Signet operates a defined benefit pension plan in the UK (the “UK Plan”) which ceased to admit new employees effective April 2004. The UK Plan provides benefits to participating eligible employees. Beginning in Fiscal 2014, a change to the benefit structure was implemented and members’ benefits that accumulate after that date are now based upon career average salaries, whereas previously, all benefits were based on salaries at retirement. In September 2017, the Company approved an amendment to freeze benefit accruals under the UK Plan in an effort to reduce anticipated future pension expense. As a result of this amendment, the Company froze the pension plan for all participants with an effective date of October 2019 as elected by the plan participants. All future benefit accruals under the plan have thus ceased as of this date. The amendment to the plan was accounted for in accordance with FASB Accounting Standards Codification (“ASC”) Topic 715, “Compensation - Retirement Benefits.”

The net periodic pension cost of the UK Plan is measured on an actuarial basis using the projected unit credit method and several actuarial assumptions, the most significant of which are the discount rate and the expected long-term rate of return on plan assets. Other material assumptions include rates of participant mortality, the expected long-term rate of compensation and pension increases, and rates of employee attrition. Gains and losses occur when actual experience differs from actuarial assumptions. If such gains or losses exceed 10% of the greater of plan assets or plan liabilities, Signet amortizes those gains or losses over the average remaining service period of the employees. The service cost component of net periodic pension cost is charged to selling, general and administrative expenses while non-service, interest and other costs components are charged to other non-operating income, net, in the consolidated statements of operations.

The UK Plan is a funded plan with assets held in a separate trustee administered fund, which is independently managed. Signet used February 1, 2020 and February 2, 2019 measurement dates in determining the UK Plan’s benefit obligation and fair value of plan assets.



(in millions)	Fiscal 2020			Fiscal 2019
Change in UK Plan assets:
Fair value at beginning of year	$	245.5		$	272.2
Actual return on UK Plan assets	36.8			2.1
Employer contributions	5.3			4.4
Members’ contributions	0.2			0.3
Benefits paid	(9.4		)	(13.5		)
Foreign currency translation	3.5			(20.0		)
Fair value at end of year	$	281.9		$	245.5



(in millions)	Fiscal 2020			Fiscal 2019
Change in benefit obligation:
Benefit obligation at beginning of year	$	214.9		$	232.4
Service cost	0.7			0.9
Interest cost	5.5			5.8
Members’ contributions	0.2			0.3
Actuarial (gain) loss	29.2			(2.1		)
Benefits paid	(9.4		)	(13.5		)
Plan settlements	—			8.3
Foreign currency translation	2.3			(17.2		)
Benefit obligation at end of year	$	243.4		$	214.9
Funded status at end of year	$	38.5		$	30.6



(in millions)	Fiscal 2020			Fiscal 2019			Fiscal 2018
Components of net periodic benefit (cost) income:
Service cost	$	(0.7	)	$	(0.9	)	$	(2.1	)
Interest cost	(5.5		)	(5.8		)	(6.1		)
Expected return on UK Plan assets	7.8			8.4			9.4
Amortization of unrecognized actuarial losses	(1.2		)	(0.9		)	(2.8		)
Amortization of unrecognized net prior service credits	—			—			1.4
Net curtailment gain and settlement loss	—			—			3.7
Total net periodic benefit (cost) income	$	0.4		$	0.8		$	3.5
Other changes in assets and benefit obligations recognized in OCI	1.7			(11.3		)	(2.9		)
Total recognized in net periodic pension benefit (cost) and OCI	$	2.1		$	(10.5	)	$	0.6



	February 1, 2020		February 2, 2019
Assumptions used to determine benefit obligations (at the end of the year):
Discount rate	1.70	%	2.70	%
Salary increases	N/A		1.50	%
Assumptions used to determine net periodic pension costs (at the start of the year):
Discount rate	2.70	%	2.60	%
Expected return on UK Plan assets	3.50	%	3.60	%
Salary increases	1.50	%	2.50	%

The UK Plan’s investment strategy is guided by an objective of achieving a return on the investments, which is consistent with the long-term return assumptions and funding policy, to ensure the UK Plan obligations are met. The investment policy is to allocate funds to a diverse portfolio of investments, including UK and global equities, diversified growth funds, corporate bonds, fixed income investments and commercial property. The commercial property investment is through a Pooled Pensions Property Fund that provides a diversified portfolio of property assets. As of February 1, 2020, the long-term target allocation for the UK Plan’s assets was bonds 68%, diversified growth funds 27%, equities 5% and property 0%. This allocation is consistent with the long-term target allocation of investments underlying the UK Plan’s funding strategy.



