. 03, 2018 |
Apr. 29, 2017 |
---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable, net | $ 6.8 | $ 692.5 | $ 1,726.3 |
Consumer Portfolio Segment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable, net | 0.0 | 682.9 | 1,716.6 |
Other Accounts Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable, net | 6.8 | 9.6 | 9.7 |
Sterling Jewelers | Consumer Portfolio Segment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable, net | 0.0 | 649.4 | 1,683.8 |
Zale Jewelry | Consumer Portfolio Segment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable, net | $ 0.0 | $ 33.5 | $ 32.8 |
Accounts receivable, net - Additional Information (Details) - USD ($) $ in Millions |
May 05, 2018 |
Feb. 03, 2018 |
Apr. 29, 2017 |
---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable, net | $ 6.8 | $ 692.5 | $ 1,726.3 |
Other Accounts Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable, net | 6.8 | 9.6 | 9.7 |
International | Other Accounts Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable, net | $ 5.8 | $ 9.3 | $ 8.9 |
Accounts receivable, net - Allowance for Credit Losses (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
May 05, 2018 |
Apr. 29, 2017 |
Feb. 03, 2018 |
|
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | $ (113.5) | ||
Reversal of allowance on receivables previously held for sale | 141.0 | $ 0.0 | |
Ending receivable balance evaluated for impairment | 1,810.7 | $ 762.9 | |
Sterling Jewelers customer in-house finance receivables, net | 6.8 | 1,726.3 | 692.5 |
Consumer Portfolio Segment | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | (113.5) | (138.7) | |
Charge-offs, net | 56.3 | 54.4 | |
Recoveries | 4.2 | 9.1 | |
Provision | (54.6) | (51.7) | |
Reversal of allowance on receivables previously held for sale | 107.6 | 0.0 | |
Ending balance | 0.0 | (126.9) | |
Ending receivable balance evaluated for impairment | 0.0 | 1,810.7 | |
Sterling Jewelers customer in-house finance receivables, net | 0.0 | 1,716.6 | 682.9 |
Sterling Jewelers | Consumer Portfolio Segment | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Sterling Jewelers customer in-house finance receivables, net | $ 0.0 | $ 1,683.8 | $ 649.4 |
Accounts receivable, net - Credit Quality Indicator and Age Analysis (Details) - USD ($) $ in Millions |
Feb. 03, 2018 |
Apr. 29, 2017 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross | $ 762.9 | $ 1,810.7 |
Valuation allowance | $ (113.5) | $ (126.9) |
Valuation allowance | 14.90% | (7.00%) |
Financing Receivables, 0 to 120 Days Past Due | Performing Financing Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross | $ 703.4 | |
Valuation allowance | (54.0) | |
Financing Receivables, 121 Or More Days Past Due | Performing Financing Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross | 59.5 | |
Valuation allowance | $ (59.5) | |
Current, aged 0 – 30 days | Performing Financing Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross | $ 1,445.9 | |
Valuation allowance | (44.5) | |
Past due, aged 31 – 60 days | Performing Financing Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross | 251.9 | |
Valuation allowance | (8.3) | |
Past due, aged 61 – 90 days | Performing Financing Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross | 40.9 | |
Valuation allowance | (2.1) | |
Past due, aged more than 90 days | Nonperforming Financing Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross | 72.0 | |
Valuation allowance | $ (72.0) |
Inventories - Summary of Inventory Components (Details) - USD ($) $ in Millions |
May 05, 2018 |
Feb. 03, 2018 |
Apr. 29, 2017 |
---|---|---|---|
Inventory Disclosure [Abstract] | |||
Raw materials | $ 69.7 | $ 72.0 | $ 51.2 |
Finished goods | 2,359.3 | 2,208.5 | 2,381.2 |
Total inventories | $ 2,429.0 | $ 2,280.5 | $ 2,432.4 |
Goodwill and intangibles - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Sep. 12, 2017 |
May 05, 2018 |
Apr. 29, 2017 |
|
Finite-Lived Intangible Assets [Line Items] | |||
Goodwilll, acquired during period | $ 301.7 | ||
Goodwill and intangible impairments | $ 448.7 | $ 0.0 | |
Impairment | (308.8) | ||
R2Net Inc. | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwilll, acquired during period | $ 299.1 | ||
Sterling Jewelers | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment | 23.2 | ||
Zale Jewelry | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment | 285.6 | ||
Impairment of intangible assets (excluding goodwill) | $ 139.9 |
Goodwill and intangibles - Summary of Goodwill (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
May 05, 2018 |
Apr. 29, 2017 |
|
Goodwill [Roll Forward] | ||
Beginning Balance | $ 821.7 | $ 517.6 |
Acquisitions | 301.7 | |
Impairment | (308.8) | |
Impact of foreign exchange and other adjustments | (3.8) | 2.4 |
Ending Balance | 509.1 | 516.1 |
Intangible assets, purchase accounting adjustments | 2.6 | |
North America | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 818.1 | 514.0 |
Acquisitions | 301.7 | |
Impairment | (308.8) | |
Impact of foreign exchange and other adjustments | (3.8) | 2.4 |
Ending Balance | 505.5 | |
Other | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 3.6 | 3.6 |
Acquisitions | 0.0 | |
Impairment | 0.0 | |
Impact of foreign exchange and other adjustments | 0.0 | $ 0.0 |
Ending Balance | $ 3.6 |
Goodwill and intangibles - Composition of Finite-Lived Intangibles (Details) - USD ($) $ in Millions |
May 05, 2018 |
Feb. 03, 2018 |
Apr. 29, 2017 |
---|---|---|---|
Intangible assets, net: | |||
Gross carrying amount | $ 53.5 | $ 49.8 | $ 48.6 |
