XML 34 R14.htm IDEA: XBRL DOCUMENT v3.20.1
Restructuring plans
12 Months Ended
Feb. 01, 2020
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 the OmniChannel jewelry category leader. The Plan was originally expected to result in pre-tax charges in the range of $200 million - $220 million over the duration of the plan of which $105 million - $115 million are expected to be cash charges. The Company is currently evaluating its initiatives under the Plan and is unable to estimate its future costs in light of the coronavirus outbreak (“COVID-19”) as further described in Note 29.
During Fiscal 2020, restructuring charges of $79.1 million were recognized, primarily related to store closure costs, severance costs, and professional fees for legal and consulting services. Plan liabilities of $10.7 million were recorded within accrued expenses and other current liabilities and Plan liabilities of $1.7 million were recorded within other liabilities in the consolidated balance sheet as of February 1, 2020. Plan liabilities primarily represent store closure liabilities and consulting services.
Restructuring charges and other Plan related costs are classified in the consolidated statements of operations as follows:
(in millions)
Statement of operations location
 
Fiscal 2020
 
Fiscal 2019
Inventory charges(1)
Restructuring charges - cost of sales
 
$
9.2

 
$
62.2

Other Plan related expenses(2)
Restructuring charges
 
69.9

 
63.7

Total Signet Path to Brilliance Plan expenses
 
 
$
79.1

 
$
125.9

(1) 
Inventory charges represent non-cash charges. See Note 15 for additional information related to inventory and inventory reserves.
(2) 
Fiscal 2020 and Fiscal 2019 other Plan related expenses included $16.7 million and $22.7 million of non-cash charges, respectively.

The composition of restructuring charges the Company incurred during Fiscal 2020 and Fiscal 2019, as well as the cumulative amount incurred through February 1, 2020, were as follows:
(in millions)
 
Fiscal 2020
 
Fiscal 2019
 
Cumulative amount
Inventory charges
 
$
9.2

 
$
62.2

 
$
71.4

Termination benefits
 
16.1

 
9.7

 
25.8

Store closure and other costs
 
53.8

 
54.0

 
107.8

Total Signet Path to Brilliance Plan expenses
 
$
79.1

 
$
125.9

 
$
205.0



The following table summarizes the activity related to the Plan liabilities for Fiscal 2020 and Fiscal 2019:
(in millions)
 
Termination benefits
 
Store closure and other costs
 
Consolidated
Balance at February 3, 2018
 
$

 
$

 
$

Payments and other adjustments
 
(9.7
)
 
(103.6
)
 
(113.3
)
Charged to expense
 
9.7

 
116.2

 
125.9

Balance at February 2, 2019
 

 
12.6

 
12.6

Payments and other adjustments
 
(14.1
)
 
(65.2
)
 
(79.3
)
Charged to expense
 
16.1

 
63.0

 
79.1

Balance at February 1, 2020
 
$
2.0

 
$
10.4

 
$
12.4