XML 62 R48.htm IDEA: XBRL DOCUMENT v3.19.1
Accounts Receivable, Net (Tables)
 12 Months Ended
Feb. 02, 2019
Receivables [Abstract]  
Accounts Receivable by Portfolio Segment, Net
(in millions)
February 2, 2019
 
February 3, 2018
Accounts receivable by portfolio segment, net:
 
 
 
Legacy Sterling Jewelers customer in-house finance receivables
$
—

 
$
649.4

Legacy Zale customer in-house finance receivables
—

 
33.5

North America customer in-house finance receivables
$
—

 
$
682.9

Other accounts receivable
19.5

 
9.6

Total accounts receivable, net
$
19.5

 
$
692.5

 
 
 
 
Accounts receivable, held for sale
$
4.2

 
$
—
Summary of Allowance for Credit Losses
The activity in the allowance for credit losses on Sterling Jewelers customer in-house finance receivables is shown below:
(in millions)
Fiscal 2019
 
Fiscal 2018
 
Fiscal 2017
Beginning balance:
$
(113.5
)
 
$
(138.7
)
 
$
(130.0
)
Charge-offs, net
56.3

 
221.2

 
203.4

Recoveries
4.2

 
34.3

 
35.1

Provision
(54.6
)
 
(251.0
)
 
(247.2
)
Reversal of allowance on receivables sold(1)
107.6

 
20.7

 
—

Ending balance
$
—

 
$
(113.5
)
 
$
(138.7
)
Ending receivable balance evaluated for impairment
—

 
762.9

 
1,952.0

Sterling Jewelers customer in-house finance receivables, net
$
—

 
$
649.4

 
$
1,813.3


(1) 
Amounts reflected for Fiscal 2019 and Fiscal 2018 represent activity for the periods prior to the reclassification of the in-house finance receivables portfolio to held for sale during the first quarter of Fiscal 2019 and the period prior to the reclassification of the prime receivables portfolio to held for sale in October 2017, respectively, when the allowances were reversed.
Credit Quality Indicator and Age Analysis of Past Due 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:
   
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
%
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 January 28, 2017 are shown below under the recency basis:
   
 
January 28, 2017
(in millions)
 
Gross
 
Valuation
allowance
Performing (accrual status):
 
 
 
 
Current, aged 0 – 30 days
 
$
1,538.2

 
$
(47.2
)
Past due, aged 31 – 60 days
 
282.0

 
(9.0
)
Past due, aged 61 – 90 days
 
51.6

 
(2.3
)
Non Performing (nonaccrual status):
 
 
 
 
Past due, aged more than 90 days
 
80.2

 
(80.2
)
 
 
$
1,952.0

 
$
(138.7
)
 
 
 
 
 
Valuation allowance as a % of ending receivable balance
 
 
 
7.1
%