Accumulated amortization | (47.2) | (46.7) | (39.7) |
Net carrying amount | 6.3 | 3.1 | 8.9 |
Intangible assets, gross | 530.1 | 528.2 | 451.6 |
Accumulated amortization, net | (47.2) | (46.7) | (39.7) |
Total intangible assets, net | 343.2 | 481.5 | 411.9 |
Definite-lived intangible liabilities: | |||
Gross carrying amount | (114.1) | (114.5) | (113.5) |
Accumulated amortization | 87.1 | 85.2 | 76.2 |
Total | (27.0) | (29.3) | (37.3) |
Trade names | |||
Intangible assets, net: | |||
Indefinite-lived intangible assets, gross | 476.6 | 478.4 | 403.0 |
Accumulated amortization | (139.7) | ||
Indefinite-lived intangible assets | $ 336.9 | $ 478.4 | $ 403.0 |
Derivatives - Additional Information (Details) oz in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
May 05, 2018
USD ($)
oz
|
Apr. 29, 2017
USD ($)
oz
|
Jan. 28, 2017 |
Feb. 03, 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 | $ 104,300,000 | $ 47,900,000 | $ 112,700,000 | ||
Cash Flow Hedging | |||||
Derivative [Line Items] | |||||
Cash flow hedge gain to be reclassified within twelve months | 2,500,000 | ||||
Cash Flow Hedging | Foreign currency contracts | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | $ 22,200,000 | $ 37,400,000 | $ 26,600,000 | ||
Derivative, remaining maturity | 11 months | 12 months | 11 months | ||
Cash Flow Hedging | Commodity contracts | |||||
Derivative [Line Items] | |||||
Derivative, remaining maturity | 9 months | 9 months | 12 months | ||
Derivative, notional amount in gold | oz | 5 | 69 | 6 |
Derivatives - Fair Value of Presentation of Derivative Assets and Liabilities (Details) - USD ($) $ in Millions |
May 05, 2018 |
Feb. 03, 2018 |
Apr. 29, 2017 |
---|---|---|---|
Derivatives, Fair Value [Line Items] | |||
Fair value of derivative liabilities | $ (1.2) | $ (2.4) | $ (1.3) |
Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value of derivative assets | 2.8 | 2.2 | 3.2 |
Fair value of derivative liabilities | (0.2) | (1.5) | (0.8) |
Foreign currency contracts | Designated as Hedging Instrument | Other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value of derivative assets | 0.4 | 0.0 | 0.4 |
Foreign currency contracts | Designated as Hedging Instrument | Other current liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of derivative liabilities | (0.2) | (1.4) | (0.8) |
Foreign currency contracts | Not Designated as Hedging Instrument | Other current liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of derivative liabilities | (1.0) | (0.9) | (0.5) |
Commodity contracts | Designated as Hedging Instrument | Other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value of derivative assets | 0.1 | 0.0 | 2.0 |
Commodity contracts | Designated as Hedging Instrument | Other assets | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value of derivative assets | 2.3 | 2.2 | 0.8 |
Commodity contracts | Designated as Hedging Instrument | Other current liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of derivative liabilities | $ 0.0 | $ (0.1) | $ 0.0 |
Derivatives - Derivative Instruments Designated as Cash Flow Hedges in OCI (Details) - Cash Flow Hedging - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
May 05, 2018 |
Apr. 29, 2017 |
|
Movement in Accumulated Other Comprehensive Income [Roll Forward] | ||
Gains (losses) recorded in AOCI, beginning of period | $ 1.2 | |
Gains recorded in AOCI, end of period | 2.6 | $ 5.0 |
Foreign currency contracts | ||
Movement in Accumulated Other Comprehensive Income [Roll Forward] | ||
Gains (losses) recorded in AOCI, beginning of period | (2.4) | 4.1 |
Current period gains recognized in OCI | 1.3 | (1.0) |
Gains recorded in AOCI, end of period | (0.8) | 2.1 |
Commodity contracts | ||
Movement in Accumulated Other Comprehensive Income [Roll Forward] | ||
Gains (losses) recorded in AOCI, beginning of period | 1.4 | (2.1) |
Current period gains recognized in OCI | 0.2 | 5.4 |
Gains recorded in AOCI, end of period | 1.1 | 2.1 |
Interest Rate Contract | ||
Movement in Accumulated Other Comprehensive Income [Roll Forward] | ||
Gains (losses) recorded in AOCI, beginning of period | 2.2 | 0.4 |
Current period gains recognized in OCI | 0.4 | 0.1 |
Gains recorded in AOCI, end of period | 2.3 | 0.8 |
Interest rate swaps | ||
Movement in Accumulated Other Comprehensive Income [Roll Forward] | ||
Gains (losses) recorded in AOCI, beginning of period | 2.2 | |
Gains recorded in AOCI, end of period | 2.3 | 0.8 |
Cost of Sales | Foreign currency contracts | ||
Movement in Accumulated Other Comprehensive Income [Roll Forward] | ||
Gains reclassified from AOCI to net income | 0.3 | (1.0) |
Cost of Sales | Commodity contracts | ||
Movement in Accumulated Other Comprehensive Income [Roll Forward] | ||
Gains reclassified from AOCI to net income | (0.5) | (1.2) |
Interest expense, net | Interest Rate Contract | ||
Movement in Accumulated Other Comprehensive Income [Roll Forward] | ||
Gains reclassified from AOCI to net income | $ (0.3) | $ 0.3 |
Derivatives - Derivatives not Designated as Hedging Instruments (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
May 05, 2018 |
Apr. 29, 2017 |
|
Not Designated as Hedging Instrument | Foreign currency contracts | Other Income | ||
Derivative [Line Items] | ||
Foreign currency contracts not designated as hedging | $ (4.8) | $ (1.7) |
Fair value measurements - Fair Value of Assets and Liabilities (Details) - USD ($) $ in Millions |
May 05, 2018 |
Feb. 03, 2018 |
Apr. 29, 2017 |
---|---|---|---|
