Restructuring Plans

12 Months Ended

Feb. 02, 2019

Restructuring and Related Activities [Abstract]

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”) intended to reposition the Company to be the OmniChannel jewelry category leader. The Plan is expected to result in pre-tax charges in the range of $200 million - $220 million over the duration of the three-year plan of which $105 million - $115 million are expected to be cash charges.

During Fiscal 2019, restructuring charges of $125.9 million were recognized, primarily related to inventory charges associated with discontinued brands and collections, professional fees for legal and consulting services, severance, early lease termination costs and impairment of information technology assets related to the Plan. Plan liabilities of $12.6 million were recorded within accrued expenses and other liabilities in the consolidated balance sheets as of February 2, 2019. Plan liabilities primarily represent asset disposal liabilities associated with the early termination of leases.

Restructuring charges and other Plan related costs are classified in the consolidated income statements as follows:



(in millions)	Income statement location	Fiscal 2019
Inventory charges⁽¹⁾	Restructuring charges - cost of sales	$	62.2
Other Plan related expenses⁽²⁾	Restructuring charges	63.7
Total Signet Path to Brilliance Plan expenses		$	125.9


⁽¹⁾	Inventory charges represent non-cash charges. See Note 15 for additional information related to inventory and inventory reserves.


⁽²⁾	Other Plan related expenses include $22.7 million of non-cash charges.

The following table summarizes the activity related to the Plan liabilities for Fiscal 2019:



(in millions)	Consolidated
Balance at February 3, 2018	$	—
Payments and other adjustments	(113.3		)
Charged to expense	125.9
Balance at February 2, 2019	$	12.6