	Fair value measurements as of February 1, 2020								Fair value measurements as of February 2, 2019
(in millions)	Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Asset category:
Diversified equity securities	$	15.1	$	—	$	15.1	$	—	$	19.4	$	—	$	19.4	$	—
Diversified growth funds	49.8		49.8		—		—		66.4		43.6		22.8		—
Fixed income – government bonds	139.7		139.7		—		—		80.6		—		80.6		—
Fixed income – corporate bonds	48.8		—		48.8		—		46.2		—		46.2		—
Cash	4.3		4.3		—		—		1.9		1.9		—		—
Investments measured at NAV⁽¹⁾:
Diversified growth funds	17.8								17.4
Property	6.4								13.6
Total	$	281.9	$	193.8	$	63.9	$	—	$	245.5	$	45.5	$	169.0	$	—

Investments in diversified equity securities, diversified growth funds and fixed income securities are in pooled funds. Investments are valued based on unadjusted quoted prices for each fund in active markets, where possible and, therefore, classified in Level 1 of the fair value hierarchy. If unadjusted quoted prices for identical assets are unavailable, investments are valued by the administrators of the funds.

The valuation is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of units outstanding. The unit price is based on underlying investments which are generally either traded in an active market or are valued based on observable inputs such as market interest rates and quoted prices for similar securities and, therefore, classified in Level 2 of the fair value hierarchy.

Certain fixed income investments are in an interest-based return through investments in various asset classes including: asset backed securities, mortgage backed securities, collateralized debt and loan obligations, and loan investments. The same investments in are subject to certain restrictions whereby funds may only be divested quarterly. The investment in property is in pooled funds valued by the administrators of the fund. The investment in the property fund is subject to certain restrictions on withdrawals that could delay the receipt of funds by up to 16 months. The valuation of these assets are based on the NAV of underlying assets, which are independently valued on a monthly basis.

Signet contributed $5.3 million to the UK Plan in Fiscal 2020 and expects to contribute a minimum of $4.5 million to the UK Plan in Fiscal 2021. The level of contributions is in accordance with an agreed upon deficit recovery plan and based on the results of the actuarial valuation as of April 5, 2017.

In June 2004, Signet introduced a defined contribution plan which replaced the UK Plan for new UK employees. The contributions to this plan in Fiscal 2020 were $2.4 million (Fiscal 2019: $2.3 million; Fiscal 2018: $2.6 million).

In the US, Signet operates a defined contribution 401(k) retirement savings plan for all eligible employees who meet minimum age and service requirements. The assets of this plan are held in a separate trust and Signet matches 50% of up to 6% of employee elective salary deferrals, subject to statutory limitations. Signet’s contributions to this plan in Fiscal 2020 were $9.1 million (Fiscal 2019: $10.4 million; Fiscal 2018: $10.0 million). The Company has also established two unfunded, non-qualified deferred compensation plans, one of which permits certain management and highly compensated employees to elect annually to defer all or a portion of their compensation and earn interest on the deferred amounts (“DCP”) and the other of which is frozen as to new participants and new deferrals. Beginning in April 2011, the DCP provided for a matching contribution based on each participant’s annual compensation deferral. The plan also permits employer contributions on a discretionary basis. The cost recognized in connection with the DCP in Fiscal 2020 was $3.6 million (Fiscal 2019: $3.6 million; Fiscal 2018: $3.8 million).

The fair value of the assets in the two unfunded, non-qualified deferred compensation plans at February 1, 2020 and February 2, 2019 are required to be classified and disclosed. Although these plans are not required to be funded by the Company, the Company has elected to fund the plans by investing in trust-owned life insurance policies and money market funds. The value and classification of these assets are as follows:



	Fair value measurements as of February 1, 2020						Fair value measurements as of February 2, 2019
(in millions)	Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)
Assets:
Corporate-owned life insurance plans	$	6.5	$	—	$	6.5	$	7.0	$	—	$	7.0
Money market funds	21.0		21.0		—		26.9		26.9		—
Total assets	$	27.5	$	21.0	$	6.5	$	33.9	$	26.9	$	7.0