Quoted prices in active markets for identical assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | $ 11.6 | $ 12.0 | $ 11.9 |
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 | 18.1 | 18.1 | 19.2 |
Liabilities | (1.2) | (2.4) | (1.3) |
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 | 7.3 | 7.5 | 7.9 |
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 | 4.3 | 4.5 | 4.0 |
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 | 0.4 | 0.0 | 0.4 |
Liabilities | (1.2) | (2.3) | (1.3) |
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 | 0.1 | 0.0 | 2.0 |
Liabilities | 0.0 | (0.1) | 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 | 2.3 | 2.2 | 0.8 |
US government agency securities | Quoted prices in active markets for identical assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 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 | 4.7 | 5.1 | 4.9 |
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 | 10.6 | 10.8 | 11.1 |
Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 29.7 | 30.1 | 31.1 |
Liabilities | (1.2) | (2.4) | (1.3) |
Carrying Value | US Treasury securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 7.3 | 7.5 | 7.9 |
Carrying Value | Corporate equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 4.3 | 4.5 | 4.0 |
Carrying Value | Foreign currency contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 0.4 | 0.0 | 0.4 |
Liabilities | (1.2) | (2.3) | (1.3) |
Carrying Value | Commodity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 0.1 | 0.0 | 2.0 |
Liabilities | 0.0 | (0.1) | 0.0 |
Carrying Value | Interest rate swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 2.3 | 2.2 | 0.8 |
Carrying Value | US government agency securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 4.7 | 5.1 | 4.9 |
Carrying Value | Corporate bonds and notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | $ 10.6 | $ 10.8 | $ 11.1 |
Fair value measurements - Outstanding Debt (Details) - USD ($) $ in Millions |
May 05, 2018 |
Feb. 03, 2018 |
Apr. 29, 2017 |
---|---|---|---|
Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Outstanding debt | $ 711.6 | $ 718.0 | $ 1,334.4 |
Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Outstanding debt | 701.8 | 722.5 | 1,340.6 |
Senior Notes | Level 2 | Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Outstanding debt | 394.6 | 394.5 | 393.9 |
Senior Notes | Level 2 | Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Outstanding debt | 382.3 | 396.3 | 396.5 |
Securitization Facility | Level 2 | Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Outstanding debt | 0.0 | 0.0 | 599.7 |
Securitization Facility | Level 2 | Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Outstanding debt | 0.0 | 0.0 | 600.0 |
Term Loan | Level 2 | Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Outstanding debt | 317.0 | 323.5 | 340.8 |
Term Loan | Level 2 | Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Outstanding debt | $ 319.5 | $ 326.2 | $ 344.1 |
Loans, overdrafts and long-term debt (Details) - USD ($) $ in Millions |
May 05, 2018 |
Feb. 03, 2018 |
Apr. 29, 2017 |
---|---|---|---|
Debt Disclosure [Abstract] | |||
Senior unsecured notes due 2024, net of unamortized discount | $ 398.9 | $ 398.9 | $ 398.8 |
Securitization facility | 0.0 | 0.0 | 600.0 |
Senior unsecured term loan | 319.5 | 326.2 | 344.1 |
Revolving credit facility | 40.0 | 0.0 | 63.0 |
Bank overdrafts | 0.3 | 14.2 | 45.4 |
Total debt | 758.7 | 739.3 | 1,451.3 |
Less: Current portion of loans and overdrafts | (72.3) | (44.0) | (131.5) |
Less: Unamortized capitalized debt issuance fees | (6.7) | (7.1) | (8.2) |
Long-term debt | $ 679.7 | $ 688.2 | $ 1,311.6 |
Loans, overdrafts and long-term debt - Additional Information (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
May 05, 2018 |
Apr. 29, 2017 |
Feb. 03, 2018 |
|
Debt Instrument [Line Items] | |||
Amortization of financing costs | $ (400,000) | $ (600,000) | |
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 | 1,300,000 | 900,000 | $ 1,200,000 |
Amortization of financing costs | (100,000) | (100,000) | |
Letters of credit outstanding | $ 14,500,000 | $ 15,300,000 | 15,700,000 |
Weighted average interest rate | 3.30% | 2.11% | |
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 | 3,700,000 | $ 2,900,000 | 3,500,000 |
Amortization of financing costs | $ (200,000) | $ (200,000) | |
Weighted average interest rate | 3.10% | 2.13% | |
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 | 2,700,000 | $ 2,100,000 | $ 2,600,000 |
Amortization of financing costs | $ (100,000) | $ (200,000) | |
Stated interest rate | 4.70% |
Warranty reserve - Rollforward (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
May 05, 2018 |
Apr. 29, 2017 |
|
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 37.2 | $ 40.0 |
Warranty expense | 1.4 | 2.3 |
Utilized | (3.0) | (3.1) |
Balance at end of period | $ 35.6 | $ 39.2 |
Warranty reserve (Details) - USD ($) $ in Millions |
May 05, 2018 |
Feb. 03, 2018 |
Apr. 29, 2017 |
Jan. 28, 2017 |
---|---|---|---|---|
Other Liabilities Disclosure [Abstract] | ||||
Current liabilities | $ 11.0 | $ 11.5 | $ 12.6 | |
Non-current liabilities | 24.6 | 25.7 | 26.6 | |
Product warranty accrual | $ 35.6 | $ 37.2 | $ 39.2 | $ 40.0 |
Share-based compensation - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
May 05, 2018 |
Apr. 29, 2017 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Share-based compensation expense | $ 1.8 | $ 2.7 |
Commitments and contingencies - Additional information (Details) |
1 Months Ended | 12 Months Ended | |
---|---|---|---|
Aug. 01, 2016
employee
|
Aug. 31, 2016
lawsuit
|
Feb. 03, 2018
employee
|
|
EPA Collective Action | |||
Loss Contingencies [Line Items] | |||
Number of employees opted in lawsuit | employee | 10,314 | 9,124 | |
S.D.N.Y. Cases | |||
Loss Contingencies [Line Items] | |||
New claims filed, number | lawsuit | 2 |
Condensed consolidating financial information - Narrative (Details) |
May 05, 2018 |
---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Parent's ownership in guarantor subsidiary (percent) | 100.00% |
Condensed consolidating financial information - Condensed consolidated income statement (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
May 05, 2018 |
Apr. 29, 2017 |
|
Condensed Income Statements, Captions [Line Items] | ||
Sales | $ 1,480.6 | $ 1,403.4 |
Cost of sales | (995.8) | (912.2) |
Gross margin | 484.8 | 491.2 |
Selling, general and administrative expenses | (482.8) | (452.8) |
Credit transaction, net | (143.1) | 0.0 |
Restructuring charges | (6.5) | 0.0 |
Goodwill and intangible impairments | (448.7) | 0.0 |
Other operating income, net | 22.1 | 76.9 |
Operating (loss) income | (574.2) | 115.3 |
Intra-entity interest income (expense) | 0.0 | 0.0 |
Interest expense, net | (8.9) | (12.6) |
Other non-operating income | 0.6 | 0.0 |
(Loss) income before income taxes | (582.5) | 102.7 |
Income taxes | 85.9 | (24.2) |
Equity in income of subsidiaries | 0.0 | 0.0 |
Net (loss) income | (496.6) | 78.5 |
Dividends on redeemable convertible preferred shares | (8.2) | (8.2) |
Net income attributable to common shareholders | (504.8) | 70.3 |
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 | |
Goodwill and intangible impairments | 0.0 | |
Other operating income, net | 0.0 | 0.0 |
Operating (loss) income | 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 | |
(Loss) income before income taxes | 0.0 | 0.0 |
Income taxes | 0.0 | 0.0 |
Equity in income of subsidiaries | 1,628.7 | (109.7) |
Net (loss) income | 1,628.7 | (109.7) |
Dividends on redeemable convertible preferred shares | 0.0 | 0.0 |
Net income attributable to common shareholders | 1,628.7 | (109.7) |
Guarantor Subsidiaries | Reportable Legal Entities | ||
Condensed Income Statements, Captions [Line Items] | ||
Sales | 1,356.5 | 1,325.2 |
Cost of sales | (936.3) | (895.4) |
Gross margin | 420.2 | 429.8 |
Selling, general and administrative expenses | (444.4) | (421.5) |
Credit transaction, net | (143.1) | |
Restructuring charges | (5.5) | |
Goodwill and intangible impairments | (448.7) | |
Other operating income, net | 22.6 | 77.2 |
Operating (loss) income | (598.9) | 85.5 |
Intra-entity interest income (expense) | (44.8) | (45.4) |
Interest expense, net | (4.0) | (4.1) |
Other non-operating income | 0.6 | |
(Loss) income before income taxes | (647.1) | 36.0 |
Income taxes | 79.4 | (15.4) |
Equity in income of subsidiaries | (565.1) | 8.7 |
Net (loss) income | (1,132.8) | 29.3 |
Dividends on redeemable convertible preferred shares | 0.0 | 0.0 |
Net income attributable to common shareholders | (1,132.8) | 29.3 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
Condensed Income Statements, Captions [Line Items] | ||
Sales | 124.1 | 78.2 |
Cost of sales | (59.5) | (16.8) |
Gross margin | 64.6 | 61.4 |
Selling, general and administrative expenses | (38.3) | (31.1) |
Credit transaction, net | 0.0 | |
Restructuring charges | (1.0) | |
Goodwill and intangible impairments | 0.0 | |
Other operating income, net | (0.4) | (0.3) |
Operating (loss) income | 24.9 | 30.0 |
Intra-entity interest income (expense) | 40.8 | 40.7 |
Interest expense, net | 0.0 | (3.6) |
Other non-operating income | 0.0 | |
(Loss) income before income taxes | 65.7 | 67.1 |
Income taxes | 6.5 | (8.8) |
Equity in income of subsidiaries | (567.9) | 22.3 |
Net (loss) income | (495.7) | 80.6 |
Dividends on redeemable convertible preferred shares | 0.0 | 0.0 |
Net income attributable to common shareholders | (495.7) | 80.6 |
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 | (0.1) | (0.2) |
Credit transaction, net | 0.0 | |
Restructuring charges | 0.0 | |
Goodwill and intangible impairments | 0.0 | |
Other operating income, net | (0.1) | 0.0 |
Operating (loss) income | (0.2) | (0.2) |
Intra-entity interest income (expense) | (0.7) | 0.0 |
Interest expense, net | 0.0 | 0.0 |
Other non-operating income | 0.0 | |
(Loss) income before income taxes | (0.9) | (0.2) |
Income taxes | 0.0 | 0.0 |
Equity in income of subsidiaries | (495.7) | 78.7 |
Net (loss) income | (496.6) | 78.5 |
Dividends on redeemable convertible preferred shares | (8.2) | (8.2) |
Net income attributable to common shareholders | (504.8) | 70.3 |
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 | |
Goodwill and intangible impairments | 0.0 | |
Other operating income, net | 0.0 | 0.0 |
Operating (loss) income | 0.0 | 0.0 |
Intra-entity interest income (expense) | 4.7 | 4.7 |
Interest expense, net | (4.9) | (4.9) |
Other non-operating income | 0.0 | |
(Loss) income before income taxes | (0.2) | (0.2) |
Income taxes | 0.0 | 0.0 |
Equity in income of subsidiaries | 0.0 | 0.0 |
Net (loss) income | (0.2) | (0.2) |
Dividends on redeemable convertible preferred shares | 0.0 | 0.0 |
Net income attributable to common shareholders | $ (0.2) | $ (0.2) |
Condensed consolidating financial information - Condensed consolidated statement of comprehensive income (loss) (Details) - USD ($) $ in Millions |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
May 05, 2018 |
Apr. 29, 2017 |
||||||
Condensed Statement of Comprehensive Income [Line Items] | |||||||
Net income | $ (496.6) | $ 78.5 | |||||
Other comprehensive income (loss): | |||||||
Foreign currency translation adjustments | (21.7) | 0.5 | |||||
Available-for-sale securities: | |||||||
Unrealized loss | [1] | (0.2) | 0.2 | ||||
Impact from adoption of new accounting pronouncements | [2] | (0.8) | |||||
Cash flow hedges: | |||||||
Unrealized gain | 1.5 | 2.7 | |||||
Reclassification adjustment for losses to net income | (0.3) | (1.4) | |||||
Pension plan: | |||||||
Reclassification adjustment to net income for amortization of actuarial loss | 0.3 | 0.6 | |||||
Reclassification adjustment to net income for amortization of prior service credits | (0.1) | (0.3) | |||||
Total other comprehensive loss | (21.3) | 2.3 | |||||
Total comprehensive loss | (517.9) | 80.8 | |||||
Consolidation, Eliminations | |||||||
Condensed Statement of Comprehensive Income [Line Items] | |||||||
Net income | 1,628.7 | (109.7) | |||||
Other comprehensive income (loss): | |||||||
Foreign currency translation adjustments | 21.7 | (0.5) | |||||
Available-for-sale securities: | |||||||
Unrealized loss | 0.2 | (0.2) | |||||
Impact from adoption of new accounting pronouncements | 0.8 | ||||||
Cash flow hedges: | |||||||
Unrealized gain | (1.5) | (2.7) | |||||
Reclassification adjustment for losses to net income | 0.3 | 1.4 | |||||
Pension plan: | |||||||
Reclassification adjustment to net income for amortization of actuarial loss | (0.3) | (0.6) | |||||
Reclassification adjustment to net income for amortization of prior service credits | 0.1 | 0.3 | |||||
Total other comprehensive loss | 21.3 | (2.3) | |||||
Total comprehensive loss | 1,650.0 | (112.0) | |||||
Guarantor Subsidiaries | Reportable Legal Entities | |||||||
Condensed Statement of Comprehensive Income [Line Items] | |||||||
Net income | (1,132.8) | 29.3 | |||||
Other comprehensive income (loss): | |||||||
Foreign currency translation adjustments | (21.5) | 0.5 | |||||
Available-for-sale securities: | |||||||
Unrealized loss | 0.0 | 0.0 | |||||
Impact from adoption of new accounting pronouncements | 0.0 | ||||||
Cash flow hedges: | |||||||
Unrealized gain | 1.5 | 2.7 | |||||
Reclassification adjustment for losses to net income | (0.3) | (1.4) | |||||
Pension plan: | |||||||
Reclassification adjustment to net income for amortization of actuarial loss | 0.3 | 0.6 | |||||
Reclassification adjustment to net income for amortization of prior service credits | (0.1) | (0.3) | |||||
Total other comprehensive loss | (20.1) | 2.1 | |||||
Total comprehensive loss | (1,152.9) | 31.4 | |||||
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||||||
Condensed Statement of Comprehensive Income [Line Items] | |||||||
Net income | (495.7) | 80.6 | |||||
Other comprehensive income (loss): | |||||||
Foreign currency translation adjustments | (0.2) | ||||||
Available-for-sale securities: | |||||||
Unrealized loss | (0.2) | 0.2 | |||||
Impact from adoption of new accounting pronouncements | (0.8) | ||||||
Cash flow hedges: | |||||||
Unrealized gain | 0.0 | 0.0 | |||||
Reclassification adjustment for losses to net income | 0.0 | 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 | 0.0 | |||||
Total other comprehensive loss | (1.2) | 0.2 | |||||
Total comprehensive loss | (496.9) | 80.8 | |||||
Signet Jewelers Limited | Reportable Legal Entities | |||||||
Condensed Statement of Comprehensive Income [Line Items] | |||||||
Net income | (496.6) | 78.5 | |||||
Other comprehensive income (loss): | |||||||
Foreign currency translation adjustments | (21.7) | 0.5 | |||||
Available-for-sale securities: | |||||||
Unrealized loss | (0.2) | 0.2 | |||||
Impact from adoption of new accounting pronouncements | (0.8) | ||||||
Cash flow hedges: | |||||||
Unrealized gain | 1.5 | 2.7 | |||||
Reclassification adjustment for losses to net income | (0.3) | (1.4) | |||||
Pension plan: | |||||||
Reclassification adjustment to net income for amortization of actuarial loss | 0.3 | 0.6 | |||||
Reclassification adjustment to net income for amortization of prior service credits | (0.1) | (0.3) | |||||
Total other comprehensive loss | (21.3) | 2.3 | |||||
Total comprehensive loss | (517.9) | 80.8 | |||||
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 | 0.0 | 0.0 | |||||
Reclassification adjustment for losses to net income | 0.0 | 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 | 0.0 | |||||
Total other comprehensive loss | 0.0 | 0.0 | |||||
Total comprehensive loss | $ (0.2) | $ (0.2) | |||||
|
Condensed consolidating financial information - Condensed consolidated balance sheet (Details) - USD ($) $ in Millions |
May 05, 2018 |
Feb. 03, 2018 |
Apr. 29, 2017 |
Jan. 28, 2017 |
---|---|---|---|---|
Current assets: | ||||
Cash and cash equivalents | $ 153.9 | $ 225.1 | $ 99.7 | $ 98.7 |
Accounts receivable, held for sale | 484.6 | 0.0 | 0.0 | |
Accounts receivable, net | 6.8 | 692.5 | 1,726.3 | |
Intra-entity receivables, net | 0.0 | 0.0 | 0.0 | |
Other receivables | 83.6 | 87.2 | 88.6 | |
Other current assets | 153.2 | 158.2 | 159.0 | |
Income taxes | 55.2 | 2.6 | 1.8 | |
Inventories | 2,429.0 | 2,280.5 | 2,432.4 | |
Total current assets | 3,366.3 | 3,446.1 | 4,507.8 | |
Non-current assets: | ||||
Property, plant and equipment, net | 847.2 | 877.9 | 829.8 | |
Goodwill | 509.1 | 821.7 | 516.1 | 517.6 |
Intangible assets, net | 343.2 | 481.5 | 411.9 | |
Investment in subsidiaries | 0.0 | 0.0 | ||
Intra-entity receivables, net | 0.0 | 0.0 | ||
Other assets | 167.0 | 171.2 | 165.1 | |
Deferred tax assets | 0.8 | 1.4 | 0.6 | |
Retirement benefit asset | 39.3 | 39.8 | 33.9 | |
Total assets | 5,272.9 | 5,839.6 | 6,465.2 | |
Current liabilities: | ||||
Loans and overdrafts | 72.3 | 44.0 | 131.5 | |
Accounts payable | 287.5 | 237.0 | 177.8 | |
Intra-entity payables, net | 0.0 | 0.0 | ||
Accrued expenses and other current liabilities | 463.7 | 448.0 | 400.3 | |
Deferred revenue | 284.9 | 288.6 | 272.1 | |
Income taxes | 0.0 | 19.6 | 34.2 | |
Total current liabilities | 1,108.4 | 1,037.2 | 1,015.9 | |
Non-current liabilities: | ||||
Long-term debt | 679.7 | 688.2 | 1,311.6 | |
Other liabilities | 236.5 | 239.6 | 206.2 | |
Deferred revenue | 667.5 | 668.9 | 658.6 | |
Deferred tax liabilities | 74.2 | 92.3 | 117.2 | |
Total liabilities | 2,766.3 | 2,726.2 | 3,309.5 | |
Shareholders’ equity: | ||||
Total shareholders’ equity | 1,892.6 | 2,499.8 | 2,543.4 | |
Total liabilities, redeemable convertible preferred shares and shareholders’ equity | 5,272.9 | 5,839.6 | 6,465.2 | |
Consolidation, Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0.0 | 0.0 | 0.0 | 0.0 |
Accounts receivable, held for sale | 0.0 | |||
Accounts receivable, net | 0.0 | 0.0 | 0.0 | |
Intra-entity receivables, net | (245.1) | (169.8) | (87.0) | |
Other receivables | 0.0 | 0.0 | 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 | (245.1) | (169.8) | (87.0) | |
Non-current assets: | ||||
Property, plant and equipment, net | 0.0 | 0.0 | ||
Goodwill | 0.0 | 0.0 | ||
Intangible assets, net | 0.0 | 0.0 | 0.0 | |
Investment in subsidiaries | (3,166.8) | (4,919.8) | (4,552.1) | |
Intra-entity receivables, net | (3,225.0) | (3,259.0) | (4,045.3) | |
Other assets | 0.0 | 0.0 | ||
Deferred tax assets | 0.0 | 0.0 | ||
Retirement benefit asset | 0.0 | 0.0 | ||
Total assets | (6,636.9) | (8,348.6) | (8,684.4) | |
Current liabilities: | ||||
Loans and overdrafts | 0.0 | 0.0 | 0.0 | |
Accounts payable | 0.0 | 0.0 | 0.0 | |
Intra-entity payables, net | (245.1) | (169.8) | (87.0) | |
Accrued expenses and other current liabilities | 0.0 | 0.0 | 0.0 | |
Deferred revenue | 0.0 | 0.0 | 0.0 | |
Income taxes | 0.0 | 0.0 | ||
Total current liabilities | (245.1) | (169.8) | (87.0) | |
Non-current liabilities: | ||||
Long-term debt | 0.0 | |||
Intra-entity payables, net | (3,225.0) | (3,259.0) | (4,045.3) | |
Other liabilities | 0.0 | |||
Deferred revenue | 0.0 | |||
Deferred tax liabilities | 0.0 | 0.0 | ||
Total liabilities | (3,470.1) | (3,428.8) | (4,132.3) | |
Shareholders’ equity: | ||||
Total shareholders’ equity | (3,166.8) | (4,919.8) | (4,552.1) | |
Total liabilities, redeemable convertible preferred shares and shareholders’ equity | (6,636.9) | (8,348.6) | (8,684.4) | |
Guarantor Subsidiaries | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 102.5 | 150.5 | 72.9 | 70.3 |
Accounts receivable, held for sale | 484.6 | |||
Accounts receivable, net | 5.8 | 692.5 | 1,726.1 | |
Intra-entity receivables, net | 0.0 | 0.0 | 87.0 | |
Other receivables | 58.4 | 62.0 | 62.3 | |
Other current assets | 150.2 | 154.4 | 154.0 | |
Income taxes | 32.0 | 2.6 | 1.8 | |
Inventories | 2,360.6 | 2,201.3 | 2,362.0 | |
Total current assets | 3,194.1 | 3,263.3 | 4,466.1 | |
Non-current assets: | ||||
Property, plant and equipment, net | 839.7 | 870.1 | 825.6 | |
Goodwill | 206.4 | 516.4 | 512.5 | |
Intangible assets, net | 268.4 | 410.9 | 411.9 | |
Investment in subsidiaries | 579.4 | 1,163.6 | 734.5 | |
Intra-entity receivables, net | 0.0 | 0.0 | ||
Other assets | 137.1 | 140.1 | 134.1 | |
Deferred tax assets | 0.8 | 1.3 | 0.5 | |
Retirement benefit asset | 39.3 | 39.8 | 33.9 | |
Total assets | 5,265.2 | 6,405.5 | 7,119.1 | |
Current liabilities: | ||||
Loans and overdrafts | 73.0 | 44.7 | 132.2 | |
Accounts payable | 257.2 | 202.2 | 170.6 | |
Intra-entity payables, net | 208.8 | 158.5 | 0.0 | |
Accrued expenses and other current liabilities | 403.7 | 397.5 | 343.9 | |
Deferred revenue | 272.1 | 276.2 | 272.1 | |
Income taxes | 36.7 | 36.3 | ||
Total current liabilities | 1,214.8 | 1,115.8 | 955.1 | |
Non-current liabilities: | ||||
Long-term debt | 284.3 | 293.0 | 317.1 | |
Intra-entity payables, net | 3,225.0 | 3,259.0 | 4,045.3 | |
Other liabilities | 231.5 | 233.0 | 200.9 | |
Deferred revenue | 667.5 | 668.9 | 658.6 | |
Deferred tax liabilities | 57.5 | 76.7 | 117.1 | |
Total liabilities | 5,680.6 | 5,646.4 | 6,294.1 | |
Shareholders’ equity: | ||||
Total shareholders’ equity | (415.4) | 759.1 | 825.0 | |
Total liabilities, redeemable convertible preferred shares and shareholders’ equity | 5,265.2 | 6,405.5 | 7,119.1 | |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 50.0 | 72.8 | 25.7 | 26.6 |
Accounts receivable, held for sale | 0.0 | |||
Accounts receivable, net | 1.0 | 0.2 | ||
Intra-entity receivables, net | 237.3 | 166.9 | 0.0 | |
Other receivables | 25.2 | 25.2 | 26.3 | |
Other current assets | 3.0 | 3.8 | 4.9 | |
Income taxes | 23.2 | 0.0 | ||
Inventories | 68.4 | 79.2 | 70.4 | |
Total current assets | 408.1 | 347.9 | 127.5 | |
Non-current assets: | ||||
Property, plant and equipment, net | 7.5 | 7.8 | 4.2 | |
Goodwill | 302.7 | 305.3 | 3.6 | |
Intangible assets, net | 74.8 | 70.6 | 0.0 | |
Investment in subsidiaries | 15.6 | 606.0 | 616.8 | |
Intra-entity receivables, net | 2,825.0 | 2,859.0 | 3,637.5 | |
Other assets | 29.9 | 31.1 | 31.0 | |
Deferred tax assets | 0.1 | 0.1 | ||
Retirement benefit asset | 0.0 | 0.0 | ||
Total assets | 3,663.6 | 4,227.8 | 4,420.7 | |
Current liabilities: | ||||
Loans and overdrafts | 0.0 | 0.0 | 0.0 | |
Accounts payable | 30.3 | 34.8 | 7.2 | |
Intra-entity payables, net | 0.0 | 0.0 | 70.8 | |
Accrued expenses and other current liabilities | 22.7 | 20.9 | 19.2 | |
Deferred revenue | 12.8 | 12.4 | 0.0 | |
Income taxes | (16.9) | (2.1) | ||
Total current liabilities | 65.8 | 51.2 | 95.1 | |
Non-current liabilities: | ||||
Long-term debt | 600.0 | |||
Other liabilities | 5.0 | 6.6 | 5.3 | |
Deferred revenue | 0.0 | |||
Deferred tax liabilities | 16.7 | 15.6 | 0.1 | |
Total liabilities | 87.5 | 73.4 | 700.5 | |
Shareholders’ equity: | ||||
Total shareholders’ equity | 3,576.1 | 4,154.4 | 3,720.2 | |
Total liabilities, redeemable convertible preferred shares and shareholders’ equity | 3,663.6 | 4,227.8 | 4,420.7 | |
Signet Jewelers Limited | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 1.3 | 1.7 | 1.0 | 1.7 |
Accounts receivable, held for sale | 0.0 | |||
Accounts receivable, net | 0.0 | 0.0 | 0.0 | |
Intra-entity receivables, net | 0.0 | |||
Other receivables | 0.0 | 0.0 | 0.0 | |
Other current assets | 0.0 | 0.1 | ||
Income taxes | 0.0 | 0.0 | 0.0 | |
Inventories | 0.0 | 0.0 | 0.0 | |
Total current assets | 1.3 | 1.7 | 1.1 | |
Non-current assets: | ||||
Property, plant and equipment, net | 0.0 | 0.0 | ||
Goodwill | 0.0 | 0.0 | ||
Intangible assets, net | 0.0 | 0.0 | 0.0 | |
Investment in subsidiaries | 2,571.8 | 3,150.2 | 3,200.8 | |
Intra-entity receivables, net | 0.0 | 0.0 | ||
Other assets | 0.0 | 0.0 | ||
Deferred tax assets | 0.0 | 0.0 | ||
Retirement benefit asset | 0.0 | 0.0 | ||
Total assets | 2,573.1 | 3,151.9 | 3,201.9 | |
Current liabilities: | ||||
Loans and overdrafts | 0.0 | 0.0 | 0.0 | |
Accounts payable | 0.0 | 0.0 | 0.0 | |
Intra-entity payables, net | 36.3 | 11.3 | 16.2 | |
Accrued expenses and other current liabilities | 30.2 | 27.2 | 30.0 | |
Deferred revenue | 0.0 | 0.0 | 0.0 | |
Income taxes | 0.0 | 0.0 | ||
Total current liabilities | 66.5 | 38.5 | 46.2 | |
Non-current liabilities: | ||||
Long-term debt | 0.0 | |||
Other liabilities | 0.0 | |||
Deferred revenue | 0.0 | |||
Deferred tax liabilities | 0.0 | 0.0 | ||
Total liabilities | 66.5 | 38.5 | 46.2 | |
Shareholders’ equity: | ||||
Total shareholders’ equity | 1,892.6 | 2,499.8 | 2,543.4 | |
Total liabilities, redeemable convertible preferred shares and shareholders’ equity | 2,573.1 | 3,151.9 | 3,201.9 | |
Signet UK Finance plc | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 0.1 | 0.1 | 0.1 | $ 0.1 |
Accounts receivable, held for sale | 0.0 | |||
Accounts receivable, net | 0.0 | 0.0 | 0.0 | |
Intra-entity receivables, net | 7.8 | 2.9 | 0.0 | |
Other receivables | 0.0 | 0.0 | 0.0 | |
Other current assets | 0.0 | 0.0 | ||
Income taxes | 0.0 | 0.0 | 0.0 | |
Inventories | 0.0 | 0.0 | 0.0 | |
Total current assets | 7.9 | 3.0 | 0.1 | |
Non-current assets: | ||||
Property, plant and equipment, net | 0.0 | 0.0 | 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 | 407.8 | |
Other assets | 0.0 | 0.0 | ||
Deferred tax assets | 0.0 | 0.0 | 0.0 | |
Retirement benefit asset | 0.0 | 0.0 | 0.0 | |
Total assets | 407.9 | 403.0 | 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 | 7.2 | |
Deferred revenue | 0.0 | 0.0 | 0.0 | |
Income taxes | (0.2) | 0.0 | ||
Total current liabilities | 6.4 | 1.5 | 6.5 | |
Non-current liabilities: | ||||
Long-term debt | 395.4 | 395.2 | 394.5 | |
Intra-entity payables, net | 0.0 | 0.0 | ||
Other liabilities | 0.0 | 0.0 | ||
Deferred revenue | 0.0 | 0.0 | ||
Deferred tax liabilities | 0.0 | 0.0 | ||
Total liabilities | 401.8 | 396.7 | 401.0 | |
Shareholders’ equity: | ||||
Total shareholders’ equity | 6.1 | 6.3 | 6.9 | |
Total liabilities, redeemable convertible preferred shares and shareholders’ equity | 407.9 | 403.0 | 407.9 | |
Series A Redeemable Convertible Preferred Stock | ||||
Non-current liabilities: | ||||
Series A redeemable convertible preferred shares | 614.0 | 613.6 | 612.3 | |
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 | 614.0 | 613.6 | 612.3 | |
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 |
Condensed consolidating financial information - Condensed consolidated statement of cash flows (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
May 05, 2018 |
Apr. 29, 2017 |
|
Cash flows from operating activities | ||
Net cash provided by (used in) operating activities | $ 27.9 | $ 56.8 |
Investing activities | ||
Purchase of property, plant and equipment | (26.1) | (56.2) |
Investment in subsidiaries | 0.0 | |
Purchase of available-for-sale securities | (0.4) | (0.7) |
Proceeds from available-for-sale securities | 1.1 | 0.3 |
Net cash used in investing activities | (25.4) | (56.6) |
Financing activities | ||
Dividends paid on common shares | (18.8) | (17.8) |
Dividends paid on redeemable convertible preferred shares | (7.8) | (11.3) |
Intra-entity dividends paid | 0.0 | |
Repurchase of common shares | (60.0) | 0.0 |
Proceeds from long-term debt | 666.5 | |
Proceeds from revolving credit facility | 40.0 | 128.0 |
Repayments of revolving credit facility | (121.0) | |
Repayments of bank overdrafts | (13.9) | 31.2 |
Other financing activities | (2.1) | (1.0) |
Intra-entity activity, net | 0.0 | 0.0 |
Net cash (used in) provided by financing activities | (69.3) | 3.6 |
Cash and cash equivalents at beginning of period | 225.1 | 98.7 |
Decrease in cash and cash equivalents | (66.8) | 3.8 |
Effect of exchange rate changes on cash and cash equivalents | (4.4) | (2.8) |
Cash and cash equivalents at end of period | 153.9 | 99.7 |
Consolidation, Eliminations | ||
Cash flows from operating activities | ||
Net cash provided by (used in) 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 long-term debt | 0.0 | |
Proceeds from revolving credit facility | 0.0 | 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) provided by financing activities | 63.6 | 0.0 |
Cash and cash equivalents at beginning of period | 0.0 | 0.0 |
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 end of period | 0.0 | 0.0 |
Guarantor Subsidiaries | Reportable Legal Entities | ||
Cash flows from operating activities | ||
Net cash provided by (used in) operating activities | (68.0) | (20.9) |
Investing activities | ||
Purchase of property, plant and equipment | (25.9) | (56.2) |
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 | (25.9) | (56.2) |
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 long-term debt | 0.0 | |
Proceeds from revolving credit facility | 40.0 | 128.0 |
Repayments of revolving credit facility | (121.0) | |
Repayments of bank overdrafts | (13.9) | 31.2 |
Other financing activities | 0.0 | 0.0 |
Intra-entity activity, net | 30.8 | 48.9 |
Net cash (used in) provided by financing activities | 50.2 | 82.6 |
Cash and cash equivalents at beginning of period | 150.5 | 70.3 |
Decrease in cash and cash equivalents | (43.7) | 5.5 |
Effect of exchange rate changes on cash and cash equivalents | (4.3) | (2.9) |
Cash and cash equivalents at end of period | 102.5 | 72.9 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
Cash flows from operating activities | ||
Net cash provided by (used in) operating activities | 93.4 | 72.8 |
Investing activities | ||
Purchase of property, plant and equipment | (0.2) | |
Purchase of available-for-sale securities | (0.4) | (0.7) |
Proceeds from available-for-sale securities | 1.1 | 0.3 |
Net cash used in investing activities | 0.5 | (0.4) |
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 long-term debt | 666.5 | |
Proceeds from revolving credit facility | 0.0 | 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 | (53.0) | (73.4) |
Net cash (used in) provided by financing activities | (116.6) | (73.4) |
Cash and cash equivalents at beginning of period | 72.8 | 26.6 |
Decrease in cash and cash equivalents | (22.7) | (1.0) |
Effect of exchange rate changes on cash and cash equivalents | (0.1) | 0.1 |
Cash and cash equivalents at end of period | 50.0 | 25.7 |
Signet Jewelers Limited | Reportable Legal Entities | ||
Cash flows from operating activities | ||
Net cash provided by (used in) operating activities | 61.2 | |
Investing activities | ||
Purchase of property, plant and equipment | 0.0 | 0.0 |
Investment in subsidiaries | 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 | (18.8) | (17.8) |
Dividends paid on redeemable convertible preferred shares | (7.8) | (11.3) |
Intra-entity dividends paid | 0.0 | |
Repurchase of common shares | (60.0) | |
Proceeds from long-term debt | 0.0 | |
Proceeds from revolving credit facility | 0.0 | 0.0 |
Repayments of bank overdrafts | 0.0 | |
Other financing activities | (2.1) | (1.0) |
Intra-entity activity, net | 27.1 | 29.4 |
Net cash (used in) provided by financing activities | (61.6) | (0.7) |
Cash and cash equivalents at beginning of period | 1.7 | 1.7 |
Decrease in cash and cash equivalents | (0.4) | (0.7) |
Effect of exchange rate changes on cash and cash equivalents | 0.0 | 0.0 |
Cash and cash equivalents at end of period | 1.3 | 1.0 |
Signet UK Finance plc | Reportable Legal Entities | ||
Cash flows from operating activities | ||
Net cash provided by (used in) operating activities | 4.9 | 4.9 |
Investing activities | ||
Purchase of property, plant and equipment | 0.0 | 0.0 |
Investment in subsidiaries | 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 long-term debt | 0.0 | |
Proceeds from revolving credit facility | 0.0 | 0.0 |
Repayments of revolving credit facility | 0.0 | |
Repayments of bank overdrafts | 0.0 | 0.0 |
Other financing activities | 0.0 | 0.0 |
Intra-entity activity, net | (4.9) | (4.9) |
Net cash (used in) provided by financing activities | (4.9) | (4.9) |
Cash and cash equivalents at beginning of period | 0.1 | 0.1 |
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 end of period | 0.1 | 0.1 |
Term Loan | ||
Financing activities | ||
Repayments of debt | (6.7) | (4.5) |
Term Loan | Consolidation, Eliminations | ||
Financing activities | ||
Repayments of debt | 0.0 | 0.0 |
Term Loan | Guarantor Subsidiaries | Reportable Legal Entities | ||
Financing activities | ||
Repayments of debt | (6.7) | (4.5) |
Term Loan | Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
Financing activities | ||
Repayments of debt | 0.0 | |
Term Loan | Signet Jewelers Limited | Reportable Legal Entities | ||
Financing activities | ||
Repayments of debt | 0.0 | 0.0 |
Term Loan | Signet UK Finance plc | Reportable Legal Entities | ||
Financing activities | ||
Repayments of debt | 0.0 | 0.0 |
Securitization facility | ||
Financing activities | ||
Repayments of debt | $ 0.0 | (666.5) |
Securitization facility | Consolidation, Eliminations | ||
Financing activities | ||
Repayments of debt | 0.0 | |
Securitization facility | Guarantor Subsidiaries | Reportable Legal Entities | ||
Financing activities | ||
Repayments of debt | 0.0 | |
Securitization facility | Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
Financing activities | ||
Repayments of debt | (666.5) | |
Securitization facility | Signet Jewelers Limited | Reportable Legal Entities | ||
Financing activities | ||
Repayments of debt | 0.0 | |
Securitization facility | Signet UK Finance plc | Reportable Legal Entities | ||
Financing activities | ||
Repayments of debt | $ 0.0 |
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